Report to Council of the Community Services Committee 6 October 1997

22. 10. 97

COMMUNITY SERVICES COMMITTEE

6 OCTOBER 1997

A meeting of the Community Services Committee
was held on Monday 6 October 1997 at 4.00 pm

PRESENT:	Councillor Garry Moore (Chairperson), The Mayor, Councillors Carole Anderton, Graham Condon, David Cox, Anna Crighton, Ishwar Ganda, Pat Harrow and Lesley Keast.

APOLOGIES:	Apologies for absence were received and accepted from the Mayor and Councillors Carole Evans and Barbara Stewart.
	Councillor Graham Condon retired at 5.40 pm and was absent for clauses 3-6 and 9, 11, 14 and part of clause 16.
	Councillor David Cox retired at 5.15 pm and was absent for part of clause 2, clauses 3-6, and clauses 9, 11, 14 and 16.
	Councillor Anna Crighton retired at 7.05 pm and was absent for clauses 6, 9 and 11.

The Committee reports that:

PART A - MATTERS REQUIRING A COUNCIL DECISION

DRUG AND ALCOHOL RESIDENTIAL SERVICES FOR YOUNG PEOPLE

RR 6291

The Committee considered a report from the Community Advisor Youth about recent developments involving the provision of new drug and alcohol services for young people in Christchurch.

The report had been prepared for the Canterbury Alcohol and Drug Advisory Group (CADAG) as a result of concerns expressed by that group about the importance of ensuring the transitional health authority was well informed about the issues surrounding the development of new services.

A copy of the report was provided to the Committee for their information and a copy of this is tabled.

Recommendation:

That the information be received.
The report be referred to the Working Party established by Council on 27 August 1997 to oversee disbursement of the funding provided for drug education and the brief of the Working Party be expanded to include alcohol abuse education as well as drug education.

2. HOUSING PARTNERSHIP AT BURWOOD HOSPITAL RR 5945

The purpose of this report is to outline in conceptual form, a possible partnership with the Canterbury Crown Health Enterprise (CHE) in the form of an integrated EPH/public rental housing development on land owned by the Canterbury CHE adjacent to the Burwood Hospital.

Several of the Council's Policy Statements of 18 December 1996 could apply, as follows:

'The provision of affordable housing which is sustainable in perpetuity, and which is not at a cost to ratepayers.'

'The provision of additional accommodation for single men and women with one child.'

'To facilitate the provision of additional 'home' care for the semi dependent elderly in Council housing so as to extend their independent living.'

BACKGROUND

Councillor Graham Condon has introduced the opportunity of the Council joining with the Canterbury CHE to provide affordable housing on the Canterbury CHE's land at Burwood. It is envisaged that the housing will be of an integrated type and will additionally meet the needs of those with disabilities and those who have families requiring treatment at the Burwood Hospital.

In 1983 the health authorities leased to the Paraplegic Foundation of New Zealand (PFNZ), land fronting Mairehau Road for the purpose of the Paraplegic Foundation building four residential units to meet the needs of those with disabilities and requiring wheelchair mobility and additionally who may need the services of the hospital on an on-going basis.

Whilst the four units built by the PFNZ have met those needs over the last 14 years, the Foundation has changed its focus and now consider that the units owned by them on land leased from the CHE at a peppercorn rental are no longer part of their core activities. The Foundation initially approached the CHE to discuss the possible disposal of their property. This has led to discussions between PFNZ and the Council for the assignment of the lease of the land to the Council along with the sale of the Milner Lodge units to the Council.

From the CHE's perspective, they would be more than comfortable, with some variations to the lease, to agree to an assignment to the Council.

The CHE also wishes to extend the service it currently provides from its own four separate 'self-care units' which are used by the families of spinal patients at the hospital immediately following a trauma injury and additionally during the pre-discharge period.

The CHE would also like to see the facilities at Burwood Hospital which include physiotherapy, kitchen/dining facilities, gymnasium, heated swimming pool, therapy workshop etc to be more broadly used by the community and housing tenants on a 'pay for services' basis.

THE CONCEPT

The principle of the partnership is in the nett present value (NPV) of the (leased) CHE land being more or less evenly split with the CHE receiving from the Council at no cost, two or three self-care units valued at $235,000 total in return for the Council being provided with the leased land at a peppercorn rental for a period of between 50 and 83 years.

In broad terms the concept is as follows:

The Council to purchase from the Paraplegic Foundation of New Zealand at a valuation to be agreed, the four 'Milner Lodge' disabled units.
The Milner Lodge units to be managed by the Housing Section of the Council as EPH/public rental units for people with disabilities under the tenancy agreement and rental structure currently pertaining to Council units.
The lease of the land to be assigned to the Council, for the balance between 50 and 83 years, at a peppercorn rental, subject to some variations to be agreed between the parties.
The Council to build 24 EPH/public rental units on the Mairehau Road frontage with consideration being given to some units being designed for semi dependent elderly living. These units will be managed by the Christchurch City Council Housing Section.

This development could be staged as follows:

Stage 1 Construct 14 units including double glazing, washing machine, dryer, two electric heaters, light fittings, carpet, vinyl, blinds, drapes, terrace and entrance paving, driveways complete with associated parking areas and security lighting, and an allowance for contingencies. (6 two-storey two bedroom public rental units, 6 single one-bedroom EPH units; 2 single-storey two-bedroom EPH units; and 14 garages with two attached.	$1,420,850
Design and Supervision Fees (Charged at hourly rates say 10%)	$142,150
	$1,563,000
Stage 2 Construct 10 units exactly as above. (6 two-storey two-bedroom public rental units, 2 single-storey two-bedroom EPH units; 2 single-storey one-bedroom EPH units; and 10 garages with two attached.	$1,168,750
Design and Supervision Fees (Charged at hourly rates say 10%)	$116,250
	$1,285,000

In return for the peppercorn rental of the site (approximately 10,500m² including the Milner Lodge area) the Council will build and provide to the CHE at no cost and on hospital land, two or three 2-bedroom self-care units for the use of and management by the CHE.

Financial details pertaining to valuations etc are in the public excluded section of this report.

LEGAL ISSUES

The Paraplegic Foundation/CHE lease is currently not registered but is protected by a caveat on the title.

To get the lease registered and remove the caveat, there is a need to amend the document with the agreement of the three interested parties to more accurately reflect the area to be leased. This would require the area to be defined by survey and a plan lodged for approval - this would constitute a subdivision.

The lease has a 99 year term with no right of renewal and has been drawn up in accordance with the Public Body Leases Act.

There will be a need to vary the lease to expand the tenant mix proposed.

The variation to the lease would need to include:

the Council having first option to purchase the land should it be disposed of at some time in the future.
the built assets being purchased from the Council by the CHE at valuation on termination of the lease.

Buddle Findlay comment further as follows:

'Council Powers

The Council's powers to undertake housing development are contained in Par XXXII LGA. The specific powers relevant to this proposal are:

Section 550 - Where the Council has the power under the Public Works Act to 'take or otherwise acquire' any land for housing purposes (Section 550(2)) whether or not there are buildings on the land (Section (3)).
Section 552 which contains a power for the Council to 'convert any buildings into houses' (Section 552(1)(c)), and may perhaps be relevant in relation to the Milner Lodge units. In this context I think 'houses' is to be interpreted liberally.
Section 553 which contains powers to acquire land and erect residential flats (Section 553(2)(a)) and to lease flats at a rental, for a term, and such other provisions 'as the Council thinks fit' (Section 553(2)(h)).
Part of the proposal is the construction of two further residential units for use in association with the spinal unit. The proposal speaks of the Council constructing those units, although equally the Council could perhaps make a grant to the CHE for that purpose. The consideration for this payment or expenditure flows from the CHE's agreement to vary the terms of the lease. There may perhaps not be, in a strictly valuation sense, full value of exchange in that regard. Even if there is not however Council has broad power to promote community welfare under Section 598 and to 'promote or assist in promoting co-operation and co-ordination of welfare activities in the district' (Section 598(1)). In pursuit of that broad objective Council may provide land, buildings and equip buildings (Section 598(2)(a)), which meets the position if the Council erects the units. Alternatively if there is not full value of exchange and the CHE erects the units then the funding may be treated as a grant under Section 598(4).

Finally under this heading I note that the report talks of a 'joint venture'. Joint venture arrangements are authorised under Section 247C LGA, but I am not sure that what is here proposed is in strict legal terms a joint venture. Rather it is an arrangement between parties who have related goals, each of whom can better achieve their respective goals by a co-operative approach. (This is to be contrasted with the position of a true joint venture where the joint venturers pool property and other assets to achieve a common goal.)

Lease

The draft report fairly sets out the basic terms of the lease (ie term, rental etc) and identifies those specific provisions in the lease which will need amendment in the circumstances of an assignment of the lease to the Council. There are several drafting and other issues relating to other provisions of the lease which I also think are in need of some attention. None of those issues are insoluble on a renegotiation of the lease terms with the CHE. Since the matter is before the Council for broad consideration in principle I do not intend in this letter to detail those matters.

Assuming therefore an approval in principle, it would be my recommendation that the very first step must be to ensure that a registered lease can in fact be obtained, by whatever steps, and the CHE has fully observed all of its statutory obligations in that regard.'

PLANNING ISSUES

Senior Planner, Ken Gimblett, comments on planning issues as follows:

'Proposed City Plan

The land surrounding Burwood Hospital is proposed to be zoned Special Purpose (Hospital) in recognition of the primary use of the land. This zone essentially allows for hospital or health facility activities to be permitted, subject to controls over building bulk, coverage and height, and for all other activities to be subject to the normal Living 1 Zone standards. The Living 1 Zone is that proposed for the majority of the residential area of the city and provides for low density residential accommodation. In terms of the proposal to utilise part of the hospital land for a joint venture housing scheme, this is in accord with the proposed zoning in so far as the activity is concerned, but buildings would be subject to controls over their size and location as per the Living 1 Zone standards. Alternatively resource consent would have to be sought to depart from these standards.

Transitional District Plan

The TDP designates the land for Hospital Purposes with an underlying zone of Rural C. The situation under the TDP is somewhat more complex than under the Proposed Plan given the designated purpose overlying the rural zoning. It would be difficult to argue that the development of residential accommodation was in accordance with the designation unless that accommodation was closely related to the activities of the hospital. If residential activity (or any other activity) was not in accordance with the designated purpose then the underlying zoning comes into play. Unfortunately the rural zoning in this instance does not provide for residential accommodation unrelated to rural use of the land. In other words, the TDP contemplates hospital related activities primarily on the land, and if that does not occur, then activities strictly related to rural production. Neither of these may reflect the current proposals for affordable housing and therefore I suspect some form of resource consent would be required.

Transition Period

Because the transition from the TDP to the Proposed Plan is likely to continue for a further year or so, in the interim all developments must be considered against the provisions of both plans. I anticipate therefore that resource consent would be needed for the activity, and depending upon building design, etc possibly for these matters also.'

LOCATIONAL ISSUES:

The nearest Council EPH housing complex to the Burwood Hospital site is at Concord Place, approximately 1 km due west.

The Housing Welfare Officer for Concord Place and the Activities Co-ordinator, who has also worked in this area, advise that the area is generally considered to be quite isolated from essential services, especially shopping facilities.

Some tenants of Concord Place walk to Parklands for the supermarket shopping and travel home by taxi. The bus service also is not particularly accessible.

Until there is a larger residential base, shopping and other facilities will not be developed and then, of course, people may be reluctant to live or shift to an area that is not well served.

For very frail or dependant tenants, accessibility of services would not be a problem, as they would take services from Burwood Hospital and hopefully the clean, open nature of the environment would be considered therapeutic. However, younger people with dependant, possibly sick children, and caregivers living in with an older person, would expect to have greater access to services, or they would need to have their own reliable transport.

GENERAL

From a city wide strategic development perspective, there is a need to:

confirm a need or otherwise for the type of accommodation envisaged given the perceived remoteness from public services/shopping.
confirm or otherwise the appropriateness of two storey accommodation in this locality, particularly if the Council is wishing to cater for disabilities.
confirm or otherwise the priority for this expenditure weighed against other pending development options including the Hornby project, and inner city housing at Cecil Place.
consider the option of purchasing the Milner Lodge units on a stand alone basis rather than in conjunction with the development proposed.

Recommendation:

That the concept of a housing partnership with the Canterbury CHE be approved and developed further and that it be reported back for consideration with other construction projects proposed for funding from the Housing Development Fund.

CONVENTION AND ENTERTAINMENT FACILITIES - OVERVIEW OF OPERATIONS FOR THE YEAR TO 30 JUNE 1997

RR 6226

The Committee considered the report from NCC (New Zealand) Ltd for the year ended 30 June 1997 and the operation of the facilities managed by the company.

The report highlighted features of the inaugural operating year and provided statistical information and details of the actual financial results against budget for the period.

Mr Mike Kelly, CEO of NCC (New Zealand) Ltd, attended the meeting together with key staff members and spoke to the report and answered questions from members.

Recommendation:

That the information be received and the staff of NCC (New Zealand) Ltd be congratulated on their performance during the previous financial year.
That the Council write to the New Zealand Convention Association (NZCA) to advise of its intention to cancel the membership subscription in respect to NCC (New Zealand) Ltd for 1998 unless it was convinced of the advantage of remaining a member, and that the NZCA be requested to provide details of the benefits that have accrued to Christchurch as a result of membership.

CONVENTION AND ENTERTAINMENT FACILITIES - ANNUAL BUSINESS PLAN FOR 1997/98

RR 6227

The Annual Business Plan for the facilities managed by NCC (New Zealand) Ltd for the 1997/98 financial year was presented to the Committee (copy tabled).

The Plan identified the subsidies to run the facilities at $1.6m which was $0.25m below the previous year's budget and is in line with the sum provided in the 1997/98 Annual Plan.

Members noted the intention to restructure rental fees for the Convention Centre which could reduce some rental category rates by as much as 53% from preliminary project feasibility calculations.

The CEO of NCC (New Zealand) Ltd advised members of the architectural award won by the Convention Centre and it was agreed that arrangements should be made for appropriate publicity for this.

Councillor Anna Crighton expressed her appreciation for the assistance she had received from Mr Kelly in regard to the display of art works in the Convention Centre.

Recommendation:

That the Annual Business Plan of NCC (New Zealand) Ltd for the 1997/98 year be adopted with the substitution of the word 'commercial' by 'visual' on pages 4 and 13 of the report.

5. TURNING POINT 2000 UPDATE RR 6299

The Committee considered a report from the Director of Turning Point 2000 updating members on progress and planning for the celebration of the year 2000.

The report provided details of the membership of the Advisory Groups, the processes being used in evaluation in terms of marketing promotion, funding and sponsorship and the official calendar of events and timeline for the next three year period.

Members noted the decision by Community Trust to allocate funding to local authorities for Year 2000 projects.

Recommendation:

That the information be received.
That the Turning Point 2000 Executive Committee be requested to advise the Council on the disbursement of the $1.8m allocated by Community Trust for the Year 2000 projects for the Christchurch community.

PART B - REPORTS FOR INFORMATION

SUBMISSIONS FROM TIM BARNETT MP ON 1997 DRAFT PLAN

RR 6125

The Committee considered a report from the Principal Policy Analyst on the comprehensive submission made by Mr Tim Barnett MP to the 1997 Draft Plan which sought changes to the Council's strategic and other objectives. The Council meeting on 30 July 1997 had resolved that the suggested changes from Mr Barnett be referred to the relevant Standing Committees for reporting on to the Council.

The Committee considered the submission made in respect to the strategic objective for housing and noted it had already recommended to the Strategy and Resources Committee that the existing strategic objective relating to housing be replaced with the objective identified in Housing Review Report. This recommendation was to be considered for the 1998 Council Plan and if adopted would satisfy the suggestions made by Mr Barnett.

To allow the recommendations by Standing Committee on Mr Barnett's submission to be considered in total, this matter has been reported back to Council via the report of the Strategy and Resources Committee.

7. CHRISTCHURCH CITY COUNCIL YOUTH WORK PROJECT RR 6292

The Community Advisor Youth provided a progress report on the Christchurch City Council's Youth Work Project for the initial six month period.

A small monitoring group has been set up to undertake the monitoring function from the original inter-agency group and convenes monthly team meetings to do this.

A number of items were identified in the report and during the discussion and these will be reported back to a future meeting of the Committee.

Recommendation:

That a Sub-committee consisting of Councillors Carole Anderton, Patrick Harrow and Garry Moore undertake a review of the Youth Work Project, including any recommendation from the Youth Workers, and report back to the Community Services Committee on any changes considered necessary.

ACCESS TO RECREATION/SPORT ACTIVITIES BY PEOPLE WITH DISABILITIES

RR 5929

The Committee considered a report on recent research completed for the KiwiAble programme on opportunities for various people with disabilities to participate in recreation/sport activities.

In February 1997 a report had been prepared by staff from Lincoln University evaluating the current effectiveness of the KiwiAble programme and providing information on barriers to participation as seen by people with disabilities and disability agencies.

It was agreed staff report back to the Committee at a future date on possible solutions to the difficulties identified by agencies working with people with disabilities.

It is intended also that a copy of the report be presented to the Parks and Recreation Committee for their information.

REVIEWING THE EFFECTIVENESS, EFFICIENCY AND ECONOMY OF THE COUNCIL'S OPERATIONS

RR 6121

The report had been referred to the Community Services Committee from the Strategy and Resources Committee meeting of 15 September 1997 in which it requested that all Standing Committees give consideration to how they might best participate in the efficiency and effectiveness reviews. This item had been carried forward from the Committee's Annual Plan Meeting of 19 September 1997 when it had not been possible to consider it because of time constraints.

The Committee decided that Units responsible to the Community Services Committee report on how the Committee could participate in the efficiency reviews currently being undertaken or planned.

10. SOCIAL MONITORING PROGRAMME RR 6255

The Committee considered a report concerning the Social Monitoring Programme following on from the seminar meeting of the Community Services Committee on 29 August 1997.

It had been suggested at that seminar that a small working party be established to work with staff involved in the programme to provide a means for elected member input and a mechanism to allow ready consultation by staff.

The Committee decided that a Sub-committee consisting of Councillors Garry Moore, Ishwar Ganda and Patrick Harrow be established to work with staff involved with the Social Monitoring Programme.

11. COMMUNITY LIAISON FOR KINGSLEY - SUPPLEMENTARY RR 6337

The Committee considered a report relating to the request received from the Children Young Persons and their Families Service for the appointment of two representatives to the Community Liaison Committee for Kingsley.

Regulation 34 of the Children Young Persons and their Families Regulations 1996 allows for two persons to be appointed by the local authority having jurisdiction over the area in which the residence is located. The CYPFS is currently in the process of establishing a Liaison Committee and had sought confirmation of appointees from the Council.

The Committee decided that the Chairman of the Burwood/Pegasus Community Board and either Councillor Carole Evans or Councillor Gail Sheriff be appointed to the Liaison Committee.

12. ITEMS RECEIVED

The Committee received the following reports:

12.1 Early Childhood Education RR 5908

This report by the Senior Policy Analyst provided an update on the development of the Council's policy on early childhood education and reported back on the results of the Council's survey.

12.2 Annual Update on Trust Bank Community House RR 6033

The Annual Update on Trust Bank Community House was presented by the Community Advisor together with copies of the Annual Report and Annual Financial Statements.

12.3 Council Childcare Centre User Survey Results RR 6034

Details of the Annual User Survey at the Council's three childcare centres were received by the Committee. The Minister of Education requires licensed early childhood education services to consult with parents who use those services and the Annual User Survey fulfilled this requirement as well as providing other useful management information.

12.4 Youth Strategy: Progress Report RR 6276

The Committee received a report from the Principal Policy Analyst providing an update on progress with the development of the Youth Strategy and appointment of a Youth Advocate.

PART C - REPORT ON DELEGATED DECISIONS TAKEN BY THE COMMITTEE

13. RESOLUTION TO EXCLUDE THE PUBLIC AND SUPPLEMENTARY REPORTS

The Committee resolved:

That the draft resolution to exclude the public set out on page 37 of the agenda be adopted and that representatives from Canterbury CHE and Te Whare Romata be permitted to remain for the appropriate sections of the meeting, after the public had been excluded because of their knowledge of the proposals.
The supplementary reports in respect to the appointment of representatives of the Council on the Kingsley Community Liaison Committee and the verbal report in respect to the Chairman's attendance at the 'Fathering of the Future' Conference in Sydney be received. The reasons why the reports had not been included in the main agenda and why they could not wait for the next meeting were explained to the Committee.

14. FATHERING OF THE FUTURE CONFERENCE - SYDNEY

The Chairperson reported on his attendance, together with the Children's Advocate, at the above conference held in Sydney early in September. Air fares for the conference had been paid by the Commissioner for Children.

The Committee resolved that other expenses relating to attendance at the conference be reimbursed to Councillor Moore.

CONSIDERED THIS 22ND DAY OF OCTOBER 1997

MAYOR

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