Report to Council of the Strategy Resources Committee 13 October 1997

22. 10. 97

STRATEGY AND RESOURCES COMMITTEE

13 OCTOBER 1997

A meeting of the Strategy and Resources Committee
was held on Monday 13 October 1997 at 4.00 pm

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 Carole Anderton.

APOLOGY:	An apology for absence was received and accepted from Councillor Gordon Freeman.
	Councillor Moore arrived at 4.30 pm, retired at 6.30 pm and was present for clauses 1, 2, 14(a) and 14(b).
	The Mayor retired at 5.30 pm and was present for clause 14(a).
	Councillor O'Rourke retired at 6.00 pm and was present for clauses 1 and 14(a).
	Councillor Howell retired at 6.30 pm and was present for clauses 1, 2, 14(a) and 14(b).
	Councillor Wright retired temporarily at 6.00 pm, returned to the meeting at 7.00 pm, retired again at 7.40 pm and was present for clauses 1, 2 and 14(a).

The Committee reports that:

PART A - MATTERS REQUIRING A COUNCIL DECISION

1. MOZAMBIQUE SISTER CITY RELATIONSHIP RR 6119

Officer responsible	Authors
Director of Policy	The Mayor, Councillor Close & Jonathan Fletcher
Corporate Plan Output: Sister Cities

The purpose of this report is to seek Council's approval for making the next move in formally establishing a sister city link in Mozambique.

INTRODUCTION

The proposal to develop a sister city relationship with Mozambique developed from discussions at a joint meeting of the Sister Cities Committees in 1993 where it was proposed that Christchurch extend its sister city linkages to include a linkage with a community in a least developed country.

This concept was further developed by an informal committee convened by the Mayor, and including Councillor Fahey, Mike Richardson and Jonathan Fletcher which led to a proposal for a Christchurch/Inhambane link being put the Council in 1994. This proposal was endorsed in principle by the Council.

The visit to Mozambique, which was the catalyst for this report, was the result of an invitation to the Mayor from the Governor of Inhambane Province.

Mozambique Country Profile

Mozambique is considered the poorest country in the world. Roughly one-third of urban and two-thirds of rural Mozambicans live in absolute poverty. It is a country that is highly dependent on external assistance, with a debt stock that is 14 times export earnings. The predominantly agricultural economy is now in transition from reliance on central control to market mechanisms.

Income per capita (US$) 80
Population (millions) 17.5
Land area (thous. sq. km) 802
Population growth rate(%) 2.1
Rural population (%) 80
Illiteracy rate (%) 67
Female illiteracy (%) 79
Life expectancy (yrs) 48
Infant mortality (per `000) 162
Source: The World Bank (June 1995)

THE VISIT

During the week of 25 August the Mayor, Councillor Close and Jonathan Fletcher paid a three day visit to Mozambique, the purpose of which was to meet the Governor of Inhambane Province and to assess the feasibility of Christchurch City establishing a sister city link with either Inhambane Province or Inhambane or Maxixe cities. The programme for the visit was organised for us by Save the Children Fund (SCF) New Zealand which is an active supporter of projects within Inhambane Province managed by Save the Children Fund (UK) which has an office in Maputo and a field worker based in Inhambane. SCF (UK) hosted our visit, making all the on-the-ground arrangements and providing us with an interpreter for the duration. They did a very good job and we are most grateful for their thoroughness and support; the visit went without a hitch.

During the visit we:

Met and had discussions separately with the Governor of Inhambane, the Mayor of Inhambane City and the Mayor of Maxixe City;[1]

Visited several schools, both urban and rural, primary and secondary;

Visited and met with the managers of a rural development project and an orphanage/creche both of which had received support from SCF(UK);

Visited two hospitals and a rural clinic/dispensary;

Saw the bulk water supply systems for Inhambane and Maxixe Cities;

Had discussions with SCF (UK), Community Aid Abroad (the Australian arm of Oxfam) and the Council of Churches of Mozambique (CCM).

Rural Housing - Inhambane

AN ASSESSMENT

Mozambique, in 1992, emerged from a long and traumatic period of war and civil unrest that began with the campaign to achieve independence from the Portuguese and continued with a long civil war. It has now made the transition from that period to a period of stable civilian government, a process that could be said to have begun with the United Nations supervised elections in 1994. As far as we could tell within our three day visit, the country is remarkably politically stable; we saw no evidence of military activity (except for the demining operations being undertaken by the United Nations with New Zealand support and participation). Everybody we asked, both Mozambican and expatriate, assessed that the period of war was behind the country and that there was a strong commitment to political democracy and to economic and social development. This assessment was further confirmed by an article in the August "Africa Today" magazine, which, in a special survey of Mozambique, was very `up beat' in its assessment of its political and economic stability and its long term potential.

That said, on the international statistics Mozambique has the lowest gross domestic product per capita in the world (US$80 per annum per person compared with New Zealand's US$15,700) and while these figures may be slightly misleading for a country where most of the population are subsistence farmers with very low cash incomes, we saw ample evidence of the poverty in the country.

We asked everybody we met, including representatives of non-government organisations, the Governor, and the two Mayors, open-ended questions about priorities and needs and got remarkably consistent answers. All saw the three priority areas (in the order given) as:

(i) Education: the civil war has left the country badly short of schools and education facilities particularly in rural areas. It has also left a generation with a very disrupted education. All the schools we visited were acutely short of basic equipment and teaching facilities. It is difficult to convey exactly how bad the situation is, but if the children had not been there, most of the facilities we saw we would not have recognised as schools. We envisage classrooms as having at least desks and chairs, books, posters on the wall and both text books and reference books. None of the schools (including urban secondary schools) had any of these facilities. The best had desks and chairs for a few of its pupils (we estimate fewer than 20%), a permanently affixed blackboard on the front wall, basic text books available for the teacher's use and a class of 40 pupils.

The rural primary schools, on the other hand, typically consisted of classrooms made of coconut palms, with dirt floors on which the children sat knee by knee while a teacher with a piece of chalk and a portable blackboard resting on the floor, tried to teach them. At best each pupil had a pencil and exercise book and class sizes seemed to be of the order of 40 - 60. In the extreme (and we saw several examples) classes were taken outdoors sitting in the shade of a tree.

(ii) Water Supply. Both rural and urban water supply needs are acute. In the case of the urban areas of both Inhambane and Maxixe Cities somewhat old Portuguese-installed systems designed to meet the needs of the small Portuguese colonial enclaves are now being stretched to serve larger urban populations. This results in intermittent supply, poor water pressure and grossly inadequate treatment. In the Maxixe case, for example, the treatment equipment needs to be completely replaced and a supply designed to serve a population of 1,000 is presently serving 9,000. However, the really urgent need is in the rural villages.

The national policy is to have one village stand pipe for every 500 people. The current estimate within Inhambane Province is that on average one stand pipe (or well) has to serve up to 5,000 people. The result is that people have to walk long distances (five to ten kilometres each way is not uncommon) to get water for household use and the supply is uncertain as the demand on the well often exceeds its capacity. Driving through the rural areas it was a common sight to see people (particularly women and girls) walking along carrying either a large pail or a 20 litre plastic jerrycan on their heads.

Both the non-government organisation staff and the Mayors told us that there is a well established programme to provide water supply to villages with the village organisation having to do its part by providing the voluntary labour and by committing itself to maintaining the facility. Less progress than is desirable has been made in this for lack of money (typically a shallow hand dug well and hand pump costs US$500 - US$1,000, while in areas where a mechanically dug bore hole and deep well pump is required the cost rises to US$5,000). Water supply is a high priority both for its social and public health benefit, and, particularly, because of the burden getting water currently places on women. Freeing women from the need to spend literally several hours a day obtaining water is the first step in improving their economic status.

(iii) Health. To describe sickness treatment facilities in Inhambane as inadequate is a gross understatement. In the rural areas people could be up to 40 kilometres away from the nearest dispensary (their first port of call in the event of illness). These dispensaries only have very basic equipment, they are able to deal with simple primary health care needs and some ran, under difficult conditions, impressive maternity and child health preventative programmes. For example, a hospital and health post in rural Maxixe has a programme that involves over 600 ante natal checks on pregnant women and 6,100 health checks on under 5 year olds per month. The real shortages seemed to be felt most acutely in the main hospitals which seemed to be short of everything from basic equipment through to bandages, medicines and food for patients. In the Inhambane Government hospital the shortage extended to, for example, a complete lack of incubators for premature babies and of drugs to deal with the complications of labour. The hospital only has one operating surgeon who is expected to perform all operations from minor surgery to skin grafts.

THE SISTER CITY OPPORTUNITY

Obviously one of our key interests was who would be the partner on the Inhambane side of a sister city relationship and how would it work. The first piece of good news on that front is that the Governor and the two Mayors are both familiar with the concept of Sister Cities and Inhambane City has had a sister city relationship with Aveira in Portugal. The Mayor expressed his concern that this relationship had depended upon personal links between the former Mayor of Inhambane and the former Mayor of Aveira and with both those two departing the scene the relationship was dormant. He is enthusiastic for a new sister city link and recognised the need to see that any new link is supported within the city organisation so that it is sustainable.

The second bit of surprising good news is that both from our observations and from all that we were told Mozambique has recovered more rapidly than we anticipated from the long period of civil war. In particular the urban areas were not directly damaged by the war, and the main road (at least between Maputo and Inhambane) is in surprisingly good condition. The third bit of good news is that English is more widely used than we had anticipated and the growth in the use of English is rapid. Secondary school students are all taught English as part of their core curriculum, and there is a strong desire in the community to learn English. As an example of this our interpreter informed us that a number of his English speaking friends are involved in giving private English language lessons to small groups of adults keen to learn and improve their English speaking skills. Clearly with having joined the Commonwealth, and with English being the international language of its neighbours, the importance of proficiency in English is widely recognised throughout the country.

Establishing a link with Inhambane Province seems unrealistic and inappropriate simply because of its size - the Province covers 10,000 square kilometres (compare Christchurch's 450 sq. km) and has a population of 1.4m. On the other hand choosing between Maxixe and Inhambane which are twin cities either side of the Inhambane River would be somewhat arbitrary, and would leave us with a sister city that in population terms, at least, is rather small (each has a population of fewer than 100,000). The conclusion that we came to is that the link should be jointly with Inhambane and Maxixe Cities. That possibility we mentioned both to SCF and to the Mayor of Inhambane and both saw it as feasible.

All through the development of the possibility of a sister city relationship with Inhambane, thinking has been that the situation would be significantly different from that of other sister city relationships. We have come to the conclusion that while it will be different, the similarities are much greater than we originally thought. The basic structure will be identical, that is, there will need to be a formal agreement between Christchurch City Council and the Inhambane and Maxixe City Councils and there will need to be sister committees at each end. The role of the sister city committees will be essentially the same as that of other sister city committees, that is, they will have a brief to foster links between the two communities and undertake an education and awareness role. The major difference would be that the focus at the Christchurch end will be on providing support and funding to help Inhambane and Maxixe meet their urgent development needs. This would involve the Sister City Committees at each end fostering twinning arrangements between institutions, organisations and service clubs in Christchurch and organisations in Inhambane/Maxixe. Examples of such twinning arrangements could include, specific schools in Christchurch with specific schools in Inhambane/Maxixe, links between churches in Christchurch and churches in Inhambane/Maxixe, and links between the Christchurch Muslim community and Muslim organisations in Inhambane/Maxixe. Christchurch service clubs could also be encouraged to `adopt' a hospital or other public facilities in Inhambane/Maxixe. It is also likely that as the sister city committees find their feet and get used to working together they may wish to become involved in direct fund raising in Christchurch for specific projects identified by the Sister City Committee in Inhambane/Maxixe, or in helping New Zealand development agencies with support for their projects in Inhambane/Maxixe.

The costs to the Council of the Inhambane/Maxixe sister city link will be the same as the costs of its other sister city links. It will be the responsibility of the Sister City Committee to find support from the community for its activities.

Although in accordance with current Christchurch City Council policy there should be a formal review of any sister city link several years (say, six) after it has been established, there is in the medium to long term considerable opportunity for economic links between Mozambique and Christchurch. The Mayor of Inhambane City specifically mentioned to us the possibility of joint ventures in fishing, tourism and farming, and we were greatly impressed by the tourism and farming potential of the country. (The beaches are unbelievably beautiful with pleasant backdrops, very nice warm water and a steady, regular wave!)

CONCLUSION

As a result of our visit we are firmly of the view that the establishment of a sister city link with Inhambane and Maxixe Cities should be pursued. We anticipated that a sister city link with Mozambique would be radically different from our other sister city links, but to our surprise are now of the view that it will have strong similarities to the other sister cities. Initially the focus is likely to be on support for aid and development projects in Inhambane/Maxixe but, over time, as Mozambique begins to realise its potential, this may well change.

A further influence on this is that Mozambique has been admitted as a member of the Commonwealth and this indicates that it is looking to develop economic and social ties with other Commonwealth countries. The early development of a sister city link with a part of Mozambique may well have medium to long term economic benefits to Christchurch.

Recommendation:	That the Council propose a sister city relationship jointly with Inhambane and Maxixe cities and request the Mayor to write to the respective Mayors formally proposing a sister city link. That aid agencies and other relevant groups and individuals be invited to a consultation and information meeting on the formation of the proposed link.

Chairman's Recommendation:	That the above recommendation be adopted.

(Note: Councillor Murray requested that her vote against the foregoing recommendation be recorded.)

SUBMISSIONS FROM TIM BARNETT MP ON 1997 DRAFT PLAN

RR 6125

Officer responsible	Author
Director of Policy	Dave Hinman
Corporate Plan Output: Annual Plan Submissions

The purpose of this report is to review the comprehensive submission made by Mr Tim Barnett MP to the 1997 Draft Plan seeking changes to the Council's strategic and other objectives. The Council at its meeting on 30 July 1997 resolved that the suggested changes proposed be referred to the relevant Standing Committees for report on to the Council.

INTRODUCTION

Tim Barnett's 13 page submission (tabled) covered a wide range of matters in both the statement of strategic objectives and for some of the Council's significant activities. For some areas (e.g. Economic Development and Employment) the Council's objectives were supported and no changes sought, while in others (e.g. Environmental Services) changes or additions to objectives are requested. This report focuses on those areas where changes are sought.

Comment has been sought from the relevant Unit Managers responsible for the areas of concern to the submitter and those comments are incorporated in the report.

The relevant Standing Committees include Community Services, Environmental and Strategy and Resources. For the sake of completeness the whole report is presented to each of these Committees, with the parts relevant to each noted accordingly.

SUBMISSIONS ON THE STATEMENT OF STRATEGIC OBJECTIVES

Housing Provision (Community Services Committee)

The submission is concerned that priority needs to be given to the needs of low income residents and requests that A10 be amended by adding the words in bold:

A10 The provision of access to quality affordable housing appropriate to the needs of present and future households [with particular regard to the needs of low income residents] .

Comment: The Statement of Strategic Objectives is at a very broad level and it is appropriate for the statement to be all embracing. The Plan goes on to refer to the Strategic Policies and Strategies being developed by the Council, and this already includes a Housing Strategy Policy Statement. That Statement specifically refers to people on low incomes, as follows:

"The Christchurch City Council contributes to the community's social well-being by ensuring safe, accessible and affordable housing is available to people on low incomes including elderly persons and people with disabilities."

In addition the Overall Service Objective for the Significant Activity - Housing contains very similar wording to this Housing Strategy Policy Statement. The concerns of the submitter are therefore seen to be already adequately covered.

Built Environment Amenity (Environmental Committee)

The submission is concerned that insufficient recognition is given to the special character of the inner city and about the impact of inner city change on low income and other disadvantaged communities. It requests that B4 be added to as follows:

B4 A form and direction of development and redevelopment of the built environment which:

Maintains and enhances the unique identity of Christchurch .
Provides for a wide variety of living, working and leisure activities throughout the city in a manner which maintains or enhances people's enjoyment of amenity values.
[Recognises and retains the unique identity of Christchurch's inner-city communities].
[Avoids, remedies or mitigates the adverse effects of development on low income and other vulnerable people and communities].

Comment: The Environmental Policy and Planning Manager (John Dryden) notes: "I do not think recognition should be given to one part of the city only in the strategic objectives. If we do that, then other parts of the city such as the suburbs, inner suburbs, Port Hills and the like, all have character which should be recognised. Anyhow, the matter of the retention of character is more for the City Plan and not the Annual Plan. As to the effects of development on low income and vulnerable people in communities, the Resource Management Act does not discriminate between people on the basis of income. However, the Council can directly pursue housing for these people (which it is already considering)." It is also pointed out that Objective B5 already recognises the contribution of the central city to the unique identity of Christchurch ("Enhancement of the central city's contribution to the unique identity of Christchurch with large numbers of residents and visitors enjoying its attributes.")

Heritage Features (Environmental Committee)

The submission is concerned that community concern about loss of heritage and character buildings and areas from Christchurch be articulated in the strategic objectives and requests that B6 be added to as follows:

B6 Heritage [and character] values of significant and representative sites, places, areas and other taonga of Christchurch maintained [protected and retained] for the benefit of present and future generations.

Comment: John Dryden notes "I feel that the addition of the word `character' tends to blur the distinction between heritage and character. On the one hand we are aiming to protect our heritage, but on the other, character can be both good and bad and may need to change over time. Character can be recognised but this is a matter for the City Plan. Recognition of it does not necessarily lead to its retention and it may evolve over time."

It may also be that some buildings not recognised in the City Plan as heritage buildings and thus tending to be described as "character buildings" do have some heritage value and again that is a matter for the City Plan to consider. The replacement of "maintained" by "protected and retained" perhaps more accurately conveys the meaning intended.

Elected Member Representation and Decision-making (Environmental and Strategy & Resources Committees)

The submissions are concerned about the extent to which citizens have a voice in Council decision-making, and the need for elected members to clearly understand all the implications of their decisions. Amendments to strategic objectives D2 and D3 are requested as follows:

D2 A high level of [public] accountability in decision-making reflecting:

Decisions made by elected member forums where representation is drawn from the community of interest matching that affected by these decisions;
Ample opportunity for [active canvassing of ] the views of those affected to [so that they] be made known prior to decisions being taken;
Active community participation in the decision-making process].
Decisions are made as soon as practical and the reasons for them readily obtainable.

D3 Elected members properly equipped for and advised on the decision-making process and the significant implications of recommended decisions including

The long term financial implications of both service development and annual budget proposals.
The cost and benefits to the wider community and to users of projects and programmes.
[Adverse effects on the natural and physical environment].
[Adverse effects on people and communities].

Comment: On the public participation issue (which also comes up again under Significant Activity - Environmental Services) there is a need for balance between consultation with third parties and the rights of those who wish to undertake development and the Council is under pressure from both sides. On the question of the notification of resource consents for example, the Environmental Services Manager, Ken Lawn advises "it is also worth noting that the Council is being increasingly criticised for notifying too many applications, particularly by those in the development area". I would also draw attention to the Council's draft consultation policy which expands upon the strategic objectives expressed in D2. The suggested additions by the submitter are not inconsistent with the draft consultation policy and once that policy is adopted by the Council, consequential amendment to the objectives may be appropriate.

On the significant implications of decisions, drawing attention to effects on the environment and on people would be consistent with other strategic objectives of the Council. John Dryden notes however that "the word `adverse' is unnecessary. We are concerned with the effects, both negative and positive on the natural environment, and on people and communities."

SUBMISSIONS ON SIGNIFICANT ACTIVITIES

Environmental Policy and Planning (Environmental Committee)

The submission on Planned Services seeks to expand the bullet point on concept plans for urban renewal and environmental improvements to emphasise potential adverse effects. It seeks the following addition:

Prepare concept plans for urban renewal and environmental improvements of the city, including the central city [which address the adverse effects of urban renewal on people and communities]

Comment: While adverse effects on people and communities are a significant matter to take into account, this is not the only reason for undertaking urban renewal and environmental improvements. John Dryden notes "the whole idea of urban renewal is to positively improve the environment and, while there will be some adverse effects, the positive effects must be emphasised. The suggested addition to this policy is unnecessary."

Administer [increase] funds set aside for promoting heritage retentionÖ.

Comment: The submitter is confusing policy change with service delivery. This part of the Plan is dealing with the services the Unit delivers, and the question of increasing the vote for any particular service is dealt with elsewhere.

The submission on the Overall Service Objective relating to adverse environmental effects seeks to specifically refer to people and communities by adding to the bullet point as follows:

limits the adverse effects of activities on the environment [including people and communities].

Comment: John Dryden notes "the RM Act already defines "environment" to include "people and communities" and therefore the addition of these words is unnecessary".

Environmental Services (Environmental Committee)

The submission requests an additional objective for 1997/98 relating to consultation in respect of resource consents, as follows:

9. [Review policies and processes relating to the notification process for consent applications tor ensure that there is ample opportunity for the views of those affected to be made known prior to decisions being made].

Comment: Ken Lawn notes "the issue of notification of resource consents has been the subject of discussion and review over the past four months. Following discussions with the Chairman of the Environmental Committee, we are now referring a number of decisions on notifications to hearings panels, or having informal discussions on them with the Chairman. The Chairman intends attending a number officer panel meetings to get a better feel for the range of decisions made by those panels." (See also comments above relating to elected members and consultation.)

CONCLUSIONS

Tim Barnett's submissions for the most part endeavour to further amplify objectives already agreed by the Council rather than suggest any substantial change in direction, although there is an underlying theme emphasising the need for increased consultation with people and communities before decisions are made.

There is a view, particularly in respect of the strategic objectives, that these should remain unchanged for the life of the Council, and should only be reviewed following the next triennial elections. While major changes in direction mid-term should perhaps only be contemplated in special circumstances and after very careful consideration, the Plan nevertheless does invite public debate in this area "Ö.debate on the wider underlying objectives is also welcomed." (Page 7, Draft 1997 Plan)

To the extent suggested in the comments above therefore, it would be appropriate to recommend changes to the 1998 Plan. It is also suggested that when giving consideration to the draft Consultation Policy, any consequential adjustment to strategic and other objectives might also be considered.

The report was considered by the Community Services Committee, Environmental Committee and the Strategy and Resources Committee at their October meetings.

The Community Services Committee recommends that strategic objective A10 be amended to read:

"To contribute to the community's social well-being by ensuring safe, accessible and affordable housing is available to people on low incomes, including elderly persons and people with disabilities."

The Environmental Committee recommends:

1. That strategic objective B6 be amended to read:

"Heritage values of significant and representative sites, places, areas and other taonga of Christchurch protected and retained for the benefit of present and future generations."

2. That bullet-point 3, Environmental Policy and Planning - Planned Services for 1998/99 be amended to read:

" Prepare concept plans for urban renewal and environmental improvements of the city, including the central city, which address the effects of urban renewal on people and communities."

3. That bullet-point 7, Environmental Policy and Planning - Overall Service Objectives be amended to read:

" Limits the adverse effects of activities on the environment including people and communities."

The Environmental Committee and Strategy and Resources Committee jointly recommend:

1. That strategic objective D2 be amended by adding the following:

" Active community participation in the decision-making process."

2. That strategic objective D3 be amended by adding the following:

" Positive and adverse effects on people, communities and the natural and physical environment."

Recommendation: That the foregoing recommendations be adopted.

3. SUBURBAN SERVICE DELIVERY RR 4586

Officers responsible	Author
City Manager, Director of Operations	Stephen Phillips, Community Manager
Corporate Plan Output: Corporate Advice 4.8 text 2.

The following report was presented to the August meeting of the Strategy and Resources Committee. The Committee resolved to seek comment from Community Boards prior to referring the strategy to the Council for a decision.

The purpose of this report is to outline the cost/saving implications of the proposed suburban service delivery strategy as presented to the February meeting of the Strategy and Resources Committee.

The report also looks at the financial implications of an alternative suburban service delivery option.

Currently cash receipting, handling of action requests for the Council and provision of general Council/Community information is provided from seven suburban locations.

In addition to retaining those functions at the seven existing locations the recommended strategy provides for handling action requests and the provision of general Council/Community information at 10 additional locations.

The report also confirms earlier recommendations that Community Boards continue to meet at existing locations and that various staff be relocated to Fendalton, Sockburn and Linwood Service Centres.

The further work suggests that the strategy will not only improve the effectiveness of service delivery but also offers annual operating cost savings in excess of $250,000. As with any programme of change, however, some opposition is likely to arise.

The team who undertook this further work comprised the Community Managers from Linwood, Shirley and Fendalton and the North-West Area Librarian. The report was also reviewed by the Project Team which undertook the major study last year. All Community Managers were either involved in the process or consulted.

INTRODUCTION/BACKGROUND

The report presented to the February meeting of this Committee recommended adoption of the following Suburban Service Delivery Strategy:

That the principle of utilising the suburban libraries network in a programme of enhancing the Council's customer service delivery be adopted.
That the current and future libraries network be used to address deficiencies in the current city wide service delivery coverage. (Note: the deficiencies can be identified on the map showing locations of existing service centres.)
That this enhanced service be delivered by well trained and skilled customer services representatives providing cash receipting, handling action requests for Council and general Council/Community information, through access to a networked data base.
That to improve customer service delivery, cash receipting, the handling of action requests and provision of general information be provided initially from the Halswell, Hornby and New Brighton Libraries, and from the re-developed Spreydon Library.
That the existing Fendalton Service Centre building be redeveloped as an integrated library and service centre subject to costs to support the viability of this proposal being obtained (Peter Vause has been requested to review his 1995 proposals).
That the planned library at Upper Riccarton be designed as a library and information centre.
That cash receipting, the handling of action requests and the provision of general information at the Papanui and Shirley Service Centres be integrated into the respective co-located libraries.
That all Community Boards continue to meet at their existing locations and receive the same high standard of services.
That in order to improve service delivery and achieve greater efficiencies the servicing of community boards, the delivery of community activities, technical and general support functions be rationalised to Fendalton, Sockburn and Linwood Service Centres, rather than at six suburban locations as at present.
That the approach by the New Zealand Police regarding co-location with Council service delivery points be supported in principle.

The effects of the strategy are illustrated on the attached map.

Approval in principle for progressive implementation of the strategy, subject to budget and programming approvals, was sought.

The Committee resolved to support the strategy for further investigation of operational and capital costs and savings.

In the intervening period the Shirley Service Centre and Library was destroyed by fire. In May the Council authorised tenders to be called for the re-development of these two facilities as a library and information centre.

At that time (May) staff were also asked to pay particular attention to the prospective development of the New Brighton and Parklands libraries as integrated service delivery centres.

The Team which undertook the further study, in addition to investigating financial implications related to the strategy took the opportunity to look at other options in so far as receipting of Council payments are concerned.

This study was considered prudent given current trends for payment of accounts (e.g. direct debiting and telebanking) and security issues.

CONSULTATION

As part of the further study sought by the Committee a number of stakeholders were consulted.

These included:

MIS Unit

Information was needed to assess costs relative to provision of data links and support services for extended hours of operation.

Libraries Unit

Further assessment of Community Libraries for the provision of extended services, particularly having regard to space and security issues.

Funds Accounting Manager

Further information was sought on future directions in terms of payment of Council accounts.

Animal Control Section

Information was sought on future direction of handling dog registration fees. Reply paid envelopes are being piloted with some dog owners this year.

Southpower

Information was sought on future direction of agency arrangements in respect of payment of accounts.

City Design Unit

Indicative costs of providing suitable facilities (e.g. a booth) for receiving payment of accounts were needed.

Property Unit

We wanted to know of any implications in respect of their unit.

New Zealand Police

We sought to gain information on the tendering of the drivers licence function and on co-location possibilities in respect of the Fendalton Service Centre and Library site.

Community Boards

At the August meeting of the Strategy and Resources Committee it was resolved that this report be forwarded to Community Boards for comment.

Much information gathered was central to the costing exercise. However the following key data is relevant to the strategic direction:

(a) Libraries

All libraries are capable of handling Council information enquiries and action requests once the necessary electronic systems are in place.

Libraries staff displayed a positive response to the information handling aspects of the proposal it is complementary to their existing role in relation to retrieval and dissemination of information.

Establishment of library/Council information centres will provide for better service delivery and will enhance the Council's image in the community.

Existing staff have appropriate skills but extensive training for use of new systems will be needed.

The provision of cash receipting raises concerns regarding security generally. This particularly relates to Redwood, Hornby and Halswell Libraries because of design or location factors.

The issue of security is significant as evidenced by the recent spate of serious incidents throughout the city. The very open layout of library counters is not appropriate for handling relatively significant amounts of money and therefore internal alterations to provide appropriate "booths" would be required at most, if not all, locations. By and large space for such facilities is limited in terms of existing library layouts.

(b) Southpower

Significant to this exercise is advice from Southpower that the company does not want to expand its agency network. This agency operation at several service centre locations accounts for significant volumes of receipts and in two cases exceeds the number of rate payments made at these locations.

TRANSACTION VOLUMES

Currently suburban service centres are undertaking the following volumes of receipting transactions (for the year ended 30 June 1997):

	Core Council Activities*	Agencies**	Total Receipts
Beckenham	25050	13049	38099
Fendalton	30610	12550	43160
Linwood	38435	7672	46107
Papanui	32527	25225	57752
Shirley	37197	27197	64394
Sockburn	34498	6308	40806
Riccarton	17930	8689	26619
Total	216247	100690	316937

* Core includes: Dog registration, debtors, rates/water parking infringement pims/consents etc.

** Agencies includes: Southpower, drivers licences, newspaper advertisements

With regard to walk in Council enquiries (i.e. non-receipting) a snapshot was taken at the Riccarton Service Centre over a week in July to quantify the volumes. Riccarton was chosen as it does not have specialist staff on site and therefore was more likely to be indicative of the volume of enquiries that would be received at a library/information centre location.

The number of such transactions over a one week period was of the order of 50 which is consistent with experience of the busiest library/Council information centre in Auckland. We would emphasise that these transactions relate to requests for information in isolation i.e. that was the purpose of the visit as opposed to information being requested at the time a payment was being made.

Whilst there is never an "average week" it is worth noting that a number of enquiries during the snapshot related to the annual refuse bag deliveries and dog registration.

At the date of writing this report the government still has not decided the policy of handling drivers licences although it is understood that a paper is about to be (or already has been) put before the cabinet.

The Police are still keen to establish a presence by way of co-location on the Fendalton Service Centre/Library site.

(d) Community Boards

All Community Boards considered this report during the last round of monthly meetings and resolved to recommend to the Strategy and Resources Committee as follows:

Riccarton/Wigram - The Board decided to endorse the strategy, in principle, but that the Council be requested to ensure that redundancies do not occur as a result of implementation of the staged strategy.

Hagley/Ferrymead - The Board decided to support recommendations 1-11 and added a further recommendation:

12. That the Council seek to minimise cash payments by actively marketing alternative methods of payment.

Burwood/Pegasus - The Board decided:

1. To endorse the recommendations set out in the Suburban Service Delivery report.

2. That cash receipting facilities be included in the New Brighton Library.

3. That a public meeting room also be included in the proposed New Brighton Library.

Fendalton/Waimairi - The Board adopted the 11 recommendations in principle, with no amendments, and with the addition of one further recommendation which reads:

That the savings identified in the strategy be supported on the basis that there be no associated increase of costs to the Civic Offices.

Shirley/Papanui - The Board decided to adopt the following recommendations in principle and seek an additional report on the service implications for the Papanui Service Centre after the new Shirley Library/Service Centre has been in operation for some time:

That the principle of utilising the suburban libraries network in a programme of enhancing the Council's customer service delivery be adopted.
That the current and future libraries network be used to address deficiencies in the current city-wide service delivery coverage.
That this enhanced service be delivered by well trained and skilled customer services representatives, handling action requests for Council and general Council/community information, through access to a networked database.
That to improve customer service delivery, cash receipting, the handling of action requests and provision of general information be provided initially from the Halswell, Hornby and New Brighton Libraries, and from the redeveloped Spreydon Library.
That the existing Fendalton Service Centre building be redeveloped as an integrated Library and Service Centre subject to costs to support the viability of this proposal being obtained (Peter Vause has been requested to review his 1995 proposals).
That the planned Library at Upper Riccarton be designed as a Library and Information Centre.
That cash receipting, the handling of action requests and the provision of general information at the Papanui and Shirley Service Centres be integrated into the respective co-located libraries.

Spreydon/Heathcote - The Board decided not to support the report as there is no provision for improved service delivery in the Spreydon/Heathcote area and that the Board would strongly support the status quo.

In addition to this resolution the Board expressed the following concerns:

That the report raises more questions than it provides answers.
That there is a need better to define the objectives of service delivery before changing the way in which service delivery is provided.
That it is the present perception of the Board that greater rather than lesser resources are needed for suburban service delivery.
That the initial response of the Board and the community to what is outlined in this report is not favourable.
That insufficient recognition is given to the historical significance of the Beckenham Service Centre as a service point and that this Board would strongly recommend that the Beckenham Service Centre continue with more and not fewer resources.
That, in line with the mission statement of the Council, the Board would expect the Council to consult with the local community.

CORE ACTIVITIES VERSUS AGENCIES

Service centres currently undertake a range of services for other agencies. These include:

Taking payments for Southpower Ltd
Drivers Licences (testing and/or renewals)
Newspaper advertisements

Should payments of accounts be accepted at stand alone libraries we do not believe that payments for agencies should be included i.e. payments should be restricted to core Council functions such as rates, dog registration, parking infringements.

Accordingly the costing which follow do not reflect any costs/revenue related to non core activities.

POTENTIAL SAVINGS

Our earlier report noted that opportunities exist for administrative support to Community Boards, the delivery of community activities and technical and general support functions to follow the successful model of area staff being located at three rather than six service centres. This model was seen as giving better service, creating stronger and more efficient teams and providing cost savings.

Rationalisation of these service centre support functions to Fendalton, Sockburn and Linwood, rather than at six locations as at present, provide an opportunity to gain significant savings over existing costs.

It is estimated that the rationalisation of Service Centre structures could eventually lead to savings of the order of $400,000 per annum. The same level of service to the community and elected members would be retained.

COSTS ASSOCIATED WITH THE STRATEGY

The following options were assessed:

Option 1: Strategy as proposed in February i.e. Council/Community information, handling action requests for Council and cash receipting from Service Centres and all Suburban Library/Information Centres.

Annual operating costs - first year	$263,670
Annual operating costs - ongoing	$198,670
Establishment (capital) costs	$167,000

Option 2: Information and action requests to be supplied from Service Centres and Library/Information Centres, but cash receipting confined to existing locations (Beckenham, Fendalton, Linwood, Papanui, Shirley, Sockburn and Riccarton) and payment deposit facilities be provided at other Community Libraries.

Annual operating costs - first year	$171,546
Annual operating costs - ongoing	$109,046
Establishment (capital) costs	$62,000

The higher operating costs for the first year, under each option, relates largely to the cost of providing higher capacity computer data links. This is budgeted for one year only as the Libraries Unit plan to increase the capacity for other reasons in the subsequent year and therefore the cost would no longer be attributable to the strategy. One off staff training costs are also budgeted in year one.

Payment deposit facilities (Option 2) are currently in use at several library locations i.e. cheque drop boxes. However they have not really been promoted as a Council service and generally they are not well designed, located or labelled. Properly designed and marketed payment deposit facilities would provide a very low cost, low risk, alternative service to receipting payments at other library locations.

Note: The above costs assume that the strategy is implemented entirely in one year, including facilities which, at this time, are programmed in the 5 year Capital Expenditure Programme. In reality the strategy would be implemented at existing locations first once systems are put in place and progressing thereafter as new libraries are built.

The team also looked at an option of payment of Council related accounts through an external agent. Currently external agents are used for receipting purposes at New Brighton and Hornby. If there is a desire to extend the payment network opportunities exist by way of extending use of agencies.

However we believe that option 2 would provide an enhanced service which is adequate and appropriate given trends in payment methods.

The Council should continue, through the Funds Accounting Manager, to seek to minimise cash payments by actively marketing alternative methods of payment such as direct debiting and telebanking.

Recent market research in Christchurch has revealed that customers still want to visit Council offices, including those in the suburbs. Provision for receipting accounts should be retained at the existing service centre locations in the immediate future but should the volume of transactions significantly reduce through greater use of new technology or changes in agency arrangements the method of operation should be reviewed.

CONCLUSIONS

The proposed strategy was designed to provide enhanced customer service throughout the community. The strategy allows us to move from a largely paper based system, which was set up in 1989, to utilise existing and developing technology.

The strategy was, and still is, seen as a medium to long term plan to implement as the enquiry handling and referral systems become available, circumstances arise and as budget approvals are given.

Having further considered the matter we question the wisdom of providing cash receipting at all community library locations. We do however confirm our original recommendations to enhance information service delivery through the libraries network.

Whilst we have significant reservations about the receipting of payment at stand alone libraries we do see an opportunity to provide enhanced service by offering appropriately designed deposit facilities at each of these libraries. Customers can leave payments for accounts which are cleared later. This practice, which is wide spread throughout trading banks, builds on existing limited facilities currently provided at several libraries.

We also retain the view that significant savings can be achieved, without loss of service, through rationalisation of the existing service centre network.

The estimated savings/cost of implementing the Suburban Service Delivery Strategy, which provides enhanced service delivery through extended Council services from the suburban libraries, is:

	Option 1 (Full Strategy)	Option 2 (Strategy without further payment receipting outlets)
Savings through Service Centre rationalisation	$400,000	$400,000
Less annual operating costs Net Savings	$198,670 $201,330	$109,046 $290,954
Capital Costs	$167,000	$62,000

It is recommended:

That the principle of utilising the suburban libraries network in a programme of enhancing the Council's customer service delivery be adopted.
That the current and future libraries network be used to address deficiencies in the current city wide service delivery coverage. (Note: the deficiencies can be identified on the map showing locations of existing service centres.)
That this enhanced service be delivered by well trained and skilled customer services representatives, handling action requests for Council and general Council/Community information, through access to a networked data base.
That to improve customer service delivery, the handling of action requests and provision of general information be provided initially from the New Brighton, Halswell and Hornby Libraries, and from the re-developed Spreydon Library.
That the existing Fendalton Service Centre building be redeveloped or replaced as an integrated/co-located library and service centre.
That the planned library at Upper Riccarton be designed as a library and information centre.
That cash receipting, the handling of action requests and the provision of general information at the Papanui and Shirley Service Centres be integrated into the respective co-located libraries.
That payment deposit facilities be provided at all suburban libraries other than those which are integrated or co-located with a Service Centre.
That all Community Boards continue to meet at their existing locations and receive the same high standard of services.
That in order to further improve service delivery and achieve greater efficiencies the servicing of community boards, the delivery of community activities, technical and general support functions be rationalised to Fendalton, Sockburn and Linwood Service Centres, rather than at six suburban locations as at present.
That the approach by the New Zealand Police regarding co-location with Council service delivery points be supported in principle.

The Chairman commented:

The strategy outlined in the report is very attractive because it enhances the current level of service by providing services at more locations whilst reducing costs by at least $200,000 per year. The provision of cash receipting facilities is clearly an issue both for staff and Community Boards. I consider that we should provide for payment by electronic means (EFTPOS) at all centres. Where possible, we should continue to accept cash as a service to elderly people, but encourage the use of electronic payment.

Recommendation:

That the above recommendations, in general, be adopted.
That electronic payment facilities be provided as an alternative to cash payment.
That the issues raised by Community Boards be noted.
That, in line with the Council's draft policy of community consultation, the Spreydon/Heathcote Community Board be requested to come forward with viable proposals for the future delivery of Council services in the Spreydon/Heathcote community, after consultation with neighbourhood groups.
That, when an existing library is being redeveloped or a new library built, consideration be given to security design if there is an identified need.
That access-points for services to residents' associations be clarified.

SEMINAR FOR EXPERIENCED LOCAL GOVERNMENT ELECTED MEMBERS

RR 6294

Officer responsible	Author
Council Secretary	Max Robertson
Corporate Plan Output: Public Accountability: Councillors

INTRODUCTION

The purpose of this report is to seek approval for up to two Councillors to attend a two day programme for experienced elected members being organised by the University of Auckland Centre for Research and Public Management.

PROGRAMME DETAILS

These are set out in the tabled brochure. Enrolments will be accepted for either:

Thursday 6 and Friday 7 November, 8.30 am - 5.00 pm; or
Monday 10 and Tuesday 11 November, 8.30 am - 5.00 pm.

ESTIMATED COSTS AND POSSIBLE ATTENDANCE

Assuming one night's accommodation, the all up cost per member is estimated at $1,300 including registration, return airfares to Auckland and accommodation. These costs would be debited to the provision of $20,000 made for Councillors' conference attendance and training in 1997/98.

In my opinion the topics and the presenters have been well chosen, and this Council would benefit by the attendance of at least two Councillors.

Recommendation:

That, subject to their availability, Councillors Murray and Moore be authorised to attend the above seminar.
That the Chairman and Deputy Chairman be authorised to appoint substitute(s) in the event of either Councillor not being able to attend the seminar.

REPORT OF THE METROPOLITAN FUNDING SUB-COMMITTEE

RR 6335

Officer responsible	Author
Leisure and Community Services Manager	Dennis Morgan
Corporate Plan Output: Grants to Community Organisations

The purpose of this report is to advise of the decisions and recommendations of a meeting of the Funding Sub-Committee on 24 September 1997.

ART IN THE PARK

The original Stone Symposium or Art in the Park has been very successful over the past years except in its ability to attract major sponsorship. The organiser has requested $60,000 from the Council to assist with the holding of this event. Following considerable discussion in terms of the budget and timing of this event the meeting felt that the uniqueness of this festival warranted ongoing support.

GRANTS APPLICATIONS

The Committee received the information that the Sub-Committee had declined applications from two groups for financial support for fundraising events, deferred consideration of two further applications until 1998/99 and referred an application from the Life Education Trust to the Community Services Committee for consideration for funding from the social initiatives budget.

Recommendation:

That the Council provide $30,000 from the Events Seeding Fund for the 1998 Art in the Park event.
That this event remain an annual event.
That the Council not support `Art in the Park' being linked to `Showtime Canterbury'.
That the organisers of `Art in the Park' discuss the timing of this event with the Communications and Promotions Manager.
That `Art in the Park' be considered as a line item in the 1998/99 Council budget.

REMISSION OF RATES - DEAF ASSOCIATION OF NEW ZEALAND, 270 GLOUCESTER STREET - REFERENCE NO. 2710/432/0

RR 6141

Officer responsible	Author
Funds Manager	Wayne Hann
Corporate Plan Output: Volume I Page 5.2.text.6

The purpose of this report is to obtain Council authority under Section 179 of the Rating Powers Act 1988 for a remission of rates in respect of the above property.

By way of background information I would advise that the Deaf Association of New Zealand is a non-profit incorporated society which provides services for profoundly deaf people in New Zealand. Christchurch has about 700 deaf people in the region, many of whom access some form of service from the Association.

The property qualifies for remission of rates under Clause (n) of Part I of the Second Schedule to the Rating Powers Act which provides that a local authority may remit rates on land owned or occupied by or in trust for any society or association of persons, whether incorporated or not, whose object or principal object Ö is to promote generally the arts or any purpose of recreation, health, education, or instruction for the benefit of residents or any group or groups of residents of the district.

The property has a valuation (1 September 1995) of Capital $120,000, Land $77,000, Value of Improvements $43,000. The 1997/98 rates are estimated at $756.00.

Recommendation:

That, in line with existing Council policy, the Council approve a one-third remission of rates in respect of the above property, with effect from 1 July 1997.

RATES POSTPONED - F C & M R BENNETT, FLAT 1, 16 LESLIE STREET REFERENCE NO. 1896/43/17

RR 6142

Officer responsible	Author
Funds Manager	Wayne Hann
Corporate Plan Output: Volume I Page 5.2.text.6

The purpose of this report is to obtain Council consent to the registration of a Transmission and Release of Mortgage in respect of the above property.

The property is subject to a Statutory Land Charge securing rates, the payment of which has been postponed on the grounds of financial hardship pursuant to Section 178 of the Rating Powers Act 1988. Such charge is registered pursuant to Section 158 of the Act.

Section 162(4) provides that except with the consent of the local authority, no dealing with the land by the occupier shall be registered while any charge under this section is registered against the land.

The solicitors acting for Mr Bennett have advised that they are in the process of registering the transmission from Mr and Mrs Bennett to Mr Bennett as survivor together with a discharge of the mortgage which was repaid some time ago but not discharged. They now seek the Council's consent to the release of the mortgage and registration of the transmission as is required by Section 162 of the Act.

The registration of the transmission and release of the mortgage will in no way affect the Council's rights under the Statutory Land Charge and this being the case it is normal policy to grant Council consent accordingly.

Recommendation:

That the Council grant its consent for the registration of the Transmission to Mr Bennett and for the release of Mortgage 746708/3 in favour of Trust Bank Canterbury.

AUDITED ANNUAL FINANCIAL STATEMENTS OF MINOR SUBSIDIARY COMPANIES

RR 6338

Officer responsible	Author
Director of Finance	Bob Lineham
Corporate Plan Output: Trading Activities Monitoring Volume I Table II

The purpose of this report is to submit audited accounts from various subsidiary companies to the Council for information.

The Annual Accounts for the following companies for the year ended 30 June 1997 have now been completed and audited:

Travis Finance and its subsidiaries
Travis Heritage Park Limited
THP Holdings Limited
Windsor Central Limited
Christchurch City Facilities Limited

In each case this is the first year of operation of the companies.

Each of these companies has received a clear audit report which is included in the annual reports which are tabled.

In view of the fact that these are tightly held companies it is unnecessary for a formal annual meeting to be held and it is recommended that the legal requirements be met by an entry in the minute book of the company signed under the seal of the Council.

Recommendation:

That the audited annual accounts be received.
That the requirements of the Companies Act for an annual general meeting be met by an entry in the minute book of each company and that the Common Seal of the Council be attached to the necessary documents.

9. REPORT FROM CHRISTCHURCH CITY HOLDINGS LIMITED RR 6130

Officer responsible	Author
Chairman of the Board, Christchurch City Holdings Limited, Alister James	Bob Lineham
Corporate Plan Output: Monitoring of Trading Enterprises Volume I Table II

The purpose of this report is to provide information to the Council on the activities of Christchurch City Holdings Limited and to seek approval for the Statements of Corporate Intent of a number of companies.

1. CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED

(a) Dividend Policy

Recent discussions with Christchurch International Airport Limited in conjunction with the Crown shareholder have identified the need to review the previously agreed dividend policy in view of a recent downturn in international and domestic travel trends.

The review has been undertaken testing various scenarios and it has been agreed with CIAL that the divided policy can realistically be based on 60% of net profit after tax except in 1998 when the company believe they can sustain a minimum of $6M.

(b) Statement of Corporate Intent

Attached to this report is a draft Statement of Corporate Intent prepared by CIAL and supported by Christchurch City Holdings Limited for approval by the Council. This revised Statement of Corporate Intent incorporates the revised dividend policy referred to above.

To provide background information to the operation of the company, a one sheet summary of key financial and operational statistics is also attached.

Recommendation: That the draft Statement of Corporate Intent be approved.

2. CHRISTCHURCH TRANSPORT LIMITED