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24. 9. 97
STRATEGY AND RESOURCES COMMITTEE
15 SEPTEMBER 1997
A meeting of the Strategy and Resources
Committee was held on
Monday 15 September 1997 at 4.00 pm
| PRESENT: | Councillor David Close (Chairman),Councillors Oscar Alpers, Carole Evans, Pat Harrow, Alister James, Garry Moore, Margaret Murray, Denis O'Rourke and Ron Wright. |
| APOLOGIES: | Apologies for absence were received and
accepted from the Mayor and Councillors Gordon Freeman
and Ian Howell. An apology for lateness was received and accepted from Councillor Ron Wright. Councillor Evans arrived at 4.30 pm and retired at 6.05 pm and was not present for clauses 5, 9, 10 and 11. Councillor Alpers arrived at 4.50 pm and was present for all clauses except clause 5. Councillor Wright arrived at 4.50 pm, retired at 7.30 pm during the discussion on clause 9 and was not present for clauses 5, 10 and 11. Councillor James retired at 5.45 pm and was not present for clauses 9, 10 and 11. Councillor Moore retired at 5.55 pm and was not present for clauses 9, 10 and 11. Councillor O'Rourke retired at 6.45 pm during the discussion on clause 9 and was not present for clauses 10 and 11. |
The Committee reports that:
PART A - MATTERS REQUIRING A COUNCIL DECISION
| 1. | MEMBERS' REMUNERATION | RR 4754 |
| Officer responsible | Author |
| Council Secretary | Max Robertson |
| Corporate Plan Output: Mayor, Councillors and Community Board Members | |
INTRODUCTION
The purpose of this report is to advise the Council of increases in members' remuneration recently approved by the Minister of Local Government. The Minister's Determination, which has now been gazetted, provides for a 3% increase in the maximum levels of remuneration, backdated to 1 July 1996.
COMPARISON OF PRESENT RATES AND NEW RATES
I previously reported to the Council in March 1997 on an earlier increase approved by the Minister, providing for a 2% increase with effect from 1 May 1996. At that time the Council resolved:
The following schedule shows the rates currently paid in terms of the March 1997 resolution, compared with the new maximum rates announced by the Minister:
| CURRENT RATES ACTUALLY PAID BY CCC | NEW MAXIMA |
|||
| Office | Daily Meeting Allowance | Annual Salary | Daily Meeting Allowance | Annual Salary |
| Christchurch City Council | $ | $ | $ | $ |
| Mayor | - | 87,150 | - | 91,570 |
| Deputy Mayor | 170 | 29,400 | 180 | 30,890 |
| Chairpersons of Standing Committees | 170 | 29,400 | 180 | 30,890 |
| Councillors | 170 | 14,700 | 180 | 15,450 |
| Community Boards | ||||
| Chairpersons | 135 | 12,600 | 140 | 17,650 |
| Members | 135 | 5,670 | 140 | 9,700 |
CONCLUSION
The Committee endorsed the Chairman's recommendation that this issue be considered by the incoming Council in November 1998 in view of the fact that it was discussed by the Council only a few months ago. To assist the new Council in setting the new levels of remuneration, particularly for Community Board Chairpersons and members, the majority of the Committee agreed that towards the end of the current term of the Council an assessment should be undertaken of Community Board Chairpersons' and members' workload and remuneration.
The Committee also noted that Local Government New Zealand had recently released a discussion document on elected members' remuneration to obtain the views of the local government sector on this issue. Local Government New Zealand established a working party whose brief was to develop options for discussion with a view to submitting a proposal to the Minister of Local Government later in the year. The working party has developed four options as follows:
Option One: An independent agency (like the Higher Salaries Commission)
This would require a position evaluation system to be used, would require regular review and would be transparent. A system such as this would be nationally consistent and reduce the number of issues to be dealt with. It would however remove local autonomy.
Option Two: Local choice
Councils would set their own levels based on local needs and expectations. Central government would ensure councils followed accountable processes.
Option Three: Total remuneration
This would be like `bulk funding'. A capped amount would be used by councils to determine how much would be paid to how many. Local variances could be taken into account. This system could be easily `politicised'.
Option Four: Status quo
Maximum and minimum levels set by legislation and adjusted by the Minister of Local Government.
The Committee suggests that a sub-committee, with power to act, be appointed to make a submission on the discussion document.
| Recommendation: |
|
| 2. | CLEAN AIR INCENTIVES | RR 6100 |
| Officer responsible | Author |
| Environmental Policy & Planning Manager | Terence Moody |
| Corporate Plan Output: Environmental Health Policy Vol II P.7.2.Text.12 | |
The purpose of this report is to determine the criteria by which the Christchurch City Council will make available financial incentives to encourage city residents to convert to non-polluting forms of heating.
INTRODUCTION
The Council, at its meeting on the 30 July 1997, decided to make funding available for a package of incentives to encourage more city residents to convert to non-polluting forms of energy. A significant number of submissions were made during the 1997 Plan process seeking a greater level of Council commitment to finding a solution to the problem of air pollution in Christchurch. The objective was stated to be to provide assistance to roughly 15,000 householders over a three year period. The programme was to be conducted with the Canterbury Regional Council's plans to reduce air pollution by regulation through their draft air plan, and their proposal for the prohibition on open fire use.
The Council has made the following funding available for the Incentives Scheme in the 1997 Plan.
| 1997/98 | $500,000 |
| 1998/99 | $500,000 |
| 1999/2000 | $670,000 |
| 2000/01 | $670,000 |
| 2001/02 | $80,000 |
| ------------ | |
| $2,420,000 | |
| ======= |
Details of the funding distribution mechanisms are still being examined by representatives of this Council, the Canterbury Regional Council, the Canterbury Development Corporation, Southpower Ltd and some industry groups. There is, however, a clear need to define exactly the objectives of the scheme; to what groups it should be applied; the criteria which would apply to providing the incentive grant; and the administration of such incentives.
REGIONAL COUNCIL OPTIONS
The Canterbury Regional Council has, in preparing its consultative documents for preparation of a Draft Air Plan, identified the major sources of PM 10 1 that create the winter air pollution problem in this city. On a typical winter's night 90 per cent of this pollutant comes from solid fuel domestic heating. Of the domestic sources about 50 per cent of the PM10 comes from coal or wood burnt in open fireplaces, and a further 20 per cent from pre-1989 enclosed wood burners.
These sources are therefore to be considered as subject to possible controls through the Regional Council Draft Air Plan, which is currently proposed to be released in December 1997. The largest contribution to PM10 in Christchurch, on winter nights when inversions are likely to form and trap the pollution over the city, is from open fireplaces. They are relatively inefficient means of burning fuel with an efficiency of less than 20 per cent and hence the largest polluter on the basis of fuel used. Open fireplaces have never been approved for use in Clean Air Zones, and have not been able to be installed in new houses, in the previous Christchurch City since 1977, and in the majority of the urban residential areas of Heathcote County; Riccarton Borough; Paparua County; and Waimairi District since 1984.
The Regional Council has produced a number of options for control of the domestic sources of pollution in a consultative document. This is currently out for comment by members of the public with the closing date for these comments being the end of September.
A Seminar of Councillors was held to discuss these options and whether this Council should express a view to the Regional Council. The decisions of the Seminar will be reported to the September meeting of the Council through the Environmental Committee. The options that were supported by the Seminar are as follows.
THE CITY COUNCIL INCENTIVE SCHEME
It is proposed that the City Council's Incentive Scheme complement the regulations of the Canterbury Regional Council and encourage residents to move towards compliance with regional standards.
The Council's Incentive Scheme would be best targeted at households changing from polluting fuel burning appliances to lower pollution and more acceptable options.
The suggested policy is that the incentive be available to persons closing off or removing, open fireplaces (burning wood or coal). These sources together provide almost 50 per cent of the winter night PM10 emissions from domestic sources.
The incentive would be made available to householders who are prepared to close off or remove open fireplaces and replace them with either, a fixed thermostatically controlled electric heater; a flued gas heater; or an electric heat pump type heater. Consideration should also be given as to whether incentives should be available for replacement of open fires by flued diesel heaters or complying wood fired heaters.
It is not considered incentives should be provided for unflued gas heaters as these are not generally considered suitable for use in living areas in domestic premises. In all cases householders may be able to obtain funding from the Energy Saver Fund for other energy efficiency measures.
The high cost of administration of interest-free loans leads to the conclusion that the most efficient method of providing the incentive would be by way of grant.
It is recommended that the incentives be made available to any person who wishes to change as the reduction of any polluting sources will have public benefits. From the point of view of air pollution the cessation of use of any open fireplace will reduce emissions. It would be proposed that the Scheme would come into effect in February 1998.
The objectives for the incentive scheme have been discussed with the Energy Manager, Dr Leonid Itskovich, who has advised that it is intended an application will be made to the Government's Energy Saver Fund for finance to fund residential energy efficiency measures in Christchurch. These funds will be available for matters such as ceiling insulation, suspended floor insulation, cavity wall insulation, and weather stripping. Such funds are not available, however, for fuel substitution between conventional energy sources. The funds for this work would be additional to the City Council's proposed Incentive Scheme.
It is considered that both these funds could be administered together in order that citizens obtain the greatest energy efficiency advantages from the changes.
During discussion on the above report, Councillor Moore expressed his concern that Housing New Zealand had not introduced an energy efficiency programme for its Christchurch housing stock. The Committee endorsed Councillor Moore's suggestion that an approach should be made to Housing New Zealand with a view to encouraging the introduction of such a programme.
| Recommendation: |
|
| 3. | 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 appointment of a replacement director on the Board of Christchurch Transport Limited.
1. LYTTELTON PORT COMPANY LIMITED
(a) Annual Result
Lyttelton Port Company have announced their results for the year ended 30 June 1997. They have achieved a net profit after tax of $12.29 million which is an increase of 17.4% above the previous year's result. The company will pay fully imputed dividend for the year of 6 cents a share and this converts into a dividend payable to Christchurch City Holdings Limited of $3,997,904, which exceeds the Christchurch City Holdings Limited budget expectation by $133,904.
(b) Reappointment of Directors
The company have advised that at the October Annual General Meeting, Messrs Layton and Alpers will retire by rotation and have offered themselves for re-election for a further term. Christchurch City Holdings Limited have advised Lyttelton Port Company that it will support their re-election.
2. CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED
(a) Reappointment of Directors
CIAL have advised that Dr Morgan Fahey will retire by rotation at the Annual Meeting of the company in October and being eligible has offered himself for re-election. Christchurch City Holdings Limited have advised the company that it will support the reappointment of Dr Fahey for a period until the next local authority elections.
(b) Statement of Corporate Intent
Discussions have been proceeding with CIAL regarding their Statement of Corporate Intent for the current year in conjunction with the Crown who hold the balance of the shares in the company. There are still some issues which need clarification and it is hoped to present the Statement to the Council in October for confirmation.
3. CHRISTCHURCH TRANSPORT LIMITED
(a) Reappointment of Directors
The company have advised that at the October AGM Messrs Aigner and Waterfield will retire by rotation. Mr Waterfield has offered himself for re-election and CTL have been advised that this reappointment will be supported.
Mr Ainger has advised that he does not wish to be re-appointed and has been thanked for his period of service as Chairman of the Establishment Unit and as the first Chairman, and more recently as a Director.
The Chairman of CTL has advised that he believes the company is not large enough to warrant a board of six directors and would prefer to see the size of the board reduced. However, the Local Government Act requires that for every Councillor board director there must be two external directors and with two Councillor directors it is therefore necessary to make an appointment to maintain the statutory ratio. The Board of Christchurch City Holdings Limited wish to recommend to the Council that Mr Clive Peter, the Chief Executive of the company, be appointed to the vacancy. Mr Peters is held in high regard by the Board of CCHL and he meets the Council criteria for a director appointment. Since he is remunerated as Chief Executive, it will not be necessary to pay separate directors' fees for this appointment.
(b) Statement of Corporate Intent
Discussions are proceeding with CTL regarding their Statement of Corporate Intent for the current year. As there are still some issues to be resolved the matter will be reported in October.
4. CHRISTCHURCH CITY HOLDINGS LIMITED - INTERIM DIVIDEND
Christchurch City Holdings Limited has paid a second interim dividend to Christchurch City Council of $3 million for the year ended 30 June 1997. This brings the current total paid for the year to $8.6 million against an original budget of $7.47 million. It is hoped to pay a further final dividend on completion of the accounts for the year.
| Recommendation: |
|
| 4. | ORDERS FOR SUPPLIES EXCEEDING 50% OF DELEGATED AUTHORITY | RR 6082 |
A schedule listing the orders for supplies and works approved under delegated authority and exceeding 50% of that authority is tabled.
| Recommendation: | That the information be received. |
PART B - REPORTS FOR INFORMATION
| 5. | REVIEWING THE EFFECTIVENESS, EFFICIENCY AND ECONOMY OF THE COUNCIL'S OPERATIONS | RR 6121 |
The Director of Operations reported in response to the following resolution adopted by the Council at its meeting on 30 July 1997:
"That the effectiveness and efficiency of the Council operations be reviewed as an input to the 1998 Plan cycle.
The report outlined the measures which have already been taken to date to improve efficiency; the activities and processes currently being reviewed; the audit reviews completed over the past 12 months and the programme for the next 12 months; and the purchasing reviews recently completed or currently in progress.
Subject to the availability of resources a number of additional reviews will be undertaken during the course of the year from the following schedule. Details of the actual programme are still being refined.
| Unit | Area/Activity Under Review | Description of Processes to be Reviewed |
| Cross boundary | City Promotion | Multiple Service providers (Coms and Proms/CDC/EPPU?) |
| Corporate | Computer Equipment | Review value of ownership vs lease |
| Corporate | Computers | Re-allocation of equipment no longer required i.e. 386s, 486s surplus |
| Corporate | Document storage | Electronic Systems |
| Parks | Green Open Space Management | Management of areas i.e. Water Services/Road Reserve/Esplanade etc |
| Property | Housing Unit | Review of EPH, Rental Housing etc |
| Parks | Land Purchase Co-Ordination | Cross boundary needs for Walkways/Cycleways/Drainage etc |
| Property | Management of Property Assets | Core Business of Property Unit |
| EPP/ESU | Planning Hearings | Staff attendance at planning hearings |
| City Streets | Project Pamphlets | Co-ordination of production of pamphlets |
| Cross boundary | Recreation Programmes | Multiple Service providers (Coms and Proms/LACSU/Ser.Ctrs/External) |
| Cross boundary | Social Initiatives including new programmes | Multiple Service providers (Children's Adviser/Youth Adviser/Service Centres) |
| Corporate | Specific Professional Services | Service provider duplication |
| Parks | Strategic Open Space Planning | Ensuring all Units needs are meet in large scale redevelopment |
PROCEDURE
The Audit Sub-Committee currently receives reports on the internal audit programme. It is proposed that the outcomes from the effectiveness and efficiency reviews be also reported to the Audit Sub-Committee. Any outcomes that relate to the Council's service delivery standards may then be referred onto the standing committee. Elected members would then be able to review the service levels against desired outcomes and policies. Consideration could then be given to any changes that may be required in the service delivery standards of the Council.
The Committee referred the report to all Standing Committees with the request that at their forthcoming annual monitoring meetings they consider how they may best be able to participate in the efficiency and effectiveness reviews.
The Committee decided that members of the Strategy and Resources Committee be invited to future meetings of the Audit Sub-Committee when reports on efficiency reviews are being presented.
| 6. | ENERGY SAVINGS | RR 6094 |
The Inventory Manager submitted the 1996/97 Annual Report on energy costs and cost savings arising from the Council's Energy Management programmes.
The report disclosed that in 1997/98 the energy cost savings increased from $1,057,000 per annum to $1,585,000 per annum resulting in cumulative savings in excess of $3M over the last three years.
The initiatives which contributed to the reduction in energy consumption and/or costs identified as being:
Implementation of Energy Efficiency Projects and Energy Efficiency Measures;
Electricity tariff management;
Energy efficiency in new projects;
More efficient operating practices;
Implementation of the water conservation programme;
Increased awareness of opportunities for saving energy across the Council, staff willingness and active participation in the implementation of energy management programmes.
The Committee resolved that the staff be thanked for their efforts in achieving the above efficiencies.
| 7. | THE CCC PLAN : 1998 EDITION | RR 6092 |
The Committee received the report of the Financial Planning Manager which contained the timetable for the 1998 Plan process. In terms of the No. 3 Amendment to the Local Government Act, the 1998 Plan is required to be adopted by 1 July 1998. This has meant that the latter half of the timetable has had to be compressed in order to meet the 1 July deadline.
PART C - REPORT ON DELEGATED DECISIONS TAKEN BY THE COMMITTEE
| 8. | METROPOLITAN GRANTS COMMITTEE EVENTS SEEDING GRANTS | RR 3623 |
The Metropolitan Grants Committee reported, outlining the decisions taken at its meeting on 11 August 1997.
The Committee resolved:
1. That the information be received.
2. That Creative New Zealand be urged to support the Artist in Residence scheme in future years.
| 9. | CORPORATE PLAN 1996/97 - MONITORING REPORTS |
The Committee received the annual reports for the units/activities which it monitors.
In the course of reviewing activities, the Committee requested that the following information be included in future reports:
The Committee resolved:
| 10. | RESOLUTION TO EXCLUDE THE PUBLIC |
The Committee resolved that the draft resolution to exclude the public set out on page 24 of the agenda be adopted.
CONSIDERED THIS 24TH DAY OF SEPTEMBER 1997
MAYOR