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Christchurch City Council



AT 4.00 PM


Committee: Councillor David Close (Chairman), The Mayor, Ms Vicki Buck, Councillors Oscar Alpers, Carole Evans, Gordon Freeman, Pat Harrow, Ian Howell, Alister James, Garry Moore, Margaret Murray, Denis O'Rourke and Ron Wright.


Principal Adviser Committee Secretary
Mike Richardson Julie Sadler
Telephone: 371-1553 Telephone: 371-1438
Fax: 371-1811 Fax: 371-1786

Note: A 15 minute meal break will be taken at 6.00 pm, when a light snack will be available in the Councillors' Lounge.






Mr Anthony Wright, Director, Canterbury Museum, will present the Canterbury Museum's draft Annual Plan and Budget for 1998-99.



Officer responsible Author
Director of Finance Richard Simmonds
Corporate Plan Output: Corporate Expenses and Revenues

The purpose of this report is to consider a request for a Levy increase from Canterbury Museum. The Museum has recently forwarded its draft Annual Plan and Budget, together with calculations for the 1998/99 levy. The draft plan has been separately circulated to Councillors. The basic levy has increased by 5% "to contribute to further public gallery re-development".

The museum budget is a mixture of projects and routine operating costs. The table included at the back of the plan projecting budgets for future years shows an attempt to smooth the impact of capital expenditure and debt servicing by the use of reserves, loan and grants (where available). Revenues have increased by 13.6% over 1997/98 and total expenditure has only increased by 1.2% but a reduction in the funding from external sources for projects has necessitated an increase in local authority funding by 3.4%. The levy (excluding ex gratia payments) has increased by 4.7%. Last year the Museum received $600,000 from other sources, whereas this year the only non-local authority or loan funding budgeted is $200,000 from Lotto for a new computer system.

The Museum is continuing to develop its exhibition space and funding approximately half its projects by way of loan. Development projects this year are down by 12% to $1.45 million but are projected to continue in future years at approximately $1.64 million per annum. The increased debt servicing is adding to operating costs as a result of earlier decisions to use this form of finance.

The levy payable by Christchurch City Council, including the ex gratia payment agreed to last year, amounts to $2,359,719 (this will change slightly when updated population figures are received), an increase of 3.4% from the previous year. There is no increase in the two ex gratia payments.

This amount payable by Christchurch City Council is analysed as follows:

Request for
Levy due under S.15 of the Canterbury Museum Trust Board Act +4.7% 1,723,977 1,646,067
Ex gratia loan funding by all contributing authorities Nil 160,880 160,880
Ex gratia funding by Christchurch City Council alone Nil 474,862 474,862
Total payable by CCC (representing 92.4% of the total) +3.4% 2,359,719 2,281,809

The Canterbury Museum Trust Board Act provides a period of six weeks for submissions if there is disagreement with the plan. Technically this period expired on 30 January 1998.

At the request of the Selwyn District Council, this Council convened a meeting of contributing authorities in December 1997 to discuss Museum funding issues. The minutes of that meeting are attached.

Recommendation: That the Committee give consideration to the inclusion of the above amount in the Council's draft budget for 1998/99.
Chairman's Recommendation: That the above recommendation be adopted.




Officer responsible Author
City Manager Vicki Buck and Mike Richardson
Corporate Plan Output: Children's Advocacy

Together with Councillor Close and Kerry Marshall, President of Local Government New Zealand, we attended a Bertelsmann Network Symposium in Farum Denmark last September. At the Symposium the work undertaken in the Network during the previous 12 months was presented and discussed. The English language versions of this work are being published progressively.

In a workshop following the Symposium the proposal of the Bertelsmann Foundation to widen the scope of future work so as to include elected members and issues of particular interest to elected members was widely supported. As a result of this it is intended that the next cycle of work undertaken in the Network (which will run for either 2 or 3 years) will focus on three community issues. In each of these areas a case bank of innovative ideas and successful projects will be developed with both contributions to the case bank and taking up ideas from it encouraged throughout the local government industry. As a separate exercise, work will continue within the Network on identifying the general lessons which can be learned from such successful projects.

The vision, therefore, is for the 11 Network cities to form the core for the next project cycle, but for many other cities and organisations such as Local Government New Zealand to be increasingly drawn into active participation. The Bertelsmann Foundation has undertaken to continue to finance the Network for three years.

It was agreed in Farum that the three community issues on which work would be focused would be: Children and Youth issues, senior citizen issues and employment issues. The following is an extract from the Bertelsmann Foundation's summary of the outcome from the workshop held in Farum:


The main issue of the next cycle of work, it was agreed in the conference in Farum, is moving from internal to more external focus.

Local government, as the democratically elected local body, is in a unique position to foster democracy, social cohesion and the delivery of high quality services. Not necessarily delivering the services itself, the local authority plays a central role in guaranteeing the services and bringing the local partners together.

This means building the services, steering systems and working methods more from a demand point of view, listening to and involving the citizens and the community at large in developing the vitality of the region and the quality of services.

We agreed that this calls for new competencies in strategic management. We called it "smart networking" to emphasise the need for sustainable and long-term partnerships and results. This is a challenge not only for the public, but also the private sector. Both have a lot to learn from each other and we must be open to best practices wherever they are encountered.

So in the next cycle of work our main objective is to move from internal to more external focus by developing new competencies in strategic management and engaging the social partners and the community in a better co-learning and joint value creation process.


Describing the challenges of cities in the global competition, Borja and Castells, two internationally respected urbanists, state the following: "In the long run, the most competitive cities in international terms are those offering the best quality of life to their inhabitants."[1]

On this basis and with this general aim we want to find a natural, interesting and challenging entry point for each city in the next cycle of work.

In the discussions in the Farum conference it was initially agreed that this could be done by identifying challenging and topical issues, within which we could develop and explore strategic management and the co-operation between politicians, administration and the community at large. We would utilise to a maximum amount the work already ongoing and done in the topic areas in the cities and use to a maximum amount also the experience of others.

The suggestion is that the cities would subscribe into one of the three main topics and engage in joint problem solving in the next work cycle towards the Third Conference in Tilburg 1999. The details of the projects in the respective themes will be worked out by the participating cities with the help of co-ordinating and lead city effort.

Initially the three main topics were identified and now we ask each and every city to subscribe and commit to one of these. There is nothing to stop a city in participating and contributing in the other two themes - it is up to their resources - but we are asking for a definite primary commitment.


Problem statement: Children and youth are our future. But our cities can have dangerous and unattractive places for children. There is a decline in participation in public affairs especially among youth. We need to look at our cities with the eyes of children and youth and ask ourselves: is this a good place to live and grow in? Are we listening to the - often weak- signals from them? Are we tapping into their creativity and vitality? The children and young are not only a challenge or a problem, they are a vital resource and it is our job to create ways of harnessing it, of finding ways for communication and participation.

Cities interested in this topic could each have their own focus and angle on children and youth. With the help of a co-ordinating lead city, the cities would form a cluster to exchange experiences and engage in joint problem solving from the viewpoint of strategic management. The cluster can also include other cities outside the core network.

Lead city to co-ordinate the cluster: The city of Christchurch has initially expressed willingness to act as a lead city in this cluster.


Problem statement: Many cities are faced with problems of unemployment, public safety and social exclusion. In dealing with this employment, economic development and competitiveness are the engines of wealth. We must mobilise all partners in an effort to vitalise the city, to create jobs and opportunities, to fight unemployment, poverty and social exclusion. We must open our doors and minds for participation, joint effort and joint value creation between the council, private partners and the community at large.

Cities interested in this topic could each have their own focus and angle on employment, combating unemployment and social exclusion and developing competitiveness. With the help of a co-ordinating lead city, the cities would form a cluster to exchange experiences and engage in joint problem solving from the viewpoint of strategic management. The cluster can also include other cities outside the core network.

Lead city: The city of Phoenix has initially expressed willingness to act as a lead city in this cluster.


Problem statement: Most of the cities are faced with a strongly ageing demographic structure and hugely rising costs in elderly and health care. Just like a good measure for the humanness of the city is how it treats children, is how it treats the senior citizens and elderly. The senior citizens are not only a problem, they are a vital and experienced resource, who can also help us in bettering the quality of life of those, who need more care and nursing. They can also help us develop our local culture, vitality and services, and give us new ideas. We must look at our city with the eyes of the senior citizen and elderly - what can be done to make this an attractive and safe place for them?

Cities interested in this topic could each have their own focus and angle on senior citizens and elderly care. With the help of a co-ordinating lead city, the cities would form a cluster to exchange experiences and engage in joint problem solving from the viewpoint of strategic management. The cluster can also include other cities outside the core network.

The city of Hämeenlinna, Finland, has initially expressed willingness to act as a lead city in this cluster.


Commitment of the Council to one of the Themes

We need clear commitment and development in the co-operation of politics and administration. This is why we ask you to discuss this plan for the next cycle of work in your council and in your administration and subscribe to a theme of your primary interest:

  1. Children/Youth
  2. Employment
  3. Senior Citizens

by the end of January 1998. You are free to participate also in the other themes according to your possibilities.

On the basis of the commitments the co-ordinating team and the lead cities will form the working clusters.

Participation and Networking

We need good co-operation with the citizens and other partners. We need the maximum participation of our focus groups, children, unemployed, the elderly, the community. We also need to broaden the base of the cities in the network effort. This is why we ask the city to commit to a participate, open, networking way of operating both in terms of their own citizens, administration and elected members, extra expertise and national and international contacts to other cities.

Willingness to Learn and Implement

Nobody has ready made solutions to the problems at hand. We must be open to new ideas and best practices and must make an effort to implement them in practice. This is why we ask the city to commit to a learning attitude, willingness to experiment, develop and try out new ideas and methods.

Continuity of Effort

Problem solving, especially in an international context on challenging issues, calls for continuity in the commitment. This is why we ask the cities to guarantee a continuity in the project personnel and effort and to guarantee a necessary amount of documentation and evaluation. We ask the city to name a contact person and designate a task force in the response to this invitation.


Clearly, the network stays alive only as long as it is an interesting learning experience, as long as it adds value to the practical problem of the cities.

The next work cycle can do this by offering a unique opportunity to learn through joint problem solving on how to handle challenging issues. Issues we have to face anyway. This is not extra work, this is better problem solving.

The network will offer a unique opportunity to tap into the expertise of some of the leading international specialists in the field.

The network offers co-ordinating and facilitating help through a team made up of lead city representatives, experts, consultants and Bertelsmann experts.

The network offers, with the help of the Bertelsmann Foundation, a vehicle for international visibility, a possibility for the cities to promote their reputation as a dynamic city .

The Bertelsmann Foundation offers to support the effort with seed money and practical assistance.


Commitment of the Council to one of the Themes


We ask the cities to give a statement of commitment, quoting a council decision and other appropriate statements, by the end of January 1998 to: The Bertelsmann Foundation xxx."

The Bertelsmann Foundation regards it as important to secure formal Council resolutions for involvement in this next cycle of work. The Foundation sees that the "champion" of the work orientated towards community issues should be the elected members of the Council rather than the staff organisation and while it is recognised that the electoral process may not permit continuity of contribution from specific individuals over a two or three year period, the Foundation is anxious to ensure that the Councils remain committed to the process. (Part of the background to this has been the failure of one of the Councils during the last cycle to deliver on some key inputs which it had undertaken to provide to a project.)

In practical terms the project on Children and Youth would likely shape up as follows:

Christchurch City Council would establish a World Wide Web site (see attachment 1 for first draft). This would provide a promotional vehicle and "post box" for assembling cases. Using our own networks (particularly those of our Children's Advocate) and those of Local Government New Zealand we would establish a "regional" cluster of people enthusiastic to participate in the project and to submit cases and experience. (In this context, the "region" includes Australia and US.)

A workshop would probably be held in Christchurch during August 1998 to which contributors to the case bank would be invited. Also invited would be one or two children's "experts" who would be contracted to work on the Children's Project throughout its duration, and a Dutch based consultant who is a member of the Network and has been assigned by the Bertelsmann Foundation to help coordinate the transfer of learning between an English language based cluster assumed to be in Christchurch and parallel clusters likely to be based in Denmark and Holland.

The most interesting cases and projects from the Christchurch cluster would be taken to a workshop, likely to be in September or October, where these cases could be set alongside similar ones from Denmark and Holland. At this stage, it might also be possible to learn from the progress made on the other two issues. As a result of the discussions at this international workshop agreement would be reached as to what types of ideas and examples to look at in more depth. If possible, it is hoped that each Council would also consider for implementation some of the ideas gathered through the process. In terms of the community issues, therefore, the second part of the cycle, during 1999, would focus on implementation of projects.

The Bertelsmann Foundation has a budget of almost $2M for this cycle of work. The exact shape of the projects and the way in which this money will be allocated will be progressed by the Network during March. We can be confident that the Network would fund all costs associated with travel and accommodation in attending meetings and a symposium. It is our intention to also seek recovery of Christchurch's costs associated with establishing and administering a "cluster" and case bank. The Bertelsmann Foundation has indicated its enthusiasm for funding two "experts" who would probably visit Christchurch at least once, if not twice, during the cycle. It must be recognised, however, that a certain amount of elected member and staff time will need to be put into the project.

The philosophy underlying this cycle of work is for each Council to chose an issue on which it will be working in any event and to provide it with opportunities for ideas and learning which would otherwise not be available. Support to the project at a management level would be provided by the Director of Policy and the Children's Advocate.

  1. That the Christchurch City Council thank the Bertelsmann Foundation for its ongoing support of Local Government and confirms its desire to be involved as a lead city for the theme of "Children and Youth".

  2. That the Christchurch City Council confirm its commitment to participate in the network, and to provide continuity of effort throughout this cycle of work.

  3. That elected member input (including elected member travel - provided at no cost to Council) be provided by the Mayor with the Chair of Community Services as an alternate.
Chairman's Recommendation: That the above recommendation be adopted.



Officer responsible Author
Director of Policy Jonathan Fletcher
Corporate Plan Output: Pools

The purpose of this report is to enable the Council to determine how it wishes to manage the new Centennial and Pioneer Pool Complexes.


The Mission Statement of the Council's Recreation and Sports Policy is "the Christchurch City Council is committed to making a significant sustainable contribution to the quality of life of its residents, particularly its children and youth, by supporting a broad range of recreation and sports services, facilities and programmes". The Recreation and Sports Policy goes on to state: (i) that Council is committed to providing services, facilities and programmes where there is a proven need and no other provider exists; and (ii) it is also committed to ensuring that access to recreation facilities is available to disadvantaged groups and that "children, youth, people with disabilities and people on limited incomes" have access to and are increasing their participation in a broad range of recreation and sporting activities.

The Council has undertaken the building of the Pioneer and Centennial swimming complexes in pursuit of this policy. I interpret this as meaning that the pools will be successful if, cost effectively, their operation results in more people using swimming pools more often and, in particular, if people who are currently not regular swimmers or participators in other active physical recreation use the facilities frequently and enjoy them.


As a result of the joint Parks and Recreation and Strategy and Resources Committee seminar held in November last year there was agreement that there are three clear alternatives for the management of the pools. These three options are

(i) Seek requests for proposals for the management of Centennial Pool.

This option involves seeking bids from private sector operators and an in-house bid for the operation and management of the Centennial Pool complex in its entirety, while providing for the Pioneer Pool complex to be operated in-house.

(ii) Manage both Pioneer and Centennial Pool in-house. This option would provide for the overall management, marketing and operation of both new pools to be brought under the wing of the Council's pool operating team alongside QEII and the outdoor pools. Where appropriate, elements of the operation could be tendered out (for example the cafeteria, the solarium, the gym).

(iii) 'The Town Hall Board' Model. This option involves establishment of a special committee comprising both elected members, and non-elected members with expert knowledge of finance, administration and marketing, to complement the in-house staff skilled in the operation of swimming pools. The special committee would be responsible to the Council via the Parks and Recreation Committee for the achievement of agreed financial and social targets. The staff team responsible for swimming pools would report to the special committee in the same way that the teams responsible for other outputs report to standing committees.

Seminar participants did not support contracting out the operation of the Pioneer pool primarily because this pool is a local community facility that is an integral part of the Pioneer recreational complex. It was viewed as impractical, and of no benefit to the Council, to either contract out the operation of the pools without the rest of the complex, or to contract out the operation of the entire Pioneer recreational complex.

At the seminar I was asked to arrange for a "straw poll" of all Councillors on their preferences from these options. The result of this poll is that of the nine responses I received five favoured the option of managing both Pioneer and Centennial in-house, three favoured seeking requests for proposals for the management of Centennial Pool; and one favoured moving to the Town Hall Board model.

Comparison of In-house and Contract Management

  In-House Contract Management
(Yellow Hat)
  • Efficiencies from the Council being able to integrate its operation of Centennial Pool with its other pool operations, e.g. share staff expertise

  • Comprehensive marketing and promotion of the pools

  • Eliminates the costs associated with third party involvement

  • Greater flexibility to achieve Council's wider outcomes
  • Minimised and known cost of operation to the Council.

  • Managers bring with them the expertise of their organisation.

  • Ownership retained by the Council but not the operating responsibility (unless LACSU wins the contract)

  • Managers of the pool operation have strong motivation to make it financially successful

  • Possibility of additional input of capital by the operator
(Black Hat)
  • Fewer financial incentives for staff to optimise performance

  • Budget limitations

  • Indistinct boundaries between roles
  • Conflict of interest between the operator and the Council

  • Costs of the management fee and the management contract

  • Difficulty of setting enforceable performance criteria

  • Less adaptable to changing circumstances - locked into long term arrangements

  • Possibility of a contractor failing

  • Limited accountability for public relations.
Overcoming the disadvantages
(Green Hat)
  • Both the new collective employment contract and the option of individual employment contracts enable performance incentives to be provided for staff

  • The separation of asset management and operational responsibilities should minimise the risks associated with budget limitations

  • Careful specification and monitoring of performance standards will enable assessment of operational performance
  • A carefully drawn up contract and a thorough selection procedure can reduce most of these disadvantages.

  • The costs of the process, its administration and the management fee have to be weighed against the benefits of contract management.

The strengths of the 'Town Hall Board' model are: it provides for a single purpose special committee including non-elected experts to be responsible for achieving the targets set for the Council-operated pools; and at Council Committee level it separates standards setting and performance monitoring (the Parks and Recreation Committee) from operational responsibility (the swimming pool special committee). The contrary view to this is that the Council through the Parks and Recreation Committee is responsible for setting and monitoring performance standards and that the staff responsible for managing and operating the pools should report directly to the Parks and Recreation Standing Committee not via an intermediary special committee. Where specialist financial, administration or marketing expertise is required then the manager responsible for the pools should obtain it.


There is no "right" management option for ensuring that the swimming pools are a success. As was discussed at the seminar the survey of practice undertaken as part of the study into the options for managing and marketing Christchurch City Council's swimming pools was inconclusive. Slightly more of the comparable facilities were operated in-house than were leased, and the subsidies per patron for the leased facilities were on average slightly lower than the subsidies for the in-house operation. Perhaps the best assessment of the results is to say that they support the, rather obvious, conclusion that it is the quality of the management, marketing and operation that is important, and that either good in-house or good contract management arrangements will work.

Whichever option is chosen, in order to ensure clear lines of accountability for the setting and achieving of swimming pool performance targets, within the Council organisation the role of advising on policy and commissioning should be clearly separated from the role of swimming pool operation. To achieve this there should be:

  1. established a swimming pool team responsible for the management, marketing and operation of all Council-operated pools;

  2. a team separate from this operational team which, among other things, advises the Council on service and performance standards;

  3. prepared a clear, detailed statement of output and performance indicators for Centennial Pool and for the Pioneer and QEII complexes. This statement to include both financial and community expectations. (A similar statement would be prepared for Jellie Park when its current lease expires.)

The quality of the swimming facility has an enormous impact on levels of use, with patronage tending to decline as facilities age and date. The Council therefore needs to ensure that its asset management programme and funding is sufficient to ensure ongoing high quality facilities and to provide for enhancements where appropriate.

Seeking requests for proposals for the operation of Centennial Pool, carries with it costs over and above those resulting from moving to in-house operation. Costs include the legal and other work involved with the drawing up of the contracted bid documents, the setting out in a legally accepted form the performance measures to be applied to the contract, and the costs of evaluating and deciding on the proposals received. There are also the costs associated with preparing an in-house bid. Estimating these costs at this stage is difficult but a very approximate estimate is that they could be of the order of $50,000 - $60,000.

It is confidently expected that the two new swimming pool complexes will generate sufficient revenue to provide a small operating surplus. However they will not cover their capital and depreciation costs. In terms of the total cost of owning and operating the swimming pools the Council is faced with a balance between the level of cost recovered from user charges and the extent of ratepayer subsidy. In order to minimise the ratepayer subsidy and achieve the Council's recreation objectives, the Council needs a well motivated operator dedicated to finding creative ways to maximise customer numbers and the use made of the facilities.

Evidence from the survey of other facilities is that all had a mix of wet and dry activities (e.g. gym, weights and circuits, solarium, aerobics, cafeteria and shop) and that the dry activities significantly improved the financial viability of the complex. This enhancement comes from both the profitable financial returns of the dry activities and from the way they complement the "wet" facilities to improve the total recreation experience of users of the complex. It is essential that these dry facilities are managed in a way that ensures that they provide a good financial return to the complex as a whole. Under in-house operation some of these facilities could be contracted out. All such contracts should ensure that the Council gets a good financial return.

The Centennial Pool complex when it opens will be a new, up to the minute, swimming facility in the central city and therefore easily accessible to many people. It may therefore be considered as the "jewel in the crown" of the Council's sizeable investment in swimming facilities for Christchurch residents. A consideration in deciding whether to seek requests for proposals for this pool complex is whether the Council is comfortable with operating most of its swimming pools itself but having others operating its prestige central city facility on its behalf.


The main advantages of contracting out the Centennial Pool operation are: that it enables the Council to know in advance what its net cost of owning the pool will be; and that contracting out is likely to provide for financially motivated and dedicated management of the facility.

The main advantages of in-house operation are: the internal synergies that result from having a very significant swimming pool operation and management business within the Council; an ability to comprehensively and integrally market the swimming pools across the city; and the greater flexibility that in-house operation gives to the "fine tuning" of swimming activities in order to best achieve Council's wider outcomes.

Recommendation: That the Council:
  1. Operate both the Centennial and Pioneer Swimming Pool complexes in-house.

  2. Undertake a review of the performance of the Centennial and Pioneer pool complexes after their first three years of operation.

  3. Ask the Parks and Recreation Committee to oversee the preparation for Council approval of a clear, detailed statement of output and performance indicators for Centennial Pool and for the Pioneer and QEII Complexes. This statement to include both financial and community expectations and be ready for the assessment of the performance of the complexes during the first full year of the two new facilities (that is the 1999 financial year).
Chairman's Recommendation: That the above recommendation be adopted.



Officer responsible Authors
Major Projects Co-ordinator Albert Louman, Tony Preston, Alex Davis
Corporate Plan Output: Corporate Plan, Volume 2, Capital Output 8.3.0

The purpose of this report is threefold:


(a) Background

In the 1994/95 Annual Plan, the Council acknowledged that capacity and facility limitations of the Robert McDougall Art Gallery, which has served the city for the last 62 years were significant and included the Art Gallery in its major enhancement programme. It was recognised that in order to fully utilise the Gallery's collection and staff resources to contribute more effectively to the cultural life of the city, there was a need to establish larger facilities on a new Art Gallery site.

The new site was acquired in 1996 by the remarkable generosity and foresight of Trust Bank Canterbury Community Trust, which committed $3.8 million to meet the shortfall between Council funds available and the purchase price.

It is also pertinent to make reference to the number of Gallery visits. The Gallery visitor totals are excellent compared with comparable New Zealand and overseas institutions. A decade ago it attracted approximately 80,000 visitors per year - last year it peaked at over 250,000. The record is all the more impressive when the inadequacy of the present facilities is considered.

These visitor numbers should be compared against 190,000 for the Heritage Art Gallery and 35,000 for the new Art Gallery, both in Auckland.

A conservative estimate of 400,000 visitors per annum is forecast for the new Christchurch Art Gallery in its much better location, with improved facilities and enhanced programmes.

During its 1997/98 Annual Plan deliberations, the Council advanced the project by making $300,000 available for the development of a Functional Design Brief and Delivery Options Report. In May 1997 the Council approved the engagement of the Carson Group to manage the development of the Brief and most importantly to confirm the budget provision now included in the Draft Council Plan for 1998/99.

The brief development phase is now concluded with the presentation of the Functional Design Brief and the Delivery Options Report.

(b) Outline of Accompanying Reports

The brief development phase has provided the following deliverables which are separately circulated with this agenda.

Functional Design Brief:

This document contains all the information necessary to prepare a concept design. All museological, architectural and technical requirements are correctly identified. It further contains the budget.

Delivery Options Report:

This report defines how the project will be delivered following adoption of the Functional Design Brief. It also contains the timetable for the project.

It considers options for the method of selection of the consultants.

It also considers options as to how the project will be contracted out.

The report includes a recommended method for delivering the project based on the identified options and requires the Council's adoption before proceeding with the development of a concept design.

(c) Approvals to Date

The Council at its meeting held on 28 May 1997 adopted the following recommendation:

(d) Aims and Objectives

The aims and objectives for the new Christchurch Art Gallery are outlined in the Functional Design Brief. Section 2.3 on pages 11-12 refers. Subsection 2.3.2 (objectives) was reviewed and adopted by the Art Gallery (Terms of Reference) Sub-Committee on 25 September 1997.

The aims and objectives should be kept in mind when preparing the concept design for the project.


(a) General

The Functional Design Report has been prepared to enable concept design to commence and to establish parameters for further development to the end of the design documentation phase of the project. The parameters include budget constraints, time programmes, services required as well as functional, technical and other requirements.

The presentation of the Functional Design Report concludes the brief development phase. This phase is the most critical in the planning and construction of any major project as the scope and requirements of the project are defined and costs and timelines are determined. Any errors or oversights in this part of the process will affect the project. Possible results of an inadequate brief development phase include cost overruns, construction delays and a completed facility which does not meet users' needs.

Audit New Zealand reviewed the project management processes employed for the Christchurch Art Gallery in December 1997 and reported:

"We are pleased to report that, to this point, the Art Gallery project has been managed well with a professional and comprehensive approach being adopted. In particular, sound accountability and reporting mechanisms have been established. Considerable effort is being made to define the scope of the project, and related risks, in order to identify and minimise any future problems encountered."

(b) Consultation

The development of the Functional Design Brief has involved extensive consultation with a wide range of groups and individuals. These include:

City Councillors:

A special subcommittee was formed to review and finalise the project objectives.

Gallery Management and Staff:

Nine brief development workshops were held with Gallery management and staff, as well as numerous individual meetings, to identify the functional needs of the Gallery, spatial demands and inter-relationships. Initial assessments suggested a building floor area of twice what could be accommodated within the Council established budget. Extensive work was undertaken to revalidate needs and priorities, resulting in a building size which is achievable within budget.

Council Officers:

Specialist input was received over a number of months from key Council officers including the Energy Manager, Children's Advocate, Environmental Policy and Planning Manager, Property Projects Manager, Property Manager, Parking Operations Manager, Transportation Planners, Sponsorship Co-ordinator, as well as the Major Projects Co-ordinator.

Friends of the Robert McDougall Art Gallery:

A workshop was held with the committee from the Friends. In addition the Secretary of the Friends group was co-opted onto the Project Control Group.

The General Public:

A draft brief document was prepared and made available to the general public as well as being mailed out to a wide range of special interest groups. This document outlined the broad directions for the new Gallery. It sought public input to the brief development.

In excess of 55 written responses were received commenting on the draft document, offering improvements and in every case supporting the project.

Submissions came from individuals, educational institutions, Iwi, artist groups, other public institutions and tourist focused organisations.

All submissions have been reviewed in detail, with the many proposals (often conflicting) thoroughly debated by the Project Team before inclusion or exclusion.

(c) Space, Functional, Architectural and Other Technical Requirements

The space and functional requirements are covered by Appendices iii to v included in the Functional Design Brief. Architectural and other technical requirements are covered in the body of the brief. Sections 5-12 refer.

(d) Children and Young People

In the preparation of the Functional Design Brief, particular attention has been made to providing a Gallery that will embrace children and young people in an exciting and stimulating manner.

Attention is drawn to the diversity of programmes proposed for the Gallery as outlined in Section 3.0 of the Brief. Many of these programmes are developed exclusively with children, youth and families in mind.

Attention has also been given to the special needs of children and young families in the design requirements of the Brief. Refer in particular to Section 6.10 of the Brief.

(e) Authority Requirements

The building design will be assessed as a discretionary activity limited to consideration of external appearance in relation to Worcester Boulevard. It is likely to be non notified.

Consideration will be given to the integration of the Gallery complex and the surrounding streetscape. In particular attention will be given to the Worcester Boulevard which is identified in the City Plan as a major city visitor pedestrian attraction.

Excavation and discharge of groundwater requires authority approval.

Generally the budget provides to meet the requirements of the latest version of the New Zealand Building Code.


The next step after the adoption of the Functional Design Brief is the preparation of the Concept Design Report.

The Design Report is the first major deliverable of the Design Team following their appointment.

It will include options and recommendations for the building configuration including base floor plans, elevations, sections and perspectives.

It will include options and recommendations on structural, mechanical, electrical and other systems.

It will show how the new Gallery will look and will provide the graphical information that is vital to the commencement of a serious public fundraising campaign.

It will also provide confirmation that the project can be completed within the budget. In addition it will allow Gallery management to complete an assessment of the future Gallery operating expenses.

The Concept Design Report will require Council adoption before the designers will commence detailed planning and design and tender documentation preparation.


The site for the Christchurch Art Gallery currently provides public car parking for 265 vehicles. Development of this site for a new Art Gallery will require provision of parking for Gallery visitors and staff. In addition to this provision, the Council has requested an assessment of the need for replacement of the existing public parking which would be affected by the project.

A report is being prepared for presentation to the March round of Council committees on this issue. It will cover issues of the strategic transport situation for the area, a review of the Council's parking policies, the existing and future demands for parking in the area, comments from representatives of a number of local activities, an assessment of parking location options, and on-site options for the provision of parking.

The Council has commissioned Traffic Design Group, a nationally recognised traffic engineering consultant, to provide input to this report by way of a review of the current and future parking demands for the general area of the new Gallery site.

This study is taking into account existing Council parking policy, the impact of conservative forecasts for growth on the number of visitors arising from the new Gallery development, other public facilities in the area that are growing and placing increasing demands on limited parking (such as the Arts Centre and the Canterbury Museum), as well as the impact on parking supply resulting from the new Farmers and Hospital parking building projects.

Initial findings of this study include that the existing parking spaces on the Art Gallery site should be replaced underground on that site. The number of underground spaces is likely to be in the order of 265, but this has yet to finalised in the study.

Following very thorough geotechnical investigations of the site and review by a structural engineer, the Council's appointed quantity surveyor has confirmed that in the order of 265 spaces can be provided within the previous Council funding allocation of $6.5 million (in 1996 dollars).

It is likely that there will be a recommendation that the design concept for the Gallery should include provision for in the order of 265 underground parking spaces.


Considerable work has been undertaken by the project team to identify all the likely furniture, fixtures and equipment required for the gallery. This has entailed input from the gallery management, the Major Projects Co-ordinator, the architect and quantity surveyor. (The latter were engaged to assist with the preparation of the functional design brief only.)

The outcome of this work is included in the functional design brief and the project budget.


The Council has established a budget for the Gallery of $29.3 million plus $6.5 million for the replacement of the existing street level public car parking with underground parking on the site. These figures are in 1996 dollars and exclude land costs, GST and financing. There is provision in the Council Plan for inflation from 1996 to completion of the Project in 2003.

The following capital budget provisions (excluding provision for inflation) have been made in the draft 1998/99 Annual Plan allowing completion of the project by 30 June 2003.

  1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 Total
Budget Provision
$300,000 $840,000 $3,000,000 $11,700,000 $15,760,000 $4,200,000 $35,800,000

Considerable work has been undertaken to ensure that the Functional Design Brief is aligned with the project budget. The latter includes an appropriate level of contingency.

The Gallery of 8,900 square metres gross area, plus underground car parking for 250 cars can be achieved within the approved budget.


For the first time on a major project undertaken by the Christchurch City Council, a researched estimate of capital contributions has been undertaken at the planning stage. The resultant strategic fundraising plan can be woven into the project from the design stage onwards, capitalising on every facet of the project.

The total budgeted target has been raised. Careful assessment of every fundraising source clearly indicates that the revised target is realistically achievable.

Councillors' attention is drawn to the fact that public contention about a major project is likely to have an adverse impact on fundraising because successful fundraising depends on community and corporate support. Fundraising for Te Papa has been made particularly difficult in the light of adverse media comment.

(a) Current Budget Provisions

The current budget provisions as set out in the 1997/98 Annual Plan are as follows:

  1998/99 1999/00 2000/01 2001/02 2002/03 Total
Current Budget Provisions (1996$)

- Sponsorship
- MCK Richards Trust

Total Current Budget Provisions (1996$)






Note: the current budget provisions are in 1996$ terms.

(b) Proposed Budget Provisions

The proposed budget provisions are as follows:

  1998/99 1999/00 2000/01 2001/02 2002/03 Total
Proposed Budget
Provisions (1996$)

- Sponsorship
- MCK Richards Trust
- Fundraising Expenses

Total Proposed Budget Provisions (1996$)
(including provision for inflation)










  1. The MCK Richards Trust has been included in both the current and proposed budget provisions.

  2. The costs associated with raising the contributions had previously not been shown separately in the budget provisions. They are shown in the proposed budget provision as 'fundraising expenses'. The fundraising cost vs income ratio stands at 1:19 which is low by other museum standards. Te Papa operates a 1:16 ratio, while The National Gallery in London operates at between 1:7 and 1:10.

  3. The estimated income sources and assumptions will be considered by the Strategy and Resources Committee as part of its 1998 Council Plan deliberations.


In keeping with the Council approved project objective to 'provide quality revenue generating facilities that add to the exciting ambience of the Gallery, without compromising its primary function', a commercial study has been completed that confirms the financial viability of providing a permanent Gallery Gift Shop, Cafe, Licensed Brasserie and Print/Framing/Photo Shop.

There is also revenue to be gained from a range of secondary, short-term opportunities such as leasing out the foyer for functions, auditorium, workshops, kiosks and other retail opportunities.

All these opportunities will provide a forecast net annual revenue of over $250,000 to the Gallery from opening in the year 2003 onwards.

The space needed to accommodate these compatible and sustainable commercial opportunities has been included in the functional design brief and project budget.


A proposed development programme is included in the Delivery Options Report. It is based on a single main building contract, reflects a cashflow as provided for in the draft 1998/99 Annual Plan and shows a projected completion for a summer 2002/03 opening.


The selection of consultants forms the main thrust of the Delivery Options Report. This report discusses a number of options open to the Council for the procurement of professional design services. Consultants can be selected by any of the following means:

The report recommends the following:

Selection of a Project Manager:

Selection of Design and Cost Consultant:

Selection of the appropriate consultants is one of the most important decisions the Council makes. The success of any project often depends upon obtaining the most able, experienced and reputable consultant who can demonstrate that the firm can undertake this scale and type of project and has the availability within the firm of specific resources of proven ability and experience which can be utilised on the project.

The recommended selection process (a two stage process of pre selection followed by tenders from a selected shortlist) was successfully applied to the selection of consultants for the WestpacTrust Centre and received acclaim, even from the non successful bidders.

The recommended selection process includes the following steps:

Other most important skills by which to judge consultant's suitability to carry out the project are:


The Delivery Options Report prepared by Carson Group South Island Ltd includes a section on construction delivery which covers the type of contract and the payment method.

A normal procedure of choosing a contractor by inviting selected tenderers to submit bids based upon completed documentation is recommended. Thus the contract price, excluding post tender escalation and Contingency Sum expenditure, will be known to the Council before the building works are committed.


Following a recommendation by Audit New Zealand last year, an independent peer review has been undertaken on the Draft Functional Design Brief completed last November.

This peer review was completed by Ken Gorbey from the Museum of New Zealand. Mr Gorbey is a highly respected museum and gallery professional. While independent of the brief development team, he is familiar with Christchurch's need for the new Gallery as outlined in his report to Council in 1991.

The peer review identified the need for the brief to be further developed in the areas of proposed gallery programmes after opening and the commercial return opportunities.

These identified areas have been worked on by the Brief Development Team since November and have been incorporated in the reports circulated with this agenda.

  1. That the Council adopt the functional design brief.

  2. (a) That the Council approve to proceed with the preparation of the Design Report including concept design and, further

    (b) That, subject to the findings and recommendation of the final report by Traffic Design Group, in the order of 265 underground parking spaces be provided.

  3. That the Council approve the selection and engagement of an experienced project manager by receiving tenders from a selected shortlist. Initial engagement will be for the design development phase only.

  4. That following engagement of the project manager, the project manager assists the Major Projects Co-ordinator with the selection and engagement of experienced design consultants using the two-stage process of pre-selection followed by tenders from a selected shortlist. Initial engagement will be for the concept design development stage only.
Chairman's Recommendation: That the above recommendation be adopted.



Officer responsible Author
City Manager Alan Dunlop
Corporate Plan Output: Various

The purpose of this report is to update the Committee on progress with the amalgamation proposal.


The City Manager presented a report to the October 1997 meeting of the Council outlining how the Local Government Commission intended to carry out the review in terms of the Section 37ZZTb of the Local Government Act. There were two inputs requested of the Council at that stage. These were:

  1. In deciding to carry out the review the Commission also resolved to ask the Banks Peninsula District Council and the Christchurch City Council to jointly undertake an analysis of the likely financial impact of an amalgamation of the district and the city.

  2. Submissions on the review were originally requested by 19 December.

The Commission also indicated that it "would welcome discussion on what (we) consider the appropriate Terms of Reference for this (financial) analysis".

The Council adopted the following recommendations:

  1. 1. That the Christchurch City Council request the Local Government Commission to prepare a work plan which allows for the following:

    (a) Takes into account the Land Transport Pricing Review.

    (b) Provides adequate time for a thorough analysis of financial impacts and any other necessary work (bearing in mind the resources of the Banks Peninsula District Council and Christchurch City Council);

    (c) Provides a period of two months for public consultation after the completion of this work and prior to the closing date of submissions.

  2. That a new date for submissions be agreed with the Banks Peninsula District Council and Christchurch City Council in the light of the above.

It should be remembered that the findings from the review would not having any bearing on the next local authority elections.


We wrote to the Commission on 28 October 1997 advising them of the Council's recommendations.

We wrote again to the Commission on 8 December requesting a response to our letter of the 28 October. We also forwarded draft terms of reference requesting that the Commission finalises the document with Banks Peninsula.

On 4 December1997 (received on 8 December) the Commission responded to the Council's letter of 28 October advising.

We responded again to the Commission on 9 December on the review generally. We reiterated our earlier advice that, until further information was obtained, it is not likely the Council's position will change.

We advised that until the terms of reference are agreed upon the amount of work we can undertake is limited, particularly as it relates to service standards or service levels of key activities in a combined authority.

The Commission has advised (letter 27 January 1998) that they are seeking agreement from Banks Peninsula to the terms of reference and they will discuss the timetable further when they have responded.

In the meantime we have been gathering comparative information on the core activities of both Councils. This should will be completed by the end of February.

Discussions have been held with the Chief Executive of Banks Peninsula with regard to the timetable for the financial analysis. To meet the requirements of the various stages of the terms of reference, we will be asking the Commission to reschedule the completion date for the financial analysis until 31 July 1998.

This date is considered more appropriate taking into account the workload of both staff and elected members leading up to the approval of the Council's Annual Plan and Budget and associated documents in June.

The final report will be considered during the July round of meetings.

  1. That the information be received.

  2. That the Council request the Local Government Commission to amend the completion date for the Financial Analysis to 31 July 1998.
Chairman's Recommendation: That the above recommendation be adopted.




Officer responsible Author
Financial Policy and Systems Manager Bob Lineham and Geoff Barnes
Corporate Plan Output: Cash and Investment Management Volume I Page 5.2.text.3

The purpose of this report is to seek Council approval of two policies for the management of the Council's investments and debt.

The policies cover the Christchurch City Council and the Sinking Fund Commissioners. They do not cover Christchurch City Holdings Ltd which has its own policy.


The Local Government Amendment Act (No. 3) 1996, Section 122P and Section 122R introduced the requirement to have from 1 July 1998 policies to govern the management of the Council debt and investments. The Council is required to adopt policies and publish with the Annual Plan, an outline. Attached (Appendix 3) is a copy of relevant sections from the legislation.

In the main these requirements will not change the existing Council's practice. Since 1991, as a matter of prudential management, the Council has had an investment policy. Much of that policy is incorporated into the proposed policy.

Debt management for the Council has been prescribed by the Local Authorities Loans Board under previous legislation and the Financial Management Policy adopted by the Council in 1994 and published in past Annual Plans. All of the relevant features of the Financial Management Policy have been incorporated into these policy statements along with provisions of the new Act.


Advice has been sought from Buddle Findlay (Mark Russell) and Credit Agricole Indosuez (Mark Trigg) to help in the formulation of these policies. Their comments were focused on two issues, firstly, the policies and secondly, the implementation. In respect to implementation, the main issues are:

The management of debt and investments will be in the daily control of the Funds Manager. This role is currently being performed by Paul Melton, Funds and Planning Manager. The administration of the process is largely by the Funds Accountant. Reporting is weekly to the Director of Finance and in future quarterly reporting to the Strategy and Resources Committee is proposed. Property will be managed by the Property Manager. The Funds Manager will be assisted by a review team, membership to be appointed with the Director of Finance. This team will seek and act on independent financial investment advice.

The advice is consistent on the form of security the Council should offer for all debt issued in the future. Debt secured by a first charge on rates is recommended. This offers the best security to investors and therefore should reduce our interest rates as compared to those local authorities which offer mixed securities or only 'deemed' rates security. A consistent stand in the market with rate security should avoid confusion in the minds of finance industry investors.

There will be other administrative issues to be dealt with under later reports to the Council.


Attached (Appendices 1 and 2) are the policy statements.

The policies are based on the policies of the past adjusted for the requirements of the new Act and recommended revised practice.

Under the new legislation the Council may now enter into hedging contracts to manage the interest rate exposure. Hedging would be undertaken as part of a strategy based on professional advice. This procedure is part of the new policy. By way of note this practice has been in place for Christchurch City Holdings Ltd since 1993 and has been used on several occasions. The policy has been written to specifically exclude the use of synthetic instruments for speculative purposes.

The Financial Management Policy of the Council published in the Annual Plan 1997/98 has been incorporated into these policies. The credit rating is based in part on this and such policies will be maintained.

The policies come into force on 1 July 1998.


The Act requires that an outline of these policies be published in the Annual Plan. Once the Council approves the policy, outlines will be prepared for approval with the Annual Plan.


The new policies allow greater flexibility for debt and investment management in the future. Doing nothing with debt management is itself position taking and brings its own risks. No dramatic changes are envisioned. However the tools will be available. In the near future the Director of Finance and the Funds and Planning Manager will appoint a review team and adviser. That team will develop a strategy for management and will report to the Strategy and Resources Committee on a regular basis.

The opportunities bring risks. Because we are now permitted to enter into hedging arrangements, uncontrolled dealing could injure the Council in a fundamental way. The Council should ensure the risks are managed, the controls are monitored and the reporting is meaningful.


These two policies are part of the new set of policies introduced by the Act in 1996. The other policies are the Funding Policy and the Long Term Financial Strategy. All will be published in the Annual Plan 1998/99 and all will be inter-related in respect of assets, liabilities, services and funding.

  1. That the Borrowing Management and Investment Management Policies be adopted.

  2. That the outlines of the policies be prepared for publication in the 1998/99 Annual Plan.
Chairman's Recommendation: That the above recommendation be adopted.



Officer responsible Author
Director of Finance Richard Simmonds
Corporate Plan Output: Trading Activities

The purpose of this report is to consider issues arising from the petition presented to the Council in December by Councillor Graham Berry, expressing opposition to the recent 4.9% increase in Southpower electricity prices.


The wording of the petition is as follows:

"We the undersigned are opposed to the 4.9% increase in Southpower prices and demand that the Christchurch City Council instruct Southpower to reverse the latest unfair and unwarranted price increase."

The petition contained some 28,700 signatures. It was not considered practical or cost-effective to check the validity of these signatures in detail (e.g. by reference to the electoral roll).


This report concludes that, for the reasons stated, the Council should not instruct Southpower to reverse the latest price increase. The most appropriate way for the Council to exercise control over Southpower's general pricing policy is through negotiation of the annual Statement of Corporate Intent which is the established practice.


There are a number of issues that have to be considered in the context of the petition. A key question is whether the Council should, or indeed is legally able, to interfere directly with commercial pricing decisions taken by one of its trading entities. This is essentially a question of corporate governance, and is addressed below under the following headings:

  1. The shareholder's role in the context of the Companies Act;
  2. Deemed director provisions of the Companies Act;
  3. The responsibilities of the Southpower directors;
  4. The effectiveness of existing methods of control;
  5. The provisions of the current Statement of Corporate Intent;
  6. Other legal considerations;

Other relevant matters to consider include:

  1. Southpower's prices compared with other regions;
  2. The impact on the value of the Council's investment in Southpower if prices were set in accordance with the Council's social agenda rather than being based on commercial criteria.


1. The Council's Legal Position in the Context of the Companies Act

The Companies Act 1993, for the first time, gives shareholders specific powers. These cannot be altered by the company's constitution, although additional powers can be inserted (and have been in the case of Southpower with specific provisions relating to the statement of corporate intent and the power to appoint and remove the board). The non-removable powers under the 1993 Act are summarised as follows, together with the relevant section number:

There are also specific provisions in the Act regarding the rights of minority shareholders in certain circumstances, and some general powers able to be exercised with the unanimous assent of all shareholders, none of which are directly relevant to the subject of this report.

It is therefore clear that the Council, as a shareholder of Southpower, is not specifically empowered to participate directly in the management of the company's affairs. This role is imposed on the directors, as described in the next section.

The above conclusion is reinforced by the publication "Practical Guidelines for New Zealand Directors", endorsed by the Institute of Directors in New Zealand, which states:

"Normally the rights of ordinary shareholders would include the following:

Generally, the shareholders have no power to direct or manage the company".

Similarly, the Report of the Controller and Auditor-General on "Governance of Local Authority Trading Activities" (1994) states:

"The formation of trading activities as companies has implications for the role of the local authority as shareholder. Ultimate control remains with the shareholder, by virtue of its power to dismiss the board or wind up the company. The local authority has no power, however, to make decisions about the management of the company. Responsibility for determining business objectives and achieving those objectives rests with the board".

A legal opinion obtained last year from Buddle Findlay (24 September 1997), and circulated to the Councillors at the time, on this topic also supports the above conclusion (copy attached).

It would therefore seem that the only conclusion that can be drawn is that the Council would be acting outside its legal powers if it were to impose a specific requirement on Southpower to reverse its recent 4.9% price increase.

2. "Deemed director" Provisions of the Companies Act

Section 126(1)(a) of the Companies Act defines a director as a "person occupying the position of director of the company by whatever name called" and, for the purposes of the sections relating to a director's general responsibilities, "a person in accordance with whose directions or instructions a person referred to in paragraph (a) of this subsection may be required or is accustomed to act".

There is therefore a significant possibility that the Council would become a deemed director if it interfered directly with the commercial decisions of Southpower. This in turn would expose it to all the legal responsibilities placed upon directors, and would clearly be an undesirable outcome since the Council does not have a detailed working knowledge of the impact of commercial decisions on the viability and value of the company.

3. Responsibilities of the Southpower Directors

The Companies Act 1993 imposes general duties on directors. Section 128(1) states that:

"The business affairs of a company must be managed by, or under the direction or supervision of, the board of the company".

Section 131(1) states:

"Subject to this section, a director of a company, when exercising powers or performing duties, must act in good faith and in what the director believes to the best interests of the company."

It is clear from this, and the preceding discussion, that the prime responsibility for pricing decisions rests with the Southpower directors, who also have the duty to make such decisions in the best interests of the company.

If the Council were to impose pricing decisions upon the board, the Southpower directors could find themselves in an impossible position in attempting to discharge their duties. In an extreme case, as pointed out by Buddle Findlay, if price increases were needed in order for Southpower to remain solvent, the directors could be held personally liable for losses incurred, even though their hands were tied in respect of raising prices. Such a restriction on their powers to run the company along commercial lines greatly diminishes the chances of attracting directors of sufficient calibre to the Southpower board.

Buddle Findlay also point out in the same letter that, while it is not appropriate for shareholders to interfere directly in commercial pricing decisions, it is open for the Council as the main shareholder to request a general meeting for the purposes of seeking an explanation from the Southpower board as to the underlying justification for the recent price increases and advice to the shareholders on the board's general pricing policies.

4. Effectiveness of Existing Methods of Control

Currently, the main way in which the Council exercises influence over Southpower is through the annual process of negotiating and approving the Statement of Corporate Intent ("SCI"). Clause 12.1 of Southpower's constitution requires a draft SCI to be delivered to the shareholders within one month of balance date, and specifies the information to be included. The information requirements do not specifically include a forecast of the return on equity, a key measure of performance, but historically this measure has been provided and negotiated.

The significance of the Council's role in the process of finalising the SCI is emphasised by Clause 12.1(d), which states:

"Unless the Board determines that it would not be in the best interests of the Company to do so the Board shall amend the draft SCI in accordance with any reasonable recommendations made by Ordinary Resolution of shareholders and which relate to the future policies and direction of the company."

In addition to the SCI, the Council monitors Southpower on an ongoing basis through Christchurch City Holdings Limited ("CCHL"). This is an active process which, particularly in recent months, has involved a substantial commitment of time and resources on the part of CCHL. There has been, and continues to be, ongoing dialogue between the respective boards.

The question of a price increase was discussed at length with CCHL before being announced by Southpower. Ultimately the 4.9% increase was accepted by the Council on the grounds that it was not inconsistent with the SCI. This episode served to emphasise the importance of the SCI negotiation process, and the difficulty of becoming involved with the normal commercial operations of Southpower once this process is concluded.

In conclusion, one can state that the process for controlling Southpower's general strategy and direction is effective. However, the implications of the financial performance indicators contained in the SCI for the domestic consumer must be carefully scrutinised by the Council before approving the SCI, as it will be extremely difficult at a later stage to bring about pricing policies which are inconsistent with the SCI.

5. Provisions of the Current SCI

The Southpower SCI for the year ending 31 March 1998 does not specifically state the quantum of any particular price rise planned in the short to medium term. However, it does contain statements indicating the potential for such rises.

The following relevant statements have been extracted from the SCI on a selective basis to demonstrate this:

Under "Objectives of the Group" it states:

"Southpower operates as a successful business and will move to a level of earnings sufficient to support the growth of the company and provide shareholders with appropriate returns on their investment" .

Under "Pricing":

"It is existing agreed policy that because of the narrow margins in energy trading, retail prices will continue to be adjusted for increases in both the wholesale price of energy from generators and the price of transmission from Transpower".

"As the wholesale electricity market is still new, it is difficult to predict longer term pricing trends. However, Southpower believes that electricity prices, particularly winter prices, will continue to increase in the short to medium term."

"Southpower will move towards an appropriate rate of return on its network over the next three financial years. This will be first achieved for the financial year ended 31 March 2001, through a combination of operational efficiencies and moderate retail price increases."

Under "Financial Performance Targets":

"Southpower's financial performance targets for the parent company for the year ended 31 March 1998 are as follows:

Under "Key assumptions Used in the Financial Forecasts":

"retention of the South Island ECNZ wholesale price differential".

On the basis of the foregoing, it would be difficult to argue that the 4.9% increase was inconsistent with the SCI approved by the Council, particularly given that 2% of the rise was attributable to the removal of the South Island price differential.

6. Other Legal Considerations

Section 36(1) of the Energy Companies Act requires Southpower, as its principal objective, to operate as a successful business. This would appear to preclude a policy of pricing solely designed to meet the Council's social objectives, although one can envisage circumstances where a combination of commercial and social objectives would not cause this section to be breached.


1. Southpower's Prices in Relation to Other Regions

Examination of the statistics reveals that, by any measure, Southpower's prices compare favourably with the national average. Distortions can arise from the fact that Southpower has the lowest fixed charges in the country, which means that the variable element can appear higher than some companies prices, if quoted out of context. The low line charges incidentally, also have the effect of encouraging efficient use of power.

To overcome this, a fair comparison is to measure the total cost of an annual average residential power bill of 9000 kWh. To avoid any suggestion that rates are used to subsidise power bills, the two can be combined to show the total cost to an average ratepayer. Southpower have performed such an exercise, extracting their figures from independent sources, as follows:

City 9000 kWh residential power price1 Company 1997/98 average
residential rates
(inc. GST)

North Shore


Power NZ
Power NZ
United Elec.



Table extracted from Southpower documentation


1. Power prices - Deloittes
2. Rates - Valuation NZ

An independent analysis of the electricity industry by SBC Warburg towards the end of 1997 compared all of the country's energy companies in terms of their position in relation to the "regulatory attention curve". Again Southpower rated well, particularly compared with the larger companies, being well off the point where the relationship between the company's accounting rate of return, relative domestic tariff and the regulator's estimate of a reasonable return might give cause for suspicion of unfair pricing practices.

Some relevant comments concerning the pricing issue are also made in the attached legal opinion from Buddle Findlay.

It is noted that Southpower have publicly stated that there will be no further increases for the domestic consumer until 1999.

2. Impact of Pricing Policies on Southpower's Valuation

As a general rule, a company's value on a going concern basis is based on its future earnings potential. An ongoing low pricing policy resulting in sub-optimal returns will inevitably have the effect of reducing the value of the City's investment in Southpower, and may also prevent the company from making the necessary investments in its infrastructure.

It is not possible to quantify the extent of any such loss in value without performing a detailed valuation exercise, which is beyond the scope of this report. While it could be argued that, as there is no intention to sell Southpower, this is not a significant issue, a decision to reduce the value of a strategic asset for future generations is a significant one and needs to be debated fully. The Council would need to act very cautiously given their responsibility for the assets of the city.

An additional factor to consider is that the electricity industry is in a state of transition, with a compulsory split of the line and energy trading businesses very likely to take place. The imposition of a price cut would be an unwelcome distraction at a time when such far reaching changes in the industry are taking place.

Recommendation: That for the reasons set out above, the Council not attempt to reverse the recent 4.9% price increase imposed by Southpower.
The Chairman comments: The Council is conscious of the sincerity of the thousands of people who signed the petition. We recognise that any increase in basic living costs puts pressure on people on low incomes. We would like to assure the petitioners that the City Council, as the majority shareholder in Southpower, has always influenced Southpower's pricing policies, with the result that Southpower's charges to the average residential consumer have continued to be amongst the lowest in New Zealand. We are pleased that Southpower's fixed charge of 30c per day is the lowest in New Zealand as this discourages waste and is of benefit to the small consumer.

Southpower's prices for commercial customers are below the national average, and, in the case of small commercial consumers, almost 20% below the national average.

It would be improper for the City Council to set actual prices for electricity, but the Council will continue to work with Southpower to ensure that all consumers are treated fairly and that Southpower's charges remain amongst the lowest in the country.

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




Officer responsible Author
Director of Operations Graeme Nicholas (Internal Audit Manager)
Corporate Plan Output: Various

The purpose of this report is to update the Committee on progress on the reviews currently in progress and recently completed.


In adopting the Annual Plan, the Council resolved that the effectiveness and efficiency of Council operations be reviewed.

As reported in September 1997 these reviews have been an ongoing process within the Council although it has not been our practice to report any specific outcomes to elected members. This report outlines the major review projects that have been carried out over the past 12 months and the perceived benefits in terms of Effectiveness and Efficiency that have been achieved. Also outlined are reviews that are in progress and hence have not produced any certain results at this stage. Areas for review are constantly being added.

Most of these projects were listed in the September report. However, there have been some additions over this time.

Appendix A lists reviews completed but not necessarily implemented outlining the objectives of reviews as well as the outcomes in terms of changes in procedures, perceived benefits or estimated cost savings.

Appendix B lists projects currently in progress and the expected date of completion and what the objectives of the review are.

Both appendices contain only summarised information but most have or will be supported by more detailed reports.

Some reviews have been performed by small groups of individuals over the course of several days while others have involved considerable input over a period of some months. Major reviews of activities have generally been reported separately to the appropriate Standing Committees.

Recommendation: That this report be accepted.
The Chairman comments: It is pleasing to see that annual savings of about $1 million will be achieved after the necessary capital expenditure has been "paid off". The energy savings are especially pleasing, as they are additional to the large savings made in previous years. Significant savings are likely in the future from the Customer Services System implementation to complement the $300,000 saving achieved in the Suburban Service Delivery Review.
Chairman's Recommendation: That the information be received and the staff teams thanked for their efforts.



Officer responsible Author
Accounting Services Manager Ian Hay
Corporate Plan Output: Overview

The purpose of this report is to review the financial operations of the Council for the six months to 31 December 1997 and to update members on business unit surpluses and over expenditures to enable re-allocation of resources if required. The detailed financial information is attached.


(a) Corporate Expenses

Currently running close to budget overall. Grant expenditure is slightly behind at this stage but is expected to be close to budget at year end. The $453,000 relates to ACC payments and will be re-allocated to business units in proportion to liability.

(b) Corporate Revenues

Overall corporate revenue is close to budget with the year end projection expected to be achieved.

(c) Operational Expenditure

Overall expenditure on rate funded accounts at $65.7M is $4.4M ahead of budget for the six months to 31 December. The main items of over expenditure relate to:

(i) Corporate Administration - Currently running ahead of budget by $126,000. The over expenditure relates to the advance payment of the LGA subscription and telecom directory costs. There are also photocopying charges to be recovered from business units. It is expected the final result will be close to budget at year end.

(ii) Environmental Services - Expenditure is running ahead of budget by $380,000. There are a number of reasons including the accrual of staff holiday costs which will decline as leave is taken during December/January, revenue streams are down on last year due to a slow down in development, additional expenditure on the City Plan and employing Commissioners for Resource Consent hearings. Continual monitoring will ensure the bulk of expenditure is within budget at year end apart from the City Plan and Resources Consent hearings. A request for an additional $200,000 funding is included later in the report.

(iii) Economic Development - Expenditure is ahead of budget by $320,000. The year end budget is expected to be achieved as the Community Trust grant of $500,000 is received in the second half of the year and will compensate for costs incurred to December 1997.

(iv) MIS - Expenditure is ahead of budget by $134,000. The over expenditure relates to the timing of payments such as microsoft user licences with cost recovery expected in the second half of the year. The year end result is expected to be close to budget.

(v) Plant and Building Services - At 31 December P and B Services revenue was $300,000 under budget. The under recovery relates to the timing of invoice processing and steps have been taken to improve this. The year end result is expected to be achieved.

(vi) Entertainment and Convention Facilities - The over expenditure of $178,000 in the main relates to the incorrect charging of rates for the Convention Centre. The amount should have been charged to CCFL with the adjustment actioned during January.

(vii) Waste Management - At 31 December Waste Management was overspent against budget by $316,000. A shortfall in revenue from refuse stations and compost sales is the main reason for the over expenditure. Revenue projections for the second half of the year are expected to be achieved which combined with an emphasis on cost reduction will ensure the result does not worsen at year end. Some additional costs which are outside the control of the Unit have also been identified and will be discussed later in the report.

(viii) City Streets - The result for the six months shows over expenditure against budget of $432,000. The main reasons for the variance at 31 December relate to the fact that Transit revenue is down against budget at this stage as the capital programme is behind and $300,000 of operational expenditure which will be transferred to capital at year end. Overall the operational result is close to budget with the year end budget expected to be achieved.

(ix) Works Operations - The $2.75M over expenditure relates to WIP to be recharged to business units. Approximately one third relates to infrastructural assets with the balance operational. The year end projected result is expected to be achieved.

Summary - Operational Expenditure

In addition the library has had a drop in revenue with the closure of the Shirley Library and disruption caused by the Central Library upgrade. Steps are being taken to maximise revenue for the second half of the year to minimise the current shortfall.

Overall the year end budget is expected to be achieved but with some revenue shortfalls and increased costs close management monitoring of the situation for the remainder of the year is required.

(d) Fixed Assets Expenditure

At 31 December 1997 fixed assets expenditure is running behind budget by $13.6M. Delays in the starting of significant projects account for $10.5M of the under expenditure. The balance is made up of smaller sums relating to the timing of actual expenditure against budget. Some saving have been identified later in the report.

(e) Infrastructural Assets

Actual expenditure to 31 December is $16.8M against a budget of $20.4M. As noted earlier some of the $2.7M WIP from Works Operations and City Streets expenditure amounting to $0.3M are still to be transferred.

(f) Restricted Assets

Parks $1.2M and Property $.5M account for the bulk of the under expenditure at 31 December. The under expenditure relates to delays in implementation with the year end projections expected to be achieved.


(a) Operational Savings and Additional Revenue


City Design Surplus     350,000
Commercial Property - Revenue (additional) 50,000  
  - Expenditure Savings 200,000  
  - Grant South Hornby Preschool 55,000  

(b) Operational Shortfalls


Parks - Rural Fire recoveries excess plus contractor
- Urgent tree safety maintenance - Hagley Park
- Urgent maintenance - 9 Evelyn Avenue
Waste Management - Additional paper recycling subsidy
- Refuse and Compost revenue
Library Revenue shortfall Shirley and Central   100,000
Inventory Copy centre start-up   29,000
Canterbury Regional Council Civil Defence Training(Through the Director of Operations the CRC has requested additional funding to complete the training of Community Volunteers in disaster recovery)   67,000
Environmental Services - City Plan
- Resource Consent Hearings
Estimated Operational Shortfall     $234,000

(c) Capital and Infrastructural Savings


Water Services- - Mains Renewal 100,000
Environmental Policy - and Planning - Urban Renewal 200,000
Total Savings   $300,000

(d) Capital and Infrastructural Requests for Additional Expenditure


Parks - Avondale Park Drainage (reallocation request in lieu of Latimer Square)
- Redcliffs Park Hockey transfer
Property - Civic Offices Structural Strengthening
- Old AMP Showgrounds - parking
- 210 Tuam Street development
Mayor’s Office Computer Purchases (replacement of old Macs with PCs)   17,000
Total Requests for Additional Expenditure     $512,000
Overall Capital and Infrastructural Shortfall     $212,000

(e) Capital and Infrastructural Projects Delayed to be rebudgeted in the 1998/99 year


Water Services Burwood/Woolston Expressway   250,000
Property Parklands CC Improvement
Canterbury Provincial Building
Pier Building
Suburban Libraries
Parking Meter Replacements
Hospital Car park Equipment
Waste Management Liquid Waste
Solid Waste
Total to be Rebudgeted 1998/99 year     $5,603,700


(a) Operational

With the revenue shortfalls already identified in Waste Management and Libraries, the overall year end result will be under pressure. The Council will need to decide whether to continue with the recycled paper subsidy given the continued price fall overseas. It is recommended that no additional operational expenditure be authorised apart from the essential small items identified in the Parks area, the additional Annual Plan and Resource Consent costs, and the Copy Centre set-up already approved. Continued monitoring by managers should ensure an overall result within budget at year end.

(b) Capital

I have split the capital into two components as they need to be treated differently. The projects which we know are delayed ($5.6M) should be deleted from the year's budget and rebudgeted for the next financial year. This action will give more certainty to the current year's borrowing programme and help minimise interest costs. As the programme assumes borrowing late in the financial year, the amount will not be substantial but the adjustment will give certainty to the base figure for next year's estimates. As these projects have already been approved and are only delayed, units need certainty that they will be retained in the next year's budget for planning purposes.

Very few capital savings have been identified at 31 December 1997 and it is recommended that no additional capital expenditure be approved apart from the Civic Offices structural strengthening due to the safety issue involved.

  1. That the information be received.

  2. That the Parks, Environmental Services and Copy Centre additional operational expenditure be approved, to be funded from savings identified.

  3. That no additional capital expenditure be approved apart from the Civic Offices structural strengthening.

  4. That $5.6M of identified expenditure be deleted from the 1997/98 budget and be rebudgeted in 1998/99.
Chairman's Recommendation: That the above recommendation be adopted.



Officer responsible Author
Director of Finance Richard Simmonds
Corporate Plan Output: Corporate Expenses and Revenues


A request has been received from the General Manager of the Christchurch Symphony Orchestra (CSO) for the Council to guarantee an increase in the CSO's overdraft with the ASB bank from $40,000 to $100,000. A copy of the letter requesting the guarantee is attached.

A separate request has also been made to increase the Council's contribution from $200,000 per annum to $300,000 - the latter sum to be a "cap on CSO funding from the Council for the foreseeable future".

This report provides some background to the CSO's financial position, and makes recommendations regarding further financial assistance.


Various discussions have been held between Councillors and staff with the CSO General Manager regarding funding issues and budgeted cash flows for the forthcoming period.

A difficulty the CSO faces is the lack of certainty of funding from year to year, and the risk of some programmes during the year being financially unsuccessful. This variability of income, combined with an increasingly fixed cost structure (as the proportion of tenured players increases), significantly increases the risks facing the CSO and, by implication, its guarantors.

Arguably, some decisions taken last financial year by the CSO were over-ambitious in the light of their relatively precarious financial position. These included an increase in the number of tenured players (as opposed to those paid on a casual basis as and when required), substantial pay rises for the orchestra and the purchase of a set of timpani for $54,000 - half of which is still to be paid. Additionally a budgeting oversight meant that there are potential further expenses in connection with the tenured players. This increased expenditure, combined with some concert losses in the last quarter of the year, has presented the CSO with some major cash flow difficulties for 1998.

A cashflow forecast was provided with the request for the overdraft guarantee. Subsequent examination of the forecast has revealed some inconsistencies indicating that the cash flow position is even worse then anticipated. It appears that even increasing the overdraft limit to $100,000 would be insufficient to cover cash outlays based on the current budget assumptions. Consequently the CSO General Manager is now taking active steps to cut costs. Once agreement has been reached on these cost-cutting measures, which are designed to trim a further $100,000 from the operating budget, a revised cash flow forecast will be produced.


The above circumstances place the Council in a difficult position. On the one hand, realistically it cannot let the CSO cease to be a going concern through refusal to provide assistance. On the other, it is unreasonable for the Council to be presented with a request at such short notice to provide financial support, without having had any input or consultation regarding the decisions that have led to this situation arising. In view of this the following recommendations are made.

  1. That, given the immediate short term nature of the CSO's cash flow difficulties, the Council comply with its request to guarantee an increase in its overdraft from $40,000 to $100,000, subject to the Director of Finance approving the final cash flow forecast when received. However, this should be linked with a further agreement that, should the Council be called upon to meet this guarantee, a corresponding sum will be deducted from the annual grant made by the Council to the CSO in the subsequent financial year.

  2. That the CSO be required to submit six-monthly financial reports to the Council on a timely basis.

  3. That no agreement be entered into regarding the size of the annual grant until a detailed business plan and updated budget have been provided to the Council, and the Council has been given the opportunity to have an appropriate level of input.

  4. That the Council also satisfy itself with regard to the quality of the CSO's budgeting and financial decision-making process.
Chairman's Recommendation: That the above recommendation be adopted.



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

The purpose of this report is to obtain Council authority to remit rates on the Ngaio Marsh House at 37 Valley Road under the provisions of Section 179 of the Rating Powers Act 1988.

The property is recorded in the Council's rates records under the name of Pyne Gould Guinness Trust Limited. However, the Trust is recorded as owner as Custodian Trustee for the Ngaio Marsh House and Heritage Trust. The house and garden are open to the public as a literary heritage property in accordance with the terms of a resource consent granted by the Council. The Trust provides guided tours of the house for an admission price of $6.00 per person. This fee provides an income of $120.00 per week to the Trust and the Trust also receives a rental of $80.00 paid by a tenant operating a separate unit at the back of the main house.

The house was occupied by the late Dame Ngaio Marsh for many years until her death. After her death the Trust was formed to create a memorial to the life and work of Ngaio Marsh and it is intended that the house be preserved as a memorial and museum to her. The house will be treated as a museum open to the public at specified hours and specified days. Renovation work has been carried out to reconstruct the dwelling house to preserve its architectural integrity and heritage value.

The question of remission was referred to the Legal Services Manager regarding whether and under which section of the Act the Council could consider remission.

Mr Mitchell now advises that the Council has the power under the provisions of paragraph (e) of Part I of the Second Schedule to the Rating Powers Act to remit rates on land owned or occupied by or in trust for any society or association of persons, whether incorporated or not, for conservation or preservation purposes and not used for private pecuniary profit, where the general public are allowed access to that land.

Mr Mitchell also adds that under the above section of the Act, the Council has the discretion to remit all or part of the rates should it so wish. The Council has, however, no obligation to remit the rates.

The land is not being used for private pecuniary profit in that, in accordance with Section 179(3) of the Act, any charges from the use of the land are retained by the Ngaio Marsh House Heritage Trust to defray the expense of maintaining the house. No profit is derived by the members of that Trust.

It may be considered that PGG Trust Limited as the owner of the land does derive a 'private pecuniary profit' because it is paid a fee by the Ngaio Marsh House and Heritage Trust to collect the rent from the house at the back and to manage the affairs of the Trust itself. This is an unusual situation in respect to the powers relating to rates remission but in the opinion of Mr Mitchell this type of arrangement does not disqualify the application by the Ngaio Marsh House and Heritage Trust for consideration by the Council of rates remission.

Mr Mitchell takes the view that the fees paid to PGG Trust Limited are analogous to the other types of fees paid by the Trust such as for insurance and maintenance purposes. This is a situation where PGG Trust Limited are involved as a trustee for administrative purposes only and are not a land owner in their own right. Mr Mitchell does not believe that their involvement disqualifies the Trust from consideration for rates remission.

Considering then the question of whether remission should or should not be granted, I would add that at present there is no precedent for remission of rates on comparable parcels of land within this Council's rating area. The Council's normal policy, however, is to limit remission of rates on properties under Part I of the Second Schedule to one-third.

Recommendation: That the Council grant a one-third remission of rates on the Ngaio Marsh House at 37 Valley Road under the provisions of Section 179 of the Rating Powers Act 1988 with effect from 1 July 1997.
Chairman's Recommendation: That the above recommendation be adopted.




Officer responsible Author
Funds and Planning Manager Murray Sinclair
Corporate Plan Output: Mayor's Welfare Fund, Volume 1 Page 5.1.text 8

The purpose of this report is to advise the Committee on the status of the Fund and information on the number of clients accessing the Fund. Comparative figures for the same period last year are shown in brackets.

During the period covered by this report 2,292 (2,036) people approached the Fund for assistance. Of those 1,014 (747) were granted financial assistance with a further 1,092 (1,289) given support, guidance or practical alternatives for solving their immediate problems. Phone enquiries totalled 3,265 (2,463). During this period 1,092 (1,007) referrals were made to the following organisations:

Income Support Services 840 (579)
Housing New Zealand 26 (32)
Southpower 58 (31)
Telecom 11 (15)
Welfare Agencies/Landlords etc 157 (350)

The highest demand on the Fund is still in the area of accommodation with 455 (353) clients being assisted with accommodation at a cost of $92,059 ($63,794).

Child care costs for children in 'at risk situation' are still being meet by the Fund with $34,192 ($36,072) being expensed for the six months ended 31 December 1997.

During this period audit of the Fund's accounts for the year ended 30 June 1997 commenced. The audit is being conducted by the Council's Internal Auditor on behalf of Audit New Zealand. The audited accounts will be reported to the Council upon receiving Audit New Zealand's report.

A copy of the Statement of Income and Expenditure for the six months ended 31 December 1997 is attached.

Chairman's Recommendation: That the information be received



Officer responsible Author
City Manager Mike Richardson and Ian Chapman
Corporate Plan Output: Council/Committee Servicing Page 6.1.2

The purpose of this report is to recommend that Council agendas be produced on recycled paper rather than coloured paper.

The Council agendas are currently produced on coloured paper at a cost of $49,283 per annum. There are three arguments for a change to using recycled paper; these are:

1. Recycling

At present colour paper has no value for recycling, while recycled paper can be used as a low grade recycled product added to the fact that it is already a recycled product.

2. Cost

The Council agendas would cost $34,205 per annum to produce on recycled paper, a saving of over $15,000 per annum against using coloured paper. If white paper were to be used, a further $4,327 per annum would be saved.

3. Production

The use of one type of paper would reduce the amount of time taken to produce the Council agenda and this could lead to the reduction in the number of supplementary reports.

Recommendation: That the Council agendas and Committee reports be produced on recycled paper with electronic tabs.
Chairman's Recommendation: That the above recommendation be adopted.




Officer responsible Author
Director of Finance Roger Lancastle
Corporate Plan Output: Financial Advice Volume I Page 4.5.2

The purpose of this report is to comply with Section 4 of the Public Bodies Contracts Act which requires that a schedule of orders for supplies and works approved under delegated authority and exceeding 50% of that authority be reported to the next meeting of the Council. The following schedule lists items in that category since the last report:



Name of Supplier Description Amount Delegated Authority
Fulton Hogan Canterbury Construct a new 300m3 water reservoir at Broad Oaks Huntsbury 3 site $73,164.50
(50% share)
Water Services Manager
Sound and Vision Systems Ltd Supply of 8 CCTV Cameras Crime Prevention
Acting City Streets Manager
National Research Bureau Ltd Annual Citizens Survey $61,000.00
Corporate Planning and Information Manager
Southern Insulation ChCh Ltd Pages Road - Removal of Asbestos
Director of Operations/
Director of Finance
GEC Alsthom Underground Conversion Collins Street $81,560.00
City Streets Manager
Diesel and Power Systems Ltd Diesel (Perkins) Generator Set - Belfast Pumping Station
Water Services Manager
Laing Contractors Ltd Collins Street Reconstruction
Acting  of Operations/
Director of Finance
Fletcher Construction NZ Ltd Civic Offices Accommodation - Stage 6
Director of Operations/
Director of Finance
Digwork Contracting Ltd Westholme Kerb & Channel
(Blighs - No. 40)
Director of Operations/ Director of Finance
Canroad Construction Ltd Carriageway Smoothing - Various Streets
City Streets Manager
Piping Construction Business Ltd Richmond Hill Road Sewer Renewal
Acting City Design Manager
Maxwell Plumbing Co Ltd Gibbon Street Sewer Renewal
Acting City Design Manager
Newpower Electric Ltd Civic Offices Essential Power Supply Upgrade
Director of Operations/ Director of Finance

Chairman's Recommendation: That the information be received.




The draft submission will be circulated to Councillors prior to the meeting.

[1] Jordi Borja and Manuel Castells: Local and Global - Management of Cities in the Information Age. Earthscan. 1997.

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