archived.ccc.govt.nz

This page is not a current Christchurch City Council document. Please read our disclaimer.

23. 7. 97

STRATEGY AND RESOURCES COMMITTEE
14 JULY 1997

A meeting of the Strategy and Resources Committee
was held on Monday 14 July 1997 at 4.00 pm

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

APOLOGY: An apology for absence was received and accepted from Councillor Oscar Alpers.

Councillor O'Rourke arrived at 4.18 pm and was present for all clauses except part of clause 9.

Councillor Murray retired at 4.18 pm and was present for part of clause 9.

Councillor Moore was absent between 4.57 pm and 6.06 pm, and was present for all clauses except parts of clauses 1 and 4, and clauses 2, 3, 10 and 14.

The Mayor was absent between 5.20 pm and 5.57 pm, retired at 6.10 pm, and was present for all clauses except part of clause 2, and clauses 5, 6, 7, 8, 10, 11, 12, 13 and 14.

Councillor Freeman retired at 5.20 pm and was present for clauses 1, 9 and part of clause 2.

Councillor Howell was absent between 5.36 pm and 5.47 pm and was present for all clauses except part of clause 10.

Councillor Evans retired at 6.10 pm and was present for all clauses except clauses 5, 6, 7, 8, 11, 12 and 13.

Councillor Wright retired at 6.31 pm and was present for all clauses except clauses 5, 6, 7, 8, 11, 12 and 13.

The Committee reports that:

PART A - MATTERS REQUIRING A COUNCIL DECISION

1. HEART UNIT APPEAL RR 5607

Officer responsible Author
City Manager Jennifer Pitcher
Corporate Plan Output: Strategic Planning p.8.1.3

The purpose of this report is to present a request from the Canterbury Cardio-thoracic Appeal Committee to provide support for the forthcoming Heart Unit Appeal.

BACKGROUND

Over the last few years, the CCC has worked with Cardiac Companions and other stakeholder groups to urge central government to provide a cardio-thoracic surgery unit with a 24 hour emergency capability attached to an intensive care unit, emergency back up and associated specialist services.

In February 1997, the Southern Regional Health Authority decided on its preferred option for the delivery of cardio-thoracic surgery in the Southern Region as a joint venture between Health Care Otago and the Southern Cardio-thoracic Institute.

After substantial pressure from many parties, including the City Council, Canterbury Health has now convinced the government of the need for a joint venture between itself and Health Care Otago as a totally public service. This is currently being considered by the Ministry of Health. Both Health Ministers support the proposal in principle and it is anticipated that the necessary legal documents will be completed by the end of July 1997 with the Unit becoming operational by the end of 1997.

The advantage to Canterbury of the proposed joint venture is stated by Richard Webb, the CEO of Canterbury Health as being "more control in the operation of the Christchurch Unit" with the potential of "establishing a unit in our own right. Had we not achieved a joint venture (between Health Care Otago and Canterbury Health) for the operation of the unit, we would have had to accept the conditions and arrangements which worked to the advantage of the Dunedin group, including their ownership of the equipment, but which were not necessarily in the interests of the people of Canterbury. The true benefits of this new arrangement will be two domiciliary surgeons in Christchurch, and in the second year there should be no need for Christchurch patients to travel to Dunedin. Two vital aspects that were not previously possible under the SRHA proposal.

Thus there is a need for more equipment than under the previous proposal before government. While we now have a more capital intensive solution, we look forward to being able to undertake more operations than previously planned and also to being able to contract a fourth surgeon to the joint venture in the future."

CANTERBURY HEALTH FUNDING ISSUES

According to Canterbury Health, they are significantly under-funded by the Southern Regional Health Authority as a result of under purchasing in terms of:

1. The volume of services. Publicly provided surgical interventions in Canterbury are 20% below the national average, and 40% below Otago. The waiting list for surgery in Christchurch has 10,000 people, which does not include people waiting to get on to the list. (i.e. they have not been able to see a specialist to get a referral).

2. The price paid for services.

The explanation given for this by Canterbury Health was that this is related to historical factors and the higher private intervention in Christchurch that supplements the public intervention. The Southern Regional Health Authority would not give permission for their letter in response to Canterbury Health to be released.

Due to the under-funding for Canterbury Health, they have limited finances available for the purchase of equipment. Funding from the Southern Regional Health Authority for 1997/98 is for 377 surgical procedures and for three surgeons in the southern region. This does not include thoracic or angioplasty procedures. This is the same number of procedures as 1996/97, although funding has been reduced by 10% by the Southern Regional Health Authority and services are being provided from two as opposed to one site.

Under the proposed joint venture, capital requirements for cardiac surgery at Christchurch Hospital for 1997/98 are $2 million for equipment, $2 million for space alterations (recommissioning a tenth operating theatre, building a purpose built Intensive Care Unit for cardiac patients and alterations in the ward for cardio-thoracic patients) as well as funding for an extra surgeon. The projected loss would be $770,000 over three years.

There is currently $160,000 in the Appeal Trust Account from previous fund raising.

REQUEST FOR FINANCIAL SUPPORT

The Canterbury Cardio-thoracic Appeal Committee is seeking to raise $2 million to pay for the equipment required, should the joint venture proposal be accepted. Under the previous proposal, the equipment would have been purchased by Otago Health and the Southern Cardio-thoracic Institute. With the new proposal, the money would be held in a Trust account and the equipment purchased would be owned by a Charitable Trust who would lease it to Christchurch hospital for a peppercorn rental. This would result in projected savings to Christchurch Hospital of $720,000 over three years as they would not need to pay for depreciation on equipment. This would reduce the projected loss to $50,000 over three years.

A request has been received from Mr Neil Columbus on behalf of the Canterbury Cardio-thoracic Appeal Committee for support from the CCC as follows:

1. Funding and organisational support for the launch, including sending out invitations and ensuring its success.

2. Making available immediate funds for publicity and promotion of this appeal. ($30,000)

3. The provision of secretarial services for the appeal.

4. Sending out information about the appeal with the Council's rates demands.

5. Sending out information about the appeal with Southpower's monthly accounts.

6. Making a grant of $309,900 directly to the appeal fund (based on a dollar contribution for every resident of Christchurch City).

7. Approaching all other local authorities in the Canterbury and West Coast region to encourage them to follow the Christchurch City Council's example with similar donations.

In his request, Mr Columbus states that "It seems fitting that the CCC should help raise this money because, as the Mayor and Councillors have acknowledged many times, public 24 hour emergency and elective heart surgery facilities have been badly needed at Christchurch Hospital by the Christchurch community for many, many years."

The Chairman commented:

The request for a contribution to the public appeal to fund part of the capital cost of the cardio-thoracic unit raises an important question. Should the Council contribute funds to a government agency to provide a service which the agency has a duty to provide? The answer must, in principle, be `no'. Government services in health, education and law enforcement are so costly that they could absorb unlimited ratepayers funds. There are, however, a number of occasions on which the Council has funded a government agency to carry out some of its basic functions. Two examples that come to mind are the purchase of surveillance cameras to assist the police to control inner city crime, and the purchase of speed detectors to enable the police to carry out effective reinforcement of speed limits. In both these cases, the Council has contributed a specific sum for capital equipment on the understanding that the police will meet all operational costs.

In the case of the cardio-thoracic unit, the appeal is likewise for capital equipment, with Canterbury Health meeting all operational costs. (The Mayor and I last year advised Cardiac Companions against an appeal till operating costs were funded.)

The government's decision to provide a cardio-thoracic unit at Christchurch Hospital is obviously to be welcomed. It is regrettable that the funding provided does not fully meet our reasonable expectations, but I consider that the argument over a heart unit has gone on for so many years, that it is time to stop arguing and start acting. I believe the Council should support the appeal for the following reasons:

1. The provision of capital will enable Canterbury Health to provide a comprehensive service, both for emergencies and routine procedures.

2. It is unlikely that the Government will contribute funds in addition to those already committed.

3. A one-off contribution to a public appeal does not establish any precedent or ongoing liability.

4. The public need and deserve a comprehensive cardio-thoracic service as soon as possible.

Additional information requested from Canterbury Health follows. I note that Cardiac Companions have requested $30,000 for publicity and promotion. I consider that sum to be excessive as most branches of the local media, if approached, are likely to be willing to sponsor the appeal.

The following information was provided by Ms Sally Nicholas, Head Accountant, Christchurch Hospital Services.

OTAGO/SOUTHERN INSTITUTE PROPOSAL VS OTAGO/CANTERBURY CARDIAC UNIT PROPOSALS

OTAGO/SOUTHERN INSTITUTE OTAGO/CANTERBURY

Functions

100 `simple' cardiac surgical procedures only at Christchurch Hospital over 3 years. Emergency cases would still need to go to Dunedin. Up to 50% of the contract volume (566 cases over 3 years). An increase of 89% (266 cases) including the full range of complex and emergency cardiac surgery cases.
Surgical back up for angioplasty Surgical back up for angioplasty

Surgeons

Two surgeons based in Dunedin, one surgeon based in Christchurch. Two surgeons based in Dunedin, two surgeons based in Christchurch.

Cost/Benefit

Capped volume of 377 cardiac cases/annum. Capped volume of 377 cardiac cases/annum
Equipment at Dunedin and Christchurch owned by Otago Health, leased by Canterbury Health. Equipment at Dunedin owned by Otago Health, equipment at Christchurch owned by a Christchurch Charitable Trust, leased by Canterbury Health at `peppercorn' rental.
Same caseload revenue  
Cost per procedure? Cost per procedure?, but more costly due to the purchase of equipment and extra surgeon.

 

OTAGO/SOUTHERN INSTITUTE OTAGO/CANTERBURY

Viability

Clinical viability for all cardiac surgical procedures at Dunedin. Clinical viability for `simple' procedures at Christchurch. Clinical viability for all cardiac surgical procedures at Dunedin and Christchurch.
Ability to service population at Dunedin Ability to service population at Dunedin and Christchurch

Each proposal requires duplicate capital resources. The equipment and surgeons required to perform this volume of activity may seem high, but is necessary to safely provide a service at two sites. The benefits of the Otago/Canterbury proposal are reduced travel costs, patients not having to be removed from their support networks and lives saved by having a 24 hour emergency service at Christchurch Hospital.

The best use of resources would be to have all surgery performed at one site in Christchurch, but this is not an option. The equipment list (tabled) referred to in the previous report was compiled by Canterbury Health Clinicians in conjunction with Healthcare Otago Cardiac Surgeons as the minimum requirements to provide a `safe' service.

Councillor Moore advised that he was unable to be present for the voting on the recommendations, and asked that it be recorded that he was against the proposal.

Councillor Harrow moved by way of amendment "That the matter lie on the table for a month". The amendment was seconded by Councillor Freeman. When put to the meeting, a show of hands was called for and the amendment was declared lost by five votes to four.

A show of hand was called for when recommendation 4 was moved and carried by five votes to four. The Mayor, Councillors Gordon Freeman, Pat Harrow and Denis O'Rourke requested that their vote against this recommendation be recorded.

Recommendation:

1. That the Council agree to assist in launching and promoting the appeal and contribute $5,000 towards promotion costs.

2. That the City Manager be asked to consider what resources (e.g. service centres, libraries etc) it might be appropriate to employ.

3. That the Council convene a meeting of relevant local authorities to enlist their support.

4. That the Council contribute or underwrite $310,000 to the appeal fund. (Source of funds: 1997/98 contingency fund and 1998/99 unspecified operating)

2. PROTECTION OF FUTURE PASSENGER RAIL OPTIONS RR 5610

Officer responsible Author
Environmental Policy and Planning Manager Stuart Woods, Senior Transportation Planner
Corporate Plan Output: Transport Planning Advice

INTRODUCTION

The purpose of this report is to seek the Council's approval to pursue the protection of land (and hence future options) whilst initial investigations of a suburban passenger (commuter) rail service are undertaken.

RESIDENTIAL GROWTH

Recently there has been significant residential growth outside the urban boundary of Christchurch, particularly in Kaiapoi and Rangiora. This residential growth is planned to continue in these areas, as well as in Templeton and Rolleston. As a result, Christchurch is developing several dormitory satellites with the resultant demand for travel to the city for employment, service and entertainment purposes. This puts increasing pressure on the roading network particularly during the morning and evening peaks when residents are travelling between home and work. All the above settlements have rail lines passing through.

Various solutions will be needed to address the situation - no single measure will provide the panacea to the problem. One means of addressing the congestion being caused during peak hours (by commuters) would be to provide them with an alternative mode to use - encouraging them out of their cars. For residents in the satellite settlements this might be offered by providing a passenger rail service.

NEW ZEALAND RAIL DEVELOPMENTS

Several years ago New Zealand Rail relocated its Christchurch station out to Addington, freeing up a large area of land along Moorhouse Avenue. The land along Moorhouse Avenue which was freed up with the removal of the station is in the process of being redeveloped presently. At around the same time as the station relocation, the Addington workshop site was closed down and is also in the process of being redeveloped. Part of the changes at Addington included the link rail from the north to the port being removed.

One of the outcomes of these developments was the effective removal of rail as a commuter mode for central city workers (despite no services running presently anyway).

PLANNING DOCUMENTS' SUPPORT

The draft City Plan comments in the explanation to the Transport Goal that:

"It is important to ensure that the decisions made with regard to city growth do not compromise the ability for public transport to service the area in the future."

Volume 2, Chapter 7

It later comments:

"It is essential for industry, commerce, and tourism in Christchurch that a high level of access is maintained between the rail, road, airport and port facilities and the city to provide access for passengers, freight, employees and visitors. It is also important to protect these transport facilities from outside uses and vice versa, by provision of adequate land in appropriate areas and protection of transport corridors."

Volume 1, section 3.15.9

Also in Volume 2, policy 7.8.5 is "To provide for the protection of rail corridors for transport purposes." and also comments later that "Protection of the corridors is required to ensure an effective and efficient rail service is able to operate."

The Regional Land Transport Strategy comments on page 12 that:

"infrastructure needs protection from activities that may adversely impair its function, or land uses which limit future options. This includes ...

It also comments on page 25:

"This (rail passenger transport) is a form of high-occupancy, low emission mode that may be considered appropriate for serving future commuter needs within the region. This is particularly pertinent to development that takes place in areas where rail infrastructure currently exists, i.e. Rangiora-Kaiapoi-Christchurch."

ADDINGTON NORTH-TO-EAST RAIL LINK

The area of land required to provide a direct north to east light rail connection is approximately 4930m2 as shown on Plan S2867 attached. This provides for the turning radii that a light rail vehicle can negotiate (which is substantially less than heavy rail), for a platform parallel to the wheel lathe building, and also a pedestrian connection to the existing station. A platform would allow the transfer of passengers from the local rail system to the regional rail system.

The Council does not necessarily require ownership of this land. The purpose is to protect this area of land from being built on with permanent structures in the period between today and a future rail service being implemented.

The land is currently owned by the Crown (LINZ) but is in the process of being subdivided for the purpose of transferring the ex-Railway Workshops land to Ngai Tahu.

Initial discussions have occurred with New Zealand Rail, Tranz Rail, LINZ and Ngai Tahu. There is acceptance by all parties to continue discussing the proposal at this stage.

There are a number of ways the land could be protected as follows:

1. The land would be reincorporated into the South Island main trunk railway title, (with the Council possibly entering into a lease with Tranz Rail).

2. The land made a right-of-way in gross over Lot 5 of the Ngai Tahu subdivision. Arrangements could be made to allow temporary uses, such as parking, storage or relocatable buildings in the interim.

3. Purchase a separate title. This would require a right-of-way connection to Lester Lane.

4. Designate the land through the District Plan.

The best and simplest mechanism is Option 1. This requires the agreement of Tranz Rail and this has been requested.

The cost of purchasing the land is estimated by the Property Unit to be of the order of $450,000.

CENTRAL CITY TERMINUS

To operate a suburban passenger rail service, a centrally located and easily accessed station would be needed in central Christchurch. A relatively small site between Moorhouse Avenue and the rail line may serve satisfactorily, but convenient opportunities are dwindling. Despite this proposal being still in early stages of assessment, it would seem prudent to investigate the options for protection of some land along Moorhouse Avenue which might provide a transit station site before this is precluded or much more expensive in the future. The station may not need to be a stand alone facility, and could potentially be developed as a multi-activity project (for example, for a station and/or for car parking and/or for entertainment and/or bulk retail). Hence further work is needed before an cost implications could be assessed.

The city end of the service could also potentially link with the proposed central city electric battery shuttle bus service (or similar), to transport workers to and from their places of work in the central area.

FUTURE ACTIONS

A feasibility study, possibly followed by a more in-depth study, is needed to investigate this proposal further. This would include legal aspects, patronage projections, costs, effects on traffic volumes in Christchurch and discussions with New Zealand Rail, Tranz Rail, the Canterbury Regional Council, and Selwyn and Waimakariri District Councils regarding issues involved in setting up such a system.

No funds have been allocated for either an in-depth study nor for land purchase. Funds will be required if Council wishes to support this proposal and pursue it further. In the "worst case" scenario of providing protection for the land by purchase, these would be of the order of $450,000 for the Addington land and $50-100,000 for the in-depth study. Cost estimates for the Moorhouse site are unknown as the optimum location and form of development is still to be established.

SUMMARY

Recent developments by New Zealand Rail/Tranz Rail have removed ready establishment of suburban passenger rail services between the satellite settlements and central Christchurch.

Planning documents support investigation and protection of opportunities for this type of proposal.

Presently, as a result of ongoing redevelopment, two elements need addressing, namely protection of land in the vicinity of the Addington Railway station and adjacent to central parts of Moorhouse Avenue. There are various options to explore in achieving the desired protection.

If care is taken in purchasing any land, it could be sold to another developer at minimal final cost to the Council should a study finally conclude that the proposal should not proceed.

Recommendation:

1. That the Council further investigate safeguarding the rail options in the Addington Workshops and central Moorhouse Avenue areas.

2. That the Environmental Policy and Planning Manager report to the Strategy and Resources Annual Plan Working Party regarding estimates of costs and the adequacy of the Public Transport Initiatives vote to fund this proposal.

3. That discussions be continued with New Zealand Rail, LINZ and Ngai Tahu regarding the protection of Addington Workshops land for the North-to-East link, and later continuing with New Zealand Rail and Tranz Rail regarding the general proposal.

4. That options be investigated for a possible transit station site in the vicinity of the old station site along Moorhouse Avenue.

5. That discussion be initiated with Selwyn and Waimakariri District Councils regarding this proposal and furthered with the Canterbury Regional Council.

6. That a report back to this Committee be made once discussions recommended above have progressed or stalled, no later than in three months time.

7. That the Chairs of the City Services, Environmental, Central City and City Plan Committees discuss with the City Manager ways and means of developing an integrated transport strategy.

3. SPRINKLER SYSTEM - SHIRLEY LIBRARY/SERVICE CENTRE RR 5637

Officer responsible Author
Director of Operations Peter Francis, Community Manager
Corporate Plan Output: Corporate Advice 4.1 text 2

The purpose of this report is to consider the installation of sprinkler systems in the reinstated Shirley Library/Service Centre complex.

Following the fire which destroyed the building and contents of the Shirley Community Library and Service Centre on 20 April 1997 a Recovery Project Team was established to oversee the reinstatement of both units and to monitor the continuation of services and staff well-being immediately following the fire. This team consists of representatives from the Council's insurance brokers, the Library Unit, the Service Centre, the Property Unit, Financial Services and the assessor appointed by the insurance company to oversee reinstatement. To assist in this process three sub-teams were formed from Library and Service Centre staff to address various aspects of the fire and to examine the effectiveness of procedures designed to minimise the effects and disruption caused through such an incident.

Immediately following the fire a number of questions were asked of staff and elected members relating to the absence of a sprinkler system in the building and Dr Buchanan of Canterbury University expressed in The Press his concern about the lack of a sprinkler system.

In the light of these comments the Project Team called for a report from the Council's Property Manager in relation to installing a sprinkler system within the rebuilt Library and Service Centre. The Property Manager reported:

"BACKGROUND

The recently built Shirley Service Centre/Library complex was badly damaged by fire on the evening of the Sunday 20 April 1997.

The reinstatement project will take some six to nine months during which time the Service Centre will be relocated in temporary premises whilst Library services will be provided elsewhere from resources throughout the network.

There has been significant comment in the news media suggesting that the cost and inconvenience of the fire would have been negated had a sprinkler system been installed.

NEW ZEALAND BUILDING CODE REQUIREMENTS

The Shirley Service Centre/Library was constructed in accordance with the New Zealand Building Code. The Building Code requires that measures be installed to protect the life and safety of occupants and fire fighters, and to protect neighbouring properties, but nothing is required to protect the owners building or contents. The Papanui Library/Service Centre which is of a similar design to the Shirley complex does not have a sprinkler system. Nor does the recently built Linwood Community Library or for that matter the recently refurbished Linwood Service Centre.

COUNCIL POLICY

The Council does not have a policy with regard to the installation or otherwise of sprinkler systems in its buildings (other than by Building Code requirement) and the question is now being asked with regard to reinstating the Shirley Library/Service Centre with or without a sprinkler system.

The Commercial Property Section of the Property Unit, who administer this building, are currently developing an asset management plan. At a recent seminar, Councillors were asked for comment with regard to the level of service provided currently with Council owned buildings, including the provision of sprinkler systems, which should be seen as an enhancement to the current level of service.

The Commercial Property Unit administer 142 buildings, nine of which have a sprinkler system installed. However, it should also be noted that only 12 of the Council's 1,295 operational buildings, which includes heritage buildings, have sprinkler systems. These include:

HOW DO AUTOMATIC SPRINKLER SYSTEMS WORK?

An automatic sprinkler system consists of a pipe network in the ceiling, connected to the water main in the street. Each sprinkler head will operate only when the release mechanism reaches a certain pre-set temperature. The release mechanism for most sprinklers is a small glass bulb filled with coloured liquid which bursts at the pre-set temperature, releasing the water in the pipe.

In most developing fires, a plume of hot gases rises to the ceiling, then travels under the ceiling until the first sprinkler head is heated to the operating temperature. At this time an intense localised spray of water emerges from the sprinkler and usually extinguishes the fire.

If the fire is able to grow despite the sprinkler, a few more sprinkler heads will operate and extinguish or control the fire. Even with several sprinklers operating, the fire would have been tiny compared with that experienced at the Shirley Library/Service Centre, and the amount of water would be far less than supplied by the fire fighters.

All automatic sprinkler systems are connected to an alarm system, so that sprinkler operation is accompanied by alarms within the building and at the fire station.

It should be noted that the Shirley Library/Service Centre was fitted with heat detectors and smoke detectors, both designed to detect a fire and give an early warning to the occupants and to the fire service. These operated as intended in the recent fire, and sent a prompt alarm to the fire service.

INSURANCE COSTS

The majority of Council buildings are covered by replacement insurance including up to a minimum of $1m business interruption insurance in most cases for providing temporary services.

It should be noted that no discounts are offered to insurance clients who have sprinkler systems installed on an ad-hoc basis and so it could be said that there is little financial incentive to provide the additional capital to install sprinkler systems. A significant number of the Council's major facilities would need to include sprinklers to attract a reduction in the insurance premiums.

COST OF PROTECTION OPTIONS AT SHIRLEY

Smoke Detectors/Sprinkler System

(i) The cost of installing, maintaining and testing smoke detectors over a 20 year period has a net present value (NPV) of $10,087.

(ii) The cost of installing a monitored sprinkler system including mains connections, installation, annual tests, bi-annual surveys etc has a net present value (NPV) over 20 years of $67,139.

It can be seen that the option of sprinklers at the Shirley Library/Service Centre is six times more expensive ($57,052) than smoke detectors over a 20 year period. (It could be said that with the Council's replacement insurance that there is no financial benefit to compensate for this additional cost). However there has to be a significant loss of amenity for many ratepayers (both Library and Service Centre customers) during the months required for rebuilding. Furthermore the cost of stress and unnecessary additional workloads for many of the Library/Service Centre staff and the Project Team overseeing the reinstatement project are difficult to quantify.

It is really a risk management and cost/benefit issue and an analogy to this would be the provision of four wheel drive versus two wheel drive for the Council's vehicle fleet - do the benefits of increased safety outweigh the additional costs?

SUMMARY

There is no Council policy for the installation or otherwise of sprinkler systems in operational buildings; rather there is a Building Code requirement in some instances.

The Building Code requirement places an emphasis on life and safety not property protection.

The Building Code does not require a sprinkler system for the Shirley Library/Service Centre, but does require heat detectors and smoke alarms.

To fit a sprinkler system during the reinstatement of the Shirley complex costs $67,139 NPV over a 20 year period compared with smoke alarms costing $10,087 NPV over the same period.

There is no financial benefit to the Council in fitting a sprinkler system in this instance, given the replacement insurance cover but rather a protection of loss of amenity to ratepayers services (temporarily, given the business interruption cover).

Many similar facilities owned by the Council do not have sprinkler systems and accordingly some form of priority setting, perhaps through a weighted attributes evaluation system using criteria such as loss of ratepayer amenity, heritage values etc need to be taken into account.

There is currently no budget provision to install a sprinkler system.

CONCLUSION

The question that should be asked is whether or not it is prudent/wise to install a sprinkler system at the same time as the Shirley Service Centre/Library building is being reinstated.

On the information available, there does not appear to be any compelling reason why sprinklers should be provided at this point, given that there is no Building Code requirement to do so and when the risk/chance of a fire occurring in the same location is considered extremely low.

We need to look at the bigger picture and consider why this particular facility should have a sprinkler system when the majority of the Council's other building stock do not have this level of protection. Are there other more important buildings that should be provided with this enhanced level of protection ie heritage buildings for example.

The issue that Council should address first is the development or adoption of a policy concerning the enhanced level of protection (if required) for some or all of its categories of buildings on sound risk management/cost benefit principles.

Until such time as this policy is developed/adopted by Council, we cannot recommend that a sprinkler system be installed as part of the Shirley Service Centre/Library reinstatement project.

Recommendation: That sprinklers not be fitted at the reinstated Shirley Library/Service Centre until such time as a Council policy is adopted."

In considering this report the Project Team was mindful of a number of consequences of the fire the solution to which could not be addressed in monetary terms. These included the loss of Library services in the area for some eight months, the pressure placed on other Community Libraries to cope with this shortfall, the effect on staff and the need to provide temporary accommodation, the loss of some irreplaceable books and resource material and the time and effort required from many Council staff to address issues of salvage, replacement and reinstatement. The Team also received a request from two of the staff sub-teams that sprinklers be installed in the new building and a statement from the official assessor that in his opinion what developed into a major incident may have been quite minor had a sprinkler system been present.

It was noted that the Council's insurers make no reduction in premiums for the Council's buildings where sprinklers are installed. This is because the Council insurance policy insuring the building and contents has one overall rate based on the total assets at risk which recognises that some buildings are sprinklered. A request by the Council's insurance brokers to the Council's insurers on their position should the Council install sprinklers in any new buildings met with the advice that sprinklering new buildings would not reduce the risk to the insurance company sufficiently for them to offer any further reduction in the rate currently charged as the rate is already being substantially discounted.

The team accepts that the Council has yet to formulate a policy on the installation of sprinkler systems within Council buildings but as the reconstruction of the Shirley Library and Service Centre is imminent it is felt that if sprinklers are to be installed it would be preferable for this to be undertaken as part of the rebuilding process.

The Chairman commented:

Extinguishing a fire before it takes hold has obvious advantages, especially where, as in the case of a library, the contents are worth at least as much as the building. To install sprinklers in an existing building can be quite costly, but I understand that it usually costs considerably less at the time of construction. If the Council were to establish a policy to install sprinklers in all new buildings at the time of construction, the financial impact would be minor. We would then have good grounds for requesting a discount on our insurance premiums.

Recommendation:

1. That the Council expedite measures for establishing a policy for the installation of sprinkler systems in its buildings.

2. That, as a stand alone issue, the installation of sprinkler systems into the Shirley Library/Service Centre complex be implemented in conjunction with the fire reinstatement programme.

3. That $60,000 be provided in the 1997/98 financial year for the installation and maintenance of sprinklers in the reinstated Shirley Library/Service Centre complex.

4. CHRISTCHURCH DOMESTIC TOURISM - SPRING PROMOTION RR 5626

Clause 12 of the agenda and clause 14 of the supplementary agenda were dealt with in conjunction.

Officer responsible Author
Communications and Promotions Manager
Susan Selway
Corporate Plan Output:

The purpose of this report is to comment on the Canterbury Tourism Council's proposal for a spring promotion and request for funding (attached). The report also touches on the need to develop longer term strategies for tourism marketing and promotion.

BACKGROUND

During the Annual Plan process earlier this year Canterbury Tourism Council presented a case to the Community Services Committee for additional funding for service add-ons including domestic tourism . The total budget request was for $145,000. The request for increased funding for the domestic visitor market was declined but the Christchurch City Council allocated an additional $50,000 for Canterbury Tourism Council in the 1997/98 Annual Plan subject to the allocation of the additional funding being prioritised for approval by the Council.

A group of leading hoteliers and accommodation providers have written to the Christchurch City Council in support of the Canterbury Tourism Council's case for additional funding of $145,000 for 1997/98. This group have since met several times with the Mayor, Council officers and the

Canterbury Tourism Council to identify how a mutual objective of increasing tourism in the short term might be achieved. TVNZ joined the last meeting and presented an opportunity to take advantage of a dollar for dollar deal to advertise the city throughout New Zealand.

The result is the proposed joint venture between Canterbury Tourism Council and the accommodation providers, linking with Air New Zealand. The finance sought from the Christchurch City Council is $30,000.

CONSIDERATIONS

(i) A Short Term Need

In the proposal the Canterbury Tourism Council has identified a slowdown of growth in the international tourism market. The effect of this combined with significant pressure on the whole accommodation sector in Christchurch due to rapid expansion in the last year or so and recent substantial promotion of other major centres in New Zealand indicates a justified need to promote Christchurch aggressively in the short term. I am also informed that the situation has worsened for the accommodation sector in the last few months.

In terms of timing Christchurch is especially pretty in springtime and a September-October promotion would build on the winter marketing campaign run by the Canterbury Tourism Council. It is unfortunate, however, that September-October corresponds with a weak period in the events calendar, with only one festival, the new `Festival of Dance', scheduled across the two month period. As the pre-eminent festival city Christchurch will not be presented at its best. It will therefore be essential for the appeal of Christchurch's parks and gardens and the city's top attractions to feature prominently.

(ii) Longer Term Plans

Whilst it is my recommendation that the Council support the proposed spring promotion, I do have a concern that we are reacting to market pressures instead of formulating longer term plans to address problems and take advantage of opportunities. The dynamics of the tourism industry demand long term strategies because of the time lag between marketing and promotion and results.

In my view it is possible the Christchurch City Council may be limiting Canterbury Tourism Council's capacity for long term strategic planning by funding on a year by year basis. I believe this should be reviewed at some point in the forthcoming year.

It is my recommendation that Christchurch City Council extend an invitation to Canterbury Tourism Council to make a presentation on longer term strategies including market opportunities and proposed initiatives for the next few years. This should be used to open discussion on the possibility of a Christchurch City Council commitment to fund Canterbury Tourism Council several years out.

In the meantime Canterbury Tourism Council have indicated that the spring promotion would be followed up with promotion to the domestic market later in the year and that they will soon be developing a strategic plan. The Communications and Promotions Unit will continue to work closely with Canterbury Tourism Council to ensure alignment between City Promotion activities and tourism activities and to ensure that opportunities are maximised.

Recommendation:

1. That the Council allocate $30,000 from corporate contingency funds in support of the spring promotion proposed by the Canterbury Tourism Council.

2. That the Canterbury Tourism Council provide the Christchurch City Council with plans for domestic tourism marketing and promotion for 1997/98, and make a recommendation as to how the additional Council funding of $50,000 should be allocated.

3. That the Council invite Canterbury Tourism Council to make a presentation on longer term strategy including market dynamics and opportunities and proposed initiatives for the next few years.

4. That the Canterbury Tourism Council's tourism strategy, marketing and promotion plans outlined in recommendations 2. and 3. above be referred to the Communications and Promotions Manager for comment.

5. That the Council contribution of $30,000 be dependent on the other parties contributing $70,000, as set out in the report.

5. LAND TRANSPORT PRICING STUDY RR 5602

Officer responsible Author
City Streets Manager Chris Kerr
Corporate Plan Output: Planning

The purpose of this report is to:

1. seek delegation of authority from the Council jointly to this Committee and the City Services Committee for approval of the Council's submission on the Land Transport Pricing Study, Road Management Reform and the Draft National Land Transport Strategy;

2. to set out the fundamental issues relating to these discussion documents;

3. and finally to propose a process for raising general public awareness of these issues.

BACKGROUND

The Land Transport Pricing Study document, which potentially is the most significant of the three documents, was released to the public on Tuesday 27 May 1997. Submissions are sought by the Ministry of Transport by Friday 15 August 1997. To have the Council's submission adopted by full Council prior to the closing date would require that the submission pass through the July round of meetings which is impractical. It is appropriate for this meeting to also consider submissions on the other two documents at the same time.

The submission would then be reported through to August Council.

The Land Transport Pricing Study was initiated by the Ministry of Transport with the support of Local Government New Zealand and various sectoral groups. Its goal was to evaluate the costs of roading and to provide pricing options which promoted appropriate transport modal choices. The first set of papers was released in early 1995 and a submission was forwarded by this Council on a variety of issues raised in September 1996.

One of the outcomes from this initial process was a proposed review of the legislation governing the management of roading and this resulted in the release of Road Management: Options for Reform in late 1996. This discussion document highlighted the range of legislation currently in place with a primary focus on the road safety regime. Submissions on this document are required by 31 July 1997. We have requested a time extension to allow this submission to be coordinated with the one on the Land Transport Pricing Study.

The provisions for a National Land Transport Strategy are set out in the Land Transport Act (1993). This strategy, when completed, will provide overall direction for land transport development in New Zealand with all projects having to meet the criteria of being "not inconsistent with" the strategy. Regional Land Transport Strategies are also required to match the overall directions set, hence the opportunity for response on the Draft National Land Transport Strategy being available to Regional Authorities. A further draft will be released for general discussion and submissions in September 1997.

The Options discussed in the Road Management Reform and in the Land Transport Pricing Study are set out below:

Road Management Options

The Options as proposed in the document range from a philosophy which is very prescriptive and consequently very inflexible (in terms of adaptability to local conditions and scope for innovation), through to an extremely flexible option, here called the "Health and Safety in Employment Act approach," with no prescribed standards. The options are:

Option 1. Detailed Legislative Prescription - involving government inspection, relying on detailed standards contained in Acts & Regulations, backed up by fines for non-compliance;

Option 2. Licensing - similar to the rail sector, where all standards are specified as part of the licence conditions, with licence cancellation as a penalty for non-compliance;

Option 3. Safety Management System - based on the principles of safety audit & TQM (Total Quality Management), building in quality in the process and focusing on outcomes, checked regularly by an independent auditor. No provisions are made for penalties for poor performance;

Option 4. Performance Based Funding Contract - incorporating a safety management system but with the withdrawal of funding as a sanction mechanism for poor performance;

Option 5. Health and Safety in Employment Act Approach - where no standards are prescribed but heavy fines are imposed for practices likely to cause serious harm.

Land Transport Pricing Study Options

The document sets out five options which include a mixture of pricing and management reforms. The options are:

Option 1. Status Quo: Do Nothing - retains the existing charging mechanisms, basic cost allocation principles and management structures.

Option 2. Modified Status Quo - retains all existing systems and structures but reviews charges to ensure that revenues are sufficient to match an ongoing target of Benefit/Cost ratio no greater than 4.0.

Option 3. Business Model - retains the existing management structures but reviews charges, role of rates, road management legislative regime, replaces PAYGO funding system, introduces congestion pricing and policies and examines the feasibility of shadow pricing.

Option 4. Commercial Model - as per Option 3 but transfers territorial local authority road assets to a local authority trading enterprise, transfers crown road assets to a State-owned enterprise and begins to introduce road charging by use.

Option 5. Commercial Model: Roads New Zealand - as per Option 4 but seeks to create one or a limited number of commercial enterprises owned jointly by Crown and local authorities.

FUNDAMENTAL ISSUES

The Land Transport Pricing Study: Options for the Future raises a number of fundamental issues for local authorities regarding ownership, funding and management of the roading network. These issues are mirrored to a certain extent in the other two documents. These issues are summarised below; the comments primarily relate to the Pricing document :

Funding - the document discusses the implications of the funding shortfall on the Benefit/Cost (B/C) threshold for transport improvement projects, and then implicitly uses this shortfall as a primary reason for seeking fundamental change. In fact a relatively minor adjustment to the revenue flow (for example an approximately 1-3 cents/litre increase in the Fuel Excise to the Transport Fund and similar small percentage increases in road user charges) would be sufficient to reduce the B/C threshold to 3.0 on an ongoing basis.

The option for introducing the ability to raise loans for capital improvements, included in Option 3 - the Business Model, would also address this issue as well as introducing inter-generational equity to transport improvement funding.

Pricing - the concept of providing pricing signals which reflect the cost the user creates for that use is supported. This type of pricing system should in the urban area lead to alternative transport modes becoming more attractive to use through a greater equality in pricing. The extension of the pricing model to support a commercially based management regime, as is suggested in the document, would negate these benefits as the commercial manager seeks to maximise use rather than manage demand. The management of transport demand, particularly for the motor car, is seen as one of the major challenges facing major urban areas. Any management model that potentially promotes transport use could threaten the future of Christchurch.

It can be argued that the current pricing system, which includes an excise on the price of petrol and other road user charges, is an adequate pricing tool which only requires minor modification to achieve many of the outcomes sought.

Economics - the theoretical back drop for the pricing study is based on market economics. It is of primary concern that the pricing models discussed have never been trialed and are not operating anywhere in the world today. The basic premise is that the accurate pricing of road use will lead to the market delivering the ideal transportation use package; this is at best highly theoretical. Travel demand is `price inelastic' with road users generally willing to face major price rises in order to retain their personal transport choice and many not having any practical alternative to the private car (e.g. rural residents). It is obvious that a more holistic approach is needed to manage traffic demand with such approaches as parking restrictions and bus priority lanes. Pricing alone is extremely unlikely to lead to users making different choices.

A further problem with this approach is that to date it has been a road pricing study rather than a transport pricing study. This leads to an unfortunate focus on providing roads rather than considering transport options and other uses of the road. There is a lack of consideration of the primary transport options of passenger transport and cycling. This poor focus on alternatives is mirrored by the myopic view of the functions of a road. The road reserve, and therefore the road, serves a variety of different purposes beyond the simple movement of vehicles. It is a "public realm" and all that implies, a place of exchange, a corridor for services, a meeting place and is integral to the structure and life of a city.

Technology - the document places undue emphasis on developing technologies driving major structural change. The Study envisages that tools to price road use by distance travelled, by weight, time of day etc will become available in the near future. There are some examples around the world of transponders and other technologies being used but not at a general network level. These systems are being designed in particular for toll roads to reduce administration costs and to our knowledge have not been trialed at the total network level. While it is quite conceivable that in time there will be available cost effective and efficient methods for measuring use by weight, distance and time of day these systems are not available now and it is foolhardy to propose major change based on the possibility of technological solutions. Technology should be viewed as an enabling tool rather than a controlling tool and as such should facilitate change rather than determine it.

Road Ownership - the document discusses the possibility of creating an access charge instead of rates. In the urban environment, where the great majority of road is created through sub-division, the land owner pays for the road linkage strip as part of the land parcel cost. This payment provides the land parcel owner with the right of access irrespective of the improvements placed on the land; this right is set out in the Local Government Act (1974). It can be argued from this point that the land parcel owner, having met the access cost, should not meet any further costs associated with that access, and should not therefore be required to meet a payment equivalent to the continuing benefit from the access. Any move to require a payment would effectively be double-dipping. These issues should not be confused with the need to meet ongoing maintenance, renewals and improvements costs.

The document provides little clarity on who would own the roads under the commercial models and the relationship between the land owner and the asset manager. Further clarification is needed before this issue can be debated fully. Issues such as the right to charge utilities for use of space and pavement damage also require discussion.

Rates - the role of rates in roading has been debated by this Council as part of the revenue study. The concept of the roading network is that all parts of the network contribute to the benefit generated by the network as a whole. This leads to the conclusion that all roads should be treated equally irrespective of the traffic use and that the funding source(s) for these roads should be the same. Rates could meet the amenity costs such as footpaths (where there are no pedestrian safety issues), landscaping and other similar infrastructure with the road user charges meeting all road maintenance and development costs including the cycle network.

Community Involvement - there is only a nominal process implied for involving the community in this overall debate. While the local authority represents the community the implications of these options are far-reaching and will affect every road user and ratepayer. It is suggested that this Council be pro-active about publicising the current process and the implications for our ratepayers.

Management Reform and Road Pricing - this document takes for granted that the management structure and road pricing are absolutely linked while providing no evidence to back this up. There seems to be little actual relationship between the pricing and management aspects of the options with simply the more radical management reforms put alongside the high technology based pricing options. In reality there is no reason to assume that high technology pricing options could not be initiated within the current management structure in much the same way as New Zealand led the world in initiating one asset management system for all road controlling authorities - RAMM.

Management Options - there is little or no detail provided on how the new commercial management options would actually work which makes it difficult to provide suitable comments. Of great concern however is the overall intent of introducing either a Local Authority Trading Enterprise or a State Owned Enterprise into the urban environment. For rural roads the major factor for the road controlling authority is asset management with damage from forestry and dairy transport being of particular concern. For larger urban areas transport management, and in fact transport demand management, is the key factor. Transport management is inherently tied up with land use planning and urban growth strategies, both of which are statutory functions. Further to this the Regional Authorities are also involved with their role in passenger transport. To introduce a commercially minded operator into this already confusing area is simply a recipe for disaster.

Discussion Document and Process - this discussion document could potentially lead to significant reform of local authority involvement in roading. Despite the significance of these possible outcomes the document provides little hard evidence to support its philosophical approach and is certainly not clear enough to enable worthwhile debate on the issues. The process and time frame has been reduced to match a perceived need to move quickly on this total package. It is unclear where this sense of urgency comes from except from the `funding shortfall crisis' which, as discussed above, could be easily resolved.

CONCLUSION

Council's Viewpoint

Discussion at the 3 July Seminar on these issues focused on the primary issues and options that Council support. The major issue is seen as local authority retention of the ownership and control of the asset. While the road corridor does provide for the movement of vehicles it is also integral to the form of the city providing the place for meetings, commerce and communication. The road space in Christchurch is vital to providing the 'Garden City' image as it links our major natural environmental assets and our parks. The seminar supported an option that provides the city with the necessary control over this major asset while providing the funding flexibility to meet transport goals. This in effect built on Option 3 - The Business Model utilising the asset management regime to determine maintenance funding levels and a package funding approach to transport improvements which balances the need for more road space with passenger transport and cycling options.

Submission Process

It is proposed to include the above comments in a two part submission on both the Land Transport Pricing Study and the Road Management Reform study. The above comments will be included as part one for both submissions and the second part will consider the various options set out in both documents. It is possible that a third submission may also be prepared based on the above comments, and the recent Regional Council workshop, for the National Land Transport Strategy. Further opportunity for comment by the Council is provided for in the total consultation process.

This Council's submissions will be dovetailed with Local Government New Zealand's submissions as far as practicable.

Recommendation:

1. That the Council delegate joint authority to the Strategy and Resources and the City Services Committees to approve the Council's submission on the Land Transport Pricing Study: Options for the Future document, the Road Management Reform document and the Draft National Land Transport Strategy document.

2. That the Council prepare and distribute publicity for all Christchurch residents setting out the issues involved in the Land Transport Pricing Study: Options for the Future document.

3. That a special joint meeting of the Strategy and Resources and City Services Committees be held at 11.00 am on Tuesday 12 August 1997 to approve the Council's submissions on the above documents.

6. PAYMENT TO NON-ELECTED MEMBERS ON COUNCIL COMMITTEES RR 5605

Officer responsible Authors
Director of Policy Councillor David Close, Jonathan Fletcher
Corporate Plan Output: Conduct of Council Business

The purpose of this report is to give the Council an opportunity to review its current practice regarding the payment of non-elected members participating on Council committees.

1. CURRENT PRACTICE

The current practice is for non-elected members participating as members of Council committees and sub-committees not to be paid the Council meeting allowance. The exception to this is that by resolution of the Council on 6 April 1993 non-Councillor members of the Resource Management (and City Plan) hearing panels are paid the same meeting attendance rate as Councillors. I understand this exception was brought in to cover the case where Community Board members were sitting on hearings panels but that the practice has been extended to non-elected member appointees to City Plan hearings panels. It is worth noting that the Council has a policy of paying a meeting allowance to elected members formally appointed to represent the Council on outside organisations.

2. THE LEGAL SITUATION

The Local Government Act allows (but does not require) a Council to pay non-elected members formally appointed to Council committees (including sub-committees and ad hoc committees) and specifies that if they do so it should be at the Councillor rate. The two exceptions to this are that the payment cannot be made to Council employees and cannot be made to people who receive remuneration for attendance at the meeting.

3. SCOPE OF NON-ELECTED MEMBER INVOLVEMENT

A significant number of people are involved in attending and participating in Council sponsored committees. The examples that I am aware of include:

(i) The Metropolitan Funding Committee which in accordance with Hillary Commission requirements has eight community representatives and meets twice a year;

(ii) The Community Funding Committee - each Community Board has one of these with about five community representatives on each and meets twice a year;

(iii) The Road Safety Co-ordinating Committee which has about 24 community representatives, including representatives from the Police, the ACC, the Canterbury Regional Council, Land Transport Safety Authority, Automobile Association and Health Authorities. The Committee meets approximately once per month.

(iv) The Recovered Materials Special Committee has approximately four outside appointees on it and meets monthly.

(v) The Waste Water Working Party has approximately 12 representatives drawn from interest groups with a special interest in the management of waste water that is discharged from the treatment plant.

(vi) The Cycle Sub-Committee has about ten members drawn from groups with particular interest in cycling and the issues involved in expanding cycling in Christchurch.

In addition to these Committees I understand that Community Boards have committees, other than the Community Funding Committees referred to above, that include non-elected community representatives.

4. DISCUSSION

It is reasonably difficult to estimate what it would cost the Council if it paid the full Council meeting allowance to all those to whom it could legally do so but it would cost in the order of $40,000-$70,000 per annum.

Many outsiders on Council committees can reasonably be seen to be there representing their organisations (either professionally or on a voluntary capacity) and it is arguably at least, that it is their parent organisation's responsibility to reimburse them for their attendance in the same way that the Council reimburses its elected members when they are formally appointed to represent the Council on outside organisations.

Similarly, elected members voluntarily participate in all sorts of committees for organisations outside the Council without receiving or expecting remuneration for doing so. Some of this participation is because they are elected members and some is in a strictly personal capacity. In a parallel way many members of the community are probably happy to participate on Council committees without expecting remuneration. Both Councillors and Community Board members participate in Council and Community Board working parties and similar committees in an unpaid capacity.

If the Council was to move to pay non-Council attendees on the Council committee then elected members may be less willing to participate in an unpaid capacity themselves. Further, it is somewhat misleading to say elected members are paid for committee participation because under the current rules regarding remuneration elected members are not paid per committee but per day on which they attend a formal meeting, so they are not paid extra for the second and subsequent meetings on that day.

As noted above, the Council is legally barred (and it would be inappropriate anyway) from paying people who participate on their committee as part of their paid employment. Drawing that distinction would be potentially difficult and embarrassing in come circumstances.

The parallel has been drawn between outsiders appointed to committees and the Council engaging a consultant. Consultants are of course paid, but the Council engaging a consultant is really the case of the Council hiring in some expertise of its own choice which it does not have available within Council staff. Consultants are paid to provide expert advice on which committees make decisions, they are not paid to attend meetings and make those decisions, so in my mind the parallel is not apt. Nevertheless there may be circumstances where outsiders appointed to committees are making an expert contribution beyond attending a decision making meeting, that is where the Council is using them as an expert consultant. In such circumstances it would seem appropriate for Council to agree to remunerate them for the work they put in over and above their attendance at meetings. I would draw parallels here with the practice, given recent publicity, of the Waitangi Fishing Commission, where Commission members were paid consultancy fees for expert advice they provided over and above their core work as members of the Commission.

5. CONCLUSION

As I hope can be seen from the above, the question of when and under what circumstances to pay non-councillors for participation on Council committees is a complex one to which there is no straightforward and all embracing answer. The Council is generally well served by the non-elected members who participate on its committees, and most appear to be happy to do it as part of their civic contribution to the community. To adopt a policy of generally paying all outsiders where that is legally possible, would create as many inequities as it solved and would remove an opportunity for voluntary participation, without there being any reason to expect the already high quality of contribution to be improved.

The case for payment is however strong where the time demand is high and ongoing (it would be exploitative not to pay outsiders participating on City Plan hearing panels for example) or where the outsiders are making a significant contribution of expert input outside the meeting attendance.

Recommendation:

1. That the Council confirm its current practice of, in general, not paying non-elected members appointed to Council committees.

2. That Committees appointing non-elected members to sub-committees of Standing Committees of the Council or Community Boards give consideration to paying such appointees for attending meetings under the following circumstances:

(a) They are not attending in the course of their paid employment;

(b) That the committee meets frequently over a period of six months or more.

Where payment is paid it should be at the rate that elected members are paid. All Committees are required to report annually at the end of the financial year any such appointments made, and the number of paid meetings attended by each appointee.

3. That where non-elected members appointed to committees are using their expertise and specialist knowledge to make significant contributions to the work of the Council above and beyond that required by attending meetings, the committee making the appointment give consideration to recompensing the appointees for this extra work on a consultancy basis.

7. REPORT FROM CHRISTCHURCH CITY HOLDINGS LIMITED RR 5615

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

The purpose of this report is to provide information to the Council on the activities of Christchurch City Holdings Limited and to advise the Council on action necessary in respect of the Selwyn Plantation Board Statement of Corporate Intent.

1. SELWYN PLANTATION BOARD LIMITED - STATEMENT OF CORPORATE INTENT FOR THE YEAR ENDING 31 MARCH 1998

The Board reviewed the Statement of Corporate Intent (attached) for the coming year and has sought further clarification on some of the information provided. At the Annual General Meeting on 24 June the identified issues were discussed and a process agreed upon to ensure the Council is fully informed of activities of the company including future directions. Christchurch City Holdings Limited now believe it is appropriate for the Council to approve the content of the Statement of Corporate Intent.

Recommendation: That the Council approve the Statement of Corporate Intent of Selwyn Plantation Board Limited for the year ending 31 March 1998.

2. CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED - CONSTITUTION AND REREGISTRATION

The Board of Christchurch City Holdings Limited reached agreement with the Crown on the content of the Constitution and the company has re-registered on 30 June 1997. The process has taken longer than expected as the Board was concerned to ensure that Council rights and the value of its majority shareholding were fully protected under the pre-emptive rights provisions.

Recommendation: That the information be received.

8. LEARNING POINTS TO THE PATHWAYS TO SUSTAINABILITY CONFERENCE HELD IN NEWCASTLE 1-5 JUNE 1997 RR 5606

Officer responsible Authors
Director of Policy Councillors Carole Anderton and David Close and Jonathan Fletcher
Corporate Plan Output: Public Accountability

The purpose of this report is to report on the learning points gained by attendance at this conference.

INTRODUCTION

The conference was designed to build on the June 1992 United Nations Conference on Environment and Development (UNCED) and the 1996 United Nations Habitat II Conference held in Istanbul. The focus was on moving the pattern of human settlements to a more sustainable future, and the emphasis was clearly placed on the role of local government in this and achieving the objectives of Agenda 21. Agenda 21 is the agenda for the 21st century drawn up at the UNCED Conference.

There were over a thousand delegates registered for the conference, the majority coming from Australia but with a significant contingent from New Zealand, including representatives from the four Auckland city councils, Western Bay of Plenty, Wairoa, Rotorua, Taupo and Hamilton City Council. There were also delegates from twenty other countries around the world ranging from South Africa, Sierra Leone, Nigeria and Tanzania to India, Philippines and Thailand.

The conference had full plenary sessions on the first and last days, but for the rest of the time operated in between two and seven streams. Rather disappointingly the conference proceedings which were distributed at registration do not contain a full set of conference papers and although a number of papers were photocopied and made available during the conference, the result is that there is no comprehensive set of papers available.

The conference had a very high profile within Newcastle and a high profile in Australia. It was addressed by both the Premier of New South Wales, the Honourable Robert Carr, and the Commonwealth Minister for the Environment, Senator Robert Hill. The profile of the Conference was particularly high in Newcastle because, although Newcastle is the largest city in Australia outside the State Capitals, it feels that it always suffers from being close to Sydney and saw this conference as an important opportunity to raise its profile. The City of Newcastle is also trying desperately to lose its nasty unpleasant steel town image, a process made more urgent but simpler by the recent announcement by Broken Hill Propriety Limited that it was closing its steel works in Newcastle. Actually BHP has been running down its activities in Newcastle over many years, but the final closure is a serious psychological blow to the city.

NEWCASTLE DECLARATION

One of the outputs of the conference was the Newcastle Declaration (copy attached), a statement on the importance of environmental and social sustainability and the role of local authorities in achieving this. This declaration had been prepared in draft during preparatory meetings before

the conference, was available to delegates on arrival and was extensively amended as a result of submissions by delegates. The declaration was presented to Senator Robert Hill, who is to present it to the United Nations Special Assembly on the Environment at the end of the month.

The conference was endorsed by the United Nations Environment Programme and the United Nations Commission for Sustainable Development (this commission was formed as a result of the UNCED Conference in June 1992), the International Union of Local Authorities, an organisation in which Australia has a far higher profile than we do, and the International Council for Local Environmental Initiatives. The conference had a range of sponsors, the major one being Energy Australia, which had a high profile throughout the conference, including sponsoring a large trade display of sustainable electricity production methods, particularly wind power and solar energy, both of which have a much higher significance in Australia than they do here.

1. Need to Arrest Environmental Degradation

In his opening address the Premier of New South Wales, the Honourable Robert Carr noted that 200 years of European occupation of Australia had caused as much environmental degradation to that country as had been caused in 400 years in Europe and North America. He cited as examples of degradation that two thirds of all Australian old forests had been destroyed and that at least 20 mammals had become extinct in that time. Despite our image we suspect the environmental degradation is much the same in New Zealand in slightly less time. Bob Carr went on to say that he saw the challenge facing his government to be stopping this degradation and gaining productive investment leading to employment growth fully compatible with preserving the natural heritage.

2. New South Wales Initiatives

Interesting New South Wales initiatives cited by Bob Carr included:

(i) A State Government investment of slightly more that $100m to help the timber industry move from using old forest to using plantation forests.

(ii) The village for the Sydney Olympics is to be a model of sustainable and low impact with houses designed to use 20 percent less energy than average and extensive provision for water recycling and reuse.

(iii) A sustainable energy development authority which has undertaken a number of initiatives to promote sustainable energy including a scheme where domestic electricity consumers are to be given the option of whether they want their electricity to come from sustainable rather than non renewable resources (the bulk of New South Wales electricity comes from coal fired generation). We understand the scheme will involve the consumers paying a small premium in exchange for the commitment.

(iv) The New South Wales Local Government Act has been amended to require local authorities to have regard to environmentally sustainable development in their decision making and to require an annual state of the environment report from each local authority.

3. Economics and the Environment

The opening key note address was given by Dr Vandana Shiva who is a physicist by training and now Director of the Research Foundation for Science Technology and Natural Resource Policy in New Delhi, India. Her presentation was entitled Women, Ecology and Development. In it she strongly made the point that sustainable development requires a shift in mindset from manipulation of the environment to adaptation to our environment. (This point was echoed by Ray Kelly, who gave the aboriginal perspective on sustainability.) Adaptation to the environment would involve, for example, moving from the Resource Management Act perspective of requiring mitigation of adverse effects to concepts like those behind the Natural Step work of Dr Karl-Henrik Robrt, which advocates that all systems be assessed to ensure that their net effect on the Earth does not damage its sustainability.

Dr. Shiva was also highly critical of modern economic accountability which she sees as drawing a line round the household and saying it is only activity that crosses this boundary that needs to be considered when compiling economic accounts (for example calculating GDP, assessing the economic health and well-being of the country). This she sees as patently absurd because, for example, it excludes from consideration all the nurturing and child raising that goes on within the household (unless undertaken by paid staff) and this activity is of critical importance to both the social and economic health of a community.

4. Impact of Globalism

Dr Shiva also expressed concern that the World Trade Organisation (the monitoring group set up as a result of the final round of the general agreement on tariffs and trade (GATT) negotiations) and international trade agreements, by lessening government and community control, makes it very easy for companies to move their economic activities from one country to another and diminish the extent to which a community can control its own destiny. This theme was taken up by Breda Cass, the Mayor of South Dublin City who, out of her experience with manufacturing plants moving, expressed concern that one community's growth should not be achieved at the expense of the demise of another's (for example Cedenco moving from Gisborne to Melbourne). Her thesis is that sustainable economic development is too important to be left to the market and all cities and communities will lose if we engage in a poaching and bribing campaign to attract business to our communities.

Mrs Cass argued strongly that the world trade organisation's rules governing free trade which are designed to ensure a level playing field, need to include agreed international minimum standards for environmental protection and for health and safety. Anything less slants the level playing field in the direction of the irresponsible. Similar calls were made later in the conference by Tim Noonan, Educational Director of the Confederation of Free Trade Unions, Belgium, and by Kerstin Sterner the Head of Corporate Communications and Environmental Development, Volvo Bus Corporation, Sweden. The latter was particularly interesting in that he saw life cycle environmental costs as being good selling points for products within sophisticated markets. However, he made a strong plea for international environmental standards because having to meet different standards in different markets meant product development and production became hugely expensive and in some cases created an effective barrier to international trade.

5. Clustering as an Alternative to Global Relocation

A further interesting perspective on the question of international mobility was given by Michael Murray from the Hunter Regional Development Organisation in Newcastle (roughly their equivalent of the CDC).

He had been very impressed with the work of Michael Porter and a New Zealand TRADENZ sponsored workshop on `clustering'. Clustering is the developing in the same geographical location of a centre for the production of a particular type of product (for example Hollywood, Silicone Valley).

The synergies that such clustering produces helps business grow for everybody. In particular, with a number of product producers in one area, small suppliers can develop local linkages and grow, core educational competencies and specialisations can be developed and hard networks can help others expand and reach export markets. Clusters also help to anchor a company into a community because the company finds that it is in a web of product and service providers which make moving to a new geographical location unattractive.

6. Sustainability in the Modern City

A major keynote presentation was given by Professor Newman, Director of the Institute of Social Science and Technology Policy at Murdoch University, Perth. Professor Newman started from the position that sustainability applied to Cities and towns requires an overlapping achievement of environmental, economic and social goals. To achieve this requires innovation in how we use energy, materials, water, waste and the natural setting. He sees innovation as involving a series of demonstrations at the local level which, while they may be seen as merely symbolic gestures initially, when tested and found to fulfil sustainable objectives can be mainstreamed. His paper presented a review of innovations from around the world in ecological urban renewal, green accounting, transit oriented development, `car-free' city design, new urbanist design, organic city processes and urban villages.

7. Urban Villages

Professor Newman is a strong advocate for what he calls `urban villages' as being an environmentally sustainable and attractive concept suitable for New Zealand and Australia. An urban village is a carefully designed, pedestrian scale residential area complete with associated services and facilities. Within the `village' distances are such that travel is on foot or by bicycle. The villages would be built alongside transit corridors making movement between villages and to places of work, recreation and the city's commercial centre by public transport easy. Within these urban villages there would be a dense array of urban activities, and carefully designed open spaces all within a walking oriented environment. His contention is that if cities put their precious resources into building urban villages as well as the public transport links between them the pressure to sprawl the city outwards would be severely reduced. The result would be a pleasant and desirable urban environment which is much less resource hungry than the average modern Australian/New Zealand/ European city.

8. Keeping the Inner City Alive

Based on a review of European, in particular Danish and Scandinavian experience, Professor Newman had some interesting things to say about the keys to keeping the inner city alive. These he saw as including:

(i) Increasing evidence that low density cities equate to high car use and in turn to lower city wealth. That is, lower density cities require people to put more of their wealth into cars and private transportation and this detracts from the wealth creation opportunities in the city. He cites in support of this the development of growth and wealth of Stockholm, Singapore, Vancouver and Toronto;

(ii) To return to transit oriented cities, that is cities where there are readily accessible, good, effective public transport systems which make it very easy for people to come into the central city;

(iii) To make the city like a `good party' - so attractive that it drags people back into the streets;

(iv) Pedestrian scale central cities where cars are largely kept out become attractive places in which to live and quickly draw people back to the inner city.

(v) It is worth noting that pedestrianised areas both within `urban villages' and the central city are safe for children both because there are no motor vehicles and because there are always people in the area to prevent anything untoward happening.

An example he cited in support of his contentions was Copenhagen, which each year reduces its central city area parking by 3% and pedestrianises more streets. This is accompanied by a programme to refurbish and expand the stock of central city housing and add landscape features, sculptures and seating (there are now over 3,000 seats and numerous footpath cafes in central Copenhagen). The result is that the central Copenhagen area is thriving and social and recreational activity has tripled despite the Danish climate and that `Denmark has never had a strong urban culture'.

9. Markets For Recycled Materials

Breda Cass made the point in her address that local government recycling initiatives are often frustrated for want of markets and interestingly she cited the current European over supply of newsprint which left local recycling initiatives with the cost of storing large piles of unsaleable material. Part of the response to this is for national

governments and international agreements to take action to make use of recycled materials more attractive. However, the development of new markets for recyclable materials (as is the brief of our Recovered Materials Foundation) will also play a significant and growing part in ensuring best and proper use is made of recyclable materials.

10. Avoiding the Growth versus Environment Conflict

Ken Piddington the First Director of the World Bank and now a self employed consultant in Wellington, showed that a concern for sustainable development has become orthodoxy even within the World Bank by quoting the Bank Director as saying `the greatest challenge to the human race is to permanently eliminate poverty without destroying eco systems or cultures'. Responding to this challenge requires breaking the misguided myth that protecting the environment is the antithesis of development and growth in the economy.

In a highly entertaining and very enjoyable presentation Ernesto Sirolli who is Enterprise Facilitator of the Sirolli Institute in Bozeman USA, drew on his current work, his earlier work experience in Australia and his Italian culture to make a strong case for the importance of fostering and developing entrepreneurship in moving towards sustainability. His central thesis was the simple and obvious one that sustainability requires the development of eco industries and who is going to develop these industries except well motivated entrepreneurs, and they need to be cultured. He was very strong on the role of small business and hammered the point that Italy neither produces durum wheat, nor wool, nor hides, but has a world wide reputation for producing pasta, suits and shoes.

If we are to maintain and develop the economic base of our cities we need to capture the passion and enthusiasm of the kitchens and garages where people develop new ideas and turn them into marketable products. All small businesses require people who are passionate about production, marketing and keeping the books. Passion in all three areas is very unlikely to be found in one individual and therefore to foster the development of small business requires that we make it easy for people with passion in these areas to come together and form teams.

11. Regular Reports on the State of the Environment.

Further to the point that Bob Carr made about the New South Wales Local Government Act requiring local authorities to report on the state of the environment, state of environmental reporting is now orthodoxy in Australia at all of local, state, and federal level, and Local Government Australia has a manual on environmental management systems.

Recommendation: 1. That following appropriate advice from the Energy Manager, the Council discuss with City Holdings and Southpower the possibility of providing electricity to consumers with the option of purchasing electricity from new forms of renewable generation.

2. That the Council seek information from the Minister of the Environment, TRADENZ and other relevant government agencies, the Manufacturers Association and the NZ Council of Trade Unions on the prospect of developing global health, safety and environmental protocols for industry.

3. That information on industry "clusters", profit making nil-emission processes, and innovative energy-efficient technology be referred to the Canterbury Development Corporation and Council units as appropriate.

4. That Professor Peter Newman be invited to run a workshop for all Councillors when he visits Christchurch for the Canterbury Dialogues Seminar.

5. That following Professor Newman's visit, the Community Services Committee and the Environmental Committee consider the extent to which the urban village concept can be applied in Christchurch.

6. That the delegation to the Bertelsmann meeting in Farum, Denmark, use the opportunity to study central city invigoration policies in Copenhagen.

PART B - REPORTS FOR INFORMATION

9. DEPUTATIONS BY APPOINTMENT

HEART UNIT APPEAL

Mr Richard Webb (Chief Executive, Canterbury Health), Dr Hamid Ikram (Cardiologist) and Mr Neil Columbus (Canterbury Cardio-thoracic Appeal Committee) spoke in support of their submissions for a Council grant towards the cost of establishing a cardio-thoracic unit in Christchurch.

10. CENTRAL CITY PARKING BUILDINGS RR 5611

The purpose of this report was to address the question as to why the Council owns and/or operates car parking buildings in the central city. This matter had been raised from time to time and through submissions on the Annual Plan.

The Committee decided:

(a) That a report be prepared on the income stream from the Council parking buildings by way of parking fees and rental; and

(b) That benchmarking be carried out with other parties as far as possible.

A show of hands was called for when this recommendation was moved and carried by four votes to two.

11. COST ESTIMATES FOR RECYCLED PAPER RR 5603

This report advised the Committee of the estimated additional financial cost to the Council of purchasing recycled photocopy paper and stationery to replace the present virgin supply, and to seek approval for additional funds to cover these costs.

The Committee decided that the Council agree to use New Zealand made recycled paper for photocopying and letterhead stationery, subject to confirmation of the feasibility of so doing, and the success of a pilot scheme, and that the Inventory Manager advise the cost of this to the Strategy and Resources Annual Plan Working Party.

12. REMOVAL OF SOUTH ISLAND POWER PRICE DIFFERENTIAL RR 5478

The purpose of this report was to update Councillors on the latest developments in respect of the above issue.

As Councillors will be aware from media reports, the Government proposes to remove the South Island power price differential from 30 September this year. The decision is very disappointing given the compelling case South Island local authorities put to the Minister of Energy on 26 June 1997.

A legal opinion from the Legal Services Manager on the legal options open to the Council in terms of the removal of the differential is being formulated as information becomes available.

The Committee received the information.

13. ORDERS FOR SUPPLIES EXCEEDING 50% OF DELEGATED AUTHORITY RR 5594

The purpose of this report was 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
Traffic Control Systems Ltd Supply ANTTS Equipment $55,860.00 City Streets Manager
Works Operations Unit Purchase of Pipebursting Equipment $78,000.00 Works Operations Manager
Computerland Christchurch Computer Equipment $79,129.00 MIS Manager
Gerry Pidgeon Ltd Waterloo Road Cycleway 96/97-287 $75,141.80
City Streets Manager
Te Mara Holdings Ltd Weed Control Area 2 96/97-308 $51,500.00
City Streets Manager
Te Mara Holdings Ltd Weed Control Area 3 96/97-309 $52,500.00
City Streets Manager
Kevin Horgan Ltd Rimu St/Rata Street 96/97-324 $86,500.00
City Streets Manager
Gerry Pidgeon Ltd Office Road/Stirling Street 96/97-331 $87,342.65
City Streets Manager
B D Construction Ltd Drummond Street Improvements 96/97-336 $57,942.00
Acting City Streets Manager
Works Operations Unit Burnbrae Street 96/97-341 $75,660.90
City Streets Manager
Taggart Earthmoving Ltd Awatea Road 96/97-348 $206,850.75 Director of Operations/ Director of Finance
New Zealand Police Purchase of Speed Detection Equipment $88,699.71 Acting City Streets Manager
John Giltrap Ltd Waterloo Road Drain Naturalisation Lots 1 and 2 $58,000.00
City Design Manager

The information was received.

PART C - REPORT ON DELEGATED DECISIONS

TAKEN BY THE COMMITTEE

14. SUPPLEMENTARY REPORTS

CHRISTCHURCH DOMESTIC TOURISM - SPRING PROMOTION RR 5626

SPRINKLER SYSTEM - SHIRLEY LIBRARY/SERVICE CENTRE RR 5637

The Chairman sought the approval of the Committee to introduce supplementary reports on the above topics. The reasons why the report had not been included on the main agenda and why the reports could not wait for the next meeting of the Committee were explained to the Committee.

It was resolved that the reports be received and considered at the present meeting.

The meeting concluded at 7.27 pm

CONSIDERED THIS 23RD DAY OF JULY 1997

MAYOR


Top of Page ~ Council Proceedings ~ Council & Councillors

This page is not a current Christchurch City Council document. Please read our disclaimer.
© Christchurch City Council, Christchurch, New Zealand | Contact the Council