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Corporate and Financial Committee Agenda

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Corporate and Financial Committee Agenda CORPORATE AND FINANCIAL COMMITTEE AGENDA FRIDAY 5 APRIL 2013 AT 9AM IN COMMITTEE ROOM 1, CIVIC OFFICES Committee: Councillor Helen Broughton (Chairperson), Councillors Ngaire Button, Tim Carter, Jimmy Chen, Jamie Gough and Yani Johanson Principal Adviser Committee Adviser Paul Anderson Rachael Brown Telephone: 941-8528 Telephone: 941-5249 PART A - MATTERS REQUIRING A COUNCIL DECISION PART B - REPORTS FOR INFORMATION PART C - DELEGATED DECISIONS INDEX ITEM DESCRIPTION PAGE NO. NO. PART C 1. APOLOGIES 1 PART B 2. DEPUTATIONS BY APPOINTMENT 1 PART A 3. DRAFT STATEMENTS OF INTENT FOR CIVIC BUILDING LIMITED, TUAM LIMITED, 3 WORLD BUSKERS’ FESTIVAL TRUST, ROD DONALD BANKS PENINSULA TRUST AND RICCARTON BUSH TRUST PART A 4. DRAFT STATEMENTS OF INTENT FOR CHRISTCHURCH AGENCY FOR ENERGY 5 TRUST BOARD, VBASE LIMITED AND NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY LIMITED PART A 5. DRAFT STATEMENTS OF INTENT FOR CHRISTCHURCH CITY HOLDINGS LIMITED, 51 ORION NEW ZEALAND LIMITED, CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED, LYTTELTON PORT COMPANY LIMITED, ENABLE SERVICES LIMITED, CITY CARE LIMITED, RED BUS LIMITED, ECOCENTRAL LIMITED AND CANTERBURY DEVELOPMENT CORPORATION HOLDINGS LIMITED PART A 6. 2012/13 HALF YEAR FINANCIAL STATEMENTS FOR CHRISTCHURCH CITY 267 HOLDINGS LIMITED AND NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY LIMITED PART A 7. PROPERTY OPTIONS 36 WELLES STREET CENTRAL CITY 305 PART B 8. EARTHQUAKE FINANCIAL REPORT FOR FEBRUARY 2013 309 PART B 9. CORPORATE FINANCE REPORT FOR PERIOD ENDED 28 FEBRUARY 2013 317 We’re on the Web! www.ccc.govt.nz/Council/Agendas/ CORPORATE AND FINANCIAL COMMITTEE 5. 4. 2013 PART B 10. THE APPOINTMENT OF DIRECTORS TO NON-CCHL MANAGED COUNCIL- 323 CONTROLLED ORGANISATIONS. PART C 11. RESOLUTION TO EXCLUDE THE PUBLIC 329 1 CORPORATE AND FINANCIAL COMMITTEE 5. 4. 2013 1. APOLOGIES Nil. 2. DEPUTATIONS BY APPOINTMENT Taz Mukorombindo from the Canterbury Business Association has requested to speak to the Committee in relation to Clause 9 regarding property options at 36 Welles Street, in particular the criteria for selection of the potential tenants and the proposed time frame to reach a decision. 2 3 CORPORATE AND FINANCIAL COMMITTEE 5. 4. 2013 3. DRAFT STATEMENTS OF INTENT FOR CIVIC BUILDING LIMITED, TUAM LIMITED, WORLD BUSKERS’ FESTIVAL TRUST, ROD DONALD BANKS PENINSULA TRUST AND RICCARTON BUSH TRUST General Manager responsible: General Manager Corporate Services, DDI 941-8528 Officer responsible: Corporate Finance Manager Author: Patricia Christie – External Reporting and Governance Manager PURPOSE OF REPORT 1. This report presents the draft Statements of Intent (SOI) of the Council Controlled Organisations (CCOs) for the year ended 30 June 2014, for review and comment. 2. The SOIs from the following organisations were separately circulated with the Committee’s 8 March 2013 agenda. Civic Building Limited (Attachment 1) Tuam Limited (Attachment 2) World Buskers’ Festival Trust (Attachment 3) Rod Donald Banks Peninsula Trust (Attachment 4) Riccarton Bush Trust (Attachment 5). 3. Also attached are comparisons between 2012/13 and 2013/14 SOIs for: Civic Building Limited (Attachment 6) Tuam Limited (Attachment 7) World Buskers’ Festival Trust (Attachment 8) Rod Donald Banks Peninsula Trust (Attachment 9) Riccarton Bush Trust (Attachment 10). 4. The CCOs are required by statute to submit an annual SOI to Council. A SOI must set out the entity’s objectives and performance measures, as well as certain other information. 5. CCOs are required by the Local Government Act 2002 to deliver to their shareholders a draft SOI on or before 1 March. The CCOs must then consider comments on their draft SOI from their shareholders received by 1 May, and then issue a final SOI by 30 June. 6. Other than Tuam Limited there are no major surprises or changes in direction signalled in the attached documents. 7. Tuam Limited is currently negotiating the sale of its properties to the CCDU and has drafted its SOI on the basis that properties have been sold. This has necessitated a change in the company’s objectives from owning and managing the former Council Civic buildings and adjacent Tuam Street car park on a commercial and co-ordinated basis consistent with the Council’s strategies and plans, to investing in other commercial property that is consistent with the Council’s strategies and plans. As the sale negotiations have not yet concluded no financial performance targets have been included. Tuam does state that it intends repaying its $4.75 million loan from Council from the proceeds of the sale. 8. Riccarton Bush Trust and World Buskers’ Festival Trust receive grants from the Council. As the Christchurch City Three Year Plan is currently in its consultation period the final grant amounts are subject to change. It is noted that these organisations will amend their SOIs if necessary to reflect the final grant amounts once the Christchurch City Three Year Plan is approved. 9. Specific comments on each organisation are provided in the respective attachments above. FINANCIAL IMPLICATIONS 10. Not applicable. 4 CORPORATE AND FINANCIAL COMMITTEE 8. 3. 2013 3 Cont’d Do the Recommendations of this Report Align with 2009-19 LTCCP budgets? 11. Yes. LEGAL CONSIDERATIONS 12. Not applicable. Have you considered the legal implications of the issue under consideration? 13. Yes. ALIGNMENT WITH LTCCP AND ACTIVITY MANAGEMENT PLANS 14. Not applicable. Do the recommendations of this report support a level of service or project in the 2009-19 LTCCP? 15. Not applicable. ALIGNMENT WITH STRATEGIES 16. Not applicable. Do the recommendations align with the Council’s strategies? 17. Yes. CONSULTATION FULFILMENT 18. Not applicable. STAFF RECOMMENDATION That the Committee recommend to the Council that it: (a) Review the draft Statements of Intent for: (i) Civic Building Limited (ii) Tuam Limited (iii) World Buskers Festival Trust (iv) Rod Donald Banks Peninsula Trust (v) Riccarton Bush Trust. (b) Advise officers of any other comments it wishes to make on the draft Statements of Intent. 5 CORPORATE AND FINANCIAL COMMITTEE 5. 4. 2013 4. DRAFT STATEMENTS OF INTENT FOR CHRISTCHURCH AGENCY FOR ENERGY TRUST BOARD, VBASE LIMITED AND NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY LIMITED General Manager responsible: General Manager Corporate Services, DDI 941-8528 Officer responsible: Corporate Finance Manager Author: Patricia Christie – External Reporting and Governance Manager PURPOSE OF REPORT 1. This report presents the draft Statements of Intent (SOI) for the Council Controlled Organisations (CCOs) for the year ended 30 June 2014, to the Committee for review and comment. 2. The SOIs from the following organisations are attached for information: Christchurch Agency for Energy Trust Board (Attachment 1) Vbase Limited (Attachment 2) New Zealand Local Government Funding Agency Limited (Attachment 3). 3. Also attached are comparisons between 2012/13 and 2013/14 SOIs for: Christchurch Agency for Energy Trust Board (Attachment 4) Vbase Limited (Attachment 5) New Zealand Local Government Funding Agency Limited (Attachment 6). 4. The CCOs are required by statute to submit an annual SOI to the Council. An SOI must set out the entity’s objectives and performance measures, as well as certain other information. 5. CCOs are required by the Local Government Act 2002 to deliver to their shareholders a draft SOI on or before 1 March. The CCOs must then consider comments on their draft SOI from their shareholders received by 1 May, and then issue a final SOI by 30 June. 6. Other than noted below, there are no major surprises or changes in direction signalled in these SOI. 7. It is noted that the Christchurch Agency for Energy Trust Board has received notice that Meridian Energy Limited, Orion New Zealand Limited and Solid Energy Limited (Renewables Division) will withdraw from the Trust from 30 June 2013 this will reduce the amount of revenue available to the Trust. 8. The Christchurch Agency for Energy Trust Board receives grants from the Council in the form of Appointer contributions and project funding. The Council has committed project and appointer funding until the end of the 2014/15 year. The Trust Board in its SOI has indicated that the Council would provide grant funding of $100,000 in the 2015/16 financial year. This has not yet been agreed and discussions are ongoing with the Trust Board. 9. Specific comments on each organisation are provided in the respective Attachments 4-6. FINANCIAL IMPLICATIONS 10. Not applicable. Do the Recommendations of this Report Align with 2009-19 LTCCP budgets? 11. Yes. LEGAL CONSIDERATIONS 12. Not applicable. 6 CORPORATE AND FINANCIAL COMMITTEE 5. 4. 2013 4 Cont’d Have you considered the legal implications of the issue under consideration? 13. Yes. ALIGNMENT WITH LTCCP AND ACTIVITY MANAGEMENT PLANS 14. Not applicable. Do the recommendations of this report support a level of service or project in the 2009-19 LTCCP? 15. Not applicable. ALIGNMENT WITH STRATEGIES 16. Not applicable. Do the recommendations align with the Council’s strategies? 17. Yes. CONSULTATION FULFILMENT 18. Not applicable. STAFF RECOMMENDATION That the Committee recommend to the Council that it: (a) Review the draft Statements of Intent. (b) Advise officers of any other comments it wishes to make on the draft Statements of Intent. ATTACHMENT 1 TO CLAUSE 4 CORPORATE AND FINANCIAL COMMITTEE 5. 4. 2013 7 STATEMENT OF INTENT FOR CHRISTCHURCH AGENCY FOR ENERGY TRUST BOARD, FOR YEAR ENDING 30 JUNE 2014 1. INTRODUCTION Legal Name: Christchurch Agency for
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