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Annual Report for the Period Ended 30 June 2016

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Annual Report for the Period Ended 30 June 2016 G71 Annual Report For the period ended 30 June 2016 The first 76 days Annual Report For the period ended 30 June 2016 Ōtākaro Annual Report 2016 1 Ōtākaro Limited Purpose Statement The purpose of Ōtākaro Limited is to add value to Anchor Projects and Crown Land in a manner that balances a desire to achieve good commercial outcomes against the Crown’s regeneration objectives, and supports the Crown’s exit over time on favourable terms. From Ōtākaro Limited Constitution 2016 Ōtākaro Limited (Ōtākaro) was incorporated in February 2016 and in April 2016 it took over responsibility for some of the functions previously carried out by the Canterbury Earthquake Recovery Authority (CERA). The title of this report refers to the number of days from 16 April to the end of the financial year, the first days of operation. 2 The First 76 Days Contents Contents 5 Part 1: Context 33 Part 6: Governance 7 Functions and operations 35 Organisation form 7 Adaptability 35 Management of the Company 35 Board of Directors 9 Part 2: Organisational health and capability 35 Board members 10 Ōtākaro values and behaviours 36 The Board 10 Health and safety 37 Board committees 10 Capability development 37 Indemnities and insurance 11 Ensuring Ōtākaro is a good employer 38 Disclosure of interests by Directors 15 Part 3: Chair and Chief Executive’s letter 41 Part 7: Financials 17 A strong foundation 43 Statement of Responsibility 17 A focus on progress 44 About this report 17 A unique opportunity 46 Significant matters in the financial period 17 What’s next? 52 Section 1: Financial performance 19 Part 4: Financial summary and achievements 59 Section 2: Assets 63 Section 3: Managing funding 23 Part 5: Anchor Project snapshots 67 Section 4: Other 24 Canterbury Earthquake National Memorial 70 Remuneration report 25 Avon River Precinct 72 Independent Auditor’s report 26 East Frame Public Realm and Residential Precinct 27 South Frame Public Realm 28 An Accessible City 29 Convention Centre Precinct 30 Metro Sports Facility Ōtākaro Annual Report 2016 3 PART 1: Context Ōtākaro Annual Report 2016 5 PART 1: Context “Ōtākaro is delivering defined Anchor Projects and a Crown owned land divestment programme that is consistent with the Christchurch Central Recovery Plan.” 6 The First 76 Days PART 1: Context Ōtākaro Limited (Ōtākaro) was FUNCTIONS AND OPERATIONS incorporated in February 2016. In April The Board provides strategic direction to the Chief Executive to ensure decisions are made in the interests of 2016 it took over responsibility for some the people of Christchurch and the Crown. The Company of the functions previously carried out manages its functions and operations in a way that is by the Canterbury Earthquake Recovery consistent with the strategy set out by the Board. Authority (CERA). The Board also provides the governance and assurance that Management is delivering the expected outputs. The Chief Scope Executive has appointed a Senior Leadership Team to assist Ōtākaro is delivering defined Anchor Projects and a Crown in providing supervision and oversight of the day-to-day owned land divestment programme that is consistent with operational activities of the Company. the Christchurch Central Recovery Plan (CCRP). The organisation has five core teams. A Project The overarching responsibilities of Ōtākaro include: Development Team is focused on the delivery of Anchor • Delivery of defined Anchor Projects by providing Projects, and a Strategy and Property Opportunities Team procurement, design management and construction is focused on land opportunities and divestment. These management services on behalf of the Crown functions are supported by Corporate Services, General • Providing programme governance, including risk, cost Counsel/Legal and Communications teams. and schedule management The Company’s activities are guided by policies and • Divestment of Crown owned land in central procedures that ascribe to good corporate discipline with Christchurch and the Residential Red Zone clear links to the organisation’s overarching responsibilities. (if transferred), in a manner that balances a desire to In addition, the Company’s values and behaviours support achieve good commercial outcomes against the Crown’s the organisation to deliver on its purpose. regeneration objectives ADAPTABILITY • Acting in a manner consistent with recovery plans and The Company was established with the understanding that any regeneration plans. it has a finite lifespan, subject to further decisions by the Crown. The Company’s organisational structure reflects the need for adaptability. This means that the Company must be able to adapt to the changing requirements of its programme and projects. Ōtākaro Annual Report 2016 7 8 The First 76 Days PART 2: Organisational health and capability Ōtākaro Annual Report 2016 9 PART 2: Organisational health and capability ŌTĀKARO VALUES AND BEHAVIOURS HEALTH AND SAFETY Ōtākaro is developing an organisational culture that As a Crown Company operating in a construction supports the delivery of its activities. This culture is defined environment, Ōtākaro will be a health and safety leader and by specific, straightforward values which set out the ensure compliance with the Health behaviours expected of all employees. and Safety Work Act 2015. These values are: Ōtākaro is committed to a culture that holds safety as a core part of the Company’s identity. • Keep it simple The Company is doing this through: • Make it happen • The Board and Management modeling behaviors that it • Do what is right. expects from staff and contractors By working with its employees, specific behaviours have • Establishing best practice health and safety approaches been defined to “model” and to support the values of in the field and in the office environment, monitoring Ōtākaro. These behaviours include: adherence to these practices and taking immediate • Acting with purpose, and staying focused corrective actions, if required • Doing things efficiently • Ensuring that the Company, and those working for it, meet all health, safety and environmental regulatory • Considering the audience obligations. • Communicating clearly, consistently and concisely CAPABILITY DEVELOPMENT • Knowing and playing your part Ōtākaro supports its staff to achieve the Company’s objectives and purpose, by: • Doing what you say you will do • Developing staff for their current roles, providing • Being innovative flexibility to move staff to other roles in the Company, • Doing things promptly, but properly and preparing staff for their next career steps • Acting with integrity and respect • Regularly reviewing the capability of • Supporting one another its people to align the available skills with • Making the “tough” calls when necessary the requirements of the project development lifecycles • Being professional and “down to earth”. • Achieving high levels of staff engagement • Providing a safe environment for staff • Delivering services required to achieve the Company’s objectives in a cost-effective manner • Providing staff with reliable, secure and cost-effective technology • Providing a sound financial and internal control environment. 10 The First 76 Days PART 2: Organisational health and capability ENSURING ŌTĀKARO IS A GOOD EMPLOYER ŌTĀKARO VALUES: The successful delivery of the Anchor Projects and the Crown’s central Christchurch land divestment objectives depend on the technical, commercial, financial and investment/divestment expertise of Ōtākaro personnel. Keep it The Company has sought to attract and retain skilled staff, to be a good employer and to offer an attractive place to work, with a culture that is valued by employees and simple supports the Company in delivering its purpose. Consistent with the State Services Commission Guidance on Expectations for Pay and Employment Conditions in the State Sector, Ōtākaro employment policies also aim to ensure that the Company respects its equal- Make it opportunity responsibilities. happen Do what is right Tom Hepi, Health and Safety and Environment Manager at Ōtākaro. Ōtākaro Annual Report 2016 11 PART 2: Organisational health and capability Andrew Trevelyan (Communication Manager, Internal) and Shaun Jarmai (Project Manager, Avon River Precinct) at The Terraces near Worcester Street. 12 The First 76 Days PART 2: Organisational health and capability Left to right: Gabrielle Bettany (Assistant Project Manager, An Accessible City), Simon Thompson (Commercial Manager), Bruce Apperley (Project Manager, Avon River Precinct) and Keith Beal (General Manager, Strategy and Property Opportunities) discussing Ōtākaro Anchor Projects. Ōtākaro Annual Report 2016 13 PART 3: Chair and Chief Executive’s letter Ōtākaro Annual Report 2016 15 PART 3: Chair and Chief Executive’s letter Albert Brantley and Ross Butler. 16 The First 76 Days PART 3: Chair and Chief Executive’s letter DEAR SHAREHOLDERS WHAT’S NEXT? This is the first Annual Report for Ōtākaro Limited. It covers The Christchurch central city is a hive of regeneration activity. the period from 17 February 2016 to 30 June 2016. Ōtākaro is mindful that the central city is a highly visible place to operate. It needs to ensure that Crown-led Anchor A STRONG FOUNDATION Projects are delivered as expected, and when promised, which An Establishment Team of advisors assisted with the setup will also grow and maintain confidence in its work. of the Company to enable a smooth transition from the In August and September 2016, Ōtākaro reviewed the Canterbury Earthquake Recovery Authority, to sustain scheduling for
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