Corporate and Financial Committee met today

The Corporate and Financial Committee today discussed progress on the Council’s insurance claim for earthquake damage.

A report considered by the Committee shows the Council has so far claimed $557.4m from its insurers and the Crown, and has received payment of $407.5m. The outstanding balance is split equally between the two parties. These figures exclude CERA's share of the rebuild.

Committee Chair Helen Broughton says the Committee was pleased to see this insurance information made public. The Committee have asked staff for further information about the level of insurance the Council had before the earthquakes and how the decision about the level of insurance for each major asset was made.

“The Committee would like to fully understand our current situation, and ensure we get our full insurance entitlement for each major asset. It needs to be made clear that most of the additional funds required to bring major facilities up to 100 percent of the New Building Standard was budgeted for in our annual plan process, signed off in June 2012.”

The Committee asked staff to provide all the reports received for insurance valuation purposes of the major assets. The Committee also requested an updated statement of position on the Town Hall from the Council’s insurer before the Council meeting at the end of November.

“There is urgency in receiving a statement of position around the Town Hall from the insurer with the upcoming Council decision on its future,” says Councillor Broughton.

Corporate Finance Unit Manager Diane Brandish says before the earthquakes the Council’s assets were insured for close to $1.9 billion on a full-reinstatement basis. The valuations were based on independent technical advice received from professional valuers in 2010.

“It will be years before all our negotiations with insurers will be completed and, as many people in Canterbury have discovered, it’s not always a straight-forward process. But residents can be assured we will continue to seek the best deal for our city,” says Diane Brandish.

       Read the report as an agenda item here

Rates postponement for vacant residential red zone land

The Committee is recommending to Council that it remits all late payment penalties on vacant and residential on flat land under construction at 22 February 2011 in the residential Red Zone until the earlier of 30 June 2013 or the date when the property is sold to the Crown and asked staff to prepare a report investigating doing the same for similar residential Red Zoned hillside properties.

Temporary customer service facilities in Hornby

The Committee discussed expanding the temporary walk-in customer service it offers in Hornby by expanding the range of services offered at Civic Video Store and was divided on this option. It agreed to ask staff to investigate if increased costs of working insurance would cover the estimated $65,000 cost of setting up a dedicated temporary service centre in the Hornby area to replace the centre closed in Sockburn.