Official Information Request - 1 July 2018 (Museum)

Attachments:

• Extract - Council Committee Meetings
• Extract - Long-term Plan deliberations
• Correspondence with the Ministry for Culture and Heritage

Response:

Sent: Thursday, 26 July 2018 10:55 a.m.

Subject: TRIM: LGOIMA request " Museum repairs

I refer to your email of 1 July 2018 requesting various information on the Museum following the Kaikoura earthquake, and respond below as per your correspondence:

1. Please update the information provided under LGOIA on 16 May 2018.

The information provided under LGOIMA on 16 May is still current.

2. What adjustments have been made since to the estimate of $32 million for the required maintenance, earthquake strengthening and restoration of the Museum, and why?

No adjustments have been made to this estimate at this stage.

3. Can I please have copies of all relevant reports, advice and assessments from assisting engineers, consultants, specialists and quantity surveyors related to the repair, earthquake strengthening and restoration of the Museum?

A hard copy of the Detailed Seismic Assessment Report has been made available for you.

Please contact Kim McGrath (kim.mcgrath@rotorualc.nz) to arrange pick up of this document.

4. Can I please have copies of all relevant minutes of committee meetings, including from Audit and Risk Committee?

Attached are extracts from the minutes of the following Council/Committee meetings:

• Council (Annual Plan deliberations) - 6-7 June 2017
• Audit & Risk Committee - 30 August 2017
• Operations & Monitoring Committee - 5 October 2017
• Strategy, Policy & Finance Committee - 15 March 2018
• Audit & Risk Committee - 22 May 2018
• Council - 28 June 2018

Long-Term Plan

5. What were the nature and outcomes of consultations for the 2018-2028 Long-Term Plan related to the repair, earthquake strengthening and restoration of the Museum?

Attached is an extract from the agenda and associated minutes of the Strategy Policy & Finance Committee meeting (Long-term Plan deliberations) of 16-17 May 2018

6. What exactly is meant by Council when it defined the repair, earthquake strengthening and restoration of the Museum to be 'a priority during the term of the plan'?

Council sees the opening of the Museum as a priority for the community as it adds significant cultural and heritage wellbeing.

7. What repair, earthquake strengthening and restoration components have been costed, however estimated, and scheduled in the LTP just approved, as minor or capital works?

The Museum repairs are currently under developed design with initial estimates expected in the latter part of this year.

Insurance

8. What type(s) of insurance did the Museum have at the time of the Kaikoura earthquake?

Material Damage Policy

Fine Arts Policy

Did it have 'loss of income' insurance?

Business Interruption Policy

9. How much was the Museum and its collections insured for, by type of insurance?

Material Damage - $56 million

Fine Arts - $40 million

Business Interruption - For a maximum of up to 2 years loss of revenue

10. How much was the excess on each policy?

Fine Arts - earthquake deductible $25,000

Combined Material Damage and/or Business Interruption - Natural disaster excess is 10% of the total material damage sum insured ($56,196,950) = $5,619,695

11.What was Council's assessment of risk regarding the degree of excess?

Council receives professional advice from AON.

12. When were revaluations done for its insurable value in the five years before the Kaikoura earthquake?

Council has valuations carried out by a Registered Valuer every second year with the last one before the event carried out on 30 June 2015.

13. Can I please have copies of correspondence regarding insurance payouts since the earthquake?

The insurers have been notified. No formal claim has been lodged at this time because Council is still working towards quantifying its loss.

Finances

14. How much was the annual net profit from the income generated by the Museum for the five years before the earthquake?

15. What has the annual loss of income since the Museum's closure been estimated at?

Council estimates loss of income for the 2016/17 and 2017/18 years to be at least $2.2m per year.

16. What is the capacity of the Museum to repay any loans once it is up and running again?

The Museum is part of Rotorua Lakes Council so any capacity to repay loans is covered to Council.

17. What are the current annual storage costs for the Museum's holdings, including taonga, collections and art?

Council owns the building which is currently storing the Museum holdings. The only costs are the operational costs (electricity, rates etc).

18. Can I please have copies of correspondence with national government and agencies related to the repair, earthquake strengthening and restoration of the Museum over the same period?

Copy of correspondence attached.

As per the Act, we are obliged to advise that you may contact the Ombudsman at the address below if you have any concerns with the response provided by Council, by writing to:

The Office of the Ombudsman

PO Box 10 152

WELLINGTON 6143

Alternatively, you may email info@ombudsman.parliament.nz or use the online complaints form available at www.ombudsman.parliament.nz/make-a-complaint.

Regards