Category Archives: ORFU

DVML and the “Otago Rugby” deal (sponsorship and payments)

Is Terry Davies, chief executive of Dunedin Venues Management Ltd, telling porkies about the “Otago Rugby” deal signed in 2012 ???
(DVML/ORFU/NZRU)

Compare Mr Davies’ reply to Bev Butler today with information Whatifdunedin received from a source in mid-July 2014.

The reply to Question 1.(d) is interesting. Mr Davies states that none of the $3 million sponsorship was paid to ORFU but DVML does provide a staff member to assist ORFU with its sponsorship proposals. This is probably Paul Thompson. The other information from a source claims that DVML has to make up the difference to $1 million per year; this is paid to ORFU if less than $1 million in sponsorship is obtained. So the other staff member only spends one hour per week for six months each year?

Question 3. He says there’s no DVML company record of staff movements and NZ/overseas travel in approaching sponsors. Really? If true, that’s a large management failing which the DVML board is ultimately responsible for.

Why the discrepancies, Terry Davies ????

INFORMATION FROM SOURCE

Received mid-July [paraphrased]
Re the “Otago Rugby” contract – DVML did the Sponsorship but had to guarantee a certain amount. There was a heated exchange over this between Darren Burden (DVML chief executive) and one of his managers who said ‘we work for the ratepayers not rugby’. Burden was going to pay Otago the difference between what was raised and what DVML had to raise in the contract, despite Otago making a profit. The manager said DVML shouldn’t pay Otago, because they were deciding what was sponsorship and what was not.

[One day later]
The Otago Rugby deal is something like this:
DVML assist Otago Rugby with their sponsorship and the target is $1 million per year. DVML’s Paul Thompson was supposed to assist Otago Rugby. In the first two years, sponsorship didn’t reach the $1 million mark.
DVML still pays Otago Rugby to play at the stadium. Ask how much DVML have paid to Otago Rugby in the last two years to keep them afloat despite them making a profit.

[Two days later]
Not sure how it’s recorded in the DVML accounts, it was around $150k in the first year and similar in the second year. This is the difference between the $1 million DVML had to ensure ORFU got for sponsorship and what ORFU got. The deal lasts for three years. So this would be the last.

From: Bev Butler
To: Neville Frost [DVML]
CC: Kim Barnes [DVML]
Subject: LGOIMA Request: DVML Sponsorships
Date: Tue, 1 Apr 2014 08:57:35 +1300

Tuesday 1st April 2014

Dear Neville

It was reported in the ODT (22/03/14) that Mr Guy Hedderwick played an “integral” part in securing over $3 million in sponsorship for the stadium during the period ie Jan 2010 to Dec 2013.

I request:

1.
(a) How much of this $3 million figure has already been paid to DVML?
(b) Does DVML receive the full $3 million or does some other organisation receive some of this $3 million?
(c) How much of this $3 million is earmarked for the ORFU with payments already received or payments yet to be received?
(d) What percentage of the sponsorships secured by Mr Guy Hedderwick and/or other DVML staff does the ORFU receive?
(e) Is the ORFU making any financial contribution to Mr Hedderwick’s salary or expenses? If so, what percentage?

2.
(a) Did Mr Hedderwick’s salary package include commission on any sponsorship agreements he secured in his role as commercial director of DVML?
(b) What percentage commission did Mr Hedderwick receive for the $3 million sponsorship agreements secured as reported in the ODT (22/03/14)?
(c) Did the commission payments received by Mr Hedderwick exceed the salary range as stated in the DVML annual reports? If so, on what date was the DVML board informed of this?

3.
Thank you for your recent email containing the list of Mr Hedderwick’s DVML business trips. In this list the main reason for the majority of these trips was “meet with potential sponsors”. I request the names of the sponsors which Mr Hedderwick was successful at securing coupled with the name of the city where he met these potential sponsors. For your convenience, I have supplied a summary of these cities and the number of times he visited each city. Note I have included only the cities where it is stated the reason for the trip being “meet with potential sponsors”.

City (Number of trips)………Names of Sponsors
Christchurch (11 times)
Singapore (once)
Sydney (once)
Auckland (20 times)
Wellington (4 times)
New Plymouth (once)
Rotorua (once)

Please respond electronically. Thank you.

Yours sincerely

Bev Butler

————————————

From: Bev Butler
To: Terry Davies [DVML]
Subject: LGOIMA Request: DVML Sponsorships
Date: Tue, 17 Jun 2014 07:06:59 +1200

Dear Mr Davies

I understand the LGOIMA request I sent below was delayed due to the investigation by Crowe Horwath. Now that the Crowe Horwath report has been released and the report does not answer these questions would you please respond to my LGOIMA request.

Thank you.

Yours sincerely

Bev Butler

————————————

From: Bev Butler
Sent: Monday, 28 July 2014 2:51 p.m.
To: Terry Davies
Subject: FW: LGOIMA Request: DVML Sponsorships
Importance: High

Monday 28th July 2014

Dear Terry

The LGOIMA request below is still outstanding and has now breached the 20 day requirement under the provisions of LGOIMA.

I would appreciate a response to this request.

Thank you.

Yours sincerely

Bev Butler

————————————

From: Terry Davies [DVML]
To: Bev Butler
Subject: FW: LGOIMA Request: DVML Sponsorships
Date: Fri, 1 Aug 2014 02:56:12 +0000

Dear Bev

Further to your email dated 28 July and original request of 1 April, please find attached the response. A copy of the letter has been posted to you today.

Yours faithfully
Terry Davies

CEO [DVML]

B Butler 310714 (PDF, 82.8 KB)
Terry Davies letter 1.8.14 (2)

Crowe Horwath report cover (May 2014)

Crowe Horwath Report – Review of DVML Expenses (PDF, 363 KB)

Posted by Elizabeth Kerr

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DCC: Residents’ Opinion Survey 2014

Remember last year’s DCC Comms spin on the ROS results?
Another farce this year, look at the Council’s headline.
[in case DCC won't say it] “DEEP DISSATISFACTION WITH STADIUM BLOWOUTS AND THE CITY’S STALLED ECONOMY”

████ DCC: Public finance forum [invitation]
Tuesday 12 August 2014 at 5:30 – 7:30 pm | Venue to be confirmed

DCC mayor and councillors (2013-14) 1
Residents’ Opinion Surveys
These surveys measure residents’ satisfaction with the Council’s performance and with Council owned facilities. The output of the surveys enables the Council to assess the extent to which the Council has met its performance objectives.

Dunedin City Council – Media Release
Residents’ Satisfaction Still on the Up

This item was published on 28 Jul 2014

Residents’ satisfaction with the Dunedin City Council’s performance continues to rise. Results of the 2014 Residents’ Opinion Survey, released today, show 58% of respondents are satisfied or very satisfied with the DCC’s overall performance. This is the highest level recorded since the question was first asked in its current form in 2003. The survey also shows significant increases in satisfaction with customer service (Customer Services Agency up nine percentage points to 88%), communication (FYI newsletter up seven points to 77%), the suitability of the roading network for cyclists (up seven points to 29%) and retention of businesses and jobs (up six points to 22%).

Acting General Manager Services and Development Nicola Pinfold says, “These substantial jumps in satisfaction are fantastic and reflect the organisation’s hard work and commitment.” Mayor of Dunedin Dave Cull says, “It’s great to see satisfaction with economic development and cycle facilities moving in the right direction. These are two key areas where the Council has been putting in a particular effort.”

Once again, satisfaction was highest with the Dunedin Botanic Garden, Otago Settlers Museum, Dunedin Public Libraries and rubbish collection – with satisfaction scores of more than 90% in these areas. Decreases in satisfaction were noted with the Dunedin Ice Stadium (down 10 percentage points to 71%), stormwater services (down seven points to 59%), the look and feel of the South Dunedin retail area (down six points to 25%) and traffic flow at peak times (down six points to 47%).

Survey respondents identified encouraging economic development, reducing DCC spending, debt and rates, providing cycleways and improving the look and feel of the city as the top priorities for the DCC over the next 12 months. Mr Cull says, “The overall results are pleasing and show the DCC is increasingly responding to the needs of Dunedin residents. The information gathered through the survey will help the Council as we begin preparing our Long Term Plan for 2015-25.”

Of 4,500 residents randomly selected from the electoral roll and invited to complete the survey, 1,248 did so – a response rate of 27.7%. A further 705 residents independently chose to complete the survey online. The results of the ‘opt-in’ sample are analysed separately, but still provide the DCC with valuable feedback on how it can improve its services. The survey was carried out by independent research company Key Research of Tauranga. [We can't possibly contract Dunedin companies because they might conduct honest research or sneak in survey questions DCC won't approve for the results it doesn't want, horror!]

www.dunedin.govt.nz/ros

Contact Mayor of Dunedin on 027 434 6917.

Related Posts and Comments:
27.6.13 State of the City —DCC or Dunedin? [2013 ROS here]
13.6.12 DCC: 2012 Residents’ Opinion Survey
25.4.11 Oh wait, you mean…. | 2011 Residents’ Opinion Survey
1.5.10 DCC: Residents’ Opinion Survey – complete it online
6.7.09 DCC 2009 Residents’ Opinion Survey

Posted by Elizabeth Kerr

35 Comments

Filed under Business, Carisbrook, COC (Otago), Construction, Cycle network, DCC, DCHL, DCTL, Delta, Democracy, Disinformation, DVL, DVML, Economics, Events, Geography, Highlanders, Hot air, Hotel, New Zealand, NZRU, NZTA, Offshore drilling, ORFU, People, Pics, Politics, Project management, Property, Queenstown, Site, Sport, Stadiums, Stupidity, Tourism, Town planning, University of Otago, Urban design

Greater Dunedin: developing image

Received from Anonymous
Fri, 25 Jul 2014 at 4:40 p.m.

Monkeys GD

Message: “Clever” monkey Cull would have to be the one on the left smiling and staring blankly into space. At least the other monkeys know something is wrong! An apt Dunedin variation on “see no evil, hear no evil, speak no evil”. Maybe a new logo for Greater Dunedin?
[ends]

Posted by Elizabeth Kerr

*Image supplied

1 Comment

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Eddie Cull suffering lead singer’s disease?

Received from Another Anonymous
Wed, 23 Jul 2014 at 8:05 p.m.

Gary Larson - The Far Side (undated cartoon) 2The Far Side (undated cartoon) by Gary Larson

Posted by Elizabeth Kerr

█ Urban Dictionary: lead singer’s disease

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Mosgiel Pool: Taieri Times, ODT…. mmm #mates

Taieri Times 23.7.14 Letter to the editor Miller p2Taieri Times 23.7.14 (page 2)

Brian Miller [otagofarmersmarket.org.nz]Received from Brian Miller
Wed, 23 Jul 2014 at 8:16 p.m.

Message: How’s this. I write about the pool trust declining to comment about my letter today (see Taieri Times) and they won’t publish it. Look at the weak excuse. Just who is the ODT protecting.

From: Bruce Quirey [mailto:bruce.quirey@odt.co.nz]
Sent: Wednesday, July 23, 2014 2:13 PM
To: Brian Miller
Subject: Re: pool trust

Brian,
I am not going to publish this latest letter in the Taieri Times, because I published a letter from you in today’s issue.
Yours faithfully,
Bruce Quirey
Co-ordinator
Taieri Times

Bruce Quirey
COPY DIRECTOR
Otago Daily Times

——————————————

On 23/07/2014 12:08 PM, Brian Miller wrote:

The Editor Taieri Times.

It is concerning that the Mosgiel Pool Trust is prepared to make public statements concerning the pool, but when questioned publicly to substantiate their claims, decline to comment. The Pool Trust is funded by the ratepayers, there is an expectation that those who pay the piper call the tune.
It would appear that the pool trust is not competent enough to deal with this project, or prepared to gain public support by keeping the public informed.
I now call upon the pool trust to resign, and for [the] Community Board who are our elected representatives to take back the control of the proposed Mosgiel pool facility on behalf of the community, that they are handsomely remunerated to represent on such issues. If the board is not prepared to be counted on this issue. Then they should consider standing down, and being replaced by those with a desire to represent their community, warts and all.
Regards,
Brian Miller.

Related Posts and Comments:
16.7.14 Stadium: Exploiting CST model for new Mosgiel Pool #GOBs
4.2.14 DCC: Mosgiel Pool, closed-door parallels with stadium project…
30.1.14 DCC broke → More PPPs to line private pockets and stuff ratepayers
20.1.14 DCC Draft Annual Plan 2014/15 [see this comment & ff]
16.11.13 Community board (Mosgiel-Taieri) clandestine meetings
25.1.12 Waipori Fund – inane thinkings from a councillor
19.5.10 DScene – Public libraries, Hillside Workshops, stadium, pools
12.4.10 High-performance training pool at stadium?

Posted by Elizabeth Kerr

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DVML catering and commercial kitchens….

FB Stadium: The exclusions included a kitchen fit-out, broadcasting facilities, electronic turnstiles, score boards and replay screens.

FB Stadium: On site commercial kitchens with secondary kitchen facilities on Level Two and Level Four
– Bar areas on Level Two and Level Four
– Suites and lounges on Level Four with air conditioning

Questions, questions.

Why is Dunedin Venues Management Ltd (DVML) getting rid of their employees in order to employ Compass Group (the caterers) employees?

Perhaps because Compass were going to pull out as it wasn’t viable to do business at the Stadium? If Compass pulled out they would make Dunedin City Council pay them back the $3 million they invested in catering equipment at the stadium?

Oi! What events?!

FBS kitchens [projectstainless.co.nz]Images: projectstainless.co.nz

Related Posts and Comments:
19.3.11 ‘Forsyth Barr Stadium Base Building Further Requirements’

Posted by Elizabeth Kerr

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Filed under Business, Construction, CST, DCC, Design, DVML, Economics, Events, Hot air, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Stupidity

Carisbrook Stadium Trust —were the trustees paid?

Supplied. The peculiar reply.
ODT 18.7.14 (page 16)

ODT 18.7.14 Letter to the editor Butler p16

█ The CST continues to be registered as a charitable trust with the Charities Commission. What is the trust’s current work all about? Are the trustees still being paid? From which funding source?

For more information, enter *carisbrook* in the search box at right.

Posted by Elizabeth Kerr

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Stadium: Exploiting CST model for new Mosgiel Pool #GOBs

Men who swim [kpbs.org] 1Synchronised: Highlanders-to-be (sports star training at Mosgiel)

Unaccepted for publication at ODT Online today. Aww.
Hard to sell at Logan Park
new
Submitted by ej kerr on Wed, 16/07/2014 – 11:49am.
What a fine accommodation for professional rugby this aquatic scheme for the Taieri truly is. Shades of the model so well utilised by the earlier trust named after Carisbrook and headed by Malcolm Farry, still operating as a boon to Dunedin city ratepayers. In the months ahead let’s see how many times the new patron leaves out the word ‘Rugby’ (capital R) or the phrase ‘private property development costs on the City’ in favour of philanthropic zeal expressed for healthy retirement living and enhanced aged care facilities (hydrotherapy for aching rugby shoulders and thighs), sunshine and splash for young families – don’t forget schools! – as the Taieri’s high class soils get carved and private forests near Brighton assist the housing build. Yeah, don’t say there’s merely a saint in goggles amongst us, Lord be praised, it’s the second Dollar coming. An epiphany.

ODT article: Gerrard backing pool bid

Related Posts and Comments:
15.7.14 Stadium: Who is being protected?
15.7.14 Rugby stadiums not filling #SkyTV
13.7.14 Great quote: men
12.2.14 DCC: Growth v development contributions
10.2.14 University of Otago major sponsor for Highlanders
4.2.14 DCC: Mosgiel Pool, closed-door parallels with stadium project…
30.1.14 DCC broke → More PPPs to line private pockets and stuff ratepayers
20.1.14 DCC Draft Annual Plan 2014/15 [see this comment & ff]
16.11.13 Community board (Mosgiel-Taieri) clandestine meetings
2.4.13 Dunedin: Developers stoop to resource consents instead of…
25.1.12 Waipori Fund – inane thinkings from a councillor
19.5.10 DScene – Public libraries, Hillside Workshops, stadium, pools
12.4.10 High-performance training pool at stadium?

Posted by Elizabeth Kerr

*Image: kpbs.org – Men who swim

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Stadium: Out of the mouths of uni babes…. #DVML

Illuminate 2014 [eventfinder.co.nz]Paint party at Fubar

ODT champions the stadium using the local (primary school for socioeconomics and slant misconstrued statistics) A+ student president. Was she invited to write the column or is she a Farry Follower (the next best thing since ‘Our Stadium’, not sliced bread). Aren’t Terry Davies and Nick Smith close in the ‘make it work’ factory. Let’s do some research, aye~!

Forsyth Barr stadium is important to and popular with students, writes Otago University Students Association president Ruby Sycamore-Smith.

### ODT Online Wed, 16 Jul 2014
Opinion
It’s here now, so make the most of it
by Ruby Sycamore-Smith
The future of Forsyth Barr Stadium is important to students. The OUSA represents just under 20,000 members of the Dunedin population and we are high users of the stadium. We see it as a great benefit to Dunedin people. The 2013 OUSA student survey of Dunedin facilities showed a very high satisfaction with the stadium. [...] The financial concerns cannot be ignored. And some of the antagonism caused by the provenance of the stadium remains to be settled. Our experience is that DVML is working to ensure the facility is used. We are working with them as much as possible for our own events but also events the DVML team brings to Dunedin that have student interest.
Read more

An obliviously astute and illuminated young woman.
Pride of the South.

Posted by Elizabeth Kerr

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Stadium: Who is being protected?

Received from Russell Garbutt
15 July 2014 at 4:30 PM

What is an advertisement, and what content of an advertisement needs to be able to be verified?

Readers of the Otago Daily Times, and followers of the on-going stadium debate which shows no signs of lessening in its intensity may be intrigued to know just where the sensitivities of the ODT lie.

Let us look at some simple facts which cannot be in dispute.

The Carisbrook Stadium Trust which was acting as an agent of the Dunedin City Council, decided to publish a full page advertisement in the 31 May 2008 issue of the ODT. The advertisement was headed up “The Facts about the New Stadium”.

In this advertisement it was claimed that “The funding target establishes a debt free stadium. On this basis the business plan for the stadium shows that it makes a profit. Unlike nearly all other Council owned facilities it will not need annual funding support. This assessment has been confirmed by two of New Zealand’s leading accountancy firms”.

This is published and accessible and the wording of the advertisement cannot be interpreted in any other way as the heading refers to all that followed as “facts”.

The advertisement also claimed that the Trustees of the CST were “committed to delivering this stadium, under budget, on time and to achieve its financial, social and economic goals”.

Now of course some advertisements for wrinkle cream use all sorts of phrases like “clinical tests prove etc etc”. Many people are ready to pounce on claims that are unable to be substantiated, or are untruthful, or are misleading, or cannot be proven. In other words, the makers of the wrinkle cream need to be able to show that there were indeed “clinical tests”. The fact that the clinic may have been part of the company making the cream is sometimes understood, and in any case, the makers of the cream hardly ever claim that “totally independent clinical trials using double blind processes found what we are claiming is true”.

But this is not some pot of wrinkle cream.

The CST claimed a number of facts in their advertisement that they said were verified by two of New Zealand’s leading accountancy firms.

So, I submitted a very brief letter to the Editor of the ODT that simply asked this:

Dear Sir

In light of the continuing operating losses of the Awatea Street Rugby Stadium, and the on-going debt costs from its construction, it would be interesting to be informed of just who the two leading NZ accountancy firms were that confirmed the Carisbrook Stadium Trust’s claims published in the ODT in 2008 that the stadium would be built debt free and would return an annual operating profit. Maybe these two companies could now tell us how the reality differs so much from the published claims.

Yours sincerely

The ODT has informed me that my letter was noted but not selected for publication. This is newspaper speak for it’s been binned.

Why should this be?

Should the ODT not be interested in ensuring that an advertisement of a major size on a subject that had divided the City was not at all misleading in the same way that claims were made that may not be able to be substantiated, or could be shown to be unfactual?

Is the ODT particularly sensitive to the views of those that decided to publish this advertisement?

Had the ODT entered into any understanding or arrangement that the paper would support the stadium project which may have led to less than stringent standards of advertising being followed in this case?

But perhaps more telling is that to my knowledge, the ODT has not followed up on the obvious story of just who these two leading NZ accounting firms were that supported the claims of a debt free stadium and an annual operating profit. My point is that time and distance show us that these claims were so at odds with the claims made and published, that serious questions remain unanswered on just how the CST and these two companies got it so wrong.

Maybe another newspaper sees the story that the ODT doesn’t?

[ends]

CST advert ODT 31.5.08 detail

odt may 31 2008-1 (pdf cleaned)

█ Legible copy: CST Advertisement, ODT 31 May 2008 (PDF, 200 KB)

Related Posts and Comments:
9.7.14 John Ward, no mention of stadium or CST trusteeship
23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope…
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
12.3.14 Carisbrook Stadium Trust: Financial statements year ended 30.6.13
8.3.14 Carisbrook Stadium Trust subject to LGOIMA
24.2.14 Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)
22.2.14 Carisbrook Stadium Trust costs
24.1.14 Stadium: It came to pass… [stadium review]

Posted by Elizabeth Kerr

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Filed under Business, Construction, CST, Democracy, Disinformation, Economics, Hot air, Media, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Stupidity, Town planning, University of Otago, Urban design

Rugby stadiums not filling #SkyTV

Eden Park [stuff.co.nz]Waitakere Stadium may replace Eden Park

“Still the historical home of Auckland rugby and provided we get cost-effective venue hire, we can make it work.” –Andy Dalton, Auckland Rugby

### nzherald.co.nz 5:00 AM Tuesday Jul 15, 2014
Auckland rugby looks at new home
By Campbell Burnes
The Auckland Rugby Union is looking at the possibility of shifting their ITM Cup home games away from Eden Park as paltry crowds hit them financially. Auckland Rugby has been an official tenant of Eden Park since 1925 and historically has always been associated with the ground and sporting success there. While nothing has been formally tabled, and all five home ITM games this year will take place at Eden Park, the Herald understands there is a growing feeling that a venue such as Waitakere’s Trusts Stadium would be more suitable from 2015 or 2016.
Read more

****

FB Stadium [newstalkzb.co.nz]Stadium/Rugby propped by Dunedin ratepayer subsidy (direct and hidden)

“When you look back at this time last year when we were all crying into our soup…” –Roger Clark, Highlanders

### ODT Online Tue, 15 Jul 2014
Rugby: Real money to be made from hosting games
By Steve Hepburn
The Highlanders were due to arrive in Durban early this morning and begin preparing for their playoff match against the Sharks on Sunday morning. The side ended up sixth in the table after the final round of games in the weekend and will be on the road the entire time it is in the playoffs. Highlanders general manager Roger Clark said the franchise would make a little bit of money out of making the playoffs but the real benefits came to those that hosted the games. He was yet to finalise how much money the team would receive for making the playoffs but it was not significant, he said.
Read more

█ See comments to this article at ODT Online by russandbev, QsRC, MikeStk and others.

Posted by Elizabeth Kerr

*Images: stuff.co.nz – Eden Park; newstalkzb.co.nz Forsyth Barr Stadium

18 Comments

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Great quote: men

Received.
Sunday, 13 Jul 2014 at 5:56 PM

John Steinbeck, Cannery Row (1)

Symbiosis across a number of threads (including for DCC, CST, DVML, ORFU, Highlanders, University of Otago, NZRU, DIA) but go to recent comments here and here.

Posted by Elizabeth Kerr

4 Comments

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John Ward, no mention of stadium or CST trusteeship

Otago Magazine June 2014 p23 (1)The University of Otago chose to profile its chancellor, Invercargill’s John Ward, in the June 2014 issue of Otago Magazine (pages 22-24). Note Mr Ward omits to mention the Stadium, or his trusteeship on the Carisbrook Stadium (Charitable) Trust. Isn’t that funny. Well, he looks a bit pursed in the photograph anyway.

Otago Magazine June 2014 pp 22, 24

Source: http://www.otago.ac.nz/otagomagazine/otago072837.pdf
Thumbnail: Photo by Alan Dove

Related Posts and Comments:
20.5.14 Tim Hunter on Ward, McLauchlan, Hayne #Highlanders
10.2.14 University of Otago major sponsor for Highlanders
31.5.13 University of Otago development plans

Posted by Elizabeth Kerr

1 Comment

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Clarke and Dawe: Slush funds… and footie bookings

ClarkeAndDawe Published on Jun 25, 2014

Clarke and Dawe: The Title of This Item Was Deemed to be Freighted and Has Been Removed
“Denny Kistmee, Slush Fund Consultant” Originally aired on ABC TV: 26/06/2014

****

ClarkeAndDawe Published on Jun 18, 2014

Clarke and Dawe – International Sport is Open for Business
“Arthur Swissbank, Senior Protocols Advisor to FIFA” Originally aired on ABC TV: 19/06/2014

http://www.mrjohnclarke.com
http://www.twitter.com/mrjohnclarke
http://www.facebook.com/ClarkeAndDawe

Posted by Elizabeth Kerr

2 Comments

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McLauchlan replies! #handsalloverit #UoOteamofthree

ODT 1.7.16 Letter to the editor (page 8):

ODT 1.7.16 Letter to editor p8 Dickie

****

### ODT Online Fri, 20 Jun 2014
Dunedin is ‘the laughing stock of the country’
By Vaughan Elder
Dunedin is a “laughing stock” over a proposal to launch an independent airline, Dunedin International Airport Ltd chairman Stuart McLauchlan says. Otago Air had no chance of getting off the ground, he said.
Read more

### ODT Online Fri, 20 Jun 2014
City’s mentality praised
By David Loughrey
The Dunedin City Council and the Otago Regional Council should get together to underwrite air services to Dunedin, an aviation expert says. Former University of Otago air transport research director Dr David Duval said Otago Air was a great Dunedin idea, but not one anybody should go ahead with.
Read more

[steering/connected/influential ??]

Related Posts and Comments:
20.5.14 Tim Hunter on Ward, McLauchlan, Hayne #Highlanders
15.5.14 Stadium (fubar): cringe
31.3.14 Audit services to (paying) local bodies #FAIL ● AuditNZ ● OAG…
25.3.14 Delta blues . . . and Easy Rider
20.3.14 Delta: Report from Office of the Auditor-General
27.2.14 Stadium: a conversation
10.2.14 University of Otago major sponsor for Highlanders
2.10.13 Greater Dunedin caucus arrives
6.8.13 Busted hacks! Media rates Cull and shiny-arsed suit brigade
15.7.13 Leave Otago white collar criminals ALONE, and other unfairness
[comment] 6.5.13 Elizabeth re ‘consultants and dunedin city council and sfc’
15.12.12 Perspective: stadium turmoil outweighs arts festival failure
10.12.12 Proposed hotel, 41 Wharf St – “LEARNING FROM LAS VEGAS”
20.11.12 DCC vs Anzide Properties decision: The road “has no legal basis”
12.11.12 Delta purchases | Vandervis OAG complaint accepted
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
14.6.12 Silence on debt run up at ORFU black-tie dinner
9.6.12 City Property to compete more obviously in the market…
8.5.12 Owners of neglected buildings
29.3.12 Dunedin City Council company sponsors Highlanders
15.3.12 Message To ORFU Creditors, if you want to see your money
4.3.12 Tartan Mafia
17.2.12 Does the insolvent ORFU deserve any more community support?
28.10.11 DVML, DVL and DCHL annual reports
16.10.09 Highlanders news

Posted by Elizabeth Kerr

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Southern Region, serving itself —or professional rugby (and Sky TV)

### ODT Online Tue, 1 Jul 2014
Opinion
Fresh thinking needed in local government
By Ciaran Keogh
Perhaps it is time to look at a far-reaching reform of the way local government functions at both local and regional level. There are substantial efficiencies to be gained from integrating many council functions across the councils within the region. More than 10 years ago I did away with all IT functions at the Clutha District Council and merged these with Invercargill City. This model would work for all of the councils across all of Otago and Southland for little more than it currently costs Dunedin City Council to run its IT services.
Some fresh thinking needs also to be applied to the stadium and the first of these should be the monopoly that rugby has over it and the grass surface.
Read more

● Ciaran Keogh is a former chief executive of the Clutha District Council, Wakool Shire in the Riverina region of New South Wales, and Environment Southland. He now lives in Dunedin.

****

Crowds had been down right across the five New Zealand franchises but that was a worldwide trend, with fewer people attending events.

### ODT Online Tue, 1 Jul 2014
Rugby: Crowds can’t fall any further – Clark
By Steve Hepburn
The Highlanders met budget for crowds this year but have warned they cannot dip any lower if the franchise is to remain viable. In the eight games the Highlanders hosted at Forsyth Barr Stadium this year, 98,326 people came through the gate, an average crowd of 12,291 per game. [...] A crowd of 11,070 attended the last home game, the win over the Chiefs, a figure that did not exactly delight Highlanders general manager Roger Clark.
Read more

Posted by Elizabeth Kerr

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Stadium: NZRU in the sights

NZRU takes a very high percentage of the returns from professional rugby matches at Fubar and other regional stadiums around New Zealand. NZRU’s Steve Tew doesn’t want you to dwell on that, he’s making money.

Dunedin’s Mayor Cull and City Councillors need to wake up.

ODT 28.6.14 Letter to editor (page 34)

ODT 28.6.14 Letter to editor Garbutt (page 34)

Posted by Elizabeth Kerr

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Stadium: DVML, mothballing, and ‘those TVs’ #LGOIMA

{Punctuation has been lightly edited and highlighting added to correspondence below; all email addresses have been removed. -Eds}

Received from Lee Vandervis
Tue, 24 Jun 6:20 p.m.

I am disappointed in the complete indifference of the local press regarding info I have sent them on the scandalous $1.3 million of new flatscreen TVs DVML bought when they already had 94 TVs and were already grossly unable to meet budgets. –Vandervis

—— Forwarded Message
From: Lee Vandervis
Date: Mon, 23 Jun 2014 12:23:54 +1200
To: Chris Morris [ODT], Debbie Porteous [ODT]
Cc: Nick Smith [ODT; Allied Press Ltd]
Conversation: stadium
Subject: Re: stadium

Hi Chris and Debbie,

My understanding is that mothballing the stadium is not being seriously considered, but that it should be to at least give us a sunk-costs base-line to recognise how much keeping the doors open is costing us.
The one-off cost of buying and paying the interest on the stadium is damaging enough with out the continuous massively subsidised ridiculous running costs.

It is a shame that DVML have been allowed to run as an out-of-control Council Trading Organisation for far too long, and that DCC failure to get DVML to operate responsibly as required by their Statement of Intent has encouraged profligate spending, such as buying $1.3 million of new flat screen TVs with fancy computer controls, when they already had 94 new flat screen TVs. [see attached DVML LGOIMA responses] Spending $1.2 million on unauthorized temporary seating, and buying an unauthorized specifically Council-denied growlight system [to keep the turf growing] are two other examples. Despite this the Mayor and other Councillors seem to be happy for years now to keep throwing millions at DVL/DVML.
I have often said that before we seriously consider closing the stadium doors we should strip DVL/DVML of their staff, directors and overheads, appoint a DCC in-house manager to run the stadium along Edgar Centre lines using volunteers including Rotary as was done with Carisbrook, fit a low-maintenance artificial turf to allow everyday use, and see how cheaply the stadium could really be run. Only then would we be in a position to decide whether keeping it open was possible long term.

I have sent original info re DVML’s profligate spending on newer TVs and their disposal of ‘old’ flat screens in separate emails.

Cheers,
Lee

—— End of Forwarded Message

****************************************

Email 1

—— Forwarded Message
From: Lee Vandervis
Date: Mon, 23 Jun 2014 12:12:59 +1200
To: Chris Morris [ODT], Debbie Porteous [ODT]
Cc: Nick Smith [Allied Press Ltd]
Conversation: LGOIMA response and new questions
Subject: FW: LGOIMA response and new questions

From: Kim Barnes [DVML]
Date: Wed, 4 Jun 2014 00:45:59 +0000
To: Lee Vandervis
Cc: Sandy Graham [DCC], Terry Davies [DVML], Sue Bidrose [DCC]
Subject: RE: LGOIMA response and new questions

Dear Councillor Vandervis

Please find attached the response to your request in relation to your LGOIMA request dated 9 May 2014. Attached also is a record of the payments made by staff and Directors for the purchases of the second hand televisions.

Kind regards
Kim

Kim Barnes
Marketing & Communications Manager [DVML]

Downloads:
Record of Payment (PDF 836 KB)
ClrVandervis030614 (PDF, 129 KB)

From: Lee Vandervis
Sent: Friday, 9 May 2014 2:47 p.m.
To: Kim Barnes [DVML]
Cc: Sandy Graham [DCC]; Terry Davies [DVML]; Sue Bidrose [DCC]
Subject: Re: LGOIMA response and new questions

Thank you Kim for Mr Davies responses to my questions.

Unfortunately some of my questions have not been answered.
Question 2 asks whether DVML realised at the time they bought the new Stadium TV software package that the existing 94 TVs were incompatible.
Can you please respond – yes or no – whether DVML realised they were buying a software package that was incompatible with the stadium existing 94 TVs?

Question 5 asks who was responsible for keeping the records referred to in “Unfortunately no record has been found of these actions or conversations”.
My ‘who’ question has not been answered – was it a management requirement lapse, or was it simply a staff member filing error, or some other subcontractor’s recording lapse?

Question 6 asks who was responsible for the damage causing seven TVs to be discarded? Does the “where no blame can be attributed” response mean that nobody was held responsible for the destruction of these seven TVs? Was any insurance claim made for the damaged TVs?

Question 7 requests copies of original paperwork confirming payments for stadium TVs supplied to DVML staff and directors. Thank you for supply copies of invoices, but it is proof of payment original paperwork that I have asked for. Can you please forward copies of this ‘confirming payment was made’ paperwork?

Your response also raises some additional questions which I wish to pose now as an additional LGOIMA request for information:
TV sale invoices variously describe TVs as “new” “second-hand” or just as “TV”.

Question A – are the “new” TVs so described actually new, and if so why are these new TVs being sold so cheaply? Are the sold ‘new’ TVs from the original 94, or from the subsequent 165 TVs? Are the second-hand TVs from the original 94 or subsequent 165 TVs or both? Of the TVs sold to staff/directors that are neither described as new or second-hand, which were new and which were second-hand?

Question B – why do the TV sale invoices vaguely refer to a generic TV type and not specify the actual TV unit by way of model number or serial number as is required in “a description of the goods” on a GST invoice?

Question C – What is the total number of TVs now in the stadium, and how many are from the original 94 TVs and how many are from the more recent purchase of 165 TVs?

Thank you for the information that you have provided so far as it has helped to clarify some aspects of the $1.3 million cost of the second full stadium TV system excluding the original stadium 94 TVs system.

Kind regards,
Cr. Lee Vandervis

—— End of Forwarded Message

****************************************

Email 2

—— Forwarded Message
From: Lee Vandervis
Date: Mon, 23 Jun 2014 12:12:07 +1200
To: Debbie Porteous [ODT], Chris Morris [ODT]
Conversation: LGOIMA response
Subject: FW: LGOIMA response

From: Kim Barnes [DVML]
Date: Tue, 29 Apr 2014 03:02:38 +0000
To: Lee Vandervis
Cc: Sandy Graham [DCC], Terry Davies [DVML], Sue Bidrose [DCC]
Subject: RE: LGOIMA response

Dear Councillor Vandervis

Please find attached the response in relation to your LGOIMA request dated 1 April 2014 along with copies of invoices as requested.

Kind regards
Kim

Kim Barnes
Marketing & Communications Manager [DVML]

Downloads:
Staff purchase invoices (PDF, 615 KB)
ClrVandervis290414 (PDF, 101 KB)

From: Lee Vandervis
Sent: Tuesday, 1 April 2014 10:17 p.m.
To: Kim Barnes [DVML]
Cc: Sandy Graham [DCC]; Terry Davies [DVML]; Sue Bidrose [DCC]
Subject: Re: LGOIMA response

Dear Kim,

Thank you for finally providing me with a response. 8 weeks for this response is unacceptable however and the excuse given that “the request is for a large quantity of official information or necessitates a search through a large quantity of information” is not credible.

The answers you have provided raise further questions as follow, to which I expect answers within a normal LGOIMA timeframe:

1 – Who decided to buy the first 94 stadium TVs and on what advice?
2 – Did DVML realise at the time they bought the new stadium TV software package that these 94 TVs were incompatible?
3 – What “increased revenue” has resulted from purchasing the newer 165 TVs and stadium TV software package?
4 – What has been the total cost of the stadium TV software package, the 165 TVs and associated installation costs? Please itemize.
5 – Who at the stadium was responsible for keeping the records referred to in “Unfortunately no record has been found of these actions or conversations”?
6 – 7 of the 94 TVs have been “Discarded due to being damaged”. Under what circumstances have so many TVs been damaged and who has been held responsible?
7 – Please forward copies of original paperwork confirming payments for stadium TVs by staff members, and payments by DVML Chair Sir John Hansen and DVML Director Peter Stubbs.

Kind regards,
Cr. Lee Vandervis

On 1/04/14 5:48 PM, “Kim Barnes” wrote:
Dear Councillor Vandervis

Please find attached the response in relation to your LGOIMA request dated 5 February 2014 along with a copy of the release being forwarded to the ODT.

Kind regards
Kim

Kim Barnes
Marketing & Communications Manager [DVML]

—— End of Forwarded Message
{See also correspondence via posts made on 3 April 2014. -Eds}

Related Posts and Comments:
18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses
14.6.14 NZRU ‘hustles’ towns and cities to build stadiums
12.6.14 Fairfax Media [not ODT] initiative on Local Bodies
9.6.14 DVML: Crowe Horwath audit report (Hedderwick)
3.6.14 DCC unit under investigation
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
█ 3.4.14 DVML: Lost in transaction II (flatscreen TVs)
█ 3.4.14 DVML: Lost in transaction (flatscreen TVs)

Posted by Elizabeth Kerr

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Filed under Business, Carisbrook, DCC, Democracy, DVL, DVML, Economics, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Tourism, What stadium

DCC: Draft arts and culture strategy (read another major spend up?)

OH GOD, BUT IS IT GREEN
Do we really need a (hopeless) arts strategy when we’re TOO BUSY bankrolling Professional Rugby and committing Assault at Stadium ???

Dunedin City Council – Media Release
Making Creativity a Top Priority

This item was published on 19 Jun 2014

Arts and culture should be at the core of our city, according to Toi Ao – Our Creative Future, the draft Ōtepoti Dunedin Arts and Culture Strategy.

Dunedin City Councillor Aaron Hawkins who has been closely involved with the preparation of the draft Strategy, says, “This is a great opportunity for the city to acknowledge the importance art and culture to our community’s quality of life. Having watched this strategy develop, I’m excited about it being at the stage where we can soon share it with Dunedin people, and see how it fits with their ambitions and aspirations. Dunedin has a rich tradition of developing, and attracting, world class talent. What we don’t always to so well is celebrate our successes. We need to look at how we can encourage excellence, and at the same time weave creative expression into the fabric of our public spaces and everyday lives.”

The draft Strategy has been developed in partnership with arts and culture collective Transforming Dunedin. The Strategy draws on the results of previous community consultation, including the Transforming Dunedin Symposium and follow-on work, DCC consultation on strategic priorities for the city and a review of other arts and culture strategies in New Zealand and overseas.

The Strategy’s purpose is to set the direction when it comes to future support for arts and culture in Dunedin. It aims to position Dunedin as one of the world’s finest creative small cities. The intention is to move to a place where arts, culture and creativity are fully integrated into the city’s brand and identity and recognised as critical to Dunedin’s success.

There are a wide range of goals, which include bringing a creative perspective to city decision-making, creating new ways for people to participate in arts and culture, and ensuring Dunedin people can experience the best of local, national and international arts and culture.

DCC Group Manager Arts and Culture Bernie Hawke describes the development of the draft Arts and Culture Strategy as “a significant milestone in developing a framework for supporting and fostering arts and culture across the city. “The forthcoming community consultation on the draft Strategy will be important to ensure that the Strategy represents the priorities and directions of the community.”

█ The draft Strategy will be discussed by the Council at its meeting on Monday, 23 June. Subject to approval by the Council, the draft Strategy is expected to be released for widespread public consultation in late July/August.

‘Toi Au – Our Creative Future’, Draft Ōtepoti Dunedin Arts and Culture Strategy (PDF, 872.4 KB)

Contact Group Manager Arts and Culture on 03 477 4000.
DCC Link

### dunedintv.co.nz June 19, 2014 – 6:03pm
New arts and culture strategy developed
The Dunedin City Council has developed a new arts and culture strategy. It sets the direction for investment and support of creative activities and events in the city. And on Monday, the document will be tabled for discussion by councillors, before going out to public consultation.
Video

Posted by Elizabeth Kerr

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Crowe Horwath Report (May 2014) – Review of DVML Expenses

Dunedin City Council released the following report through the LGOIMA process, in reply to Bev Butler who lodged an information request.

The report by independent auditors Crowe Horwath investigates the work expenses of DVML’s ex Commercial Manager, then part-time contractor Guy Hedderwick.

Crowe Horwath report cover (May 2014)

Download: Crowe Horwath Report – Review of DVML Expenses (PDF, 363 KB)

NOTE: The report is not the result of a forensic audit, which should now take place to provide clarification for Mr Hedderwick and his manager.

QUESTION: Why is Dunedin City Council not seeking requirement for a forensic audit?

Related Post and Comments:
9.6.14 DVML: Crowe Horwath audit report (Hedderwick)
22.3.14 DVML, Money for jam…..fig jam’ [see links provided]
4.3.14 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)

Posted by Elizabeth Kerr

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Filed under Business, DCC, Democracy, DVML, Economics, Highlanders, Media, Name, New Zealand, ORFU, People, Politics, Project management, Site, Sport, Stadiums

DVML: Crowe Horwath audit report (Hedderwick)

Updated post 17.6.14

Crowe Horwath Report – Review of DVML Expenses (PDF, 363 KB)

Dunedin City Council has released a report recently completed by independent auditors Crowe Horwath, into the work expenses of DVML’s ex Commercial Manager then part-time contractor Guy Hedderwick. ODT reporter Chris Morris is covering the story.

[Received]

Readers of this site will recall the efforts that campaigner Bev Butler went through to track down the expenditure incurred by Guy Hedderwick while he was the Commercial Manager for Dunedin Venues Management Ltd (DVML).

After much effort through the LGOIMA process Ms Butler was told that Mr Hedderwick had run up bills of nearly $80,000 during 51 work-related trips since 2010.  

Readers will also recall the reaction by Neville Frost, DVML’s Finance Manager (ODT 22.3.14), who labelled Ms Butler’s claims of this expenditure as “completely inaccurate and ill-informed” while accusing her of “disgraceful” conduct and that she was “lacking in personal integrity”.  

Readers should now be fully informed that the figure of nearly $80,000 was indeed incorrect. The figure arrived at in the report compiled by Crowe Horwath is $144,879 – the amount released by Mr Frost in response to Ms Butler’s LGOIMA request has nearly doubled.

Readers should also be informed that the report found there was almost $4,000 spent by Mr Hedderwick with no evidence of what it was spent on; and a total of over $34,000 with no evidence of any approval.  

City ratepayers now need real answers to some basic questions.

1. Why, when Neville Frost was required to provide accurate information under an LGOIMA request on Guy Hedderwick’s expenditure, did he provide information that was inaccurate and misleading? Readers should not need to be reminded that when Steve Prescott, Manager of Aquatic Facilities at the DCC, did just this recently he resigned.  

2. Now that the full extent of Guy Hedderwick’s spending has been revealed by the Crowe Horwath report, can DVML still maintain as Neville Frost did in his press release, that it was “frugal”?  

3. What is DVML doing to obtain refunds from Guy Hedderwick on those sums incurred where there was no approval, or where there was no evidence of what the expenditure was for? For expenditure where there was no approval, is Neville Frost or Darren Burden at fault for lack of oversight and lack of management, and if so, should they be also responsible for repayment?  

4. What benefit to DVML and the ratepayers occurred from this $144,879 expenditure? Guy Hedderwick seems to have had carte blanche to travel at his own whim and it appears that DVML can’t point to any general or particular benefit from any of it.  

5. What accountability will be enforced by DCC, on behalf of the ratepayers, on the actions of Guy Hedderwick, for Neville Frost’s failure to both financially control this expenditure and to mislead and misinform both Bev Butler as the LGOIMA requestee and the general public by the content of his press release, and on the Board for its failures to contain costs?  

6. A full, comprehensive and public apology must be obtained from Neville Frost for his disgraceful and inaccurate statements made in his press release of March 22, 2014.

Note: Thanks to Bev Butler and Russell Garbutt for these statements.

Related Posts and Comments:
22.3.14 DVML, Money for jam…..fig jam’ [see links provided]
4.3.14 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)

Posted by Elizabeth Kerr

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Stadium costs ballpark at $21.337 million pa, Butler & Oaten

Received from Bev Butler
Monday, 2 June 2014 4:10 p.m.

Message: During the presentation of my submission on the draft annual plan I was asked by Council to produce the figures to back up my claim that the stadium was costing approximately $20 million per annum. David Benson-Pope made a general statement questioning whether the claims in my submission were correct – though he didn’t elaborate when I asked him. I have followed up the Council’s request and the final figure is $21.337 million.

Please note there is a huge disparity between what the DCC has published in the Draft Annual Plan 2014/15 and what can be shown by the DCC’s own figures that are very difficult to find and interpret. The ratepayers should not continue to be kept in the dark – the real costs are more than double what is being published.

This has now been sent to the Mayor and Councillors.

Regards
Bev

————————————

From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomson; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
Cc: Calvin Oaten
Subject: Stadium Cost $21.337 million per annum
Date: Fri, 30 May 2014 22:49:43 +1200

Friday 30 May 2014

Dear Mayor Cull and Councillors

Attached is a Word document prepared by Calvin Oaten outlining the annual stadium costs. The final figure of $21.337 million is based on figures sourced from and cross-referenced with DCC/DVML/DVL/DCHL documents.
Also attached is a spreadsheet, containing four spreadsheets, prepared by Bev Butler, showing the treatment of the $146.6 million portion of the stadium debt.

Yours sincerely
Bev Butler

Explanatory Note for Calvin Oaten’s Word document:
I have expressly not mentioned nor quantified costs of what I would term ‘collateral’ effects of the Stadium Project. These of course are very real additional financial burdens to the citizens. These are: the realignment of SH88, the forgiving of considerable debt owed the city by the Otago Rugby Football Union, the costs of the purchase and sale of Carisbrook including the holding of same in the interim period. And of course, the ongoing operational losses of DVML’s operations. These particularly are proving to be a continual drag on the financial conscience of the ratepayer. It seems that if council cannot, or will not bite the bullet and raise the “pay to use” level to at least a break even figure then professional rugby is destined to have the last laugh at our expense. It is simply not fair.
I remain, without prejudice
Calvin Oaten

Explanatory Notes for Bev Butler’s spreadsheets:
1. Sheets 1 & 2 titled “$117.541m” and “$29.059m” respectively outline the calculations for the two tranches of stadium debt outlined in the DVL six-monthly report, dated 31 December 2013. This report states that the $146.6m stadium debt has been divided into two tranches of $117.541m and $29.059m. The $117.541m is for a term of 17 years and the $29.059m is for a term of ten years with a weighted average of 6.05%pa. In the calculations I have assumed monthly compounding periods and assumed the first payment(s) were made between 30 June 2013 and 31 December 2013. If the compounding period is shorter then there would be a small reduction in the payments.
Note that in the DVL six-monthly report it states that a mortgage has been issued to pay for the two tranches. This is the first time this has been mentioned in the DVL reports so it is assumed that the mortgage was issued sometime between the last DVL Annual Report (YE 30 June 2013) and the DVL six-monthly report (31 December 2013). There is also mention of a GSA having been signed. I assume this is a General Security Agreement to secure the payment of the debt in the event of the stadium folding or the rental payments not being met. I acknowledge that I am unsure about this as I have no further information. Perhaps the Council staff could clarify this aspect.

2. Sheets 3 & 4 titled “$146.6m monthly” and “$146.6m weekly” respectively outline the calculations for the stadium debt had [regular repayments been made] from the time the stadium opened. It appears from the calculations and the DVL Annual Reports that this was not happening. If it was then the debt would have reduced to approximately $134 million. The DVL long term debt as of 31 December 2013 stands at $141.090m. So up until the mortgage was secured, it appears the debt repayments were for interest only on the bonds (and an average annual capital injection of $2m) which were issued to pay for the stadium land and other stadium debt.

[ends]

Downloads:
Stadium Costs $21.337 million per annum (DOC, 30.2 KB)
Stadium debt calculations FINAL (XLS, 59.3 KB)

Related Posts and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself

Posted by Elizabeth Kerr

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QB 2014 gongs of ill-repute #Hudson COI = MNZM

(via ODT) Mon, 2 Jun 2014
Southern Queen’s Birthday Awards recipients

paul-hudson copyPaul Hudson
Dunedin
Services to business and the community

Paul Hudson (65), of Port Chalmers, said that he was ”humbled and honoured” for the recognition of his involved with commerce, local government and the community in Dunedin for 50 years.
He worked for Cadbury Fry Hudson between 1973 and 1996 and, as managing director, led Cadbury’s transition to conducting its worldwide business from centralised locations.
He held elected positions on Port Chalmers and Dunedin City Councils between 1980 and 2013, including deputy mayor on both councils.
He was chairman of Dunedin City Holdings, Citibus-Dunedin Transport Ltd and Citiworks, and a board member of City Forests, Aurora Energy and Delta Utility Services.
He was chairman of Dunedin City Holdings for 18 years, when shareholder funds increased from $100,000 to more than $150 million and distributions to Dunedin City Council totalled more than $280 million.
He was council appointee for the Otago Theatre Trust, Dunedin Public Art Gallery Society and its acquisitions committee and the Dunedin Town Hall Organ Trust.
He was appointed treasurer to the Otago branch of the Save the Children Fund 50 years ago. ”This was the beginning of my lifelong interest in serving the community.”
The service to the community included work for Port Chalmers Kindergarten, the Aramoana Trust, Regent Theatre, the Otago Arts Society, the Dunedin Council of Social Services and the Dunedin Community House Trust. ”My involvement with the establishment of Community House, my early years in Save the Children Fund and various roles and involvement in local government have been very satisfying,” he said.

[ends]

DECLARATION
“I, Paul Richard Hudson, do solemnly declare I did not squander ratepayers’ money for the chance to receive specific mention in the freshly minted report of the Office of the Auditor-General’s investigation into Delta (2014). Nor at any time did I place or declare my Conflicts of Interest ahead of my ability to be judge and jury at DCHL and other council-owned companies, so to infuriate Warren Larsen (Report, 2012). I did not personally receive ANYTHING by way of payment for termination of lease of restaurant space in the Municipal Chambers. And, I am not at all obsequious, a fence-sitter — or, make that slimy.” … “Honest.”

Related Posts and Comments:
8.11.13 DCHL, long wait for review (Larsen sighs)
23.8.13 New DCHL Chair announced: Graham Crombie
24.7.13 DCC / DCHL shake up !!!
12.7.13 Hudson, DCC (ex DCHL)
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
20.12.11 Delta and the GOBs #DCHL #DCC
28.10.11 DVML, DVL and DCHL annual reports
16.9.11 DCHL and subsidiaries: shuffling, no real clean out?
13.8.11 Ridding DCHL of conflicts of interest, Otago business monopoly ‘by director’, and other ghouls
9.2.11 DCC and DCHL, was there ever any doubt?
7.10.10 The time has come for biffing out
7.7.10 DCC, DCHL, CST, DVML, DVL?
22.10.09 DCHL chief executive replies to critics

Posted by Elizabeth Kerr

33 Comments

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DCC: Audit and risk subcommittee

Do you believe “anything” Audit New Zealand says after DCC decided to build the stadium with such a BAD business case? NOPE

[NZ Farce] Ratepayers needed to know they were getting as good a service as any other ratepayers would get from other councils. –Lothian

### ODT Online Wed, 28 May 2014
Financial stability still a risk, committee told
By Debbie Porteous
Financial sustainability, a new funding model for Forsyth Barr Stadium and detecting potential fraud might be its highest priorities risks, Audit NZ has suggested to the Dunedin City Council’s new audit and risk subcommittee. Complying with legislation was not such an issue for the council, but it should work on putting all its management policies and procedures into one document so there was broad understanding of everything happening in that area, Audit NZ audit director Ian Lothian said.
Read more

Audit and Risk Subcommittee:
Susie Johnstone, chairwoman (accountant)
Cr Richard Thomson
Cr Chris Staynes
Cr Hilary Calvert
Janet Copeland (employment law specialist)

● City councillors may attend all meetings of the subcommittee.

Posted by Elizabeth Kerr

18 Comments

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Stadium: DCC proposes extra funds for stadium debt repayment

Comment received from Mike
Submitted on 2014/05/11 at 12:42 pm

Now is a great time to remind people of section 63 the Local Government Act which reads:

Restriction on lending to council-controlled trading organisation
A local authority must not lend money, or provide any other financial accommodation, to a council-controlled trading organisation on terms and conditions that are more favourable to the council-controlled trading organisation than those that would apply if the local authority were (without charging any rate or rate revenue as security) borrowing the money or obtaining the financial accommodation.

http://www.legislation.govt.nz/act/public/2002/0084/latest/DLM171886.html

Which as I read it means that the council can’t fund DVML in a more advantageous way than it would receive itself from its own bankers – my reading of this is that just bailing DVML because it’s losing money would be illegal, they have to loan them money at a comparative rate to what they would get from the bank.

It’s an obvious target for a ratepayer’s injunction …..

The reason for this law is pretty obvious, the government wanted CCOs to compete with private enterprise on a level playing field – if DVML wants to rent out space it shouldn’t be able to undercut a competing landlord who can’t tap the ratepayers’ pockets to charge a rent below cost.

[ends]

****

Dunedin City Council – Media Release 9 May 2014
Extra Funds Proposed for Stadium Debt Repayment

The Dunedin City Council will consider using savings to repay more debt associated with the Forsyth Barr Stadium. The Council will next week consider approving a one-off payment of $2.271 million to help balance the Forsyth Barr Stadium accounts. Of that, $1.77 million would be used to repay DVML debt, with the balance to fund a cash shortfall. The payment would be funded from DCC savings made in the current financial year. DCC Group Chief Financial Officer Grant McKenzie says, “A one-off payment to reduce debt further would be good for all parties and would clearly respond to community demand for the DCC to reduce its overall debt level.” Read more

Download the Forsyth Barr Stadium 2014/15 Budget Report (PDF, 200KB)

Media Stories:
9.5.14 ODT Stadium debt reduction to be considered
9.5.14 Stuff (Fairfax News) Stadium could cost Dunedin ratepayers millions
10.5.14 ODT Stadium payment may rise

Related Post and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.5.15 (via comment) ODT In Brief: Stadium review sought

Posted by Elizabeth Kerr

35 Comments

Filed under Business, Construction, CST, DCC, DCHL, DCTL, Delta, Democracy, DVL, DVML, Economics, Highlanders, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums