DCC, Stadium —sorry picture

Dollar

Mr Orders’ report also noted core council debt – excluding that of its companies and the stadium – stood at $227 million, and was now expected to peak at $272 million before beginning to decline from 2015-16.

### ODT Online Fri, 2 Aug 2013
More cuts needed, council warned
By Chris Morris
The Dunedin City Council is cutting its reliance on dividends from Dunedin City Holdings Ltd, but still fears being left exposed by another sudden drop in cash from its companies, chief executive Paul Orders says. The warning came as Mr Orders released his pre-election report, which also warned belt-tightening would continue as the council searched for extra savings by early next year. The council needed to cut at least another $3 million from annual expenditure to limit any rates increase to no more than 3% in 2014-15, Mr Orders said.

From the Office of the Chief Executive
Pre-election Report 2 August 2013 (PDF, 238KB)

However, the organisation also needed to brace for a dramatic hike in spending on water infrastructure renewals, which would have to rise from $8 million a year to $22 million a year by 2021-22, Mr Orders said. That was expected to come from cash, rather than borrowing, as was 90% of all council capital expenditure – helped by New Zealand Transport Agency subsidies – over the next decade, he said. That would help ease the financial pressure on the council as it worked towards reducing its debt to $200 million by 2021-22, he said. Despite that, the council could not expect to have “modest headroom” for new spending in its budget until then, meaning nearly another decade of frugality, he said.
Read more

****

Dollar

PwC had given the council “supplementary information” relating to $3.7 million of unauthorised spending on the stadium’s catering fit-out. However, the council’s legal advisers had concluded “that there was no individual culpability”.

### ODT Online Fri, 2 Aug 2013
Stadium cost may blow out to $260m
By Chris Morris
Heads will not roll over the Forsyth Barr Stadium budget blowout, but the total bill could rise again to more than $260 million, it has been revealed. Dunedin City Council staff have begun collating a “comprehensive” list of stadium-related costs, spanning almost the last decade, to be published later this year. The initiative was confirmed by council chief executive Paul Orders in his pre-election report, released to media yesterday.

The arrangements had made it “impossible” to identify individuals responsible “for anything that went wrong”, Mayor Cull said. “I’m sorry we can’t get the last answers, but we can’t.”

Dunedin Mayor Dave Cull said the list would include the cost of purchasing Carisbrook, bailing out the Otago Rugby Football Union and realigning State Highway 88, among other non-construction costs. It would be up to the public to decide whether the additional bills should be considered part of the cost of the new stadium, which officially stood at $224.4 million, Mr Cull said. He did not know exactly what the extra costs would amount to, but the Otago Daily Times understands if included they would push the stadium bill beyond $260 million.
Read more

Posted by Elizabeth Kerr

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56 Comments

Filed under Business, Construction, CST, DCC, DCHL, Democracy, DVL, DVML, Economics, Hot air, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, Urban design

56 responses to “DCC, Stadium —sorry picture

  1. ### ODT Online Thu, 1 Aug 2013.
    Council faces slip bill of $450,000
    By Nigel Benson
    The Dunedin City Council is facing a bill of around $450,000 to repair slips caused by the June storms. While many slips and washouts had been cleared and repaired, the extent of damage across the wider city meant there was still considerable work to be done, council roading maintenance engineer Peter Standring said yesterday.
    Roading-related damage caused by the June storms cost $980,000, of which the DCC will contribute $430,000. The ongoing work was expected to cost $1 million in the current financial year, of which the DCC would contribute about $450,000.
    Read more

  2. Peter

    Trouble is words have been spoken, inconsistencies by key players noted, lies told and new lies told to cover the old lies. Now all on record.
    Never, in their wildest dreams, did the key players think they would be further questioned, and investigated, for what they said and what they have ultimately done once the stadium was built.
    I’m sorry, but it is not ‘impossible’ to attribute responsibility…and accountability. It’s easy peasy.
    I note in the report that Athol Stephens and Jim Harland did not really want to be drawn for comment. Hmmm.
    I also note that Harland said he outlined the stadium risks to the councillors. He certainly did, but that does not mean he was still not a willing advocate for the stadium, irrespective of those risks. The risks were, after all, financial risks he did not personally have to carry – nor the rugby mafia. It was the ratepayers who carried the risks as we all know.

  3. Simon

    It now becomes more clear why the rats are deserting the ship.

  4. Whippet

    An unemployed youth gets caught not paying for a $5 pie and gets taken before the courts and given full publicity in the news media. Mean while it is discovered that $3.7 million of unauthorised spending on the stadium and the legal eagles advise that there was no individual culpability. Yeah Right. .

  5. Hype O'Thermia

    There are ways of giving information. “Those jeans are of excellent quality the same as the other pair you looked at, it’s up to you to choose whether you prefer the ones that make your bum look big.”

  6. whippet

    Haven’t the legal eagles been involved in giving advice to council for the duration of this fiasco? And now advice that there is no individual culpability. Something smells and the cover up is well underway. The buck has to stop somewhere. Maybe it will land after the election. Called forward planning.

  7. Russell Garbutt

    Whippet, I suggest that you ring Cr Acklin, Cr Hudson, Cr Bezett, Cr Noone, Cr Collins, Cr Brown and Cr Weatherall and ask them all whether they accept both responsibility and accountability for this debacle. But to save some time, I can give you a best guess of the response from all of these twerps. “It was a collective decision and I was only part of it.” To which you can respond that in exactly the same way that a person waiting in a get-away car outside say, the RSA robbery/murder can be indicted for murder, they are collectively and separately liable. Then ask them whether they now, in hindsight, consider themselves completely stupid or just incapable of fulfilling the role of a Councillor. Perhaps you can also ask them what they personally intend to do to redress their stupidity.

  8. Peter

    Russell. If I was one of these councillors I think it would be best to claim personal stupidity rather than intent. Much safer…legally speaking.
    Better still, say something, like, ‘It was him/thems who done it. I fwought he/they new what they was doing.”
    I notice Harland is putting the blame back on the councillors who made the decision because, after all, he told them about the risks. There will be a wider blame game coming, I suspect.

  9. Accountability is not a word in their ‘lexicon’. I think we all owe a debt of gratitude on this to Paul Orders. Without his oversight this would remain under wraps. For Dave Cull to try and distance himself and others from culpability is disingenuous, and not to demand accountability doubly so. Can’t wait for the elections.

  10. Hype O'Thermia

    We didn’t know at all,
    We didn’t see a thing.
    You can’t hold us to blame,
    What could we do?
    It was a terrible shame,
    But we can’t bear the blame.
    Oh no, not us, we didn’t know.
    Chorus of “We Didn’t Know” Words and Music by Tom Paxton

    The verses were about the Holocaust, Vietnam and US race riots. The chorus looks like it’s never going to be of “distant historical” relevance only, not while people in power claim ignorance, blame “factors” etc not anyone in particular, won’t “relitigate the past” – and the masses let them get away with it because it’s so much easier to be powerless & suck the bullshit candy.

  11. Russell Garbutt

    Peter, I did notice Harland’s assertion that he put forward the risk. BS. He was the little conniving soul that told the Councillors that it was more important that the ratepayers had “perceptions” rather than facts. I would dearly have loved to have been a fly on the wall at the meeting between him, Cull and Staynes after that election after which Harland decided that it was better to go work for the NZTA than continue in his sweet role at the Council. Remember what the DCC staff called him? Osama Bin Harland. Apparently, because no-one could ever find him but when he did pop up he caused widespread damage. Is losing your plum job considered to be accountable?

  12. Whippet

    I rang them all Russell, but only got their answer phones. That strangely all had the same message. “Down at the sand pit, redrawing the line in the sand trying and keep ahead of the rising tide of culpability that is heading their way.”
    It will be interesting to see if they survive the king tide that is due on the 12 October.

  13. amanda

    If they can make it stick, Hudson and Co will blame Dunedin ratepayers. With media gone all forgetful and reluctant to name the councillors responsible for the stadium debacle, they will try and blame nature, god or the world economy. If they think they can get away with it they will blame us. That is why challenging the local media narrative is so crucial.

    • [SORRY FOR THE HOLD UP IN APPROVING COMMENTS TODAY – switching to new phone and plan, have had to wait 24 hours for connectivity]

      • Bev Butler sent through this information today. Bev notes the advertisement referred to placed in the ODT bore little resemblance to the risks in the Council report dated 17 March 2008.

        Received by Whatifdunedin.
        Sunday, 4 August 2013 5:56 p.m.

        From: Bev Butler
        To: Mark Price [ODT]; David Loughrey [ODT]
        CC: Murray Kirkness [ODT]
        Subject: FW: Full page ad in ODT
        Date: Mon, 31 Mar 2008 14:01:23 +1300

        Dear David and Mark
        I have attached a table showing the discrepancies between the stadium risks as outlined in the ODT ad on Sat 29th March 2008 and those in the DCC report to the F&S meeting on 17th March 2008.
        I suggest that this table be published in full to inform people of the true risks. It is about time the public were fully informed.
        I also suggest that the ODT investigate who was behind the write up of the risks in the ad and who approved the ad for publication.
        Regards
        Bev

        ————————–

        From: Bev Butler
        To: Jim Harland; Athol Stephens
        CC: Letitia Parry [Ombudsmen’s Office]; NMahuta at ministers.govt.nz
        Subject: Full page ad in ODT
        Date: Sat, 29 Mar 2008 17:47:45 +1300

        Dear Mr Harland and Mr Stephens

        On reading today’s ODT page 9 headed “The Council’s Stadium Stance”, I would like to request who wrote up and who approved the write up under the heading of “Risks”? The risks in this full page advertisement have been ‘softened’ compared with the DCC and the Davis Langdon reports presented to the Council meeting on 17th March 2008. This ‘softening’ of the risks is to the point of being misleading to the public.

        Yours sincerely
        Bev Butler

        [attachment]
        Risks of the Dunedin stadium

        Download: Risks of the Dunedin stadium (DOC, 33.3 KB)

        Received by Whatifdunedin.
        Sunday, 4 August 2013 6:02 p.m.

        From: Bev Butler
        To: Paul Hudson; Richard Walls; Andrew Noone; Chris Staynes; Kate Wilson; Colin Weatherall; Teresa Steveson; Bill Acklin; John Bezett; Peter Chin; Fliss Butcher; Neil Collins; Syd Brown; Dave Cull; Michael Guest
        CC: Jim Harland; Athol Stephens
        Subject: Do you not understand?
        Date: Tue, 1 Apr 2008 10:24:52 +1300

        Dear Councillors
        Do you not understand:
        1. That the independent peer reviewers have stated that the stadium will cost many, many millions more to construct.
        2. That the independent peer reviewers have stated that the stadium will run at a multimillion dollar loss. (Depreciation alone is estimated by Athol as between $8-$12m)
        3. That Davis Langdon is concerned at the ‘magnitude of the exclusions’ in the CST’s calculations.
        4. That the DCC report has warned of the enormous risks involved with this project.
        5. That the DCC report has warned that DCHL may be jeopardised.
        6. That the contigency fund only covers increase in construction costs NOT increase in land/lease costs.
        7. That Davis Langdon did not receive much of the documentation requested from the CST with which to finish their independent assessment.
        8. That the CST did not provide documentation (to Davis Langdon) re ‘security of private funders’.
        9. That your ‘conditions’ are meaningless when you continue to extend deadlines.
        10. Did you read the papers for the 17th March meeting and, if so, did you understand them?
        Regards
        Bev Butler

  14. Peter

    Russell. You say, ‘Is losing your plum job considered to be accountable?’ Nope. He was smart enough to jump at the right time. You don’t hang around to answer the difficult questions.

  15. That is a damning piece of history if ever. It leaves all councillors and Mayor Chin in flagrant default of their duties. Not only were they all privy to that report, they then put what they termed lines in the sand over the private funding being confirmed. Not only was it never confirmed the PwC report stated clearly that no private funding was used in construction. They also basically ignored all of Davis Langdon’s reservations concerning the risks (which have since come to pass) of the financing models, the DVML revenue models and DCHL’s ability to produce sufficient profits to service the debt. Worse, then the ODT is given a sanitised summation which was subsequently printed for the public’s consumption. This was totally at variance with the original. The only person, or persons who would/could have done that are Jim Harland and Athol Stephens. That is a criminal action in my book aided, abetted and condoned by every single councillor and the mayor. They just have to be brought to account along with all of the Carisbrook Stadium Charitable Trust (CST), in the interests of the people.

  16. Peter

    Dave Cull needs to ask himself, in terms of following logic, that if predicted risks come to fruition (as they have), how can the stadium ever be ‘made to work’?
    I am sure the time will come, whether we/they like it or not, that the stadium has to be mothballed. They will say, ‘We can’t just have the stadium sitting there!’ There will be no alternative. There will be other demands on council for ‘unforeseen’ urgent expenditure. Witness, for example, the problems on our foreshore, the repair to water pipes estimated at $20m per year or the myriad of jobs being lost from Dunedin that cut the economic ground from under us. The costs of maintaining and running the stadium would put us under further strain. Part of the “$188m” was the $6.4m maintenance budget but this was never set aside – so there is no budget for maintenance.

  17. amanda

    The city has assets that can be privatised to pay for the debt that Hudson, Noone and Acklin created. Since the media is not reminding voters of this, Hudson can ensure lucky stakeholders can pick up these assets nice and cheap as well as Hudson and mates still continuing to manage the city as they please.

    • Slight problem with that ‘fire sale’ Amanda, most of the council and company assets are leveraged. Oh, apart from the water that falls out of the sky!

      • SLOW NEWS | TRASH
        Quality entertainment! Brought to you by dickhead Darryl. What we pay our rates for.

        ”It hasn’t been done in New Zealand before and will actually be the first Girls Of Gridiron tour in Australasia.”

        ### ODT Online Mon, 5 Aug 2013
        Stadium to host Girls of Gridiron
        By Rosie Manins
        Another national first is being staged at the Forsyth Barr Stadium in Dunedin. Australian event promoter Darryl Tombleson has announced he is bringing the Girls Of Gridiron to Dunedin on November 16. The show will comprise a 90-minute game between two teams of 10 female athletes, from the United States, Canada, the United Kingdom and Australia. Live music as well as entertainment by cheerleaders would also be provided, in the first and only Girls Of Gridiron show in New Zealand, Mr Tombleson said. The game would be followed by an ”on-the-pitch afterparty” where audience members could meet the players, he said.
        DVML yesterday confirmed the event was planned for November 16 and tickets were on sale.
        Read more

        • ### ODT Online Fri, 16 Aug 2013
          Foundation to benefit
          By Rosie Manins
          Thousands of dollars could be raised for charity through the Girls Of Gridiron event in Dunedin. Every ticket sold will result in a 50c donation to the New Zealand Breast Cancer Foundation. Organisers hoped about 10,000 people would attend the game at Forsyth Barr Stadium on November 16. It will be the only Girls Of Gridiron event in New Zealand.
          Read more

  18. Mike

    I figure he thinks he knows his audience

  19. Hype O'Thermia

    Reckon you’re right, Mike, next billboard
    GRILS GRILS GRILS
    NUDE JELLEY WRESTLING!!!
    ALL HOT CLASSY BABE’S!!!

    Yee-haw!

  20. amanda

    Lol. One way to save some funds for the city would be to dispense with Burden’s $250,000 salary (or more) to try and make the stadium he pushed for ‘work’. You are not doing it right Burden.

  21. Russell Garbutt

    I bet mother of four from Inner Caversham will be falling over herself to get tickets for this high grade entertainment. Just the thing to take her mind off trying to figure out where the money is going to come from to pay for the interest on the debt for the venue. I wonder if she could get St Farry of St Clair to stump up the cost of tickets?

  22. Peter

    I guess Steve Crow will be lined up next to stage his ‘Boobs on Bikes’ street parade!
    Don’t knock nude jelly/mud wrestling, Hype. The stadium would certainly fill, even for high priced tickets, if the citizenry could watch Malcolm and his buddies in action.

    • Peter, we will drag the miscreants through the streets before the gladiatorial. Darryl’s entrepreneurship is kinda like the ‘Dunedin sex ring’ on steroids.

  23. Phil

    On the positive side, the sale of long trenchcoats is likely to increase between now and November 16th.

  24. Mike

    Don’t give them ideas, we’ll end up with the DCC buying one hundred gross trenchcoats with the intent of renting them out time after time.

  25. MC for the “Grid Iron Girls”? Who better than David Benson-Dope. He would be right in his element, might even do an act or two himself as a lead in. I can just see it now. Pity it doesn’t fall until after the election. It would have been a good opportunity for him to show us his credentials, OOOHH…don’t look Ethel!

    • Certainly is light-hearted entertainment for the undiscerning, and a major distraction from DVML’s sole purpose: multimillion-dollar debt creation. Such is the tawdry power of female athletes wearing smaller thinner items of clothing under the protective gear, according to our man Darryl.

  26. Wise One

    The Stand up Otago campaign is nothing but a political stunt by the ODT to divert attention away from the millions of unauthorised ratepayer dollars that have been stolen to line the pockets of cronies and fat cats of council. $260 million. How many jobs could have been created if this ratepayer money had have been spent with the intention of actually creating an economic future for the people of Dunedin. It is a sad day for the people of Otago indeed , when the ODT has become a political instrument to bury the truth.

  27. Mike

    The thing is an organised development program could be a real boon – but most of what I’m seeing is people trying to get other people to do something. I’d be much more impressed by a Mayor that said “Let’s do …” rather than one who says “You should do …” it all smells of passing the buck – being mayor is primarily a leadership job.

    Getting all the same tired faces around a table wont create anything really new – sure it makes you look like you’re doing something, and it is election year, so I guess it fulfils its real goal.

    As I’ve said elsewhere it’s very unlikely there will be a sugar daddy come along and rescue us, whether it’s in the form of a stadium, or a giant hotel, or an oil find, or any one or two giant projects. Instead we need to do some actual hard work, invest some real wealth in the future (rather then trying to strain it out of us by selling over inflated land for stadiums, or bailing out for-profit sports franchises) – and do it in a way that leaves the profits in the city, not in Aussie banks, not in Auckland, not in Queenstown. And we need to not put all our chickens in one basket – lots of little successes are more likely to happen than one giant one.

  28. Lance

    Cull calls a summit after 85 jobs lost.
    What about a summit to look into the unauthorised $3.7 million during your term in office Mr Cull?
    Diversification is the name of the game. Divert attention away from the real issues of increased ratepayer debt. With the assistance of the Oddity. What a pity that Fonterra do not have their head office in Dunedin. Now there is something to take your mind of $3.7 million unauthorised expenditure. Who’s signature is on the $3.7 million cheques, and was he/she un/authorised to sign? Must be a paper trail somewhere.

  29. Hype O'Thermia

    Great news about the Hard To Find (But Worth the Effort) Quality Secondhand Bookshop. I saw the sign and lights on in the building on Tuesday night and thought, here’s something I have to explore soon.
    http://www.odt.co.nz/news/dunedin/267580/its-just-not-viable-auckland

  30. amanda

    You make good sense to me Mike. Only problem is it seems to me that only ‘visions’ that are going to line the pockets of Important Stakeholders get the green light from council and the chamber of commerce, if something is for the better of Non stakeholders, it does not get the same sort of support.

  31. amanda

    This political drumming up of support for Cull by the ODT is plain unethical. Does the local media have no shame?

  32. ODT Watch

    I see Robin Charteris, former ODT editor, has written a letter to today’s ODT concerning the proposal for a regional political party of some description. What a woeful, intellectually light letter it is too. Unbelievable for a man who once was an editor of a city daily.
    He would like Ian Taylor to head it and to include Stuart McLaughlan, Dave Cull, Peter McIntryre and Richard Thomson. Talk about a less than subtle plug for the election coming up. Sorry, Robin, you have overplayed this one.

  33. amanda

    At least Taylor can try and sing the ‘Job creators’ song with some justification, but the rest? Please. Cull, McIntyre, Thomson and McLauchlan? not so much. The same old tired faces. Madness to look to these men for any help, these ones are all responsible for the debt the city is mired in.

  34. Wise One

    May I suggest amanda that you check the position that Taylor took on the stadium fiasco. That wasn’t job creation . It was debt creation.

  35. Peter

    I suppose they will put great store on the Gridiron Girls to bring in more jobs… coz of the stadium and all the bounty it was supposed to bring.
    That kind of act, in the stadium, reminds me of cinema drive-ins in Australia in the 1960s/70s. All very popular to start with, until they lost favour, and were forced to show B to Z grade films – erotica/soft porn, in fact, beaming into the local neighbourhood.
    Eventually, even these low-brow films palled, even for the Shaggin’ Wagon Brigade, and drive-ins were shut down and bulldozed. A prophecy for the stadium?

  36. amanda

    Yes. Too bad Taylor’s business acumen didn’t extend to predicting the stadium debt creation.

    • Better Taylor sticks to his knitting as an entrepreneur and businessman; historically, his outbursts in the media show he lacks balance, and fails to research and accumulate institutional knowledge. Blowhards need not apply for city leadership positions. Taylor is smart enough not to put himself forward despite the fawning vassals, like ODT’S Dave Cannan today at The Wash.

  37. Anon

    Be careful people. Tombelson will promise things like he did with the rodeo and not deliver. He is a conman and shouldn’t be trusted.

  38. Anonymous

    Stadium management and their Puppy Parade at council still act like they have more money than combined intellect (and that’s a negative number involving many hundreds of millions) – they are running one of those ghastly full wrap ads on the front of Stuff (*). That’s got to be expensive. The sell? Apparently we all work really hard (quite true) and the perfect way to relax is buy fricking tickets to one of their meat head games at the FORSYTH BARR STADIUM (wee bit of sick there). Yes, their pissy contribution got them a massive banner on the front of Stuff complements of some black-ops budget out the back of Dunedin City Council.

    We are continually primped and pumped at every turn. And, oh my, are there so many opportunities left for the Stakeholders. Fortunately most of them live elsewhere when Dunedin residents cannot even see over the rim of the hole they’ve dug us into.

    (* Sometimes I click on Internet Explorer and get caught with the lumbering dancing, singing, moving marketing crap that Stuff and Oddity drown their so-called news in. Thanks to Firefox and AdBlock Plus.)

  39. Chris Evans

    Relax you analytical twerps.
    Entertainment comes in all shapes and sizes.
    Elton John, the International Rodeo, the Girls Of Gridiron, to a Piano Concerto, or market day on the pitch.
    If it’s your cup of tea, fantastic.
    Who are we to judge, if it’s light hearted entertainment that you enjoy, or something more traditional, then that’s your choice, as we all need a distraction from life’s grind at times.
    Forsyth Barr Stadium is a fantastic venue, and I for one would love to see a greater variation of entertainment through its gates, other than Rugby.
    The ‘too much time on their hands public’ need to stop ramming their holier than thou attitude down the throat of every poor soul who has the misfortune to endure their rants!!
    Try something different, the frightening aspect of that thought is you might enjoy it.
    The disgusting flip side to that thinking is, that you’ll have to find something new to bitch about.

    • No serious pianist I know would attempt a concerto at Otago Stadium. What the.

    • Hype O'Thermia

      If it genuinely worked, worked to the extent that it wasn’t continually bleeding funds out of the city that Councils, businesses and individuals could use so much more productively, we wouldn’t be “bitching” about it. If it were earning enough to pay down the debt we’d still be annoyed at the level of debt and the delays thereby imposed on more useful development in our city but we’d have nothing much to complain about other than the “strange” deals and procedures that went into its existence.
      Past foolishness and/or self-delusion and/or corruption should be, unfashionably, “relitigated”. How else can learning from experience occur?

  40. Peter

    Chris. There are people who enjoy getting stoned, and going with the flow, but there is always the come down afterwards. Same thing with the stadium. Enjoy the place, if it is your cup of tea, but once you have had the buzz of getting stoned at an event there, you (we) still have to pay the dealers who got us hooked in the first place.

    • Chris Evans

      Hi Pete,
      I love your sense of humour.
      The sad aspect of your comment is I feel you’re being serious.
      Relax, there’re a lot more dangers in life then gorgeous women playing sport.
      Have a drink, and wind down, each to their own.
      I don’t knock your bible study!!

  41. Peter

    Chris. Not sure how you got the impression I’m a wowser. Far from it. Just making an analogy, that’s all. The trouble is when some people’s idea of fun impacts on others in a detrimental way.

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