Daily Archives: August 1, 2014

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

3 Comments

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

DCC: Sorting THE MESS

DCC via Ch39 (2)

Is it now time for a commissioner to be appointed to govern Dunedin? Russell Garbutt asks the question. (ODT)

### ODT Online Fri, 1 Aug 2014
Opinion
Council failing to govern Dunedin
By Russell Garbutt
There are a number of factors that point to the drastic action of appointing a commissioner to govern Dunedin as being the only solution to contain a council unable or unwilling to govern a city in accordance with the requirements of the Local Government Act. Such factors include the financial position Dunedin residents find themselves in. While Dunedin’s rate of growth is static, the population is made up of a significant number of transitory students at the city’s tertiary institutions and a significant number of residents who are elderly and have limited incomes. And yet this same population has a level of debt per ratepayer second only in the country behind Auckland, which is growing in size and ability to pay off debt. Most of this debt is directly due to the decision to fund a new rugby stadium that a previous council decided to progress, despite the lack of private construction funding. The truth behind this project will be revealed only by a full forensic audit of all matters connected to the stadium, but this council seems unwilling to learn what happened and even more unwilling to be able to take any action that may flow from such an independent audit.
Read more

● Russell Garbutt, formerly from Dunedin, is a Clyde resident.

****

Cr Calvert “fired a shot at Cr Benson-Pope, claiming he had access to answers – as a committee chairman – in ways some other councillors might not enjoy”. (ODT)

### ODT Online Fri, 1 Aug 2014
278 official requests to council for information
By Chris Morris
Two of Dunedin’s city councillors are helping flood Dunedin City Council staff with official information requests, as a third councillor questions the cost of providing so many answers. Figures released to the Otago Daily Times yesterday showed the council has received 278 official information requests since July 1 last year, more than in previous years. The requests included 34 sent by the city’s elected members, most of which had come from Crs Hilary Calvert and Lee Vandervis, it was confirmed.
Read more

Posted by Elizabeth Kerr

*Image: DCC YouTube screenshot reworked by whatifdunedin

17 Comments

Filed under Business, Construction, Cycle network, DCC, Delta, Democracy, Economics, Media, Name, New Zealand, People, Pics, Politics, Project management, Property, Stadiums, Town planning, Urban design

University Partyville, North Dunedin: Put the cameras in ~!!

Dunedin disorder 1 [stuff.co.nz]Dunedin disorder [stuff.co.nz]

“We’ve earned the right to live away from home and live by ourselves and do what we want and I don’t think we should be baby-sat or monitored,” Ms Walker said. Students “should be able to be stupid on the weekend” and the situation had improved from previous years. –Maddy Walker (21), student

“If you look at the costs to city council every year of holes burnt in Leith St, Hyde St, Dundas St … some years it’s been $600,000.” –Cr Lee Vandervis

### ODT Online Fri, 1 Aug 2014
Call for north end cameras
By Vaughan Elder
A Dunedin city councillor is calling for video surveillance of the student quarter as a way of preventing out-of-control vandalism. The call for surveillance from Cr Lee Vandervis was not welcomed by north end residents and students spoken to yesterday, who said such a move would be an invasion of privacy. Cr Vandervis said video surveillance in the Octagon worked well and there was no reason why it could not be successfully employed in North Dunedin. “I believe we need to have some cameras up and we need to have a few prosecutions.”
Read more

A Traditionally Burnt-out Couch

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Posted by Elizabeth Kerr

*Images: (from top) stuff.co.nz, stuff.co.nz, wikimedia.org – North Dunedin

4 Comments

Filed under Business, Construction, DCC, Democracy, Design, Economics, Hot air, Media, Name, New Zealand, Otago Polytechnic, People, Politics, Project management, Property, Site, Stadiums, Tourism, Town planning, University of Otago, Urban design