Famous Fat Bros’ Aurora/Delta news trickles in…. but can the sisters divorce

### channel39.co.nz Wed, 29 Mar 2017
Delta and Aurora Energy to separate
About 95 Delta employees are expected to transfer to Aurora Energy by mid-year as the two companies separate. The business divorce is one of the recommendations from an independent review by Dunedin City Holdings Limited. Delta and Aurora Energy Chair Steve Thompson says they expect no redundancies from either business. Delta will employ just over 500 staff following the transition. Aurora Energy will be a network company with network renewal as its priority, while Delta will provide electricity distribution, green-space and solid waste services.
Ch39 Link

Review of Aurora Energy Limited / Delta Utility Services Limited – Network Safety Concerns (December 2016). Deloitte.

****

### radionz.co.nz 9:22 pm on 29 March 2017
Dunedin’s Aurora Energy to take on Delta workers
Almost 100 employees from Dunedin power lines company Delta will transfer to its sister company Aurora Energy as the two firms separate.
The split of the council-owned companies was sparked by the discovery that thousands of power poles in Otago were rotting.
A whistleblower last year revealed thousands of power poles managed by Delta and Aurora were failing.
The Dunedin City Council released a report in December that recommended splitting the council-owned companies into separate entities, after three official inquiries.
A report by Deloitte recommended separate board management structures.
In a statement today, Delta said 95 employees would transfer to Aurora by mid-year, and there were no expected redundancies.
RNZ Link

****

DCHL/DCC farming of the conjoined twins deserves a break….

█ The devilish ongoing loss of one billion dollars of Otago line user and ratepayer funds. And Steve Thompson can’t be contacted. Oh brother.

Yes we really believe the two council-owned companies have great governance and superb management!? We also totally believe DCHL is a solid grounded entity!? Pity about the number of executive and staff resignations from Delta to date, and the resulting inability to fill job vacancies. Would you touch these blighted babies. Oink.

At Facebook:

****

### ODT Online Thu, 30 Mar 2017
Restructure proceeds
By Vaughan Elder
Dunedin City Council-owned companies Delta and Aurora are a step closer to becoming separate entities. Aurora and Delta announced in a joint press release yesterday about 95 Delta staff were expected to transfer to Aurora Energy by mid-year as part of the companies’ transition to standalone entities. The transition comes after a Deloitte report into accusations Aurora dangerously mismanaged its power network and failed to replace compromised poles recommended the two companies be split. According to Aurora’s annual report, it employs no staff and the management of the company is carried out by Delta, which is also contracted to carry out network maintenance. The Deloitte report said the closely linked arrangement was “fraught” with challenges, but acknowledged Aurora had been working on a restructuring programme which would have split the two companies in any case. Delta and Aurora chairman Steve Thompson, who was not available to answer questions about the press release, said significant progress had been made in the reorganisation of both businesses.
Read more

Related Posts and Comments:
11.3.17 How Safe Are We/Our Businesses with the Corporate Disaster that’s Aurora, owned by DCC ? #reliability
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
12.11.16 Delta/Aurora : Current strategy to “fix on failure” [extreme neglect]
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL in slipslidy mode
● 9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *aurora*, *delta*, *grady*, *poles*, *asset management plan*, *dchl*, *auditor-general*, *epicpolefail* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: monsters international via blogspot.com – Siamese Twin Pigs by Alicia B Lim, ink on watercolour paper (US), tweaked by whatifdunedin

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24 Comments

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24 responses to “Famous Fat Bros’ Aurora/Delta news trickles in…. but can the sisters divorce

  1. Hype O'Thermia

    Wait, there’s more!

    “Delta has lost its multimillion-dollar contract to run the Green Island Landfill and transfer station.
    The Dunedin City Council announced in a press release this evening that Waste Management Limited had won the contract after a competitive procurement process.
    The contract has a value of $20.6 million over an eight-year period, which saves ratepayers more than $500,000 over the term of the contract…….”

    Golly gosh, doesn’t this remind you of the Compass hospital meals deal? HUGE savings (ahem) and loss of control (see Gary Charters’s comment below).
    According to Lyall Woods on facebook commenting on the ODT news, it means we’re sending $20.6 million out of town, indeed out of NZ.

    Facebook comments:
    Gary Charters : So when there is a price rise, we as rate payers dont have a leg to stand on now.

    Stephen Hoseit : well thats good for us

    Lyall Woods : No it”s not good for us. Now run by a Chinese owned company..

  2. Elizabeth

    At Facebook:

    ****

    Dunedin City Council – Media Release
    Green Island Landfill contract changes

    This item was published on 30 Mar 2017

    The awarding of a new multi-million dollar solid waste contract will bring a wide range of benefits for Dunedin residents.
    Dunedin City Council Acting General Manager Infrastructure and Networks Richard Saunders says, “This new contract will deliver a great service and a high level of expertise.”

    Waste Management Limited has been identified as preferred supplier for the contract to run the Green Island Landfill and transfer station. The contract, which is subject to final negotiations, will start on 1 July. The contract has a value of about $20.6 million over an eight year period. This saves ratepayers more than $500,000 over the term of the contract. There was a competitive procurement process for the new contract, with four tenders received. The tenders were evaluated on quality of service as well as price.

    The DCC currently has a single contract that delivers a wide range of solid waste services. This contract, held by Delta, has been in place since 2003. From 1 July, those same services will be provided through three separate contracts.

    The first of these to be decided is the contract to run the Green Island Landfill and transfer station. The other two contracts are an environmental monitoring and reporting contract and a contract centred on running rural transfer stations. These will be decided in April. The collection of kerbside rubbish and recycling is not covered by the three new contracts. The current kerbside collection contract will be reviewed in 2018/19.

    In terms of the Green Island Landfill contract, Mr Saunders says, ”Waste Management is a specialist in this field and the largest provider of waste services in New Zealand. Dunedin will benefit from the technical expertise and resources that can be accessed through their wider network.”

    The DCC will work with Waste Management to see if there are opportunities for some Delta landfill staff to be redeployed.

    Waste Management will have more staff on site at the Green Island transfer station to help customers unload, manage health and safety issues and increase the amount of material that can be recycled or re-used. Waste Management’s Fairfield landfill was due to close this year. It could now close by 1 July, with staff and mobile plant and equipment moving to Green Island for the start of the new contract.

    Mr Saunders says combining the waste from the two landfills provides an opportunity to increase waste diversion. “We are still strategically focused on waste minimisation and waste diversion.”

    Contact DCC on 03 477 4000.

    DCC Link

  3. Elizabeth

    Link received.
    Thu, 30 Mar 2017 at 10:13 p.m.

    Last updated 21:24, March 30 2017
    Stuff: Dunedin City Council dumps council-owned company from $20 million rubbish contract
    Delta has been dumped. The council-owned company has lost its multimillion dollar contract to run Dunedin’s Green Island landfall. Workers were told the news on Thursday afternoon, with the company yet to confirm possible job losses. The contract, which has been awarded to Waste Management Ltd, has a value of about $20.6 million over an eight year period. […] Ratepayers would save more than $500,000 over the term of the contract, which begins from July 1. Cont/

  4. Gurglars

    Stuff Delta, we have to continue our progress towards a green sustainable city whatever the cost to ratepayers and Dunedin City. Go Agenda 30.

  5. Calvin Oaten

    Again, the vagaries of a bureaucracy at work. It first gets the frighteners, then it panics but doesn’t look at the bigger picture. Yes, a Private company taking its rightful returns out of Dunedin for a miserable gain of $500,000 over eight years. Huh?!! Does any bureaucrat know if that projection will be fulfilled. Would the $500,000 offset the leaving of town of the contract price? Do they know? Do they care? What about our illustrious Mayor, does he know, does he even ask? This is the hallmark of the left hand not knowing what the right is doing. Which when one thinks about it is the general state of affairs and has been since the turn of the century. Well done the council staff. But then do they know the answers ?

  6. Gurglars

    They will say Calvin that they were between a rock and a hard place, criticised whatever tender they took. The reality is if the choice was Delta unless the savings were significant. The savings were not significant. Now the test is having lost a $20 million contract, how many staff will the DCC let go? If none then the nett loss to ratepayers is even greater and it is about time that the DCC understood who is the captain of the ship. The golden rule says he who has the gold rules, of course the staff may say, well it was your money, but now we’ve got it!

  7. Elizabeth

    As the ODT will show later this morning, Delta does not wish to comment further on the potential loss of the Green Island Landfill contract.

    Seems to be a certain DCC politics involved. If Delta appears to be no longer competitive, then remember how Delta has unrealistically undercut other tender bids at eventual cost to Ratepayers.

    • Hype O'Thermia

      Rocks v hard place, for ratepayers. Delta has a record of [ugh let’s not go there] so ratepayers pay & pay. Overseas owned companies including banks send money overseas…. How much money has Delta borrowed, forget whether it’s called Delta debt or DCC debt or Mrs Overall the tea-lady debt, we’re used to it being shuffled around from one nom-de-plume to another, it’s all OUR debt for which OUR Dunedin ratepayer money goes on a long long stay overseas.
      Where possible the remnants of OUR money should stay here. Jobs should stay here.
      Resulting in unemployed or lower-paid local people is NOT a win for Dunedin, I don’t care how they spin it.

      • Elizabeth

        Thanks for writing that Hype O’Thermia. The ‘crook’ that broke the sheep’s back. Meanwhile Mayor Cull has surveyed Hyde Street and made pronouncement. Pity he won’t pronounce upon the organised and disorganised Aurora/Delta party that has enriched the pockets of some fine private gentlemen and rugger admins about. As well as the overseas banks.

      • Calvin Oaten

        Hype, there goes my reason for a City Bank. No-one talks about it as it is in the ‘Too Hard’ basket, and they don’t understand it. Forgotten, long ago is the Dunedin then Otago Savings Bank flogged off as part of the co-operative nation-wide bank then all flogged off to Westpac. That was originally the type of system I’m advocating. It was local, locally owned, the profits stayed in Dunedin and locals borrowed to buy their homes. I did myself. Where now? Why not again, with the DCC putting up the capital and ‘The City Bank’ servicing the council’s debt. Interest stays in Dunedin and the profits do as well. Too hard? I’ve shown them how it can be done, but no-one is bothered, sooner run the city bankrupt I think.

        • A.R.M Chair Theatre

          You are all onto it. Maybe you always are. Good argument well writ. Well, not a writ. Well done.

  8. Elizabeth

    Sat, 1 Apr 2017
    ODT: No further comment from Delta
    By David Loughrey
    Dunedin City Council-owned company Delta is refusing to discuss its lost contract to run the Green Island Landfill, and will not disclose how many employees it has on the site. The company responded to Otago Daily Times queries on possible job losses and what the company will do to increase its success in bidding for contracts in future by resending a statement it sent on Thursday. Cont/

  9. Elizabeth

    At Facebook:

    ****

    Former Dunedin deputy mayor Dame Elizabeth Hanan contacted the Otago Daily Times to criticise the “short-sighted” decision.

    Tue, 4 Apr 2017
    ODT: Dumping Delta slammed
    By Chris Morris
    The Dunedin City Council has been accused of scoring an own goal after axing one of its own companies from running the Green Island landfill. But Mayor Dave Cull has denied the charge, saying the council was putting ratepayers’ interests ahead of its own bottom line. The debate followed last week’s announcement Delta, a DCC-owned company, had lost the eight-year, $20.6million contract to run the landfill.
    ….Waste Management Ltd was […] the council’s preferred contractor, following a competitive tender process which attracted four bids. Waste Management, owned by the Beijing Capital Group Co Ltd of China, has a New Zealand presence, including in Dunedin.
    ….It is understood 12 [Delta] workers were told on Friday their jobs were on the line, and that at least one manager’s role could also be affected. Cont/

  10. Calvin Oaten

    Much as it dismays me to agree with Dame Elizabeth Hanan, it is a logical summation of a ridiculous situation that has been cobbled by the dopey bureaucracy in the building. Looking at the bare facts of the matter, it is local jobs, as long as Delta belongs to the people then it ought to be given preference. It is not Delta’s fault it is in financial ‘schtook’, it is its management, both internal and directorial. It is up to the mayor and council to rectify (if possible considering the talent available around that table). Giving the job to a Chinese controlled organisation might well seem the answer, but the promised savings are so obtuse as to be unlikely to be factual in the fullness of time. Looking at the job losses plus the fact that the site has been more than adequately run by Delta, one has to ask oneself why was it tendered anyway? That is the real question, other than a bureaucratic mastering for mastering’s sake. The end result is that the eventual loser will be the citizens. Mayor Dave Cull simply runs with the system, never questioning for a moment whether it is in the right or wrong direction. Does that mean he has no idea?

  11. Elizabeth

    Dame Hanan may well have the inside running on this one.

    The fact of the inability to deliver a competitive bid rests fully with Grady Cameron, (resigned) Delta chief executive and interim botherer. This is an operational matter. Governance by the Delta board and DCHL is another matter – but see the loose Statement of Intent(s) delivered to Council each year.

    The Delta history of ‘competitive’ bids is legion, the undercutting makes your eyes water. This is a historic and contemporary condition. And now there are fewer qualified and experienced executives and staff to run the company; complicated by the inability to fill job vancancies, including the chief executive role.

    At this rate, Delta won’t be able to deliver competitive bids to Aurora or anyone else. I feel very sorry for the remaining work crews.

    In this case I think DCC made the right decision in a poor environment.

    I would prefer that DCC itself (major skills injection required) efficiently ran its landfill management and waste services operations. Harland is the one who made that an impossibility.

  12. Hype O'Thermia

    “Mayor Dave Cull has denied the charge, saying the council was putting ratepayers’ interests ahead of its own bottom line.”
    Is there a difference between council interests and ratepayers’ interests? Is the “bottom line” of importance to council but not to ratepayers?
    Is the Mayor rambling again?

  13. Elizabeth

    At Facebook:

    Saturday, 8 April 2017
    ODT: What’s best for city’s rubbish?
    By Chris Morris
    The Dunedin City Council’s decision to appoint an outside company to run the Green Island landfill will hit ratepayers in the pocket, but the clock is ticking towards bigger decisions about the future of the city’s rubbish. It was confirmed last week the council had awarded the Beijing-owned company Waste Management Ltd an eight-year, $20.6 million contract to run the Green Island landfill. […] the Otago Daily Times was also told yesterday Delta’s bid had come in at $18.8 million, significantly cheaper than Waste Management’s, although price was only 30% of the criteria. Losing the contract could also erode Delta’s ability to pay dividends to the council in future, potentially costing the council $5 million over the life of the contract, another source suggested. Cont/

    The lower tender bid just means more of the Delta undercutting / loss leader behaviour that has cost Ratepayers so dearly in the past. No thank you. Robber barrons never cease and desist. Listen up, Grady – you have failed every which way. Time to piss off, and go to hell. You haven’t looked after your workers —or the ratepayers and residents. Abysmal. Actionable.

    ****

    FRIDAY COMEDY HOUR

    Fri, 7 Apr 2017
    ODT Editorial: A bright future for Delta?
    OPINION Such is the current image of  Delta that there must be many wondering why the Dunedin City Council even owns the company. It has a history of failed development speculation — Luggate, Jacks Point and Yaldhurst, costing it many millions. It has been caught in the side-wash of sister company Aurora’s  underfunding of assets and it has lost Dunedin contracts for parks maintenance and the Green Island landfill. The size and number of its senior salaries have staggered the public, and its chief executive is leaving. Dig a little deeper, however, and Delta’s position is not so dire. The company, with the right leadership, has the opportunity to consolidate as a competitive contractor not just for Aurora’s business but elsewhere as well. Cont/

    Ha ha ha – you have to be bloody pulling our legs ODT. You’ve lost your Spine or the Smiths have had a word in your ear.

    Ratepayer funds have been used, misappropriated, abuised and lost by the two DCC-owned companies Delta and Aurora, the entire Otago power network has been degraded (the burnt asset)…. and incredibly, ODT says “not so dire”.

    [ODT better front with the missing billion owed to line users, to restore the full network.]

    Somebody has failed deliberately at the ODT team’s editorial table.

    WHY.

    The newspaper’s owners are in business with Steve Thompson, a quick check last week of the NZ Companies website showed that much.

    • Hype O'Thermia

      “Dig a little deeper”! Which hole, the one the money went into, or the one where the bodies are buried?

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