Tag Archives: DCC Group CFO

DCC dirty laundry/fleet cars #LGOIMA

What if Dunedin online

Related Posts and Comments:
18.9.15 DCC suddenly wakes up! *cough —after fleet car pointers from years back
● 16.9.15 DCC: Know your council ‘chair-leaders’ #pillowtalk [THE EMAILS]
4.8.15 Hundreds of DCC Staff receive fraud detection/prevention training #OMG
21.7.15 DCC: LGOIMA requests for the last month
24.4.15 DCC re Dr Bidrose’s time as most senior Citifleet Manager

Belatedly….
19.9.15 ODT: Information requests irk councillors

The latest salvo came after Cr Lee Vandervis made public an email exchange with Crs Benson-Pope and Richard Thomson, copied to other councillors and staff, earlier this week.

Cr Vandervis did not respond to ODT requests for comment yesterday.

In his emails, published online, he blamed a lack of information coming from council staff for the “tedious” need to resort to Information Act requests.

Biblical proportion…. [thanks RMN]

Matthew 23:23-25
23 “Woe to you, scribes and Pharisees, hypocrites! For you tithe mint and dill and cummin, and have neglected the weightier provisions of the law: justice and mercy and faithfulness; but these are the things you should have done without neglecting the others. 24 “You blind guides, who strain out a gnat and swallow a camel! 25 “Woe to you, scribes and Pharisees, hypocrites! For you clean the outside of the cup and of the dish, but inside they are full of robbery and self-indulgence….

Posted by Elizabeth Kerr (online)

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DCC suddenly wakes up! *cough —after fleet car pointers from years back

Oh wait, this is a new discovery. Pigs what fly.

Limp wrists, institutionalised rip-offs, with yet another trumped up (managerial) job title: “organisational development and performance group manager”.

DCC vehicles [Photo by RNZ Ian Telfer]Photo: RNZ/Ian Telfer

About 60 council staff had access to council cars to take home, but the review showed many no longer needed to.

### ODT Online Fri, 18 Sep 2015
DCC tightens up on private car use
By Chris Morris
The Dunedin City Council is tightening control of its vehicle fleet after finding dozens of staff have been taking cars home at night for no valid reason. The finding came after a review launched earlier this year which found “ad hoc” processes governing the personal use of council cars by some staff.
Read more

█ Sample comments dredged up from What if? Dunedin archives (from 36 of 134 pages pertinent to the site moderator’s search, is all….):

Phil
Submitted on 2014/12/30 at 11:49 am

Mick, the investigation brief to Deloitte, as weak as it was, was not limited to Citifleet. Of course Citifleet was the main focus, but the opportunity was given to carry out a general stocktake of DCC internal practices. Many of the internal interviews conducted had no relationship to Citifleet. Bad practices within other departments were identified with the help of staff, and recommendations given. As you say, the value of the report will be in how effectively the recommendations are enforced.

Phil
Submitted on 2014/12/29 at 9:21 pm

Terribly unfair. How will current Assistant department managers be able to get cheap maintenance from DCC contractors on their home air conditioning systems cheaply installed by DCC contractors now ? Or get their kitchen remodelled for half of the market rate ? How are these highly valued public servants supposed to survive if they have to live like normal people ?

I remember a few years ago when a (former) department manager telephoned all the contractors and asked them not to send Christmas gifts into the DCC offices. He offered instead to drive out to each contractor (presumably in a DCC fleet car) and collect the gifts himself. That’s going the extra mile.

Phil
Submitted on 2014/11/18 at 9:22 pm

Still on the list are the remainder of the senior staff who have been identified by Deloitte as being involved in serious and ongoing conflict of interest business dealings. Awarding uncontested contracts to family members with no internal checking, identifying a need for specialist equipment or services within their DCC department, buying the equipment/services privately, and then hiring it back to their own department. Most of the managers identified to date are long term managers with 20 years in the role. It seems that the younger staff elevated to management roles have a higher professional integrity level than their elder colleagues. I suspect a few more early retirements are on the horizon.

Phil
Submitted on 2014/10/30 at 3:43 am

I’m more impressed (or depressed) by the revelation that there are 43 current DCC staff members who earn in excess of $100k a year. Given that there are nowhere near 43 departments within DCC (more like half that number) that means that ridiculous salaries are not merely confined to heads of departments.

Phil
Submitted on 2014/08/22 at 6:17 pm

Cars, the number of vehicles actually required by DCC is being included in the process. Specifically mentioned in the internal memo released to staff by the CEO today was the private use of DCC vehicles by staff, which is a positive and overdue move. DCC assets are no longer available for direct purchase by staff or elected officials. Any and all potential conflicts of interest are now required to be formally registered. I think that Sue Bidrose is handling this as well as anyone faced with such a situation could. She could not have foreseen this mess. It was interesting in discussions last night that one of the few people within the organisation who spanned the entire fraud period, which pre dates Brent Bachop, was Athol. How did he miss this, given that he had the finance portfolio the whole time ? Not suggesting that Athol is involved but when you are talking about $1.5m, the buck has to stop somewhere.

Phil
Submitted on 2014/08/09 at 10:27 am

Well there’s an interesting development. In 2006, former DCC Group Manager, Grant Strang, buys a 1996 Hyundai Sonata for $2,500 from City Fleet. Hands a “Non Negotiable” stamped cheque to DCC Finance Department for said amount, and receives a receipt.

I have a couple problems with this story. In 2006 I was also working at the DCC. I was employed in a managerial role in the Civic Centre building although, to be fair, not at the level that Grant Strang was employed. But enough to see a few things. In 2006, Grant Strang ordered a $5,000 office chair for his room. I know this because I was shown the receipt by the 2 staff members who took delivery of the chair. I even took a spin in it. If you see a $5,000 office chair, you simply have to know what it feels like. Feels pretty good, I have to say. Anyway, the same man who thought he deserved a $5,000 chair, thought it was a good idea to buy a 10 year old Hyundai. Not knocking Hyundais, but sound like the same person ? We’ll get back to that.

As I said, I worked in the Civic Centre building in 2006. In the course of my duties, I had cause to be in the City Fleet garage about 4 times a week. For a few years either side of 2006. Most often I was there to make use of a City Fleet vehicle. Pretty uneventful stuff like going grocery shopping, taking the dog to the vet, picking up kids from school. Typical car pool activities. But one observation from that time bugged me today. Bugged me enough to contact a few of my former DCC colleagues. We all came to the same conclusion. In all our trips out in City Fleet vehicles, over all our years combined, not one of us could recall ever driving a fleet vehicle that was 10 years old. We struggled, in fact, to think of an instance when we drove a fleet vehicle that was more than 5 years old. How many companies find it economical to have 10 year old cars in their fleets ? Especially a company with the discount buying power like DCC. Sure, we had driven Hyundais, but they were all new models. We could only come up with one Sonata during that period and that was a car which, for some weird reason, was especially reserved for use only by one Rodney Bryant. We won’t get into that one.

The cheque. First up, how many people write cheques in this age of electronic bank transfers ? To the same company that you work for. In the same building. Grant Strang’s office was on the second floor of the Civic Centre building in 2006. Finance lived on the third floor. According to Grant Strang, he walked up one flight of stairs and delivered them a cheque for $2,500. He was so worried about the 15 metre internal journey, and so mistrusting of the staff in the Finance Department of the same company in which he was a senior manager, that he felt the need to cross the cheque as Non Negotiable. Seriously ? I worked probably 50m away from Finance and I knew them all by first name.

Now, I have no doubt that Grant Strang wrote a cheque for $2,500 and gave it to DCC Finance Department. And I have no doubt that he received a receipt for that $2,500 as the payment for a 1996 Hyundai Sonata. I’m sure that the financial paperwork is very clean and deliberate. My question is, what car did he drive away in that day ?

{Link: http://www.odt.co.nz/news/dunedin/312126/cars-staff-and-councillor -Eds}

Phil
Submitted on 2014/06/26 at 7:11 pm

I’m trying to get my head around the numbers as well. I’m assuming that the Citifleet stocks include for the likes of the Water Dept, Library buses etc. From memory there are about 300 people working in the Civic Centre, so 200 vehicles is a hell of a lot to service just the Civic Centre. Some vehicles were permanently reserved for particular people, but even so.

The issue of “take home” vehicles has always annoyed me. The Chief Building Inspector does not need to take a DCC car home every night. He is not on the roster for after hours call-outs. Neither is the head of the Environmental Health department. On the subject of call-outs themselves, I would say that 80% of those who work in the Civic Centre live no more than a 10 to 15 minute drive from their home. Should they be required to attend something out of hours, it is not unreasonable to expect them to drive their own car to the Civic Centre, park it in the Civic Centre garage, and then take out a DCC car. It’s not a Health and Safety issue as they use private transport to get to their place of work every day. There is absolutely no reason why the car pool needs to get emptied out at 5pm every evening. Part of the problem, I believe, is that the majority of vehicles are unmarked. People would be far less likely to park up in the Countdown carpark on a Saturday evening if there was a thumping great DCC logo painted on the side.

Phil
Submitted on 2012/07/16 at 5:42 am

If Paul Orders is hunting for more suggestions, he can take a look at the ridiculous “retention” money being paid to lower and middle DCC managers over and above their listed salary. Bumping up the gross income to between 30 and 50% higher than the salary listed for them. No staff member in the DCC is that indispensable. Likewise to the staff members receiving 105% of their graded salary, year after year, supposedly reserved for a “one off action”. This practice has been going on for so long now that staff are expecting it as a right.

Phil
Submitted on 2012/07/13 at 9:01 am

Speaking of DCC and transport, I heard a big grizzle from inside the hallowed halls a couple of days ago. Paul Orders’ latest economy drive (pardon the pun) effort has been to put the brakes (another goody) on the practice of staff routinely taking home DCC cars at night. Good on you, Paul, and not a day too soon. A bouquet from me. This blatant abuse used to annoy the hell out of me. 50 cars in the DCC car pool that would disappear at 5pm every evening. You would get mowed down if you dared walk in front of the garage driveway at 30 seconds past 5pm. The majority of cars are now unmarked (big mistake), removing the ability to monitor private usage of publicly funded vehicles. They should all be marked. The only area potentially requiring stealth is noise control, and that’s carried out by private contractors (in their own MARKED vehicles, I might add). There is no reason why staff members need to take DCC cars home at night and weekends. 99.9% of the staff are not on a 24 hour callout. Of those who might be called out (once every 6 months), the majority live no more than 15 minutes from the DCC garage. They can easily drive to the Octagon and collect a DCC car if they need. The Chief Building Inspector does not need a DCC 4wd car parked up in his Wakari driveway every night. No one from the I.T. department should be driving to and from Fairfield to work in a DCC car. City Property staff do not need free undercover carparks 2 minutes from the Octagon. Rodney Bryant did not need a dedicated unmarked DCC car which no other staff member was allowed to use (although that may have been a passive smoking Health and Safety issue to protect the rest of the staff). My alltime favourite was the Environmental Health Officer who used to schedule his restaurant inspections for 8am every day (every day), so that he would “have” to take a DCC car home the night before. It’s childish behaviour and good on the CEO for doing what these supposed professionals should have had the decency to do themselves.

et cetera

Posted by Elizabeth Kerr

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Fairfax Media: Police release Citifleet investigation report

Updated post
Wed, 12 Aug 2015 at 4:50 p.m.

██ CITIFLEET POLICE REPORT (PDF, 4.41 MB) —via Fairfax Media

The detective, who has since left the police force, also noted the council did not supply Bachop’s credit card or fuel card statements as requested.

### Stuff.co.nz Last updated 13:08, August 12 2015
Police raised possibility of others involved in Dunedin City Council Citifleet fraud
By Hamish McNeilly
It had been billed as the work of a sole suspect, but a police file into the investigation of the theft of 152 cars from the Dunedin City Council fingers the “highly suspicious” activity of another unnamed person. Police have released to Fairfax Media their investigation report into the Citifleet fraud.
Read more

Previous articles:
18.12.14 Stuff: Car fraud pinned on dead man
3.6.14 Stuff: Dunedin council unit under scrutiny

[screenshot – click to enlarge]

Email 12.8.15 - Hamish McNeilly Fairfax Media Dunedin Bureau Chief

█ For more, enter the terms *citifleet*, *conduct* and *vandervis* in the search box at right.

Posted by Elizabeth Kerr

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Otago power consumers pay stadium debt, SO SORRY

Supplied.
ODT 29.7.15 (page 12)

ODT 29.7.15 Letter to editor Oaten p12

Posted by Elizabeth Kerr

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DCC: DCHL on Waipori Fund

Dunedin City Council – Media Release
Positive Result for Waipori Fund

This item was published on 22 Jul 2015

The Waipori Fund performed strongly in the past financial year while meeting key targets. The fund’s capital base for 2014/15 is above its inflation adjusted target for the first time since 2008.

The fund is managed by Dunedin City Treasury Limited, a company owned by Dunedin City Holdings Limited (DCHL). DCHL is in turn is owned by the Dunedin City Council.

DCHL Chair Graham Crombie says this is an important measure because it shows the fund’s capital base is not being eroded. “As well as a good overall return for the year, it’s very pleasing to see the fund achieve this threshold.”

The fact the fund reached the target in the past financial year was mainly due to strong equity in the bond markets and a weakening New Zealand dollar.

The market value of the investment portfolio was $81.6 million at 30 June 2015. This was a 13.1% return for the year. This return also met the income objective of exceeding the official cash rate plus the consumer price index.

The graph below shows the progress of the fund since its establishment. The fund was created from the sale of the Waipori electricity generation scheme. It provides a source of revenue for the Council which can be offset against rates.

Waipori Fund
waipori-fund

Contact Group Chief Financial Officer on 477 4000.
DCC Link

****

The distribution to council was budgeted to increase slightly over the period of the council’s 10-year plan.

### ODT Online Fri, 24 Jul 2015
DCC has no plans to spend surplus in Waipori Fund
By Chris Morris
The Dunedin City Council is celebrating a better-than-expected 13.1% jump in the value of its Waipori Fund, but has no plans to spend the bonus. […] Council group chief financial officer Grant McKenzie said the “solid” result reflected strong equity in bond markets and a weakening New Zealand dollar. […] “It’s just a funding stream for council.”
Read more

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DCC Long Term Plan 2015/16 – 2024/25

DCC LTP 2015-16 to 2024-25 (draft LTP consult cover)
Name: Long Term Plan 2015/16 – 2024/25
Document type: Plan
Date approved: 29 June 2015
Review date: Every 3 years
Department responsible: Dunedin City Council
Position responsible: Mayor of Dunedin

The Long Term Plan 2015/16 – 2024/25 (LTP) was adopted by the Council on 29 June 2015.

PDF’s of the LTP as adopted by the Council, along with the independent auditors opinion are available below.

A final published copy of the LTP will be posted shortly and print copies of this will be available on request from the Customer Service Agency later in July 2015. A summary of decision-making on submissions will also be made available shortly.

What is an LTP?

A long term plan is a public accountability document and provides a basis for the community to assess their Council’s performance.

The 2015/16 – 2024/25 Long Term Plan sets out the Council’s financial strategy for the next 10 years and contains information on the changes the Council plans to make to achieve this strategy, how the council will measure its performance, the projects that the Council plans to carry out over the next 10 years and financial information including draft budgets, funding sources and changes to rates. The 2015/16 – 2024/25 Long Term Plan also contains the Annual Plan for the 2015/16 year with information on fees and charges for the 2015/16 year.

██ http://www.dunedin.govt.nz/your-council/long-term-plan-2015-2016

Long Term Plan documents

2015-25 DCC LTP unqualified audit opinion with EOM (PDF, 84.4 KB)

Introduction (PDF, 615.9 KB)
Introduction to the LTP (What is an LTP, Mayoral Introductions, Members of Council and Community Boards, Map of Dunedin City, Council Committee Structure and Dunedin City Council Organisation Chart, Audit Opinion)

Section 1- Major issues and Strategies (PDF, 5.8 MB)
Major Issues and Strategies (Major issues for the ten year plan, results of consultation, the Council’s strategic framework, approach to sustainability, city profile, financial strategy, 30 year infrastructure strategy, Maori capacity to contribute to decision making)

Section 2 – Group Activities (PDF, 2.7 MB)
Group Activities (describes the services provided by the Council, their contribution to community outcomes, framework for performance measurement and group financial information)

Section 3 – Forecast Financial Statements (PDF, 877.9 KB)
Forecast Financial Statements (financial statements, gross debt chart, accounting policies, 10 year capital expenditure programme, prospective information, significant forecasting assumptions, inflation adjusters, reserve funds, long term plan disclosure statement)

Section 4 – Funding Impact Statement (PDF, 1.1 MB)
Funding Impact Statement and Revenue and Financing Policy (Summary of changes to the rating method, council funding impact statement, additional information, rating unit projections, funding principles, Revenue and Financing Policy 2015, Remission and Postponement policies)

Section 5 – Other Policies (PDF, 4.2 MB)
Other Policies (Treasury Risk Management Policy, Development Contributions Policy, Significance and Engagement Policy)

Section 6 – Council Controlled Organisations (PDF, 358.3 KB)
Council Controlled Organisations (Information about companies owned by the council that manage facilities or assets and/or deliver significant services for the Council)

Section 7 – General (PDF, 602.3 KB)
General (Schedule of fees and charges, information about council grants and events funding)

Schedule of Fees and Charges Schedule of Fees and Charges for the 2015/16 financial year

Agenda, reports and minutes 18 to 22 May 2015 Agenda, reports and minutes of LTP Deliberations and Decision-making 18 -22 May 2015

Draft LTP Consultation material The Consultation Document and all supporting documents for the Consultation phase

Public Feedback
You are able to search by submitter and view the details of the submission received by the Dunedin City Council to the Long Term Plan 2015/16-2024/25.
██ http://www.dunedin.govt.nz/your-council/long-term-plan-2015-2016/public-submissions

Posted by Elizabeth Kerr

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DCC: LGOIMA requests for the last month

Received from Lee Vandervis
‎Tue‎, ‎21‎ ‎Jul‎ ‎2015 ‎at 8‎:‎24‎ ‎p.m.

[screenshot — click to enlarge]

DCC LGOIMA requests from the last month as at 21.7.15

Posted by Elizabeth Kerr

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DCC Citifleet, [a] Deloitte report leaked

DCC logo (fraud) 2

WHY WASN’T THE SERIOUS FRAUD OFFICE CALLED IN RIGHT FROM THE VERY START WHEN CR LEE VANDERVIS ALERTED FORMER DCC CHIEF EXECUTIVE PAUL ORDERS TO CAR FRAUD ???

Then too, think of all the people who had access to the Deloitte reports (plural) – more specifically those without access to the digitised data report. That ‘narrows’ the field of leaks to Deloitte itself, NZ Police, private investigators, counsel, privileged council staff, privileged mayor and (some) councillors, those council staff whose lawyers worked on their ‘resignations’ / exit packages….
Who else? A veritable feast.

No-one named in the ODT today hasn’t been mentioned at What if? posts and comments previously – this includes the names of the car companies.

### ODT Online Sat, 4 Jul 2015
Questions still unanswered
By Chris Morris
[…] even after reading Deloitte’s full “Project Lewis” investigation report – the Otago Daily Times was leaked a copy – there are still many unanswered questions … [The report] named members of three Dunedin families who, together, bought dozens of council-owned cars … Those names included Wayne McFadyen, Destry Duff and Shayne Perkins and members of their extended families, who between them bought 42 vehicles, Deloitte found.
Read more

****

Anngow Motors was sold in 2007 to Armstrong Mazda, which was, in turn, sold to Dunedin City Motors in 2009.

### ODT Online Sat, 4 Jul 2015
Long list of car deals
By Chris Morris
Council cars bought and sold within days, and handfuls of cash that disappeared without trace are detailed in Deloitte’s full report into the $1.5 million Citifleet fraud. The report outlines a long list of transactions between former Citifleet team leader Brent Bachop, private buyers and Dunedin car dealers dating back more than a decade.
Read more

****

“Mr Bachop or Mr McFadyen kept a significant proportion of the sale proceeds for these vehicles,” the [Deloitte] report said.

### ODT Online Sat, 4 Jul 2015
Nothing to hide, says car buyer
By Chris Morris
Wayne “Tubby” McFadyen says he has nothing to hide. Instead, the man identified as one of the main buyers of Citifleet vehicles says the Dunedin City Council should be looking “in the mirror” if it wants to point the finger. “If there’s anyone to blame, it all falls on their heads too. They can blame everyone else for buying vehicles and whatever they want to do, but at the end of the day the buck stops with them.”
Read more

█ For more, enter the terms *citifleet*, *conduct* and *vandervis* in the search box at right.

Posted by Elizabeth Kerr

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Cr Vandervis (LGOIMA) on $2 million “interest underspend”

RAINS ON CR RICHARD THOMSON’S PARADE . . . .
—HIS “TIMELY” INTERNATIONAL CRICKET LIGHTS MOTION

Received from Lee Vandervis
‎Sun‎, ‎31‎ ‎May‎ ‎2015 ‎at 9‎:‎56‎ ‎p.m.

From: Lee Vandervis
Date: Sun, 24 May 2015 08:44:52 +1200
To: Sue Bidrose [CEO, DCC], Grant McKenzie [GCFO, DCC]
Conversation: Timing of announcement of budgeted $2m not spent – LGOIMA info request
Subject: Timing of announcement of budgeted $2m not spent – LGOIMA info request

Dear Sue and Grant,

The timing of our CFO’s announcement of the budgeted $2m not spent half way through our last week’s LTP discussions was independently questioned by myself, Cr. Calvert, and DCC watchdog Calvin Oaten.
This overbudget was characterised by Cr. Thomson as an “underspend” and by Cr. Bezett as “a fortuitous fund to dip into”, and was promptly dipped into to fund Cr. Thomson’s moved $1million for International Cricket lights.

I asked CFO McKenzie in the following break why he had chosen that time immediately prior to Cr. Thomson’s International Cricket light’s motion to make the $2 million announcement and he replied “Because I was asked to”, which raises the further questions:

1 – Who it was that asked our CFO to make that $2 million announcement?
2 – When did that person ask our CFO to make that $2 million announcement?
3 – Whose decision was it to make the announcement at that particular time during our funding decision discussions?

Kind regards,
Cr. Vandervis

——————————

From: Cindy Ashley [DCC]
Date: Thu, 28 May 2015 04:13:12 +0000
To: Lee Vandervis
Cc: Grace Ockwell [DCC]
Subject: Timing of Announcement at LTP of $2 million Unspent

Dear Councillor Vandervis,

I refer to your email of 24 May 2015 sent to both the CEO, Dr Bidrose and Group Chief Financial Officer, Grant McKenzie.

Your request has been considered under the provisions of the Local Government Official Information and Meetings Act 1987 (LGOIMA) and the following response is provided.

I have repeated and numbered your questions to give context to our response.

1 – Who it was that asked our CFO to make that $2 million announcement?

Finance staff were asked by the Chair of the Finance Committee to get an update on the current year’s underspend. Earlier estimates of the level of interest underspend had been supplied to all Councillors on a number of occasions previously. Most recently prior to the Long Term Plan (LTP) this information was provided through the monthly finance reports that went to the Finance Committee on the 4th of May (page 4.6) where the underspend on interest expense for the nine month period to March was $1.606 million. In addition, the underspend was also referred to in two reports that were provided to Council as part of the LTP process, specifically in report 9 – paragraph 12, and in report 22- paragraph 10.

An update was requested at the LTP process as another month had passed since the March update figures had been prepared, and the Chair of Finance wanted to know if the April result could be made available.

2 – When did that person ask our CFO to make that $2 million announcement?

Because the Chair of Finance had asked if the updated result was available and it was, the Mayor asked the update be provided as part of the deliberations for that day so that all the Councillors had the updated information. Mr McKenzie then wrote an additional memorandum explaining the underspend in the current financial year, following a request from Councillor Calvert to Dr Bidrose for this information.

3 – Whose decision was it to make the announcement at that particular time during our funding decision discussions?

As Chair of the meeting, the Mayor asked that the information be provided, as it was available, in order to ensure that all Councillors had access to the latest updated figures of interest underspend, as had been provided in the earlier reports referred to in our response to question 2.

If you have any questions or require further information please contact Mr McKenzie.

Yours sincerely,

Grace Ockwell
Governance Support Officer
Dunedin City Council

Posted by Elizabeth Kerr

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