Tag Archives: Dunedin City Treasury Ltd

D’oh [Mayor Cull can’t name all the successful manufacturers at #Dunedin]

Rather, Daaave promotes the SHONKY programmed spend on non-essential CBD tart-ups. Not reprioritising council budgets then, Daaave….. to solve the Superduper-Mystery of council-owned Aurora/Delta LOST OR MISPLACED FUNDS, WHERE DID THEY GO ? WHERE WERE THEY SPENT ? Hundreds of millions of dollars lost from Otago ratepayers and electricity users, Daaave…..
You are going to make them pay again.

ODT 25.2.17 (page 34) tweaked

odt-25-2-17-letter-to-the-editor-crick-p34-tr[click to enlarge]

Otago Manufacturers need a Safe and Secure supply of Electricity.
The Mayor of Dunedin is making sure this won’t happen.

Posted by Elizabeth Kerr

This post is offered in the public interest.

24 Comments

Filed under Aurora Energy, Business, Central Otago, Corruption, Crime, DCC, DCHL, DCTL, Delta, Democracy, Dunedin, Economics, Electricity, Finance, Geography, Health, Hot air, Infrastructure, LTP/AP, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, SFO, Town planning, Travesty, Urban design, What stadium

No news : Appointment of Group CFO

dcc-private-briefing

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Consternation of Various Sorts

We note the Dunedin City Council’s very poor financial position generally, in face of the ‘explosive’ DCC-owned Aurora/Delta collapse of the Otago power network – notable for continuing poor governance and management, with contingent lack of transparency and accountability – affecting ratepayers and residents in three distinct council areas (DCC, CODC, QLDC); the city council’s snail-like attendance to infrastructure maintenance and upgrades including implementation of three waters strategy; the city council’s ongoing out-of-control stadium fiasco; and ALL The Council Debt / debt servicing costs etc etc – for the very low, ever passive and aging ratepayer base.
FANTASTIC TIMES.

How interesting then that DCC has – as yet – failed to appoint a new Group Chief Financial Officer following the resignation of Grant McKenzie last year (see announcement 11 June 2016 via ODT).

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Fri, 12 Aug 2016
ODT: Departure reshuffle
The departure of the Dunedin City Council’s group chief financial officer, Grant McKenzie, has triggered a minor reshuffle within the organisation. The rejig includes a temporary structure while Mr McKenzie’s replacement is recruited, but the council has also taken the opportunity to realign job titles and responsibilities for two of the council’s senior managers. […] Council financial controller Gavin Logie has also been named acting chief financial officer until Mr McKenzie’s replacement is named.

Sat, 11 Jun 2016
ODT: Sir Julian stands down, McKenzie appointed CEO
Sir Julian Smith, chairman and managing director of Allied Press, publisher of the Otago Daily Times, is stepping down from the day-to-day running of the company after nearly 40 years. Sir Julian (72), who will remain as chairman, told staff yesterday he has appointed Dunedin City Council group chief financial officer Grant McKenzie as the new Allied Press chief executive officer.

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Dunedin City Council – Media Release
DCC Appoints Treasury Manager
This item was published on 10 Sep 2014
Richard Davey has been appointed to the new position of Dunedin City Council Treasury Manager. Mr Davey, who is originally from Dunedin, has had more than 21 years of banking experience in New Zealand and Australia. His experience centres on dealing with corporate treasuries and solving their risk management and funding issues. As Treasury Manager, Mr Davey will oversee Dunedin City Treasury Ltd – a DCC-owned company provides funding and financial services to other companies in the Dunedin City Holdings Ltd group. Mr Davey will report to Group Chief Financial Officer Grant McKenzie. Read more

Dunedin City Council – Media Release
Group Chief Financial Officer Appointed
This item was published on 14 Oct 2013
The University of Otago’s Director of Financial Services, Grant McKenzie, has been appointed as the Dunedin City Council’s Group Chief Financial Officer (GCFO). Announcing the appointment of Mr McKenzie to this newly-created role, DCC Chief Executive Paul Orders says, “Grant will bring a wealth of knowledge and experience to the role and will be instrumental in ensuring the effective and efficient management of DCC group finances.” […] The new position of Group Chief Financial Officer replaces the DCC’s Chief Financial Officer (currently a vacant post), with the role expanded to include the provision of financial advice and support to the Board of Dunedin City Holdings Limited (DCHL). The role will also create more cohesive financial management between the DCC and Dunedin City Holdings Limited. Twenty eight applications were received for the position, from New Zealand and overseas.
Read more

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It seems DCC has slumped and trailed until 27 February (20 working days) to respond formally to my request for official information – with no phone call received (see postscript).

Tomorrow Monday is D-Day. No notice of extension has been received.

HOW HARD IS IT REALLY TO ANSWER BASIC QUESTIONS—
20 working days ? Get real DCC.

OFFICIAL INFORMATION REQUEST

From: [DCC Governance Support]
Sent: Friday, 3 February 2017 11:31 a.m.
To: Elizabeth Kerr
Subject: Acknowledgement of LGOIMA request

03-Feb-2017

Dear Ms Kerr,

Official information request for: APPOINTMENT OF GROUP CHIEF FINANCIAL OFFICER

Reference Number: 289707

I am writing to acknowledge receipt of your official information request dated 27-January-2017 for information regarding the APPOINTMENT OF GROUP CHIEF FINANCIAL OFFICER as follows:

1. When will the DCC appoint a Group Chief Financial Officer (GCFO) to replace Grant McKenzie ? 2. For what reason(s) has this appointment been delayed ? 3. Have applicants for the position been short-listed ? 4. Is there anything thing else DCC wants to say about the appointment process ?

We received your request on 27-January-2017. We will endeavour to respond to your request as soon as possible and in any event no later than 27-February-2017, being 20 working days after the day your request was received. If we are unable to respond to your request by then, we will notify you of an extension of that timeframe.

Your request is being handled by [Governance Support]. If you have any queries, please feel free to contact [Governance Support] on 03 477 4000. If any additional factors come to light which are relevant to your request, please do not hesitate to contact us so that these can be taken into account.

Yours sincerely

[Governance Support]

P.S. I have also sent your questions to our chief executive Sue Bidrose, as she may wish to provide an answer to you directly by phone or email.

Governance Support Officer
Dunedin City Council

Related Post and Comments:
10.6.16 g’bye & ’ello

Posted by Elizabeth Kerr

This post is offered in the public interest.

13 Comments

Filed under Aurora Energy, Business, Central Otago, DCC, DCHL, DCTL, Delta, Democracy, Dunedin, DVL, DVML, Economics, Electricity, Finance, Geography, Infrastructure, LTP/AP, Media, Name, New Zealand, OAG, Ombudsman, People, Politics, Public interest, Queenstown Lakes, What stadium

Gurglars visits the Delta/Noble JV subdivision at Yaldhurst

Received from Gurglars
14/02/2017 9:07 p.m.

yaldhurst14-2-17-1George Noble Rd, Yaldhurst

yaldhurst14-2-17-2Who wants to live near power lines? They run right through the subdivision.

yaldhurst14-2-17-3No one is working at Yaldy, this glass has been on the road for a long time.

yaldhurst14-2-17-5A digger strategically placed to suggest action – reality, inaction.

yaldhurst14-2-17-4The crowning glory – unbelievable, no ads for Yaldhurst sales but an ad on the property for a subdivision near Pegasus!

whatifdunedin replies:
Nearby subdivisions sold well with power lines and pylons…
Weird mentality at CHC.

That hoarding (not that old… months only) originally featured marketing for the commercial area at the Yaldhurst subdivision. Recently pasted over with Infinity’s other project.

[“Ravenswood, half an hour north of Christchurch, is being offered for sale by developer Infinity Investment Group, which says the project is too big for it.” See last note at (28.3.15) Stuff: Gloomy outlook for solar housing in Christchurch; and (9.8.16) Stuff: Work to begin on Ravenswood development after sale abandoned.]

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Received from Gurglars
2017/02/15 at 6:51 am

News Flash
The word on the street is that a well-heeled solid respectable group offered $12,000,000 actual cash, money, moolah, for Yaldhurst.
The idiotii accepted a notional nonexistent $13million from a $1000 capitalised company who have subsequently made no moves towards repair, consents, or even inspected their new purchase.
If they have inspected it, one would have thought they would clean glass from the road (been there so long it’s almost fused and embedded). Maybe they would have mowed the grass? Or perhaps they would have found the keys to the lone token digger. Having commenced these $5 dollar cleanups they may have been able to put a sign up advertising the properties.
And why is activity important to a Dunedin ratepayer or councillor?
Because honey, we do not get any money until they sell profitable sections.
That’s why the $12,000,000 cash was the only offer that the idiotii should have accepted and folks that’s why you do NOT elect Greens, flakes and dreamers, because it’s your money they have, and will enjoy wasting.

whatifdunedin replies:
Your point is well made, Gurglars. But. It’s much more complicated than that. Seller was the buyer. And we have Graham Crombie (accountant!) as middle man, we wonder who he is really working for, Gordon Stewart? Justin Prain? Murray Frost? Previously/still, Stuart McLauchlan? Who.

Posted by Elizabeth Kerr

This post is offered in the public interest.

5 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, Economics, Finance, Geography, Housing, Infrastructure, Name, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, SFO, Site, Town planning, Transportation, Travesty, Urban design, What stadium

How to drop Crombie and the mafia from City boards

Or read, how the new city council will continue to undermine the Ratepayers and Residents of Dunedin, as well as the power consumers and district councils of Otago, just like before…. by allowing ill-considered (shoulder tap) appointments of a ‘class of morons’ to the boards of the City companies.

Troughers Unite.

ODT 11.1.17 (page 4)

odt-11-1-16-in-brief-p4-1

Posted by Elizabeth Kerr

This post is offered in the public interest.

8 Comments

Filed under Aurora Energy, Carisbrook, Central Otago, Construction, Corruption, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Education, Electricity, Events, Finance, Geography, Health, Highlanders, Housing, Infrastructure, Media, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, SFO, Site, Sport, Stadiums, Tourism, Town planning, Travesty

Stadium : Used car and underwear sales down #missdpopularitycontest

The man running Dunedin’s Forsyth Barr Stadium says the venue is still hunting for sell-out concerts, despite being overlooked by a string of top international acts.

### ODT Online Tue, 27 Dec 2016
Concert quest ongoing despite setbacks
By Chris Morris
After a bumper period last year in which Rod Stewart, Fleetwood Mac and Neil Diamond all performed at the stadium, the venue’s international concerts have dried up, the last being Black Sabbath’s show in April. Hopes more big acts would stop in Dunedin this summer were dashed when performers such as British rockers Coldplay and pop superstar Adele opted for shows in Auckland instead…. Dunedin Venues Management Ltd chief executive Terry Davies [said] this summer’s “dry” period for concerts in Dunedin would continue for the first half of 2017.
Read more

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Listen:
### radionz.co.nz Fri, 12 Dec 2008
Radio NZ National : Nine to Noon with Kathryn Ryan
Carisbrook Stadium in trouble (Link)
09:30 Malcolm Farry, Chairman Carisbrook Stadium Trust; and Jeff Dickie, property investor and outspoken critic of the stadium.
Audio | Download: OggMP3 (13′15″)

The instant the CST and the council started believing in their own hype and spin about Dalai Lama visits, world swimming championships and Royal tours was the moment that this city’s ratepayers were doomed to have to meet all of the “private funding”.
–Russell Garbutt ODT 13.4.12

garrick-tremain-on-the-chin-13-5-12Garrick Tremain – 13 May 2012

At various times, it was imagined that it might host international soccer, rugby league and even swimming; that penguins would frolic in a (converted) adjoining quarry, and not just that the biggest names in rock music would visit, but, perhaps, the Dalai Lama and British royalty.
–Steve Kilgallon Stuff 3.6.12

Then….

### channel39.co.nz Tue, 17 July 2012
Dalai Lama’s proposed visit puts smile on face
The Dalai Lama’s proposed visit to Dunedin has put a wry smile on the face of the man behind Forsyth Barr Stadium.
Video

garrick-tremain-our-room-17-1-14Garrick Tremain – 17 Jan 14

garrick-tremain-punchbag-1-oct-2014Garrick Tremain – 1 Oct 2014

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Full article:

[before we knew the GOBs were completely buggering Dunedin and Central Otago’s electricity network]

### Stuff.co.nz Last updated 05:00 03/06/2012
House of Blame
By Steve Kilgallon – Sunday Star Times
AMBITIOUS: The Forsyth Barr Stadium has left a city divided and its ratepayers facing vast debts.
….In June 2008, two major concert promoters had told the D-Scene newspaper what should have been self-evident: Dunedin was too small, remote and student-oriented to provide the sales base to attract big-name acts. In February this year, council-owned stadium management company Dunedin Venues Management Limited’s (DVML) chief executive David Davies said concert bookings for the stadium would be “thin” in 2012. “What’s thinner than one?” asks Garbutt. Cull says the council has to leverage the advantage of having a roof, guaranteeing events won’t be rained off. Farry, who wanted to run the stadium for its first two years, is disappointed the council hasn’t attracted more concerts.
Read more

*The same article, retitled, appears at Stuff Sport: Stadium builds under fire

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### Stuff.co.nz Last updated 12:38 14/09/2012
Councils should stay away from business
By Chalkie – Tim Hunter
There are people who believe local councils should own businesses because they generate returns and ease the burden on ratepayers. Chalkie is not one of them. Your humble correspondent thinks councils should stick to their knitting. The reasons are many and varied. Taking a couple of examples at random:
a) Councils can start to think they are there to make money instead of, say, distribute water; and
b) Councils are not commercially savvy shareholders.
Poppycock, you say. Show me a single case of a council’s emptyheaded pursuit of unprofitable goals. In response, Chalkie invites you to consider Dunedin. In that southern city the council is the proud owner of Dunedin City Holdings, whose job, according to its report, is “to manage the commercial investments of the Dunedin City Council to maximise returns”. The businesses under DCH’s umbrella include electricity network company Aurora, forestry company City Forests, the Taieri Gorge Railway Company and an engineering business called Delta Utility Services. DCH’s 2012 numbers are not yet available, but last year it trumpeted an improvement in revenue and profit and a total cash return to the council of $23.2 million. If you thought that was a good result, you’d be wrong. When you look at several years of DCH numbers a disturbing pattern emerges of ever-increasing millions being borrowed and pumped into underperforming assets. The cashflow statements tell the story.
Read more

Posted by Elizabeth Kerr

This post is offered in the public interest.

25 Comments

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Delta #EpicFail : L is for (Slow) Luggate Learner and T is for Turnip.

turnip [pinterest.com]Received from Christchurch Driver [CD]
Wed, 4 May 2016 at 12:55 a.m.

Readers, I must admit defeat. I have I think, even if I say so myself, achieved some quite good lines in my quest to succinctly describe the various acts of stupidity committed by Delta at the Noble Subdivision. But recently, an associate (probably keen to cut me down to size !) sent a piece from Fairfax by Tim Hunter, now at the National Business Review, following the Auditor-General’s report in 2014. I saw immediately I had been bested by a better scribe : He memorably described the Delta management as having “commercial acuity about as sharp as a turnip” . That I could reach such cutting brevity !! Mysteriously, no threat of defamation was forthcoming to Mr Hunter….

And as the coast is clear, to honour Mr Hunter, Delta management shall henceforth be referred to as the Delta Turnips….

Your correspondent was intrigued to read of the Lazarus like re-emergence of Luggate Park as a premium lifestyle subdivision destination of choice with prices for sections between $325,000 – $495,000. (Note, no offers are entertained – these are fixed prices say developers Willowridge !) If this goes according to plan, there appears to be a profit even larger than the reported Delta loss of $5.9M* for the enterprising Mr Allan Dippie, the latest owner of the ex Delta land.

Now, your correspondent understands that Mr Dippie may not have as many university degrees as the Delta directors, or possibly not one at all. Mr Dippie does not breathe the same rarefied directorial air as the likes of Mr Stuart McLauchlan, Mr Denham Shale and other ….directors. However Mr Dippie does know his Central Otago subdivision market very well, and further knows that land development sometimes has to be viewed long term, the way a Japanese banker views the deadbeat property loans they made in Tokyo in the 1980s that are still underwater. That is, if you still own the asset you haven’t lost anything, and time will do its work and lift values. The critical thing is to have the courage of your initial convictions, and stay the course. Yes, yes, I know, the Japanese banks are still waiting, but no waiting is required, it seems, in Luggate.

Readers, take a good long draught of Choysa : Delta had TWO choices in 2012 : Sell the land for basically nothing ($1M vs a total Delta investment of around $7M), or…wait until the market improves. Of course, Delta chose to destroy ratepayers’ funds value in a desperate attempt to show ratepayers they had “moved on” and it was all a bad dream –

If Delta had an ounce of the foresight of someone like Mr Dippie, who has been both very successful, and also very patient at times, they would have held the land. A few facts about the land – the 42 entry level sections to be sold in the next stage will be worth around $6M, added to the $9.17M of the 22 premium sections, gives a total of $16.2M. There possibly could be further sections that would increase the value, but the glass is dark on this detail.

After allowing for subdivision infrastructure and selling costs, the land that Delta sold for $1M three years ago would now realise them $9-10M. Yes readers, Delta could have made a genuine, non Aurora subsidised profit and got the civil work they wanted, at good prices. They could have even paid Mr Boult’s bank debt off, paid off the $1.935M bank loan, some interest to DCC treasury and the entire $5.5M advance and still have a bit left over.

What possessed them to act like lemmings jumping off a financial cliff ? Two words … Denham Shale. Mr Shale was the alleged heavy hitter brought in to clean up the Dunedin City Holdings Ltd (DCHL) and Delta mess after the Larsen report in 2011, along with Mr Bill Baylis and others. He knew even less about property development than the likes of Mr Ray Polson. L for Learner developers indeed. As Mr Hunter exclaimed, turnip acuity was all around. Mr Shale was of the school that says when you have a mess, a clean out, not a clean up is needed…. A clean up keeps the items that have a chance of retaining value. Mr Shale told Mr Polson to write down the value of Luggate and get shot of it in April 2012. Mr Polson, being the invertebrate mild mannered accountant he is, then parroted that line to the Delta board a month later. The rest is well known. A bath. This is all in the Auditor-General’s report, in Section 6, for readers that doubt your correspondent.

Mr Denham Shale’s legacy to the City of Dunedin is a $8-9M loss due to turnip advice (aka profoundly stupid advice) to sell land for a fraction of its cost and value. Any developer or person involved in land in Central Otago for any length of time has seen huge fluctuations in value, generally in a 7-year cycle… Your correspondent is one such person, who lays no claim to visions of the future, but who has had to hang tough for extended periods in Central Otago on various deals.

All Delta had to do was talk nicely to DCC Treasury, to explain the $5.5M advance they gave Delta was a couple more years away – they had already waited for five years, who’s counting anyway ? Make an offer to Mr Boult of his 50% share of slightly more than the $1M they received (he had already asked Delta to buy him out having seen the Delta trough was empty), and start paying interest on the $1.935M bank loan. Not difficult. But required some vertebrates.

Mr McLauchlan, Mr Shale, Mr Cameron and the other directors, yes, they all displayed “commercial acuity about as sharp as a turnip”. –How I love that phrase ! This band of Delta Directors could not grasp what to Mr Dippie is as natural as breathing – that they stopped making land a long time ago, around the time of the flood and Noah’s Ark. That people want to live in Central Otago, so therefore the land price will rise, maybe not when you think, but given time rise it will. This, Mr Shale, Mr McLauchlan, and (2014 Young Director of the year) Mr Cameron is called, SUPPLY & DEMAND. Your elementary lack of foresight and myopia has cost the City of Dunedin millions. L is for Learner, T is for Turnip. Which one applies, readers ?

[ends]

Election Year : This post is offered in the public interest. -Eds

Related Post and Comments:
30.4.16 Luggate à la Dunedin’s lad, Dippie

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

*The ‘Auditor-General’s overview’ states (page 5):
“Delta lost about $5.9 million on the Luggate investment and has projected a loss of about $2.8 million for Jacks Point. These losses are before tax, and Delta expects that they might yet be off set by tax credits of about $1.5 million for Luggate and about $0.8 million for Jacks Point. If so, the overall loss would be about $6.4 million.”

█ For more, enter the terms *delta*, *luggate*, *jacks point*, *auditor-general* or *noble* in the search box at right.

Posted by Elizabeth Kerr

Image: pinterest.com – turnip

4 Comments

Filed under Aurora Energy, Business, DCC, DCHL, DCTL, Delta, Democracy, District Plan, Dunedin, Economics, Finance, Geography, Housing, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Politics, Project management, Property, Public interest, Resource management, Site, Town planning, Transportation, Travesty, What stadium

Luggate à la Dunedin’s lad, Dippie

L-plate [roadcodepractice.co.nz] 1

The jovial CD was driving towards Dunedin this morning…. gave me a wake-up call to foreshadow a new post pending for that old spectre : “L” for Luggate, or learner plates for Delta Directors and Mr Cameron.

Yessss. While the Noble subdivision at Yaldhurst heads for the rocks, it appears DCC Ratepayers have been doubly triply shafted at Luggate. Anyway, won’t steal CD’s thunder. He is in the offing!

Sat, 30 Apr 2016
ODT: Former Delta sections in Luggate hot property
Part of the big Luggate Park subdivision that lost Dunedin City Council-owned infrastructure company Delta $5.9million before tax in 2012 is being advertised for sale. The 22 sections in “Luggate Heights”, near Wanaka, range in price from $325,000 to $495,000, providing the owner, Willowridge Developments Ltd, with a potential gross return of $9,170,000. Similarly-sized sections at lower altitudes nearby were selling for as little as $128,000 five or six years ago.

Willowridge, owned by Allan Dippie, bought the 50ha, 160-section Luggate Park development last year from Auckland development company Dentils Ltd, which was unsuccessful in attempts to sell the sections. Dentils had bought the development from Delta and Queenstown property developer Jim Boult.

█ Willowridge Developments Ltd http://www.willowridge.co.nz/
█ LUGGATE PARK http://luggatepark.co.nz/

Luggate Park - Willowridge

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

█ For more, enter the terms *delta*, *luggate*, *jacks point* and *auditor-general* in the search box at right.

Posted by Elizabeth Kerr

*Image: roadcodepractice.co.nz – ‘L-plate’

6 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, Democracy, Design, Economics, Finance, Geography, Housing, Infrastructure, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, Public interest, Resource management, Site, Tourism, Town planning, Transportation, What stadium