DVML issues and rankles [Burden’s reply]

Received.
Tuesday, December 03, 2013 8:59 AM

Cr Lee Vandervis forwards copy of email correspondence, noting: “An unsatisfactory set of responses to my questions of Darren Burden, now departed, follows.”

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—— Forwarded Message
From: Darren Burden [DVML]
Date: Wed, 30 Oct 2013 04:14:39 +0000
To: Lee Vandervis
Cc: Paul Orders [DCC], Sue Bidrose [DCC], Sandy Graham [DCC]
Conversation: DVML urgent issues to be resolved
Subject: FW: DVML urgent issues to be resolved

Lee

Paul forwarded to me your recent comments about Dunedin Venues which I briefly discussed with him. He has asked that I respond to you on the points raised:

A. We have recently installed toilet facilities to Level 2A which in an ideal world would have been installed as part of the original build. However the original build did include the infrastructure for this such as capped services. The work carried out has been consented by the building control department. The cost of the work is within the authority of the DVML board and does not need council approval. In respect of comments from Mr Anderson I have never been introduced to him and was not informed by DVAV that anyone by this name has worked at the stadium for the last 2 years. Refer to point C about DVAV.

B. We have 8 sets of grow lights which cost approximately $35,000 to build. These were manufactured through local suppliers and contractors. These are not used to grow an “ailing” pitch rather to assist worn patches in their re-growth particularly during the winter months. This is not unusual for most stadiums and in fact the size (and cost) of ours are considerably smaller than elsewhere. We estimate the running cost for these in any given year is in the order of $8,000. As a side note, if the pitch had the same amount of use as Carisbrook used to we probably would not need them. However they are of assistance in respect of the significant use the stadium is getting (last financial year we had 60 main bowl events which compares, we believe, with 21 at Eden Park, 14 at Waikato, and 47 at Westpac). Again, our board had authority to approve this cost so did not need council approval. In respect of the electricity cost it should be noted that the stadium has four substations which provides for surety of supply, however this means that our fixed charges are proportionally high to the overall bill. Power usage would be about 50% of our electricity bill.

C. Dunedin Venues has a very good record at paying contractors on time – our monthly financial reports substantiate this. We do, however, have a current dispute with DVAV which is being dealt with through the provisions of the contract by both parties agreeing to go to arbitration. We are not a party to any contractual arrangement between DVAV and Mr Anderson, so any issues that he has would be for him to address directly with DVAV.

Kind regards

DARREN BURDEN
CHIEF EXECUTIVE OFFICER
_____________________________________________

DDI 03 479 4530 M 029 200 1579
E darren.burden@dunedinvenues.co.nz
W http://www.dunedinvenues.co.nz

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From: Paul Orders [DCC]
Sent: Friday, 11 October 2013 3:56 p.m.
To: Darren Burden [DVML]
Subject: FW: DVML urgent issues to be resolved
Importance: High

Darren,

Any chance you could draft a response to Lee on each of the points he’s making here.

It would be probably be helpful if we could talk through the response before it goes to Lee.

Regards,

Paul

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From: Lee Vandervis
Sent: Thursday, 10 October 2013 12:42 p.m.
To: Paul Orders [DCC]
Cc: Sue Bidrose [DCC]; Sandy Graham [DCC]
Subject: DVML urgent issues to be resolved
Importance: High

Hi Paul,

The last month has been chock full of people complaining to me about the on-going goings-on at DVML.
I again strongly urge you disestablish this dysfunctional DVML board of directors and review management options.

A – I have it on first hand authority that enormous sums are currently being spent on new toilet blocks and facilities that perhaps should have been part of the original build.
Much work has been completed on level 2 amongst other construction. None of this work has been authorised by Council as far as I am aware, and I have been taking keen interest.
I am also advised that substandard work guaranteeing long term high maintenance [like the substitution of non-tanalised timber where tanalised was specified that I previously advised you of and showed photographic evidence]. Martin Andersen [see email below] has worked at the Stadium for 2 years and can give details.

B – Specifically not authorised by Council was the funding for expensive grow-lights for the ailing turf, which Councillors rejected over a year ago as NOT TO BE FUNDED, as DVML, Farry and Co had assured us that the turf would grow satisfactorily under the EFTE roof. Extensive banks of grow-lights have been used regularly for many months now despite the Council decision, causing further direct lights cost and injurious augmentation of an already obscene electricity cost [$250,000 per year without grow lights – when the whole city’s electric lighting costs $1.5 million].

C – DVML have been refusing to pay a number of contractors in a timely fashion, specifically DVAV [confirm with contacts below] for extensive AV work since March of this year, and are now being expensively sued for breach of contract.

Council has recently bailed out DVML for its spending of unauthorised millions [I have consistently recorded my vote against] and the obvious reasons for not bailing them keep appearing as above.
This has happened on your watch Paul, and I have been forthright in warning you about it.

I demand that action be immediately taken to investigate all DVML decisions, past and present and that a full report on past failings and options be brought to Council asap. The $20 million annual running cost bleeding of the ratepayer by the Stadium must end now.

Regards,
Cr. Lee Vandervis

—— Forwarded Message
From: Megan Anderson
Date: Wed, 9 Oct 2013 00:01:18 +0000
To: Lee Vandervis
Subject: Non payment

Good Afternoon Lee,

As per our conversation this is to confirm that I worked for DVAV and we are still awaiting payment as DVAV are still awaiting outstanding invoice payments from DVML, for confirmation of this please don’t hesitate to contact Mike Cook on [mobile number deleted. -Eds].

Thanks

Marty and Megan Anderson

Sent from Windows Mail

—— End of Forwarded Message

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Editor’s Note:
Mike Cook is the sole director of DV Audio Visual Limited. DVAV was incorporated on 13 July 2012. In Forsyth Barr Stadium marketing literature, Dunedin Venues say they “work closely with DVAV who are a full service audio visual company delivering audio visual, lighting, event production, conference and technical support services”.

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Related Post and Comments:
30.11.13 DVML in disarray

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Posted by Elizabeth Kerr

Malcolm said the Stadium would be Dunedin’s future, providing lots of jobs

No Dunedin company should dare to think it’s immune from the need to be competitive, even with what’s on offer from ‘outside’, be it for good or bad – cosying is always a risk.

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### ODT Online Tue, 23 Oct 2012
Job fears as stadium contract goes out of town
By Chris Morris
Dunedin businessmen say jobs will be on the line after an audiovisual contract at Forsyth Barr Stadium was awarded to a recently formed, out-of-town company with links to a former Australian bankrupt.
It was confirmed last week DV Audio Visual Ltd had been signed as the preferred provider for audiovisual services inside the stadium. The decision by Dunedin Venues Management Ltd – which runs the stadium and other Dunedin venues – left the owners of Dunedin companies Strawberry Sound and Southern Lights and Services fuming last week. Both told the Otago Daily Times they were concerned the move could be replicated at other DVML-controlled venues, including the town hall, and lead to job losses for their employees.
Read more

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Related Post and Comments:
19.10.12 Weak boys, Cull and Burden on rugby stadium

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Posted by Elizabeth Kerr