Christchurch City Council : Highly Dubious Entity #YaldhurstSubdivision

Subject: Ongoing Property Dispute at Yaldhurst Subdivision

Christchurch City Council held a full council meeting on 27 July 2017.

Readers, the CCC meeting video of Agenda item 26, about Yaldhurst Subdivision, is recommended viewing/listening.

Legal advice to Council is given by Rob Goldsbury, CCC Head of Legal Services – an atrociously lacklustre, unjust and obstructive performance.

The Council stupidly steps itself into (again!) the Constructive Fraud Action being progressed at the Christchurch High Court by Residents/Caveators of the Yaldhurst Subdivision. Although, we see that Councillors supposedly have no idea they’re already in it up to their eyeballs through the actions of Council staff and issues of non-compliance. Interesting.

Christchurch City Council Published on Jul 26, 2017
Christchurch City Council VIDEO
27.07.17 – Item 26 – Yaldhurst Village Subdivision – Dedication of Road – Sir John McKenzie Avenue

The video continues at about 1:26 after a preliminary silence [muted blue screen] – keep watching. The quality of picture is poor throughout. The discomfort of those seen in the public gallery is most perceptible.

Meeting Agenda and Unconfirmed Minutes follow here below – minus Attachment A, Yaldhurst Village Lots 601,613 Plan.

The Council did not vote unanimously.

The Halswell-Hornby-Riccarton Community Board motion was lost.

With the second motion, in short, the Council resolved that Lots 601 (residential) and 613 (commercial) on LT 448725 will be dedicated under Section 349 of the Local Government Act 1974 as a road, in order for the road to vest.

The resolution goes against the Residents’ private property rights.

See the previous post to refresh on the Residents’ situation.

Note, by the votes for, the dishonesty and incompetence present.

Note, by the votes against, the integrity of those supporting the Community Board and members of their community: the private property owners (the Residents), in their protracted, brave and courageous fight against an unjust malevolent council staff working in cahoots with unscrupulous developers.

Vicki Buck is a class act.
Rob Goldsbury, an utterly shameful man.

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Christchurch City Council
Agenda

Notice of Meeting:
An ordinary meeting of the Christchurch City Council will be held on:

Date: Thursday 27 July 2017
Time: 10.05am
Venue: Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

….

[agenda item]
Halswell-Hornby-Riccarton Community Board

26. Yaldhurst Village Subdivision – Dedication of Road – Sir John McKenzie Avenue ………. [page] 529

[the report]
Council
27 July 2017

Report from Halswell-Hornby-Riccarton Community Board  – 13 June 2017
 
26. Yaldhurst Village Subdivision – Dedication of Road – Sir John McKenzie Avenue
Reference: 17/733313
Contact: Richard Holland richard.holland@ccc.govt.nz 941 8690
 
Note that this report was left to lie on the table at the Council meeting on 6 July 2017.
 
1. Staff Recommendations
 
That the Halswell-Hornby-Riccarton Community Board recommend to the Council:

1. That Lots 601 (residential) and 613 (commercial) on LT 448725 will be dedicated under Section 349 of the Local Government Act 1974 as a road, in order for the road to vest.

2. Note that a Deed of Indemnity will be executed by Infinity Yaldhurst Limited which will indemnify and keep indemnified the Council from all actions, proceedings and claims made by any land owner in relation to the Council accepting the dedication of Lots 601 and 613 on LT 448725, as road.

3. Also note that the Council shall not be required to issue a Section 224(c) Certificate under the Resource Management Act 1991 in respect to Lots 601 and 613 on LT 448725 until all the safety audit requirements as specified by the Council, and included in the Variations of the subdivision consent, have been physically built to the Council’s satisfaction.

4. That the General Manager City Services be delegated authority to negotiate and enter into on behalf of the Council, such documentation required to implement the dedication.
 
2. Halswell-Hornby-Riccarton Community Board Recommendation to Council
 
Part A

That the Halswell-Hornby-Riccarton Community Board recommend to the Council:

1. Option 2 of the staff report, namely, That the Council not agree to a dedication process and inform Infinity Yaldhurst Limited to pursue the matter through the Courts in accordance with the Property Law Act.
 
2. That the Council agree to meet with the adjoining property owners to discuss options on a way forward regarding the Yaldhurst Village Subdivision.
 
Vicki Buck and Anne Galloway requested that their votes against the above decision, be recorded.
 
Attachments
There are no attachments for this report.

Delta | Infinity | CCC staff collude to defeat Yaldhurst residents (again)

Yaldhurst Subdivision (former Noble Subdivision)

S T A T E ● O F ● P L A Y

Christchurch City Council is failing to ensure compliance with the subdivision consent and is then assisting the developer Noble/Delta – Infinity/Delta, to screw the Yaldhurst residents.

[click to enlarge]

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About five of the affected Yaldhurst residents gave deputations to the full meeting of the Christchurch City Council on Thursday, 6 July 2017.

Prior to the meeting, the Infinity Joint Venture of which Delta is a majority partner (with its $13m gift investment from Dunedin City Council) had convinced CCC staff to sway Christchurch City councillors to vote for the dedication of private roads as opposed to vesting ownership in the Council. This in the attempt to first defeat land covenants the affected residents have over the property registered in 2003 to protect their inclusion in any subdivision. However, Land Information New Zealand (LINZ) cannot accept roads vesting in ownership with the Council when there are any encumbrances on the land – such as the residents’ covenants.

For the residents, Colin Stokes, at the council meeting, distributed to councillors a review of what CCC staff have done over the years.

Of course, as the facts flow they continue to entwine around Delta.

The residents are fighting to protect and enforce their rights in the subdivision consent; and to halt Delta and their Southern associates’ onslaught against them.

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Received from Colin Stokes (Yaldhurst resident and caveator)
Wed, 12 Jul 2017 at 9:16 a.m.

Thanks for your ongoing support Elizabeth

Chris Hutching’s piece (The Press 10.7.17) is weak and void of facts that present our case.

● We have Land Covenants registered over all the land in 2003 to protect our inclusion in any subdivision – our specific Access Lot road has to be formed and vested to Christchurch City Council standards with CCC as a term of extinguishment of the covenants.
● The encumbrance on the land prevent vesting of roads as LINZ won’t allow roads to vest with the council with them on.
● Infinity/Delta behind closed doors with CCC staff came up with a scheme to dedicate the roads under old rules (not compliant with the RMA and the subdivision consent) so as to circumvent our covenant protection.
● The real story is that CCC is breaking rules and NOT requiring compliance with the subdivision consent so as to cheat the residents of their protection and their interests protected by that protection so as CCC and the developer can cut them out of the subdivision.
● CCC and the developer Noble/Delta – Infinity/Delta have taken conditions out of the consent, varied the consent, and permitted non-complying undersized infrastructure that makes our part of the subdivision impossible – specifically stormwater pipes and basins required on the lower lying developers’ land which is where the consent (and physical topography and site layout) requires our stormwater to go.
● CCC failing to enforce the conditions of the consent as the law requires means our Access Lot road cannot be formed, meaning we can not subdivide.
● Delta with the misuse of mortgagee powers passed the property to itself, or at least part of the property ($13.4m of an $18.35m “sale” = 73% of which $12.5m was left in the property in passing it to Infinity in the orchestrated “sale”).

[ends]

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Prepared Summary and Review with subdivision plans as tabled at Christchurch City Council’s meeting (6 July), to assist understanding:

███ D 2017 07 04 Summary and Review of Circumvention of Covenants for Councillors Yaldhurst (16 pages)

1 Plan RMA92009135

2 Plan RMA92009135 hlite

The coloured plan shows the residents’ Access Lot between green lines going from Yaldhurst Rd and then dog-legging east to west. What is inside the yellow border is what is within the Subdivision Consent (note there is an internal yellow small 2 sites that are NOT in the consent – and 3 other of the residents’ lots in common ownership on the NS leg are not included in the consent).

It is this east west leg of the Access Lot that requires widened roading to enable the Lots each side to be subdivided pursuant to:-
– 2002 Agreements for sale and purchase (and 2008 further agreement)
– 2003 Registered Land Covenant Protection [see Summary and Review, page 1 para 2 for terms of extinguishment]
– 2009 Subdivision Consent (Condition 5 and stormwater Conditions for it 9.) [see Summary and Review, page 5 para 12]

The problem is
– the Security Sharing Joint Venture (Noble/Delta/Gold Band) SSJV designed and constructed their part of the subdivision such that it made the East West Access Lot owners (residents) parts of the subdivision impossible AND that the Council permitted this.

– Undersized stormwater infrastructure was corruptly installed without consent to NOT include the residents’ subdivisions (all the while falsely assuring residents it did).

– The stormwater is required to be on land the residents transferred to the developer in return for this stormwater and other provisions. It is required to be there for numerous reasons including physical and legal reasons;
* Residents transferred the land in return for this provision
* 2003 Land Covenants protect this land for that provision (required for the Access Lot Road to be formed and vested)
* 2009 The Subdivision Consent requires it to be on the developers’ land (Condition 9.5 which “disappeared”) [see Summary and Review, page 5 para 12 and page 10 email 16 Feb 2010]
* Residents that are part of that subdivision consent have the legal rights to the stormwater (s134 RMA) – the Council is refusing to enforce the conditions of the consent; and permitted the developer to NOT comply with the conditions.
* Land topography and layout physically requires it to go there. The land slopes High NWest to SEast Low

– Delta went ahead and constructed the infrastructure without legal consent – [see Summary and Review, page 10 email 22 Aug 2012]
* This is akin to a builder building a house without consent.
* Council failed to issue an abatement notice for works being complete without consent, and to non-complying standards.

For all the Council staff failings, and the consent holders and JV partners’ failings and corruption of making the residents parts of the subdivision impossible:-
– Delta/Infinity and Council staff are recommending to the Elected Council to vote to circumvent the residents’ Land Covenants so:-
* the residents roading and subdivisions will no longer be protected and will be impossible;
* the JV Infinity/Delta will make more profit by not having to comply with the conditions of the consent that requires the residents’ roading and inclusion (as above)
* Council staff “mistakes” and wrongdoing of permitting non-complying works and not enforcing the conditions of the consent (as required by law) will be covered up.

– Delta and DCC was the facilitator of transferring the property from the Delta/Gold Band/Noble Joint Venture to the Delta/Infinity Joint Venture.
– Delta (illegally) owned 67.5% of the 1st mortgage and controlled Gold Band through their Security Sharing JV.
– Delta’s assurances it had nothing to do with the mortgagee sale is a lie.
– Delta refused to allow Gold Band to accept offers to redeem the 1st mortgage (illegal under s102 & s103 Property Law Act).
– DCC refused to allow redemption of the 1st mortgage.
– DCC (and Delta) refused to accept assignment of the 1st mortgage when Colin Stokes and another (as parties with interests in the land entitled to redeem) offered it to them
* had they done, Delta could have registered about an additional $16m in agreements to mortgage they were sitting on
* all that was required in return was “our little road” which is a LEGAL REQUIREMENT of the subdivision consent in any event.

[ends]

As reported by The Press, the eight-year dispute involving the stalled Yaldhurst subdivision has now gone to mediation between the property owners and the developers.
The dispute has been aired in several High Court cases between the private landowners and the developers, which are continuing.

Related Post and Comments:
11.7.17 Delta has deep fingers into 8-year subdivision dispute at Yaldhurst

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta has deep fingers into 8-year subdivision dispute at Yaldhurst

Blind Justice (detail) by Beeler – Columbus Dispatch 2016 [caglecartoons.com]

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### Stuff.co.nz Last updated 17:37, July 10 2017
Delta and Infinity’s Yaldhurst subdivision dispute at mediation
By Chris Hutching – The Press
An eight-year dispute involving developers and a group of property owners in a stalled Christchurch subdivision has gone to mediation. Late last year Dunedin City Council agreed to authorise its Delta Utilities company to refinance a $13.4 million outstanding debt to go ahead and complete the Yaldhurst development along with Wanaka-based developer, Infinity. To allow the development to proceed, Christchurch City Council staff recently recommended the unusual step of “dedicating” the access road rather than “vest” it with the council. But a representative of the private property owners, Colin Stokes, told city councillors that his group’s rights to compensation for land for the road had not been addressed. […] The dispute has been aired in several High Court cases between the private landowners and the developers, which are continuing. Most people who originally signed up to buy properties at the subdivision have pulled out and meanwhile Christchurch’s residential property market has cooled significantly.
Read more

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Related Posts and Comments:
15.6.17 Site Notice : post(s) removal [we heard from Steve Thompson’s solicitors]
4.3.17 Christchurch housing : ‘If you build the right thing, buyers will still come’
17.2.17 Gurglars visits the Delta/Noble JV subdivision at Yaldhurst
2.2.17 Hilary Calvert complaint to Auditor-General #DCHL
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
12.12.16 Deloitte report released #Delta #Aurora
7.12.16 Audit and Review, Deloitte
26.9.16 Delta #EpicFail —Epic Fraud #14 : The Election and The End Game revisited
22.9.16 DCC : Delta deal 1 Aug 2016 Council meeting (non-public) #LGOIMA
9.9.16 Calvert on DCC, ‘We could have a much more democratic and transparent operation of council’
2.9.16 Delta Yaldhurst : Local Opinion + Update from Caveators via NBR
18.9.16 Delta #EpicFail —Epic Fraud #13 : Councillors! How low can you Zhao ?
26.8.16 Delta #EpicFail —EpicFraud #12 : The Buyer Confirmed
24.8.16 Delta peripheral #EpicFail : Stonewood Homes —Boult under investigation
8.8.16 Delta #EpicFail —Epic Fraud #11 : The Buyer
3.8.16 LGOIMA requests to DCC from Colin Stokes #Delta #Noble #Yaldhurst
1.8.16 Delta #EpicFail —The End Game according to CD
31.7.16 Delta #EpicFail —Epic Fraud #10 : The Beginning of the End : Grady Cameron and his Steam Shovel
29.7.16 Delta #EpicFail —Epic Fraud #9 : The Long & Winding Road…. Leads Back to Delta’s Door
21.7.16 Delta EpicFail #8 : Cr Calvert goes AWOL, 23 Questions for Mr McKenzie —Saddlebags !!
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
17.7.16 Delta #EpicFail —Epic Fraud #7 : The Long & Winding Back Road
15.7.16 Delta #EpicFail —Epic Fraud #6 : What do you mean, Property Law Act ?
12.7.16 Delta #EpicFail —Epic Fraud #5 – Delta and the ghostly hand of Tom Kain
8.7.16 Delta #EpicFail —Epic Fraud #4 : Tales from the Courtroom….
30.6.16 Delta #EpicFail —Epic Fraud #3 : Security Sharing and not Caring….. who’s got that Constricting Feeling ?
27.6.16 Delta #EpicFail —Epic Fraud #2 : WWTKD – What Would Tom Kain Do ?
5.6.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
13.3.16 Delta #EpicFail —Noble Subdivision : [rephrased] Conflict of Interest
11.3.16 Delta peripheral #EpicFail : Stonewood Homes and ancient Delta history
6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
21.1.16 Delta #EpicFail —Yaldhurst Subdivision

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

SCANDAL : Aurora Energy Ltd set to burden Otago ratepayers and residents with massive rates increases

At Facebook:

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“Overall, the planning period will be characterised by the delivery of the largest work programme in Aurora Energy’s history.” –Steve Thompson

Read: The Otago power network is THAT DEGRADED – caused by various rugby supporting and clip-ticket gentlemen, whose names we all know so well. Described by civil words (not cuss words) that start with F and C.

The “laundry” was well and truly harsh, leaving the network in threadbare tatters…. while private pockets were filled. That’s One Billion Dollars worth of power asset the Otago ratepayers have had to pay for TWICE. Talk about ‘power’ and corruption, Bryce Edwards (?) – Dunedin in the last 30 years was built on it, solidly at source.

The “gents” might like to explain where all the money went, and how the hell they think they can make us pay for their near limitless mismanagement and fully reckless endangerment (to workers, citizens and the regional economy) over three decades …..without shoving them in deep at the NZ Court system —for processing.

█ Today an Aurora/Delta executive had the audacity (after spinning out their LGOIMA response to the 20th working day, following my request made 26 April) to want to charge me for official information at the vindictive “maximum charge” (their words) of $190.00. Shove that, boys. Other council owned companies have provided the information free of charge and very promptly and courteously.

Tuck it back in your pants Aurora/Delta, or be sliced.

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At Facebook:

● Aurora will spend $347 million on asset renewal, including a total of 14,000 poles…..

### ODT Online Wed, 24 May 2017
Aurora plans $720m upgrade of network
By Vaughan Elder
Aurora Energy has unveiled a $720 million plan to upgrade its ageing electricity network over the next decade. The plan is a more than $300 million increase on the 10-year plan the Dunedin City Council owned company released last year. […] In a press release this afternoon, Aurora Energy said the plan would have an extensive impact on the region’s economy through job creation and spill-over benefits to other businesses. […] Other major projects included a new substation at Carisbrook, which would replace the 60-year-old Neville St substation by 2019 and a new Wanaka substation on Riverbank Rd, Wanaka. […] Aurora Energy chairman Steve Thompson said an additional $81 million would be spent on growth and security of supply projects to support the region. […] The remaining expenditure was tagged to maintenance and operating expenditure ($192 million), and capital expenditure primarily related to new consumer connections and safety and reliability ($101 million).
Read more

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The vertiginous mountain of HEALTH AND SAFETY DANGERS due to Aurora mismanagement and neglect of the power asset across Otago.

And the WorkSafe option could be “…..an infringement notice”, possibly not PROSECUTION.

Hmm, have the good old boys been dealing in the way they usually deal ??? Is WorkSafe a soft touch. To date it certainly hasn’t been Acute. Or at all worried about the danger to electrical workers or the general public. What a damnably prolonged and sordid farce this is.

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### ODT Online Wed, 24 May 2017
No decision to prosecute Aurora
By Vaughan Elder
Worksafe is yet to decide whether it will prosecute Aurora Energy over the state of its power poles. WorkSafe has been looking into Aurora and its sister company Delta since October over accusations dangerous power poles across Dunedin, Central Otago and Queenstown Lakes were putting the public at risk. The government entity gave fresh details about its audit of the two companies in response to an Official Information Act request from the Otago Daily Times. WorkSafe high hazards and energy safety general manager Wayne Vernon said it had completed an “initial” audit of a sample of the network’s assets and provided a report to Aurora. […] “WorkSafe has not to date made a decision to prosecute or not to prosecute Aurora over health and safety issues associated with the state of its poles.” Mr Vernon emphasised prosecution was one of many options available to it, which also included issuing instructions to remove or minimise the potential for danger and issuing an infringement notice.
Read more

█ For more, enter the terms *delta*, *aurora*, *epic fraud*, *poles*, *healey* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

As predicted —Aurora Energy delivery stuffed on pole replacement

I T ● W A S ● N E V E R ● G O I N G ● T O ● H A P P E N

Aurora Energy board chair Steve Thompson should shuffle back under his rock.
DCHL chairman Graham Crombie, mowing lawns at Clyde, has nothing to say.
The largest risk to the Otago Community continues to be Aurora itself.

At Facebook:

### ODT Online Mon, 24 Apr 2017
Aurora sets new date to ‘remove risk’
By Vaughan Elder
Aurora Energy has abandoned a target to have all condition-zero poles replaced by the end of this month, saying it was now on track to “remove the risk” of 2910 poles by the end of this year. […] An Aurora spokesman said it had abandoned its original plan to replace all 1181 condition-zero poles, which are the worst-rated poles on its network, by the end of this month.
“Our target is to remove the risk around 2910 priority poles by the end of the year and we are on track to achieve that. That’s the target we are working towards. The April target was an initial working target before detailed programme planning had been completed.” After being given more than two weeks to respond, the spokesman did not say how many new condition-one and zero poles had been discovered during its fast-track programme, saying: “We don’t have these figures to hand today”.
Read more

The article also says: “Aurora had stepped up customer service support and communication so its customers were informed when power needed to be cut.” As far as we know this support and communication has been seriously deficient in many instances.

█ Customers should check the Aurora website on outage days for cancellations.
http://www.auroraenergy.co.nz/outages/

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At Facebook:

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Related Posts and Comments:
21.4.17 Why would DCC shaft its own company instead of investing in its change and development ?!
14.4.17 Dunedin homes face power blackout #Delta #Aurora
11.3.17 How Safe Are We/Our Businesses with the Corporate Disaster that’s Aurora, owned by DCC ? #reliability

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

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Posted by Elizabeth Kerr

This post is offered in the public interest.

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.

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### 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

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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:

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### 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

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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.

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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

How Safe Are We/Our Businesses with the Corporate Disaster that’s Aurora, owned by DCC ? #reliability

Latest Aurora ‘safety’ ads at ODT Online this week [screenshots]

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A N O T H E R ● L E A K —Aurora confirms it has breached standards over the average amount of time power has been cut per customer after its data was leaked to the Otago Daily Times.

### ODT Online Sat, 11 Mar 2017
Aurora fails reliability for third year
By Vaughan Elder
Aurora Energy could be fined or face court action after breaching a limit on power interruptions for the third year running. The Dunedin City Council-owned company said it took the breaches “seriously” and would probably ask the Commerce Commission to relax its reliability standards. If the Commerce Commission agreed, Aurora would be only the second lines company to operate under relaxed standards under a system called a customised price-quality path. The only other company to operate under such a system was Orion, after its infrastructure was damaged in the Christchurch earthquakes. Meeting the standards is important because the Commerce Commission takes into account liability when setting limits on how much lines companies can earn. …[Aurora] would not be drawn over whether a lack of investment had contributed to the breaches. […] A Commerce Commission spokesman said it was not aware of the reported breach as Aurora was not required to provide the information until June. However, if Aurora had breached standards its response could range from warning letters to administrative settlements and court proceedings. It could also penalise Aurora by cutting up to 1% of its revenue.
Read more

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We hear poor Steve Thompson is not coping with all these leaks….

Related Posts and Comments:
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.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Would CCOs lie to the Courts? #dangerous #power

Fascinating!

Tonight Richard posted another note at his Facebook page:

We know Delta feel free to play with the truth – But would they lie to the Courts?
Richard Healey · Saturday, 28 January 2017
It’s obvious that Delta think nothing of spinning the facts for you or me, think back to last December when a high voltage line fell to the ground in Tainui, burning the grass. Delta said, and I quote “it presented no danger to the public”. I guess, because no one was under it at the time it fell, you could argue that the statement is true. To me it’s like claiming that firing a gun down the Prince’s St presented no danger to the public because you didn’t hit anyone. Your call, was that a lie?

Or how about this one, when a cast iron cable termination fractured in several places showering the pavement with molten tar – “Delta marketing and communications manager Gary Johnson said the Havelock St pothead was found to have a “slow leak” of insulating material and was removed.” I suppose we could argue about the definition of slow, I’m sure the bitumen that came out did so very slowly – compared to the speed of light – but to characterise a failure that split a cast iron vessel many millimeters thick as a “slow leak” is disingenuous at best. Would you call that a lie?

In his second interview with TV3 Grady Cameron claimed that he wanted to talk to me about the issues that I’d raised but that I had resigned before he had the opportunity. Technically he is absolutely correct, I had resigned. What he didn’t say was that I was working out a months notice, that I was at my desk, with my cellphone on and my computer in front of me when he had me “quarantined” and removed from the office. Not only that, but he cancelled a meeting that I had been told to attend with both Grady and Matt Ballard (more about him shortly) the next day. Would you call that a lie?

The question that I’ve been considering for the last month or so is – would they lie in court?

Continues….

█ https://www.facebook.com/notes/richard-healey/we-know-delta-feel-free-to-play-with-the-truth-but-would-they-lie-to-the-courts/10156050337409848

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: Failed pothead, slow leak? – photo care of Richard Healey

Richard Healey : How Aurora’s lines killed in-calf dairy cows and some sheep

No, really.

M A N D A T O R Y ● R E A D I N G ● F O R
Y O U R ● P E R S O N A L ● S A F E T Y ● A R O U N D ● L I N E S

The following note at Facebook also includes a LGOIMA request directed to Grady Cameron, CE Aurora/Delta, and his interim reply.

Death on the Taieri
Richard Healey · Friday, 27 January 2017
Why should you care about eight dead cows and a dozen dead sheep? Let me explain… In 2010 eight cows were electrocuted on a farm on Maungatua Rd. You can read the story here. Have a close look at this photo:

The black line about a quarter of the way down from the top is 33,000 Volt powerline. The round object attached to it, just to the right of center, is the top section of an insulator that has failed. Now look carefully at this photo…

█ https://www.facebook.com/notes/richard-healey/death-on-the-taieri/10156045815054848

****

Reiteration of the SAFETY VIDEO showing at Richard’s Facebook note – please share it widely.

Fortis Alberta Published on Jun 17, 2013
Step and Touch potential
Watch what to do and not to do in the event of a power line contact.

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Related Posts and Comments:
24.1.17 Aurora Energy lines, Lindsay Rd, Caversham, Dunedin
21.1.17 Mayor ignores serious plight of DCC’s FAILED Otago power network in favour of urban cycleways and CBD
● 19.1.17 Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]
18.1.17 Basic questions arising for the City, unpublished by the newspaper
18.1.17 Scandal : DCC / Delta obfuscate over destruction of Heritage Rose Collection
17.1.17 Whistleblower continues campaign vs #AuroraEnergy #DeltaUtilityServices
14.1.17 DCC/DCHL responsible for failed rollout of ‘gigatown’ #dangerouspoles
13.1.17 Aurora with yet another headache
12.1.17 No Integrity | Cull’s FULL INSULT to Ratepayers and Residents
12.11.17 How to drop Crombie and the mafia from City boards
9.1.17 Letter of opinion draws wide support, view not shared by deathly DCHL
8.1.17 Otago’s dangerous electricity network —Aurora’s INCONSPICUOUS and INEFFECTIVE public safety messaging
6.6.17 Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

█ For more, enter the terms *aurora*, *delta*, *dchl*, *dangerous*, *poles*, *richard healey*, *gigatown*, *roses*, *grady*, *cameron*, *crombie*, *luggate*, *jacks point*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: odt.co.nz – dead dairy cows by Stephen Jaquiery, Maungatua Rd, 2010

Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]

At Facebook:

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Dunedin City Council-owned company [Aurora Energy Ltd] was showing signs it would return to its old ways as soon as public pressure began to lift.

ODT Online Thu, 19 Jan 2017
Claim Aurora facing $1b bill
By Vaughan Elder
The former director of Aurora Energy’s $30 million accelerated pole replacement programme says it is doomed to fail and believes the company faces a billion-dollar spend to upgrade its network. Jarrod Stewart says he quit the role last month in part because he believed the programme to replace thousands of compromised poles would be mishandled so badly someone would be injured. “I don’t enter jobs with the premise that I am going to fail,” Mr Stewart said. His claims were yesterday disputed by Aurora and Delta chairman Steve Thompson, who said they were “exaggerated” and it was disappointing he had gone public after leaving the company.
Read more

For real change to happen there needed to be a clean-out of management and the appointment of a “fixer” chief executive with an appetite for change and a willingness to make unpopular decisions.

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At Facebook:

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Whistleblower continues campaign vs #AuroraEnergy #DeltaUtilityServices

Last year’s news….

[Story/Newshub]

Back when….
Grady Cameron said on national television … “We Have A Safe Network” …
Did Grady get a tour of dangerous poles three years ago – or not ?
Was he shown just ONE pole at Green Island/Abbotsford.
Who would we rather believe.
Not Grader.

### newshub.co.nz 31/10/2016
Delta CEO fronts up on dangerous, toppling power poles
By Jendy Harper
A fortnight ago, we brought you the story of thousands of dangerous power poles which are putting lives at risk and have already been responsible for a death. The poles are the responsibility of lines company Delta and are dotted around Otago. A whistle-blower walked out on a 30-year career in electricity to speak out because he said management weren’t listening to his safety concerns. Richard Healey estimated there are 3000 power poles which need to be replaced. Today, Delta said they need to make dramatic changes and they will borrow $26 million dto replace 3000 power poles by the end of next year. Why did it take one man’s death and a whistleblower to speak out before the company acted? Delta CEO Grady Cameron finally speaks to Story.
MUST SEE Video [full Story report]

****

At Facebook yesterday:

█ Deloitte’s Aurora report (Dec 2016)

█ For more, enter the terms *aurora*, *delta*, *dchl*, *dangerous*, *poles*, *gigatown*, *grady*, *cameron*, *crombie*, *luggate*, *jacks point*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

DCC/DCHL responsible for failed rollout of ‘gigatown’ #dangerouspoles

14.1.17 ODT: Old poles choking Gigatown
13.1.17 ODT: Connecting to fibre not possible on red tag pole

Related Post:
13.1.17 Aurora with yet another headache

WHO IS DIRECTLY AND FINANCIALLY RESPONSIBLE ?

● Dunedin City Council
● Dunedin City Holdings Ltd
● Aurora Energy Ltd
● Delta Utility Services Ltd

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IN OLDER NEWS

### ODT Online Wed, 26 Mar 2014
Safety liabilities stop with directors
By Simon Hartley
Company directors are set to be held more accountable for employee injury or death under tougher new health and safety regulations, highlighted by Gloria Davis’ recent conviction over the eight deaths attributed to the sinking of the Easy Rider fishing vessel last year. The national Institute of Directors backs the expectations placed on directors, regardless of the company size or number of employees, saying ultimately the “buck stops” with company directors. […] Professional Dunedin director Stuart McLauchlan, national president of the Institute of Directors and former Otago institute branch chairman, says directors must get to grips with the new health and safety requirements and that “reporting” of health and safety issues, and acting on them, was “the key” for directors. Nothing has changed in terms of liability. After people advise administration on health and safety issues they must act; ultimately the buck stops there with directors,” he said when contacted in Kuala Lumpur yesterday. […] Mr McLauchlan said the directors’ institute and the Ministry for Business, Innovation and Employment last year ran roadshows together around the country, specifically outlining directors’ health and safety responsibilities, and have a template on the institute’s website, on health and safety requirements and obligations.
Read more

Related Post:
25.3.14 Delta blues . . . and Easy Rider

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The Deloitte report for Aurora Energy was released publicly on 12 Dec 2016.

Stuart McLauchlan ceased being a director of the council owned companies Aurora Energy and Delta Utility Services on 12 Dec 2016. Commencement date for his directorships of both companies: 1 Jun 2007.

Aurora Energy Ltd – http://www.companies.govt.nz/co/471661
Delta Utility Services Ltd – http://www.companies.govt.nz/co/453486
Dunedin City Holdings Ltd – http://www.companies.govt.nz/co/559098

█ For more, enter the terms *aurora*, *delta*, *dchl*, *dangerous*, *poles*, *gigatown*, *grady*, *cameron*, *crombie*, *luggate*, *jacks point*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Aurora with yet another headache

At Facebook:

****

****

Note this particular meat from Richard Healey’s Facebook post:
[my emphasis]

“If you have a property where the lines were built before 2001, then Aurora owns everything up to the house. The only exceptions are where the lines have been brought up to standard and a letter has been sent to the property owner transferring ownership of the lines or a prior agreement is in place. That has almost never happened in Dunedin. If you think that you have been billed, and shouldn’t have been, write to Aurora. If you don’t get redress file a claim.
If you would like to read the appropriate legislation, look up the electricity act 1992 and search for the definition of “point of supply”.
What does that mean? It means that it’s probable that thousands of Dunedin residents have been charged for maintenance to lines and poles that they do not own.”

█ Electricity Act 1992
Reprint as at 18 October 2016
http://www.legislation.co.nz/act/public/1992/0122/latest/DLM281858.html

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Letter of opinion draws wide support, view not shared by deathly DCHL

ODT 9.1.16 (page 6)

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Otago’s dangerous electricity network —Aurora’s INCONSPICUOUS and INEFFECTIVE public safety messaging

[smartphone screenshot 2017-01-08]

The advertisement (safety message!) appears at ODT Online.
Blink and you miss it!

This is what Aurora Energy puts out for You to access Public Safety information. A yellow box with some branding, lost amongst news stories within a plethora of webpages.

Did anybody read ODT Online this summer ?
Did anyone see the ad ?
Did anyone notice the weblink ?
Did anybody click on the link ?
Did anyone do up their seat belt or wear a life jacket ?
How do you stay SAFE around a dangerous power network ?
What do you look out for ?
What do you avoid ?
In an emergency, what do you do ?
What sort of emergency ?
Clear guidelines ?

Or, read as ‘So what’ from the DCC-owned company.

****

How extensive is Aurora’s public safety messaging across all available media these holidays —and typically, across a year ?

Is Aurora’s public safety messaging evolving to provide clear informational content to keep the public SAFE around the DANGEROUS and DEGRADED electricity network ?

****

The adverteaser, and the related web information (reproduced below) is at the very low end of public safety information required to prevent personal injury or death. There is little informational value beyond the obvious.

Real life scenarios you should guard against, what are they ?

Other lines companies create graphics, audio and short videos that clearly explain what to do and what NOT to do around electrical facilities and in emergency situations involving live electricity.

Not so Aurora.

This YELLOW-BLOCK commercial branding exercise is cheap, casualised, determinedly ineffective and fully irresponsible. Further, it merely links to what has been up at the Aurora website for some time, which is basic and untelling.

Here’s the Aurora Energy link and their bland factless webpage content:

█ http://www.auroraenergy.co.nz/safety/

Aurora Energy puts your safety first. We want all our customers, employees, contractors and the wider community to be safe around electricity. Always keep a safe distance from electrical equipment and take extra care when working around electricity.

You can take some simple steps to make sure that you, and others around you, know how to keep yourself safe when around electricity.
● Treat all electricity as live and never touch electrical equipment
● Report electricity faults to your electricity retailer via their faults number
● Phone 111 immediately if there is an injury or risk of a fire
● Follow safe work practice near electrical equipment
● If you see a tree that is growing near or into a power line, contact Delta to arrange pruning services
● Inform others around you of the dangers of electricity
● Be prepared in the event of a natural disaster or extended power outage.
 
Read our free guide to working safely around Aurora Energy’s electricity network (PDF) before working near our electricity network. We’re here to help and can provide you information and services to help you stay safe.
 
Our Public Safety Management System controls hazards that present significant risk of serious harm or major property damage. The System complies with the requirement of the Electricity (Safety) Regulations 2010. To report a potential hazard, please complete the Report a Hazard form or contact Delta.

****

If Aurora has conducted a full PUBLIC SAFETY CAMPAIGN IN OTAGO
across all available media – including dailies, community newspapers, schools, public libraries, council service centres, magazines, online noticeboards, radio, television, instant text messaging, flyers, billboard posters etc
—we have missed it.

It’s not ‘just’ dangerous poles and lines – it’s the condition of the other dangerous and degraded network assets (including conductors, transformers, cast iron potheads, cables, oil-filled switchgear, airbrakes etc) that the public needs to be concerned about.

Aurora Energy is NOT telling you about these : the condition of other network assets after 20-30 years of Dunedin City Council-owned companies’ inept management and criminal neglect of Otago’s power supply.

What would make the best Public Safety Campaign ?

****

The Aurora report by Deloitte made public on 12 December 2016 says:

Refer page 8 (1.5.9 Summary of Recommendations | Health & Safety), and page 31 (4.6. Health & Safety recommendations) – bolding by whatifdunedin:

The Board and management of Aurora need to adopt a more transparent approach with staff and the public. There needs to be acknowledgement of the state of the network along with detailed plans on how these issues are going to be rectified.

****

ODT 13.12.16
– “The Deloitte report did not include a detailed investigation of health and safety issues, but said risk had been increased by a lack of investment. “It is inevitable that this increases the level of risk inherent in the network that could have implications for staff and/or members of the public,” it said.”
– “Mr Cull also refrained from saying the network was unsafe, instead saying: “I don’t think it is as safe as it should be.”
– “[Richard] Healey said he was satisfied for the most part with the report, but not with the response from Mr Cull, DCHL chairman Graham Crombie and Mr [Steve]Thompson, who he said were all still trying to minimise the extent of the problem.”

ODT 21.12.16
– Grady Cameron: ““The accelerated programme uses additional internal and external resources to get the job done quicker. What won’t change are the safety, risk management and work practice measures we have for the safety of workers, contractors and the public.” The programme would prioritise the removal or repair of condition-zero poles close to schools, camping sites and other “high social” areas.”

ODT 24.12.16 ‘Poles spared as condition reassessed’
– “[Queenstown Lakes Mayor Jim Boult] asked Aurora to stabilise or replace condition-zero poles in the Queenstown, Wanaka and Arrowtown central business areas before Christmas.”

It’s not just about the poles.

—

Related Posts and Comments:
12.12.16 Deloitte report released #Delta #Aurora
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
6.1.17 Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

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

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

Four “condition zero” poles identified in Upper Clutha as needing to be replaced or reinforced before busy holiday period.

Other poles inside camping grounds identified as needing to be checked regularly by Delta staff during same period.

### ODT Online Fri, 6 Jan 2017
Problem power poles getting regular checks
By Tim Miller
Potentially dangerous power poles in Upper Clutha camping grounds are being checked regularly by lines company staff over the holidays. Before Christmas, Aurora Energy identified and checked the condition of poles in what were considered high-traffic holiday areas, such as camping grounds and parks in Upper Clutha. The company consulted the Queenstown Lakes District Council to identify the high traffic areas.
Read more

█ All 1181 condition zero poles in Otago expected to be replaced by April 2017.

****

At Facebook:

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Related Posts and Comments:
1.1.17 A successful Lines company….
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
28.12.16 Just beginning…. inquiries into council company rogues
27.12.16 Michael Lewis : The Undoing Project —Interview… #RNZ
25.12.16 The very idea
22.12.16 What GIVES : Aurora/Delta/DCHL/DCC…Energy Safety…ComCom ??
20.12.16 Aurora/Delta : RNZ’s Kathryn Ryan with Rod Oram
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
16.12.16 Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code…
15.12.16 DCHL/Aurora/Delta unravelling
14.12.16 Bev Butler queries invoices for Delta hospitality at Stadium #LGOIMA
14.12.16 Aurora/Delta : Richard Healey on the [SOON departing] CEO
13.12.16 DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases
12.12.16 Deloitte report released #Delta #Aurora
9.12.16 Deloitte report pending —Public Notice at ODT | Facebook entry
7.12.16 Delta/Aurora : Nobody’s willing to call it after misrepresentations
7.12.16 Audit and Review, Deloitte
3.12.16 Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation…
1.12.16 Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Hilary Calvert on Deloitte report for Aurora/Delta

ODT 30.12.16 (page 12)

Aurora – Safety webpage (detail) 30.12.16

WorkSafe New Zealand
Contact WorkSafe 0800 030 040
█ http://www.worksafe.govt.nz/worksafe

Energy Safety
Part of WorkSafe New Zealand, Energy Safety acts as the regulator for ensuring the safe supply and use of electricity and gas in New Zealand. Energy Safety is responsible for providing an effective investigation, compliance, enforcement, and conformance regime for achieving electrical and gas safety outcomes.
█ http://www.energysafety.govt.nz/

Note: On Monday 4 April 2016, the new Health and Safety at Work Act 2015 (HSWA) came into effect. HSWA repeals the Health and Safety in Employment Act 1992, with immediate effect.

‘Delta’ bovver boys by Douglas Field 29.11.16 (detail)

On 19 October 2016 former Delta manager Richard Healey went public about workplace and public safety concerns at Dunedin and across Otago via TV3’s Story (newshub.co.nz).

From 19 October through November posts and comments at What if? Dunedin, including those by Richard Healey, focused on the dangerous network, and poor governance within the council owned companies Aurora/Delta, within the council’s holding company DCHL, and within the duly elected Dunedin City Council itself [relevant trimesters].

The full extent of the dangerous and deliberately degraded network is attributable to criminal negligence and extreme mismanagement of financial resources (public funds).

The young inexperienced chief executive of the companies Aurora/Delta, Grady Cameron, has personally resisted taking any blame for the dangerous network – note, the findings and advice of the 2010 report by LineTech Consulting, commissioned shortly after Cameron’s appointment, have failed to flow into various Asset Management Plans drafted by Aurora, subsequently.

As a result of Richard Healey’s revelations three investigations were to take place:

1. Deloitte report for DCHL (released 12 Dec 2016)
2. Energy Safety (WorkSafe) investigation (no date given for release)
3. Commerce Commission investigation – industry regulator (no date given)

The courts await.

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I N ● J U S T ● O N E ● M O N T H

Related Posts and Comments:
28.12.16 Just beginning…. inquiries into council company rogues
27.12.16 Michael Lewis : The Undoing Project —Interview… #RNZ
25.12.16 The very idea
22.12.16 What GIVES : Aurora/Delta/DCHL/DCC…Energy Safety…ComCom ??
20.12.16 Aurora/Delta : RNZ’s Kathryn Ryan with Rod Oram
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
16.12.16 Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code…
15.12.16 DCHL/Aurora/Delta unravelling
14.12.16 Bev Butler queries invoices for Delta hospitality at Stadium #LGOIMA
14.12.16 Aurora/Delta : Richard Healey on the [SOON departing] CEO
13.12.16 DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases
12.12.16 Deloitte report released #Delta #Aurora
9.12.16 Deloitte report pending —Public Notice at ODT | Facebook entry
7.12.16 Delta/Aurora : Nobody’s willing to call it after misrepresentations
7.12.16 Audit and Review, Deloitte
3.12.16 Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation…
1.12.16 Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Mobile substation Willis St, Harbourside 12.11.16 [photo: Christchurch Driver]

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code brown and farting in church

Received from Christchurch Driver [CD]
Fri, 16 Dec 2016 at 1:04 a.m.

Your correspondent has been spending some time in airport bookstores recently, and it is hard to escape the plethora of get-a-plan-and-get-your-life-in-order books that seem to breed like unwanted spawn in such places.

While your correspondent has no truck with such boilerplate muck, he will admit to a quiet sense of satisfaction this week of some goals achieved. It is a good thing to have a goal, and a plan to get there. This year, your correspondent was disgusted by the arrogant lawlessness and simply fantastic level of self interest and waste of public funds by DCC and DCHL directors at the Noble subdivision, Yaldhurst. He made it a goal to put his shoulder to directorial posteriors and assist in the push of the dismal Delta directors into the Delta wood chipper (leased of course). Aided by some insider knowledge (what? – reveal my sources – never !) and plenty of tangential side trips, your correspondent is proud to think he has helped (in some small way) What if? and the majestic Richard Healey achieve a clean out at Aurora and Delta.

This week’s dismissal of Parton and McLauchlan is the start, and more will follow.

Mr McLauchlan’s risible statements in the ODT yesterday show your correspondent was 100% correct when he predicted that blame would be sheeted home to That Bad Man, John Walsh.

Mr McLauchlan’s arrogance was in full view with his claims that his decision to step down was unrelated to the billion dollar problem he has co-authored. Mr McLauchlan cannot admit what all of Dunedin knows – he troughed literally while lines exploded, and failed as a director. To do so would jeopardise his other sinecures, and Mr McLauchlan is nothing but self interest. Mr McLauchlan had absolutely nothing to offer the DCC, Delta or DCHL, and we should be at least grateful to Mayor Cull that the scales appear to have finally have fallen from his eyes and he sees Mr McLauchlan for what he is.

Let us not forget the most telling example of Mr McLauchlan’s invertebratedness : In the 2007 directorial decision to waste $8-9M at Luggate Mr McLauchlan’s sole contribution was : “If the other directors agree the I agree”. Not forgetting also that in the case of the Scenic Circle Dunedin City legal dispute with the JV partner, Mr McLauchlan was found by the Court to be an unreliable witness.

Mr McLauchlan is so toxic he doesn’t just need to be signposted, he is a walking talking accounting contamination.

On the subject of contamination, Kyle Cameron – stand up and take a bow, Kyle Cameron! – has made it very sure that Grady Cameron will never lead either of Delta or Aurora, by recommending that they need separate CEOs. As Mr Healey has said, the board will do to Grady what he has done to many others – disestablished their positions, creating new roles, and of course Grady will not quite have the “most appropriate skill sets” for either role. Sorry about that old chap, terribly close call of course, better luck next time– (in another continent please).
Grady, you have just been right-sized.

Another right-sizing would be to appoint Kyle Cameron to the Aurora board, and remove former ORFU/Highlanders director Mr Thompson with links to the $5M ORFU pokies scandal. Mr Thompson is tight with Mr McLauchlan of course, Mr McLauchlan being the Chairman of the Highlanders at the time the South Auckland pokies scandal was in full swing. McLauchlan – scandal – bees – honey.

Not right-sized, of course, is the matter of the Aurora replacement budget. We all know – now – that Aurora were going to spend $443M in deferred maintenance over 10 years (yes, stop dissembling Grady, it’s $443M, not $417M, but what they haven’t set out is where the money is coming from. Lines charges are fixed, and in very, very broad terms if we, the ratepayers, have to spend $443M to basically maintain what we have – then the very big question is – what is the depreciated, deteriorated asset worth …right now?

[An alarming example that comes to mind is the DCC purchase of the Dunedin Railway Station in the early 1990s. A wonderful asset now (pity about the decks) after a number of millions have gone into its restoration and upkeep over a 10-12 year period ….but what did the DCC pay ? ….the answer ? precisely one dollar.]

Now the Aurora 2016 Annual Report says in its headline “Trend Summary” (aka the good news feel-good piece early in the report at page 12) is that the ratepayers have equity of $183M in Aurora, and equity to assets is 42.1%, but unsurprisingly (this is Grady and the gyroscope we are dealing with here) the very bad news – the debt is $253M and is not going away – doesn’t quite make it into the good news piece.

So if we are charitable and assume that only say $250M of the $443M is actually for direct Dunedin infrastructure renewal and the balance being for actual expanded capacity then, then $250M of shareholder equity is needed for the upgrade. But wait Batman ! We only have $185M of equity. Holy exploding potheads Batman !! What do we do ? Batman: Elementary, my dear Doctor Parton —In the immortal words of Christine Fletcher, mayor of Auckland in 1986 when asked the same question by Fletcher Construction (of the cost to finish the Aotea Centre), “That’s what the ratepayers are for.”

Readers, you might well be thinking at this stage, CD has it wrong again – when I put in a new kitchen and bathroom in my villa in Belleknowes, it was worth more, so it didn’t matter that there was more debt ….because the asset was worth more. However, the value of power networks is determined by the Commerce Commission, who regulate what amounts each network can charge ….based on the value of the asset. Your correspondent surmises that the next scandal to unfold at Aurora is that resident Delta toxicologist, Matt Ballard of Capability and Risk, has overseen a massive overstating of the present value of the network. The bottom line is : with $250 – $400M of work needed FOR MAINTENANCE, ie NOT GENERATING EXTRA CAPACITY, it is worth nowhere near $436M right now. What does that mean? It means, readers, that the “jewel in the crown” of the DCHL, our cash cow HAS NO SHAREHOLDER EQUITY and has 100% debt to equity. Hilary Calvert is correct – if this were DC Ross, or any other private company, the receivers would have been called in long ago. However, accountants like the caustic Mr McLauchlan prefer companies with no shareholder equity because the returns on equity are out of this world…. until something happens.

Readers, what dissembling Mayor Cull will never tell you is that just like in Central Otago, as helpfully described by Nick Loughnan in the ODT a few weeks ago, you are about to experience in your future either some eye watering rates increases or, if the Commerce Commission allows, some similar exponential line charge increases. It’s one or the other. There is no other way.

Mayor Cull is aware of the consequences set out above : he said at the outset of Mr Healey’s crusade that he did not want public confidence shaken.

The questions or scenarios above are not pleasant – as the biblical line goes, these are hard questions, who can answer them ? They are the lines industry equivalent of farting in church – rude, inappropriate but better to get it out in the open before there is a big mess (or at least know the mess is coming). Yes, the air will be blue for a while – a long while. Messrs McLauchlan, Parton, Kempton, Frow, Wood, Thompson have done more than farted, they have created a stinking “code brown” mess. They will not be missed.

[ends]

*Note: New Zealand Companies Office records show McLauchlan and Parton ceased being directors of the Aurora/Delta Boards on 12 December 2016.
Aurora Energy | Delta Utility Services

Legal advice to the DCC on new 3-term limits for CCO directorships ‘may have’ forced this change. Debatable.

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: markeweebly.com – farting dog by mark cable, tweaked by whatifdunedin

Delta/Aurora warned, renewed calls for Grady Cameron to resign

The review was evidence Mr Cameron’s actions went beyond “wilful ignorance” and were in the category of “feathering your own nest at the risk of other people’s wellbeing”. –Richard Healey

### ODT Online Wed, 9 Nov 2016
Delta ignored warning
By Vaughan Elder
Delta was warned six years ago about the exact scenario unfolding now involving rotting power poles, but failed to act. The warning, in a review by LineTech Consultants, which was given to the Otago Daily Times by a fresh source, has prompted renewed calls for Delta and Aurora chief executive Grady Cameron to resign over his failure to address the issues it clearly signalled. Senior consultant Alastair Glyn-Jones said in the review unless Delta significantly accelerated pole replacement it would be forced in the “immediate future” to replace “very large numbers of poles” in a short time.
Read more

█ Alastair Glyn-Jones is now the Service Delivery / Maintenance Manager at Transpower New Zealand, responsible for managing service providers for transmission cable assets, and site grounds and buildings in the north of the north island (NNI), including maintenance of station assets from Auckland to Kaitaia.

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Related Posts and Comments:
8.11.16 Delta/Aurora neglect, letters to ODT
6.11.16 Healey responds to DCHL terms of reference for Delta review
4.11.16 Delta #EpicPowerFail 6 – Thick as a Brick
2.11.16 Delta #EpicPowerFail 5 : Grady Cameron on RNZ : How many Asset…
1.11.16 Delta/Aurora/DCHL corporate whitewash #dangerousnetwork
31.10.16 Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends
29.10.16 Mr Crombie, not quite the spent force
28.10.16 Heads of Delta/ Aurora/ DCHL/ DCC out to lunch
27.10.16 Bev Butler says ‘Come in, Grady’ #LGOIMA #Delta
27.10.16 Delta #EpicPowerFail 3 : Rotten Poles and Greedy Algorithms
25.10.16 Delta #EpicPowerFail 2 : Plaudits to Saunders & Elder : Delta…
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL…
21.10.16 Dunedin City Council must hang the companies out to dry
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: newshub.co.nz – grady cameron, tweaked by whatifdunedin

Delta/Aurora neglect, letters to ODT

ODT 5.11.16 (page 30)

ODT 5.11.16 (page 30)

ODT 1.11.16 (page 6)

█ Now we know Mr Stephens, ex DCC CFO of the infamous ‘Jim Harland stadium years’, has moved to Queenstown Lakes like the rest of the Good Old Boys. How interesting. The location hasn’t improved his sense of decorum at all.

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O P I N I O N

2.11.16 ODT: History shows power to the people lost
Delta’s woes will be shared with Central Otago, writes Nick Loughnan. What Central Otago once owned with its electricity assets, and was forced to give up, is still fresh in the minds of many of its residents as the operations of Dunedin City Council-owned Delta come under the spotlight yet again after a very courageous and selfless call on public safety by one of its senior employees. A little history will explain how. Cont/

29.10.16 ODT Editorial: The rot must stop
The Companies Act 1993 imposes a number of obligations on companies and their directors. How a company operates is also determined by its constitution — if it has one. A constitution sets out the rights, powers and duties of the company, the board, each director and each shareholder. A director of a company must not act, or agree to the company acting, in a manner that contravenes the Act or the constitution of the company. The Act says directors are responsible for managing the company’s day-to-day business. Directors must act honestly, in what they believe to be the best interests of the company, and with such care as may reasonably be expected of them in all the circumstances. Directors must not carry on the business in a manner likely to create a substantial risk of serious loss to the company’s creditors — reckless trading. Exactly what this involves will vary from company to company and for Dunedin City Council-controlled Delta, Aurora and Dunedin City Holdings, now is the time to investigate exactly how the duties of a director impact on the current situation in which this city finds itself. Through ongoing investigations by the Otago Daily Times, it has been revealed the state of the Delta and Aurora businesses are not what ratepayers have been led to believe. Cont/

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Healey responds to DCHL terms of reference for Delta review

Received from Richard Healey
Sun, 6 Nov 2016 at 1:40 p.m.

So, two weeks ago the story was that heads would roll “if the accusations prove true”.

Let’s recap. I sent a letter outlining my concern that the state of the Aurora Network constitutes an unacceptable and potentially fatal risk for the workforce at Delta and the community in Dunedin and Central Otago.

No response, my letter of resignation arrives.

I turn up for work the next morning and expect the discussion to start. Two managers are told to remove me from the building and not to let me have contact with other staff. One is told to sit in the car with me and return to Dunedin. I am told that there will be a meeting with the CEO and the GM Strategy and Risk.

Before we make it to Dunedin that meeting is cancelled. I receive an email from the GM Energy and Communication advising me to withdraw my resignation and complaining about the “tone” of my email.

The CEO goes on national television and tells the world that he would have loved to discuss the issues with me, but I resigned before he had a chance.

Heads up Grady, I was at work the next day, my phone was on, I still had a thirty day notice period, the company had me removed before discussion could take place. YOU cancelled the meeting that I was told to expect.

The chairman of the DCHL board is quoted in the press as saying heads will roll (ODT 29.10.16) if the accusations prove true. The terms of reference for the review are in the article below. Here’s the question that’s not asked, the only one which is relevant :

DOES THE STATE OF THE AURORA NETWORK POSE AN UNACCEPTABLE RISK TO THE SAFETY OF THE PEOPLE WHO WORK ON IT AND TO THE WIDER COMMUNITY?

Where’s that question Mr Crombie?!

[ends]

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At Facebook:

****

█ Facebook: Richard Healey

Richard Healey [newshub.co.nz] | ODT 29.10.16 classified p51

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Related Posts and Comments:
4.11.16 Delta #EpicPowerFail 6 – Thick as a Brick
2.11.16 Delta #EpicPowerFail 5 : Grady Cameron on RNZ : How many Asset…
1.11.16 Delta/Aurora/DCHL corporate whitewash #dangerousnetwork
31.10.16 Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends
29.10.16 Mr Crombie, not quite the spent force
28.10.16 Heads of Delta/ Aurora/ DCHL/ DCC out to lunch
27.10.16 Bev Butler says ‘Come in, Grady’ #LGOIMA #Delta
27.10.16 Delta #EpicPowerFail 3 : Rotten Poles and Greedy Algorithms
25.10.16 Delta #EpicPowerFail 2 : Plaudits to Saunders & Elder : Delta…
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL…
21.10.16 Dunedin City Council must hang the companies out to dry
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 6 – Thick as a Brick

Received from Christchurch Driver [CD]
Thu, 3 Nov 2016 at 10:59 p.m.

Thick as a brick
Shallow as a bird bath
Not the sharpest knife in the drawer
A few sandwiches short of a picnic
Bought his doctorate online.

Come in Dr Parton….

Your correspondent was both entertained and aghast this morning when enjoying Choysa and a scone, he read Dr Parton, Aurora chair, dutifully parroting Grady Cameron’s lines in the ODT …. “aged network”, “our approach to its management is conservative”. Dr (Polly) Parton also said “it was “not appropriate” for him to respond to comments made by another chairman”. Your correspondent agrees it is not “appropriate”. It is essential to his credibility to do so, as Polly Parton is right – it is amazing that the chairman of a lines company, far away, has felt the need to make scathing comments about the lackadaisical approach to essential infrastructure he has found in the South, and called Aurora’s response “a lame excuse”. When did you last hear the CEO of a council make scathing comments about another ? —or one mayor disparage another in biting terms. It just isn’t done…. so now the attention of the entire lines industry, and the Commerce Commission is riveted upon Aurora as it has just been confirmed by the chair of Marlborough Lines, with no axe to grind, that Aurora’s mess and subsequent evasions are inexcusable.

Some other gems of the re-cycled obvious from Polly in the ODT were “Age … is one reason why we have marked so many poles for replacement” – how fascinating that the board and Mr Cameron only discovered these 40- to 60-year-old poles were aged and needed replacement around the time Mr Healey left three weeks ago.

Readers, while Aurora and Delta have an arrogant disregard for the interest of the consumers and ratepayers, they are very fearful of the Commerce Commission. And the Commerce Commission is under no illusions about the incompetence of Aurora. Not only did Aurora get warned for network failures this year, and are now ranked in the bottom 3 of the 29 lines companies for reliability, they were also warned about their lack of investment and incompetence in 2014 by the Commission.

On 26 June 2014 the Commission wrote to Aurora issuing them with a warning for non-compliance and raising concerns. They said:

“21. There are a number of concerns that we would particularly like to draw to Aurora’s attention … These concerns are:

21.1 Aurora’s vegetation control has been insufficient to prevent significant tree encroachment on lines, which has likely contributed to the frequency and duration of outages….”
Mr Cameron took great delight in waxing lyrical about the dedicated vegetation management unit Delta set up in 2015-16, and how Delta charged Aurora $4M for clearing 34km of lines. We now know it wasn’t anything to do with Mr Cameron, it was forced upon them by the Commerce Commission because they had neglected it for decades. In true Delta form, the cost of $130,000 per km is probably overstated by a factor of 5-10 dependent on difficulty.

“21.2 Aurora has had an increase in defective equipment incidents”.
Oh yes. Aurora’s own Asset Management Plan (AMP) spells out the failures, and impending ones, as noted in #EpicPowerFail 5. In relation to poles, Aurora reduced the number of poles it was going to replace in 2017-18, in its 2016-2026 plan, due to the mendacity of Matt Ballard, GM Capability & Risk. Reacting to public pressure and casting aside the long term plan due to a “perception problem”, without a funding plan in place is just giving the Commerce Commission all the evidence they need that the board isn’t in control and doesn’t know what it’s doing.

“21.3 There seems to be shortcomings in Aurora’s knowledge of its asset condition”.
….(Translated from bureaucratic-ese, this is : YOU ARE USELESS AND INCOMPETENT, and everything we have heard from Aurora recently confirms that this fault has become exponentially worse.

“21.4 Aurora’s reliance on its 6.6kV network as a back up to its aging 33kV cables in Dunedin could lead to major power outages.”

Ominously for the Directors, the Commission was clear about the consequences of further non-compliance, warning Aurora :

“Notwithstanding its 2013 and 2014 compliance, if Aurora fails to comply with the quality standards again, its 2012 non-compliance will be a relevant factor that may lead us towards a stronger enforcement response. Particularly relevant would be the extent to which concerns raised following Aurora’s 2012 non-compliance contributed to the second non-compliance.”

Here we are, four years later, and 3 of the 4 concerns are front and centre of the latest crisis. A lot of words have been written, meetings held, and plans begun, but the network has continued to decline. Unless the Commerce Commission has another spineless apologist like Rebstock of the Audit Office investigating, then the springs in the boardroom ejector seats are tightening.

Readers, we are all frustrated that Mr Cameron, Mr Ballard, and the directors have not a thread of integrity left among them, preferring eventual forcible removal (health problems anyone ?) to decency. But readers, how delicious will it be when they are kicked out, as that will almost certainly be the end of all of their directorial ambitions. Getting kicked out by the Government is the sort of thing that even the Institute of Directors would frown upon, despite overlooking a lot of other venality. As noted at What if?, the Government cannot afford to have tourists killed or suffering from power outages in their #1 tourist region in Central Otago, so it will not be open for Mr McLauchlan to go crawling to Minister Woodhouse, who doesn’t carry a lot of weight now in any case. McLauchlan’s other great fixer, fellow South Canterbury Finance trougher, Denham Shale, is now dead. Mr McLauchlan feeling the chilled air of exposure perhaps ? Perversely, we can be glad that Messrs Parton, Kempton, Thompson, McLauchlan and Frow are all….“thick as a brick”.

Final thought for the evening. If you were Grady Cameron and the board, and wanted to quickly replace 10,000 poles to “restore public confidence” then does buying steel poles from China that are made from less ductile steel (ie more brittle) sound like a good plan ? (Chinese steel is typically 20-25% ductile, whereas NZ seismic requirements generally require 32-34% ductility. It is near impossible to get Chinese steel at this ductility. A recent example is the problems with steel products imported from China by Steel & Tube). Yes readers, you heard it here first, not only did Mr Cameron fail to tell you where the $30M was coming from (they don’t know yet), he also neglected to mention they are buying steel poles from China. And remember, readers, not only did Mr Cameron describe this as “a good plan” on National Radio, but that he “was excited by it”. Truly…… “thick as a brick”.

[ends]

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Related Posts and Comments:
2.11.16 Delta #EpicPowerFail 5 : Grady Cameron on RNZ : How many Asset Management Plans does it take to get a Real One ?
1.11.16 Delta/Aurora/DCHL corporate whitewash #dangerousnetwork
31.10.16 Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends
29.10.16 Mr Crombie, not quite the spent force
28.10.16 Heads of Delta/ Aurora/ DCHL/ DCC out to lunch
27.10.16 Bev Butler says ‘Come in, Grady’ #LGOIMA #Delta
27.10.16 Delta #EpicPowerFail 3 : Rotten Poles and Greedy Algorithms
25.10.16 Delta #EpicPowerFail 2 : Plaudits to Saunders & Elder : Delta…
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL…
21.10.16 Dunedin City Council must hang the companies out to dry
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: pinimg.com – gary larson the far side, tweaked

Delta #EpicPowerFail 5 : Grady Cameron on RNZ : How many Asset Management Plans does it take to get a Real One ?

Tue, 1 Nov 2016 7:50 a.m.
Morning Report with Guy Espiner Link
Hefty pricetag to replace Dunedin’s rotting power poles
Audio | Download: Ogg MP3 (duration 3′40″)
Dunedin and Central Otago power company Aurora Energy is to replace 3-thousand rotting power poles at a cost of 30-million dollars.

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Received from Christchurch Driver [CD]
Tue, 1 Nov 2016 at 11:35 p.m.

Readers, your correspondent has nothing new to offer tonight —but just many examples of what we already knew : Delta/Aurora chief excutive Grady Cameron treats the facts with almost radioactive distaste, and is completely willing to say and do anything to save his own skin. Now, we have a “polemic” of evidence.
Rob Hamlin is correct – there is a massive coverup underway. Let us consider Mr Cameron’s cancerous comments on RNZ with Guyon Espiner today :

The new Aurora plan with an extra $26M was ‘nothing to do with Richard Healey’ ….The board already had a plan in place because “back in September I went to the board and advised them that I wasn’t happy with the progress of our current plan in terms of how fast we were getting through the replacement programme” …. and “the plan that was announced yesterday was the revised plan”.

Now there are several obvious problems here, and the first is Mr Cameron’s mealy-mouthed dissembling that “back in September” he went to the board. September was only 5 weeks ago, and, just 4-5 weeks or so before that, in April 2016, at a cost of hundreds of thousands of dollars, Mr Cameron released Aurora’s long term Asset Management Plan (AMP), all 185 pages of it for the period 2016-2026. The specific purpose of this doorstop is to schedule “asset replacement”, and the plan of course specifically provides for pole replacement. Mr Cameron is asking us to believe that the very next week after the 10-year AMP was complete, he woke up and thought ‘Good grief ! We have completely messed up the asset management plan we have just had the board sign off, and which we have just spent months on ! We must re-do it immediately and add $20-30M to pole replacement ! That is Job #1 Today…. (after mid morning madeira cake and my daily PR strategy meeting). Readers, there are many at Delta who will confirm that Mr Cameron’s GM of Capability & Risk Matt Ballard, was instructing staff the exact opposite…. “that under no circumstances is the current $2.96M budget for pole replacement to be exceeded, for ANY reason, and GET USED TO IT”.

In the fantastic event that there is any shred of truth to this rubbish from Mr Cameron, he needs to be sacked for incompetence, because he has just shown he is incapable of producing an asset management plan that is credible or even somewhat reliable. It is so bad that Mr Cameron could be accused of numeric dyslexia. How can a board comprised of accountants, to whom forecasts and numbers are religion, put up with this ? Is it because Mr Cameron has promised them Mutually Assured Destruction if he was removed? There is plenty of evidence and emails to show that far from wanting to resolve this, Mr Cameron and his enablers wanted to play the man and sweep this under the rug, an approach that continues to the present day.   

Your correspondent has received information that provides the translation code for Grady Cameron’s weasel worded dissembling “back in September I went to the board … not happy with the progress”. It is this : Mr Cameron advised the board ‘We employed incompetent staff who claimed they could “reinforce” poles for around $1200 each, to give a maximum 10-year extra life, but this $1,200 was a figure pulled from their own fevered imaginations and staff and contractors have told us to take a hike, it will cost around $3,000, which compares VERY unfavourably with the cost of a straightforward new pole with a 50-year life at around $5,000. Being the desperate incompetents we are, we had latched onto this half-baked and untested theory like a barnacle on a boat hull and assumed we could reinforce more than twice as many poles as we needed to replace over 10 years. (7290 reinforcements vs actually replacing just 3381 poles).’ (Readers, see Page 78 of the Aurora AMP). ‘If we do a half-baked reinforcement approach we have another budget problem of $13M, but if we put in all new poles we will have a blowout of around $28M (over and above the apples vs oranges $26M issue I deceived the board about earlier).’

Grady Cameron confidently stated to the nation that the plan unveiled yesterday “was the revised plan” (the board had approved)…. For about three seconds, and then when queried by Guyon Espiner incredulously “so nothing at all to do with Richard Healey ?”, Mr Cameron went into high range reverse and forward mode – at the same time. He responded “NO…. the plan that we’ve we put forward is a more aggressive plan now….” due to “a significant amount of public scrutiny”. Memo to Mr Cameron : The public scrutiny only started because Richard Healey broke ranks and blew the whistle, to the cost of his career.

Your correspondent thinks that Grady Cameron is also fevered and mainlining on dividends. If Mr Cameron was telling the truth, that he had concerns, and a plan that very coincidentally was the same as Richard Healey’s then why did he cancel the meeting with Richard Healey who wanted to discuss his concerns about the state of the network ? He should have been saluting a fellow soldier, not burying him…. Instead of refusing to meet with him, why did Mr Cameron discuss taking legal action against Richard Healey when Mr Healey was still an employee of Delta ? (Yes we know about this Mr Cameron, you have very few allies left within Delta —perhaps you should be looking next to you and channelling Shakespeare ….et tu, Matt Ballard?). Instead of cancelling the meeting, why did he not send an email to say, ‘Dear Richard, I have some fantastic news, all or most of your concerns are solved, we are going to be announcing a huge increase in pole spending of tens of millions of dollars immediately (just as soon as I can arrange the requisite saturation PR coverage that portrays me in the best possible light and take the focus off the Noble debacle). I would be delighted to meet with you for 3.5 minutes at 10.36am after mid-morning espresso and madeira cake to outline this to you. Your humble CEO, Grady.’  

[thinkdelta.co.nz] 

It is often the little things that give the game away…. And try as they might, the PR minders can never control the interview process. Grady Cameron spent several minutes explaining to the country how this was just a misunderstanding and he had – before Richard Healey (!), realised what was wrong, and he and the board had a plan to fix the very things that Mr Healey was complaining about. Guyon Espiner asked near the end, “Do you thank Richard Healey for putting pressure on you for this ?” ie for helping Grady Cameron receive great exposure in the media to explain his hitherto secret new plan to the nation, very similar to Mr Healey’s, that all was well, the network was aged but safe, lots of poles were being replaced. Instead of “Come back Richard, my fellow safety conscious soldier in arms, all is forgiven,” we and the country heard his CEO mask slip and got the real, petulant Grady Cameron who snarled “No I don’t thank Richard Healey” —proving that this was all just a charade, and Mr Cameron and the board were ropeable that they had been exposed as ineffectual and incompetent guardians of the region’s electricity network.     

Continuing down the charade theme, consider this final thought for the evening, readers – Cameron, Crombie, and the board of accountants announced this plan WITHOUT ONE CLUE AS TO HOW IT IS TO BE FUNDED. This is sheer arrogance and disdain for power consumers and ratepayers – what other public expenditure of this level has ever been announced with no discussion about who or how it will be funded. The board of Delta and Aurora have proven yet again, how incompetent and derelict in their public duty they have become.

[ends]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images: radionz.co.nz – Guyon Espiner | odt.co.nz – Grady Cameron

Delta/Aurora/DCHL corporate whitewash #dangerousnetwork

Updated post
Tue, 1 Nov 2016 at 3:30 p.m.

Anyone of sound mind will see that, as widely predicted, a vacuous tissue of lies and fabrication has flooded the media, with a SUDDEN dollop of RATES spend foretold – dished by the Ugly wide boys to the sound of chortles in repair from Our Enchained Melody (his worship).

ODT didn’t believe it either.

But those wheeling creatures.
Douglas Field starts in gently….

Satirical comment on the future of a Dunedin ‘owned’ utility company, and its imminent demise. Oct 31, 2016

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Loss of “public confidence”…. [understatement]

In an interview, Mr Cull said he had no problem with spending an extra $26 million to fix a public perception issue.

### ODT Online Tue, 1 Nov 2016
$30.25m to replace poles
By Vaughan Elder
Aurora Energy has approved a $30.25 million programme to replace close to 3000 power poles but its chief executive is refusing to admit any fault over the way the network has been managed. Aurora Energy and Delta chief executive Grady Cameron […] said the claims that led to the loss of confidence – that lives were at risk from dangerous power poles and the two council-owned companies put profits ahead of health and safety – were wrong. He admitted no fault in his management, saying the network was ageing, but safe.
Read more

“My only wish is that he had taken the opportunity to come and speak to me directly, because I think if he had recognised the conversations that I was having with the board directly, he might have felt slightly different about what our plans were.” –Grady Cameron

Whistleblower Richard Healey was stunned by Mr Cameron’s response and questioned why Aurora would spend tens of millions of dollars to fix an issue which it said did not exist. “It’s utter rubbish,” Mr Healey said. […] He had tried to stay away from “personal” attacks, but was now willing to call on Mr Cameron to “man up” and resign.

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T R U T H F U L ● R E A D I N G

Comments posted at this website the day after Story (TV3 Newshub 19.10.16) broke the news about Delta/Aurora’s dangerous poles:

Richard Healey
October 20, 2016 at 8:46 am
Thanks for the support, it’s been a difficult few years, but the last few weeks have been the worst. Here’s a clip from a post I made on Facebook to give my former colleagues some background. My primary concern in all of this has been to keep everyone safe. No more tragedies like the death of Roger Steel.
++++++++++++++++++++++++++++
I appreciate the support but I really had no option. In the last six years I’ve seen live high voltage lines sit on the ground for two days in the grounds of a major tourist attraction – and another set alive 600mm off the ground inside a property where you can look over the fence and see a yard full of kids toys.
I’ve seen thousands of poles that could kill my work mates, and I’ve seen one of them die on one of those poles.
In the past 15 months I’ve watched as the number of those really dodgy structures has increased by more than 1000. The crunch came for me when I realised that probably 2000 of those poles should have been fitted with “warning, DO NOT CLIMB” tags – but they were missing.
Discovering those missing tags made my gut churn. In December 2010 Roger Steel, one of the world’s good buggers died after climbing a pole that was missing a red tag. Both the District Court and the Coroner cited the missing danger tag as a significant factor in Steelo’s death.
The obvious thing to do first was to put out a safety alert to Delta staff. I was told not to do that, my voice was seen as too negative and, in any case, it was the asset management team’s role to put out the alert. I was asked to get one of the other guys to request that an alert be sent out urgently.
I kept pushing for the alert to go out, at that stage I thought around 1000 poles were affected. Nothing happened. Finally, I got the opportunity to raise the issue in an operations meeting. I was told that the Network Operations Manager would write an alert. Scot Jefferries pointed out that I’d written one already but was ignored. He pointed out a second time that an alert had already been drafted. Eventually I was asked to send through my alert and informed that it would be used as the basis of the final release.
Here’s where it gets really disturbing, This is what I said in my Safety Alert:
“During a recent ICAM it became apparent that a large number of poles (probably less than 1000) have been tested and been found to be “Condition 1” – but no red tag has been applied to them”
This is what the alert that the company issued said:
“It was identified during a recent ICAM that some poles assessed as being defective may not have been Red tagged in accordance with Aurora procedures.”
“Have been found” turned into “may not” – “probably less than 1000” turned into “some poles”. The effect is pretty obvious, the guys were free to believe that a few poles might not have been tagged as opposed to a 1000-odd were definitely not tagged. I was pretty upset.
But it got worse, we sent crews out to apply the missing tags. Asset Management found out that we were doing that and told us to stop. They were creating a software tool to capture the data about what poles we were applying the tags to. We pointed out that we were capturing the poles and the tagging teams were logging all the data on a form which they signed. No problem you might think, the data can be loaded into the new software from the forms when it is eventually developed.
Problem, we were told to stop immediately and that we wouldn’t be paid for the work; when asked to put it in writing, they did!
Then it got worse. While out looking for a site to install some equipment I found a pole that the GIS (the system that holds all the information about the plant that makes up the network) said was Condition 5 (good for many decades) had a red tag on it. The red tag was legitimate, that pole was buggered.
It was then that I figured out that the data that the pole inspectors had gathered was being reassessed, after some software changes, and that the the condition ratings of hundreds of poles had been changed as a result. I wrote some notes. Here’s a sample (condition 0 means so bad you must replace it in 3 months, condition 6 is essentially a brand new pole):
“Pole 12680
This 72% degraded, 44 year old pole was Deuar tested on 19/06/2015, rated as condition 0 and red tagged. It also carries a remaining life assessment of 30 years. One week later it was reassessed and the rating went from 0 to 6. One month after that it was again reassessed and went from condition 6 to condition 1. Finally, on 19/08/2015 the condition assessment went from 1 to condition 6. ”
Those notes were taken to the CEO, he cancelled the meeting. I wrote to him, he has never replied, I quit, we are here today.

Richard Healey
October 20, 2016 at 8:57 am
I forgot to mention it, but on my last day at Delta two more poles fell down, both in Alexandra area. It looks to me like the company has failed to tag around two thousand poor condition poles, but the final number won’t be known until the end of the month. That’s the bad news, the good news is that crews are out there now nailing those tags to poles all over Dunedin and Central Otago.
My advice is this, if you’re dropping your kids off at school and notice the poles outside have suddenly sprouted red “do not climb” tags then ring Delta and ask about the condition of those poles and the risk they may pose to you and your kids. If a red tag suddenly appears on the pole outside your house, do the same thing.
Don’t be put off with a standard “the company takes your wellbeing very seriously” answer. Ask for specific information, when was the problem first identified, how long does Aurora have under the Electricity Safety regulations 2010, regulation 41 to replace the structure, what do I need to do to stay safe, what are the penalties that apply if Aurora fails in its primary duty of care?

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Related Posts and Comments:
31.10.16 Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends
29.10.16 Mr Crombie, not quite the spent force
28.10.16 Heads of Delta/ Aurora/ DCHL/ DCC out to lunch
27.10.16 Bev Butler says ‘Come in, Grady’ #LGOIMA #Delta
27.10.16 Delta #EpicPowerFail 3 : Rotten Poles and Greedy Algorithms
25.10.16 Delta #EpicPowerFail 2 : Plaudits to Saunders & Elder : Delta…
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL…
21.10.16 Dunedin City Council must hang the companies out to dry
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends

Received from Christchurch Driver [CD]
Sun, 30 Oct 2016 at 9:09 p.m.

Readers, your correspondent has decided that the present Delta/Aurora situation has many similarities to a drug deal gone wrong.

Grady Cameron and Matt Ballard have a drug problem, and the drug concerned is dividends. They are being stood over by their directorial pimps, Stuart McLauchlan, Trevor Kempton, Ian Parton, David Frow and ex ORFU beat-up specialist Steve Thompson (who are also heavy users of the dividends concerned), to produce more, more, more, every year. Despite the intimidation from the pimps, and threats of financial violence (if you don’t meet the most important KPI being $9.5M of dividends, no salary increase for you !), they bought themselves some breathing space, for a year or two, but down at the street corner (where the poles are !), Messrs Cameron and Ballard stopped looking after the infrastructure that laid the golden eggs of revenue a long time ago and stiff-armed them instead. The result ? – the “network” concerned voted with their cross-arms and simply “fell away” ….but who are the pimps working for ? Who has the raging dividend habit ? Who is the junkie that like all junkies, will engage in lies, fraud, misrepresentation as grist to its mill to feed its dividend habit ? It is of course the atrophied and hollowed out financial wreck that is the Forsyth Barr Stadium, that has a 40-year $7.2M dividend drug habit that it needs and feeds on for survival. Who allows this habit to continue and feeds off it also ? Mayor Cull, the Pablo Escobar of Portobello Rd.

While on the subject of addictive behaviour, Vaughan Elder and Chris Morris will also soon have a drinking problem, because from Saturday every time they venture into a bar, they will be shouted a drink by all Dunedinites that live or walk by a rotten power pole (all of them). The Otago Daily Times (ODT) had a flood of coverage and it was excellent, including a precise summary of the recent dismal Delta and Aurora history. Book your flights to the national media awards now guys. Hopefully this is the virtuous circle in action – excellent coverage, more ODTs and advertising sold, more resources given to the story, more revelations, more ODTs sold. Your correspondent has been proven to be very wrong in his earlier #EpicPowerFail post. Far from being missing in action, after a late start they are all over the issue, and instead of making us sick they are making us proud. Go ODT !!

Today your correspondent was alarmed at the offhand comment made by Pablo Escobar’s DCHL sideman, Mr Crombie, when he said in response to being grilled by the ODT that “the financial effects of replacing thousands of poles could be managed by changes to the timing of Aurora’s planned capital programme”.

There are two very important questions that arise from this – 1) How much will the replacement of the poles cost, and 2) what items of Aurora’s capital programme can be deferred.

Dealing with 2) first, Mr Crombie must have been mainlining on dividends and as high as a kite when he said this. Either that or there was a forlorn attempt at some more quarter truths and a desperate hope that the long term Aurora Asset Management Plan 2016-2026 (AMP) might disappear from the Internet. Your correspondent, fortified with a LOT of Bells did some heavy lifting through the 185-page document and can report the following pearls from Aurora’s own AMP that show that Mr Crombie, like so many addicts, is delusional :

Firstly, in the space of one year from 2015 to 2016, the state of the network (without the recent revelations) was so knackered that even with the best attempts of Matt Ballard, the Delta ‘General Manager for Risk and Capability’, to minimise capex by various sleights of hand, including the famous algorithms outlined in #EpicPowerFail 3, the amount of capital spending required ballooned – in the space of a year – from $373M to $443M, an increase of $70M. (AMP, 7.1 Financial Forecasts). Incredibly, Mr Cameron and the Board indulged in misrepresentation by reporting to DCHL that the total 10-year capital spending increase was only $417M, not $443M, by the simple and dishonest expedient of comparing
two different 10-year periods. This piece of elementary financial alchemy clearly escaped Mr Crombie and the other DCHL directorial head nodders also.

Councillors, please remember that Mr Crombie is going to lecture you in a month or two that you Must Lend $13.2M as a second mortgage to a shell company, Infinity Yaldhurst, with no visible means of support, because There Is No Alternative. It is clear from the above he either cannot read an elementary spreadsheet, or considers an error of around $26M of ratepayer funds trifling and not worthy of comment or correction. Coincidentally, this is the amount of the Yaldhurst debt. Not coincidentally, Mr Crombie doesn’t think $13M of ratepayer funds written off at Yaldhurst is significant or comment-worthy either. Where do we find these people ? You have been warned, Councillors.

To justify this sudden $70M increase in spending, the asset management plan helpfully provided some explanations of the scope of the work, and why it was urgent, which is going to haunt Mr Crombie, hopefully all the way to resignation. On Page 160, Aurora explained that “half of the increase is associated with deferred zone substation expenditure for which there is no further opportunity for deferral”.

In the next five years (2020-2022), there is $29M allocated for rebuilding worn out substations in Dunedin (Andersons Bay, Neville St, Smith St, Willowbank) that cannot be deferred. The reason that the substations are not being rebuilt before 2020 is because the major 11kV / 3kV lines that serve the substations are in even worse shape than the very aged substations built in the 1950s and early 1960s. The cables are already failing and have to be replaced even before the substations. Page 156 of the AMP helpfully describes the problem, “These cables are very old … These cables are now at the end of their life as the bronze tapes [that act to retain the gas insulation] are corroded and failing.” Regarding the possibility of failure, the AMP is candid “….have had some gas leaks … Gas leaks are difficult to locate and expense to repair … requires the cable to be out of service for several days for repairs to be made”. In relation to another type of cable, PILC cable, the ever helpful AMP notes, “We have had a number of failures of the Kaikorai Valley cables” [due to the oil impregnated cables leaking, then drying out and failing].

If readers are in any doubt as to how much of a knife edge their power network is being run on, Page 62 (Asset Risks 4.5.3) will spill the Bells all over the sofa : “Perhaps the most significant risk of a catastrophic asset failure relates to our remaining 33kV gas filled cables.”

To conclude, readers, Mr Crombie is simply creating yet more mad hatter conditions at Delta/Aurora with the desperate and inaccurate statement, that tens of millions of unplanned expenditure (the actual cost will be the subject of the next post, out of time and tea tonight !) could be accommodated by simple funding re-arrangement. (Deck chairs on the Titanic, anyone ?). There are more distortions at Delta/Aurora than in a fairground hall of mirrors.

[ends]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: pinterest.com – Danny LuVisi | Grand Theft Otto series, Homer