Basic questions arising for the City, unpublished by the newspaper

Received from John Evans
Tue, 17 Jan 2017 at 7:47 p.m.

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From: John Evans
Date: Monday, January 16, 2017
Subject: KPI
To: ODT editor

The Editor, ODT

Sir,

We are often regaled by company directors, CEOs and bureaucrats with discourses on the importance of KPIs. KPIs?

Key Performance Indicators – one of many PR corporate speak Buzzwords.

Wikipedia’s definition is pretty broad but basically it means that certain measures designed by the company or board are measured against actual performances.

Recently, the term gained another meaning when KEY performance [was] reassessed in the light of John KEY’s resignation. Unfortunately his stellar career as Prime Minister seemed to be judged poorly by those political pundits doing the assessment.

The key word is Performance, the measure of which is judged in order to provide an increase in salary or measures which might lose the judged their position if they failed to meet the KPIs included as part of the employment contract.

The test is what performance is paramount and who is it paramount to.
These tests are important in worldwide businesses but is there a different reality in New Zealand? It seems to me that either the KPIs are set incorrectly or there is a disconnect because no one seems to fail, to not meet their predetermined KPIs.

[infront.com]

One example is the role of council lawyers. Why would council lawyers write in an employment contract a clause which gave the employee a golden parachute even if they failed to meet their KPIs? Or was it the employees themselves who wrote the KPIs for their own future benefit? Surely if this was so, the lawyers acting for the company or body they represent would refuse to condone the parachute for employees and directors after proven incompetence.

The Dunedin City Council and its management, and the council owned companies, are surely charged with KPIs and, one surmises, about the results of such indicators and the resultant effects on the council and its employees. Can we analyse a few actions of the council and what the KPIs may have been and whether they would meet them and perhaps the consequences of meeting them or not.

The first and most obvious one is the theft of 152+ cars.
What was the measure of acceptable theft? Was it 20 cars, 100 cars or was 150 cars sufficient to tip them over the edge. And as another example, what was the Police’s key indicator on this matter? Do they prosecute for the theft or conversion of 1 car or does it take 160 cars to prosecute somebody for being involved either in the theft or knowing receipt of a car or cars?

The next is the investment in land and development projects by Delta.
Was failure in one, two or three such projects acceptable or is the magic number 5 (Delta will do it again and we have not quite got there yet).

The Dunedin stadium KPIs. Is a running cost of some $20million acceptable as an annual loss to the ratepayers or should the losses be only $15million or shock horror only $5million. Or should the ratepayers be released from the financial burden which was never the choice of the majority?

Sewage Treatment KPI – Is it acceptable to process sewage to a point that it pollutes the ocean two kilometres out or are we entitled to potable water ex site at Tahuna?

Mudtank cleaning KPI – How many mudtanks cleaned would be an acceptable result, would a flood in South Dunedin suggest that measure was incorrect? Contractual performance and payment for same. Would a KPI for the DCC CEO include overall managing payments to contractors? If a contractor did not perform to those KPIs set within the mudtank cleaning contract, should the contractor be still paid?

Wastewater treatment – Is it an acceptable KPI for wastewater treatment that in high rainfall such overflows are discharged into the pristine Otago Harbour?

Delta KPI on pole replacement. Is 100 unreplaced tagged poles acceptable? Is 1000 acceptable? On suspect poles, is a KPI that the company changes so that they did not breach a previous KPI acceptable or should every company and council just change their KPIs to avoid failure, blame or the legal consequences?

Richard Healey, the “whistleblower” on Delta’s failures seems to have personal ‘built-in’ KPIs —including integrity, high quality job performance, peer safety and corporate responsibility. Just why do the CEO and directors’ KPIs apparently differ from these such that Healey has to resign for them to take note?

On Directors of the council owned companies, do their KPIs reflect their responsibility under the law or are they designed to protect the directors from prosecution under the law despite failure by other measures?

And where does the buck stop?

Just what are the KPIs upon which we judge the mayor, based? Is the only measurement his electability?

Are we the ratepayers not entitled to expect a KPI that includes retribution against failings in any DCC departments or DCHL companies? If we do not reward success and prosecute failure in some way are we not missing the whole point of Pavlov and his dogs? Should we not then close our prisons and let the perpetrators of violence, antisocial acts and any injustice roam free, surely this is the logical nett result of such an attitude of no judgement.

The analysis of John Key’s contribution would suggest that electability and performance may well be poles apart. Perhaps that is the greatest lesson we can learn from the errors of judgement of recent times in our city.

John P. Evans
Otakou

[ends]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

ODT circulation mutterings

L A S T ● W E E K ● T H E ● O D T ● P A Y W A L L ● H I T

This week a new reader at What if? Dunedin, Jonathon O’Donohue, mentioned he’d heard that “ODT circulation has dropped 40%”.

With no timeframe to qualify that, we rang around only to be told that “at peak” (whenever that was ?) ODT had had a circulation of 55,000 —now dropped to about 33-34,000.

Welcome to the Internet.

Interestingly, this came to one of my Twitter accounts yesterday from ODT’s Chris Morris. Thanks! Depressing graph [click to enlarge].

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█ Find out more at the New Zealand Audit Bureau of Circulations Inc (ABC):
http://www.abc.org.nz/about.html
http://www.abc.org.nz/ (magazine and newspaper circulations)

█ For more at What if? Dunedin, use the search terms *allied press*, *odt* or *editor* in the search box at right.

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Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

DCC meeting and apology NOT Enough— #SouthDunedinFlood

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

Received today.

From: Hilary Calvert
To: Dave Cull
Cc: Golds [Godfrey Dodd], All Elected Members, Vaughan Elder [ODT]
Subject: Re: Flooding

Thanks for copying us in.

May we know when you requested that the mudtanks were cleaned thoroughly?

I had thought that it was an initiative from Ruth Stokes, as part of the looking into and reporting back on the flood.

I am also interested in your “fact” that the stormwater system is not capable even at optimal condition and performance……. Do you mean that it was not then, or that it would not be even if we made adjustments and sorted out the mudtanks and fixed the screen/pump and made changes which we have signalled to the general stormwater system which flows through South Dunedin?

If council modelling showed the extent of the flooding would be precisely as it was in the event of that magnitude, what relevance had the problems with the screen/pump and the mudtanks? I guess all the problems in South Dunedin during the flood were localised problems and many of them as a result of water lying about, so did our modelling show that as well?

I understood that there was still more work to be done to understand what we could best do particularly about the interconnection between the water from various sources and what we could afford of the options available.

Do you see the governance part of the Council completely blameless in this process?
Since you have apparently arranged for the mudtanks to be cleared, surely you/we could have done something sooner.

Do we have a role at all in your view, apart from advising people they are wrong when it turns out we may have incomplete information?

As seems true for all of the information surrounding this horrible flood, the more information we receive the more questions we have.

Kind regards,

Hilary

_______________________________

On 26/04/2016, at 5:30 AM, Dave Cull wrote:

Dear Mr Dodd,
Thank you for your email. I am puzzled by the apparent assertion that I have blamed the 2015 June flooding on Climate Change. While that may be the root cause I don’t recall saying that. The cause of the flooding, as has finally been comprehensively reported (for a meeting today) was the fact that the stormwater system in South Dunedin is not capable, even at optimum condition and performance, of coping with the amount of rain that fell over that period. That is a simple calculation given the capacity of the system in both volume and pumping terms, and the severity of the event. The mudbank maintenance failure was reprehensible from both a contractor and staff oversight perspective, especially as exactly the same issue had been raised some four years ago and assurances given that it would not happen again. The fact that some mudbanks were not up to scratch may have caused some localised problems and perhaps prolonged the water lying, but they did not cause the extent of the flooding. That was exactly as Council’s modelling showed it would be in an event of that magnitude.
Six years ago Council received reports stating (among other conclusions) two things. First that more frequent and severe rain events were likely. Second that the stormwater system in South Dunedin was not capable of handling those. So flooding was very likely. Last year the Parliamentary Commissioner for the Environment issued a report showing that rising ground water, pushed up by sea level rise will increasingly afflict South Dunedin.
It’s most important to recognise that while stormwater and groundwater can each affect the other, they are different and have different causes.
The failure was operational and managerial as Council was repeatedly assured that maintenance was up to scratch.
Council’s challenge now is to address both stormwater and groundwater issues. We have already, at my request, ensured that the stormwater system is in the best shape possible as winter approaches, by having all the mudbanks cleaned properly. Additionally the screen at the Portobello Rd pumping station, which was blocked by debris carried by the overwhelming amount of water, will be replaced by July.
Council will consider that report which has taken such a frustratingly long time to get to us, and determine the next necessary steps.
At your request I have copied this to all elected members.

Dave Cull

_______________________________

From: Golds [Godfrey Dodd]
Sent: Monday, April 25, 2016 7:07 PM
To: mayor @dcc.govt.nz
Subject: FW: Flooding

Dear Mayor
I am sending you this email in that it may make you understand how one ratepayer views your complete failure in the flooding in South Dunedin
WE all know that climate warming is a fact but your glib PR spin and articles in the paper does nothing for your credibility and your lack apology shows that you and the council do not except responsibility for this lack of governance
It is sad that only one of the council appears to have enough bottle to ask you to do in an old fashion way the decent thing
My wish is that you pass this email as part of an agenda item a the next council meeting on how one ratepayer views your lack of understanding in the way a Mayor should carry out his role
I would interested in your reply

Regards
Godfrey Dodd

_______________________________

From: Golds [Godfrey Dodd]
Sent: Friday, April 22, 2016 10:00 AM
To: Andrew Whiley [DCC]
Subject: Flooding

Hi Andrew
It is with disappointment reading the failure of governance by the council I was a chairman in those days that was the title of a high school board If the school had a problem which effected the community you had to stand up and take the blame
I do not expect the council elected members to clean mud tanks but when there is failure of this size then the expectation of the community that something is seriously wrong with the governance of the council The glib excuses as regards rise in sea level is the catch cry of the council which you as a member are part of
In my view the council members should of put on gumboots and gone out with the CEO and inspected the mud tanks instead of waiting a year for a report It saddens me to find that people in South Dunedin were not accorded this Instead we had articles written that showed how out of touch the council members were These articles were part of the green PR spin which now blights any decision that this particular council makes All that was needed was clean mud tanks and clear governance by the members of the council not excuses I hope that this is a lesson that you as a council member takes on board when making decisions in the future
Kindest Regards

Godfrey Dodd

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ODT 25.4.16 (letter to the editor)

Tue, 26 Apr 2016
ODT: Vandervis forcing mud-tank issue [+ Letters]
A series of emails released by Dunedin city councillor Lee Vandervis show he was raising concerns about the state of Dunedin’s mud-tanks as long ago as 2011. Cr Vandervis said he released the emails because only publicity forced the council to change its ways. “This publicity is going to make sure it really is sorted once and for all this time.” The release of the emails follows a report released by the Dunedin City Council last week into last June’s flood, which found 75% of mud-tanks in South Dunedin were not properly maintained.

Tue, 26 Apr 2016
ODT: Staff apology for mud-tank failure
Council staff were responsible for not properly overseeing mud-tank maintenance in South Dunedin, not councillors or the mayor, a senior staff member says. Council infrastructure and networks general manager Ruth Stokes started today’s council infrastructure services committee meeting by apologising on behalf of council staff for the failings identified in a report on last June’s flood. Dunedin Mayor Dave Cull and Crs David Benson-Pope and Lee Vandervis were among those who had raised mud-tank performance prior to the South Dunedin floods, and been given incorrect information by staff. “For that I would like to, on behalf of the executive, apologise,” Ms Stokes. The failure was a management failure and not governance one, she said.

Douglas Field 26.4.16 (detail)

Comment at ODT Online:

Mayor Dave Cull outraged
Submitted by JimmyJones on Tue, 26/04/2016 – 1:49pm.

Mayor Cull says he is outraged at the failure of Fulton Hogan and council staff to adequately ensure that the mudtanks were in working condition. He should also be outraged at his own poor leadership and failure to respond to developing problems. Under his leadership the city continued to build up a backlog of worn-out stormwater pipes and equipment waiting for funding to be allocated. With this lack of funding we have seen the inevitable result of a deteriorating stormwater system. The poor state of the stormwater system was the primary cause of the severity of the flooding at Kaikorai, Mosgiel and South Dunedin last year.

This under-funding of the stormwater renewals is not an accident. Every year the DCC Mayor and councillors decide and vote on this spending – and every year they vote to under-fund the stormwater renewals because they think that a new stadium and a new swimming pool and more bicycle lanes are more important than a functioning stormwater system. The Annual Plan shows that the under-funding will continue next year. Expect the deterioration to continue.

Related Post and Comments:
20.4.16 DCC Politics : Release of Infrastructure Report #SouthDunedinFlood

█ For more, enter the term *flood* in the search box at right.

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Posted by Elizabeth Kerr

*Email image: carleton.ca – android-email-app

Delta #EpicFail —Noble Subdivision : set to music …

Text and images by Christchurch Driver [CD]
Monday, 25 April 2016 8:19 p.m.

With apologies to Helen Reddy and the composers of Delta Dawn….,

Delta boys what’s that picture you have on ….

Could it be a faded road from days gone by ?….

But did I hear you say, there’s a meeting in here today,

To take your debt to that mansion in the sky….

It’s 41 (months) and Grady still says it’s Ok, gents and ladies….

All the folks in Dunedin say he’s crazy….,

Cause he walks to Harcourts, with a suitcase in his hand,

Looking for a mysterious dark haired man….

In younger days they called it Citiworks, son….

Most profitable contractor you ever laid eyes on….

But a man of Noble degree came to their side,

Broke all promises and took them for a ride….

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█ For more, enter the term *delta* in the search box at right.

Tanya Tucker / Helen Reddy – Delta Dawn (The McClymonts Cover) https://youtu.be/2vkzhj0E-6I
Published on Jul 14, 2014
From the The McClymonts album Here’s To You & I.

Posted by Elizabeth Kerr

DCC Politics : Release of Infrastructure Report #SouthDunedinFlood

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

Photo: Paul Allen

New Report [excerpt]—

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Next meeting of the Infrastructure Services Committee will be held on Tuesday, 26 April 2016 at 1:30 pm or at the conclusion of the Planning and Regulatory Committee meeting (whichever is later) – Edinburgh Room, Municipal Chambers

PUBLIC AGENDA
1 Public Forum (page 4)
2 Apologies (4)
3 Confirmation of Agenda (4)
4 Declaration of Interest (5)
PART A REPORTS (Committee has power to decide these matters)
●● 5 South Dunedin Public Infrastructure Performance during June 2015 Flood Event Follow up (6-27)
6 Recycling Markets and Bin Contamination (28)
7 Northern Wastewater Schemes’ Options (34)
PART B REPORTS (Committee has power to recommend only on these items
8 Resolution to Stop a Portion of Peel Street, Allanton (44)
9 Road Name – Three Hills Subdivision (54)
PART A REPORTS (Committee has power to decide these matters)
10 Notification of Agenda Items for Consideration by the Chair

█ Agenda – ISC – 26/04/2016 (PDF, 6.3 MB)
The agenda and reports are located together in this file.

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Dunedin City Council – Media Release
Report on South Dunedin infrastructure performance during June 2015 flood released

This item was published on 20 Apr 2016

The report on the South Dunedin infrastructure performance during the June 2015 flood event was released today as part of the agenda for the Infrastructure and Services Committee meeting next week.

The report concludes that while a number of factors contributed, the main factor was the highest 24-hour rainfall total in Musselburgh since 1923.

General Manager Infrastructure and Networks Ruth Stokes says the report outlines the known challenges with managing the South Dunedin catchment and highlights concerns about the performance of mudtanks and the Portobello Road pumping station during the event.

“Changes in the South Dunedin catchment since the stormwater network was designed, combined with operational challenges and high ground water levels, all contributed to the effects of the extreme rainfall event that occurred in June 2015.”

Mrs Stokes says the report shows that mudtanks weren’t maintained as required. As a result, a number of steps, including a full review and retendering of road maintenance contracts have been adopted. Other measures include accurately capturing data on the status of the mudtanks, a redesign of the Portobello Pumping station screen and the development of a communications plan to inform the community of the local infrastructure challenges and how to best plan for future events.

“However, given the volume of rainfall and the system at capacity during the June event, the water would have been unable to enter the network even if all mudtanks were clear.”

She says the DCC must now look at what measures can be taken to mitigate such events in future.

The DCC will soon be engaging with the community about these issues and what the long term responses might be.

Contact Ruth Stokes, General Manager Infrastructure and Networks on 477 4000.

DCC Link

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Otago Daily Times Published on Jun 4, 2015
Raw aerial video of Dunedin Flooding
Video courtesy One News.

█ For more, enter the term *flood* in the search box at right.

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Posted by Elizabeth Kerr

Delta #EpicFail : Strategic Reasons & Outrageous Logic

Election Year : The following opinion is offered in the public interest. -Eds

Received from Christchurch Driver [CD]
Tue, 19 Apr 2016 at 10:48 p.m.

Readers, tonight’s exposition is to examine the Dunedin City Council (DCC) worldview that does not contemplate a sale of Delta at less than $45M. Your correspondent says that will never happen on any rational economic basis, so the next best thing is to pretend that it would not be in the ratepayers’ best interests to sell at all, seemingly at any price.

However, annoyingly, logic and reasons must intrude at some point, and in the recent report on DCHL asset values, the DCC have a crack at pushing the Delta water uphill.

█ Agenda – Council – 11/04/2016 (PDF, 1.6 MB)
Item 22 Dunedin City Council Investments and Returns (pp 109 – 123)

Tonight, readers, we shall dwell on and allow the TWO big “strategic reasons”, the DCC propose to retain Delta, to stand in splendid isolation, while readers allow the cool chill of logic to bring these clouds of hot air back to reality.

We shall also overlay some markers over Delta’s financial figures that give support to your correspondent’s contention that Delta is at risk. (careful words needed here, readers !)

Safely camouflaged at para 55 (page 117), deep in the DCC report, the following statements appear : “If Delta were to be sold by the DCC, one likely outcome…. [it could be] purchased by a competing company in the same field. One consideration…. is the potential ‘head office’ job loss to Dunedin if Delta were to be sold to an existing company which is not locally owned.”

Stop right there, readers. The DCC say the first, most important consideration in retaining Delta is to retain the Delta ‘head office jobs’ in Dunedin. At one level we can take this to mean that the DCC are very fearful that the current occupiers of the Delta head office jobs in question would not find similar work in Dunedin. Your correspondent thinks that is a very well-founded fear. But the DCC head of economic development tells us the city is growing and it is hard to attract executive staff to the city…. it is a taxing puzzle why the authors of the report ignore their own staff…. At the next level, your correspondent is vexed at the concern shown by the DCC for the six figure inhabitants of the Delta Head Office suite. (Note, there are 70 people earning in excess of $100,000 at Delta, your correspondent guesses that the Head Office inhabitants occupy the highest echelons of those salaries). This brings a whole new meaning to the (draft) Statement of Intent requirement to be a “socially responsible …. corporate citizen”. At a higher level again, the DCC appear to say that the welfare and future of the head office positions rank ahead of the core task of providing returns to the ratepayers.

Readers, remember that DCC provide these reasons as reasons not to sell Delta even if someone paid the massive premium of 300-400% over the $15.804M shareholders equity (which is about to suffer a severe Noble induced virus).

Your correspondent is very sure these revolutionary themes of Soviet Style central planning and corporate welfarism were not intended in the Delta ‘Statement of Intent’ which is meant regulate how the company is run.

Next up as the DCC apologia for retaining Delta is the statement, “the loss of Delta from the local contracting market, particularly if through acquisition from an existing contractor, would remove an element of competition from an already limited local market”.

This is illogical. Let us count the ways:

1. If competition is “limited” then margins will be high, and demand for skilled staff intense, so any logical purchaser would leave the Delta structure alone to continue its high margin work…. but of course, if there is limited competition and Delta are not making good profits, then there is a problem…. and Delta should be sold to an entity that can generate good profits in a limited market.

2. It can be safely assumed that Delta’s local competitors Fulton Hogan, Downer, SouthRoads, Whitestone, Asplundh, Waste Management, and any of the local power contracting companies are not stupid and they would have no interest in paying the DCC $45-60M for $15.804M of equity (on a good day). If Delta expired, the limited competition just got less, and paydays all round for all left standing. Your correspondent says then that any purchaser is likely to be someone who does not have a presence in the market, and sees potential for profit in this market, allegedly with limited competition. If that were true they would leave Delta as it was, maybe even with some of its precious head office jobs, to continue their (merry and profitable ?) way. (For the time being at least).

3. The bottom line is your correspondent posits that Delta will never be sold in its current form, because its competitors know, even if DCC Treasury does not, that Banks have certain standards for lending money to companies, and an important one is the debt to equity ratio. Delta has $26.9M of debt and $15.804M of equity. That is a debt : equity ratio of 183 % which this correspondent says is far too high for a contracting company. A debt : equity of 100 % or less is usual in this sector. Another is the Liquidity (Quick) Ratio which is Current Assets / Current Liabilities. Contractors should have a minimum of 1.35 and many accountants would say 2. (What would Mr McLauchlan say ….?). Delta has $17.5M of current liabilities and just $220,000 of cash in the bank. This is one seriously undercapitalised contracting company.

Delta will no doubt say their quick ratio is fine because the accounts show $25.244M in receivables, but this includes the very non-current and very illiquid Noble debt of $13.2M. They do have $2.84M of Work In Progress (WIP) which is included under inventories. They then have proper current assets of $0.22M cash, $2.84M WIP, and $12.2M Receivables, ($25.24-13.2M) for a total of $15.08M and a quick ratio of 0.88. The bottom line is : even putting aside the elephantine $26.9M in debt, Delta have serious cash flow issues with a quick ratio of less than 1, and if they have a further problem contract, or even just a delay of a month or two getting paid on a larger contract, they are not just on a cashflow knife edge, but in serious trouble. Delta has basically no cash reserves as at June 2015. Of course, Mr Cameron did not dwell on that factoid in his report….

Readers, the quality of the excuses made in support of retaining Delta are of the same quality as the prediction of its value at $45-60M.

[ends]

█ For more, enter the term *delta* in the search box at right.

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Posted by Elizabeth Kerr

*Image: blog.smashwords.com – AuthorUphillBattle, tweaked by whatifdunedin

Delta #EpicFail Noble Subdivision : Avanti Finance —Feeding at the Delta Trough

Election Year : The following opinion is offered in the public interest. -Eds

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Received from Christchurch Driver [CD]
Monday, 18 April 2016 11:03 p.m.

Readers may remember that in an earlier post, ‘Gold Band Finance – The Little Finance Company that did (Delta)’ March 2016 – your correspondent was lacking information on what transpired between Avanti Finance and Delta.

Your correspondent indulged in some dark speculations about what Delta might or might not have done. But recently your correspondent has received email information shining a light on that transaction, a welcome piece of disinfectant as Justice Brandeis would say. While we no longer see through a glass darkly on this matter, the disinfectant metaphor is apt, as yet again, Delta suffers another grievous and substantial financial wound, this time, a deliberate and self-inflicted one. It seems that in order to save or salvage something from the Noble debacle, it is first necessary to destroy the Delta financial reserves.

The conversation must have gone like this : “Dear Avanti, you have gate-crashed our game of Monopoly and you have further erred in somehow gaining a piece of the Noble subdivision that we simply must have ! Poor form, poor form indeed. Now chaps, we can do this the easy way or the hard way ! There is no way in this whole wide world we are prepared to pay you the 37 % per annum interest rate that your friends at Gold Band are charging on their part of the mortgage…. That was then, and this is now !! Take it or leave it, our offer is…. not a penny more than…. 34.50 % !!”

Yes readers, Delta in March 2015, paid Avanti $2.19M for its interest in the Noble Investments (NIL) first mortgage. Avanti had paid Gold Band $1.5M for the same interest just 16 months before in November 2013. A gain of $690,000, or 34.50 % per year. Let’s see, only 350 times the rate of inflation. Avanti made out like a bandit, but then, they are a finance company…. and Delta are, well, Delta.

Delta CEO Mr Cameron confirmed that Delta spent $3.3M “strengthening its position”. We now know how that went : $1.2M to Gold Band, $2.19M to Avanti, which all pans out, taking into account a rounding error.
What we do not know is the timing of the $3.3M, but that is not a central issue at the minute.

Readers should bear in mind that if the situation is resolved by June 2016, then the first mortgage of $1.75M lent by Gold Band around 2004, could have spawned the amazing sum of $11.8M, and at least $9.1M. Gold Band and Cup Investments (CIL) will have lent out $1.75M and received $3.1M plus $2.7M received from Avanti and Delta. That is a total of $5.8M. Huge. Delta have paid $3.3M for a part security and if they are charging around the same interest as the others, then their figure will be around $5.5-6M. That is, the first mortgage securities of Gold Band and Delta will consume the first $10M of the mortgagee sale. Not looking good for Delta’s core debt of $11.35M of lower ranked securities….

Your correspondent is desperate to see a Councillor ask for confirmation about this and the Gold Band and Avanti ‘premium’ they paid. Perhaps then the Otago Daily Times might sense that Delta paying $1M plus over the face value to Gold Band and Avanti for part of a first mortgage in an attempt to get a better recovery on their lower ranked securities is News, and not in a good way. Heaven knows they could do with some – Building Consent Delays on the front page – Good Lord what next ! more cat pictures ?
The Wash ?

Your correspondent can’t wait to read the emails around that board decision…. when the Auditor-General releases them. Will there be another email from a Delta Director stating in effect “if the subcommittee agrees then I agree with them?” (As there was for the ill-fated decision to proceed with Luggate).

Next we shall look at the “Strategic” reasons the DCC put forward as compelling reasons for retaining Delta in its report…. Irony and comedy abound….

[ends]

█ For more, enter the term *delta* in the search box at right.

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Posted by Elizabeth Kerr

*Image: alliedpress.co.nz – ODT 18.4.16 front page sml

Delta #EpicFail : What is Delta Worth ? $10.5M or $52.5M ? (Murray & Co)

Election Year : The following opinion is offered in the public interest. -Eds

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Received from Christchurch Driver [CD]
Sun, 17 Apr 2016 at 11:41 p.m.

Your correspondent was ruminating about the DCC over a cup of Choysa last week, and was in need of some light relief, so he had a quick read of the latest DCC “report” – (I use the term in the loosest possible sense) about the efficacy of its DCHL assets, including of course, Delta. Your correspondent urges readers with a taste for comedy and irony to read it. It will not disappoint.

█ Agenda – Council – 11/04/2016 (PDF, 1.6 MB)
Item 22 Dunedin City Council Investments and Returns (pp 109 – 123)

The report starts by explaining why a holding company structure was set up in 1994. It was to “operate commercially”, the major benefit of which is helpfully explained as the interest can be tax deductible under a company structure whereas as a DCC entity it cannot. Let’s just think about this in light of the recent fuss about offshore trusts and tax planning : Accountants call it tax efficient, or tax minimisation. Some, including the Government might consider it a form of tax avoidance, particularly when the Owner of those companies constantly has its hand out to central government begging poverty, seeking handouts for capital projects. ($15M for the Stadium, $5M for Otago Settlers Museum, etc).

The humour starts when the report nonchalantly notes that Delta is valued using the current ($13.8M) asset valuation for the elderly Noble debt. In its words there is no allowance for any “additional impairment” – spot the careful euphemism, or excitingly, “any increase in value” : Yes readers, they actually wrote that. There is a useful biblical precedent to this statement in Luke 6:39. Readers’ homework is to look this up….

Delta is valued at “$45-60M”, but this clearly alarmed at least one of the DCHL Directors, Mr Keith Cooper, who as CEO of Silver Fern Farms has recent extensive experience trying to merge or flog off basket (brisket?!) cases to foreigners. Mr Cooper hurriedly said that “a lot of preparation” would be needed to get Delta ready for sale at anywhere near that figure. Your correspondent thinks that preparation would actually be a very good idea.

Getting Delta “prepared for sale” would require some clarity around the costs and revenues of each of its business activities, and each of its major contracts, not just aggregating everything as per the current annual reports.

However, your correspondent believes that level of detail won’t ever be revealed, for a reason which readers should be aware, and that is your correspondent has been advised by former Delta staff that Delta is propped up by its sweetheart contracts with Aurora, and they are the reason that Delta survives and makes a profit. Most of its other activities are awash in a sea of red ink.

Of course, if this is not true, then some detailed information can be released to show that your correspondent is barking up the wrong tree here. Now, is that likely to happen ?

Naturally, Christchurch-based merchant bankers Murray & Co did not provide detail about how the $45-60M valuation figure was arrived at.

What we know from previous Delta posts (Some Forensics, 30.1.16) is that Delta has shareholders’ equity of $15.804M. This is the difference between the alleged $59.705M in assets and the staggering $43.901M in liabilities, which includes $26.49M in term debt. The key factoid : average Delta net profit over the 5 year period 2011-2015 was $2.636M. It is not forecast to pay a dividend for the next three years. Remember, this includes the proceeds from the sweetheart Aurora contracts which are unlikely to be so generous if owned by a private non DCC entity. In 2015 Delta completed $35.4M, fully one third their turnover, on Aurora work.

Now, your correspondent has had a bit to do with valuing companies for sale. A contracting company such as this would sell for an average P/E (Price Earnings ratio) of between 3-5, over a 3-5 year period. With the 5 year $2.636M average net profit, and using a P/E of 4, that gives a value of $10.54M. That is a long, long way from $52.5M, the value DCC and Murray & Co say it is worth.

There is a case to be made that net profit before impairments should be used, but this will not get to anywhere near the $52.5M. On that basis the 5 year net profit would be $4.59M, which at a P/E of 4 gives a nominal value of $18.38M. Your correspondent says this is too much, no one is going to pay many millions over and above net asset backing for goodwill for an “impaired” contracting company.

Readers, who is right ? A tea drinking blogger, with an interest in the facts, or Ms Bidrose and Mr McKenzie, signatories to the report, assisted by Murray & Co ?

Your correspondent can hear the readers’ lament already – CD is a numbskull ! –what about the $15.804M in equity –it has to be worth at least that much !!

Sadly readers, as outlined in the earlier forensics post, it is my prediction that the $15.804M equity will be written down to $5-8M and quite likely less, when the Noble Debacle is finally dissolved, and the actual loss known.

The Owner of Delta is going to have to pump millions in to recapitalise Delta, otherwise it is a dead company walking – towards extinction.

Your correspondent says it is a feat of extreme positive thinking to get to a value of $52.5M, the figure used in the report. Edward de Bono would be proud. Murray & Co probably bend spoons as a warm up exercise.

This correspondent is incredulous that this figure saw the light of day. Your correspondent says it is completely unsupported by the facts.

[ends]

Tue, 12 Apr 2016
ODT: Valuations raise asset-sale questions
A report tabled at yesterday’s Dunedin City Council meeting has revealed the extent of the city’s assets for the first time. The report, which revealed the $417.9million value of council-owned companies, raised some questions during the meeting about the possibility of asset sales.

█ For more enter the term *delta* in the search box at right.

—

Posted by Elizabeth Kerr

Hammered from all sides #fixit [dunedinflood Jun2015]

Here following, reference is made to newspaper items of facts-laden
STRONG OPINION —

This website, What if? Dunedin, and its contributors, MAY reference and offer comment. Three words: Human Rights Legislation.

—

“Let’s sort the systems and the decision-making, get our house in order and get some accountability happening quick-smart.”

### ODT Online Tue, 5 Jan 2016
Lessons must be learnt from flooding
The cost of the Dunedin floods is now well over $30million.
By Clare Curran
OPINION The Dunedin floods of June 3 should not have occurred with such devastating effects for so many. But it did. And the lack of response from Dunedin Civil Defence has simply posed more questions than answers. South Dunedin has long been a community of labourers – workers who epitomise the stoic and egalitarian attitude New Zealand prides itself on. It is communities like these which embrace a firm “can-do” attitude, staunch, resilient, and humble. It is for these people, this hard-hit community, along with those in Mosgiel, Brighton and other parts of Dunedin that answers are needed.
Read more

—

Clare Curran has summed up well.
A highly recommended read. She’s on the very problem.

█ (Monday) Highly critical of DCC’s response to last June’s Dunedin floods.
█ (Tuesday) Slams the Civil Defence response and calls for accountability.

Yesterdays’s column — no ODT link available:

The infrastructure performance report the Member of Parliament refers to on Monday is available at the DCC website – THE REPORT IS IN PUBLIC DOMAIN [FACT].

Go to http://www.dunedin.govt.nz/
1. Click on the tab Your Council in the top menu bar.
2. In the new window click on Agendas, reports & minutes.
3. In the new window, go to Committee, select Council [in the drop down menu].
4. Enter the date 30/11/2015 in both the From and To date boxes.
5. Enter the Document Type by using the drop down menu, select Report.
6. Enter the word infrastructure in the Keyword box.
7. Click on Search.

The report appears as a downloadable PDF file.
THE REPORT WAS TABLED TO MAYOR AND COUNCILLORS ON 30 NOVEMBER 2015 IN THE OPEN SECTION OF THE FULL COUNCIL MEETING.

—

█ Other essential reading – official information released by Dunedin City Council to Elizabeth Kerr:

3.11.15 South Dunedin Flood | Correspondence & Debriefing Notes released by DCC today #LGOIMA

Otago Daily Times Published on Jun 4, 2015
Raw aerial video of Dunedin Flooding
Video courtesy One News.

█ For more, enter the terms *flood* and *south dunedin* in the search box at right.

—

Respectfully, All

Douglas Field Published Jan 5, 2016 | Republished Aug 17, 2016
Clare on phone
Local MP has had the ‘run around’ from the local authority regarding flooding in South Dunedin.

—

Posted by Elizabeth Kerr

Dunedin City not the only council with a code of silence

Received.
‎Sun, ‎24‎ ‎May‎ ‎2015 at ‎2‎:‎43‎ ‎p.m.

A Massey researcher is concerned that some local councils are gagging their elected members and stifling free speech.

Source: Massey University Te Kunenga Ki Purehuroa

Created: 02/12/2014 | Last updated: 16/12/2014
Councils’ conduct codes gag elected members
Dr Catherine Strong from the School Communication, Journalism and Marketing, says there is a disturbing paragraph creeping into some councils’ operating policies.
“It basically prevents elected members talking to the media about anything negative within their council. This includes council decisions, policies and overall reputations,” she says.
The research will be presented at the Journalism Education Association of New Zealand Conference in Christchurch on Thursday, and is a content analysis of codes of conduct of all 67 city and district councils in New Zealand.
While most councils clearly stated that elected members have the right to talk freely to the media (with obvious restrictions around confidential information and employment practices), the research found that 10 councils (15 per cent) restrict elected members giving critical opinion to the media.
This amounts to gagging the elected members – the very people who are representing the community, Dr Strong says. “They are not meant to be spin doctors for the council.” She suspects newly-elected councillors approve the entire 4000 word code of conduct without scrutinising the wording of the small media section within it.
Read more

—

Dunedin City Council – Standing Orders (PDF, 1018 KB)
12 Aug 2014: The Standing Orders set out rules for the conduct meetings of the Dunedin City Council and includes the Code of Conduct for Elected Members, as adopted at the inaugural Council meeting Oct 2010.

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

—

Posted by Elizabeth Kerr

Stadium: Out of the mouths of uni babes…. #DVML

Paint party at Fubar

ODT champions the stadium using the local (primary school for socioeconomics and slant misconstrued statistics) A+ student president. Was she invited to write the column or is she a Farry Follower (the next best thing since ‘Our Stadium’, not sliced bread). Aren’t Terry Davies and Nick Smith close in the ‘make it work’ factory. Let’s do some research, aye~!

—

Forsyth Barr stadium is important to and popular with students, writes Otago University Students Association president Ruby Sycamore-Smith.

### ODT Online Wed, 16 Jul 2014
Opinion
It’s here now, so make the most of it
by Ruby Sycamore-Smith
The future of Forsyth Barr Stadium is important to students. The OUSA represents just under 20,000 members of the Dunedin population and we are high users of the stadium. We see it as a great benefit to Dunedin people. The 2013 OUSA student survey of Dunedin facilities showed a very high satisfaction with the stadium. […] The financial concerns cannot be ignored. And some of the antagonism caused by the provenance of the stadium remains to be settled. Our experience is that DVML is working to ensure the facility is used. We are working with them as much as possible for our own events but also events the DVML team brings to Dunedin that have student interest.
Read more

An obliviously astute and illuminated young woman.
Pride of the South.

—

Posted by Elizabeth Kerr

Google crap destroys searchable record

Read this post at Cameron Slater’s blog Whale Oil Beef Hooked.

### whaleoil.co.nz July 5, 2014 at 7:30am
Google’s demise starts here, ctd
By Pete
Not only are Google changing history, they are effectively censoring you, and me, and journalism too. This morning the BBC received the following notification from Google:

Notice of removal from Google Search: we regret to inform you that we are no longer able to show the following pages from your website in response to certain searches on European versions of Google: http://www.bbc.co.uk/blogs/legacy/thereporters/robertpeston/2007/10/merrills_mess.html

What it means is that a blog I wrote in 2007 will no longer be findable when searching on Google in Europe. Which means that to all intents and purposes the article has been removed from the public record, given that Google is the route to information and stories for most people. So why has Google killed this example of my journalism?
Read more

█ Whale Oil Beef Hooked

—

Posted by Elizabeth Kerr

Mayor Cull ‘handshakes’ Hodgson

Taxpayers’ Union executive director Jordan Williams questioned whether the Auditor General should be involved. “No wonder this council has a history of financial troubles, they’re running it like a cake stall.”

### Sunday Star-Times Sun, 23 Feb 2014
Mayor Cull defends deal (page A9)
By Hamish Rutherford
Dunedin mayor Dave Cull is defending a “gentleman’s” agreement which saw a former MP paid $3400 for lobbying following a handshake deal. Documents released under the Official Information Act reveal that former Dunedin North MP Pete Hodgson was paid by the council to lobby the Government not to strip core functions of Ag Research Limited from Invermay, near Dunedin.
The council said the main point of contact for the deal with Hodgson was Cull, but could not locate a single email, contract or any other document relating to the agreement. […] “Mr Hodgson did not provide any reports relating to his services,” governance support officer Grace Ockwell said.
See article for more.

[click to enlarge]

█ The Taxpayers’ Union broke the story, read their media release (24.2.14), and later they blogged it.

Related Post and Comments (today):
12.9.13 Dunedin community v government-led centralisation

–

Posted by Elizabeth Kerr

*Images: pocketbook.co.uk – handshake; en.wikipedia.org – Dave Cull, Pete Hodgson (re-imaged by whatifdunedin)

Stadium: Brent Edwards cuts the grass (ODT 29.1.14)

Sports Comment (ODT 29.1.14, page 26)
Underperforming stadium needs to lift its game
By Brent Edwards
OPINION There needs to be a more collaborative approach if Forsyth Barr Stadium in Dunedin is to have a chance of fulfilling its enormous potential. It’s here and it’s not going away, whether the naysayers like it or not. It’s a prized asset which has to be maximised and that is not the case at present. […] Rugby watching at the stadium is an experience. But there has been a lack of strong leadership, of continuity, and the resignation of two chief executives in quick time has not helped placate the doubters. Cont/

Free speech and all. Discursive, ill-informed, vacuous —how did Edwards’ opinion piece get past the editor. The column isn’t available online, imagine the comments if it was. By letters or email, pens and typewriters across the city should be flaring with indignation, and FACTS, to pummel the columnist —to educate his sorry arse.

Because papers are still selling today, for the avoidance of ‘plagiarism’, the column isn’t scanned for your amusement. Read it though if you get the chance —at your local library, cafe, McDonalds or workplace staff room. Damned silly to pay for his thoughts.

All those ideas, Brent. Are you rorted, doubters ?????

—

Posted by Elizabeth Kerr

Dunedin community v government-led centralisation

Local farm animals marooned on a specially constructed grassy knoll for want of truth, no bungy cord was available today as an alternative solution.

—

### ODT Online Thu, 12 Sep 2013
Grilling likely for Key
By Dene Mackenzie
Prime Minister John Key can expect to face tough questions about the southern economy and the planned job cuts at Invermay when he visits Dunedin today. Mr Key is in the city to present awards at the Otago Daily Times Class Act function. Before Class Act, Mr Key will address an Otago Chamber of Commerce-organised function at which Dunedin Mayor Dave Cull expects to be seated next to the prime minister. Asked whether he would raise the issue of AgResearch’s restructuring of Invermay, Mr Cull said: ”Too bloody right. It would be remiss of me not to take the opportunity”.
Read more

—

Posted by Elizabeth Kerr

*Image via fanpop.com

Bobbling off . . . #Democracy #Dunedin #Stadium

### NZ Herald 5:30 AM Tuesday Jun 18, 2013
Bob Jones: It’s vote-and-hope for competence at top
By Bob Jones
OPINION There was a time when the mayoralty of our major cities commanded considerable prestige as a cap on a successful professional or commercial career. History reveals many important mayors of an earlier age. Sadly no longer. Instead, everywhere there are mayors and councillors devoid of even the faintest credentials for any public office. Indeed, some have never had a job, suggesting they’re financially motivated. Given perks such as the sister cities silliness and ratepayer-funded jaunts to them, free cars, telephones, etc, being mayor is quite appealing for the unaccomplished.

Dunedin is unique as it’s been well served by competent mayors, evidenced by the last half dozen being repeatedly re-elected, in most cases for three terms, before retiring.

I suspect voters are conscious of that as I’ve observed how they repeatedly backlash against the most heavily advertised mayoral candidates, as if suspicious of such hunger for the office. We can only speculate why obvious potential candidates now shy away, but cannot condemn those who do stand, humdrum though they may be. Someone must or we’ll have no democracy.
Read more

—

Meanwhile at ODT Online:

“Mr Cull has allowed himself to be captured by the town hall bureaucrats and the self-interest groups in exactly the same way as his predecessors. The Sir Humphreys of this world are clearly alive and well at the Civic Centre.” —Moore1967

—

Posted by Elizabeth Kerr

Front page NEWS @!&^#$%

Received from Grahame Sydney
Friday, 17 May 2013 5:35 p.m.

Just in case you were nursing some warm notions that our proudly independent local newspaper slaved to keep a balanced, objective approach to the day’s news and its presentation, a glance at today’s dominating front page story by Dene Mackenzie on yesterday’s National Party Budget might prove instructive.

Under the banner headline “It’s a Win for the South”, Mackenzie begins the story as follows:

“Budget 2013 provides plenty for the South” (my italics) then goes on to state “Most attention was directed towards the Budget’s focus on the lack of housing in Auckland and on the rebuilding of Canterbury – but there was certainly something for those in business south of the Waitaki.”

Given the statement that “most attention” was directed at Auckland housing and the rebuilding of Canterbury – by which single stroke Christchurch now becomes Canterbury – it’s hard to see where the “Win for the South” emerges triumphant, unless of course you’re in business south of the Waitaki.

Tough bikkies if you’re not in business…

The article then goes on to state that “Mr English’s Budget was reasonably exciting for the South”, listing at the top of its illustrations the allocation over the next four years of money for an additional 20 places at Otago Medical School, though not necessarily in Dunedin. Exciting indeed !

Further evidence of the “Win for the South” apparently lies in the additional money for aged care and dementia services, because “the South has an ageing population (and) regional medical services should be in line for some of that money.” Hmmmmmm.

I suppose Mackenzie would also claim a significant win for the lower latitudes in the $19 million taken from the general education allocation to fund John Banks’ charter schools project. That’s what you get with cynical coalitions.

However the best comes mid-way in the lead story, Mackenzie plainly stating the ODT’s biased position as follows:

“The major disappointment of the day was the failure of the Opposition to land a significant blow on what was Mr English’s fifth Budget.”

and
“Labour leader David Shearer resorted to cliches, calling it a “blackjack Budget””

and
“Green Party co-leaser Russel Norman demonstrated again his inability to read a balance sheet.”

and
“Apart from the three leaders saying National was, in various ways, catering for its “fat-cat developer mates” there was nothing for the Government to worry about from yesterday’s Opposition statements and speeches.”

Hey, here’s a bold idea:
Why not try keeping the front page news stories to reporting the facts, with some effort at balance, and let readers make their own decisions on matters of interpretation ? The Op Ed columns are the place for heavily-weighted opinion like this.

Grahame Sydney
Cambrian Valley, Central Otago

{ODT Online says —Editor: The article was clearly marked ‘Budget Comment’ in the ODT print edition. That it was not marked as such online was an error which was rectified.}

—

Posted by Elizabeth Kerr

‘Heartbreak Hotel’ —Grahame Sydney

Received Thursday, 18 April 2013 11:23 a.m.

Wharf Street Hotel: time for some answers
By Grahame Sydney

With the DCC’s Resource Consent panel now sitting on its evidence, the full Council prevented from commenting on the proposal, and Dunedin ironically about to indulge in a celebration of its invaluable built heritage, isn’t it time a few things were clarified for the Dunedin public ? Time for a few truths to be told, instead of the shamefully dishonest propaganda from the promoters of the Wharf Street Hotel ?

Let’s start with the promotional video released on May 11, 2012 and voiced on behalf of his clients by Steve Rodgers of “Betterways Advisory”.

This sophisticated promo is a must-watch for all Dunedin residents, because within its 3 minute 49 second running time they will discover a Dunedin totally unlike the one they know: this is a fantasy Dunedin, whose tranquil waterfront bears no resemblance whatever to the facts. It is neat and orderly, blessed with open park spaces, and tied to its wharfs are luxury yachts and container ships. Rows of new, unrecognisable buildings have miraculously appeared behind every view of the towering glass monolith, and as the CGI camera sweeps across this fictional CBD towards the Stadium (curiously glimpsed only from overhead) and down its oddly-scaled roadways citizens will puzzle to identify any of the many buildings occupying the land in the vicinity of the Railway Station.

Perhaps the developers have bolder plans than a single hotel ? Certainly the Dunedin presented in this video sales pitch is not today’s city. It’s a scrubbed up, redesigned, blatantly re-scaled quasi-Auckland Viaduct vision in which the hideous proportions of the hotel appear more comfortable and the truth is deliberately ignored.

Dunedin eNZed May 13, 2012
http://www.youtube.com/watch?v=BhiKqnDT06M

As you watch, hit the Pause button at 33 seconds, at 53, at 1.14, at 1.21, at 1.39, at 2.22….. what ARE those buildings ? Where did they come from ? Have I been asleep these last decades ? Am I in the right city here ? Would someone please be honest here ?

Having extolled the virtues of the city’s marvellous heritage buildings, and noting that they are one of the major reasons why “tourists love this city”, Mr Rodgers proceeds to extol the virtues of “my clients’ grand design”, which so brutally desecrates that heritage.

Who are these visionary clients, so hellbent on bestowing gifts ? We are slowly learning: the “Otago Businesswoman” behind the proposal is an ex-accountant locally, now consultant and wine promoter living in Queenstown. Ms Song has the good fortune to be married to Ping Cao, reportedly “one of China’s top construction company owners”. That marriage, incidentally, took place in another New Zealand city with which she reported fell instantly in love: Nelson. No “gifts” for Nelson, however. How fickle is love.

Being pushed forward now as the public face of the project, Ms Song’s repeated professions of love for Dunedin are no substitute for expertise, or indeed sensitivity. It is evident she and her entrepreneur husband belong to the camp which believes Dunedin’s Victorian and Edwardian built heritage has less appeal than the monstrously ugly Dunedin Stadium, and that they anticipate a brighter future for the city when more of the same charmless, cheap, dated design has overwhelmed the city’s essential historic character.

Far too many unanswered questions remain, and honest answers would be enlightening.

Hotel: Grahame Sydney on tenants for 164 apartments

ODT Graphic – The Wash, 17.4.13 (page 2)

—

Anonymous commented here (18.3.13) on the likelihood of the proposed tower apartments being pitched to students from China.

In short, proposed apartments intended as ‘university college’ atop a cheapish 5-star hotel.

Artist Grahame Sydney comes to the same conclusion. An (unpublished) opinion piece he sends to DScene leads reporter Wilma McCorkindale to engage Betterways owner, (note) Steve Rodgers.

We’d like Sydney to publish his full article ‘Heartbreak Hotel’ at What if? – since DScene and Southland Times only reference the item, fleetingly. Too hot to handle? So Grahame, if you’re reading this . . .
[happily, we got it, read the unabridged version here]

—

### stuff.co.nz Last updated 14:46 17/04/2013
Hotel a ‘hostel for privileged’
By Southland Times + DScene
Apartments in the proposed hotel for Dunedin’s waterfront could end up being occupied by Chinese students – or anybody else who wants them – project spokesman solicitor Steve Rodgers says.
Rodgers fronts for Betterways Advisory, a company owned by Chinese woman Jing Song*, which is proposing to build the 28-storey, five-star Dunedin Hotel on an industrial site a stone’s throw from the city’s inner harbour. This week he defended scathing commentary about the project, levelled by Otago artist Grahame Sydney.
In an article called Heartbreak Hotel sent to DScene, Sydney voiced several concerns, many already played out during a recent consent hearing – including the hotel’s ability to achieve economically viable occupancy rates. Sydney believed Betterways was targeting the lucrative international student market, specifically Chinese students, by including 164 apartments in the project.
Sydney also complained that a promotional video illustrating the hotel concept deliberately excluded surrounding heritage buildings in its visuals. The impact on heritage values in the city was one of the major concerns raised in submissions.
Read more

—

*What if? notes the New Zealand Companies Office register entry for Betterways Advisory Ltd (3142026) lists Stephen Rodgers as the sole director, with LMW Trust Limited (3141813) as the shareholder. Jing Song isn’t mentioned in connection with either entity.

Related Posts and Comments:
15.4.13 University buys LivingSpace Dunedin
15.4.13 Shane McGrath —Gelber LuftBallon (Dunedin Research Project)
14.4.13 Ballooning! —playing off Betterways
16.3.13 Hotel: COC jollies and sweet cherry pie
23.1.13 Proposed hotel: Council and submitters await detailed information

—

Posted by Elizabeth Kerr

Chongqing, Southwest China

### news.xinhuanet.com | English.news.cn 2013-01-26 21:27:26
Chongqing sets new roadmap in post-Bo Xilai era
CHONGQING, Jan. 27 (Xinhua) — Chongqing’s municipal government vowed Saturday it would shake off the impacts of the Bo Xilai scandal and make law-abiding governance the priority alongside further reform. Huang Qifan, mayor of the metropolis in southwest China, described 2012 as an “extremely extraordinary year” for Chongqing’s development in his report on the work of the municipal government, which was delivered to the 4th Chongqing Municipal People’s Congress.

The local legislature convened its annual session on Saturday with aims to outline the city’s future blueprint for the next five years. The mayor said the government has endeavoured to maintain steady economical and social development despite the severe toll of the incidents involving Bo Xilai, with the city recording an annual economic growth of 13.6 percent. “It turned out that Chongqing citizens have weathered storms and withstood ordeals,” he said.

The government published the full text of its work report, in which it placed governing in accordance with the Constitution and the law as a main focus for this year, while references to Chongqing’s previous high-profile crackdowns on organised crimes are notably absent. In 2009, when Bo Xilai was the CPC (Communist Party of China) chief of Chongqing, the city launched a massive anti-crime campaign, prioritising fighting local mafia-style gangs. Though Bo and Chongqing’s police were credited with reducing crime, concerns were raised about abuses of power and the neglect of due legal process.

The government should rule in accordance with the law, and “no organisation or individual has the privilege to overstep the Constitution and the law,” the work report said. A power reshuffle in this session is set to usher in new local leaders, higher requirements are posed for the municipal government to further intensify reform, Huang told the lawmakers, adding that improvement to work style should be made following the central leadership’s call for eradicating bureaucracy and formalism in December.

Officials in Chongqing are urged to remain low-key and down to earth, talk less and work more to better serve the people.
Read more

****

“Amazing city… but without spirit… is a City with many construction. Don’t have the beauty of Brasilia… is a new city of construction.” —Cidade_Branca (architect) at SkyscaperCity CHONGQING | Projects & Construction (2.11.07 03:36 AM)

Wikipedia: Chongqing

“One river is naturally brown from the silt, the other is normal dark blue.”
—the spliff fairy at SkyscraperCity (28.2.13 01:54 PM)

—

### nytimes.com September 26, 2011
Built in a Dirty Boom, China’s Biggest City Tries to Go Green
By Coco Liu – ClimateWire
CHONGQING, China — Wandering around in downtown Chongqing, it is hard to imagine that this is a city that is going green. Vehicles clog roads in every direction. Construction cranes stretch to the horizon. And huge posters displaying locally produced industrial goods show where the city’s exploding economic growth is coming from. But Chongqing (population 28,846,200) is more than meets the eye. After living with acid rain and toxic smog for decades, the city has been scrambling for ways to clean up the air. It is also overhauling its power-hungry economy and rebuilding it on a base of industries that use less energy.

Chongqing isn’t alone on such a transformation path. It is one of several pilot provinces and cities that Chinese leaders picked last year in an attempt to find a low-carbon growth model that can be spread to the rest of the nation. Experts attribute this new Chinese desire to the fact that China’s environment and natural resources can no longer afford the blights of heavily polluting, energy-intensive growth. Moreover, there is growing pressure from the outside world to reduce emissions.

Chongqing, controlled demolition 30.8.12

Cities will play a major role in that effort. During the next 20 years, more than half of global greenhouse gas emissions are estimated to come from the developing world’s cities, and more than half of that will come from Chinese cities, says Michael Lindfield, a lead urban development specialist at the Asian Development Bank. “So the importance of making Chinese cities energy-efficient is really a global issue, not just a Chinese issue,” Lindfield added.

But none of this comes easily. For one, it is hard for cities to uproot decades-old economic foundations. In addition, cities risk revenue losses. Energy-guzzling factories that are shut down, in many cases, can’t be immediately offset by low-carbon industries that are still in their nascent stage. Moreover, the switch from traditional industries to green businesses claims jobs, at least for a short term. While cement makers can hire people with few skills, solar panel producers can’t.

Chongqing [became] one of the nation’s industrial hubs. It is China’s biggest producer of motorcycles. It leads in aluminum production. Every day, containers of made-in-Chongqing steel, chemicals and machinery are loaded on cargo ships and then sent from here to destinations along the Yangtze River. All this came at a heavy price.

Data from the World Bank showed that in the early 2000s, one-third of crops in the Chongqing area had been damaged by acid rain — the result of sulfur dioxide and other industrial pollutants. Breathing here became a dangerous thing to do. The World Bank reported that in 2004, residents in Chongqing were inhaling six times more lung cancer-causing pollutants than the World Health Organization considers safe.

“The city was always enveloped by fog and smog,” explained Li, the local economist. The mountain terrain around it helped concentrate Chongqing’s murky air, he said, “but pollution from heavy industries was the key.”
Read more

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Chongqing Planning and Exhibition Centre. The city model shows a concept idea of the future of Chongqing. Most important skyscrapers aren’t added until they have a definitive design. —z0rg at SkyscraperCity CHONGQING | Projects & Construction (6.8.06 09:32 PM)

100 towers taller than 200m including 20 supertalls in one city.
Chongqing 200+ metre List —z0rg at SkyscraperCity (6.7.08 10:05 AM)

****

[ODT] The project was being advanced on their behalf by Betterways, of which Ms Jing Song was also a director.

### ODT Online Sat, 23 Mar 2013
Betterways, Diamond Heights link
By Chris Morris
DUNEDIN — The construction company linked to Dunedin’s proposed $100 million waterfront hotel is building the tallest tower in western China. The building will be the tallest for the time being, at least. It has been confirmed the company linked to Dunedin’s proposed hotel is Diamond Heights Construction Engineering Co Ltd, which is based in Chongqing, China, and employs more than 1000 staff. The company is owned by Ping Cao, who together with wife Jing Song, of Queenstown, wants to build Dunedin’s five-star hotel on industrial land at 41 Wharf St.

While it was said Diamond Heights would not be directly involved in construction of Dunedin’s hotel – should consent to proceed be granted – Mr Cao and Ms Song planned to fund it together and contract a New Zealand company to build it.

Mr Cao’s company is responsible for the construction of the 65-storey Shangri-la Hotel in Chongqing, which at 290m high will, when completed, be nearly three times the height of Dunedin’s proposed hotel. It was almost finished, with only the exterior cladding to be added, and was an impressive sight when visited by Betterways Advisory Ltd director Steve Rodgers last year, he told the Otago Daily Times.
The company was also involved in other projects in China, including two sprawling mixed-use developments comprising hotels, other commercial buildings and housing.
Read more

Shangri-La Hotels and Resorts is said to be Asia Pacific’s leading luxury hotel group. Four Shangri-La hotels are projected for Chongqing.
Image: businesstraveller.asia

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Related Posts and Comments:
16.3.13 Hotel: COC jollies and sweet cherry pie
23.1.13 Proposed hotel: Council and submitters await detailed information
28.12.12 ‘Low-rises are great for the community and the residents’
24.12.12 A Christmas Tale
21.12.12 Proposed hotel – ODT graphic indicates building height
19.12.12 Hearing for proposed hotel – competencies, conflicts of interest?
16.12.12 Proposed Dunedin Hotel #height
10.12.12 Proposed hotel, 41 Wharf St – “LEARNING FROM LAS VEGAS”
7.12.12 Proposed hotel – Truescape shenanigans
6.12.12 Dunedin Hotel – revised design
2.12.12 Roy Rogers and Trigger photographed recently at Dunedin
26.11.12 Proposed hotel, 41 Wharf Street – indicative landscape effects
20.11.12 City planner’s report recommends against consent for hotel
10.11.12 Dunedin Hotel, 41 Wharf Street (LUC 2012-212)
4.10.12 DUNEDIN: We’re short(!) but here is some UK nous…
8.9.12 Waterfront Hotel #Dunedin (Applicant names?)
7.9.12 Waterfront hotel: DCC to notify resource consent application
23.6.12 Mis(t)apprehension: website visits, not bookings?
16.5.12 Dunedin Hotel

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Posted by Elizabeth Kerr

Hotel: COC jollies and sweet cherry pie

LUC 2012-212 Betterways Advisory Limited
41 Wharf Street, Dunedin

507 submissions were received following notification of the application, 457 in opposition, 43 in support, and seven were neutral in their stance.

How high is 96.300 metres. How rank is the design.
How sunk is public access to full assessment of environmental effects (AEE).

Christchurch is building low.

The Dunedin stadium (named for the company the Commerce Commission recently described as misleading and deceptive in their marketing) has not been tested by a large earthquake or swarm. It stands on land prone to liquefaction.

The proposed hotel and apartment complex (28 storeys) – a tall building – will stand on land prone to liquefaction.

Is there sense or cents driving this. Offshore bling.

The Minister for Tourism, Pokies and Convention Centres is John Key PM.
Tourism lives in the second tier economy, mostly, brashly, at Queenstown Lakes.

Dark suits of Chamber want some o’ that sweet cherry pie.
How will it come.

Related Posts and Comments:
23.1.13 Proposed hotel: Council and submitters await detailed information
28.12.12 ‘Low-rises are great for the community and the residents’
24.12.12 A Christmas Tale
21.12.12 Proposed hotel – ODT graphic indicates building height
19.12.12 Hearing for proposed hotel – competencies, conflicts of interest?
16.12.12 Proposed Dunedin Hotel #height
10.12.12 Proposed hotel, 41 Wharf St – “LEARNING FROM LAS VEGAS”
7.12.12 Proposed hotel – Truescape shenanigans
6.12.12 Dunedin Hotel – revised design
2.12.12 Roy Rogers and Trigger photographed recently at Dunedin
26.11.12 Proposed hotel, 41 Wharf Street – indicative landscape effects
20.11.12 City planner’s report recommends against consent for hotel
10.11.12 Dunedin Hotel, 41 Wharf Street (LUC 2012-212)
4.10.12 DUNEDIN: We’re short(!) but here is some UK nous…
8.9.12 Waterfront Hotel #Dunedin (Applicant names?)
7.9.12 Waterfront hotel: DCC to notify resource consent application
23.6.12 Mis(t)apprehension: website visits, not bookings?
16.5.12 Dunedin Hotel

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Posted by Elizabeth Kerr

Images: Cherry Pie, WiseGeek (top). ‘Cherry Pie service’ (redraw), from Cherry Pie (Remastered), last.fm

Proposed hotel: Council and submitters await detailed information

The committee planned to invite hundreds of submitters to have another say on the new information, before resuming the hotel’s resource consent hearing in March.

### ODT Online Wed, 23 Jan 2013
Further dialogue on hotel
By Chris Morris
Plans for a $100 million five-star hotel on Dunedin’s waterfront are to go back to submitters for another round of public consultation. It was confirmed yesterday the Dunedin City Council’s hearings committee has requested more information from Betterways Advisory Ltd, which wants to build the 28-storey hotel and apartment tower.
The details were contained in a letter from committee chairman Cr Colin Weatherall to Betterways, dated January 17 and released to the Otago Daily Times by Cr Weatherall yesterday. Betterways director Steve Rodgers said when contacted he was still considering its contents, but was frustrated and concerned by the length of time the consent process was taking.
Read more

Cr Weatherall’s letter to Betterways said extra information was required for a “proper understanding” of the hotel and its impact on the immediate surroundings and wider environment.

Information wanted by 15 February:
● An assessment of the environmental effects of construction and wind disturbance arising from the hotel
● A report from a recognised landscape expert
● Additional computer-generated images showing the hotel from locations around the city
● Betterways Advisory Ltd must physically demonstrate the hotel’s height on site in a way that was visible from across the harbour, perhaps by using a tethered balloon.

Image: ODT Online 2.12.12 [screenshot]

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Related Posts and Comments:
28.12.12 ‘Low-rises are great for the community and the residents’
24.12.12 A Christmas Tale
21.12.12 Proposed hotel – ODT graphic indicates building height
19.12.12 Hearing for proposed hotel – competencies, conflicts of interest?
16.12.12 Proposed Dunedin Hotel #height
10.12.12 Proposed hotel, 41 Wharf St – “LEARNING FROM LAS VEGAS”
7.12.12 Proposed hotel – Truescape shenanigans
6.12.12 Dunedin Hotel – revised design
2.12.12 Roy Rogers and Trigger photographed recently at Dunedin
26.11.12 Proposed hotel, 41 Wharf Street – indicative landscape effects
20.11.12 City planner’s report recommends against consent for hotel
10.11.12 Dunedin Hotel, 41 Wharf Street (LUC 2012-212)
4.10.12 DUNEDIN: We’re short(!) but here is some UK nous…
8.9.12 Waterfront Hotel #Dunedin (Applicant names?)
7.9.12 Waterfront hotel: DCC to notify resource consent application
23.6.12 Mis(t)apprehension: website visits, not bookings?
16.5.12 Dunedin Hotel

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Posted by Elizabeth Kerr

Proposed hotel – ODT graphic indicates building height

ODT Online 21.12.12 (screenshot)

Read the article by Chris Morris:
Waterfront hotel: How big would it be?

UPDATED POST 22.12.12
Hotel/Casino/Investor updates for 41 Wharf Street:
● Queenstown/Auckland Casinos (share swaps) Link to comment
● Macau.com Link to comment

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Related Posts:
19.12.12 Hearing for proposed hotel – competencies, conflicts of interest?
16.12.12 Proposed Dunedin Hotel #height
10.12.12 Proposed hotel, 41 Wharf St – “LEARNING FROM LAS VEGAS”
7.12.12 Proposed hotel – Truescape shenanigans
6.12.12 Dunedin Hotel – revised design
2.12.12 Roy Rogers and Trigger photographed recently at Dunedin
26.11.12 Proposed hotel, 41 Wharf Street – indicative landscape effects
20.11.12 City planner’s report recommends against consent for hotel
10.11.12 Dunedin Hotel, 41 Wharf Street (LUC 2012-212)
4.10.12 DUNEDIN: We’re short(!) but here is some UK nous…
8.9.12 Waterfront Hotel #Dunedin (Applicant names?)
7.9.12 Waterfront hotel: DCC to notify resource consent application
23.6.12 Mis(t)apprehension: website visits, not bookings?
16.5.12 Dunedin Hotel

UGLY DOESN’T COVER IT

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Posted by Elizabeth Kerr

Proposed Dunedin Hotel #height

The applicant has supplied a transverse section of the building proposal showing calibrated basement, podium and tower levels. The building height to top of roof structure is marked on the drawing as 96.300 metres.

As published at ODT Online:

OPINION » Your Town » Dunedin
What does 97m look like?
By ej kerr on Fri, 14 Dec 2012

Last night I took another tour of the Settlers Museum, having been through a month ago while exhibition displays were being populated, before the new foyer was completed.

The link to the Chinese Garden has yet to be made at the south end of the old NZRS building.

In the museum we have an impressive series of new and refurbished spaces, the reading of which is generally low and long, suited to the narrow site between the railway and State Highway 1, and sympathetic to the immediate historic built environment.

Looking out from the museum’s new foyer, which takes evening light amazingly well, across the traffic on SH1, there is old Dunedin Prison (1898), Dunedin Law Courts (1902), Dunbar House (former Dunedin Police Station, c.1895) and Leviathan Hotel (known as ‘Leviathan Railway Temperance Hotel’ when built in 1884).

This precinct flows into Anzac Square to the north, with Dunedin Railway Station (1906); lower Stuart Street featuring Law Courts Hotel (Auld Scotland Hotel was established on site in 1863), and Allied Press Building (former Evening Star Building, 1928); The Exchange area (old CBD); and Queens Gardens and the warehouse district to the south.

I mention this unique ‘cultural heritage landscape’ of buildings and green space because the impressive large-screen video flyover provided at the museum, as I understand, by Animation Research Ltd (ARL), shows exactly where the proposed 27-storey hotel and apartment block at 41 Wharf Street, if consented and constructed, will deliver significant irreversible adverse effects in the neighbourhood context – including for the Steamer Basin (see cruise operations by MV Tiakina and MV Monarch) and Dunedin Harbourside Historic Area (registered by New Zealand Historic Places Trust in 2008); and the Burlington Street Historic Area (registered in 1994), comprising Burlington St between High St and Moray Place (captures First Church, Burns Hall, Commerce Building, RSA Building, and Garrison Hall).

The adverse effects would be entirely due to the unwarranted height and overbearing design of the proposed hotel and apartment block.

The effects cannot be mitigated.
ARL should be asked to ‘insert’ the offending tower proposal into the museum flyover to gauge public reaction.

Alternatively, for no cost, Dunedin residents can walk or drive into the closed-off section of lower Rattray St beside the old level crossing and the Chinese Garden and take a look at the railway lighting tower.

This structure is approximately 35 metres in height. Imagine, at this street location, the hotel bearing down on you from 97 metres above.

With this height comparison think what happens to your enjoyment of the views, buildings and surroundings, together with your experience of sun and wind (microclimate)… and why for so many years Queen Elizabeth II Square in downtown Auckland was unalterably inhospitable, it was a rare day if anyone enjoyed lingering there before the Britomart Transport Centre was developed.

We’re not going to get a Britomart in Dunedin.

In terms of urban design, the proposed hotel and apartment tower is going to sever and destroy the sense of place – and your connection with the harbour edge, physically, metaphorically, spiritually, tangibly and intangibly.

Without end, without moral or ethical consideration as posed by the application documentation (no footbridge included).

And with the hearing committee taking that disingenuous path of wanting more information from the applicant so to tick boxes for consent to be granted.

The mayor has been lobbied by Betterways Advisory Ltd and friends; the politics is thick with ‘red carpet’ and promissories… as yet, there’s nothing solid, concrete or foundational in the appearance of the application. Is the city council about to bind us with a badly scribbled note worth $100m.

Ode to a mocking tower, at 35 metres. If only it could speak.

ODT Link

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Posted by Elizabeth Kerr

Proposed hotel – Truescape shenanigans

Comment and combined image received today [email].

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“I confirm that the single frame simulations that Truescape has produced, accurately shows the proposed development on the 41 Wharf Street site.”

Yeah, right.
See images attached.

The lighting tower is the point of comparison. It is 35m tall. In the Truescape simulation [left], it appears to be approximately 50% of the height of the hotel, which would make it 70m. In the reference image [right], it is more accurately depicted as about 1/3rd of the height, which is correct.

[ends]

Sources:
● Evidence of Rachael Stanners -Truescape (PDF, 3.4 MB) Evidence presented to the Hearings Committee

● LUC-2012-212 12. Viewpoint booklet by Truescape (PDF, 3.4MB)
This document is a scanned copy of the application for resource consent

● Images by Madeleine Lamont (Submission No. 422) reproduced at Proposed hotel, 41 Wharf Street – indicative landscape effects (26.11.12)

● Application information – including post application and briefs of evidence to hearing: http://www.dunedin.govt.nz/council-online/notified-resource-consents/current-notifieds/luc-2012-212

******

At ODT Online…
[Excerpts]

On hearing session, Thursday 6 December
ORC counsel Alistair Logan said the hotel’s visual impact was reason enough to reject the consent application, but Betterways director Steve Rodgers had indicated no downsizing would be considered. That made the company’s proposal an “all or nothing” bid and “given that choice, there is only one answer – nothing”, Mr Logan said.
Simon Parker, from the New Zealand Institute of Architects Southern Branch, said the hotel would block views and destroy the character of the area, and Paul Pope, of the Dunedin Amenities Society, said it would dominate the landscape in a way “not seen in Dunedin before”.
http://www.odt.co.nz/news/dunedin/238134/plop-architecture-among-litany-criticisms

The hearing is adjourned but will resume on Monday 17 December for up to three further days of submissions.

******

On hearing session, Wednesday 5 December
The session was dominated by Christchurch barrister John Hardie and two expert witnesses, appearing on behalf of Capri Enterprises Ltd, which own significant tracts of industrial land in Dunedin.
Betterways had to show the hotel would have effects that were no more than minor, or met the policies and objectives of the district plan, and “I don’t think the proposal meets either of the tests”, Mr Hardie said. […] Mr Hardie began by questioning the credibility of evidence given by Dunedin architect Francis Whitaker, who gave a glowing endorsement of the hotel plans on Tuesday. Mr Whitaker was an architect, but spoke about urban design issues, which he was not qualified “in any way, shape or form” to do, Mr Hardie said. Mr Hardie said he was not asking for Mr Whitaker’s evidence to be excluded, but might if the same claims were made in the Environment Court. […] He also took aim at evidence from Phil Page, the solicitor acting for Betterways, saying a suggestion the hotel’s height should be ignored – because it would be built on industrial land without height restrictions – was “utter nonsense”.
http://www.odt.co.nz/news/dunedin/237993/submitters-attack-100m-hotel-plans

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Posted by Elizabeth Kerr