Regional council builds Palace, refuses help to dredge Otago boat harbour

The ironies are Most Apparent.

The Otago Regional Council contributed $30m to the stadium roof (an activity beyond its local authority mandate), yet the council has no intention of helping the Otago Yacht Club to maintain the city’s marina, the Otago Boat Harbour.

[click to enlarge]
DCC Webmaps – Otago Boat Harbour at Mouth of Leith JanFeb 2013

Otago Yacht Club’s origin dates back to 1892, making it one of the oldest yacht clubs in Otago. The club caters for a range of sailing interests from keelboats to trailer yachts and centreboarders. The club also operates keeler haul-out facilities and welcomes visiting boats. The club manages a full events programme during summer, including harbour, coastal and ocean races. On Sunday mornings in the season the club runs ‘learn to sail’ and ‘learn to race’ programmes which cater for all ages. The clubhouse is a popular venue for private functions and for local organisations to hold meetings and events. Within walking distance of the city centre, the clubhouse offers showers, laundry facilities, email connections etc. The resident caretaker-manager will usually manage to accommodate requests for berthage for boats up to 50 feet. The alongside mooring facilities consist of several large punts inside a walled boat harbour. Due to silting, access to the boat harbour has only been tenable approximately two hours either side of high tide for boats with 2m draft. The Otago boat harbour was last dredged in 1995.
Source: otagoyachtclub.org.nz

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### ODT Online Thu, 20 Apr 2017
Club gets go-ahead to dredge boat harbour
By David Loughrey
The Otago Boat Harbour is about to get its first dredging in more than 20 years, after the facility reached such a state rescue vessels could not leave the harbour at low tide. The work, expected to start soon, has been described as a major achievement by the Otago Yacht Club, which leases the boat harbour. Club vice-commodore Blair McNab said the cost of the project – more than $300,000 – was being paid for from grants and club membership fees. […] The club recently received resource consent from the Dunedin City Council for the work. The consent allowed the club to deposit dredged sediment and soil on land in Magnet St, behind the club, for drying. Mr McNab said once the dredged material had been dried, which took about two weeks, it would be taken to the nearby Logan Point quarry. The consent said once the work was completed, about 100cu m would remain on the grass area at Magnet St to form a barrier around its perimeter, and provide better drainage. The consent decision said the boat harbour was in such a state that at low tide, craft used for harbour rescues could not get out. […] The club had hoped the Otago Regional Council might help with the cost of the dredging, as alterations to the Water of Leith meant more spoil was coming from the nearby mouth of the stream. Mr McNab said it appeared the council was not going to help.
Read more

The Star April 2014 via Otago Yacht Club. Also at ODT Online 22.4.14

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The Otago Regional Council’s “special consultation” over its Dunedin headquarters is flawed, writes former councillor Gerrard Eckhoff.

### ODT Online Tue, 18 Apr 2017
Review needed in lieu of proper consultation
By Gerrard Eckhoff
The Otago Regional Council’s annual plan is now open for public consultation. Implicit in the word consultation is the opening of a meaningful dialogue with the public. It would be entirely disingenuous for any local authority to enter into discussion on their annual plan by merely informing the public of council intent without showing a willingness to accept “the wisdom of crowds”.
….This year’s ORC annual plan contains four lines on “Dunedin building review” in its feedback document which could easily be missed at first reading. To its credit, the council has finally accepted its statutory obligation for “special consultation” on this $30million major project.
….The last time the council ventured forth on a new building project without any prior special consultation, it cost the ratepayers upwards of $3million for the concept design and drawings alone. The cost of that proposal was well over $30million and it was never built. It is, therefore, hard to reconcile how the new building/s is going to be around the projected $20million mark, unless building costs have halved in Dunedin from eight years or so ago. The potential cost of a new car park building must also be factored in, so the ratepayers could soon be the lucky owners of two new buildings, as well as a difficult-to-sell ORC headquarters building in Stafford St.
Read more

DCC Webmap – Dowling St carpark JanFeb 2013, ORC office site starred

Related Posts and Comments:
9.1.17 ORC $wimming in it —SHOULD afford more Otago environmental…
15.8.16 ORC : Official complaints show integrity
22.6.16 ORC New HQ : Reminder, fiduciary duty and core responsibilities
● 9.6.16 ORC empire building again : Consultants give questionable options…
11.8.12 ODT editorial (spot on!) — ORC temporary headquarters
26.6.09 ORC headquarters [incl news items to present day]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images: Otago Yacht Club except where stated otherwise.

ORC New HQ : Reminder, fiduciary duty and core responsibilities

Land ● Water ● Air ● Coast ● Built Environment ● Biota ● Natural Hazards ● Energy ● Wastes and Hazardous Substances

The core business of the Otago Regional Council is environmental protection, not real estate investment. –Eckhoff

### ODT Online Tue, 21 Jun 2016
Environmental cost to building
By Gerrard Eckhoff
OPINION The decision the Otago Regional Council will have to make on a new administration block sometimes means deciding on the lesser evil. Whatever the decision, councils don’t get much thanks for avoiding one bad choice in favour of another. The option of leasing space in an existing building, thereby leaving a large amount of capital free for the ORC’s primary environmental functions, has been summarily dismissed by the chairman of the ORC. This is despite matters of “significant investment” (such as a new building) requiring special consultation with our ratepayers, who will in turn expect that their or any suggestion will not be so easily dismissed. […] The ORC’s failure to understand that environmental inaction simply transfers cost from this generation to the next and with a multiplier effect is inexcusable. What price must environmental imperatives pay for a new building? That is the real question the ORC must ask of itself.
Read more

● Gerrard Eckhoff, of Central Otago, is an Otago regional councillor.

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Otago Regional Council meeting
█ [today] Wednesday, 22 June 2016 at 9:00 a.m.
Council Chamber, 70 Stafford Street, Dunedin
Members of the public are welcome to attend.

Download: Agenda includes minutes and reports (PDF, 2402 KB)

Go to Part C Item 7 (pages 68-70)
Report: ORC Head Office Accommodation Update. DCS, 16/6/16
The report provides an update on the Council and staff workshops held to help inform the next stage of the project.

[extract]

Related Posts and Comments:
● 9.6.16 ORC empire building again : Consultants give questionable options…
11.8.12 ODT editorial (spot on!) — ORC temporary headquarters
26.6.09 ORC headquarters [incl news items to present day]

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Posted by Elizabeth Kerr

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

ORC empire building again : Consultants give questionable options for new office solutions

█ Should ORC be made to stay at its current Stafford St site for greater efficiency and cost saving ?

whatifdunedin says:
● Is new officing needed for ORC ? —Not clear.
● Is officing for ORC a worthy use of the prime site to Queens Gardens ? —NO, definitely not.
● Has there been full diligence around the building and site options available at Dunedin ? —Instant laughter. Look at the options listed at ODT, really ? That list has been utterly contrived for ONE set outcome, no more and no less.
● This “ORC Quest” (paraded as diligence for All councillors’ consideration) is empire building by a small rough set bunch of local body bureaucrats and their nest-feathering consultant-buddies with construction industry connections to particular councillors who should know better than not to declare their strong conflicts of interest, right now.

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In the Otago Daily Times, developer and heritage building owner Russell Lund writes: “Public scrutiny is required to ensure the most efficient solution is found for the ORC’s new Dunedin building”. He goes on to detail that the regional council “does not have a good track record of project control in relation to its previous attempt to build”.

Wed, 8 June 2016
ODT: Where to now for ORC and its desire for new headquarters?
By Russell Lund
OPINION The Otago Regional Council wants a new facility, in all likelihood a new building, that it owns. When the ORC last attempted to build a new headquarters in 2008, the cost was about $38million … the most expensive office buildings ever constructed in New Zealand to cater for 105 staff … The 2008 building had a floor area of 5600sq m. This equates to 53sq m a staff member, when the recently completed ECan HQ building in Christchurch has just 17sq m a staff member. Cr Kempton, who has been on the new building working party since 2011, will be aware of the cost and size of the ECan building as his company, Naylor Love, built it.
Read more

*whatifdunedin notes: Trevor Kempton is also a Director for Boards of the Dunedin City Council-owned companies Delta Utility Services Ltd and Aurora Energy Ltd.

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Thu, 9 Jun 2016
ODT: ORC considers Dowling St HQ
After a decade of controversy and delays, an Otago Regional Council committee yesterday recommended a car park in Dowling St, Dunedin, as the preferred site for the council’s new head office. […] The ORC wants a 3000sq m building, either new or redeveloped, with at least 60 car parks, and including a 240sq m council chamber. Its preferred option is now to build a two-storey building on the Dunedin City Council-owned Dowling St car park. It is understood a considerable part of the car park, at 15 Dowling St, would not be required for the proposed development, and could remain as parking.
Read more

[click to enlarge]
DCC Webmap – Dowling St car park JanFeb2013 (ORC preferred site)

Dunedin Street View [Google] – Dowling St car park following the line of the Harcourts building, off lower High St parking area, Queens Gardens

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Related Posts and Comments:
11.8.12 ODT editorial (spot on!) — ORC temporary headquarters
26.6.09 ORC headquarters [incl news items to present day]

Expensive. ORC harbourside proposal, Mason & Wales Architects (2009)

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Posted by Elizabeth Kerr

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

Harland to scale

[zoom text with Ctrl + and Ctrl -]

█ Ten years ago. Whoever typed THAT ?

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Related Post and Comments:
8.9.14 Jim Harland and the stadium MESS
27.6.14 Stadium costs $23.4144 million per annum
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope asserts…
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.4.14 Stadium: Edgar’s $1m donation (private sector fundraising)

For more, enter the terms *harland*, *farry*, *malcolm*, *athol*, *stadium*, *dcc*, *cst*, *dchl*, *dvml*, *orfu* or *rugby* in the search box at right.

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Posted by Elizabeth Kerr

*Image: Jim Harland and Sukhi Turner (via ODT 2.6.04) – supplied by Calvin Oaten

Jim Harland and the stadium MESS

Meanwhile, as Mayor Dave Cull’s council keeps up with massive spending on low priorities and unnecessaries, this comes to light:—

### ODT Online Mon, 8 Sep 2014
Stadium budget help was declined
By Chris Morris
The Dunedin City Council declined an offer of specialist help to keep its Forsyth Barr Stadium budget on track, years before the cost jumped by millions of dollars, it has been confirmed. The decision, revealed in an Audit New Zealand report from 2010, has been criticised by Mayor Dave Cull, who said it was “a function of the attitude of the management and the executive at the time”. Former council chief executive Jim Harland defends the decision, saying the council’s oversight was felt at the time to be “appropriate”. The offer was detailed in the Audit NZ annual report to the council, dated December 2010, which covered the 12-month period to June 30 that year.
Read more

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The decision to build a debt-funded stadium – of which Jim Harland, Malcolm Farry, Athol Stephens, DCC stadium councillors, ORC stadium councillors, and professional rugby cronies are GUILTY – was ALWAYS the decision to bankrupt the Dunedin City Council but more especially, and insidiously, the ratepayers and residents of ‘greater’ Dunedin and Otago.¹

The Audit NZ offer was INANE and in any case a complete waste of time.
Audit NZ is what it is, a basket case. Of sheer incompetence and hypocrisy, nationwide.

Time for a full independent forensic audit of the Carisbrook Stadium Charitable Trust, fondly known as CST, headed by Malcolm Farry. This will also entail an intimate look at the way Dunedin City Council treated CST invoices, the Council’s spending delegations, and its chief signatories.

Let’s hope somebody goes to clink before the accounting games are over.
___________________________
¹Only now are Otago power users waking up to the fact of high line charges being levied by Aurora Energy Ltd to fund subvention payments to ‘the stadium’ (see recent letters to the editor in the Otago Daily Times).
Did the killer consolidated DCC think the people of Otago wouldn’t notice?

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Related Post and Comments:
27.6.14 Stadium costs $23.4144 million per annum
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope asserts…
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.4.14 Stadium: Edgar’s $1m donation (private sector fundraising)

For more, enter the terms *harland*, *farry*, *malcolm*, *athol*, *stadium*, *dcc*, *cst*, *dchl*, *dvml*, *orfu* or *rugby* in the search box at right.

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Posted by Elizabeth Kerr

*Image: odt.co.nz (re-imaged by whatifdunedin) – Jim Harland

Stadium costs $23.4144 million per annum

Received from Bev Butler
Thu, 26 Jun 2014 21:43:05 +1200

Cover note:
According to the latest DVL/DVML six monthly reports the debt is growing not reducing – that is a concern. The $146.6 million debt was passed over to DVL, many millions were poured into servicing the interest and capital repayments for this debt but even with that happening the combined short term/long term debt of DVML/DVL now stands at $157.6 million – $11 million more! The long term debt of $146.6 million has been reduced to $138.8 million but short term debt stands at $18.8 million. It is a major concern that the combined debt is growing not reducing – and this is during the stadium’s honeymoon period.

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From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomsom; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
CC: Calvin Oaten; Grant McKenzie
Subject: Stadium $23.4144 million per annum
Date: Thu, 26 Jun 2014 21:43:05 +1200

Dear Mayor Cull and Councillors

As a result of further discussions and more information obtained through further searching Council documents Calvin Oaten and I have updated the annual stadium costs which now stand at $23.4144 million. (See attached word document). No changes have been made to the spreadsheet I sent earlier which I prepared.
There are some costs which have not been included due to the difficulty in quantifying them to the accuracy of which I would be comfortable.

This $23.4144 million figure does not include any payments which may have not been fully transparent through the Council books.
By this I mean that I understand there were approaches by Darren Burden, former CEO of DVML, to obtain payments for bills which DVML were unable to pay but which another Council Department had shown some willingness to transfer their surplus unspent funds from that Department to DVML. In that particular case, I understand the transfer did not happen. However, I have no access to information as to whether this had occurred on previous occasions through other departments.

█ Also attached are Terry Wilson’s calculations coming from a different angle but which come to $23.1 million per annum. (See attached spreadsheet prepared by Terry Wilson).

Yours sincerely
Bev Butler

Downloads:
● FB Stadium=Annual Ratepayer Costs=V2 (PDF, 9.47 KB)
● Stadium Costs $23.4144 million per annum (DOC, 30.5 KB)

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Related Posts and Comments:
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler

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Posted by Elizabeth Kerr

Stadium costs ballpark at $21.337 million pa, Butler & Oaten

Received from Bev Butler
Monday, 2 June 2014 4:10 p.m.

Message: During the presentation of my submission on the draft annual plan I was asked by Council to produce the figures to back up my claim that the stadium was costing approximately $20 million per annum. David Benson-Pope made a general statement questioning whether the claims in my submission were correct – though he didn’t elaborate when I asked him. I have followed up the Council’s request and the final figure is $21.337 million.

Please note there is a huge disparity between what the DCC has published in the Draft Annual Plan 2014/15 and what can be shown by the DCC’s own figures that are very difficult to find and interpret. The ratepayers should not continue to be kept in the dark – the real costs are more than double what is being published.

This has now been sent to the Mayor and Councillors.

Regards
Bev

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From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomson; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
Cc: Calvin Oaten
Subject: Stadium Cost $21.337 million per annum
Date: Fri, 30 May 2014 22:49:43 +1200

Friday 30 May 2014

Dear Mayor Cull and Councillors

Attached is a Word document prepared by Calvin Oaten outlining the annual stadium costs. The final figure of $21.337 million is based on figures sourced from and cross-referenced with DCC/DVML/DVL/DCHL documents.
Also attached is a spreadsheet, containing four spreadsheets, prepared by Bev Butler, showing the treatment of the $146.6 million portion of the stadium debt.

Yours sincerely
Bev Butler

Explanatory Note for Calvin Oaten’s Word document:
I have expressly not mentioned nor quantified costs of what I would term ‘collateral’ effects of the Stadium Project. These of course are very real additional financial burdens to the citizens. These are: the realignment of SH88, the forgiving of considerable debt owed the city by the Otago Rugby Football Union, the costs of the purchase and sale of Carisbrook including the holding of same in the interim period. And of course, the ongoing operational losses of DVML’s operations. These particularly are proving to be a continual drag on the financial conscience of the ratepayer. It seems that if council cannot, or will not bite the bullet and raise the “pay to use” level to at least a break even figure then professional rugby is destined to have the last laugh at our expense. It is simply not fair.
I remain, without prejudice
Calvin Oaten

Explanatory Notes for Bev Butler’s spreadsheets:
1. Sheets 1 & 2 titled “$117.541m” and “$29.059m” respectively outline the calculations for the two tranches of stadium debt outlined in the DVL six-monthly report, dated 31 December 2013. This report states that the $146.6m stadium debt has been divided into two tranches of $117.541m and $29.059m. The $117.541m is for a term of 17 years and the $29.059m is for a term of ten years with a weighted average of 6.05%pa. In the calculations I have assumed monthly compounding periods and assumed the first payment(s) were made between 30 June 2013 and 31 December 2013. If the compounding period is shorter then there would be a small reduction in the payments.
Note that in the DVL six-monthly report it states that a mortgage has been issued to pay for the two tranches. This is the first time this has been mentioned in the DVL reports so it is assumed that the mortgage was issued sometime between the last DVL Annual Report (YE 30 June 2013) and the DVL six-monthly report (31 December 2013). There is also mention of a GSA having been signed. I assume this is a General Security Agreement to secure the payment of the debt in the event of the stadium folding or the rental payments not being met. I acknowledge that I am unsure about this as I have no further information. Perhaps the Council staff could clarify this aspect.

2. Sheets 3 & 4 titled “$146.6m monthly” and “$146.6m weekly” respectively outline the calculations for the stadium debt had [regular repayments been made] from the time the stadium opened. It appears from the calculations and the DVL Annual Reports that this was not happening. If it was then the debt would have reduced to approximately $134 million. The DVL long term debt as of 31 December 2013 stands at $141.090m. So up until the mortgage was secured, it appears the debt repayments were for interest only on the bonds (and an average annual capital injection of $2m) which were issued to pay for the stadium land and other stadium debt.

[ends]

Downloads:
● Stadium Costs $21.337 million per annum (DOC, 30.2 KB)
● Stadium debt calculations FINAL (XLS, 59.3 KB)

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Related Posts and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself

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Posted by Elizabeth Kerr