Tag Archives: Ratepayers

DCC not Delta #EpicFail : Wall Street falsehoods and a world class debt

Received from Christchurch Driver [CD]
Tue, 14 Feb 2017 at 9:16 a.m.

Readers 

We are at an interesting time in our local history. Your correspondent like hundreds of others was busy cleaning up yesterday, after what NIWA described as a fairly standard thunderstorm where just 13.6mm of rain fell. 

Also like hundreds of others no doubt, the question in the mind of your correspondent as he dutifully mopped, was : What is the next public asset to be exposed as poorly run, badly maintained and starved of funds ? 

Never before have the executive few lied so comprehensively about the true state of so much degraded public asset. Never before has so much public asset been destroyed by the actions of those few, as Winston might have said. 

Economists your correspondent is familiar with would call this the “tragedy of the commons”. We await the “macro-prudential” responses from Central Government. With the stupefying level of underfunding for DCC drainage and other underground services identified by the Auditor-General, coupled with Aurora Energy’s $1B deferred maintenance and capital work, plus the existing DCC debt, there is around $3B that will need to be extracted from ratepayers and power consumers over the next 30 years (see the Dunedin City Council Infrastructure Strategy). Dunedin has achieved its dream as a world leading small city – of debt per ratepayer. Dunedin will be broke beyond comprehension with the policy of 3% annual rises. The 3% limit is a mirage. Rate rises will be much, much more. Not this year, but quite possibly before the next election; if this council does not address the looming crisis there is the increasing possibility of the removal of the council and appointment of a commissioner. 

It seems that every week brings some fresh disaster or new development that the DCC attempts to cover up. 

Yesterday was a small but telling episode. David Loughrey of the Otago Daily Times kindly confirmed what your correspondent mentioned some months ago, that the DCC had terminated the services of Logic FM because the company would not look the other way while the DCC wilfully failed to fix hundreds of obvious fire rating defects at two of their major assets. 

Mr Kevin Taylor wrote that the council [fired] Logic because the company had been “interpreting code compliance…..beyond that required by the law”. Logic publicly scoffed at this saying – correctly – that the code is “relatively black and white”. 

What actually happened is that as well as the uncompleted fire penetrations, there is a case of simple DCC incompetence, which was only hinted at by infrastructure networks general manager Ruth Stokes in the ODT article. Here are the facts : The Wall Street mall required daily inspections of certain of its building safety systems. The DCC did not want to pay outside consultants to do this work. Fair enough, said Logic, we will train your staff to inspect the systems and they will then sign off a daily inspection sheet, which Logic as the IQP (Independent Qualified Person) need to sight every month. 

wall-street-mall-interior-teamarchitects-co-nz[teamarchitects.co.nz]wall-street-mall-logo-1wall-street-mall-exterior-wallstreetmall-nz-1

Month after month, the monthly reports could not be signed off because no one had completed the daily sign-off sheets. There were offers of more training to the apparently mule-like staff responsible but City Property could not be bothered to do it properly —and thought they could get away with not doing these daily inspections by appointing another more compliant IQP in-house and seeking cover with a further fire report by Beca. 

It is very relevant that after sacking Logic FM, and commissioning the report from Beca, DCC refused to provide a copy of the Beca report to Logic. Logic had asked repeatedly for the report to see what the alleged areas of “over compliance” were. 

It is ‘madeira cake to margarine sandwiches’ that there were no areas of over compliance, and but for Elizabeth Kerr’s LGOIMA request and latterly, the ODT, City Property may well have gotten away with inaccuracies! 

As it is, your correspondent sees only static for Mr Taylor in the DCC crystal ball. He is merely the latest in a line of unlamented DCC property managers, including Robert “Hydraulic” Clark, and Dave McKenzie.

Ruth Stokes also needs to very careful about stepping into this mess – and dissembling to protect Mr Taylor. Stating that “things could have gone a bit better, but they’ve all been addressed” does not fool anyone. Mr Taylor may have have fantasised to Ms Stokes that “all” the fire rating faults were fixed but remember your correspondent advised there were hundreds of faults, not just a few faults in one single wall as has been pretended. There is no way all the faults have been fixed. 

This is what Richard Healey would describe as the Delta dishonest reduction defence…. no, not a 1000 dangerous poles without red tags, but perhaps there are just a few…. and now we learn on that fiasco, that the ‘new’ Delta plan, unannounced to the region’s mayors, is that they can be magically restored to full strength by yet another re-classification.

Chief executive Sue Bidrose started her tenure with a promise of greater transparency and openness (read “honesty”) that was sorely needed. There was some early progress, but the transparency project appears a priority no more.

With the financial storm clouds assembling over the DCC that the chief executive cannot fail to be aware of, some honesty about the actual costs the DCC faces over the next decade is needed. It ranges from the small – just how much will it take to fix Wall Street mall to the $1B existential Aurora problem. The CEO and her staff have been invisible on this critical issue, instead producing reports of risible fantasy such as last year’s effort that valued Delta at over $50M, and Aurora at over $200M. Facing up to an austere decade is the only way that Dr Bidrose and Councillors will avoid having their careers and reputations destroyed by the appointment of a commissioner. 

[ends]

Council Documents:
DCC Infrastructure Strategy
DCC Long Term Plan 2015/16 – 2024/25
Audit Opinion – Independent auditor’s report on Dunedin City Council’s 2015-25 Long‑Term Plan. Author: Ian Lothian, Audit New Zealand on behalf of the Auditor‑General, Dunedin NZ.

ODT Stories:
14.2.17 Councils, Aurora poles apart on ‘removing risk’ definition
13.2.17 Without warrants for years
11.2.17 Aurora affected by pole, staff shortages
8.2.17 Action by Delta decried
29.12.16 Director for $30m pole project
2.12.16 Resignation blow to pole work

Related Posts and Comments:
22.1.17 DCC LGOIMA Response : Wall Street Mall and Town Hall Complex
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ For more, enter the terms *delta*, *aurora*, *grady*, *wall street mall*, *richard healey*, *steve thompson*, *dchl*, *epicfail*, *epicpowerfail* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images by Parker Warburton Team Architects

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Filed under Aurora Energy, Business, Central Otago, Construction, DCC, Delta, Democracy, Design, Dunedin, Economics, Education, Electricity, Events, Finance, Geography, Health, Infrastructure, LTP/AP, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, Site, Structural engineering, Travesty, What stadium

Baron de Gurgelaars on “Poles”

delta-needs-more-newyorker-comDelta needs more

Received.
Tue, 22 Nov 2016 at 7:56 p.m.

Winston said it best, without the poles we could not have won World War One.

He was right of course.

Poles allowed the allies to have rallying points around which the Anzacs could rally before running at the German machine guns with impunity.

Poles were helpful during World War II when they proffered their land to soak up the blitzkrieg, thus saving Russia and England who were then stuffed up by lend-lease so that all of their assets were owned by good old USA.

Poles have been helpful in Dunners as they kept the sand on the beach at St Clair until the DCC came up with an alternative to get Rid of the beach. After all, why should St Clair residents enjoy themselves at the beach whilst we are working diligently on Trade Me, stealing cars, conversion, contract fraud and obfuscation?

Our Poles are a critical element in our ambition to increase wages by 10%, increase staff numbers at the DCC by 10% and increase rates by over 10%. I mean you have all voted at the website supporting our plans to stuff Dunedin, you have all voted in the absolutely useless six existing councillors. And me! You’re going to get it-

More shops empty except in buildings owned by us.
No extra Hotel rooms unless they are based on less carparks for Dunedin ratepayers.
We will support Compass- After all how can we differentiate Compass Hospital food for the needy from perks for councillors?

Look we are here to help you.

To Help you to contribute more to rates, parking fees, and any other robbing scheme to boost our personal and collective DCC incomes at your (The ratepayers) expense.

The Baron de Gurgelaars

[ends]

Posted by Elizabeth Kerr

This post is offered in the public interest.

[you think this is a spoof ?]

*Image: newyorker.com – (civil) forfeiture

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Baron de Gurgelaars on “Accountability” @ #DUD #Delta

bender-futurama-cartoonswallpapers-net-1

Received.
Tue, 22 Nov 2016 at 7:34 p.m.

The Pimp from hell is back.

Le Baron de Gurgelaars on de French political system.

Le Interviewer: a qvestion

Le Cull de Mare- Cur, can you pls advise your council’s response to the suggestion that Delta is not involved in electricity generation.

Le Cull de Mare- Ve vill not find any vone guilty.

Le Interviewer- During 2016 your council has stuffed up on flooding, mud tank cleaning, paying Delta for a truck that did not exist in Dunedin, reducing the value of all houses in South Dunedin and not charging for water takeoff on the peninsula. What do you have to say about diese errors of judgement.

Le Cull de Mare- Ve vill not find any person guilty, particularly me.

During 2016, You personally blamed the flooding of South Dunedin on climate change. Do you believe that heavy rain did not fall on Dunedin prior to man’s intervention?

Le Cull de Mare- naturlich- Dunedin was a Desert.

During 2016- Fulton Hogan was exposed for not having any vehicle capable of cleaning the mud tanks and thus completing their mud tank contract. Did you consider a drawback of over $200,000 on their unperformed contract?

Le Cull de Mare- Nein, how can DCC staff get their Christmas bonuses without recourse to increase in rates unless they are allowed contractual licence (see poetic licence)

Le Interviewer- Today Cull de Mare, some properties in South Dunedin particularly Victoria street had reduced QV values. Whilst that will reduce their rates by 1%, their valuations can cause mortgagee sales by banks, increased weekly payments apart from divorces and suicides.

Le Cull de Mare- vot are you saying, you blame me for naming climate change for causing these personal catastrophes, you tink I am ze cause, vot u think I vant diese resulten?

Do u think I am Adolf Hitler?

De Interviewer-

Not Yet.

But power corrupts and absolute power corrupts absolutely.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: cartoonswallpapers.net – Futurama Bender the Pimp

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Johnstone on ORC report : ‘The Natural Hazards of South Dunedin’ (July 2016)

The Natural Hazards of South Dunedin – July 2016 [read online]
Otago Regional Council
ISBN: 978-0-908324-35-4
Report writers:
Michael Goldsmith, ORC Natural Hazards Manager
Sharon Hornblow, ORC Natural Hazards Analyst
Reviewed by: Gavin Palmer, ORC Director Engineering, Hazards and Science
External review by: David Barrell, Simon Cox, GNS Science, Dunedin

Received from Neil Johnstone
Sun, 29 Aug 2016 at 8:17 p.m.

Message: Misinformation on the causes of the June 2015 South Dunedin flood have abounded since the event. As if the victimised residents haven’t suffered enough from others’ inactions (before and during the event), they are now being subjected to a hazards discovery process whose vigour appears to be exceeded only by its own recklessness. Following are a commentary of the hazards approach adopted by the Otago Regional Council (ORC), and a summary of my investigations into the flood event that I commenced after the publication of Dunedin City Council’s first flood report back in November 2015.

You can download Neil Johnstone’s report or read it below (formatted slightly differently to suit the WordPress template).

█ Download: A REVIEW OF ORC REPORT THE NATURAL HAZARDS OF SOUTH DUNEDIN (1) (PDF, 587 KB)

AN APPRAISAL OF RECENT REPORTING OF SOUTH DUNEDIN HAZARDS

N.P JOHNSTONE, BEng (Civil), MIPENZ

1. Introduction

There is some irony that DCC and ORC should be planning “drop in” sessions for residents in respect of South Dunedin hazard issues during September 2016, some 15 months after the major flood. The prime cause of flooding in June 2015 was DCC’s failure to maintain its infrastructure (not just mudtanks), and its failure to operate its pump stations to their intended capacities. The subsequent spread of misconceptions (i.e. groundwater levels, rainfall significance etc) surrounding the flood causes was at least partly due to inaccurate ORC analyses and reporting.

Repetitive and new doubtful information emanating from ORC via its latest report has been noted. Presentations and an over-simplistic video production have been observed. A footnote covering these observations is included at the end of this appraisal.

Long-delayed DCC reports on causes of the South Dunedin flooding have already been strongly criticised by the author. Specifically discredited are misrepresentations of sea level, groundwater and rainfall ranking. Accepted now by DCC as factors (somewhat grudgingly, and depending on the audience) are mudtank blockage and Portobello Road pump station failures (plural); still to be fully acknowledged are the failures at Musselburgh Pumping Station.

Attention is now turned to significant parts of hazard reports produced by the Otago Regional Council and utilised by DCC.

2. Coastal Otago Flood Event 3 June 2015 (ORC, published October 2015)

This report deals with a wider area than South Dunedin. It is apparent that ORC staff never visited the flooding areas of South Dunedin on 3 June, but took advantage of fine weather to take some water level readings the following day. The opportunity for useful progressive surface water level recording was thus lost. Levels were collected at some 150 points on 4 June. ORC’s main conclusion was that “localised variations in topography were probably the main driver of flood depth”. Or, put another way, water depth was deepest where the ground was lowest. This seems hardly surprising, and even trivial. No attempt was made to explain the photographic images presented of extensive ponding remaining well after the rains had ceased. The phenomena of blocked mudtanks and unutilised pumping capacity went seemingly unnoticed.

The report does usefully reference ORC’s four borehole recorders of groundwater, but makes the somewhat misleading assessment that groundwater levels were “elevated” prior to the rainstorm. This misinformation was seized upon by agencies such as DCC and the Office of the Parliamentary Commissioner for the Environment to highlight climate change impacts.

Having obtained the actual groundwater level data from ORC via the LGOIMA process, the author was able to reveal this “groundwater fallacy” in reviews from February 2016, but it was not until the publication of NZ Listener’s article (June 11-17, 2016) entitled ‘FLOOD FIASCO’ that ORC admitted that pre-flood groundwater levels were in fact “just a little bit above average”. ORC now seems intent on resurrecting this fallacy.

The ORC report fails to address the real and key issues of pumping station failures (Portobello Road and Musselburgh), or comparisons with much lesser flood impacts in the larger rainfall event of March 8/9 1968.

The report states that the 2015 24-hour rainfall was the largest since 1923. This was patently incorrect, but again was utilised by DCC to divert blame from their role in the disaster.

3. The Natural Hazards of South Dunedin (ORC, published July 2016)

The report states unambiguously in its Opening Summary that the major flooding of June 2015 was “a result of heavy rainfall, surface runoff, and a corresponding rise in groundwater”. By now, most people are aware that the causes of the flooding’s disastrous impact were failure to optimally operate pumping stations, failure to clear mudtanks, and failure to deploy staff to key areas during the event. Again, none of these factors is addressed in ORC’s report.

The report presents a table on its second page entitled “Factors Which Can Influence Flood Hazard”. Examples of exaggerated negativity include:

1. Heavy Rainfall:
– Many recorded instances of rainfall leading to surface flooding.
– Heavy rainfall events have occurred frequently over the last decade.

Comment: These conclusions do not appear to be supported by the report’s text, and are vague, factually challengeable and alarmist. Prior to 2015, no major flooding had occurred in South Dunedin since 1968, and even that was minor by comparison.

2. Sea Level:
– Groundwater level fluctuates (by up to 0.5m near the coast) on a twice-daily cycle in response to normal ocean tides.

Comment: All of South Dunedin is near the coast; most of the area does not experience such large fluctuations. This should have been made clear by the inclusion of groundwater data from all 4 ORC sites across the plain, not just from Kennedy Street.

3. Seismic:
– Large earthquakes could result in increased flood hazard on the South Dunedin plain, due to liquefaction-related land subsidence or direct, sudden, changes in land elevation relative to sea level.

Comment: All areas of NZ have some susceptibility to earthquake damage. Dunedin is amongst the areas at lowest risk; no incidences of even minor liquefaction have ever been reported in South Dunedin, and little or no clearly liquefiable materials have been identified (Refer GNS, 2014*). Continue reading

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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.

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]

ORC 22.6.16 Council Agenda Part C Item 7 pp68-70

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]

Posted by Elizabeth Kerr

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

18 Comments

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

ORC offices, Stafford St [abl.co.nz] 1█ 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.

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.

****

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 carpark JanFeb2013 (ORC preferred site) 1DCC Webmap – Dowling St car park JanFeb2013 (ORC preferred site)

Dunedin Street View [Google] - Dowling Street Carpark from SH1, Queens Gardens 1Dunedin Street View [Google] – Dowling St car park following the line of the Harcourts building, off lower High St parking area, Queens Gardens

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]

ORC offices proposed, Kitchener St - sketch render by Mason & Wales Architects (2009) 1ORC offices proposed, Kitchener St - sketch render by Mason & Wales Architects (2009) 3Expensive. ORC harbourside proposal, Mason & Wales Architects (2009)

Posted by Elizabeth Kerr

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[ends]

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

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

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

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

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

Posted by Elizabeth Kerr

Image: pinterest.com – turnip

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