Cumulative DCC rates rise; council boffins continue ruse of ‘found savings’

At Facebook:

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The council had engaged with the public well, and arrived at a figure under the 3% limit. It was pleasing to keep faith with the community, and keep that promise. –Mayor Cull

### ODT Online Wed, 17 May 2017
2.99% Dunedin rates rise
By David Loughrey
Despite an extra $100,000 of spending approved this week, the Dunedin City Council scraped in under its self-imposed 3% target for rates rises for the next financial year. The council approved a budget that will see ratepayers asked for an extra 2.99% for 2017-18. Annual plan deliberations ended yesterday, after councillors spent a day and a-half discussing spending for the year ahead. The only major changes affecting ratepayers were an extra $100,000 approved for two projects, changes that came after staff found a further $100,000 in savings. […] Mr Cull said some people had reservations about the annual plan process, which featured feedback meetings rather than formal submissions this year, before full submissions are brought back for the long-term plan next year.
Read more

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### ODT Online Wed, 17 May 2017
DCC approves $1m for artificial turf
By David Loughrey
Dunedin is set to get two artificial turf sports fields at Logan Park late this year or early next, after a proposal set to cost the city $1 million won unanimous approval yesterday. The move has delighted Football South, which had asked for the money to be provided urgently to attract available funding from Fifa. The Dunedin City Council annual plan deliberations meeting supported the proposal despite concerns from Cr Aaron Hawkins there had been no official public submissions this year, and others had been discouraged from suggesting new projects until next year’s long-term plan.
Read more

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We’re not interested in (thank god) ex Cr Jinty MacTavish’s or the Green Party’s vision (what vision). DCC’s job IS to look after the environment together with infrastructure service provision. No further strategy is needed. Note the contradictions and hypocrisy contained in this item (italics by whatifdunedin):

The council moved the decision to give the strategy $200,000 to continue work towards making Dunedin a zero carbon, healthy environment.

### ODT Online Tue, 16 May 2017
Funding set for strategy
By Margot Taylor
The environment, bus governance and pool admission fees dominated discussions at the first day of Dunedin City Council annual plan hearings yesterday. The absence of public submissions was a notable difference at the hearing. The public had a chance to voice their opinions on the 2017-18 draft annual plan at public forums and drop-in sessions from March 30 to May 1, rather than at annual plan hearings as in previous years. Dunedin’s environment strategy received 26 comments during the consultation. Mayor Dave Cull said the comments provided “a pretty clear response” about funding for the initiative.
Read more

CUMULATIVE RATES INCREASES –
NO FAITH IS KEPT AT ALL EXCEPT THAT MAYOR CULL HAS TO GO

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Councillor don’t tell us, we know Dunedin industry and manufacturing is Tops

But Rachel Elder did need to inform Mr Mayor, since it’s he who opines that [singularly ???] “weightless” manufacturing will one day make Dunedin great.
A while back Mr Mayor lauded expansion at Speight’s, Emerson’s and Greggs ….but recently, dreadfully, when interviewed by John Campbell on RNZ Checkpoint, Mr Mayor had trouble remembering these and other multimillion-dollar manufacturing investments in the good people, raw products and knowhow of Dunedin City. As well, he slipped past the convenient fact that the deputy mayor is a director of Scott Technology Ltd, and his old flower Mr McLauchlan, advisor and confidant, is the company’s board chairman.

Notwithstanding, Ms Elder thought it necessary to set herself a free writing project, an op-ed to ‘tell’ Mr Mayor, as well as advertise her paid work skills. Yes, yes, we’re all for free speech and pumping political mileage; however, we are the converted and connected, we know just how great Dunedin manufacturing is and can be —if not for DCC.

It must be said, though, that Mr Mayor’s speech at the Cadbury protest in the Octagon last Saturday was a large complimentary step up from the fatal Checkpoint phone interview.

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“Messaging that it is too expensive to export from Dunedin and that we are too far away from markets and that manufacturing is best not done here does not support the many families and individuals who work in this sector.”
–Rachel (take that Dave Cull) Elder

### ODT Online Wed, 15 Mar 2017
We have skilled workers and can make it all here
By Rachel Elder
OPINION As an employment consultant and someone who advocates for a wide range of jobs in Dunedin, I am keen for Dunedin to be advertised nationwide as a place that is great for manufacturing and production as this will supply jobs to our skilled workers. The fact is Cadbury is owned by a multinational that has caused its demise. Manufacturing can be done here well and efficiently.
Read more

Comment published at ODT Online:

ej kerr Wed, 15/03/2017 – 7:59pm #
As a city councillor Ms Elder should be overtly aware that the Dunedin City Council-owned power distribution company Aurora Energy Ltd does not and cannot offer a safe and secure electricity supply network for businesses, manufacturers and other large power users (this aside from the now obvious inability to offer safe supply to residential users). The mayor and councillors are not listening and not communicating clearly on the state of Aurora’s burnt asset. Thankfully, the Otago Daily Times has filled that void with strong news reporting. At a cost of one billion dollars to repair and upgrade the existing lines and facilities – not counting the cost of new development work required in Central Otago and Lakes District to meet growth and increasing infrastructural demand – there will shortly be a very heavy impost landing on all local businesses via rates increases. Such an unpopular debating topic at the head-in-the-sand Dunedin City Council.

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Truly fine examples of the sort of thing your grandmother and mother will tell you about Dunedin that Mr Mayor can’t:
. . . .

McMeeking Manufacturing, 123 Maclaggan St

Jaytee Baking Cups have been a household name since the 1930s, when the company was founded by a printing engineer James Thomas Williamson, hence the name Jaytee. Since acquiring the company in 1979, McMeeking Manufacturing has been the largest supplier of Baking Cups in New Zealand with exports to Australia and the Pacific Islands. Due to the dramatic increase in bakeries, cafes etc, the range of products – all manufactured in the Dunedin factory – has grown to fulfil customers requirements and follow the latest trends. Read more at https://www.jaytee.co.nz/

. . . .

### ODT Online Wed, 15 Mar 2017
Machine tool smart, versatile
By Simon Hartley
Farra Engineering’s latest $1.3 million machining kit not only has the capacity to work 24/7, but can text its progress to operators day and night. The DMG Mori “multi-pallet (work bench) horizontal machining centre”, supplied by a German-Japanese merged company, has been running for about a fortnight, at Farra Engineering, Dunedin, chief executive John Whitaker said. The DMG Mori could work on castings weighing just a few grams, on pieces weighing up to three tonnes, and castings up to 1.4cu m in size. “Being so productive, we’re going to the marketplace to fill the spare capacity,” Mr Whitaker said.
Read more

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: jaytee.co.nz – jaytee baking cups

Richard Healey on Aurora’s asset value —heralds “massive increase in rates”

Just some little things our beloved leader Mayor Cull isn’t talking about urgently with his Councillors and Dunedin ratepayers at large.

M U S T ● R E A D

Excerpts from Richard Healey’s Facebook 14.2.17:

[click to enlarge]

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Related Posts and Comments:
14.2.17 DCC not Delta #EpicFail : Wall Street falsehoods and a world class debt
11.2.17 Shudder : Aurora Energy programme leader likely delusional…
6.2.17 Delta #EpicPowerFail 9 —The Curious Case of Godfrey Brosnan and…
19.1.17 Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]

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

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Posted by Elizabeth Kerr

This post is offered in the public interest.

DCC 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. 

[teamarchitects.co.nz]

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]

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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.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images by Parker Warburton Team Architects

Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

Received from Christchurch Driver [CD]
Wed, 30 Nov 2016 at 10:21 a.m.

>> Like most of Dunedin, in the last fortnight your correspondent has been looking with equal parts of fascination and horror at the torrent of deferred maintenance disasters and associated dissembling from Delta that Vaughan Elder of the Otago Daily Times has wrought upon Aurora. Mr Elder is detonating “aged hand grenade” potheads on an almost daily basis. Delta is surely beginning its death dance.

If readers think that “death dance” is too strong a term and your correspondent is a pothead of a different type, bear in mind the killer statistic revealed when last week Mr Elder publicised the results of Delta’s staff survey : 34% of staff thought that management was “honest” which, put another way, meant that two thirds of the staff considered the management dishonest. Given the preponderance of managers at Delta, this means even some of the managers considered themselves dishonest ! When the managers of an organisation are confident that the management is dishonest, then it is definitely time to do something about it…. However, we can be sure that Deloitte are not going to do anything about it by reporting to DCC what is obvious to all readers of the ODT and What if? : That the Delta and Aurora directors are either corrupt or incompetent to the point of criminal liability under Health and Safety legislation. (Only the first in a long list of fundamental director defects). Mr Crombie can spout excuses all he wants about Deloitte’s alleged “forensic expertise”, the issue is not about forensic expertise but independence and integrity.
Your correspondent has found that accountants’ ethical considerations and field of interest stops precisely at the door of whoever is paying their bill.
Lawyers have a more muscular process and even many lawyers who operate at, shall we say, the barely acceptable margins of their profession have a healthy regard for the disciplinary processes for unethical behaviour. Added to that, there are a number of lawyers available who view taking other lawyers to task as a form of sport. Yes before you ask, your correspondent has seen this in action, and there are regularly reported cases of lawyers being punished by the Law Society.
What your correspondent has not seen, is one accountant taking action against another, or any recent examples of accountants being censured by their professional body. Accountants policing their own ? That won’t work – the cost/benefit is all out of whack. But what we have here is not just one accountant looking the other way. It is the quadruple accountant play for maximum obfuscation and back scratching. One accountant, Mr Crombie (The Godfather) has carefully selected another of the brotherhood, a young go-getter, Kyle Cameron, wanting to make his mark in the Dunedin network (Tartan Mafia if you will). The Godfather carefully explains the rules of the game. The young go-getter knows there may be some short term consequences to him but understands that he will become a corporate career corpse if the rules aren’t followed. The go-getter will question the ‘change manager’ at the bottom of the play, Matt Ballard (Capability and Risk), a former Deloitte brother and member of the tartan clan. The young go-getter will hear no evil, see no evil, and most importantly, find no evidence of deliberate underfunding of the network from 2007 to 2016. That now protects the ‘older’ accountant, the sulphurous Stuart McLauchlan. The go-getter, will report that all is under control, the issues are not new and have been known for a long time. It was just a dreadful and unfortunate coincidence that whistleblower Richard Healey resigned and “some unfortunate publicity” meant it was timely to reveal Grady Cameron’s secret plan to spend $30M on replacing poles. ‘Grady’ will be gently chided for keeping this plan so secret that no one else knew about it and it wasn’t actually in the Long Term Plan, but you know, can’t make an egg without breaking an omelette. To diffuse that particular wet bus ticket, ‘Grady’ will also be commended for his vision and determination to create a safe network out of an aged one. Nothing less should be expected of a Deloitte Young Energy Executive of the Year. (Shameless plug for Deloitte also included).
The villain of the piece will be that Bad Man, John Walsh. He neglected to properly fund the network from the 1990s until his departure in 2009. It is, most definitely, All His Fault.

It hardly needs to be said that what is needed here is not Kyle Cameron, but a lawyer or former judge, someone with some real forensic cross examination talent, who levers the facts from liars and dissemblers every day. Someone with no ties to the incestuous and stifling Dunedin mafia.

However, Mr Crombie is correct that Deloitte does have “forensic” experience – from a besieged client perspective – and that experience is very useful in subtle engineering of the terms of reference, not asking relevant or difficult questions and indulging in Key-style vagueness. Deloitte specialise in appearing to provide a report that involves some gentle chiding, and wet bus tickets, but protects the client from further scrutiny.

In the event Kyle Cameron is the mouse that roared, and actually produces a factual report detailing the disgusting complicity of the directors who created a major public safety hazard by deferring essential maintenance to allow unsustainable dividends to Council, it will be amended by his superiors at Deloitte who have a very simple choice. Do Deloitte want to continue to receive lucrative work from Council, or do they provide a truthful report ? Mayor Cull will do almost anything to avoid ratepayers knowing that they are facing imminent and large de facto rates increases in the form of exponential lines charge increases ….because, huge amounts of Aurora line charges have been squandered on bloated and self-interested management, failed property deals and of course, paying for the stadium, over many years, and for many years to come.
The Crombie and Cull playbook 1 is to get malleable and weak individuals to say what you tell them to, hacking and modifying the facts to suit. Ratepayer funds at risk ? – a trifle as light as air ! What is important is that Mayor Cull and his council’s dividend drug habit is not exposed.

>> All right, readers, stop thinking that someone put genetically modified aggression supplements in the Bells ! Proof of these bald statements you say? Very well, here is the proof….  Until very recently a firm of property management consultants completed Building Warrant of Fitness inspections for the City. Now the firm had a sudden change of ownership recently, which may or may not have had something to do with the “non-voluntary” (careful words needed here readers) ! departure of an individual from the City, not unrelated to someone at the firm, at around the same time.

It appears that the firm may have lacked the necessary, ahem, independence or distance to enable them to provide, shall we say, a more accurate picture of the Building Act compliance status of ratepayer-owned facilities, including the Dunedin Town Hall and Wall Street Mall. When the new owners of the business produced their Warrant of Fitness report this year on those facilities, there was a list – a very long list – of 360 fire rating defects in Wall Street alone. These fire rating defects and other faults dated back to when the buildings were constructed in 2008 and 2011.

(By way of confirmation, If ratepayers care to check the publicly displayed Building Warrant of Fitness at Wall Street they will find there is no certificate, and we understand there are recently lodged official information requests to get to the bottom of this matter).
The establishment, allegedly very unhappy with this burst of unpleasant fire rating revelations from the new and improved firm, may have said words to the effect of “We have 50 buildings that need inspections ! Do you understand what we mean?” …. “We want you to issue the WoF on the basis that we will get around to do some of the work when we feel like it, when we are good and ready and not before !” (We could call this the Aurora option….). The response from the new firm was basically, “We have standards and professional obligations, and we can’t certify something on that basis as you have a record of ignoring previous identified serious faults.” We understand the establishment was then invited by the new firm to employ a specialist Fire Engineer to review the list and the new firm’s report.

So what did the establishment do ? Did it immediately start work on fixing the problem ? Of course not, it sacked the new firm from all work for having the cheek to put in writing things that were deemed “inconvenient”.

Kyle Cameron, what will it be ?

Truth or Consequences?
The Money or the Bag ? (To dispose of the Delta’s directorial corpses).

Dunedin is watching and waiting.

[ends]

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Posted by Elizabeth Kerr

This post is published in the public interest.

*Image: pinterest.com – ‘It’s in the Bag’ with Teneke Stephenson (formerly Bouchier) and Selwyn Toogood, tweaked by whatifdunedin [Kyle via Deloitte]

Gerrard Eckhoff does us All a favour

Updated post
Wed, 27 Jul 2016 at 10:07 p.m.

The Dunedin City Council’s decision to develop a rates remission policy to take into account the special relationship Maori have with the land is interesting, writes Gerrard Eckhoff.

### ODT Online Wed, 27 Jul 2016
DCC rates policy may be unfair to Pakeha landowners
OPINION All Dunedin City Council ratepayers will, I’m sure, be sympathetic yet intrigued to understand the principle the council has employed that allows for rates remission for Maori freehold land and not producing revenue (ODT, 19.7.16). It is a policy that will be embraced by most, if not all, ratepayers, as it sets a wonderful precedent. Cr Hilary Calvert sensibly noted DCC staff should develop policy which included non-Maori land as well for consideration.
Read more

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

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DCC Rates history
The table and graph [go to the webpage] show the comparison between inflation and Dunedin City Council rate increases over the past couple of decades. For the first two years, the changes which followed local body amalgamation in 1989 mean it has not been possible to accurately calculate the DCC rates increase figure. Major upgrades in the areas of water and wastewater, and significant building projects, have had a big effect on DCC rates rises over the period.
█ http://www.dunedin.govt.nz/services/rates-information/rates-history

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Received from Mike

This graph is a cumulative graph of DCC rates rises after inflation has been removed, graphed over the same range that the DCC graph is, with this year’s data added (and a couple of mistakes in the DCC’s inflation rate touched up to.match the Reserve Bank’s, they are minor, and mostly cancel out).

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Posted by Elizabeth Kerr

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

Cycleways and scattered nails

### radionz.co.nz 24 June 2016 at 9:23 pm
RNZ News
Cycleway truce called as review set up
By Michael Cropp
Wellington’s beleaguered cycleway programme will not be getting the shot in the arm some were hoping for – instead it will be reviewed, refreshed and recommissioned. The outcome of that process – a ‘refreshed cycleways programme’ – would go to the Wellington City Council’s transport committee in August, the council announced today. Meanwhile, Island Bay Residents’ Association had reached a truce with cycling advocates and councillors, and was planning to start on its own consultation. A New Zealand Transport Agency report this month on the council’s ability to implement its programme stated the fallout from the Island Bay project had jeopardised the council’s other cycleway initiatives, and had eroded the public’s faith in the council. It said the council had lost the confidence of officials and ministers. Today’s announcement was intended to provide a pathway to regaining that trust.
Read more

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IDEAS !!!!

Earlier this year, nails were scattered on the cycleway and the local residents’ association threatened a rates revolt if it wasn’t dug up.

### radionz.co.nz 1 June 2016 at 6:44 pm
RNZ News
WCC told it let spokes fall off cycleway plan
By Michael Cropp
The way Wellington City Council conducted the rollout of a controversial cycleway in Island Bay has hurt its city-wide ambitions for the bike routes, an independent review has found. The report into the city’s cycleways, which was commissioned by New Zealand Transport Agency (NZTA), concluded people felt the path in the southern suburb was a poor solution that was delivered without proper community engagement and consultation. It recommended it be reviewed and modified after further community consultation.
Read more

█ Read the report commissioned by NZTA (PDF, 1.3MB)

Related RNZ stories:
Legal costs mount in battle over Southland cycleway
Modified Hutt Rd cycleway plans welcomed
Capital cycleway faces strong opposition

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Meanwhile at Dunedin…. plodding incompetence. A recent series of city council-led (earworms: Spokes Dunedin and NZTA) technical planning and cycleway construction FAILURES, at Exorbitant Expense forced on Ratepayers. All this while South Dunedin core infrastructure maintenance and upgrades received little if no DCC attention, ultimately leading to Council-fuelled multimillion-dollar flood damage. And now, the ODT Editor exhibits gut-wrenching Cheek to devoutly urge DCC to YES, Build Cycleways!

Fri, 24 Jun 2016
ODT Editorial: Learning from cycleway errors
OPINION After a long year of construction, mistakes, remedial work, wasted money and public dissatisfaction the South Dunedin Cycle Network has finally been shunted down the council’s cycleway queue. In an Otago Daily Times report this month council infrastructure networks general manager Ruth Stokes said she could not say when the South Dunedin network would be completed. The new focus, she said, was to employ the limited available resources on fixing the Portobello Rd cycleway and the central city network.

“Build them well, build them smart and build them efficiently.” (ODT)

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SPOKES Dunedin speaks out for cycling in Dunedin, New Zealand and represents everyone who rides a bike or would like to ride a bike in the city. SPOKES is a local volunteer cycling advocacy group founded in 1996 as an affiliate of the New Zealand Cycling Advocates Network. SPOKES Dunedin is an incorporated society registered under the Incorporated Societies Act 1908.

We look forward to working with the Dunedin City Council to develop a real cycle network for Dunedin. (Spokes)

God Almighty! Read this:

█ SPOKES DUNEDIN SUBMISSION ON DRAFT 2016-2017 ANNUAL PLAN
Posted on April 6, 2016 by spokesdunedin

Summary
A change of scope is needed for Dunedin’s cycling network, but it is unclear what the DCC’s change in scope actually means, and higher standard cycleways are only part of the story. Spokes Dunedin has a vision for successfully realising the cycle network. We want everyone to be able to cycle from North Dunedin to South Dunedin, out both sides of the Harbour, and through the tunnels to Green Island and Mosgiel on a connected framework of city-spanning arterial routes that are safe, direct, and convenient to use. This will focus work where there is a clear need for improved safety rather than on streets that are already relatively safe, and will create a solid initial network that can grow and develop in response to future demand. The great thing is that there already exists some cycling infrastructure on many of the routes for this initial network. Several things can be achieved by the end of this year that will help Dunedin catch back up to where it should be.

To do in 2016
1. Support NZTA to begin construction of the SH1 separated lanes by the end of this year.
2. Fix Portobello Road – it’s already been two years. We don’t need fancy landscaping, we just need the median barrier realignment so the road looks like a road and the cycleway looks like a cycleway.
3. Complete the Wharf/Roberts intersection as agreed – it’s already been two years. This intersection presents an identified safety risk on a high demand route.
4. Continue the SH88 path through the rail corridor to the railway station, thereby providing an alternative to the cycle lanes on Anzac Ave (heavy freight route and high risk).
5. Create a separated cycle lane from the intersection of Andersons Bay/Strathallan, along The Oval, to Crawford Street in place of the existing cycle lane between two lanes of fast-moving traffic.
6. Develop plans for a separated cycle lane on North Road and safety improvements for the Opoho intersection to tie in with NZTA’s forthcoming separated cycle lanes on SH1. This route is of very high strategic priority.

Introduction
Dunedin is a pro-cycling city, where a significant proportion of the population regularly cycles for recreation, transportation, or both. Year after year, cycling is one of the most strongly supported and heavily submitted-on topics in the annual plan. One of the biggest public consultation events in Dunedin history was held in 2013 regarding the proposed SH1 separated cycle lanes. In addition to widespread media coverage, NZTA and DCC staff solicited input from the public at information booths in busy locations including the Golden Center, Toitu, and the University. With over 2000 written submissions and roughly 800 survey responses, the SH1 separated cycle lanes received one of the highest response rates of any topic ever consulted on. The result was overwhelming support for the proposed separated cycle lanes. Independently, the AA undertook a survey of their local membership, with over 70% of the nearly 1500 respondents supporting the proposed separated lanes. The overwhelming public demand and support for better cycling in Dunedin cannot be denied.
In response to this demand, the City rightly undertook to develop a Strategic Cycle Network. But the South Dunedin portion of the cycle network has not delivered on the ambitions of the cycle network plan adopted in 2011. Nothing has progressed in the last year, leaving half-finished elements scattered around, with other things ripped out without consultation.
Some might argue that we should throw up our hands in despair, abandoning the possibility of future success under the fear of past failures. But others know that setbacks are par for the course when charting new waters and trying new things. Where would we be if the likes of Cook, Columbus, or Magellan had turned around after the first storm and torn sail? Those leaders stayed the course, their sailors gained experience, and they ultimately changed the world.
Read more

“SPOKES, CYCLE-SAIL OFF THE EDGE OF THE WORLD WHY NOT”

█ For more, enter the terms *cycle* and *christmas present* in the search box at right.

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Posted by Elizabeth Kerr

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

*Images: (from top) humancyclist.wordpress.com – fixed track racing | hdwires.in – nails | hbr.org – bike dog jun co-passage | en.wikipedia.org – sail wagon

Delta —Noble Subdivision #EpicStorm Heading OUR WAY

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

IMPENDING POST ALERT
CD has THE story for you……….. soon

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

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Posted by Elizabeth Kerr

*Image: thinkdelta.co.nz – delta-waste-digger tweaked by whatifdunedin

Delta #EpicFail Noble Subdivision : Councillors know NOTHING

ODT 3.3.16 (page 14)

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THIS IS SURPRISING, DO WE BELIEVE HIM

“Delta has provided regular updates to its shareholder, Dunedin City Holdings Ltd, which has in turn informed Dunedin city councillors in briefings throughout the project.” –Grady Cameron, Delta Chief Executive

IPAD BLANK, NO MESSAGES, BLUE TAPE

Delta-communications-ipad

Urban Dictionary
Blue Tape: A term used to express the ratio of service offered in an Emergency …. versus the quantity of seemingly available staff. Often considered to be greater in truth when expressed as the inverse of the service to staff ratio.

DUNEDIN CITY COUNCILLORS FEAR MULTIMILLION-DOLLAR LOSSES FROM DELTA BUT THEN WHAT IF? HEARD IT WAS DELTA DRIVING THE MORTGAGEE SALE AT YALDHURST

[timemanagementninja.com]
Blue tape is the start of something new.
A construction project. Building something new. Remodeling something existing. Producing something better than was there previously.
Blue tape represents constructive, productive activity.
So, which does your company deal in? Red or blue tape?

GRADY ????!!!!!!!

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Related Posts and Comments:
● 2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
● 1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
● 29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

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Posted by Elizabeth Kerr

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

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Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….

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

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Received from Christchurch Driver [CD]
Wed, 2 Mar 2016 at 12:50 p.m.

Your correspondent today was intending to provide his further investigations and suspicions as to what was in fact really happening with the “mortgagee sale” process at Noble, and what they are up to. Pausing here : The term “mortgagee sale” is used in the loosest possible way. Your correspondent has been at work on this, and as the trail to the mortgagee sale has unfolded in recent posts, your correspondent now thinks he has taken What if? readers down a couple of dead ends in an early post or two concerning where Delta may have ranked and what Delta / DCHL are plotting…. He made the mistake of thinking a mortgagee sale was in fact a true arms length mortgagee sale, where security holders went to the market to sell a distressed asset, at whatever price the market saw value at. That is the consequence of seeing through the glass darkly, with a group of men determined to keep secrets, but your correspondent has enlisted some help, and reckons he now has the measure of Delta’s machinations in regard to their ultimate plan.

Readers may be surprised to hear that your correspondent has no personal axe to grind with any of the public figures he has lampooned, merely that on the facts some of them are unfit to occupy the positions they do.

Over a cup of tea, it has been decided to give DCC and Delta a chance to respond to the recent posts by releasing clear information about what has happened and what plan Delta / DCC has to exit the Noble Subdivision. While any Delta / DCC disclosure will be a lot less entertaining than this correspondent (even if I say so myself….) we must sacrifice humour for accuracy at this critical juncture.

It is a critical juncture because this correspondent believes if pressure is not brought to bear on Delta / DCC now, a fait accompli will be soon presented that is going to involve more public funds at risk.

Mr Crombie will assume a sombre tone, and announce that there was no option. He will become TINA Crombie. – There Is No Alternative.

As Justice Brandeis said ‘sunlight is the best disinfectant’ and all of Dunedin deserves precision as to what is going on. Of course, as What if? readers will know, if the Delta / DCC does not respond to the kind and gentle approach (we must give them a chance, readers) there are other avenues presently being explored….

Mayor Cull’s lack of transparency is extremely concerning, and is an indicator to what is happening. If indeed there was a proper mortgagee sale process occurring with negotiations with multiple bidders unrelated to Delta / DCC, there is absolutely no reason why he could not confirm that. This correspondent thinks he cannot because it isn’t true. Blatant falsehoods have a habit of being discovered.

Your correspondent is not a proud or vain man – (well, his wife may not agree) – he and most of Dunedin would be very, very happy if he was proven to be quite wrong, and Delta’s plan did not involve any further public funds. This of course doesn’t make the previous Delta ineptitudes go away. To labour the point : The directors must be held to account.

Today, instead of the headline act, we will tease out some of the implications of the Delta decision to continue work on the Noble Subdivision in December 2009, when the variation to the consented subdivision was revealed to them and they continued on.

This was the critical decision that led to Delta backing up a truckload of dollars off Yaldhurst Rd and tipping it into the freshly excavated ground at the Noble Subdivision. (Your correspondent likes earthmoving metaphors as much as the next man).

Quite apart from the ethical and legal considerations arising from committing a major offence under the Building Code, this correspondent believes this was also a very bad financial and strategic decision.

Delta #EpicFail Noble Subdivision : Gold Band Finance —The Little Finance Company that did (Delta).

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

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Received from Christchurch Driver [CD]
Tue, 1 Mar 2016 at 4:17 p.m.

Your correspondent thought it useful to perform some financial excavation and unearth those precious first mortgage numbers that Graham Crombie and Mayor Dave Cull refuse to reveal in respect of the Noble Subdivision. They are the key to what Delta will eventually receive for its official $24M + debt on Noble. Your correspondent worked on the premise that if Delta is trying to hide something, it shouldn’t be too difficult to find at all. Your correspondent was not disappointed.

As they say in Delta out on the site, it was a good day, the ground was soft and the going was good. It didn’t take too long at all to get to the RL of the matter. (RL = Reduced Level…. excavator talk).

But inevitably, as is the fashion of these #EpicFail posts, there is evidence of continuing Delta stupidity, and yet another clumsy attempt to hide the facts from the ratepayers of Dunedin.

Your correspondent has long been curious about the first mortgagee at Noble Subdivision. Who they were, how much they were owed, what was their plan to exit out of this mess. Various entities had been mentioned in the media, but the company is Gold Band Finance. This is a tiny finance company : it has just $15.6M in TTA (Total Tangible Assets), and in August 2013 this one loan – in default – represented 21.30% of their total assets. Only 29% of the company’s lending is in property, and Noble was 70% of this. If Noble turned sour, this company was gone.

As it was, Gold Band breached their trust deed every year from 2009 until 2014 as a result of Noble, and twice had to pull its prospectus and not accept funds because the Trustee was so concerned about its position that it wouldn’t give Gold Band a waiver because the trust deed breaches were so serious.
(Memo To Delta Directors – Find that Trustee and appoint him as an auditor).

Gold Band then in August 2013 decided it needed to get most of this paralysed elephant off its back, so it could continue breathing and operating. Thus it sold part of its first mortgage debt…. to Delta.

Now the usual course of events is that when banks or finance companies are under pressure and want to sell distressed loans, they do so at a discount. That is, just as an example…. The face value is, say, a few million, the borrower is a deadbeat and hasn’t paid anything for years, the loan is in default and the neighbours are suing him for unconsented work (sound familiar ?). The seller would grab 50-60 cents in the face value dollar with both hands and “move on”, to borrow a term from the Cull lexicon.

Typically on land / development projects, a first mortgage will go no more than 40-50% of Loan to Value ratio (LVR) : But Gold Band had assessed the LVR at 71%, so even the first mortgage was far into the red zone. We will return to this in a later post.

From this, what a person of greater than room temperature IQ would say : “Dear Gold Band, I like the cut of your jib, the quality of your borrower and prospects of this mortgage. This (broken) mortgage is a bargain at full value ! Where do I sign ?!

This correspondent can hear the collective ratepayers’ prayer, “Do not say it… no, please do not say Delta paid full value” ….Readers, Delta did not pay full value. It paid more.

Delta #EpicFail Noble Subdivision : NBR interested in bidders

Updated post
Mon, 29 Feb 2016 at 7:28 p.m.

The NBR (National Business Review) on Monday, 22 February 2016, featured an article by Christchurch Bureau reporter Chris Hutching, who says:

“The latest problem [for Delta] involves the Noble Park subdivision (managed by interests associated with Apple Fields) on the western outskirts of Christchurch where some of the properties are the subject of a mortgagee sale. Tenders close on February 12 and parties related to the developers and Delta are understood to be bidders.”

And

“Another hurdle has been a series of actions by a handful of neighbours who have lodged caveats. They were the unsuccessful respondents in last year’s High Court case brought by Gold Band but have subsequently appealed. However, their cause of action may become null and void in the case of a mortgagee sale, according to another court ruling.”

█ To read the full article, go to NBR Print and NBR ONLINE subscriptions: http://www.nbr.co.nz/subscribe

Previously, What if? Dunedin sources had it that Jim Boult and Mike Coburn were back in the picture…. two names mentioned in Auditor-General Lyn Provost’s investigation and report (March 2014) on Delta’s failure with subdivisions at Luggate and Jacks Point.

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In a more recent article, NBR business journalist Tim Hunter gets stuck into Delta issues – providing a general overview on concerns he has with Delta’s position to date. More is likely to follow.

The National Business Review
February 26, 2016 Page 2 Comment – Hunter’s Corner
Tim Hunter

How council company handed millions to shaky developer
The risks of local authority over-reach are again on display in Dunedin

Excerpt (closing):

The timing, size and nature of the security deals between Delta and Noble imply the council company was advancing millions of dollars in credit to Noble to finance the work.
Delta’s accounts say one counterparty defaulted on two principal sums of $6.35m and $5m, as well as other financial commitments, although it held security in the form of mortgage and general security agreements.
The implication is that Delta is owed the eyewatering sum of $11.3m by one single customer, plus interest and penalties, with the only hope of recovery being from the exercise of its security over property in the subdivision, which may or may not be worth enough to cover it. Tenders closed on a mortgagee sale on February 12.
If so, Hunter’s Corner is amazed that a council-owned company would take on work on such terms and hopes it will in future remember that ratepayers unwillingly carry the can for its cock-ups.
It should also be a reminder that councils would do well to kill off their commercial risks.

█ To read the full article, go to NBR Print and NBR ONLINE subscriptions: http://www.nbr.co.nz/subscribe

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Related Posts and Comments:
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

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Posted by Elizabeth Kerr

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

Delta #EpicFail Noble Subdivision : If I were a rich man / Delta Director

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

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Received from Christchurch Driver [CD]
Sun, 28 Feb 2016 at 9:10 p.m.

Your correspondent has used strong words to criticise the Delta Directors in recent posts in respect of the Noble Subdivision.
“Ineffectual”, “serial head nodders”, “slumbering”.

Doubtless some of the Directors concerned will disagree, violently.

Has this correspondent been too harsh ? After all, it is easy to have 20/20 hindsight.

So today let’s look at the “WWYD” test – What Would YOU Do – in the same situation.

Your correspondent had given this some thought on this sunny Sunday, and while not a captain of industry or commerce as the actual directors, is willing to give it a go.

Yesterday’s post asked if the Directors had any ability to rein in Delta’s management when necessary. This correspondent thinks that is the key issue.

In any company the executive team is tasked with running the company day to day, meeting their various KPI’s and targets, and quite properly that is their focus. No one is perfect and there will be mistakes and duds that could not have been foreseen.

The Directors are there to provide governance and limit the risk to the shareholders. This was doubly important for Delta, as Warren Larsen said DCC companies needed to have a particularly low risk threshold, being publicly funded, and because Delta was operating in the very high risk property development arena.

A further even more basic duty is to ensure that the company operates lawfully at all times.

That is the lens through which I as a Director, would view Delta’s activities.

With that in mind, I thought how I as a prudent Director would respond when at a Board meeting in late 2009, or very early 2010, when it is assumed the Directors learned of the plan change at Noble Yaldhurst just two months after starting work in October 2009.

As a Delta Director I would know that at some point it was likely there were going to be some thorny issues ahead on Noble, particularly given the experiences already encountered at Luggate and Jacks Point.

As a professional Director I would expect the management to have a response to the problem. I would also know that ‘when things go wrong’ is where there is always potential for greater risks to be assumed so Directors would need to be especially vigilant when evaluating management’s plan to fix the problem.

As a Director I would know that management in general don’t like problems – they just want to get rid of it in the fastest way generally and focus on the business and meeting their KPI’S.

They often don’t get a good perspective on the bigger picture. That’s what the Directors are for.

So when it was explained that yes, there was an “issue” with budget costs, but the plan by the Developer was to change the subdivision layout, alarm bells would have rung and the following questions spring to mind (Answers by Delta management).

1. How much of the work has already been done ?
Answer : Not very much just general site excavation.

2. How does this affect the Resource Consent and Engineering Consent ? Answer : Noble (NIL) are or have already applied for a variation.

3. Weren’t there specific provisions for the roading and layout for this zone ?
Answer : Yes there were.

4. What can we do in the meantime while we wait for the varied consent ? Answer : We can do some site clearing but NIL have assured that the consent is a formality and are keen for us to continue.

5. But we cannot do work without a consent surely ?
Answer : Err…NIL have assured us that it won’t be a problem, the CCC are relaxed about us continuing.

6. Is there anything in writing from CCC to say this ? This seems very risky – Councils have to comply with the Building Act, they don’t have a choice, otherwise people would be doing deals with Council inspectors all over the place, and Council would be liable.
Answer : No, we don’t have anything in writing yet.

7. Why don’t we just stop work until it’s sorted ?
Answer: We’ve already set up on site and we want to make the most of the Summer.

8. Directorial discussion ensues : My position would have been : We think the risk is too great. We are already financing the subdivision and not getting paid until sections are sold. We have the upper hand here. Noble will just have to wait. Changing the roads is a major. We don’t need a court case about working on a major subdivision without a consent with the CCC to tarnish the company at this point.

Clearly, a majority of Directors did not agree with the above, and voted to continue.

A key point is that the Directors didn’t only get one chance to exit Noble. From this point Noble would have been on the agenda at every meeting, and they had many opportunities to stop work, when things went from bad to worse. Instead, it appears they took ALL those opportunities to look the other way and, and one result, apart from many millions written off, was to be a party to illegal work.

Delta may say that CCC were relaxed about working without a consent, or some other vagueness, but the Yaldhurst community and the neighbours were far from relaxed. They were never going to stand by and watch a Developer cynically try to ram through a major change on a land zoning that the CCC had just spent years formulating and with public consultation, etc.

So, readers, what would YOU do ?

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New Zealand Companies register: Delta Utility Services Limited (453486)

█ Directors: David John Frow (appointed 25 Oct 2012), Trevor John Kempton (01 Nov 2013), Stuart James McLauchlan (01 Jun 2007), Ian Murray Parton (25 Oct 2012)

More: Historic data for directors

Related Posts and Comments:
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

—

Posted by Elizabeth Kerr

Delta #EpicFail Noble Subdivision Consent : Strictly Optional

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

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Received from Christchurch Driver [CD]
Sat, 27 Feb 2016 at 10:08 p.m. Last updated at 10:32 p.m.

Your correspondent would like to issue a warning to any Dunedin ratepayers venturing into this website : What you are about to read is hazardous to your stress levels. Please fortify yourselves with a nice cup of tea and a big saucer to catch the spills.

We return to the scene of the Christchurch Delta demise today to examine a few “timing and consent” issues.

These may appear to be innocuous words designed not to cause alarm, and indeed, Graham Crombie had assured Dunedin ratepayers more than once that the whole Noble Subdivision problem is merely one of “timing”.

It is now apparent that we cannot take at face value anything that is said by Mr Crombie in regard to Noble, and readers, yet again, not far below the surface, lies another tale of absolute Delta stupidity.

First a few facts to set the scene.

Noble Investments Ltd gained Christchurch City Council consent for 304 lots in May 2009. The subdivision had a small commercial area and a variety of lot sizes.

Crucially, the roads were designed to best practice with a 25m carriage way. The carriageways were separated by a median strip and it had recessed parking bays and cycle lanes. (No cycle lane jokes please!)

Delta started work in late 2009 on the site.

Then in December 2009 NIL (yes readers, NIL by name and NIL by value and many other measures !) applied for a variation to their consent.

This was no minor variation : the commercial area increased by over 200 per cent and the eventual analysis by Abley Transportation Consultants was that the main spine road would have more than double the original vehicle movements.

Readers, please hold your cups tightly :
Delta then ignored the original consented drawings and built the subdivision’s main roads and layout according to a completely NEW plan that had NOT BEEN CONSENTED to by the Christchurch City Council (CCC).

This was not for a day, a week or a month. Delta continued to build the main collector road THAT WAS 4 METRES NARROWER than the consented roadway for at least NINE MONTHS.

Linking back to yesterday’s post your correspondent surmises that the nuclear budget explosion must have happened in late 2009, and the variation being a desperate attempt to cheapen up the subdivision by making the roads narrower and the more commercial area was to pay for the stormwater work that Delta failed to budget for.

Let’s back the truck up here : Can anyone possibly imagine what the DCC would do to a Contractor that continued to work on unconsented work on a massive subdivision for a year in Dunedin ?

The DCC prosecutes landlords for adding an extra room to their student flats, not to mention trying to close down the Saddle Hill quarry which actually has some sort of consent.

In August 2010 neighbours complained to CCC that unauthorised work was occurring on the subdivision and things then got VERY messy. The CCC did issue a retrospective consent, but the Yaldhurst community and many CCC councillors are up in arms about the decision to grant retrospective consent. The Yaldhurst community are seeking a judicial review of the decision. The situation is still not resolved.

Oh, and by the way the December 2009 variation to the consent deleted a road connecting the neighbouring land that NIL had agreed to build, which is another reason why, five years on, the project is still mired in legal action.

Yep, Delta knew how to pick em ! Delta being Delta were too stupid to realise that if NIL were happy to clothesline the neighbour whose co-operation it needed, it would have no compunction doing the same to them.

But readers, that’s not all : there’s is more utter ineptitude :

The CCC got around to warning NIL at some point that any unconsented work was done at the Developer’s risk.

And the Developer, NIL, told CCC that it continued to work because ….., OF THE AVAILABILITY OF THE CONTRACTOR.

There is no way NIL could insist that Delta break the law and continue to work.

In other words, Delta continued to work on the site because it wanted to, because it was easier than finding other work. Another possibility is that Delta felt compelled to continue because it created the whole problem with its monumental stormwater mistake. However two acts of stupidity is still stupidity.

In an act of supreme hubris, it knew the work was unconsented but thumbed its nose at the CCC and did it anyway.

This, from a CCO.

Yes the Developer, NIL are the laughing stock of the industry and have no credibility. But Delta were their enablers. Delta were stupid enough to indulge them when any other contractor would have walked away in disgust.

Words have nearly failed this correspondent. (Apologies again for the caps – stress!)

So, let us return to the directors.

What did they know and when did they know it ?

Did they ever ask management the first and most basic question on a project, “Have you got consent ?”

or, each month, “are there any changes we should know about ?”

or “any changes to our risk profile ?”

Can they read a plan ?

Did they ever visit the site ?

Do they have any aptitude at all to keep tabs and rein in the management of a civil contracting firm?

This correspondent does not believe that the management of Delta, a Council Controlled Organisation, would have kept the Directors in the dark. They are bureaucrats, after all, and would be careful to pass on anything contentious.

On Luggate and Jacks Point, the Auditor-General actually commented that the board had been fully involved and Warren Larsen noted that more transparency and communication was required at the DCC companies.

In the troubled history of the directorial shortcomings of the DCC companies, this is a new low point.

Your correspondent, also, is incredulous that the ODT had never bothered to investigate any of the specific acts of stupidity at Noble.

The information is all public record. We can be grateful to What if? Dunedin that they have provided a forum for this issue.

The Noble Subdivision is an intermodal multiple train wreck.

—

Correction received.
Sun, 28 Feb 2016 10:27 pm

At the above post, your correspondent made two errors in regard to the reduced width of the main roads on a number of items :

The reduction in carriage way was from 19.5 m to 11.5 m, a reduction of 8 m, not 4 m….

The roads reduced in width was not the main collector road : It was both the main collector road AND the loop roads…. that is, the majority of the roading.

—

Related Posts and Comments:
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

—

Posted by Elizabeth Kerr

Noble Village Subdivision, Yaldhurst Road – Site Plans Dec 2009
Source: CCC Archives – Proceedings (March 2012)

Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent Contracting

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

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Received from Christchurch Driver [CD]
Fri, 26 Feb 2016 at 11:03 p.m. Last updated Sun, 28 Feb 2016 at 2:49 p.m.

Subdivision 101 : Don’t forget the STORMWATER DISCHARGE

Firstly, your correspondent apologises for the teenage habit of using caps in text for emphasis, but recently acquired knowledge some of which is shared below, defied conventional grammar.

An aside: your correspondent was overly fulsome in his praise of Delta CEO Grady Cameron’s transparency this week, when he revealed that Delta spent $3.3M “strengthening their position” vis-à-vis the $20M + debt owed to Delta on the Noble Subdivision at Yaldhurst, Christchurch.

It would have been a lot more credible had Mr Cameron revealed this TWO YEARS AGO, when as outlined in the National Business Review today, the deal was actually agreed.

Your correspondent now knows why the cone of silence has descended upon the Delta Directors, Grady Cameron, GCFO Grant McKenzie and Mayor Cull on this matter.

Mayor Cull has claimed this is just a bad debt. With all respect to the Mayor (that he is due) that statement is simply bovine excrement.

Mayor Cull on Morning Report sounded desperate when he claimed that Noble was not the same as the Jacks Point and Luggate debacles. In this he is correct —it was worse.

It is a tale of a perfect storm of contracting ineptitude as well as directorial torpor.

It is well covered by various posts and indeed the Auditor-General’s report that Delta had severe governance problems, due at least in part to a preponderance of accountants and numbers men. Warren Larsen in his 2012 report, politely said that this led to a culture of “excessive collegiality” (lovely phrase) at the board level. A more accurate description would be the Board acted as a band of serial head nodders.

Your correspondent can report that Delta executive management, and without doubt Dunedin City Council (DCC), knew that the project was in default in 2010 for millions, if not before.

Delta started work on the subdivision in 2009. Your correspondent understands that one arm of Delta / DCC loaned money to the contracting arm so that wages, suppliers and outside contractors could be paid.

This is important because there were it seems some parameters around the loan advances from the finance arm to the contracting arm.

Delta took around two years to complete the development. This is also very instructive because this correspondent’s information is that Delta left site several times because the finance arm would not advance money. Delta’s directors knew they had a dog by the tail in 2010.

So the critical question is – why was the project in default to a degree that caused Delta to leave the site several times between 2009-2011 ?

Readers might think : What was that deadbeat developer up to that caused this default ?

Sadly : the really, really dispiriting fact is that Delta themselves appear to have been the architect of the default that led us to this utter shambles through sheer contracting incompetence.

It seems that Delta provided budgets and estimates to the developers for the subdivision work. In return for one arm of Delta advancing money to pay the other arm, Delta got to do the subdivision work at prices somewhat over market rates.

The Developer relied on the Delta numbers for their budgets to their funders and to set section prices.

The elementary and fatal mistake that Delta look to have made is that they priced the work off incomplete drawings. This was only fatal because they did not know what any other experienced Canterbury civil contractors knew, which is that the STORMWATER DISCHARGE requirements which is controlled by the Canterbury Regional Council, were becoming ever more complex and were a very big cost.

Even if the exact design was not known, a competent contractor would have made some allowance or sought further information, particularly when they were not in a competitive situation. However without knowing the exact details, it looks like the Delta staff had their blinkers on, priced what they saw on the incomplete documents, and catastrophe resulted.

While Delta destructed millions of public funds on Noble, the directors slumbered on. They either had no clue about what questions to ask management to certify if things were under control at Noble, or knew and covered it up.

From what this correspondent can ascertain, Delta started work onsite before the Canterbury Regional Council Consent was issued, which is an issue in itself that bears scrutiny. For a short while earth was being moved, roads built and things were OK.

Then while work onsite is charging on….. BOOM !!!! a NUCLEAR budget explosion emerges when it is discovered that Stormwater discharge requirements will cost $6-7 MILLION, which is MORE than Delta’s ENTIRE contract. The Stormwater discharge had to be installed for all stages which meant there was no quick recovery for Delta at the end of Stage 1.

From there, the financial future of the project and Delta’s payday was doomed. This correspondent understands that the gross realisation of Stage 1 of the subdivision was $6M LESS than the COST of the work. Releasing more stages required more advanced funds from Delta, which appears to have happened, but other legal action then held up any release of sections to market.

By starting the subdivision and agreeing to be at risk (ie forgoing progress payments until sections were sold) Delta were doomed by their own actions. Once they started, they had to keep going until it was finished, otherwise they had no chance of ever seeing any money. Their budget mistakes made sure that the developers who already were spurned by the banks and dealing with 3rd tier lenders had no chance of additional funding.

Delta continued to pour money into the project and watch while problem after problem continued to bedevil the project.

The final indignity and rebuke to Delta is that the mortgagee sale documents apparently treat the land as a bare land development and do not even consider it a subdivision, ie NO value is attached to the $11.3M of Delta work, because the completed work wasn’t built to CCC specifications. Delta must share some blame for this also – it is another example of Delta’s inexperience in the Canterbury market.

This correspondent is determined to bring the directors to account and this will be the subject of future posts.

This correspondent acknowledges that he is seeing through a glass darkly as it were in relation to the precise facts. Some figures and details may not be quite right, but the overall picture portrayed we can be confident of. Mr Cameron is urged to release the full facts about Noble and ignore the ineffectual Mr Crombie before more unpleasant facts about Noble and other Delta matters emerge.

It is clear that the past and present directors (with perhaps one exception) have erected a wall of silence to keep the Public and Councillors in the dark about the massive destruction of public funds they have presided over. They are unfit stewards.

It is now this correspondent’s opinion that the Auditor-General’s investigation of Delta is essential.

—

Related Posts and Comments:
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

—

Posted by Elizabeth Kerr

Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101

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

Updated post
Thu, 25 Feb 2015 at 5:22 p.m.

### radionz.co.nz Thu, 25 Feb 2016
Morning Report with Susie Ferguson & Guyon Espiner
Will Dunedin council’s Delta get paid for stalled subdivision? Link
8:44 AM. Critics of a council-owned company owed millions of dollars from a housing subdivision say the public has been kept in the dark.
Reporting by Otago correspondent Ian Telfer
Audio | Download: Ogg MP3 (3′ 48″)

Image: Supplied

—

Received from Christchurch Driver [CD]
Thu, 25 Feb 2016 at 9:39 a.m.

Mayor Cull on Morning Report today demonstrated a minimal grasp of commercial reality. He claimed that Delta’s position could not be disclosed because there were “negotiations” with “a third party” (a buyer).

Memo to Mr Cull : A mortgagee sale is the first secured party saying – we have had enough – make us an offer. The amount owed on the other securities is of ZERO interest to the buyer except for the situation outlined below.

What IS of great interest to the buyer, and what Mr Cull DID disclose is that there was only a single party involved. Doh !!!! The “third party” now knows that there there is no competition and the price just went down.

The only time further ranking securities amounts would affect the sale price is when there is a chance that the sale might fetch MORE than the amount of the total debt. Mayor Cull was certainly not saying that, and we can be sure if there was any remote possibility that the Delta core debt of $11.3M with the additional $3.3M being all recovered he would be shouting that from the rooftops.

Mayor Cull confirmed again that there was nothing “dodgy”, or “illegal”, it was just a bad debt and there was no finance element to the deal.

Mayor Cull can then, after the sale process is concluded, reassure ratepayers that he is correct with a full report on the fiasco.

By his own words today he is obligated to do so.

Note : This correspondent was peripherally involved in a forced sale process of a recently completed project of a similar size to Noble (Yaldhurst) Subdivision. It had none of the planning or legal issues that plague Noble’s Yaldhurst. Debt was in excess of $20M and the forced sale process yielded a sale for less than a quarter of that.

[ends]

[villagelife.co.nz]
Image: Supplied

New Zealand Companies register: Delta Utility Services Limited (453486)

█ Directors: David John Frow (appointed 25 Oct 2012), Trevor John Kempton (01 Nov 2013), Stuart James McLauchlan (01 Jun 2007), Ian Murray Parton (25 Oct 2012)

More: Historic data for directors

—

Related Posts and Comments:
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 20.3.14 Delta: Report from Office of the Auditor-General

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

—

Posted by Elizabeth Kerr

Delta #EpicFail —Noble Subdivision: Cameron, Crombie and McKenzie

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

—

Received from Christchurch Driver [CD]
Tue, 23 Feb 2016 at 10:02 p.m.

This correspondent was very interested to read today’s front page ODT article which appeared to confirm the suspicions of an earlier post.

Delta CEO Grady Cameron must be given credit for being honest and transparent, for confirming that Delta spent $3.3M last year buying more debt on the Noble (Yaldhurst) Subdivision. This is in contrast to the cabbage-like behaviour of DCHL chairman Graham Crombie, and DCC/ DCHL financial controller (GCFO) Grant McKenzie. It has hard to escape the conclusion that Mr McKenzie when questioned by city councillors must have known the amount of money Delta spent “strengthening its position”, ie buying up securities that ranked ahead of the Delta security. First, he said he did not know the figures involved, then he indicated to the ODT after Monday’s council meeting that the figure of $3M “was not accurate”, and that he “could not say” what the figure was. Simply put, if Mr McKenzie could not say what the figure was, how did he know that $3M was not accurate ? It seems clear he did know, and is dancing on the head of a pin. He could say the figure, but he would not. No one is counting the six figure amounts ! Maximum points for dissembling to that man.

This and other verbal pirouetting at a recent Council meeting where Mr McKenzie was unable to distinguish between dividends and debt repayment despite repeated questioning from Cr Lee Vandervis was also alarming. Perhaps the lure of a return to the relatively debt free safe haven of the University beckons, not subject to scrutiny of the citizens….

The other person of interest is DCHL chairman Graham Crombie, who also has trouble with numbers and counting. Cr Hilary Calvert surmised that the $11.7M already written off plus the $13.3M debt meant that Delta had an exposure of up to $24M. Cr Calvert was close, if not quite right as the $13.3M was the value of the debt Delta estimated, not its actual debt. Mr Crombie said the figure “never got that high”, and that the interest and penalties were “horrendous”. Mr Crombie’s nose is growing : Grady Cameron confirmed the core debt was $11.3M, plus $3.3M buying debt, plus the previous year’s debt write down of $10.7M which has already been attributed to Noble by Delta. These add to MORE than the $24M suggested by Cr Calvert, yet Mr Crombie was happy to sidestep Cr Calvert, Cr Vandervis and any other councillors who were keeping up – not many it seems.

We should pause re : Mr Crombie has consistently said since the Noble debacle became public that all would be well, Delta would recover its core debt and the penalties and interest weren’t of any moment – yesterday he described them as both “horrendous” and “irrelevant”. An interesting question is – why were the penalties and interest “horrendous” ? The answer is because Delta’s security was so far down the security chain as to be virtually meaningless, and as a consequence, its charges indeed were horrendous because they had little chance of ever being paid, and the rates reflect that.

This correspondent is alarmed that an accountant would describe the interest payable on a debt as irrelevant, especially when the company in question has in effect financed the entire core debt of $11.3M with either borrowed money from the DCC, or by foregoing dividends to the DCC. Mr McKenzie would certainly not agree that the interest charges are irrelevant because Delta’s loan funding has been arranged through DCC treasury at somewhere between 4-7% per year from 2012. Although, the actual figures might be 3.9% to 6.85%….

We now know, thanks to Grady Cameron, that Delta embarked upon this foolhardy venture with a security ranking somewhere between 4th and 6th in line.

The crucial question is : after this year’s debt purchases, where are they ranked now ? Delta and DCC refuse to confirm this. If they were ranked first, then it would be Delta themselves that had forced the mortgagee sale process. This seems unlikely since if Delta had control as first security, they would have no reason to hide this and the PR department would spin this as Delta taking firm and decisive action to recover their debt. Instead, Mr Cameron meekly says that Delta is a “secured creditor” and the mortgagee sale process is a “significant movement” towards payment. He doesn’t say to who….

It is also a concern why Delta invested a further $3.3M, if they still don’t have control of the project. Others have posited that they almost certainly bought the debt at a reduced value, but the key point is that they don’t have control and first security does not have to have any regard at all to the interests of lower ranked securities. This correspondent has seen at first hand several similar land deals where second ranking securities from large finance companies received zero. One can be sure that the first security will also have heavy penalty rates and other costs will emerge from the woodwork.

Delta were not some minor suppliers on the project. They supplied all of the infrastructure for the subdivision. There aren’t any other big parts to a subdivision. Typically, if the land is correctly zoned, the rule of thumb for the cost of a subdivision is a third land cost, a third infrastructure cost (Delta), and a third profit.

What is truly astounding is that there were at least three securities ahead of Delta and they knew this going into the deal. Any developer that needed three mortgages or debt securities just on the land and the resource consent process before they started work was doomed if there was any trouble, lack of expertise and unforeseen problems. This subdivision had all those, in spades. A further red flag should have been the involvement of one Mr Justin Prain, who previously touted the unique benefits of the similarly doomed 5 Mile town development at Queenstown. In fact the sales pitch was remarkably similar for both developments.

There are many questions to be answered about this debacle, but one that might unlock the whole saga is : what involvement did Murray Valentine, Mike Coburn and Peak Projects have in any entity related to the Noble Subdivision ?

This correspondent urges the other new Delta directors who were appointed after the Noble deal was entered into to show some cojones and order an inquiry. Clearly, it is just too hard for Mr Crombie.

—

This item via whatifdunedin:

### nbr.co.nz Monday May 25, 2015
Apple Fields’ directors fined $30,000 over filing omissions
By Suze Metherell
Justin Prain and Mark Schroeder, directors of the formerly NZX-listed Apple Fields, have been fined $30,000 each for failing to file financial statements for three years.
The Christchurch District Court found the two directors failed under the Financial Reporting Act to report Apple Fields’ accounts, according to Judge Emma Smith’s February judgment. The Financial Markets Authority brought the charges against the two directors after they failed to report the annual accounts for the financial years between 2011 and 2013. The FMA can seek fines of up to $100,000 for failure to report.
Christchurch-based Apple Fields, which listed on the NZX in 1986, was once New Zealand’s largest corporate orchardist and clashed with the Apple & Pear Marketing Board for the right to export fruit independently. The company moved into property development in the early 2000s, with Mr Prain appointed a director in 2002 and Mr Schroeder in 2003.
Apple Fields entered into a property development arrangement with Noble Investments in Christchurch, which was planning to subdivide land on Yaldhurst Rd into 254 residential sections as well as develop a village centre. After changes in the joint venture, Noble Investments could be considered a subsidiary and its accounts needed to be included in Apple Fields’ group accounts, according to the judgment. The Yaldhurst development stalled when Apple Fields ended up in a protracted legal battle with neighbouring landowners.
Read more

—

Related Posts and Comments:
23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 20.3.14 Delta: Report from Office of the Auditor-General

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

—

Posted by Elizabeth Kerr

Delta: Update on Yaldhurst subdivision debt recovery

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

—

Received.

From: Gary Johnson
Sent: Friday, 19 February 2016 5:18 p.m.
To: Elizabeth Kerr
Subject: 160219 Media Statement_Delta half year results – update on Yaldhurst subdivision debt recovery

Elizabeth

We see there has been interest on the What if? Dunedin… on the current position on Delta’s recovery of an outstanding debt related to the Yaldhurst subdivision, Christchurch.

I hope the attached information provides a useful update, ahead of Delta’s half year report for the six months to 31 December 2015, due for release next week.

Kind regards, Gary

Gary Johnson
Marketing and Communications Manager
[Delta Utility Services Ltd]

—

ATTACHMENT [click to enlarge]

—

Related Posts and Comments:
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
21.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 20.3.14 Delta: Report from Office of the Auditor-General

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

—

Posted by Elizabeth Kerr

Delta / DCHL not broadcasting position on subdivision mortgagee tender

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

—

Received from Cr Lee Vandervis
Sunday, 14 February 2016 at 10:43 p.m.

█ Message: An individual interested in the Noble [Yaldhurst Village] subdivision but who wishes to remain anonymous has sent me the attached photograph and the following comment. I believe that it is in the public interest for this comment to be published, as it is largely confirmed by information I have been receiving from interested parties in Christchurch over the last two years.
It seems remarkable to me that the current Yaldhurst subdivision mortgagee sale process has not been widely reported or commented on, especially as DCC’s Delta is so heavily invested in what was always a risky subdivision, a very similar scenario to the Delta Jacks Point/Luggate subdivision that lost $7-9 million.

—

Delta heavily invested in failed Yaldhurst land subdivision, Christchurch

“Taken 13 February.
These are the only residents likely on this piece of land in the near future.

There are pylon radiata right through the land.
According to someone who lives in the subdivision next door, the Noble owner agreed with the next door owner that there could be a road which goes through both subdivisions, which would allow more sections to be developed on the next door land. Apparently he reneged on the deal so as he could put more sections on the Noble land. In the event he has since died, and both NZTA and the Christchurch City Council have not been allowing the subdivision to be signed off because the roads developed on the land are not sufficient for either reading in general or for roads which a Council will take over when the subdivision is complete.

So the number of sections Noble wanted to squeeze out of the land determined the roads which are not right for the land.

It is being advertised as a block of land, without taking into account the infrastructure put in I guess by Delta, because it looks like you would need to start from scratch.

Someone shifts the cows around the land to keep the grass down.

I could not even find a gullible cow who would tell me they thought the land was worth the $10 to $15 million we are pretending Delta could get out of any possible sale, even if they were the first call on the proceeds rather than being in line after a mortgagee or 2 as well as any others with priority claims.”

[ends]

—

New Zealand Companies register: Delta Utility Services Limited (453486)

█ Directors: David John Frow (appointed 25 Oct 2012), Trevor John Kempton (01 Nov 2013), Stuart James McLauchlan (01 Jun 2007), Ian Murray Parton (25 Oct 2012)

More: Historic data for directors

Related Posts and Comments:
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

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

—

Posted by Elizabeth Kerr

DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses

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

“On almost every measure we provide a more extensive range of services for less money.” –Sue Bidrose

### ODT Online Sat, 30 Jan 2016
Dunedin rates value defended
By Vaughan Elder
Dunedin ratepayers are getting some of the best value for money in New Zealand, Dunedin City Council chief executive Sue Bidrose says. In response to questions from Cr Mike Lord during this week’s draft annual plan deliberations, chief executive Dr Bidrose said its residential rates – which in the 2015-16 year averaged $1996 per household – were in the lowest quarter in New Zealand and “certainly” the lowest among large cities.
Read more

█ ODT: Mayor defends rates increase

█ At Tuesday’s pre-Draft Annual Plan meeting Cr Hilary Calvert put a direct question – on the public’s behalf – to the group manager water and waste services about the mudtanks at South Dunedin, referring to these as “the hippopotamus in the room” (or some other water-based mammal)…. The question was circumnavigated and passed to the new group manager transport who similarly went sailing. Link

█ Delta in 2015 paid DCC a dividend of $2.5M. Without this in future years there will be significant rate rises each year. –Christchurch Driver Link

—

One for SB, Dave, Councillors and Staff…
shimmers, lightness, fairy-like proportion, ratings, foils to decorum, tens, the completely ethereal

EllieGouldingVEVO Published on Dec 9, 2015
Ellie Goulding – Army (Live from the Victoria’s Secret 2015 Fashion Show)
From the new album DELIRIUM [latest release]
When I’m with you, I’m standing with an army….

[We’re required to be wowed.]

—

Related Posts and Comments:
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
28.1.16 New Zealand local government T-shirt #haze #corruption
25.1.16 DCC: South Dunedin Integrated Catchment Management Plan (ICMP)
21.1.16 Delta #EpicFail —Yaldhurst Subdivision
● 21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
19.1.16 Listener 23.1.16 (letter): South Dunedin #Jun2015flood
16.1.16 NZ Listener 16.1.16 (letter): South Dunedin #Jun2015flood
12.1.16 Stone the freaking crows #SurfsUp #SeawallNightmares #Dunedin
11.1.16 Un hôtel. Dunedin.
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
8.1.16 Jafas, come hither…. it’s alright here if warped
5.1.16 Hammered from all sides #fixit [dunedinflood Jun2015]
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

—

Posted by Elizabeth Kerr

hoopla words….

TheWeekndVEVO Published on Dec 9, 2015
The Weeknd – Can’t Feel My Face (Live From The Victoria’s Secret 2015 Fashion Show)

TheWeekndVEVO Published on Dec 9, 2015
The Weeknd – In The Night (Live From The Victoria’s Secret 2015 Fashion Show)

last word (valediction)

EllieGouldingVEVO Published on Dec 9, 2015
Love Me Like You Do – From “Fifty Shades Of Grey” (Live From The Victoria’s Secret 2015 Fashion Show)
From the new album DELIRIUM
Yeah, I’ll let you set the pace ’cause I’m not thinking straight

ODT 2.1.16 | Passing Notes by Civis #Poverty #NZ

Excerpts from today’s Otago Daily Times, message for 2016.
‘Poverty mission poses big questions’ (page 29). Perhaps the best Civis has written in a long while.

—

tonybennettVEVO Published on May 9, 2014
Tony Bennett, Natalie Cole – Watch What Happens
Music video by Tony Bennett & Natalie Cole performing Watch What Happens. (C) 2012 Columbia Records, a divison of Sony Music Entertainment
Music: “Watch What Happens” by Tony Bennett & Natalie Cole (iTunes)

Natalie Cole (February 6, 1950 – December 31, 2015)

—

Posted by Elizabeth Kerr

Bloody DCC —superlative cost blowout #cycleways #SUCKS

#GreaterDunedinNOTsustainable
#DaveCullNOTsustainable
#KateWilsonNOTsustainable
#JintyMacTavishNOTsustainable
#CouncilStaffManagersNOTsustainable

No photograph of Kate in lycra could be found. The Mayor and MacTavish were both camel shackled when our photographer called (say no more).

—

### ODT Online Thu, 22 Oct 2015
Dunedin cycleway cost blowout
By Craig Borley
Building Dunedin’s cycleways could cost “three to four times” more per metre than first thought. That news was delivered to the Dunedin City Council’s infrastructure services committee this morning by the council’s infrastructure and networks general manager Ruth Stokes

The committee voted to continue with the rollout of the network, ensuring the design and finish were of the more expensive, higher quality option.

Read more

█ Council Reports available at What if? via (12.10.15)https://dunedinstadium.wordpress.com/2015/08/22/dcc-cycleways-now-tied-to-more-urban-design-spend-after-rehash-numero/#comment-66330

Sandy Graham advises there is one amended page (item 6 ph 6.8) – a map was altered for clarity. The website copy will be updated with the amended page.

—

Posted by Elizabeth Kerr

*Image: [screenshot] youtube.com – Cycling Training Program – Crashing on a bike

Cr Kate ‘Cycleways’ Wilson —(disingenuous) fails constituents

█ Cr Kate Wilson says cycleways will bring myriad benefits to Dunedin.

ODT Online Sat, 25 Jul 2015
Why Dunedin is investing in cycling
By Craig Borley
Dunedin appears divided over the cycle network. Some see it as unnecessary. Others see it as vital. ODT reporter Craig Borley spoke to Dunedin city councillor Kate Wilson, chairwoman of the infrastructure services committee, about why the city is investing in cycle infrastructure.
Read more

—

█ The Dunedin City Council is sleep-walking to yet another poorly thought out cycleway project. (ODT)

### ODT Online Thu, 20 Aug 2015
Time to put brakes on cycleway
By Hilary Calvert
OPINION Somehow, the Dunedin City Council has been so beguiled by the gift-horse that is the New Zealand Transport Agency (NZTA) that it seems to have completely forgotten to carry out its proper role of looking after the interests of the citizens of Dunedin in respect of the State Highway 1 cycleway plans.
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ODT 26.8.15 (page 8)
– shot in a half-lit Dunedin café off the beaten cycle paths

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█ Proposed: Separated cycle lanes to run along north and south one way routes, between Botanic Garden and Queens Gardens.

### ODT Online Thu, 10 Sep 2015
Dedicated cycle lanes get closer
By Craig Borley
Nationally-funded separated cycle lanes along Dunedin’s one way system are now two steps closer as the project moves swiftly through the New Zealand Transport Agency machine.
Read more

NZTA said it had resolved to:
• Incorporate high turnover short term parking for businesses, particularly those reliant on short stay kerbside parking and deliveries
• Incorporate medium term parking close to the hospital and museum.
Updated plans were now being prepared to show where the parking would be included. The plans will be available for public comment at the end of the month.

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ODT 11.9.15 (page 16)

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Related Posts and Comments:
● 3.9.15 Dunedin support for extensive cycle lanes and Free bicycles
● 22.8.15 DCC cycleway$ now tied to more ‘urban de$ign’ $pend….
● 18.7.15 DCC Cycleways: SEEING RED, apology NOT accepted
● 10.4.15 DCC cycleways propaganda continues #SpendSpendSpend
20.3.15 DCC Shame: First, John Wilson Dr … now Portobello Rd cycleway
11.2.15 Dunedin Cycleways: Pet project staff, ‘entitlement’? #irony
3.12.14 Cycling at Dunedin —boring debate, network spending continues #DUD
22.5.14 DCC Transportation Planning —ANOTHER consultation disaster
6.5.14 Roading network screwed by council staff
● 14.2.14 DCC: Broadband AND bicycles #fraudband speed
14.1.14 DCC: Hospital area parking changes #cyclelanes
5.1.14 Norman Foster: SkyCycling utopia above London railways #ThinkBig
24.12.13 Daaave’s $47 million Christmas present to Jinty. We’re paying.
4.12.13 Dunedin cycleways: Calvin Oaten greeted by DCC silence
17.11.13 Dunedin cycleways: Calvin Oaten’s alternative route
17.11.13 Cull and MacTavish… “Have you fixed the debt crisis?”
14.11.13 Cycle lane explosions and puncture kits (SPOKES grenades launch)
8.11.13 Dunedin Separated Cycle Lane Proposal [how to make a submission]
29.10.13 DCC (EDU) invents new job! [GigatownDunedin]
19.10.13 Cycle lobby games and media tilts
24.9.13 Mediocrity and lack of critical awareness at DCC [council reports]
8.7.13 Bloody $tupid cycleways and Cull’s electioneering… [route maps]
28.3.13 DCC DAP 2013/14: Portobello Harington Point Road Improvements
26.2.13 DCC binge spending alert: Proposed South Dunedin cycle network
22.2.13 DCC: Council meeting agenda and reports for 25 February 2013
31.1.13 Who? 2010 electioneering
21.11.12 Safe cycling -Cr Fliss Butcher
5.11.12 DCC, NZTA: Cycle lanes controversy

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Posted by Elizabeth Kerr

Please Mayor Daaave, to pasture NOW

Better that than the knackers yard —we have some notion of human rights! But let’s get rid to back paddock. Some natural justice.

Daaave’s opinion piece in today’s ODT is crippling, rustling with financial ineptitudes, and no clothes.

Sadly, his gratuitous fiction is simply No Match for the lavish, colourfully illustrated ODT love fest with Councillor Lee Vandervis, shown up in the Mix magazine spread on Saturday.

The small town of Dunedin was last murderously accosted by Malcolm Farry and Thugby. Here is yet another short man taking the Citizenry OUT: Mr Death Cull.

No-one seriously believes Daaave’s askew bleats given the state of DCC finances. The debt graph following the council’s recent Long Term Plan decisions should be quickly redrawn by independent honest people, and widely publicised.

Oh dear. Oh dear. Soon there will be no-one left capable of paying the rates, or shrinking council debt. Autumn has passed, along with the last fig leaf.

OPINION
Investing in our city necessary to attract the people we require
Dunedin must invest or wither, writes Mayor Daaave Cull. Dunedin’s aspiration is to be one of the world’s great small cities.
http://www.odt.co.nz/opinion/opinion/344498/investing-our-city-necessary-attract-people-we-require

photonz at ODT gives a very fair summation. The tight echo from all round.

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Before final LTP decisions in May 2015

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Posted by Elizabeth Kerr

Ode to sickly DCC

Received.
Tue, 19 May 2015 at 12:25 p.m.

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Posted by Elizabeth Kerr

*Text image: whatifdunedin