Tag Archives: Restructuring

SDHB change management: 59 roles proposed to go

Updated post
Sat, 29 Apr 2017 at 6:37 p.m.

At Facebook:

### ODT Online Fri, 28 Apr 2017
Roles dumped in SDHB proposal
By Eileen Goodwin
The roles of chief operating officer (COO) and deputy chief executive will be dumped in a sweeping management restructure proposal unveiled at the Southern District Health Board. In the formal document released yesterday, chief executive Chris Fleming said a new director of specialist services would replace the COO role. The proposed restructuring would not slim the executive leadership team. Its number would increase by one to 13 (including the chief executive), but there is quite a bit of change in the make-up of the roles. The brunt of job losses would be borne at the next two levels of management.
Read more

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Restructure proposal appears to break up a joint decision-making model which involves senior doctors and nurses.

Sat, 29 Apr 2017
Proposal devastates nurses
By Eileen Goodwin
Nurses are “devastate” by the proposed restructuring at the Southern District Health Board. New Zealand Nurses Organisation Dunedin organiser Lorraine Lobb said the proposal removed budgetary and operational control from nursing leadership. There would be fewer nurse management roles, and those who remained would have less say in decision-making, Mrs Lobb said. “We’re quite devastated by this proposal. We’re all about safe staffing, [and that] requires nursing leadership,” she said. The proposal would see a net loss of 23 management positions. It was unclear how many were nursing roles. […] The new chief nursing and midwifery officer would have no control over budgets as their underlings would only report to them on professional matters, she said. […] The proposal also removes operational responsibilities from the board’s top doctor, the chief medical officer. On operational matters, medical directors would report to the director of specialist services, rather than the chief medical officer.
Read more

█ SDHB to consider submissions before announcing the final structure in June.

Related Posts and Comments:
8.4.17 Questions over Council’s Dunedin Hospital SOS campaign
6.4.17 ODT editor comments strongly #tick —Dunedin Hospital rebuild
27.3.17 Site Notice #DunedinHospital
26.2.17 Dunedin Hospital Redevelopment
6.2.17 Let the Ombudsman recommend for democracy at SDHB
24.1.17 SDHB/Govt : Physio Pool GRIEF
9.1.17 Audit NZ admonishes commissioner Grant and SDHB #Health
18.12.16 DCC set to take away CBD car parks without Economic Impact research
20.11.16 Delta at Dunedin Hospital #worseluck
7.11.16 SDHB #FAILS with Healthcare Communication and Governance

█ For more, enter the terms *hospital*, *sdhb* and *swann* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

9 Comments

Filed under Business, Dunedin, Economics, Finance, Health, Hospital, Media, New Zealand, People, Politics, Public interest, SDHB

Why would DCC shaft its own company instead of investing in its change and development ?!

ODT 20.4.17 (page 28)

At Facebook:

Related Post and Comments:
11.3.17 How Safe Are We/Our Businesses with the Corporate Disaster that’s Aurora, owned by DCC ? #reliability

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

Waste Management NZ Ltd is Chinese owned

16 Comments

Filed under Business, DCC, DCHL, Delta, Dunedin, Economics, Finance, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Politics, Project management, Property, Public interest, Resource management, Site, Stadiums, What stadium

Famous Fat Bros’ Aurora/Delta news trickles in…. but can the sisters divorce

### channel39.co.nz Wed, 29 Mar 2017
Delta and Aurora Energy to separate
About 95 Delta employees are expected to transfer to Aurora Energy by mid-year as the two companies separate. The business divorce is one of the recommendations from an independent review by Dunedin City Holdings Limited. Delta and Aurora Energy Chair Steve Thompson says they expect no redundancies from either business. Delta will employ just over 500 staff following the transition. Aurora Energy will be a network company with network renewal as its priority, while Delta will provide electricity distribution, green-space and solid waste services.
Ch39 Link

Review of Aurora Energy Limited / Delta Utility Services Limited – Network Safety Concerns (December 2016). Deloitte.

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### radionz.co.nz 9:22 pm on 29 March 2017
Dunedin’s Aurora Energy to take on Delta workers
Almost 100 employees from Dunedin power lines company Delta will transfer to its sister company Aurora Energy as the two firms separate.
The split of the council-owned companies was sparked by the discovery that thousands of power poles in Otago were rotting.
A whistleblower last year revealed thousands of power poles managed by Delta and Aurora were failing.
The Dunedin City Council released a report in December that recommended splitting the council-owned companies into separate entities, after three official inquiries.
A report by Deloitte recommended separate board management structures.
In a statement today, Delta said 95 employees would transfer to Aurora by mid-year, and there were no expected redundancies.
RNZ Link

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DCHL/DCC farming of the conjoined twins deserves a break….

█ The devilish ongoing loss of one billion dollars of Otago line user and ratepayer funds. And Steve Thompson can’t be contacted. Oh brother.

Yes we really believe the two council-owned companies have great governance and superb management!? We also totally believe DCHL is a solid grounded entity!? Pity about the number of executive and staff resignations from Delta to date, and the resulting inability to fill job vacancies. Would you touch these blighted babies. Oink.

At Facebook:

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### ODT Online Thu, 30 Mar 2017
Restructure proceeds
By Vaughan Elder
Dunedin City Council-owned companies Delta and Aurora are a step closer to becoming separate entities. Aurora and Delta announced in a joint press release yesterday about 95 Delta staff were expected to transfer to Aurora Energy by mid-year as part of the companies’ transition to standalone entities. The transition comes after a Deloitte report into accusations Aurora dangerously mismanaged its power network and failed to replace compromised poles recommended the two companies be split. According to Aurora’s annual report, it employs no staff and the management of the company is carried out by Delta, which is also contracted to carry out network maintenance. The Deloitte report said the closely linked arrangement was “fraught” with challenges, but acknowledged Aurora had been working on a restructuring programme which would have split the two companies in any case. Delta and Aurora chairman Steve Thompson, who was not available to answer questions about the press release, said significant progress had been made in the reorganisation of both businesses.
Read more

Related Posts and Comments:
11.3.17 How Safe Are We/Our Businesses with the Corporate Disaster that’s Aurora, owned by DCC ? #reliability
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
12.11.16 Delta/Aurora : Current strategy to “fix on failure” [extreme neglect]
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL in slipslidy mode
● 9.6.16 Aurora Energy Ltd warned by regulator

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: monsters international via blogspot.com – Siamese Twin Pigs by Alicia B Lim, ink on watercolour paper (US), tweaked by whatifdunedin

24 Comments

Filed under Aurora Energy, Baloney, Business, Central Otago, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, Economics, Electricity, Finance, Geography, Health & Safety, Hot air, Infrastructure, Media, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, Other, People, Pet projects, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, Sport, Technology, Tourism, Travesty, What stadium

Delta/Aurora spend-up at Stadium —Degraded electricity network, Us ? (said the GOBs) #LGOIMA #Rugby

Received.

From: Bev Butler
Sent: Tuesday, 22 November 2016 7:40 p.m.
To: Sue Bidrose [DCC]; Sandy Graham [DCC]; Lee Vandervis; Elizabeth Kerr
Cc: Vaughan Elder [ODT]
Subject: Re: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints/clarification/invoices

Dear Sue, Sandy, Lee and Elizabeth
I have just received the attached table and invoices for Delta’s spending at the stadium. They not only have a $45,000pa corporate suite contracted for 10 years, they also have used ratepayers’ money to purchase Gold tickets to concerts, they have spent thousands of dollars on expensive booze/wines and meals, stadium platters etc whilst watching rugby and concerts at the stadium. All this whilst neglecting the maintenance of basic infrastructure.
I am especially disgusted that this is continuing after the excessive abusive spending by the Carisbrook Stadium Trust which you are all aware of. Disappointingly nothing has changed. My opinion is that’s because no one has ever been held to account for the corrupt behaviour that ensued relentlessly throughout the stadium swindle. Please note that these invoices have been signed off by Grady Cameron and Gary Johnson. You may recall Gary Johnson was Farry’s CST public relations boy who worked for Farry part time on a full time salary – all documented in the CST invoices.
Elizabeth, feel free to post on What if as I am at the airport waiting for a flight to go overseas and will be out of range in two hours time.
Sincerely
Bev

On 22 Nov. 2016 2:05 pm, Glenda McGowan [Delta] wrote:

Dear Bev
I refer to your official information request of 12 November 2016 for a copy of all the invoices in relation to the entry in the table under the sub-heading “Other payments, including Forsyth Barr Stadium corporate suite costs (D)” in our response to you of 11 November 2016. The information you have requested is provided in the attached document.

Regards

GLENDA MCGOWAN
PERSONAL ASSISTANT TO CEO

WEB THINKDELTA.CO.NZ

█ Attachment: invoices_0001

********************************

From: Bev Butler
Sent: Saturday, 12 November 2016 10:46 AM
To: Glenda McGowan [Delta]
Subject: Re: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints/clarification/invoices

Dear Glenda

Further to my email below requesting clarification for the other payments included in with the corporate suite costs in row D, would you please send me a copy of all the invoices in relation to the entry in the table below under the sub-heading “Other payments, including Forsyth Barr Stadium corporate suite costs (D)”.

Please send me electronic copies.

Thank you.

Sincerely

Bev Butler

********************************

From: Bev Butler
Sent: Friday, 11 November 2016 3:50 p.m.
To: Glenda McGowan [Delta]
Subject: Re: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints/clarification

Thanks, Glenda.
Would you please clarify/list what the other payments were for which have been included in with the corporate suite costs in row D.
Thank you.
Sincerely
Bev

On 11 Nov. 2016 3:02 pm, Glenda McGowan [Delta] wrote:

Dear Bev

I refer to your official information request of 26 October 2016 for information regarding Aurora and Delta dividends and WorkSafe. The information you have requested is provided below.

1. The total yearly amount Aurora and/or Delta have paid to DCC/DVML/DVL for the stadium, including grants, subsidies, subvention payments or other, since 2007.

The total of subvention payments, tax offsets and other payments including Forsyth Barr Stadium corporate suite costs paid by Aurora Energy Limited and Delta Utility Services Limited to Dunedin Venues Management Limited or Dunedin Venues Limited by financial year ending 30 June are set out in the table below.

table[click to enlarge]

Aurora Energy Limited and Delta Utility Services Limited pay dividends to their shareholder, Dunedin City Holdings Limited. We have not included dividend payments to Dunedin City Holdings Limited in the figures above on the basis that these are not stadium-related payments. Dividend payments are disclosed in our publicly available annual reports at www.auroraenergy.co.nz for Aurora Energy and www.thinkdelta.co.nz for Delta.

Delta | Home
http://www.thinkdelta.co.nz
Delta is the infrastructure specialist. We invest in, design, construct, manage and maintain energy and environmental infrastructure.

Home » Aurora Energy
http://www.auroraenergy.co.nz
New Zealand’s sixth-largest electricity distributor delivering electricity supply to homes and businesses throughout the Dunedin and Central Otago community.

2. Please also send me the name and contact email address of the Worksafe Investigation team leader as I want to ensure that the Worksafe Investigation team receive this relevant information.

The contact details are:
Roy Butler
Technical Officer
Energy Safety
Level 9, 280 Queen Street, Auckland Central, Auckland 1010
P +64 9 928 2912
E roy.butler @worksafe.govt.nz
W http://www.worksafe.govt.nz
W http://www.energysafety.govt.nz

Regards,

GLENDA MCGOWAN
PERSONAL ASSISTANT TO CEO

WEB THINKDELTA.CO.NZ

********************************

From: Bev Butler
Sent: Wednesday, 26 October 2016 2:21 PM
To: Grady Cameron [Delta]
Cc: Sandy Graham [DCC] ; Elizabeth Kerr
Subject: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints
Importance: High

Wednesday 26 November 2016

Dear Mr Cameron

As you are aware Aurora pay a subsidy of approximately $7.2 million per annum to subsidise the stadium.

At $5000 per power pole this is equivalent to 1440 power poles per year.

I read in the ODT that Aurora’s excuse for not dealing with the backlog of dangerously compromised power poles was that there were financial constraints but nowhere did it mention the reason for these constraints. It is patently clear that Delta/Aurora/DCHL’s priority over the last few years has been to support a rugby stadium at the expense of public safety by way of subsidies/subvention payments.

It is in the pubic interest that Delta/Aurora are transparent especially now that this has become a public safety issue.

I, therefore, urgently request the following:

The total yearly amount Aurora and/or Delta have paid to DCC/DVML/DVL for the stadium, including grants, subsidies, subvention payments or other, since 2007.

Given the total amount is in the vicinity of approximately $40 million, then it is incumbent on you as CEO of both Aurora and Delta to inform the Worksafe Investigation team that Delta/Aurora/DCHL made stadium payments a priority over replacing dangerous power poles.

Please also send me the name and contact email address of the Worksafe Investigation team leader as I want to ensure that the Worksafe Investigation team receive this relevant information.

Yours sincerely

Bev Butler

[ends]

Posted by Elizabeth Kerr

This post is offered in the public interest.

5 Comments

Filed under Aurora Energy, Business, CST, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Education, Finance, Geography, Health, Highlanders, Infrastructure, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, Sport, Travesty, What stadium

Delta : Something to ponder……

fall-from-a-height-via-linkedin-com

Received.
Sun, 20 Nov 2016 at 10:44 p.m.

There are questions for the Council to ask Dunedin City Holdings (DCHL).

█ However, the one chosen, namely does DCHL have confidence in Delta, is not one of them.

Council should ask DCHL to explain why Council should have confidence in the board of DCHL, considering:

1) Both Delta and DCHL are expected to report financial budgets competently: recent talk of a need for increased investment required of $39 million suggests this has not happened.

2) Both Delta and DCHL are required to report to the shareholder within 5 days if there are any major issues that should be known, especially media related issues. This has not happened.

3) Delta is apparently intending to borrow $30 million dollars to deal with a public relations issue (the poles are apparently safe). There was no suggestion in any budgets that $30 million would be required for a public relations exercise, despite the CEO of Delta apparently having known for some years that the situation which is now in the spotlight would need to be addressed.

4) Neither of these companies accept that their plans included ignoring safety issues that others have noticed. It appears that Delta still does not accept that there are any safety issues that should have been addressed.

It is for DCHL to explain to Council why these financial and safety issues have arisen either without the knowledge of DCHL or with their knowledge which was not passed on.

The starting point must be to sack DCHL and appoint a replacement board unless there are prompt answers to the above which are acceptable both to Council and at this point to the public of Dunedin (and also to other places where Aurora provides services, come to that).

PS. Among the Not acceptable answers:
‘It is important that Council understands that dividends paid from profits are likely to be compromised as a result of the increased replacement programme undertaken by Aurora through Delta.’

[ends]

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: linkedin.com – Fall from a height: a case study [poor Grady], tweaked by whatifdunedin

17 Comments

Filed under Aurora Energy, Business, DCC, DCHL, Delta, Democracy, Design, Dunedin, Economics, Education, Events, Finance, Geography, Health, Infrastructure, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, Travesty, What stadium

At ODT : DCC (oblivious) sound bites on Delta/Aurora #letters

Updated post
Sat, 19 Nov 2016 at 3:16 a.m.

ODT 18.11.16 (page 10)

odt-18-11-16-letters-to-editor-mclachlan-callick-oaten-jordan-p10

Douglas Field 18.11.16cull-evades-the-question-again-18-11-16

N O T E
All the street lights between Green Island and North East Valley went out earlier this evening (Friday). The CBD now has lights back on, no idea about the rest.

?????

[later]
### ODT Online Fri, 18 Nov 2016
Street lights out in Dunedin
By Timothy Brown
Dunedin was plunged into darkness tonight after the city’s streetlights did not turn on. Delta marketing and communications manager Gary Johnson said the lights were scheduled to turn on at 8.52pm, but the automatic activation never occurred. Reports of the issue from around the city started circulating social media about 9.30pm. The lights were switched on manually from 9.50pm and all lights were confirmed on by 10.10pm, Mr Johnson said. “We apologise for any inconvenience and will be carrying out further investigation to pinpoint the reason the switching did not operate automatically as scheduled,” he said. Link

Updated at ODT Online: Street lights fail to turn on

Posted by Elizabeth Kerr

This post is offered in the public interest.

8 Comments

Filed under Aurora Energy, Business, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Education, Finance, Geography, Health, Hot air, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, Travesty, What stadium

Govt Debacle : Lost-luggage bill #universities #conscience

Lost luggage[whatifdunedin]

The sole purpose of National MP Nuk Korako’s bill is to require airports to advertise lost property more widely than in the newspaper.

### NZ Herald Online 9:15 AM Wednesday Aug 17, 2016
Lost-luggage bill has MPs in stitches
By Isaac Davison – political reporter
The National Party backbencher thrust into the spotlight by his bid to help recover lost property at airports has mounted a spirited defence of his widely mocked proposal. […] When it was pulled from the member’s bill ballot last week, Labour said it showed National had “lost the plot”. Today, Labour MPs set about picking it apart in Parliament, tabling a series of questions for the National MP. Korako, in his most high-profile moment since entering Parliament, thanked them for the opportunity to “profile his bill”.
Read more

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Tweets:

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Students’ changing preferences have forced a difficult task on the University of Otago.

ODT Online Wed, 17 Aug 2016
Jobs must be cut now to secure division’s future
By Prof Tony Ballantyne
OPINION The proposed changes in staffing in the Humanities Division at the University of Otago have been subject to sustained media comment and critical commentary. […] The reason for the proposed changes is quite simple: there has unfortunately been a sustained decline in student numbers over the past seven years. Because of this, there is a growing gap between the division’s cost and income and it now depends on subsidies of many millions of dollars each year from other parts of the university.
Read more

The place of humanities in a university raises issues that extend far beyond one department.

ODT Online Wed, 17 Aug 2016
Universities succeed when they produce thoughtful leaders, not technocrats
By Emeritus Prof Gareth Jones
OPINION […] We need lawyers who understand biomedical science or elements of commerce; we need doctors who have an appreciation of the medical humanities, let alone of English literature or Maori worldviews. The examples are endless but each one in its own way points away from any silo mentality and towards the notion that universities should be producing well-rounded, thoughtful and well-educated graduates.
Read more

Posted by Elizabeth Kerr

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

Leave a comment

Filed under Business, Democracy, Dunedin, Economics, Education, Finance, Media, Name, New Zealand, People, Politics, Public interest, Travesty, University of Otago

ODT circulation mutterings

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

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

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

Welcome to the Internet.

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

ABC on NZ newspaper circulation Received 8.8.16 10.08 am from @JournoMan

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

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

Posted by Elizabeth Kerr

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

32 Comments

Filed under Business, Democracy, Dunedin, Economics, Finance, Geography, Heritage, Media, Name, New Zealand, People, Public interest, Travesty

DCHL financial result

NO-ONE BELIEVES TERRY DAVIES ON DVML RESULT AND FORECAST (when DVL debt is deliberately not mentioned)

Terry Davies (1) 194022

Dunedin City Council – Media Release
DCHL Annual Result for the year ended 30 June 2014

This item was published on 30 Sep 2014

The Board of Dunedin City Holdings Limited (DCHL) is pleased to report the financial result for the DCHL group for the year ending 30 June 2014.

Highlights
● Profit after tax for the group was $12.5m.
● We have distributed to the Dunedin City Council (DCC) and its subsidiaries outside the DCHL group a total of $15.7m. This has fully met budget expectations and been achieved within the policy of not borrowing to pay dividends.
● Cash from operations remains strong at $30.1m. This was after paying the budgeted subvention payments of $7.9m to Dunedin Venues Limited.
● Total borrowings across the group have reduced by $4.7m to $621m.
● The financial result for the year reflects the hard work and focus of the staff and directors of the DCHL group of companies, which is much appreciated.

Profit after tax for the group was $12.5m for the year compared to $20.5m last year. This is a solid return for the year. The main difference between the 2014 and 2013 profit resulted from the 2013 year including a write up of approximately $7m in the value of the City Forests investment.

Aurora Energy Limited had a solid year, but profit was $1m less than last year due to the mild winter in 2013. Operating cashflow remained strong and was $4.1m higher than last year. 2014 also saw the company starting to increase investment in its asset base.

Delta’s profit was at a similar level to last year ($4.4m this year vs $4.6m last year). It has completed exiting its water and civil construction operations.

City Forests has had a strong year. Profit has reduced from $14.6m to $8.3m. This reduction in profit has been due to a lower write-up in value of the City Forests investment in the current year. The company paid a record dividend to Dunedin City Holdings Limited of $5.1m.

Taieri Gorge Railway experienced a small loss for the financial year of $51,000 compared to a surplus of $39,000 achieved last year. Operating cashflow remained strong at $433,000 and was also higher than last year.

Cash from operations has remained strong at $30.1m. Cashflow is the most critical measure as it is the basis for dividends and capital investment. The solid cash generation performance has also enabled the DCHL group to lower its net debt by $4.7m over the year.

Progress has continued to be made in restructuring the governance of the group. A number of directors resigned during the year and we need to thank them for their services. We need to specifically record the service of two directors who resigned this year after serving as members of the group’s board of directors for a significant number of years. Both Ray Polson and Ross Liddell resigned as directors during the year and contributed in a significant way to the development of the DCHL group in a wide range of roles. It is with sadness that I must note the passing of Ross in July of this year.

Given the normal operational challenges facing the members of the group the board of DCHL remain positive on the outlook for the group of companies.

Contact Graham Crombie, DCHL Chair on 0274 363 882.

DCC Link

### ODT Online Tue, 30 Sep 2014
‘Solid’ results from DCC companies
By Chris Morris
The Dunedin City Holdings Ltd group of companies have delivered “solid” results, despite an $8 million drop in profits and another loss for the entity running Forsyth Barr Stadium, chairman Graham Crombie says.
Read more

Posted by Elizabeth Kerr

*Image: Ch39 30.9.14 [screenshot tweaked by whatifdunedin] – Terry Davies

64 Comments

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DCC considers sale of “149 properties”

Tomorrow’s ODT carries carefully arranged details…

Kevin Taylor [odt.co.nz tweaked by whatifdunedin] 1blkKevin Taylor, City Property “good, bad and ugly” manager

Updated post 19.9.14 at 11:29 a.m.

### ODT Online Fri, 19 Sep 2014
$10m property sell-off possible
By David Loughrey
Houses, empty sections and parkland are among 149 parcels of property across Dunedin being considered for sale, as the city council looks to add $10 million to its coffers. The council released its “work in progress” list after a Local Government Official Information and Meetings Act request from the Otago Daily Times. […] Council infrastructure and networks general manager Tony Avery yesterday said the list was a starting point.
Read more

News conferred last week:
█ Cr Lee Vandervis now sits on the DCC Audit and Risk Subcommittee. [ Minutes ]

Related Posts and Comments:
15.9.14 Cull’s council spent the cash
11.9.14 DCTL: New treasury manager
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts and the record…
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
26.8.14 DCC: Forensics for kids
23.8.14 DCC public finance forum 12.8.14 (ten slides)
22.8.14 DCC: Deloitte report referred to the police #Citifleet
7.8.14 DCC issues shoddy treatment to Caledonian Bowling Club
● 30.7.14 Dunedin City Council | Consolidated council debt
● 28.4.14 DCC loses City Property manager in restructuring
24.1.14 Stadium: It came to pass… [stadium review]
14.10.13 DCC: New chief financial officer
21.3.13 DCC: Opportunity created by Stephens’ departure
6.3.13 Carisbrook: Cr Vandervis elaborates
20.11.12 Dunedin City Council vs Anzide Properties decision…
9.6.12 City Property to compete more obviously in the market…

Posted by Elizabeth Kerr

*Image: odt.co.nz (tweaked by whatifdunedin) – Kevin Taylor blackened, a bit

28 Comments

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DVML: New monthly updates in local press

HOT page 5 beefcake.

IMG_20140902_180724ODT advert 2.9.14 (detail)

Posted by Elizabeth Kerr

*Image: whatifdunedin (cameraphone)

9 Comments

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Real reason behind Invermay slaughter/restructure?

Supplied. ODT 6.8.14 (page 25)

ODT 6.8.14 Letters to the editor Simmers p25

Posted by Elizabeth Kerr

10 Comments

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DCC loses City Property manager in restructuring

### dunedintv.co.nz April 28, 2014 – 6:53pm
DCC’s Robert Clark steps down
The man in charge of the Dunedin City Council’s property portfolio is leaving the role he has held for the last six years. Group manager of economic development and property Robert Clark is returning to the commercial sector. The council says the creation of a city marketing agency and proposed structural changes will affect property operations. It says that review provided an opportunity for Clark to return to the commercial property environment, and pursue other interests.
Ch39 Link [no video available]

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Dunedin City Council – Media Release
Manager Economic Development and Property moving on

This item was published on 28 Apr 2014

The Dunedin City Council’s Group Manager Economic Development and Property Robert Clark is leaving the organisation after six years to return to the commercial sector. General Manager Infrastructure and Networks Tony Avery says Mr Clark’s last day at the DCC will be on Friday, although he will continue to do transitional consulting work in the coming months on some significant projects.

Mr Avery says the DCC is currently working on the creation of a City marketing agency and proposed structural changes, some of which may impact on its property operations. “The DCC and Robert have been in discussion around the future of the Property Group within Council. Robert has achieved a number of significant successful property and commercial projects and outcomes for the city. The review of property operations has provided an opportunity for Robert to return to the commercial property environment and pursue other interests. Robert wishes his team and colleagues well and said it has been a privilege and pleasure to work with such a talented group and achieve such positive outcomes for the city. He leaves the DCC with our best wishes and we look forward to an ongoing working relationship with Robert.”

Mr Avery says the DCC is still in consultation with staff regarding the proposed marketing group and other organisational changes, and an announcement is expected from CEO Sue Bidrose by the end of the week.

Contact General Manager Infrastructure and Networks on 477 4000.

DCC Link

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The existing positions of economic development and property group manager, held at present by Robert Clark, and customer services agency manager, held by Adrian Blair, would be disestablished under the proposed changes.

### ODT Online Wed, 26 Mar 2014
Further DCC restructuring proposed
By Debbie Porteous
The Otago Daily Times understands the council is proposing two management positions be disestablished and three new positions created under a new council structure. Two new groups with new group managers would be created and the council’s commercial property investment portfolio split off from operational property and moved into the finance team. A commercial property investment manager position would be created with responsibility for overseeing such investments across the whole council family, including by council-owned and controlled companies.
Read more

Posted by Elizabeth Kerr

21 Comments

Filed under Business, Construction, DCC, Economics, Heritage, Media, Name, People, Politics, Project management, Property, Site

ORC restructures directorates

Otago Regional Council – Media Release
ORC reshapes executive management team

Monday, 09 December 2013

The Otago Regional Council’s executive management team has been redeveloped to better align it with extensive work programmes being implemented over the next seven years. ORC chief executive Peter Bodeker announced that appointments had been made to two new positions created following a review of the council’s directorate structure.
Fraser McRae has been appointed to the position of Director, Policy Planning and Resource Management, and Dr Gavin Palmer has been appointed as Director, Engineering, Natural Hazards and Science. Mr Bodeker said Mr McRae’s position would incorporate the functions previously located in the Resource Management portfolio and Dr Palmer would take on the roles held within the Environmental Information and Science portfolio.

“With a good deal of work to be done to help the community implement new water quality (Plan Change 6A) and water quantity (Plan Change 1C) requirements in the Otago Water Plan, it is crucial to have better integration of the executive roles,” Mr Bodeker said. “This restructure will expedite and improve the delivery of these work programmes which already overlap within our current directorate structure.”

In addition a new position, Director, Stakeholder Engagement, would be advertised that would oversee the council’s communications and community liaison activities. Mr Bodeker said ORC delivered a huge range of services to the community.

“I want to ensure we strengthen our connection to our communities and deliver our programmes effectively to everyone using council services.”

For more information contact
Peter Bodeker
Chief executive
Otago Regional Council
Ph 0274 998 328

ODT 10.12.13 Two ORC directors’ jobs disestablished

Posted by Elizabeth Kerr

2 Comments

Filed under Business, Economics, Media, Name, New Zealand, ORC, People, Politics, Project management, What stadium

DCC: New chief financial officer

### dunedintv.co.nz October 14, 2013 – 6:36pm
DCC appoints new chief financial officer
The DCC has appointed the University of Otago’s director of financial services, a former Allied Press accountant, as its chief financial officer.
Grant McKenzie [ODT files]Grant McKenzie has been chosen for the newly created role, with responsibility for the management of the council’s group finances.
A graduate of the University of Otago, McKenzie has a Bachelor of Commerce, majoring in accounting, is a chartered accountant, and a member of the Institute of Directors.
His role will include the provision of financial advice and support to the board of Dunedin City Holdings Limited, which looks after the council’s group of companies.
Ch39 Link

Dunedin City Council – Media Release
Group Chief Financial Officer Appointed

This item was published on 14 Oct 2013.

The University of Otago’s Director of Financial Services, Grant McKenzie, has been appointed as the Dunedin City Council’s Group Chief Financial Officer (GCFO).

Announcing the appointment of Mr McKenzie to this newly-created role, DCC Chief Executive Paul Orders says, “Grant will bring a wealth of knowledge and experience to the role and will be instrumental in ensuring the effective and efficient management of DCC group finances.”

Mr McKenzie is a graduate of the University. He has a Bachelor of Commerce, majoring in accounting, and is a Chartered Accountant. He is also a member of the Institute of Directors.

For the past eight and a half years, Mr McKenzie has been the University’s Director of Financial Services. In this role he has been responsible for the overall accounting function for the University and the wider University group.

Mr McKenzie is a director for several subsidiary companies within the University group, including the University of Otago Foundation Studies Limited, Unipol Recreation Limited and University Union Limited. He is also an elected trustee of the New Zealand University Superannuation Scheme.

Before working at the University, Mr McKenzie was the Group Accountant at Allied Press Limited. He has also worked for Dunedin business advisory firm Taylor McLachlan.

Mr McKenzie says, ”I’m very pleased to have been appointed to the role and look forward to the new challenges ahead.”

The new position of Group Chief Financial Officer replaces the DCC’s Chief Financial Officer (currently a vacant post),with the role expanded to include the provision of financial advice and support to the Board of Dunedin City Holdings Limited (DCHL). The role will also create more cohesive financial management between the DCC and Dunedin City Holdings Limited. Twenty eight applications were received for the position, from New Zealand and overseas.

DCHL Chair Graham Crombie says, “I’m really pleased Grant is joining us and look forward to having his experience and ideas around the table.”

The current position of Chief Executive of DCHL will be disestablished when Mr McKenzie takes up his GCFO role in late January. Mr Crombie says the significant contribution of DCHL Chief Executive Bevan Dodds will be recognised and an appropriate handover arranged.

Contact Chief Executive, Dunedin City Council on 477 4000.

DCC Link

Related Posts and Comments:
21.3.13 DCC: Opportunity created by Stephens’ departure
15.3.13 DCC: Stephens gone. It took way too long.

Posted by Elizabeth Kerr

2 Comments

Filed under Business, DCC, DCHL, Delta, DVL, DVML, Economics, Media, Name, New Zealand, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums, What stadium

New DCHL Chair announced: Graham Crombie

Graham Crombie, DCHL### ODT Online Fri, 23 Aug 2013
New DCHL chairman named
Graham Crombie has been appointed as the new Chair of Dunedin City Holdings Limited. Mr Crombie, of Dunedin, is a professional director and chartered accountant. He was appointed as a director to the DCHL Board in July last year. Mr Crombie replaces retiring Chair Denham Shale, who will remain on the Board until later this year. DCHL is the parent company for Council-owned companies. In announcing the appointment, Mayor of Dunedin Dave Cull thanked Mr Shale for his considerable contribution during a period of review and change for DCHL. Mr Cull welcomed Mr Crombie to the role, saying, “Mr Crombie will bring his expertise and experience to bear, building on the work of Mr Shale in refocusing Council-owned companies for the future.”
ODT Link

DCC Media Release

More to come . . .

Warren Larsen Report (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

Related Posts and Comments:
24.7.13 DCC / DCHL shake up !!!
12.7.13 Hudson, DCC (ex DCHL)
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
13.8.11 Ridding DCHL of conflicts of interest…

For more, enter *dchl* or *dcc* in the search box at right.

Posted by Elizabeth Kerr

*Image: odt.co.nz – Graham Crombie

9 Comments

Filed under Business, DCC, DCHL, Economics, Hot air, Media, Name, New Zealand, People, Politics, Project management, Stadiums, What stadium

DScene, staying power . . .

DScene 8-5-13 (screenshot detail) 1[screenshot]

THE CONUNDRUM
DScene could fall victim to the disease rabidly attacking the Fairfax Media conglomerate. How to deal with the local monopoly, should the war have been fought online, not on paper.

### ODT Online Fri, 10 May 2013
D-Scene newspaper may close
Dunedin community newspaper D-Scene may be ceasing publication after five years. The Fairfax Media-owned The Press reported yesterday a proposal to close the weekly publication, a subsidiary of The Southland Times.
Read more

****

### 3news.co.nz Fri, 10 May 2013 11:03a.m.
Dunedin’s D-Scene paper tipped to close
By Thomas Mead, Online Reporter
Fairfax Media is considering ending the popular Dunedin community newspaper D-Scene, putting eight jobs at risk. The media conglomerate has put a proposal to staff and is now deciding the fate of the weekly publication in a two-week consultation period with those affected. Southland Times general manager Sue Gregory is declining to comment until the consultation period is over, but confirmed the initiative was underway. D-Scene was purchased by Fairfax Media in September 2008, but is in a competitive environment, up against the well-read Otago Daily Times and weekly The Star.
3news Link

[This too, gives pause . . .]

### NZ Herald Online 5:30 AM Friday May 3, 2013
John Drinnan: Local history shipped out
History has a price and New Zealand’s photographic history is being shipped to Little Rock, Arkansas. Veteran sports photographer Peter Bush is shocked by Fairfax Media’s decision to sell its newspaper photo archive to an American firm. Fairfax has told Auckland staff it will be shipping photo archives for most of its Australian and New Zealand newspapers to the Rogers Photo Archive, a company based in Little Rock. The company will send back digital versions of the photos, but will keep the original prints, including photos of Sir Edmund Hillary.
Read more

[2008, remember the Smiths back then . . .]

### stuff.co.nz Last updated 13:59 09/09/2008
Fairfax buying Dunedin community paper D-Scene
Dunedin community newspaper D-Scene looks set to join the Fairfax stable with the media giant announcing it is in the final stages of buying it. A spin-off from Queenstown’s Mountain Scene, the paper was set up earlier this year in a market dominated by long-time incumbent, the Otago Daily Times.
Read more

****

### nbr.co.nz Tuesday September 09, 2008
Fairfax buys a lemon
By Mitchell Hall
Fairfax media’s decision to buy Dunedin’s struggling free weekly newspaper D Scene has one competitor sniffing that there’s no business case for the purchase – given how much money it is said to have been losing. The Otago Daily Times is the oldest newspaper in the country – and one of the last independent newspapers not owned by APN or Fairfax. The ODT’s business manager (and Allied Press director), Nick Smith, says a large editorial team designed D Scene with the Otago Daily Times in their sights. “The Otago Daily Times was seen (by them) to be an old and staid paper circulating in a one horse town. “They decided that the ODT was something that – according to their sales people – was a relic from the past, and they were smart boys who’d done all this research and they can take the town over.”
Read more

Posted by Elizabeth Kerr

8 Comments

Filed under Business, Design, Economics, Media, Name, People, Project management

DCC: Opportunity created by Stephens’ departure

### ODT Online Thu, 21 Mar 2013
Shake-up at top for DCC
By Debbie Porteous
Senior jobs could be under threat at the Dunedin City Council as chief executive Paul Orders uses the sudden departure of a general manager to begin a wholesale review of the organisation’s senior management structure.

Paul Orders“As circumstances change, so we should restructure,” Mr Orders told the Otago Daily Times yesterday.

An interim management structure has been put in place to reallocate the work of former general manager of finance and resources Athol Stephens, who quit abruptly last Thursday. Mr Orders says his attention will now turn to the wider organisation. Under the new arrangements, which are effective immediately, Mr Stephens’ portfolios have been allocated to other staff.

General manager city strategy and development Dr Sue Bidrose takes responsibility for finance and general manager operations, Tony Avery takes responsibility for the customer services agency, while the city property, business information services and human resources teams will report directly to Mr Orders.
Read more

Posted by Elizabeth Kerr

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DCC Annual Report to 30 June 2012 – borrowing and interpretation

DCC Annual Report (PDF, 1.1 MB)

Comments received.

Mike
Submitted on 2012/11/18 at 12:48 pm
well spotted – so in essence DVML quietly borrowed an extra $8.5m and managed to transfer it to the DCC without incurring any tax because it was a ‘capital gain’ rather than a ‘dividend’

Rob Hamlin
Submitted on 2012/11/18 at 2:07 am
Another little gem from the DCC annual accounts. A positive little Kimberly it is. Calvin Oaten and I found this little morsel from the sewers of local government yesterday and will now share it with you.

On page 132 it has a table of figures titled ‘Separately Disclosed Revenue’. One line entry towards the bottom is particularly interesting. The title is ‘Profit on sale of Stadium (2012)……. $8,480,000’. This profit appears in both ‘Core Council’ (DCC only) and ‘Consolidated’ (Council & DCHL) columns.

Initially, this seems like great news. We’ve sold the bloody thing and got eight and a half million dollars for it. But, as is always the case, things are not all as they appear.

Nearly sixty pages later, on page 188, we have the following sheet of gibberish:

“Sale of Forsyth Barr Stadium to Dunedin Venues Limited

On the 31 May 2012 the Council sold it’s [sic] interest in the stadium to a wholly owned subsidiary Dunedin Venues Limited. This was the culmination of a project spanning five years during which time the method of delivering the project changed and as a result there is a technical accounting surplus on disposal of $8,380,000. The following note is an explanation of these technical accounting issues.

Book Surplus on disposal of the stadium $ ‘000
Sale price 225,000
Capitalised stadium cost including interest 216,520
Surplus on sale of asset as per 2012 Annual Accounts 8,480
Less stadium costs written off to operations in 2007-2008 5,537
Plus stadium revenue included in operations in 2007-2008 (583)
Surplus on disposal 3,526

Book surplus on disposal of the stadium
The method of undertaking the stadium project changed over the years of the project. The accounting treatment always followed the method of project delivery and was audited as being the correct treatment at the time. In 2007–2008 year it was expected that the project would be delivered by a third party and that the Council expenditure was therefore operational. This resulted in $5,537,000 being correctly expensed in 2007–2008 year. In subsequent years once the decision was made that the Council would build the stadium, the expenditure was correctly capitalised. The surplus of $3,526,000 would remain as it is the difference between all the costs incurred by the Council and the sale proceeds received.”

Also on page 123 we have this note to one of the CCO fragmentary reports:

CCO Property Plant and Equipment
All CCO property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
The Stadium is a separate class of asset and is recorded at cost less any accumulated depreciation and any accumulated impairment losses.”

So what happened? Well, you may remember that the total cost of the Stadium came in at around $216.5 million. Then, last year the DCC acquired a ‘valuation’ for the Stadium (God knows how and God knows from who) of $225 million. Its commercially realisable value is in fact, as we all know, the commercial value of the site minus the costs of demolition and removal, which is as near zero as makes no difference.

However, it now appears that DVL then ‘bought’ the stadium from the DCC at this higher valuation. It is hard to see any good reason why they would do this, as the historical cost of the stadium itself was $216.5 million – this figure would have fitted well with their own policy for valuation in the note on page 123. As the structure was brand new when ‘bought’, a second valuation was unnecessary. The historical cost of construction would have been more than adequate as a transfer price.

However, it appears that this unnecessary valuation exercise and its absurd outcome has allowed a further $8.5 million to be transferred from DCHL to the DCC this year on top of the $17.95 million handed over as a dividend, for a total of $26.45 million. It can also be claimed now with a straight face that DVL are acting in accordance with their requirement to record assets at cost as $225 million is what they ‘paid’ for it!!

Now let’s deal with the gibberish on page 188, which covers the financial year 2007-2008 (presumably ending 1 April 2008). Apparently, this specific structure incurred over five and a half million dollars of costs and over half a million dollars of REVENUE!!! before it had been fully designed or even approved as a specific entity that the DCC was actually going to construct! The final approval came nearly a year later I seem to recall.

I personally find this reduction in this ‘accounting profit’ to be wholly incredible. I can also find no adjustments matching this $5 million or so in the costs side of the DCC’s figures – even though the $8.5 million extra revenue appears in its entirety. Mind you, in the 200 pages plus of fragmentary and largely useless figures, I guess that I could have missed it.

Page 13 is also interesting. It is entitled ‘Audit Report’. Properly audited accounts require a signed statement by the auditor to form part of them, stating that the auditor’s unqualified opinion that they are satisfied with the accounts – or a statement of their reservations (qualifications) if they are not.

Page 13 is blank (surprised?)

On page 1, we have the following statement:

“This report asks the Council to approve and adopt the Annual Report for the year ending 30 June 2012.

The Director of Audit New Zealand responsible for the audit and the Audit Manager will attend to discuss the audit and answer any questions from councillors.”

In my opinion this is utterly inadequate basis upon which to approve this report. It should not have been even presented to Council, let alone approved, without a complete auditor’s report being attached to it.

It seems that the Council will have to find $25 million plus in savings by next year just to tread water, and that’s if we don’t get any more unpleasant surprises. Interesting times.

[ends]

Posted by Elizabeth Kerr

16 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Name, People, Politics, Project management, Property, Site, Stadiums

Dunedin City Council – all reports posted, belatedly!

Annual reports for council-owned companies were withheld from public and media scrutiny, without notice, prior to the council meeting held on Monday, 29 October 2012. The Mayor of Dunedin Dave Cull and DCC chief executive Paul Orders are individually responsible for deliberately withholding this financial information. Although, along with them, we suspect other players in the woodpile.

### ODT Online Wed, 31 Oct 2012
Report about stadium loss slips under radar
By Chris Morris
A worse-than-expected $3.2 million loss recorded by the company running Dunedin’s Forsyth Barr Stadium did not rate a mention at this week’s Dunedin City Council meeting. It emerged yesterday Dunedin Venues Management Ltd and Dunedin Venues Ltd’s annual reports had quietly slipped through Monday’s full council meeting without a question or word of debate. There had been no mention of DVML or DVL on the meeting’s public agenda, and it appeared the reports had not been circulated publicly, to media or even some council staff, as required, in the days before the meeting, the Otago Daily Times discovered yesterday.
Read more

DUNEDIN CITY COUNCIL AGENDA
MONDAY, 29 OCTOBER 2012, 2.00 PM
COUNCIL CHAMBER, MUNICIPAL CHAMBERS29 October 2012

Agenda – Council – 29/10/2012 (PDF, 118.9 KB)

Report – Council – 29/10/2012 (PDF, 77.9 KB)
ISCOM Approved Out of Water Supply Area Connection – Mr J D MacDonald, 3509 Sutton-Clarks Junction Road, RD 2, Outram 9074

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Approval and Adoption of Annual Report

Report – Council – 29/10/2012 (PDF, 788.2 KB)
Vehicle Access John Wilson Ocean Drive

Report – Council – 29/10/2012 (PDF, 4.6 MB)
Speed Limits Bylaw Review

Report – Council – 29/10/2012 (PDF, 978.0 KB)
Speed Limits – Safer Speeds Demonstration Area

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Submission on the Local Government Regulatory Performance Issues Paper

Report – Council – 29/10/2012 (PDF, 155.1 KB)
Meeting Schedule for 2013

Report – Council – 29/10/2012 (PDF, 1.2 MB)
Aurora Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Delta Annual Report 2012

Report – Council – 29/10/2012 (PDF, 813.7 KB)
Dunedin International Airport Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.0 MB)
Dunedin Venues Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Dunedin Venues Management Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 225.0 KB)
Taieri Gorge Railway Annual Report 2012

Report – Council – 29/10/2012 (PDF, 2.8 MB)
Dunedin City Treasury Annual Report 2012

DCC Link

### ODT Online Wed, 31 Oct 2012
Stadium finances dismay
By Chris Morris
Dunedin Mayor Dave Cull says the Forsyth Barr Stadium’s finances are “not sustainable”, after confirmation the company running the venue lost nearly $1 million more than expected in its first year of operation. The result was contained in Dunedin Venues Management Ltd’s 2011-12 annual report, released to the Otago Daily Times yesterday, which showed the company lost $3.2 million in its first year. That was $814,000 worse than the $2.4 million loss forecast in May, when DVML’s revelations of a half-year, $1.9 million loss prompted the council to launch a review of the entire stadium operation.
A copy of Dunedin Venues Ltd’s annual report was also released yesterday, and showed the company that owned the stadium – and received rent from DVML – recorded a $4.312 million loss for the same period.
Read more

Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, DVL, DVML, Economics, Media, Name, People, Politics, Project management, Property, Stadiums

DCHL ‘run by a bunch of fools’ -agreed

Comment received.

JimmyJones
Submitted on 2012/10/30 at 5:43 pm

DCHL is financially very sick: if it was a horse, you would have to shoot it to put it out of its misery. It is amusing to see how sensitive Dave Cull is to Lee Vandervis stating-the-bloody-obvious, that DCHL doesn’t make enough real money to pay its interest and dividends to the DCC, as well as the subsidies to DVL and DVML.
The DCC are forcing DCHL into more and more debt every year. For the 5 years that I have Annual Reports, DCHL has always paid for its distributions to the DCC by increasing their debt. Not just part of the distributions are borrowed money, but the whole amount each year.
In 2012 they added $50.3 million to their debt (page 37), so you can see that even without being forced to provide distributions of $23.2 million, it already had a severe cash-flow shortage. This negative cash-flow is the result of their own incompetence from spending very large amounts on new investments and expanding their operations. The incompetence comes from the fact that there has been no expansion in profits as a result of this low quality spending. They seem to be followers of the Homer Principle (if something doesn’t work, keep doing it), because not once in the last five years have they earned enough cash to pay for their spending on new stuff. Poor-old Dave and the new-guy, Paul, don’t seem to understand the problem. Let me summarize –

● DCHL is heading towards bankruptcy
● It is going bankrupt because DCC councillors and staff have been using it like a magic money-box where distributions are paid from debt (debt that doesn’t show up on DCC books – because of their choice)
● The LTP shows that they fully intend to continue this foolish practice, despite the DCHL Chairman’s aspirational comments to the contrary and Mayor Cull foaming at the mouth about it
● DCHL has been, and mostly still is, being run by a bunch of fools that need to be kept well away from anything financial or owned by the People Of Dunedin.

### ODT Online Tue, 30 Oct 2012
Mayor sees red over Vandervis questions
By Chris Morris
Sparks flew as Mayor Dave Cull and Cr Lee Vandervis clashed repeatedly over debt and dividends at yesterday’s Dunedin City Council meeting. In what at times resembled a running battle, an angry Mr Cull eventually accused Cr Vandervis of giving in to his “obsession” and threatened to prevent him from speaking. The pair found themselves at loggerheads over reports detailing Dunedin City Holdings Ltd’s latest financial results and the council’s annual report.[…]Cr Vandervis attacked the figures at yesterday’s meeting, claiming the entire $23.2 million – which helped keep council rates increases to a minimum – had been funded from loans.
Read more

Related Posts and Comments:
29.10.12 DCC consolidated debt substantially more than $616m…
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
25.10.12 Dunedin Venues Limited – 2012 Annual Report now 2 months overdue
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
25.9.12 Cull’s state of denial…
24.9.12 DCC against imposition of local government reforms
11.9.12 Delta Utility Services Ltd
6.9.12 DCC pays out $millions to cover loss making stadium…
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
26.7.12 Cull’s council thinks $750,000 per annum to DVML…

Posted by Elizabeth Kerr

33 Comments

Filed under Stadiums

DCHL borrowed $23 million to bail DCC

Why are the Otago Daily Times (Allied Press) and DScene (Fairfax) refusing to print the truth about Dunedin City Holdings accounts?

The $23 million that DCHL reportedly PAID as dividend etc to Dunedin City Council, is borrowed.

DCHL borrowed $23 million to bail the spendthrift DCC and make it look like we have a 5% rates increase instead of the real 25% increase without the new borrowing.

You’ll find all the details here:

DCHL Annual Report 2012 (PDF, 2.1 MB)

The ‘debt-deniers’ from DCHL are trying to characterise this year’s disastrous council-owned companies annual accounts as one of ‘ups and downs’.
ODT 18.10.12

The DCHL annual report actually shows:

● Delta business goodwill – Down
● Jacks Point/Luggate property values – Way Down
● City Forests carbon credits, log returns and valuations – All Down
● City Forests Milburn Wood Processing Mill – Down
● DCHL cashflow – Down
● DCHL profit – Down and Out and Negative: minus $5 million
● The only significant ‘Up’ is more DCHL borrowing

Repeat:
What DCHL has delivered is another $23 million of debt which they have had to borrow against company assets because the council has already spent it.

The claim that DCHL’s borrowing to supply dividends will stop from next year is a claim with onerous consequences.

– The council’s gross spending continues unabated.
– Together, DCC and DCHL have racked up all possible debt.

Without serious moves to slash staff and shrink the number of company directors, the only option that remains is Asset Sales.

———————————————

A note on two DCHL subsidiaries

The directors of Delta Utility Services Ltd and Delta Investments Ltd are guilty of having made the decision(s) to speculate on property at Queenstown’s Jacks Point and Luggate, using ratepayer funds. No other conclusion is able to be drawn, they are all responsible. They are all liable.

The value of the properties has been written down by millions of dollars, a loss to the ratepayers who were unaware of the purchases until the deals were concluded.

This is not simply a matter of loss of ‘book value’.

The directors of the two companies had real and perceived conflicts of interest in conducting the property deals. They continue as directors with clear conflicts of interest.

The directors should be SACKED. Meanwhile, we await news of ‘board restructuring’. [see post]

DCHL chairman Denham Shale should be SACKED for misrepresenting the facts and condoning the actions of the two boards.

Who are/were the directors responsible?

Delta Utility Services Limited
[formerly Delta Energy Limited; The Electric Company of Dunedin Limited]
Michael Owen COBURN
Norman Gilbert EVANS
Ross Douglas LIDDELL
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Delta Investments Limited – property subsidiary
[formerly Newtons Coachways (1993) Limited]
Grady CAMERON [also, Chief Executive of Delta Utility Services]
Michael Owen COBURN
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Throw out Athol Stephens, DCHL Secretary, for good measure.

Posted by Elizabeth Kerr

17 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Geography, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums

The only thing up…. (for sale)

Email received.

—— Forwarded Message
From: Lee Vandervis
Date: Wed, 17 Oct 2012 19:51:39 +1300
To: Debbie Porteous , Chris Morris
Cc: EditorODT
Conversation: DCHL claim of ups and downs
Subject: DCHL claim of ups and downs

Hi Debbie and Chris,

The debt-deniers from DCHL are trying to characterise this year’s City Companies Annual Reports as one of ups and downs.
Delta business goodwill is down.
Jacks Point/Luggate property values are way down.
[City Forests] carbon credits, log returns and valuations are down.
[City Forests] Wood Processing Mill is down.
DCHL cash flow is down and profit is down and out and negative.

The only thing significantly up is DCC funding requirements for the Stadium, met by significant borrowing again this year, but with a promise that the DCHL borrowing will now stop.
Without the courage to slash and burn staff costs and biff all directors responsible for scandalously speculative Jacks Point/Luggate, Wood Processing Mill etc, the only option that remains is asset sales.
Look out City Properties, Waipori Fund, Forests etc.

Kind regards,
Lee

Posted by Elizabeth Kerr

21 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Hot air, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums

DCC on DCHL, subsidiaries and DCTL

UPDATED POST 18.10.12

“It’s probably good to take all your bad news at the same time and look forward to the future.” -Denham Shale, DCHL

PROPERTY SPECULATION BY DELTA DIRECTORS WITH LOCAL COMPANY LINKS, IS THE MISUSE OF PUBLIC FUNDS. STOP.
GLARING CONFLICTS OF INTEREST ARE INVOLVED. STOP.
DCHL CHAIRMAN IS FULLY COMPLICIT, ALONG WITH DCHL BOARD OF DIRECTORS. STOP.
DUNEDIN CITY COUNCILLORS FAIL RATEPAYERS AND RESIDENTS SEVERALLY. STOP.

See link to ODT report added below.

DCHL Annual Report 2012 (PDF, 2.1 MB)
Dunedin City Holdings Ltd Annual Report 2012

Warren Larsen Report (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

BUT WHAT’S THE REAL STORY?

Dunedin city Council
Media Release

Dunedin City Holdings Limited Annual Result for the year ended 30 June 2012

This item was published on 17 Oct 2012.

This past year has been a challenging year in which there has been a well publicised change in governance of the parent company. It has been a year that has been affected by a slow economy and poor export log prices and a year in which the subsidiary companies decided to write down the values of assets where impairment occurred.

Revenue has increased for the year by 3.7% to $254.9m, however, the profit has been affected by a series of factors that are fully explained in the Annual Report of the company. These factors are the effect of the Dunedin City Holdings (DCHL) group providing subvention payments directly to Dunedin Venues Limited in lieu of dividends to the Council, the effect of asset impairment provisions made by the Delta group in respect of goodwill on a number of past business acquisitions and land at Luggate and Jacks Point, pressure on margins in a slow economy, and lower carbon credit income in comparison with last year.

Separately from the activities of the subsidiaries the holding company board has been active working on a number of issues arising from the Larsen report. “Last December I stated that we have been charged with restructuring a number of aspects within the group. You have seen the recent appointment of two additional directors to the parent company board. We anticipate further announcements by year end from suggestions to be made to the Council over the next two months.” comments DCHL Chairman, Denham Shale.

“As a matter of principle, the current board has taken the view that borrowing should not be entered into for the payment of dividends. But it is important to note that much of the drop in profit last year was caused by the agreement in respect of Dunedin Venues Limited and accounting provisions rather than cash outflows. Against this, dividends in this current year will be paid from surpluses that we would expect to make over the year to June 2013. Therefore it is not necessarily correct to assume that because last year was poor that there will be no dividend this year. ”

Aurora Energy Limited has traded well although the economy has slowed the growth in the quantity of electricity carried on the network.

The NZ forestry industry has had another difficult year and, as the public is aware, City Forests Limited decided to cease operating its timber processing mill. The Milburn asset has been leased to Craigpine Timber Limited.

The electrical asset planning and maintenance businesses of Delta Utility Services Limited have operated well. But the demand for other infrastructure services weakened and company was forced to conduct a series of adjustments to reposition the company to match reduced demand. The land holdings of the Delta group, which have attracted media attention, are under close management.

The summer tourism season last year was well underpinned by the visits of cruise ships. We expect an improving cruise ship season over this next summer.

Overall passenger numbers into Dunedin International Airport were 9.9% up for the year. The operating surplus after tax achieved by the company for the year was an improvement on both budget and the same period last year. A substantial revaluation of the assets of the company has increased the carrying value of the investment in the books of the DCHL parent company.

Contact Denham Shale, Chairman, DCHL on 021 375 112.

DCC Link

### ODT Online Thu, 18 Oct 2012
$5m loss for DCC group
By Chris Morris
A $9 million write-down in Delta’s investments – including property at Jacks Point and Luggate – is partly to blame for a multimillion-dollar loss booked by the Dunedin City Council’s group of companies.[…]Mr Shale was reluctant to criticise yesterday when asked if the property purchases had proven to be a mistake. “I wouldn’t call it a mistake, no. As we see it today, it could be called an unfortunate decision, but that is very much in hindsight. It’s very easy in hindsight.” He also saw no need for the new DCHL board to investigate the rationale behind the purchases, saying they were “a fact that’s there”. “We can’t do anything to change it.” He blamed the result on the world economy…
Read more

Related Posts:
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter

Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, DVL, DVML, Economics, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums

DCHL, subsidiaries and DCTL

UPDATED

Agenda – Council – 15/10/2012 (PDF, 36.1 KB)
Extraordinary Council Meeting

Report – Council – 15/10/2012 (PDF, 32.2 KB)
DCHL Governance Structure

### ODT Online Fri, 12 Oct 2012
Further shake-ups for boards
By Chris Morris
The Dunedin City Council’s stable of companies is set for another injection of fresh blood as part of major restructuring prompted by a dividend shortfall last year and the political storm that followed. The changes will affect the boards of Delta Utility Services and Aurora Energy – governed by the same directors – and City Forests. Two directors from each are to be replaced by two new recruits, with fresh talent and skills. In addition, the board of Dunedin City Treasury Ltd (DCTL) will be completely replaced by the recently appointed directors of the council’s holding company, Dunedin City Holdings Ltd. The changes were outlined in a report by DCHL chairman Denham Shale and will be considered at an extraordinary council meeting on Monday.
Read more

Warren Larsen Report (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

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1.11.11 Dunedin City Holdings Limited
28.10.11 DVML, DVL and DCHL annual reports
16.9.11 DCHL and subsidiaries: shuffling, no real clean out?
2.9.11 Dunedin City Council is buggered
13.8.11 Ridding DCHL of conflicts of interest, Otago business monopoly ‘by director’, and other ghouls
11.8.11 CRITICAL Dunedin City Council meeting
9.8.11 CRITICAL Dunedin City Council meeting
3.8.11 D Scene broke the news
29.7.11 WE ALL SAID IT #DunedinCityCouncil #SHAME
9.2.11 DCC and DCHL, was there ever any doubt?

Posted by Elizabeth Kerr

36 Comments

Filed under Business, DCC, DCHL, Economics, Media, Name, People, Politics, Project management