Aurora with yet another headache

At Facebook:

****

****

Note this particular meat from Richard Healey’s Facebook post:
[my emphasis]

“If you have a property where the lines were built before 2001, then Aurora owns everything up to the house. The only exceptions are where the lines have been brought up to standard and a letter has been sent to the property owner transferring ownership of the lines or a prior agreement is in place. That has almost never happened in Dunedin. If you think that you have been billed, and shouldn’t have been, write to Aurora. If you don’t get redress file a claim.
If you would like to read the appropriate legislation, look up the electricity act 1992 and search for the definition of “point of supply”.
What does that mean? It means that it’s probable that thousands of Dunedin residents have been charged for maintenance to lines and poles that they do not own.”

█ Electricity Act 1992
Reprint as at 18 October 2016
http://www.legislation.co.nz/act/public/1992/0122/latest/DLM281858.html

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Letter of opinion draws wide support, view not shared by deathly DCHL

ODT 9.1.16 (page 6)

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Otago’s dangerous electricity network —Aurora’s INCONSPICUOUS and INEFFECTIVE public safety messaging

[smartphone screenshot 2017-01-08]

The advertisement (safety message!) appears at ODT Online.
Blink and you miss it!

This is what Aurora Energy puts out for You to access Public Safety information. A yellow box with some branding, lost amongst news stories within a plethora of webpages.

Did anybody read ODT Online this summer ?
Did anyone see the ad ?
Did anyone notice the weblink ?
Did anybody click on the link ?
Did anyone do up their seat belt or wear a life jacket ?
How do you stay SAFE around a dangerous power network ?
What do you look out for ?
What do you avoid ?
In an emergency, what do you do ?
What sort of emergency ?
Clear guidelines ?

Or, read as ‘So what’ from the DCC-owned company.

****

How extensive is Aurora’s public safety messaging across all available media these holidays —and typically, across a year ?

Is Aurora’s public safety messaging evolving to provide clear informational content to keep the public SAFE around the DANGEROUS and DEGRADED electricity network ?

****

The adverteaser, and the related web information (reproduced below) is at the very low end of public safety information required to prevent personal injury or death. There is little informational value beyond the obvious.

Real life scenarios you should guard against, what are they ?

Other lines companies create graphics, audio and short videos that clearly explain what to do and what NOT to do around electrical facilities and in emergency situations involving live electricity.

Not so Aurora.

This YELLOW-BLOCK commercial branding exercise is cheap, casualised, determinedly ineffective and fully irresponsible. Further, it merely links to what has been up at the Aurora website for some time, which is basic and untelling.

Here’s the Aurora Energy link and their bland factless webpage content:

█ http://www.auroraenergy.co.nz/safety/

Aurora Energy puts your safety first. We want all our customers, employees, contractors and the wider community to be safe around electricity. Always keep a safe distance from electrical equipment and take extra care when working around electricity.

You can take some simple steps to make sure that you, and others around you, know how to keep yourself safe when around electricity.
● Treat all electricity as live and never touch electrical equipment
● Report electricity faults to your electricity retailer via their faults number
● Phone 111 immediately if there is an injury or risk of a fire
● Follow safe work practice near electrical equipment
● If you see a tree that is growing near or into a power line, contact Delta to arrange pruning services
● Inform others around you of the dangers of electricity
● Be prepared in the event of a natural disaster or extended power outage.
 
Read our free guide to working safely around Aurora Energy’s electricity network (PDF) before working near our electricity network. We’re here to help and can provide you information and services to help you stay safe.
 
Our Public Safety Management System controls hazards that present significant risk of serious harm or major property damage. The System complies with the requirement of the Electricity (Safety) Regulations 2010. To report a potential hazard, please complete the Report a Hazard form or contact Delta.

****

If Aurora has conducted a full PUBLIC SAFETY CAMPAIGN IN OTAGO
across all available media – including dailies, community newspapers, schools, public libraries, council service centres, magazines, online noticeboards, radio, television, instant text messaging, flyers, billboard posters etc
—we have missed it.

It’s not ‘just’ dangerous poles and lines – it’s the condition of the other dangerous and degraded network assets (including conductors, transformers, cast iron potheads, cables, oil-filled switchgear, airbrakes etc) that the public needs to be concerned about.

Aurora Energy is NOT telling you about these : the condition of other network assets after 20-30 years of Dunedin City Council-owned companies’ inept management and criminal neglect of Otago’s power supply.

What would make the best Public Safety Campaign ?

****

The Aurora report by Deloitte made public on 12 December 2016 says:

Refer page 8 (1.5.9 Summary of Recommendations | Health & Safety), and page 31 (4.6. Health & Safety recommendations) – bolding by whatifdunedin:

The Board and management of Aurora need to adopt a more transparent approach with staff and the public. There needs to be acknowledgement of the state of the network along with detailed plans on how these issues are going to be rectified.

****

ODT 13.12.16
– “The Deloitte report did not include a detailed investigation of health and safety issues, but said risk had been increased by a lack of investment. “It is inevitable that this increases the level of risk inherent in the network that could have implications for staff and/or members of the public,” it said.”
– “Mr Cull also refrained from saying the network was unsafe, instead saying: “I don’t think it is as safe as it should be.”
– “[Richard] Healey said he was satisfied for the most part with the report, but not with the response from Mr Cull, DCHL chairman Graham Crombie and Mr [Steve]Thompson, who he said were all still trying to minimise the extent of the problem.”

ODT 21.12.16
– Grady Cameron: ““The accelerated programme uses additional internal and external resources to get the job done quicker. What won’t change are the safety, risk management and work practice measures we have for the safety of workers, contractors and the public.” The programme would prioritise the removal or repair of condition-zero poles close to schools, camping sites and other “high social” areas.”

ODT 24.12.16 ‘Poles spared as condition reassessed’
– “[Queenstown Lakes Mayor Jim Boult] asked Aurora to stabilise or replace condition-zero poles in the Queenstown, Wanaka and Arrowtown central business areas before Christmas.”

It’s not just about the poles.

—

Related Posts and Comments:
12.12.16 Deloitte report released #Delta #Aurora
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
6.1.17 Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

█ For more, enter the terms *delta*, *aurora*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* 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.

Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

Four “condition zero” poles identified in Upper Clutha as needing to be replaced or reinforced before busy holiday period.

Other poles inside camping grounds identified as needing to be checked regularly by Delta staff during same period.

### ODT Online Fri, 6 Jan 2017
Problem power poles getting regular checks
By Tim Miller
Potentially dangerous power poles in Upper Clutha camping grounds are being checked regularly by lines company staff over the holidays. Before Christmas, Aurora Energy identified and checked the condition of poles in what were considered high-traffic holiday areas, such as camping grounds and parks in Upper Clutha. The company consulted the Queenstown Lakes District Council to identify the high traffic areas.
Read more

█ All 1181 condition zero poles in Otago expected to be replaced by April 2017.

****

At Facebook:

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Related Posts and Comments:
1.1.17 A successful Lines company….
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
28.12.16 Just beginning…. inquiries into council company rogues
27.12.16 Michael Lewis : The Undoing Project —Interview… #RNZ
25.12.16 The very idea
22.12.16 What GIVES : Aurora/Delta/DCHL/DCC…Energy Safety…ComCom ??
20.12.16 Aurora/Delta : RNZ’s Kathryn Ryan with Rod Oram
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
16.12.16 Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code…
15.12.16 DCHL/Aurora/Delta unravelling
14.12.16 Bev Butler queries invoices for Delta hospitality at Stadium #LGOIMA
14.12.16 Aurora/Delta : Richard Healey on the [SOON departing] CEO
13.12.16 DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases
12.12.16 Deloitte report released #Delta #Aurora
9.12.16 Deloitte report pending —Public Notice at ODT | Facebook entry
7.12.16 Delta/Aurora : Nobody’s willing to call it after misrepresentations
7.12.16 Audit and Review, Deloitte
3.12.16 Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation…
1.12.16 Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Hilary Calvert on Deloitte report for Aurora/Delta

ODT 30.12.16 (page 12)

Aurora – Safety webpage (detail) 30.12.16

WorkSafe New Zealand
Contact WorkSafe 0800 030 040
█ http://www.worksafe.govt.nz/worksafe

Energy Safety
Part of WorkSafe New Zealand, Energy Safety acts as the regulator for ensuring the safe supply and use of electricity and gas in New Zealand. Energy Safety is responsible for providing an effective investigation, compliance, enforcement, and conformance regime for achieving electrical and gas safety outcomes.
█ http://www.energysafety.govt.nz/

Note: On Monday 4 April 2016, the new Health and Safety at Work Act 2015 (HSWA) came into effect. HSWA repeals the Health and Safety in Employment Act 1992, with immediate effect.

‘Delta’ bovver boys by Douglas Field 29.11.16 (detail)

On 19 October 2016 former Delta manager Richard Healey went public about workplace and public safety concerns at Dunedin and across Otago via TV3’s Story (newshub.co.nz).

From 19 October through November posts and comments at What if? Dunedin, including those by Richard Healey, focused on the dangerous network, and poor governance within the council owned companies Aurora/Delta, within the council’s holding company DCHL, and within the duly elected Dunedin City Council itself [relevant trimesters].

The full extent of the dangerous and deliberately degraded network is attributable to criminal negligence and extreme mismanagement of financial resources (public funds).

The young inexperienced chief executive of the companies Aurora/Delta, Grady Cameron, has personally resisted taking any blame for the dangerous network – note, the findings and advice of the 2010 report by LineTech Consulting, commissioned shortly after Cameron’s appointment, have failed to flow into various Asset Management Plans drafted by Aurora, subsequently.

As a result of Richard Healey’s revelations three investigations were to take place:

1. Deloitte report for DCHL (released 12 Dec 2016)
2. Energy Safety (WorkSafe) investigation (no date given for release)
3. Commerce Commission investigation – industry regulator (no date given)

The courts await.

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I N ● J U S T ● O N E ● M O N T H

Related Posts and Comments:
28.12.16 Just beginning…. inquiries into council company rogues
27.12.16 Michael Lewis : The Undoing Project —Interview… #RNZ
25.12.16 The very idea
22.12.16 What GIVES : Aurora/Delta/DCHL/DCC…Energy Safety…ComCom ??
20.12.16 Aurora/Delta : RNZ’s Kathryn Ryan with Rod Oram
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
16.12.16 Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code…
15.12.16 DCHL/Aurora/Delta unravelling
14.12.16 Bev Butler queries invoices for Delta hospitality at Stadium #LGOIMA
14.12.16 Aurora/Delta : Richard Healey on the [SOON departing] CEO
13.12.16 DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases
12.12.16 Deloitte report released #Delta #Aurora
9.12.16 Deloitte report pending —Public Notice at ODT | Facebook entry
7.12.16 Delta/Aurora : Nobody’s willing to call it after misrepresentations
7.12.16 Audit and Review, Deloitte
3.12.16 Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation…
1.12.16 Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Mobile substation Willis St, Harbourside 12.11.16 [photo: Christchurch Driver]

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code brown and farting in church

Received from Christchurch Driver [CD]
Fri, 16 Dec 2016 at 1:04 a.m.

Your correspondent has been spending some time in airport bookstores recently, and it is hard to escape the plethora of get-a-plan-and-get-your-life-in-order books that seem to breed like unwanted spawn in such places.

While your correspondent has no truck with such boilerplate muck, he will admit to a quiet sense of satisfaction this week of some goals achieved. It is a good thing to have a goal, and a plan to get there. This year, your correspondent was disgusted by the arrogant lawlessness and simply fantastic level of self interest and waste of public funds by DCC and DCHL directors at the Noble subdivision, Yaldhurst. He made it a goal to put his shoulder to directorial posteriors and assist in the push of the dismal Delta directors into the Delta wood chipper (leased of course). Aided by some insider knowledge (what? – reveal my sources – never !) and plenty of tangential side trips, your correspondent is proud to think he has helped (in some small way) What if? and the majestic Richard Healey achieve a clean out at Aurora and Delta.

This week’s dismissal of Parton and McLauchlan is the start, and more will follow.

Mr McLauchlan’s risible statements in the ODT yesterday show your correspondent was 100% correct when he predicted that blame would be sheeted home to That Bad Man, John Walsh.

Mr McLauchlan’s arrogance was in full view with his claims that his decision to step down was unrelated to the billion dollar problem he has co-authored. Mr McLauchlan cannot admit what all of Dunedin knows – he troughed literally while lines exploded, and failed as a director. To do so would jeopardise his other sinecures, and Mr McLauchlan is nothing but self interest. Mr McLauchlan had absolutely nothing to offer the DCC, Delta or DCHL, and we should be at least grateful to Mayor Cull that the scales appear to have finally have fallen from his eyes and he sees Mr McLauchlan for what he is.

Let us not forget the most telling example of Mr McLauchlan’s invertebratedness : In the 2007 directorial decision to waste $8-9M at Luggate Mr McLauchlan’s sole contribution was : “If the other directors agree the I agree”. Not forgetting also that in the case of the Scenic Circle Dunedin City legal dispute with the JV partner, Mr McLauchlan was found by the Court to be an unreliable witness.

Mr McLauchlan is so toxic he doesn’t just need to be signposted, he is a walking talking accounting contamination.

On the subject of contamination, Kyle Cameron – stand up and take a bow, Kyle Cameron! – has made it very sure that Grady Cameron will never lead either of Delta or Aurora, by recommending that they need separate CEOs. As Mr Healey has said, the board will do to Grady what he has done to many others – disestablished their positions, creating new roles, and of course Grady will not quite have the “most appropriate skill sets” for either role. Sorry about that old chap, terribly close call of course, better luck next time– (in another continent please).
Grady, you have just been right-sized.

Another right-sizing would be to appoint Kyle Cameron to the Aurora board, and remove former ORFU/Highlanders director Mr Thompson with links to the $5M ORFU pokies scandal. Mr Thompson is tight with Mr McLauchlan of course, Mr McLauchlan being the Chairman of the Highlanders at the time the South Auckland pokies scandal was in full swing. McLauchlan – scandal – bees – honey.

Not right-sized, of course, is the matter of the Aurora replacement budget. We all know – now – that Aurora were going to spend $443M in deferred maintenance over 10 years (yes, stop dissembling Grady, it’s $443M, not $417M, but what they haven’t set out is where the money is coming from. Lines charges are fixed, and in very, very broad terms if we, the ratepayers, have to spend $443M to basically maintain what we have – then the very big question is – what is the depreciated, deteriorated asset worth …right now?

[An alarming example that comes to mind is the DCC purchase of the Dunedin Railway Station in the early 1990s. A wonderful asset now (pity about the decks) after a number of millions have gone into its restoration and upkeep over a 10-12 year period ….but what did the DCC pay ? ….the answer ? precisely one dollar.]

Now the Aurora 2016 Annual Report says in its headline “Trend Summary” (aka the good news feel-good piece early in the report at page 12) is that the ratepayers have equity of $183M in Aurora, and equity to assets is 42.1%, but unsurprisingly (this is Grady and the gyroscope we are dealing with here) the very bad news – the debt is $253M and is not going away – doesn’t quite make it into the good news piece.

So if we are charitable and assume that only say $250M of the $443M is actually for direct Dunedin infrastructure renewal and the balance being for actual expanded capacity then, then $250M of shareholder equity is needed for the upgrade. But wait Batman ! We only have $185M of equity. Holy exploding potheads Batman !! What do we do ? Batman: Elementary, my dear Doctor Parton —In the immortal words of Christine Fletcher, mayor of Auckland in 1986 when asked the same question by Fletcher Construction (of the cost to finish the Aotea Centre), “That’s what the ratepayers are for.”

Readers, you might well be thinking at this stage, CD has it wrong again – when I put in a new kitchen and bathroom in my villa in Belleknowes, it was worth more, so it didn’t matter that there was more debt ….because the asset was worth more. However, the value of power networks is determined by the Commerce Commission, who regulate what amounts each network can charge ….based on the value of the asset. Your correspondent surmises that the next scandal to unfold at Aurora is that resident Delta toxicologist, Matt Ballard of Capability and Risk, has overseen a massive overstating of the present value of the network. The bottom line is : with $250 – $400M of work needed FOR MAINTENANCE, ie NOT GENERATING EXTRA CAPACITY, it is worth nowhere near $436M right now. What does that mean? It means, readers, that the “jewel in the crown” of the DCHL, our cash cow HAS NO SHAREHOLDER EQUITY and has 100% debt to equity. Hilary Calvert is correct – if this were DC Ross, or any other private company, the receivers would have been called in long ago. However, accountants like the caustic Mr McLauchlan prefer companies with no shareholder equity because the returns on equity are out of this world…. until something happens.

Readers, what dissembling Mayor Cull will never tell you is that just like in Central Otago, as helpfully described by Nick Loughnan in the ODT a few weeks ago, you are about to experience in your future either some eye watering rates increases or, if the Commerce Commission allows, some similar exponential line charge increases. It’s one or the other. There is no other way.

Mayor Cull is aware of the consequences set out above : he said at the outset of Mr Healey’s crusade that he did not want public confidence shaken.

The questions or scenarios above are not pleasant – as the biblical line goes, these are hard questions, who can answer them ? They are the lines industry equivalent of farting in church – rude, inappropriate but better to get it out in the open before there is a big mess (or at least know the mess is coming). Yes, the air will be blue for a while – a long while. Messrs McLauchlan, Parton, Kempton, Frow, Wood, Thompson have done more than farted, they have created a stinking “code brown” mess. They will not be missed.

[ends]

*Note: New Zealand Companies Office records show McLauchlan and Parton ceased being directors of the Aurora/Delta Boards on 12 December 2016.
Aurora Energy | Delta Utility Services

Legal advice to the DCC on new 3-term limits for CCO directorships ‘may have’ forced this change. Debatable.

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: markeweebly.com – farting dog by mark cable, tweaked by whatifdunedin

Delta’s PR consultant

WHEN Delta’s ‘award winning’ young executive Grady Cameron, the Delta Board – woebegone* directors Ian Parton (from 25 Oct 2012), Stuart McLauchlan (1 Jun 2007), David Frow (25 Oct 2012), Trevor Kempton (1 Nov 2013) and Stephen Thompson [Deloitte!] (1 Jun 2016) – the rotten-tooth chair of DCHL Graham Crombie, and the Mayor of City Liabilities and Risk Dave Cull FAIL to Communicate Honestly with the concerned public on Delta’s utter degradation and collapse of Our electricity network —What Do You Do ?

You send in the crows or, a PR clown.

None other than public relations consultant and former broadcaster Spiro Anastasiou. Mr Ana-sneeze rates himself as “a strategic communications specialist with extensive experience in managing issues of public and political sensitivity”. The newest partner in SenateSHJ’s Wellington office, who heads their government relations practice. He returns to consulting “from a role leading strategic communications at the Ministry of Health where he managed the Ministry’s public information programme during the Swine Flu pandemic and was seconded to the Canterbury earthquake response in the All of Government communications role during the two and half month state of national emergency”. Ana-sneeze joined the Ministry of Health “….after more than 10 years consulting in a range of sectors where he provided strategic advice and tactical support to CEOs and senior leaders. This included specialist projects such as industrial relations and change, many with a very high public profile.” Ana-sneeze’s strength is his experience in “….building successful working relationships and a proven track record in government relations. He has excellent media and communication skills developed during a 15 year career in broadcast journalism before he entered consultancy….a native Wellingtonian [blahblah] He enjoys reading and cooking, is a keen fisherman and an enthusiastic golfer.”

Let’s see where this goes —and if Grady and Spiro darling, are to be seen golfing together or co-occupying Delta’s corporate box at the Stadium – on which we have cameras trained. It was bad enough having to secret-squirrel GPS trackers to All (excessive numbers of) company vehicles two weeks ago.

*Understatement, meaning incompetent and grossly negligent.

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The Varmints:

● Delta Utility Services Ltd http://www.companies.govt.nz/co/453486

● Aurora Energy Ltd http://www.companies.govt.nz/co/471661
[Mr Thompson of Deloitte appointed 20 Jun 2016]

● Dunedin City Holdings Ltd http://www.companies.govt.nz/co/559098

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicFail —Noble Subdivision : [rephrased] Conflict of Interest

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

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Received from Christchurch Driver [CD]
Sun, 13 Mar 2016 at 6:00 p.m.

Dear Readers and What –if Mobsters

Your correspondent is given to understand there are several of you who enjoy his posts, which is certainly gratifying to him, if not to the DCC. However readers are taxing mistresses, they demand fresh and current material for their reading pleasure.

Discerning readers of taste and sophistication, of which you are without exception, are firmly of the view that there is nothing as old as yesterday’s news, and tonight’s post is indeed recycled and somewhat elderly. But wait, as Noble Investments Ltd said to the Judge Osbourne, I can explain why I have reneged on my obligations….

This week Mr Graham Crombie did more than re-release Delta CEO Grady Cameron’s press release. He advised What if? that he considered this post below “defamatory” to Mr McKenzie. And said that in effect he will soon have a letter from his lawyers about this. Although, What if? hasn’t actually seen the letter yet. We think it is in Mr Crombie’s other pocket, tangled up with some minties wrappers and the latest Harcourt’s update on the Noble Subdivision mortgagee sale process. Yes, that document has gone missing too.

This Correspondent was cut to the quick. Him ? Defamatory ? A Tom Kain Klone ? Forsooth, he faints at the sight of his own blood !

Friends, Romans, Dunedinites, I come not to bury Mr McKenzie but to praise him. (Eventually).

Here is the post, with all traces of defamation removed…. for Mr Crombie’s reading pleasure….

****

Certain of you, have commented how in recent Council meetings DCC GCFO Grant McKenzie has several times now said he has a “conflict of interest”, when the question of the DCHL financial performance is raised by Councillors. He does not look comfortable in those situations.

OK, so what is this conflict of interest ? Mr McKenzie is the financial eyes and ears of the DCC. He is employed to preserve and maintain the financial stability of the DCC. This includes managing the hundreds of millions of debt that the DCC and its DCHL companies have; and having full oversight of the DCHL companies, which are in theory meant to be significant revenue generators for the DCC. (But, as Mr McKenzie admitted to Cr Lee Vandervis recently, DCHL companies will generate ZERO income (ie dividends) to the DCC for the next three years at least). However, despite the lack of dividends, they are still very significant DCC assets and it is completely right that Mr McKenzie should know in detail what is going on at DCHL.

This correspondent does not see how a conflict of interest can arise.

DCHL companies, owned by DCC, are for the sole purpose of generating a financial return to ease the rates burden. The historical amount of contributions provided by DCHL is shouted from the rooftops at every available opportunity by DCHL boosters. To this correspondent, there are only two ways in which Mr McKenzie could have “a conflict of interest” as he describes it. One is if the actions of the DCHL companies exceeded the risk profile that Mr McKenzie felt was appropriate for a DCC owned entity. The other is if the DCHL Companies were not in fact providing full or accurate information about their activities or intended activities to DCC or the elected representatives, and placing DCC at risk that way.

Readers, and Mr McKenzie, need to remember that Mr Larsen said in his report that the DCC needed to have a very low threshold for commercial risk, and much better communication. Mr McKenzie is there to make sure that DCHL doesn’t exceed a very low risk threshold and to tell us what he has found there. Tick the boxes for those items.

But who is paying Mr McKenzie ? The answer is the DCC. Therefore Mr McKenzie does not have a conflict of interest. He has a clear obligation to disclose to Council and ratepayers anything that is of concern at DCHL. He is not paid by council to shuffle from one foot to the other and claim a conflict of interest when asked questions of DCHL financial performance.

We should spare a thought for Mr McKenzie. He is the senior DCC staff member that has to represent the DCC’s interests. Those interests, first and foremost are to ensure that those DCC owned DCHL companies operate with a very low threshold for commercial risk. On the other hand, against him are legions of DCHL directors, who, if nothing else, appear extremely good at sugar coating bad news, or cloaking it in such a way as to make discerning the facts extremely difficult. (Mr Crombie, please read the Auditor-General’s report before you go reaching into your pocket). Add that to the subtle and not so subtle peer pressure, and it is easy to see Mr McKenzie has a tough job safeguarding the interests of ratepayers in respect of DCHL.

Refer to the video record (Part 1 and Part 2) for the full council meeting of 22 February 2016. This correspondent believes there is a (very) high possibility Mr McKenzie has not been told the full facts about Delta at Noble, or it has been spun to him with a few key, inconvenient facts omitted. If this is in fact correct and he acknowledged this, and then advised the city what he does know and provided an accurate assessment of the actual risk to ratepayer funds against the allowable “very low risk” threshold, he would have the support of DCC upper management and probably a job for life – if he wanted it.

Mr McKenzie would not have to look too far to find inspiration or a precedent in Dunedin. Just a couple of blocks away at the Hospital in fact. In 2008 the recently appointed Health Board Chief Financial Officer, Robert Mackway-Jones, discovered some unusual transactions that was of course the $16.9M Michael Swann fraud. Mr Mackway-Jones didn’t let up, pushed the issue and found that neither the Board Chair, Mr Richard Thomson, nor the Board CEO, knew of the transactions. Mr Mackway-Jones was the hero of the Swann case; and Mr McKenzie only has to present the facts to Dunedin ratepayers to achieve the same status.

This correspondent understands Mr McKenzie is already well regarded within DCC upper ranks. But if he did this he would be so popular with Dunedin ratepayers he could run for Mayor next time around….

Dunedin ratepayers just need Mr McKenzie to represent their interest, and forsake the tea and cakes, and mutual backslapping with DCHL Directors.

This will mean clashes with the DCHL directors at times……..

Tis food for thought, mobsters (as the Clash would say…. Revolution Rock, London Calling, 1979).

—

Related Posts and Comments:
● 11.3.16 Delta peripheral #EpicFail : Stonewood Homes & ancient Delta history
● 6.3.16 Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions
● 6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
● 5.3.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
● 4.3.16 Delta —Noble Subdivision #EpicStorm Heading OUR WAY
● 4.3.16 Delta #EpicFail Noble Subdivision : Councillors know NOTHING
● 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 Healthy views Monday midnight to 6:00 p.m.
● 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

● Gold Band Finance Prospectus No. 31 Dated 22 April 2015
View this 126pp document via the NZ Companies website at: https://www.business.govt.nz/companies/app/ui/pages/companies/321896/documents — go to Prospectus uploaded 23 Apr 2015 14:33

● 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

*Image: the-rudy.com – The Clash Revolution Rock w2 tee

Delta peripheral #EpicFail : Stonewood Homes and ancient Delta history

Received from Chrsitchurch Driver [CD]
Fri, 11 Mar 2016 at 1:35 a.m.

Your correspondent is going to meander down some tangential subdivision side streets tonight (not the main collector road, the excavator won’t fit on those….) and consider the curious case of Stonewood Homes.

It was probably inevitable given the very shallow gene pool that South Island companies fish in for independent directors, that a name would pop up that had also had some previous form with Delta.

However, before we excavate that particular trench, let’s consider why the shoring gave way on Stonewood, why the temporary support from the bank buckled and the subsequent structural failure – (the engineering metaphors are flying thick and fast tonight….)

Your correspondent is very bemused at the vast sums that a large number of building and engineering companies seem to be able to generate – in the negative. An internet search shows a long and regular list of failures. (Delta Civil Division would doubtless have joined them had it not had ratepayer funds to prop it up). Hartner Construction in 2001, about $20M, Wellington Construction in 2012 (unknown), Mainzeal Construction in 2013 (between $60-130M, dependent on if related party transactions can be unwound) and, closer to home, Southland’s own Amalgamated Builders (also with a branch in Dunedin) who managed to lose $20M in just two years when they bought a reputable Auckland company, Goodall Construction, renamed it Goodall ABL and then proceeded to destroy it in 2001.

There is some illuminating information online that shows the insane amount of risk that companies in the construction sector assume for what appears to be very little reward.

In the ABL Goodall case, property commentator Bob Dey described Goodall ABL as “a victim of trying to win market share on no margin, with a maximum guaranteed price contract in place”. Quite why anyone would seek to perform somewhere between $60-80M of work in two years for no return sounds like Delta-level stupidity, and certainly, the result was the same : ABL Goodall went so comprehensively broke, mainly with subcontractors’ money, that it was a major catalyst for the Government of the day to introduce the Construction Contracts Act in 2002 which provided some protection for Subcontractors. Proof that Southlanders do have some uses other than milking cows (readers, I jest).

Delta may yet provide compelling evidence for the Government to remove the “power of general competence” that Territorial Authorities received from the Government in 2002 that started many down the path towards illusory piles of gold that vanished in a mirage, along with a lot of public funds.

Memo To Mr Crombie : The CCC have admitted defeat and are trying to sell their Delta equivalent, City Care : why not join up and make it a two-for-one deal ?

But back to Stonewood. A trio of heavy hitters arrived in February 2014 to help fix the Stonewood Homes brand. In the press release it was noted that in 2013, Stonewood had consented 407 homes, had a turnover of $133M, and was aiming for 500 consents in 2014.

Your correspondent now will do something unheard of – making excuses for Delta…. as follows :

Building houses is not the same as civil contracting or commercial building. Those sectors all indulge in unique one off projects, with different specifications, different designers and engineers who have different standards. Lots of risk with ground conditions, legal disputes are legion.

But “group” housing is just different variations on the same cookie cutter. Standard designs, tweaked a little here and there, flat sites, lots of repetition, production line type processes. Houses started and finished around 14-16 weeks. Deposits before you start, a sales force to keep the numbers flowing. Any amount of back costing and analysis off repetitive designs to check what the numbers should be. It’s all been done before, lots of other companies are doing it so “benchmarking” your company against your competitors is easy.

Stonewood weren’t building difficult or expensive homes : Their average house cost around $325,000 in 2013. (Turnover of $133M for 407 homes).

Receivers KordaMentha confirmed that Stonewood had built up “significant” debt since the earthquake. Let us assume that Stonewood’s losses began in 2012 continuing in 2013, 2014, 2015. The loss is currently $30M. Your correspondent understands that the ASB is owed $5M and that typically, of the 110 houses underway at any one time, only 30 were profitable, and this was known within the company.

That Stonewood were unable to make any money at all, but instead went deeper into debt over a four-year period of huge demand is certainly testament to some Delta-level management deficiencies. One, or one and a half years of losses is grave but understandable, two to three is indefensible, and four years just plain carelessness !

Assuming an average turnover of about $115-120M per year (ie a peak turnover of $133M in 2013), this means that each year they lost $7.5M on average. (It was probably less in 2012, a lot more in 2015).

Put another way, on every house they built, over a four-year period, they lost around $21,000. Yes, they can definitely have a seat at the Delta table. And one Stonewood Director has sat at that table before, and that is Mr Jim Boult.

Now Mr Boult, while no Tom Kain in terms of litigation, certainly knows his way to his lawyer’s office, so this correspondent shall confine his comments to the facts :

Mr Boult, you may recall, had a 50/50 Joint Venture (JV) with Delta on the failed Luggate Development, where Delta lost $5.9M. Delta’s terms there were similar to Noble : A $5M advance to cover the subdivision work, payable only when the sections were sold.

Mr Boult utilised a valuer on behalf of the JV who had previously valued the land for his company. The valuer, in calculating the value of the land assumed a figure of $55,000 per section for Development costs. The actual cost was $105,000 per section. The valuer assessed the value of the land Delta bought a 50% share in, at $10.7M. There were potentially 172 sections that could be developed on the land. Six of the 172 sections were sold. The remaining land, with (a relatively small amount of) Delta’s improvements, was eventually sold…. for $1.5M. This information is all contained in the Auditor-General’s Report (14 March 2014).

A small but noteworthy detail included in the Auditor-General’s report was that the terms of the Joint Venture meant that Delta staff were not paid for any time they spent on the JV or the project, unless it was directly related to the Civil Work. A Project Management firm, Signal, was employed to manage the project. However Mr Boult sought and received $5,000 per month “for his time” spent on the Luggate JV.

Back to Stonewood, it turns out that Mr Boult was unable to make any difference to turn around Stonewood’s fortunes in 2015. Mr Boult’s enthusiasm for Stonewood : “I am truly delighted to be the chair and help guide the company in its future direction” lasted just 12 months. Nonetheless he obviously saw something he liked at Stonewood as he confirmed last week that he had quit as a Director of Stonewood on 1 February 2016, because, in concert with some employees of Stonewood and some franchisees, he was trying to buy Stonewood. This seems unusual behaviour for the chair of a large company, but then your correspondent is not a member of the Institute of Directors, and is uncertain of the usual directorial protocols about directors or chairmen of the board trying to buy a company they just resigned from last week. Perhaps a reader experienced in such matters could provide enlightenment.

Yes readers, I can sense your impatience : Join the dots you say ! This correspondent’s opinion, and it is only an opinion from the outside looking in, is that Mr Boult, was looking to buy not only Stonewood, but is most likely involved with a mortgagee sale bid to purchase the Noble Subdivision at Yaldhurst. The intention being that Stonewood would be the builder of the subdivision, both effectively controlled by Mr Boult.

Mr Boult knows the subdivision business, and he now has an inside view of how housing companies are run (or more accurately, how not to run one).

Despite Mr Boult’s defeat at the hands of the Brothers Chow in respect of Stonewood, a bid for Noble may well be attractive to him.

Now given Mr Boult’s history with Delta, it would seem highly likely that if this were the case, there would have been some contact between Mr Boult and his people and Delta.

Can Delta or its Directors or Mr Crombie confirm ? And of course as is the refrain, that no more public funds will be put at risk ?

—

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:
● 10.3.16 Noble Subdivision next on the shopping list !!! You couldn’t…
● 6.3.16 Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions
● 6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
● 5.3.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
● 4.3.16 Delta —Noble Subdivision #EpicStorm Heading OUR WAY
● 4.3.16 Delta #EpicFail Noble Subdivision : Councillors know NOTHING
● 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

● Gold Band Finance Prospectus No. 31 Dated 22 April 2015
View this 126pp document via the NZ Companies website at: https://www.business.govt.nz/companies/app/ui/pages/companies/321896/documents — go to Prospectus uploaded 23 Apr 2015 14:33

● 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

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

*Images: (top) stonewood.co.nz – Chow Bros | stuff.co.nz – Jim Boult by Stacy Squires

Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions

Received from Christchurch Driver [CD]
Sun, 6 Mar 2016 at 10:23 p.m.

Mr Crombie has spoken. A press release on Thursday : Something old, something new, something borrowed, with no clue.

Your correspondent has a theory in relation to Mr Crombie’s press release. Your correspondent surmises that a copy of Delta CEO Grady Cameron’s press release appears to have stuck to Mr Crombie’s saucer (stress – jiggling – spillage !!) when he was having tea and cakes in Mr Cameron’s office last week, and Mr Crombie absent mindedly put it in his pocket. Mr Crombie being a busy man then noticed it a few days later amidst some empty Cadbury Favourites wrappers and Kit-Kat bars. Thinking that he was meant to have done something, and with Grady’s cell phone off, he panics, and emails off the release, which of course is a re-run of Mr Cameron’s effort.

Mr Crombie did say there had been “some misinformation” about the mortgagee sale process. There certainly has, and it is all from Delta and its directors.

Your correspondent and Delta are of one mind here : There is no need for any confusion, Dunedinites will have a lot less suspicion and worry if we had accurate information that Delta and its Directors were not the white collar robbers of the DCC public purse that your correspondent has made them out to be.

To this end, some public minded citizens might want to put in a LGOIMA request, or perhaps write to the ODT with the following questions for Delta, to assist with the excellent What if? efforts on Noble to date.

Let us relax with a cup of Bell’s best and have our fears assuaged. Or perhaps, let us watch the twists and turns of outrageous logic that Mr Cameron will use to explain away these very simple questions :

How much of the $3.3M Delta paid to “strengthen its position” has been paid to Gold Band and Avanti Finance. This is an easy one for starters – readers of course know the answer ($2.7M) because Gold Band have told us, but if Delta get this wrong, we then know it has a telling-the-truth problem as well as previously canvassed numbers, counting and comprehension problems.

What was the remaining funds of the $3.3M spent on ?

Or in case this isn’t clear enough :

How much of the $3.3M has been paid for any advice, fees, or any other sort of payment in relation to the Noble Yaldhurst Subdivision, that was not for the actual direct purchase of first mortgage securities ?

In regard to the question above, who was this money paid to ?

How much Head Office staff time has been spent on the Noble Subdivision since December 2009 and has it been charged to the project ?

Did Delta, or any party associated with Delta, instruct, or convey to Gold Band Finance in any way, that Delta would not allow Gold Band to sell its first mortgage security to other parties (ie, other than Delta) with an interest in the land ?

Can Delta confirm that it will not offer vendor finance, and will not enter into a profit / revenue sharing agreement to the eventual purchaser of the land from the mortgagee sale process ?

Can Delta confirm that in addition to the above, it will not offer any kind of assistance to the eventual purchaser of the land ?

How much has Delta or DCHL paid Mr M Frost for any services related to the Noble Subdivision since 2012 ?

Can Delta confirm that no past or present Delta Directors, and also Mr J Boult, and Mr M Frost, are not involved, or offered any kind of advice or assistance to any of the mortgagee sale bidders ?

Is it true that due to recent developments, and subsequent to the date that tenders closed for the mortgagee sale, the firm conducting the mortgagee sale process, and/or other parties, has been urging other parties, who did not make a bid, to make a bid, even though tenders have closed ?

Given that we are dealing with Delta, perhaps readers should just consider three at most per request so as not to overtax Delta capacities.

These are all critical questions. Memo to Grady and Graham : Better to answer them now, the next time these questions are asked you will be best advised to have a lawyer – your own personal lawyer that you pay for, not a Delta one – present. (Suggestion : NOT the ones that wrote the security sharing deed….). Memo to Graham : $900 a day will not go far on lawyers’ costs.

And Graham : Note to Self : Conduct cost / benefit and personal risk register of Delta involvement. (Memo to Grady : At a salary of $2,090 per working day, hire whatever lawyer you want).

Alert readers will have noticed some of these questions suggest there are yet more horror stories and shady dealings your correspondent wishes to bring to the surface. Indeed there are, but let us have Delta’s position first, to avoid speculation. Of course we will have no option to speculate if nothing is forthcoming, and speculate we will.

For your correspondent, Delta at the Noble Subdivision is the gift that keeps on giving.

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

—

Posted by Elizabeth Kerr

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

Delta #EpicFail —Nobel Subdivision : A Neighbour responds

Comment received in reply to CD’s latest post (5.3.16):

Chutchings hut
March 5, 2016 at 9:06 am

The neighbours have a history of objecting, they are not the innocents you portray. The allegations about inadequate infrastructure are nonsense.

—

A Neighbour responds
Sun, 6 Mar 2016 at 3:26 p.m.

“Chutchings hut”, your post here resembles that of C(hris) Hutching’s from NBR. Maybe you’re both?? Either way your posting here and his on NBR, respectfully, is unsubstantiated and misinformed as many have been by NIL during this sad saga. Allow me to enlighten you.

The CCC stormwater experts, an external peer review, and even NIL’s own stormwater designer Cardno have confirmed the stormwater infrastructure IS “inadequate”. Existing roads need to be dug and pipes upsized. I can send you whatever evidence you want?

Further, the road infrastructure is not only “inadequate”, it was found by the Independent Safety Audit [Dr Turner and other traffic experts] to be have “numerous serious safety issues that cause frequent serious injuries and deaths”.

This is why the Elected Council voted to quash the retrospective decision CCC staff procured non-notified to consent the unsafe roads they had already permitted to be constructed without consent.

You are right though that resident stakeholders in the subdivision (neighbours as you refer to them) have a history of objecting, that’s because they have had much to object about. Your post here that they are “not innocents”, and Chris Hutching’s information in NBR that the objections were “belated objections” … “after consents were obtained and the streetworks constructed” is not correct. Public information proves otherwise:-

• Affected residents that will have to use these roads objected from mid 2010 when the roads were being constructed without consent to grossly non-complying standards.

• NIL and CCC staff had agreed to these gross non-compliances behind-closed-doors.

• CCC staff oppressed the affected residents and denied them (and the public) their legal rights under the RMA to oppose the gross non-compliances and dangers.

• The illegally built roads were retrospectively consented 12 months after the objections, in July 2011. (This was 19 months after the variation application was made in December 2009 to make the main spine road 7.5m narrower than required. Doubling of traffic on the narrow roads due to non-notified increases in residential density and the commercial area came later).

• The Elected Council voted for the Independent Safety Audit (against CCC staff’s strong advice). It found the non-complying roads had “numerous serious safety issues that cause frequent serious injuries and deaths”. This caused the Elected Council to quash the wrong, unsafe and “unreasonable” (“RMA term”) decision that CCC staff’s oppression of affected parties and CCC staff’s false tailoring of expert reports ensured.

• Yours and Chris Hutching’s NBR misinformation on this is respectfully forgiven; many have been misinformed of facts in this sorry saga.

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.

—

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)

—

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 ????!!!!!!!

—

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.

—

Posted by Elizabeth Kerr

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

—

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

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

—

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

—

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.

—

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

—

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.

—

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

—

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 ?

—

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

—

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

—

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.

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Posted by Elizabeth Kerr

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

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

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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.

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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

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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.

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Posted by Elizabeth Kerr

Delta: Update on Yaldhurst subdivision debt recovery

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

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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]

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ATTACHMENT [click to enlarge]

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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.

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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

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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.

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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]

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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:
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.

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Posted by Elizabeth Kerr