The CST can of worms revealed to be a barrel

 LGOIMA request: CST $11.5m investigations The CST can of worms revealed to be a barrel

Dear Friends,

The attachments (included below) relating to CST spending of ratepayers funds to ‘Investigate’ options for Carisbrook are here finally exposed not as investigating, but marketing and project management already way back in 2007.

The LGOIMA request resulting in this information was made by Bev Butler.

It reveals that over $67,000 was spent just in the last 3 months of 2007 with one Auckland Marketing business. Arrow project management took $2.6+ million over the same 3 months.

Your rates were used to spin and sell you a Stadium you did not want any rates funding going towards. The trough, as you can now see, was deep.

The attachments also show which Councillors voted for this, and those who voted against.

I consistently called for CST spending information while on Council last, and was consistently denied this information. Now we can see why.

Hopefully there is still some learning to had from this information.

Kind regards,
Lee Vandervis

From: Sandy Graham
Date: Thu, 19 May 2011
To: Council 2010-2013 (Elected Members)
Subject: LGOIMA request: CST $11.5m investigations

Councillors

Please find  below a response sent today to a ratepayer that may be of interest.

Sandy

Subject: RE: LGOIMA request: CST $11.5m investigations

Dear

Please find attached a breakdown of the CST costs in relation to the investigations for the Stadium.

 I provide the following additional comments from the Acting Chief Executive, Athol Stephens, to give some context to the attached figures.

“From October 2006 to April 2009 there is nearly $17.4 million of expenditure. All of these costs are included in the total construction costs of the Stadium of $198m.

The pattern of expenditure starts with formation of the CSCT, development of the concept (mostly under Arrow International’s supervision), investigation by Horwath of the financial viability, peer reviews of the same, acquiring the land, marketing of the concept and applying for the district plan change to permit the activity.

From September/October 2008, design development begins in earnest. Design engineering and architectural firms such as Jasmax, HOK, Connell Wagner, Holmes Fire and Safety, SSDM (Sports Surface Design and Management), Rawlinsons, Hawkins and SKM (Sinclair Knight Mertz) and other smaller engineering and architectural firms begin to appear.

In March 2009 the Council decided that the feasibility of the project had been established and signed a constructuion contract with Hawkins Construction Limited on 27 April 2009. The list of expenses attached brings the Council, by and large, to the point where design, cost and operating viability has been established and actual construction can begin. All these costs have been included in in the total cost of the Stadium.

The Trust costs are salaries and wages, communications, advertising, events, commissions, legal services, consultant retainer expenses, marketing, sale campaigns, motor vehicle, travel and communication expenses. These expenses were advanced to CSCT in equal instalments against a council approved budget. Audit New Zealand carried out an audit of the expenditure approval processes.”

I have also included two minute extracts that provide some background information. I trust this answers your enquiry. Please contact me directly if you have any further questions.

Cheers
Sandy

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About Lee Vandervis

My name is Lee Vandervis and I was born in Balclutha 60 years ago to Dutch immigrant parents who ran a successful building contractor business. I have been passing Dad nails since I can remember and I learned to swing a hammer usefully early in life. My parents always pushed the values of thrift and a broad education. At Otago University I gained a BA in Philosophy before going to London for 5 years overseas experience, working in electronics manufacturing and rising to Production Manager of Midas Audio UK, building mixing consoles for musicians like Stevie Wonder, Supertramp and Pink Floyd. I returned to Dunedin in 1981 to have a family and set up Vandervision Lighting Audio and Video, making it Dunedin’s largest lighting hire business, and restoring heritage buildings like Dundas st Church and 401 Moray Place along the way. I sold most of my business interests when first elected to the DCC in 2004. Dunedin City Councillor profile: http://www.dunedin.govt.nz/your-council/councillors/cr-lee-vandervis
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