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Council Health Check

17/12/2020

sanctioned

I must preface this post with an update of my situation after more than one Code of Conduct complaint brought against me for the content of my blog. The problem, I am told, is that I connect the dots for you. Apparently, I have to just point out the facts and let you connect the dots. I am not allowed to fill in the blanks and tell you what I think of the Mayor, other Councillors, or staff. So, with that in mind here is a little recap of what I have to deal with – what do you think?

Last year Councillors were presented with a report that said we had to rent a floor of office space in the Mall because we needed to refurbish the Council building, and we could only do this properly by moving a large group of staff out of the building and conducting a rolling refurbishment throughout our building.  

At the time, I said let’s be honest that once we expand into the mall we will never shrink back. The CEO assured me that that was not the case, that we would indeed give up the mall lease and return to our original footprint once the refurbishment was done.  

A few months after our expansion into the mall premises Councillors were presented with another once in a lifetime opportunity to expand into a nearby building because staff were unable to function in the workspaces of our current location. Despite the fact that when requests for more and more staff were coming through, I started asking what the cost of taking on these staff would be. At the time I was informed of the wage cost. I responded with the wage cost is only part of the cost, what about the cost of accommodation? I was assured that we would “squeeze them in.” 

In between moving staff to the mall and telling us we need to lease another building; we were presented a case of how we needed to spend hundreds of thousands of dollars upgrading the civic area of the council buildings.  

Fortunately, Councillors were able to create enough pushback to halt these endeavours by staff until a proper review of our building requirements was carried out. Had we not done so; more money would have been wasted on half-baked solutions. 

The Motueka Library was another example where decisions were made on information that was suspect at best. When the proposed new Library for Motueka was put forward there was a drive from a number of Councillors and community members to create a “hub” where the library would incorporate a new Council centre as well. 

Staff pushed back saying that the service centre was fine and we should only build a single-story library.

No sooner than Council had signed off on the Library design than a staff report came through telling us that the Motueka service centre was “not fit for purpose” and we needed to rebuild it. 

This was also prior to the staff accommodation review telling us that we needed more staff office space.  Taking all this information into account would have made a very different picture for the economics of building a multi-story library in Motueka with the ability to house more staff and serve the community well into the future. Instead, we have a barely big enough library that does not solve any of the other issues. 

Earlier this year, I was concerned with the constant proposals by staff that we spend literally hundreds of thousands of dollars, seemingly at every Council meeting, and the Councillors that were voting according to staff recommendations.  

I suggested that our Council had no idea of the impending impact that COVID was about to have on our community and their ability to fund all this unbudgeted money that we were spending (after all the previous Council spent every last cent of our debt cap and future commercial returns to fund a dam).  

Because of my involvement with the Stock Market, I was watching the global situation with COVID and the impact that it was having around the world as it headed our way. But after my comment that this Council was ill-informed, the Mayor assured me that he and the Council staff had a “pretty good grasp” about COVID and its potential impacts. 

About two weeks later the country was in level 4 lockdown, and a few weeks after that the Council voted through a rate freeze for the current year. Well informed? 

All of this continues to build on a dam that we were told had a 95% probability that it would be built for $76 million.  Or the “as good as a fixed price” $104 million dam. Currently, the dam sits at $139 million plus COVID related costs, plus other design work that was not part of the original quote. A further costing update we are promised will be tabled in February next year.  

Tomorrow we will be asked to vote on a new Long-Term Plan and there will much justification about why we need to raise the debt cap and rate increase cap. Councillors who said during campaigning that they were against raising debt caps will be arguing for it. They were also signing off on all the unbudgeted spending that has put us in this situation. 

The Mayor who campaigned that he believed he could keep us within our rate and debt caps (with his 20 years experience) by making the hard decisions, also did not make a single “hard decision” this year that would have led to us reducing our spend in any way.  

In fact, he was one of the most vocal proponents for Council giving the Nelson Regional Development Agency an extra $200 000 (he was in favour of more) for a total of $500 000 of rate-payer’s hard-earned money this year alone. What return have they achieved with this money? So far, all I have seen is a report about why they need even more money. 

To the people of Tasman who elected a “more of the same” Council, we have delivered for you more of the same. More debt, more poorly directed spending, and in my view a complete lack of accountability for the poor decisions that put us in the situation where we are challenging the leader board for the most unaffordable rates in the Country.  

That said, I wish you all a Merry Christmas, and I look forward to hearing from you as we go out to consultation next year with our proposed Long-Term Plan of unaffordable rates and skyrocketing debt. 

Filed Under: Dam, Spending, Your Say Tagged With: bad decisions, Council debt, more of the same

Spend Spend Spend

29/05/2020

Money shake down

The impact of the Government’s response to COVID-19 is beginning to be felt around the country with much more still to come as the wage subsidy is yet to run out and still no sign of a business as usual call from the Government.

In the current Long Term Plan pre-consultation Council survey 75% of respondents have said that they expected the Council to operate within the fiscal limits of debt cap and rate increases. We have a Mayor who campaigned that he believed he could keep us within these limits. Other Councillors also indicated that they would keep debt cap.

Decisions made by this Council consistently went the way of spending large amounts of unbudgeted money indicating that we had no intention of living within our means. Both staff and Councillors are now suggesting that we need to lift our debt cap.  

In the CEO’s report for the 28/05/20 Council meeting she quotes New Zealand economist Shamubeel Eaqab who seem to be the hero of the current agenda by central Government and Local Government NZ.

“We need to ask how we can come out of this as strongly as possible. Be as bold and aggressive as possible because this is truly the greatest challenge that we faced since the great depression. Invest in the social and physical infrastructure of New Zealand. That will look after our children and grandchildren, that’s the opportunity we have now.”

Of course, the Government can print money do this. Our previous council way over committed itself and future councils for the next ten years (at least) to build the Kempthorne memorial of woe. We have no headroom to be saving the New Zealand economy.

Shamubeel is also the author of the metric as provided by the NRDA (Nelson Regional Development Agency) in a joint Council workshop lead by Mark Rawson.

Every $1million of rates relief provided supports approximately 8.5 jobs in the economy (i.e. the savings created 8.5 jobs through more productive investment of that $1 million)

However every $1million of interest payments for council investments in a capital works supports 155 jobs in the economy (approximately 18x multiplier).

If the idiocy of this comparison is not immediately obvious to you (like apparently those presenting it to us) then let’s compare apples with apples.

Every $1million of interest comes with $20 – $25 million debt which would typically be spread over 30 years worth of repayments. The total cost the $1 million interest payment and 155 jobs would be in the region of $50-$60 million if my math is correct. Even if my math is not correct, it is fairly obvious that if we comparing the total cost of the $1 million in interest with a comparable amount spent on rate rebates – I think the “18x multiplier” is a sorry joke. If we take the 8.5 jobs per million of rate rebate times $50 million of loan costs then we get 425 jobs created. Compare those apples!

However, we shouldn’t let facts get in the way of the current propaganda being foisted on the Councillors to encourage their already eager ambition to spend a fortune of ratepayers money on all the planet saving wet dreams that they can come up with. Meanwhile dam costs continue to spiral ever upward.

What The Friday

Another example of how your Council consults with you because your opinion counts is the issue of Chlorination of your drinking water supply (for those of you lucky enough to be on a supply without permanent Chlorination). We are, or are soon to be, asking if you would like your health “protected” through a permanently chlorinated water supply.

However, just in case you give the wrong answer, on the 21st of May 2020 Council passed a Drinking Water Quality Management Policy. During the time of debate, I asked if by passing this Policy I was also passing compulsory Chlorination. There was some side-stepping of the issue in the staff response. So, I asked again if it was possible to meet these standards without permanent Chlorination. The response was that it maybe possible but that it would be extremely difficult and expensive.

The end result of passing that Policy is that any future consultation will be a moot point as we will consider public feedback along with staff reports and Government recommendations and come to the informed decision that we have no choice and will implement Chlorination whatever the majority result of the public consultation desires.

The fact that we have nullified public feedback before seeking it is one aspect of this process that annoys me. Another aspect is that the staff tell us that the Government is moving to require all public supplies are Chlorinated therefore, why are we wasting staff time and your money going through the motions of consultation etc by trying to pre-empt what is apparently soon to be legislated?

In conclusion, I will be very surprised if the projected debt during this round of the Long Term Plan (LTP) setting does not once again hit $300 million.

Last time there was a projected debt of $300 million the fine folk of Tasman reacted so passionately that the current debt cap of $200 million was self-imposed.

The difference between then and now is that they tell me they had no intention of spending $300 million last time but that the LTP was a wish list of all the projects that everyone thought might be nice to have and had not been refined down to actually achievable.

This time we will be spending all that money as we try and help the Government jump-start the economy, respond to the requirements of rapidly rushed through Government legislation, house the exploding staff numbers, upgrade everything else associated with more staff and rapidly advancing technological requirements, deliver on the save-the-world ideals of some Councillors, and of course continue to pick up all the liability for the runaway dam overruns.

Filed Under: Spending, Your Say Tagged With: Consultation, Debt, Tasman District Council

Spin Doctoring

11/05/2020

No logic exists in this

Dr Spin goes to work in the Council Newsline again this week (8 May 2020). See if you can spot the trend.

On the Motueka Library project:

Mayor King looks at the cost of cancelling the project as part of the decision making.

On the topic of permanently chlorinating all water supplies:

Mayor King says feedback will help us make a well informed decision

Obviously, we are a council that likes to assess all information and not a Council bent on making an ill-informed decision.

Crazy Pills GIF from Crazy GIFs

Is this the same Council that I was in when we tried to get all the information to make an informed decision around whether to continue with the Waimea Irrigation Dam?

Oh the difference that a week makes. Or is it just a change of agenda?  When we want to do something, we need “all the information,” when we don’t want to do something it is just a waste of money getting all the information because we already know all about it (or are we afraid of what might be revealed?).

Perhaps we have Third Term arrogance already too?

When the Government announced the waste of tens of millions of dollars buying back guns when they outlawed many semi-automatic weapons I questioned if they were going to ban 3D printers too. At that time, I was attacked by pro-Ardern Facebook trolls for a ridiculous statement. Of course, these warriors of the internet have no idea (like our Government it seems) that it has never been easier to download plans to 3D print all the parts that you need to convert rifles into assault rifles.

Recently, the Government announced that we were making people self-isolate when they entered NZ because of the COVID19 risk. At that time, I made the comparison to the Government’s over reaction to one lunatic with a gun and how they were now letting killers loose on the streets of NZ (unless they wanted to self-isolate). Once again, my comparison was questioned by the hero’s of the internet. A week or so later we are in level 4 lockdown to “save lives.”

The inability of people to follow a logical discussion, or to apply reason consistently, is the greatest frustration I have faced since delving into the murky world of politics.  

The second greatest frustration would be the high level of secret squirrel activity.

Take the current COVID19 situation. As a councillor, I was forwarded an update from the Covid-19 Local Government Response Unit which I presume was a regular update that I only received one of. I received it in “IN-CONFIDENCE” and was thus unable to discuss the information which contained the figures of infection by district.

There was no need for this to be withheld from the public by the Government or local Government. It may have assisted with compliance to the lockdown at least in the more heavily affected areas.

During the Pigeon Valley fire I also found that there was a lot of over-the-top secrecy protecting information that I felt should have been publicly available -that a full evacuation of Wakefield was imminent for instance. Businesses supplying food might have had interest if no-one else.

The lack of honest communication leads to social media running wild with rumours and speculation.

Or once again, are we in a situation where information is being hidden for a reason?  For instance, Councillors were never permitted to see how the Pigeon Valley Fire Mayoral Fund was distributed. Given that the Mayor and Deputy Mayor of the day were beneficiaries, and that they were overseeing the fund, you would have thought it prudent that there was open scrutiny over the distribution of these public funds?

As I finish this it has been announced that we are moving to COVID alert level 2 … but… we have all kinds of inconsistencies in how we will apply our gatherings.  You can space out at rugby matches but are not allowed to space out at church for instance. Restaurants can only take group bookings of no more than 10 but no limit on how many groups or individuals they accommodate? Schools are open so I suppose there will only be 10 to a class? Or 10 to a bus?

Good luck “team of 5 million” you are in excellent hands. 

Filed Under: Spending, Your Say

Same Again With Different Results

04/05/2020

The Council trend of more of the same continued last week, sorry, the same results after all.

On Tuesday we voted for more unbudgeted spend to expedite our Freedom Camping bylaw review. How anyone could imagine that we are going to be plagued with Freedom Campers over the next 12 months to 2 years is beyond me. Even if we were to experience previous levels by some magical doing, what projects should we chop from the work program to cover the $60 000 of unbudgeted spend?

The trouble with all this ad-hoc spending is that we are not weighting projects in any order of priority and we have no idea what other projects are being impacted (if we are not lifting the debt cap as claimed). As we would if the spend was allocated during an Annual Plan or Long Term Plan process.

The issue of Freedom Camping was a Government created one, and it requires the Government to sort it out. At the very least, the situation of non-self-contained vehicles and their rights needs to be addressed.

Undeterred, Thursday’s meeting also more unbudgeted spend allocated. This time, to consult the populace about permanently chlorinating our water supplies. Although this agenda was conspicuously quiet about the amount of unbudgeted spend required, when I asked what figure we are talking about Richard Kirby assured me it was only $15 000 to $20 000 at the outside.

Interestingly, every other time we talk about a public consultation the figure always seems to come back as at least $80 000. I guess it is not without expectation that the man who assured us the dam would not go over $83 million might have underestimated the cost of public consultation in this instance. I look forward to receiving the cost post consultation. If Mr. Kirby is correct, then it will be interesting to hear why other consultations need to be so expensive.

The question I had was that why are staff and some Councillors so desperate to push this through at the expense of holding a special consultation when the same staff report suggest that the Government are likely to make chlorination of public water supplies compulsory? It is absurd that we would jump ahead of the Government at our expense, when there is a high likelihood that the majority of our Community will respond against Chlorination – as Councillor Tuffnell pointed out.

Councillor Tuffnell’s concerns were that if the majority of the consultation respondents were of a negative view, where would that leave the Council given that Government were indicating it was necessary. Having been on the Council last term with Councillor Tuffnell I was surprised he didn’t recall the decision to ignore 80% or more of the submissions with regard to the funding model of the dam.

Speaking of the dam, I am looking forward to an update next week. It appears that the initial flurry of Shane Jones spending on water augmentation did not reach far from his home patch. Does he have any chump change left to throw at the Waimea irrigation dam? Time will tell.

If the Government doesn’t bail out the woeful project overruns, then the ratepayers of Tasman will be facing significant increases. Perhaps none more so than the water users on the Waimea Plains who bought one or two shares just to see them through a drought.

Part of the prerequisite to making the dam “affordable” was to make it impossible to own land on the Waimea Plains without being affiliated to the dam – if you wanted to do anything productive with land, or even run a few stock. So, the Council implemented some draconian water regulations that cannot be slackened off without a $50 million pay-out to our dam “partners.”

John Palmer insisted that the general ratepayer had to pick up more and more of the dam expense to make the water “affordable” for all. He admitted that the bigger players on the plains could probably afford to pay more for their water, but unless the costs were such that the small holders were able to participate the project would not work.

Well John, I am sure that these small holders are keen to hear how it is that they must wear the brunt of the cost blow outs and maintain any sense of affordability.

What was undoubtedly not explained to them was how the overruns would be distributed. The Council cannot charge water users for water. Those of you on urban supply might think otherwise, however, you are wrong. Council supplies everyone water free-of-charge. Urban users do pay for the cost of maintaining the Council supply which is apportioned according the volume of water that you use. The difference may seem subtle but has significant implications when we move to the irrigators.

The Council has the ability (and right) to apportion the dam overruns to the irrigators, even though the Waimea Irrigator Ltd contribution is technically capped. This extra charge can be done via our rating powers.

However, because the Council does not/can not charge for water, and because there are no pipes running from the dam, we cannot charge a maintenance type fee based on water usage, we can only charge per property affiliated. Currently that is set up so that the $650 000 of loan payments will be distributed according to capital value of the affiliated water users. This will be on top of the general ratepayer in the zone of benefit capital value-based contribution.

The unfairness of this becomes apparent when you consider that many of these one- or two-unit shareholders have quite high capital valuations in comparison to their water use.  Even more on-the-nose is that some of the bigger shareholders do not have land associated (or very little land) with their shares so they cannot be rated. This shortfall will be picked up by the others – including the small players that we had to “make the water affordable” for.

While I feel for the people caught out by this situation, I am still fresh from an election campaign where my efforts to point out the issues with the Waimea Dam were thrown back in my face with phrases like “short sighted,” “nay-sayer,” “political mannequin” and “against progress” (with quite a few less polite ones too). So, I guess now I get to sit back and see how “more of the same” works out for you.

What if I told you, you can't fix a broken system by voting to keep the same system

A situation that is especially concerning with a Council bent on unbudgeted spending on top of Dam overruns, and a rate freeze, to compound the issue. The Mayor who was “fully aware” of the impacts of COVID-19 just prior to lockdown while endorsing millions of dollars of unbudgeted spend is now relying on our region’s diversity to lessen the impact of local unemployment

While at the same time continuing with the Government and Local Government New Zealand policies of keeping up the Council spending to buy our way out of a recession. Twyford making threats to keep Council spending up (if we want Government money) can only be attributed to the fact that the Government are panicking that the wheels might fall off their trolley just before an election.

Whereas my thinking is more aligned with former Christchurch council finance chairman Raf Manji (also quoted in the same Stuff Article.) 

Who said while councils should be looking at their books, local government “does not have the ability to magic up $50 billion of new funding”.

Former Christchurch councillor Raf Manji believes the government should consider removing GST from rates to help ratepayers.

“Its funding options are limited and its funders, the ratepayers, are going to be under major financial pressure from the current economic shock.

“If central government is so keen to see projects go ahead, they can fund them directly, and at a much lower cost than local government.

“Whilst they have their chequebook open, they could also remove GST from rates, thus returning $750-800m back to ratepayers.”

Filed Under: Spending, Your Say Tagged With: spending, Tasman rates, Waimea dam

COVID Lock Down Update

28/04/2020

life during house arrest

As we near the end of lock down (well, at least we are allowed takeaways – right?) I thought it a good opportunity to do a stock-take. Where are we at and what is going on in Council?

Besides which my Councillor update in Newsline that was supposed to go out in the last issue (after being bumped previously) was again bumped so that we could fit in a story about ex-mayor Kempthorne getting a medal, and an article about getting better fuel economy when driving. All highly urgent uses of space during the lockdown.

Important News from Tasman District Council during lockdown
With Fuel at record low levels and the use of vehicles banned we bring you … our top tips for better fuel economy .. to show you how relevant and caring we are as a Council.

Well most of what is going on in the Council is going on under the direction of the Mayor and CEO. On the odd occasion Councillors are invited to participate via “zoom.” 

Interestingly, the Council voted to run with a zero rate increase (excluding growth, and excluding fixed charges, and oh I am sure there will be other exclusions). This is interesting because the Councillors were all suddenly concerned about affordability issues for the ratepayers.

In the weeks leading up to lockdown we, the Council, approved millions of dollars of unbudgeted spend. This despite the dam blowing out again and the ratepayer now being the sole source of dam funding. Yet we kept piling on the unbudgeted spend as recommended by some staff that appear to be completely out-of-touch-with-reality or at least with the desperate situation that many of our rate-payers find themselves.

The compassion was short lived. We had the opportunity during a dam update to ask the question what it would look like if we shelved the project for the time being. Taking into account the huge blow outs in costs to the ratepayer, no certainty that we have seen the last of them, and a recession hitting our ratepayers hard in the next few months it seemed like a prudent action to make an informed decision. However, the majority of obviously wealthy councillors were not interested in at least finding out the cost of such a proposal.

Lets just proceed at any cost because Mike Scott said it would cost too much to stop the dam and we had to just complete it. Although Mike Scott cannot give us a price to finish the dam and has no idea what it would cost council to pause the contract. “The cost of last year’s drought would probably have paid for about half the dam” he says. But again, not knowing what half the price of the dam will be, and the fact that even our worst drought in recent memory the local GDP increased it is hard to take him seriously. He must be an expert because he has a hard hat on (although this is his first dam project).

Incidentally he is the same Mike Scott that said “We have done 15 bore logs in the area and know the geology very well.

And follows it up with: However, Mike Scott, the man in charge of the dam build near Nelson, said that, in his view, that risk was not fully contemplated or accommodated in the design of the dam.
“We had to change the design,” he said.

What is probably more annoying is that in the last dam update where we were informed of the dam design change to a synthetic membrane faced dam, instead of a concrete faced dam, I asked what would this $1million to $2million in savings do to the life span of the dam. I was told there would be no drop in longevity it would last 100 years.  In this last update we are now informed that the membrane lifespan would be 50 to maybe 100 years. Which indicates a significant drop in levels of service.

And to further cast doubt on the information Mr Scott is presenting, he confirms that the manufacturer warranty is only for 20 years. It doesn’t sound like a 100 year life product to me (but I don’t have a hard hat so what do I know).

Dr Nick Smith sulking
Photo credit NZ Herald

I know that we have appealed to the Government for more money (that way only the taxpayers will be hit in the pocket). It would seem that the honourable Dr Smith is too busy throwing tantrums about being irrelevant (after all COVID-19 is all about Dr Smith) to be much of an advocate, so I guess we are relying solely on the other half of the comedy duo to petition for money for we the Lotus eaters.

It is a good job that the irrigators who bought a share or two are happy subsidising the bigger operators. As this dam keeps escalating in costs those people with a few water shares and a high capital value properties are going to face eye watering rate increases. Not only from the WIL liability, but also for being in the zone of burden capital charges, and if they are hooked up to reticulated residential supplies it will be cheaper to drink petrol post COVID-19.

Of course, business as usual does not end there. Today we approved another $60,000 of unbudgeted spend to review our freedom camping bylaw. It is obvious that hoards of freedom campers are going to descend on Tasman from the heavens over the next 12 months to 2 years that we have to push this item forward with unbudgeted spend rather than put it through the normal channels of the Long Term Plan or Annual Plan processes. No doubt it will also require extra staff to be hired or contracted in as well.

Looking ahead to Thursday there is the recommendation that we Chlorinate our water supplies full time all the time. Another agenda being rushed through under urgency because our water supplies might suddenly develop COVID-19? No figures are attached to this report, but we can assume that a consultation will be upwards of $80,000. Again, all unbudgeted spend. Perhaps we can not do some maintenance to make headroom for it. I am sure there is some more water pipes in Wakefield due for renewal that we can “sweat” another 10 years.

I am looking forward to seeing a report on how we will achieve the (almost with numerous exclusions) zero rate increase – that alone will mean not delivering on budgeted projects. Continue to load up with unbudgeted spend. And, not increase our debt cap that several councillors and staff are desperate to push up.

In the meantime, stay safe in your bubble – unless you are the minister of health, then you can go to the beach, go mountain biking, and allegedly move house while under lockdown level 4. Or go fishing if you are the deputy PM. But get arrested if you are the guy who went hunting and isn’t a minister.

First published in Latvijas Avize, Latvia, March 17, 2020 | By Gatis Sluka

Filed Under: Projects, Spending, Your Say Tagged With: spending, Waimea dam

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Councillor McNamara: As Reported In The News

  • Latest News
    • Yet Another Unbudgeted Spend
    • Dam Tax Bites Little Guys
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