Our curiosity has been aroused in regards to ‘expressions of interest’, ‘tenders’, ‘contracts’ and how little residents are actually told of what is going on with GESAC. The following information is taken directly from The Age and from council minutes.

“Saturday March 26, 2011, The Age 

Glen Eira City Council invites expressions of interest for:
Reference No.: 2011.034
Provision of Gymnasium Equipment to Glen Eira Sports and Aquatic Centre

Requirement: Provision of a suite of gymnasium fitness equipment including installation, ongoing maintenance and centre staff training.
EOI’s Closing date:15 April 2011 by 4.00 pm.
EOI documents will be available by email request to tenders@gleneira.vic.gov.au  or from Council’s Service Centre, Glen Eira Town Hall, 246-258 Hawthorn Rd,  Caulfield, by contacting (03) 9524 3203 or b from 9.30am, Tuesday 29 March  2011.

Paper copies of documents will be available to respondents upon the payment of  a non-refundable fee of $50 for each EOI document. EOI’s will only be accepted in the form and manner and at the time specified in  the EOI documents.”

In- camera items from last Council Meeting read:

12.3 under s89 (2)(d) “contractual” which relates to  supply of Gymnasium Equipment to Glen Eira Sports & Aquatic Centre  

Crs Pilling/Lipshutz

1. That Council enters into a Hire Purchase  agreement with Westpac Banking Corporation Limited for the supply of specified  strength equipment with an estimated cost to Council over 4 years of $760,000.00.

2. That Council enters into an Operating Lease with  Westpac Banking Corporation Limited and Alleasing Pty Limited for the supply of  specified cardio equipment with an estimated cost to Council over 4 years of  $277,000.00.

3. That contracts be prepared in accordance with the  documents submitted by Westpac Banking Corporation Limited and examined by Corporate  Counsel.

4. That the contracts be executed in an appropriate  manner including by affixing of the Council Seal.

5. That this resolution be incorporated in the  public minutes of this Meeting.

The  MOTION was put and CARRIED unanimously.

QUESTIONS:

  • Why would a Hire Purchase agreement be  entered into, especially since interest rates are so much higher?
  • Does  this mean that despite all the spin there is a ‘cash flow’ problem?
  • Were  there any genuine ‘expressions of interest’ forthcoming?
  • Is this  figure of $760,000 (or $190,000 for one year) included in the budget expenditure on GESAC for this year, or is this another ‘hidden cost’ to  ratepayers?
  • If the  latter, then how many other ‘hidden costs’ could suddenly materialise?

Since residents are paying for  most of these costs, we believe it is incumbent on council to ‘come clean’ and provide residents with full information as to the current state of affairs with GESAC.