The agenda items include the long awaited ‘report’ on GESAC. However, this is not a ‘report’ but only an expanded ‘minutes’ of the October 5th meeting of the Pool Steering Committee. So much for Lipshutz’s promises and the transparency of this council!

The following is made clear:

  • GESAC will not open in December
  • Council is facing a ‘liquidated damages’ suit of $1m – at this point in time. Residents should therefore prepare themselves for potentially more legal costs in the attempt to recoup these monies
  • Even after the builder has finished, there is still a period which includes ‘commissioning’ – ie outfitting. We suggest that this means that the opening will likely be in February at the earliest.

We must also take the following with a huge grain of salt:

“The project is currently under budget, partly due to the levying of liquidated damages (LDs) on the sliding scale since 19 May 2011. Total LDs are likely to exceed $1m by the end of the project. The most likely scenario is that the $41.2m construction contract will be completed for thirty-nine-point-something million”.

Again we invite readers to consider the following:

  • What is the TOTAL COST of GESAC? All along we’ve been handed the line that the cost is roughly $41m. Now there is the admission that this is only the CONSTRUCTION costs. Add in, interest,  outfitting, staff, higher purchase agreements, running costs per year and we’re undoubtedly looking at a venture that is well and truly above $50m.
  • If these LDs were becoming apparent as early as May, then why has the public continually been fed the spin that everything is on time and under budget?
  • Several assumptions are made in the above statement: (1) that council will successfully recoup its LD payments; (2) that potential legal costs will be paid by the builder and there won’t be a protracted court battle adding further to overall costs.

Finally, this meagre 3 page document (which is really one page and a half) is short on detail but long on spin. Residents still have no idea when the centre will open; how much it will cost and how much it will be up for in operating costs. And of course, there is no mention of the basketball allocation saga which was ‘promised’ by Lipshutz at last council meeting. All in all, we suggest that this is fast becoming an unmitigated disaster on all fronts – transparency; accountability, and prudent oversight.