The agenda for Tuesday night’s Council Meeting is a mixture of more gobbledygook plus a few new dirty tricks. We will go through some of these.
Pools Steering Committee Minutes – 1st December 2011.
“The builder’s revised program suggests further delays in relation to the gym and stadium. As these elements are not on the critical path, these works should not delay overall completion of the works. Unfortunately, officers are aware of other works that are not tracking as per the revised program. These delays (primarily in the pool hall) have the potential to further delay works. Officers have advised the builders of their concerns.”
COMMENT: If the gym and stadium are not on the ‘critical path’ does this mean that there are more serious problems with construction that have lead to the delay?
Under the heading Cash Flow – nothing, zilch, a big zero!
Budget/Variations
“There are a number of additional deductions under the contract. A quantity surveyor is currently valuing these works. Council continues to levy liquated (sic) damages.”
COMMENT: ‘additional deductions’ is a fascinating phrase. We suggest that what this is really referring to is that the original GESAC design is being cut back because of the cash flow crisis. Of course this will be trumpeted as GESAC coming in even further ‘under budget’. But residents should know what corners are being cut and what this suggests about the final quality of the building and facilities.
Critical Issues
The next paragraph is unintelligible and we are continually astounded at how such nonsense can be released into the public domain – “There are a number of active critical issues that officers continue to manage (some of which confidential has they relate to contractual matters). Critical issues include planning for handover of the facility from the builder, commissioning and managing delays in the program.”
COMMENT: Residents may as well forget January as the opening of the site. Again, the phasing is sublime in its attempts to camouflage the truth – “This would mean the facility would not open to the community until after the end of January”. ‘After the end of January – can only mean February, maybe even March’. But it sure sounds better to say ‘January’ rather than the later months! And no further meetings until ‘some time in January’!
DIRTY TRICKS
For the first time EVER a councillor’s ‘Right of Reply’ is published in the agenda items, rather than after it has been delivered at council meeting and then appears in the Minutes of that meeting. We can only speculate as to the thinking behind such a new ‘initiative’. Is this meant to ensure that Penhalluriack sticks 100% to the published script? That if he diverges by one single word, then Hyams and his cohorts will leap to their feet and declare a point of order?
Hyams is also very, very busy again requesting amendments to various previous minutes according to the Records of Assembly.
One other point we’ve noticed is that on all previous occasions when ‘legal advice’ and OH & S matters were discussed BOTH Penhalluriack and Newton left the room. (See 15th November for example). However, the minutes of 22nd November (after Newton has got his reappointment!) there is no mention of Newton departing even though the items cited were: “”Under s89(2)(a) ‘Personnel” of the Local Government Act 1989 re OH &S compliance” and “under to (sic) s89(2)(f) ‘Legal advice”, and (h) “may prejudice the Council or any person” regarding OHS legal advice.”
MURRAY RD DEVELOPMENT
This application is for a 4 storey building comprising 31units. Officers recommend permit for 30 units. What caught our eye again was this sentence: “In principle, there are a number of factors which make this site appropriate for medium density development at the scale proposed:
- It is located within close proximity to the Hawthorn Road tram route and shops;
- It has abuttal to a tall 3 storey commercial building to the north and a single storey commercial building to the east (both fronting onto Hawthorn Road);
- it has abuttal to two storey flats to the east”
COMMENT: When did a 30 unit development suddenly become ‘medium density’? Why the use of the word ‘tall’ in ‘3 storey commercial building’. Three storeys is three storeys surely? But what is most laughable is the logic of the argument – because of the existence of a 3 storey building and a 2 storey building then this seemingly justifies the granting of a permit for a 4 storey building! A small paragraph then follows – “Whilst the proposed development will be taller and more robust in its build form than adjoining existing development, it is considered that it represents what policy expects in terms of reasonable change to the character of this street being within a Housing Diversity Area”. We congratulate the planning department for its expertise in the use of euphemism and spin and simply wonder where in the planning scheme does the policy state its ‘expectations’ as to medium density meaning 30 units on one lot?
Audit Committee Minutes – 27th November 2011
“The Committee noted the Auditor-General’s issuing of a high risk rating for Council based on a low liquidity ration as at 30 June 2011. Officers confirmed that the overall high risk rating was due to the liquidity ration of 0.95. The CFO stated that the monthly finance report to Council now included an additional liquidity section. The CFO also confirmed that Council should continue with all planned operating and capital expenditure, but should avoid any unplanned expenditure proposals. He said that delaying any planned capital expenditures such as the roads program or the warm season grasses program may have a negative impact on future renewal costs. The Chairman requested that Councillors be made aware, particularly at the strategy workshop, of the spending impact on the liquidity ratio. He also requested close monitoring of Council’s liquidity position and asked the CFO to report back at the next Audit Committee meeting”.
COMMENT: Another Machiavellian strategy by the CFO (Chief Financial Officer)? It’s okay to spend an unbudgeted for million on extending the car park at GESAC and relocating the playground, but not okay to delay roads and sporting ovals? Again, the logic is mind boggling, especially when you consider that many of these roads are repaved yearly! All in all, we suspect that this is a not so subtle warning to councillors to watch their “p’s and q’s” and not to interfere with the grand plans laid out by Messrs Newton and co – for example such as the recent funding of Take a Break and the attempt by Cr. Magee to have public toilets installed in Bentleigh. The message seems clear – it states “butt out councillors and let us continue as we will”!!!!
Glen Eira Debates 
December 9, 2011 at 2:27 PM
What upsets me the most about this kind of rubbish is councillors and their reactions to it all. For god’s sake these damn fat cats deserve a real kick up the backside for what they produce and the rubbish that they try to pass off every single time. What we’ve got is a bunch of no hoper councillors who sit there tongue tied and impotent. How about sending this garbage back just once or twice and Newton and Akehurst will soon learn that they have to lift their game and stop playing these tricks. Every single time something like this rubbish gets through residents lose out.
December 9, 2011 at 3:21 PM
Well, well, well – just as predicted, GESAC is a sinkhole and Council is doing is doing it’s utmost to ensure that residents are informed by producing an open and transparent explanation.
Lipshutz, Head of the Pools Steering Committee, has (until October) loudly proclaimed how wonderfully well GESAC is progressing – on track to open in December. Suddenly, in October there is a slight delay and a full report is to be tabled at the November Meeting. November Meeting – the usual headings only report tabled (with minimal verbage) and a full discourse on all the programmes that will be offered at GESAC (toddlers swimming to kickboxing).
And hear we are in December being presented with utter nonsense. Councillors, especially Lipshutz, and the Administration have not done their jobs. $50+m, largest single project even undertaken by Council and nary a one does due dilligence.
The residents, who are footing the bill for this incompetence, should be up in arms.
December 9, 2011 at 4:22 PM
There’s nothing under “cash flow” but we get “reductions”. They have to be connected. Instead of top line products we could be getting cheaper and nastier stuff or maybe some things just aren’t being done. I also don’t believe this stuff about commercial in confidence. There’s heaps that we’re not being told about. We’re just the ones paying all the bills.
Not one word about the basketball allocations either even though Lipshutz promised this weeks and weeks ago. 6 months and nothing’s sorted out as yet. High Court decisions don’t take this long – but then again, this is Glen Eira – the council that is run by Sir Humphreys and not councillors.
December 9, 2011 at 5:28 PM
The Gym and Stadium are not on the critical path!!!!! Isn’t the name Glen Eira SPORTS and Aquatic Centre.
And the comment “Unfortunately, officers are aware of other works that are not tracking as per the revised program. These delays (primarily in the pool hall) have the potential to further delay works” puts paid to the Aquatic name component.
Damn right – officers should be concerned!!!!!
December 9, 2011 at 5:56 PM
Does anyone know of people who have applied for the jobs advertised for gesac? In the past couple of months, there’s been ads for swimming instructors and lifesavers. I’m thinking that if I applied for such a job and was told that the job would start in December or January, only to learn that it probably won’t start until February or March, whether I would be willing to sit and wait for the opening, or go and find myself another job. Or if I’ve been hired, am I being paid for the month or so when I’m sitting on my backside not doing a thing? Either way, it’s costing money and time. Then you have to figure that if applicants for the job have been told that they won’t start work for months and months, then why not the residents in general? There are more cover ups with this project than in Watergate and people’s heads should roll.
December 9, 2011 at 6:25 PM
We will never get to know the true cost of gesac and betcha that even councillors wouldn’t have a clue. All those busy little accountants will now probably be working their butts off switching funds backwards and forwards so that the books look all kosher and nice and make it impossible for anyone to have an idea of how much this blasted monument is costing. We’ve just learnt that gesac isn’t a 41 million dollar project. That’s only for the building. What about all the other stuff that’s going into it and then the staff on top of all this. We’re talking gazillions here – not a piddly little 41 million!
December 9, 2011 at 6:39 PM
GESAC is the tombstone for the gang of four and Newton. The cracks are appearing starting with the Mayoral vote next week.
December 9, 2011 at 9:02 PM
Could somebody please enlighten me …. what is a short (as opposed to a tall) three storey building?
December 9, 2011 at 10:06 PM
Any businessman worth a cracker would know that if you’re running low on cash that you have to either stop spending or cut back on inessentials. The reverse is happening at Glen Eira according to these minutes. I haven’t seen anything that suggests there is a plan to cut costs anywhere or at least delay them. Only the budget made the tiny gesture of halving the grass renewal at two ovals. I don’t think it would kill anyone if no ovals were regrassed for a while or if the 9 million for Duncan McKinnon was put on hold a little longer. Of course the best way to cut costs is to stop hiring overpaid staff and to cut back on the salaries of Newton, Burke, Swabey, Akehurst, Newton and Waite. That in itself could save a couple of million.
December 9, 2011 at 10:25 PM
I’ve been reading through the agenda items very carefully and as this website has reported previously, officer reports are continuing to go in secret to the specific committee rather than being tabled in council meetings. The decisions that are made on this basis aren’t that crucial on this occasion, but it just repeats the same old pattern of secrecy and subterfuge. I’m referring to the minutes of the Arts and Culture Advisory Committee. Several officer reports were tabled -for example: “Officers tabled a report on the 2011 Winter Music series” and “officers tabled a report on the 2011 Storytelling Festival” and Officers tabled a report on issues surrounding the planned 2012 Living together event” and “Officers tabled a paper on the proposed forumulation of a Community arts and culture Network to provide a formal mechanism for Council to consult with key stakeholders, etc”.
As I said, these reports aren’t earth shattering and in the great scheme of things pretty trivial. But when Council is expected to vote on the ensuing recommendations then they do become important for transparency. The Local Government act says that minutes should include the relevant documents upon which decisions are made. This doesn’t happen here and the problem stems from the Local Law where Advisory committees are excluded from such requirements. Secrecy is therefore maintained and the public has got absolutely no idea why the recommendations are what they are. I’d even go further and say that the councillors who aren’t part of this committee also don’t have the foggiest about what the reports said and why the recommendations are what they are. That this happens with all advisory committees is appalling and definitely not good governance and certainly not transparency and accountability.
December 10, 2011 at 12:15 AM
Liquidity issues = get your cheque books ready because rates are going way way up – the GESAC sinkhole is growing exponentially.
The Auditors General Report states “a high risk rating for Council based on a low liquidity ratio as at 30 June 2011 …. The CFO stated that the monthly finance report to Council now included an additional liquidity section”. Whoopdy bloody do and almost 6 months ago. Nothing disguises high risk rating = higher interest rates. Is the “additional liquidity section” to include hire purchase agreements to supply equip to the Gym which Council has absolutely no idea how to run and which, by Councils own admission, is nowhere near finished. All this equip, high interest payments and no revenue!!!!
“The CFO also confirmed that Council should continue with all planned operating and capital expenditure, but should avoid any unplanned expenditure proposals. He said that delaying any planned capital expenditures such as the roads program or the warm season grasses program may have a negative impact on future renewal costs”. Warm season grasses, you gotta be kidding me!!!! In deep financial dodo, grasses which have survived 15 years of drought (which has broken, temporarily I admit) cannot be dropped down the priority list!!!!!!
“The Chairman requested that Councillors be made aware, particularly at the strategy workshop, of the spending impact on the liquidity ratio. He also requested close monitoring of Council’s liquidity position and asked the CFO to report back at the next Audit Committee meeting”. Cutting through the spin, tell the residents we can’t spend money on projects (like toilets in Bentleight East) because they weren’t planned 5 years ago (although all demographic surveys show they should have been). GESAC is in grave peril -we need to focus on saving our a-holes. Forget about addressing any needs our questionable decisions have caused to arise.
As for the Audit Committee – the three main players, i.e. Lipshutz (Head of the GESAC Steering Committee and therefore hardly independent) and the independent auditors Gipps and McLean have held their positions for over 13 years!!!!! Just how independent is this? Manchurians recognised the need to rotate, evey three years, a thousand years ago, current standard auditing proscesses recognise the need to rotate – a shame Glen Eira Council doesn’t!!!!.
In the light of the Auditor Generals report, Glen Eira Council needs to sit down and evaluate it’s current priorities and it’s way forward. I suggest that sacrificing all for GESAC (without applying the much espoused open, transparent, and accountable policies) is not a way forward.
December 10, 2011 at 9:26 AM
Rome is burning and the Audit Committee is fiddling. Time to dump Newtons mates David Gibbs and Gary McLean and get some fresh members who are truely independent.
December 10, 2011 at 10:43 AM
A week is a long time admittedly. But, it beggars belief that nothing was known about potential delays when the GESAC website can claim “While the ‘dry’ areas (indoor courts, gym, physiotherapy, crèche and café) have made good progress, the pool hall has been delayed”. The page was updated 2nd December. Yet in the agenda for this coming council meeting there is the admission that there are “further delays in relation to the gym and stadium”. What to believe? Either problems suddenly reared their ugly head, or in typical fashion the spin doctors are working hard. After all, more people are likely to read the website than the details of a dull boring agenda item. Is this another example of the necessity to question, doubt, and read between the lines for every single word this council publishes?