Council’s record with GESAC, Caulfield Park pavilion, and countless other major works has one thing in common – the doubling of costs! GESAC was supposed to be roughly around $28m. We estimate that it is in the realm of $50 to $60m. The same with other projects. Now we have the Booran Road Reservoir.
In 2008, the estimated cost was ‘over $5m’. (Minutes of 1st July, 2008). Admittedly costs have gone up over time and there are always unexpected expenses. However, should this mean a doubling of expenditure? What does this say about ‘business plans’ and sound management and oversight?
Given the way in which council provides data it is extremely difficult to come up with figures for how much this development is actually costing ratepayers. What we do know is what is contained in the minutes and to put it simply – these figures do not add up!
In 2011 the budget stated – Booran Road Reservoir – The SRP allows for the reinstatement and redevelopment of the Booran Road Reservoir Site – $4m in 2017-2018 and $3.5m in 2018-2019. (minutes of 27th April 2011) That’s $7.5 million.
In 2013 the figures became – reinstatement and redevelopment of the Booran Road Reservoir Site as Public Open space – $5m in 2015-2016 and $4.5m in 2016-2017 (minutes of June 25, 2013) – $9.5million
In 2015 this became – Booran Reserve – reinstatement and redevelopment of the former Glen Huntly Reservoir Site as Public Open Space $4.84m in 2015- 2016 and $3.93m in 2016-17 (includes State Government funding of $585k). (Minutes of 23rd June 2015)
In the meantime of course, there has been massive expenditure on a variety of tenders and other ‘expenses’. Here are some – all taken from the minutes.
- Booran Road Reservoir site – allow $50k for site investigation works. (Minutes of 1st July 2008)
- Booran Road Reservoir Consultation and Master Plan Development $60k AND Feasibility Study – Booran Reservoir – $15K (minutes of 28th June 2011)
- BOORAN RESERVOIR SOIL CONTAMINATION $60,000 (minutes of 30th August 2011)
- BOORAN ROAD RESERVOIR COMMUNITY CONSULTATION AND MASTER PLAN DEVELOPMENT – $200,000 (minutes of 2nd September 2014)
Tenders are also interesting – especially toilets:
- Toilets – ($473,000.00 including GST (1st September 2015)
- electricity station – $50,215 (Inc. GST) (MINUTES 21ST September 2015)
- The result of this tender was not published in the minutes – Supply and Installation of two double Automated Toilets – $400,000 (MINUTES OF JUNE 30TH, 2015)
- Demolition of Sections of Existing Concrete Walls, Floor Slabs, Earth Embankments andAssociated Works for an amount of $838,504.32 exclusive of GST ($922,354.75 including GST). (23rd September 2014)
- More toilets – $359,693.40
- Playgrounds – ($1,886,475.80 including GST) – 11th August 2015
- The Water Play Feature – $1.9 m – 24th November 2015
But the best is what’s in the current agenda – an estimated $4.01 million for ‘lighting and landscape works’ with only 3 selection criteria!!!! Please note that other councils often have 6 or 7 selection criteria.
Adding up these figures, the grand total is well and truly above $9 million ($7m alone for 2015/6) and we expect plenty more to be spent. Yes, there might be ‘carry forwards’ but this still does not equate with what the budget figures state. Thus, the question of ‘how much is this really costing’ is worth asking – especially in an era of supposed ‘cost cutting’ and ratecapping!
Glen Eira Debates 
April 25, 2016 at 12:11 PM
I remember the 5 million cost was only ever put forwards as the cost of getting the site back to street level, basically filling in the hole and removing the unwanted sections of old wall. And the total cost of the whole project was put at around 11million.
Is this correct?
If they are asking for another 4 mill, that’s a very significant blow-out
April 25, 2016 at 1:00 PM
Your criticism may be warranted but the end result is also important. The locals I know are all excited by what is being created in their neighberhood.. As for GESAC the business is self funding and enormously successful.
April 26, 2016 at 6:30 PM
Self funding if you believe them. What about the extra poured into carparks and staff? and the ongoing costs.
April 26, 2016 at 10:18 PM
The bookkeepers in the town hall would not know what a profit and loss statement looked like. For a start they wouldn’t factor in their own wages and overtime into the accounts for GESAC.
April 25, 2016 at 4:00 PM
Off-topic: State Government has published notice of preparation of a Regulatory Impact Statement [RIS] in relation to proposed Victorian Civil and Administrative Tribunal (Fees) Regulations 2016. Submissions close 5pm Monday 2 May. The previous RIS resulted in increases of up to 1800% for some classes of application under Planning and Environment Act that previously attracted only the “community fee”.
Despite being 120 pages, the latest proposal still lacks transparency about how certain fees are derived. The 2012 effort was blatant cost-shifting which Attorney-General’s Department subsequently confirmed [and no attempt was made to correct their wildly inaccurate Media Release either]. Latest effort perpetuates some egregious charges.
http://myviews.justice.vic.gov.au/vcat-fees-regulations-2016
April 26, 2016 at 12:29 AM
What an excellent Post focusing on ‘on time and on budget’ project implementation. Glen Eira Council administration has never bothered to stick to the fundamental principles of good management of ‘on time and on budget’ financial planning. It started with Carnegie Library, whose original budget position, was $7 million in 3 years (see 2004 Rates Package). The Carnegie Library took 5 years to build and it cost over $11 million. As a user, as ‘conspiracy1949’ says the Carnegie Library is wondeful, highly used as a community space, and one cannot complain too loudly, as really it’s worthwhile.
Just there is this nagging feeling that we are being taken as fools and should be lied to for our own benefit, so jut ‘shutup and don’t stir or complain’. There was another nagging little problem with the Carnegie Traders. They suggested that the Gln Eira Council built more parking facilities with some Carnegie Traders contributing to this idea with some assets or finances. You know what happened to this suggestion? GECC said NOPE, we’ll do it our way i.e. ‘get stuffed’.
If you want to know how GECC is doing overall with provision of Libraries, then have a look at this article of 2008 http://www.plvn.net.au/sites/default/files/buildingauditforvictorianpubliclibraries.pdf . You’ll probably come to the sober conclusion that in spite of spending lots and lots of money for libraries, we are well behind the standard requirements to provide Library and Community Hub facilities for over 150,000 people in Glen Eira.
April 26, 2016 at 1:24 PM
you might like to look at Jim Magees post on facebook (https://www.facebook.com/jim.magee2?fref=ts). He has put up a picture of one of the proposals for the racecourse (you might like to upload it here). Very hard to read the writing when you enlarge it but I can basically see it has everything that the council original plan asked for except baseball has swapped sides. Interestingly enough it looks like there are no car parks in the middle. Instead there is a multi level car park next to the grandstands. The old guineas car park seems to be raised grass seating to look over he reserve. This plan looks like it relates to a stage 2 in the project however I cannot see how the can do any of it besides building a couple of soccer grounds and the base ball area until training is removed.
April 26, 2016 at 5:01 PM
No one takes Magee seriously except himself. One shouldn’t take too much notice of what he posts as it will only lead to disappointment.
April 26, 2016 at 6:10 PM
Estimating costs is a skill. What I expect is that lessons are learned from each major project and applied to the next project so over time more accurate estimates can be made. I’m not seeing anything from Council that explains where are all the variations are coming from or that they’re learning anything from past mistakes.
April 26, 2016 at 6:57 PM
consistency is what they are after – double the price for everything
April 26, 2016 at 10:53 PM
Anon 10.18am. Glen Eira Council is subject to Accounting Standards which must be adhered to, and are subject to Audit Committee oversight, Internal and external Audit and the State Auditor General. Only a fool would make such a stupidly ignorant and uneducated comment. Why cannot you accept that GESAC is a financial success.
April 26, 2016 at 11:50 PM
I am not sure how you can measure “financial success” without looking at the consequences. Gesac has meant the destruction of a park by turning it into a car park. It has also involved the removal of open space to create more car parking in Gardener’s road. It brings cars galore increasing traffic and pollution to the area. Then there’s your so called accounting figures. Council can present any figures it likes. Whether or not they mirror reality is the essential question. The audit committee has got Lipshutz on board for eternity. He was also on the Pools Committee. I will leave the rest to your imagination. Gesac is costing money every single year and the prices keep going up and up. If it is so successful, then why keep raising the price?
April 27, 2016 at 12:06 AM
Yes. Of course GESAC is a success story and operationally it is profitable as they are trumping about. But, when one takes into account Capital used for getting GESAC developed and the fact that we borrowed money on Bank terms that are much higher than other Local Government authorities are getting then it is clear that GECC is ‘wasting’ financially money, which they could have utilised for many other Projects. The sad part is that this kind of information is NOT publicly available, because it is kept secret by the Internal Audit Committee, whose appointed members have not changed since 1996. Only recently some changes have occurred. That ‘smacks’ of ‘collusion’ if not ‘corruption’. However, it is nigh impossible to prove, because the books are accepted with appropriate modifications from time to time and only a forensic investigation could possibly uncover the ‘manipulations’ involved.
April 27, 2016 at 9:22 AM
Is GESAC environmentally sustainable, not a hope, in fact it’s running at a huge carbon deficit. Only a fool would argue it wasn’t. Only Jamie Hyam would say the GESAC was a success.
April 27, 2016 at 12:20 PM
How can people be so ignorant. The financial success of GESAC has nothing to do with the disgusting destruction of a park and unwelcome local intrusions. As for the Audit Committee they are a Committee of Council, appointed and answerable to the 9 Councillors. Cocanon have you ever heard of being a little bit pregnant. One of the two independent Members has changed and so has the Council .No changes. Cr-p. How dare you question the integrity of all Councillors, Senior Council Accountants and Directors ,Internal and External Audit and the Auditor General without any proof and on a whim. This Council is respected by all for it’s Financial competence.