Tonight’s Special Council Meeting on the aged care sell off voted 5 to 3 (Esakoff absent) to proceed with the Expression of Interest process. Those supporting the sell off were: Hyams, Silver, Sztrajt, Cade, Athanasopolous. Delahunty, Davy and Magee voted against. Remarkably, Magee spoke for the process continuing, then voted against!
Several things should be noted and we urge all residents to carefully listen to the ‘debate’.
- The con job was in full swing with Hyams, Silver, Athanasopolous, Sztrazjt, Cade and even Magee, now arguing that the resolution was NOT TO SELL, but merely to test the waters as it were, in order to see if there’s anyone out there who could provide a better service! Time and again the gallery was assured that if no such organization was found then there would be no sale. That old council shibboleth of ‘first step in the process’ was repeated ad nauseum.
- Hyams merely summed up the officer’s report but without a single word on financials. He did however comment that council had undertaken a comprehensive ‘communication and consultation’ program via its advertising, letters to residents, media releases, etc.
- The only councillor to even come close to addressing the lack of open and transparent consultation was Athanasopolous. His argument was that when Monash and Kingston decided to sell their facilities and engaged in an ‘open’ consultation process with their residents, that this lead to a ‘ton of anxiety’!!!!!!! How much ‘anxiety’ has council produced by its secrecy when residents and workers are notified by an impersonal email?
- Athanasopolous also distinguished himself by arguing that for the past 15 years council had not in its budget processes made any financial provision for the long term management of its aged care facilities. Such a statement could be interpreted in several ways of course. Either council has never placed aged care high on its list of priorities or, it has failed in its duty to consider long term outcomes given that its strategic resource plan has a ten year time span. There is another possibility here too. Maybe, just maybe, if residents had a say on what should be the priorities for council budgets, aged care would have been high on their list?
- Delahunty and Davey did argue that the potential findings of the current and ongoing Royal Commission were important and until council had the final recommendations how could they possibly know which provider would be the ‘best’? They advocated that the Expression of Interest process be delayed until the findings were made public . These are expected to be delivered in mid 2020. Hardly a long time to wait we suggest!
There was much said by the various councilors which was literally cringe worthy. If anyone truly believes that council is only ‘testing the waters’, then they have no idea of how this council operates. You do not go to the expense of lawyers, committees, probity auditors, valuations, etc. unless you know damn well you will sell. All the rest is sheer garbage designed to cover their arses for the lack of proper consultation. For example: the gallery were informed that several of the facilities required major physical upgrades. So? Perhaps the community should be asked whether or not they believe that a certain amount should be spent in order to maintain these facilities? When millions are spent on playground upgrades that the majority don’t want, or concrete plinths in parks that amount to hundreds of thousands of dollars over the years, then questions as to waste, incompetence, and priorities, deserve an airing!
Please listen to the statements once they come up on council’s website.
April 2, 2019 at 8:39 PM
I watched the muppets. Would love a dollar for every time I’ve heard that crap about first step in the process. Shame on the whole damn lot of them.
April 2, 2019 at 9:01 PM
The biggest disappointment in the new crop of councillors has to be Athanasopolous in my opinion. Strajt comes a close second.
April 2, 2019 at 9:32 PM
The intention was to sell. That’s what the public notice said and that’s the bottom line. We still don’t know the real reasons why now and how council is going to stop the on selling years down the track for apartments. For once I would love some councillor with guts to get up and speak the truth.
April 2, 2019 at 9:36 PM
Of course the reason for selling is financial. The Australian Government pays approved providers a monthly amount of residential care subsidy and funds for each care recipient. This amount is capped since 2014. So Council chooses, just like with NDIS, not to continue as a provider. Next year it will be in-home-support’s turn. In the past and currently, this and other councils back-charge the government $10 more per hour than agencies. When federal government takes over mid 2020, this will be capped too. Overnight, councillors will decide not to continue with services for residents. Capping does not allow for creating extra level of middle-management, such as happened again in December at community service services. In the old days there used to be team leaders, managers, directors. Then team leaders, co-ordinator, manager, director. Now, team leaders, co-ordinators, co-ordinator (!) of co-ordinators, manager, director. That’s not even mentioning recently employed in-take officer and extra admin.staff. These extra levels come at $90-120000 per year salaries. All new players come from other councils. Yet, client numbers on books are down, many are advised to opt for packages.
I also see some people writing here that annual loss for all 3 facilities are $3 millions. Latest figure from manager of residential care quoted $1.65 millions per year for all 3 facilities combined.
As for updating, Warrawee has been painted internallyand new carpets laid just several months ago.
April 4, 2019 at 9:13 AM
The Glen Eira Annual Report for 2017/18 reports the deficit for the 3 Aged Care Facilities at $3.49m, including overheads – depreciation and councils allocation of overheads.
Why has Councils so called Aged care experts allowed this to go on for years unchecked?
Why has Council not allocated funds for refurbishment and rebuilding?
Council made a profit of $31.77m last year, what’s wrong with spending some of that on refurbishment of Aged Care Facilities?
April 2, 2019 at 10:46 PM
LOL
April 3, 2019 at 9:19 AM
I was stupidly hoping we’d get some half baked apology for the way things have been handled. No such luck. Not even from Delahunty.
April 3, 2019 at 9:26 AM
SELLING OFF AGED CARE – Some Facts
According to City of Glen Eira Annual Report for 2017/18, Council’s Residential Aged Care Services ran at a loss of $3.49m. A private sector, profit driven provider or a not for profit (also called not for loss) provider will want to reduce the operating costs in order to make a profit or at least break even. This cannot be achieved without reducing staffing ratios and seriously impacting the quality of care.
Staff costs in 2017/18 totalled $12.13m being 73.5% of the total expenses at $16.49m. To break even, a new provider would need to cut staffing costs by $2.56m (21%) and achieve similar levels of cost savings in all other categories of expenditure.
Councils total income for 2017/18 was $186.31m, total expenses $154.54m leaving a Surplus of $31.77m.
Income from rates and charges increased by 44% from $72.26m in 2010/11 to $104.23m in 2017/18
What is wrong with such a profitable Council subsidising it’s Aged Care Services to provide quality outcomes not achievable by private and not for profit services?
Julie Heath – GECC Manager Aged Residential Services confirms that in 2017/18 the total cost to maintain the three facilities (excluding overheads) was $14.3m and that over the past 3 years the annual average deficit was $1.65m (excluding overheads). She also confirmed that under the new provider that ‘Yes, residents will be able to stay’ and ‘residents will continue to have the same rights and tenure’ and Jamie Hyams has confirmed that all ‘employees who wish to stay will have the option to transfer to the new provider’.
Council has consistently stated, that the quality of care will not be impacted, there will be no impact on residents, there will be no impact on staff.
So this is the deal you will be putting on the table to a future provider:
We want you to buy the land upon which the 3 facilities are located and also buy the Aged Care Business on a ‘going concern basis’ (including the bed licences).
You must honour the tenure of all current residents
You must employee all staff who elect to transfer to your employment on their current terms
You must continue to provide care and support services at the current level without impacting on quality and resident satisfaction
You can never transfer the bed licences out of Glen Eira, even if you sell them to someone else
You must continue to operate the 3 facilities as if nothing has changed, only the ownership
And by the way, when you do your own due diligence you will find that:
The current services ran at a deficit of $3.49m in 2017/18
The average loss of the the past 5 years, net of overheads is $1.65m (eventhough you will continue to have to pay for your own overheads)
And by the way we are expecting that you will pay us $20m for the privilege of taking this off our hands.
April 3, 2019 at 9:46 AM
Thank you for this info. We are quite skeptical as to whether $20m is a realistic figure given past sell offs. In 2008 council sold its facilility in Station Street, McKinnon for $3.1m. From memory there were 26 units and land size was miniscule compared to what is now being offered: currently around 2 hectares in total compared to the McKinnon land of 2600 square metres (approx).
April 3, 2019 at 9:57 AM
There is no doubt that the land is valuable, particularly to developers, but not so to providers of Aged Care who are expected to continue to operate the current facilities without impacting on the quality of resident care and the staffing numbers and so run at significant losses and to fund the necessary refurbishment/rebuilding cost. Get real!
April 3, 2019 at 10:04 AM
I also attended last night and feel ashamed of our Councillors in their total lack of consideration to our current and future aged residents. Consultation informs decision making and includes the people directly affected, – the residents, their families and the staff, as well as the broader community. This decision was made in camera and then we were all informed. As a lifelong resident and rate payer of this city, where is my right to have my views and opinions heard when these 9 elected representatives exclude me from this process? SHAMEFUL Behaviour and a total lack of proper process.
April 3, 2019 at 11:47 AM
Secret decisions, excluding residents are par for the course in this council.
April 4, 2019 at 8:15 AM
Yes Jeff, sadly this is true! These people forget they are representing the community, the ones that voted for them. Honesty is the first casualty here! This is a shameless money grab and a dumping of our aged and frail residents! Mayor Hyams legacy will remain on record for all to see.
Oh BUT don’t forget that the requirements of the Local Government Act have been met!! This clearly negates the need for CONSULTATION
April 3, 2019 at 9:03 PM
And this is why I don’t attend these meetings. Don’t want to hear lies and garbage. All done for the show and legalities, nothing more.
The good news is Health Dept. elected to extend funding until June 2022 for in-home-support, so councils who chose to do so may carry on with providing services. This just came through today.
April 4, 2019 at 8:19 AM
These Councillors are elected by us, so let’s send them a strong message next year when we vote again!
NOT GOOD ENOUGH!!
April 3, 2019 at 11:54 AM
I remember trying to get a relative in council care, and getting nowhere, I came to the conclusive GE council care was a closed club, and it was who you knew that got you through the door, and they definitely didn’t what anything to do with outsiders like us.
Unless this has changed, I would say pass it on, as why should the ratepayers support a closed club for a select few with old conservative community connections that say yes or no.
April 3, 2019 at 2:03 PM
Maybe all places were filled when you tried?
April 3, 2019 at 7:50 PM
They didn’t say that, they just cold shouldered you, like a leper and they didn’t want to know you, I’m dead sure a letter from the Mayor or a councillor or CEO would have got you through the door, as I said it was a closed club for the in-crowd, it may have changed for all I know.
April 3, 2019 at 9:10 PM
I can assure you, that I’d not so. My mother got in without us knowing a soul. Since then I have met residents who either got in when they needed to or were placed on a short waiting list. Aldi, unfortunately, a large number of young and old residents weren’t or aren’t aware of the 3 residential care facilities. At councils a lot of things go by whom you know but definitely not in this case.
April 4, 2019 at 10:26 AM
This is good news, however not my experience
April 3, 2019 at 9:18 PM
Excuse the typos: that is not so. Also, unfortunately, a number of…