GE Service Performance


The minutes of 22nd November at long, long last, contained a measly two and a half page ‘report’ on GESAC. We had been promised a full report and have previously commented on the lack of detail contained in this Pools Steering Committee Meeting minutes. We therefore hoped against hope that at the actual Council Meeting Lipshutz might enlighten the community further as to the financial state of affairs, the basketball fiasco, the opening dates, and a myriad of other issues. Here’s a summary of what he said.

LIPSHUTZ: Stated that the committee meets monthly and last meeting was 3rd November and ‘a number of matters were discussed…..the building completion program….originally slated to finish in mid September (never realistic) aiming for mid December…’and we until quite recently been told ….that was a very achievable date….builder has run into a number of problems…missed construction…we have…two fantastic pool managers….and they have been on the ball throughout this whole program….they have required the builder to rectify…(issues of labour and shortages of materials which means the pool won’t open in December)….we believe….late January or February….far better to have it done properly (than) a rushed job’……’no fault at all on our project managers, where the fault lies is….with the builder. (Council has done everything it can including) ‘liquidated damages…and the builder clearly does not wish to pay those damages (but it’s out of his hands)…..there are positives….the pool is progressing very well….water slide now constructed….(nearly 3000 members)…demonstrates there are people who want to go there and be members….(Pool has plenty of) fantastic programs – (sprint pool – ‘one of the best in Australia’; ‘lessons available 7 days a week’; ….small classes….continuous learning…communication feedback…Little Buccaneers….learn to swim classes…academy of swimming….dolphins for age 7 to 10….seniors ….special needs….’pool has been designed to ensure that people with disabilities can enter the pool’….’private lessons…school programs…birthday parties….leisure centre…..play, cannons, …adult programs…basketball stadium ‘will be used for a number of organisations’….competitive basketball for young kids….soccer….casual hire….netball….mornings and evenings….partnership with Marriot support services….training and competition….gymnasium ‘told at outset that whatever we build’ was going to be ‘too small’….’because gymnasiums attract people’…

TANG: point of order about speaking time.

ESAKOFF: asked for mover for extension of time. Moved Pilling and seconded Hyams. ‘Another 3 minutes’. Carried unanimously.

LIPSHUTZ: ‘gymnausium will have (several programs) nutrition’…boxing…body balance…body pump…yoga…tai chi….’developed for gesac’….ELDERLY…’warming pool is one of the best in Australia and has been designed that way’…physios, ….massage…..young families…with children a crèche…..’those are the things that we have….developed’….’disappointing that (it won’t be open) in December…..everyone has been pressing the builder….despite all that there is no possibility of opening in December….

MAGEE: Said he would have liked it to be open in November or December but ‘I’m just as happy for it to be built properly…..it wouldn’t be fair to try and rush it….this acquatic centre will be with us for the next 100 years….(and in a few years find out that things are wrong with it)…because someone rushed it…if it takes an extra month….I’m more than happy to put up with…knowing that the quality that we expect….(Went on to suggest two possible names for the slides – Anaconda, & Little Worm).

The Auditor General of Victoria has released his report into the financial sustainability of local governments. The full report is available at: http://www.audit.vic.gov.au/publications/20111123-Local-Govt/20111123-Local-Govt.pdf

Below are some lowlights from his report, plus an extract from Council’s Chief Financial Officer’s response to the findings.

“Buloke Shire Council was again rated high risk and Glen Eira City Council increased from low to high risk”.

“The overall financial sustainability risk for inner metropolitan councils for 2010–11 was low. However, Glen Eira City Council was assessed as high risk. Glen Eira’s liquidity ratio fell below one in 2010–11. Its cash assets were used to fund building of the Glen Eira Sports and Aquatic Centre. This also increased the council’s non-current assets. Based on its forward plans, Glen Eira will borrow additional funds to complete the centre, thus keeping the liquidity ratio forecast for the next three years between 0.94 and 1.05″.

Peter Swabey’s response: “Over the last few years, we have forecast that our liquidity ratio would drop to a level of approximately 1, as we have invested heavily in our capital works progrms and have borrowed to complete construction of a major Sports & Acquatic Centre redevelopment (please note that the Centre is expected to operate at a cash surplus). Given that all other indicators for Glen Eira are green (i.e. Underlying Result; indebtedness; Self financing; Capital Replacement and Renewal Gap), we feel that an overall rating of red is a bit severe. A liquidity ratio around 1 indicates that we are fully utilising ratepayer funds to maintain a sustainable infrastructure base (supported by a high Renewal Gap indicator and high Capital Replacement Ratio)”.

COMMENTS

  • Swabey’s letter is dated 3rd November 2011. So, how long has Council known this rating was coming? Why was nothing stated at the November 2nd Council Meeting?
  • Is it mere coincidence that the CEO reappointment occurred prior to the release of this information and did Councillors know it was coming? If they did, then what impact did this have on their performance appraisal of the CEO?
  • Have residents been sold a furphy the whole way along the GESAC journey?
  • What impact will this report have on interest rates and future borrowings and ultimately rate increases?

There are literally dozens of other questions we might ask beginning with a thorough cost accounting of all GESAC expenses and incremental costs which have never been fully released nor itemised. It also makes us query the statement that GESAC will be operating at a cash surplus! What do our readers think?

 

Council’s Media Release:

Monday 21 November 2011

Glen Eira CEO contract extended

At the meeting of the CEO Contractual Arrangements Special Committee held on 17 November 2011, Council resolved to extend the employment contract of Andrew Newton as its Chief Executive Officer for a further two years until April 2014.

Glen Eira Mayor Cr Margaret Esakoff said Councillors are confident in Mr Newton’s abilities to manage an organisation with $1 billion of assets, a $100 million budget and almost 1000 staff.

“He has demonstrated excellent financial, people and workplace management and is a sector leader in the management of risk,” Cr Esakoff said.

Cr Esakoff said that Councillors had given the matter full and careful consideration and were confident that they and the community had the best person for the role.

“He is among the most experienced and respected CEOs in Local Government and is widely regarded in the sector as one of Victoria’s leading Council CEO’s. He has a demonstrated passion for, and commitment to, the Glen Eira community,” Cr Esakoff said.

Before commencing as Glen Eira City Council CEO in 2000, Mr Newton worked as an executive for the Commonwealth and Victorian Governments under both coalition and Labor Governments. The first minister he served was Malcolm Fraser, and the most recent was Rob Knowles in the mid-90s.

Mr Newton holds a Bachelor of Arts with Honours from Monash University and an MBA from Melbourne University where he came first in his year. He is also a Fellow of the Australian Institute of Company Directors.

AND THE BAYSIDE MELBOURNE WEEKLY VERSION

Glen Eira CEO reappointed

21 Nov, 2011 04:52 PM
Glen Eira City Council has reappointed chief executive Andrew Newton to his role despite community activists calling for a fresh round of hiring.On November 17 the council’s contractual arrangements special committee resolved to extend Mr Newton’s contract until April 2014. The meeting was held behind closed doors and the outcome was announced on Monday.Glen Eira Spokesman Paul Burke said as the vote was conducted in secret he could not release results of who voted for or against reappointing Mr Newton.Mayor Margaret Esakoff praised Mr Newton as ‘‘the best person for the role’’.

Mr Newton has been in the role since 2000

COMMENTS: If the vote had been unanimous then Burke would have declared the decision as such. It clearly was not unanimous and thus underlines the (ongoing) divisions that are present in this council. We believe that residents have the right to know how each councillor voted and no council resolution should prevent any councillor from declaring his position.

We would also like to take this opportunity to thank all those residents who in good faith signed the petition requesting that councillors advertise the position prior to making their decision. This is just another example in a long list of examples of how the community’s wishes are consistently ignored.

Last but not least, we thought that a comparison with the April 8th 2010 Media Release on the reappointment of Newton might be entertaining and informative. Surely a smidgeon of originality would not have gone astray at this point – after all the ghostwriter does earn at least $230,000 per annum! What this says about the respective mayors of the time we also leave for readers to judge. Compare the following extracts from 2010 to the current Media Release –

“Councillors are confident in Mr Newton’s abilities to manage an organisation with $1 billion of assets, a $100 million budget and almost 1000 staff. He has demonstrated excellent financial, people and workplace management and is a sector leader in the management of risk.”

“He is among the most experienced and respected CEOs in local government and has a demonstrated passion for, and commitment to, the Glen Eira community.”

Mr Newton holds a Bachelor of Arts with Honours from Monash University and an MBA from Melbourne University where he came first in his year. He is also a Fellow of the Australian Institute of Company Directors.

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.

Dear MBA members,

By way of background, it is worth pointing out that we (MBA Executive) have always had one major issue with the Council’s decision and that is that throughout their process we were continually told that any submission we put forward had to offer at least $50/court/hour.  Given that this was substantially higher than we currently pay, we felt it important to seek the view of our delegates and that view was, unanimously, that the MBA could not afford these rates.  Consequently we advised Council that we would not enter a proposal at those levels.  It is easy to see, therefore, why we were so dismayed to learn that Council had in fact accepted an offer from a much smaller Association (presumably with far less capacity to pay) at a rate much less than $50/hour.  Had Oakleigh offered Council $50+ then we would still be questioning council on the grounds on which the allocation was made particularly around community benefit and hours of operation, since we were told we needed to scale back our proposal and the justifications given for being unsuccessful simply did not add up.

We have been actively lobbying Glen Eira Council to persuade them that the exclusion of McKinnon Basketball Association from GESAC is nonsensical.  Council have sought support from Basketball Victoria to facilitate a mediation between Oakleigh and McKinnon in order to determine whether there is the possibility of agreeing a means by which both organisations could use the space.  This mediation will take place soon.  In the meantime, in an attempt to see if we could shortcut the process, we approached the Warriors direct to see if we could agree a way forward between ourselves.  We made it clear that the only workable joint allocation of time would have to see McKinnon occupy the facility on Saturdays.  The Warriors subsequently presented a proposal to us which provided us with Saturdays but whereby they would be granted access to two existing McKinnon courts on a Saturday as well as a number of other conditions.  Whilst we felt there was a workable way forward with most of the conditions, several were simply unworkable.  Consequently we have respectfully declined the offer and will move ahead with the mediation process.

Some of you may have read an article in The Saturday Age last weekend which suggested that members of the McKinnon Executive had in some way promised to reward Councillors with votes at the next election if they grant access to GESAC to McKinnon.  The quote used in the paper was taken from an email to Councillors which Council have confirmed was NOT provided to the Warriors under the Freedom of Information Act as the article suggests.  It remains a mystery as to how the Warriors came into possession of this email but suffice to say that the quote was accurate but taken out of context.  The article also suggests that Jim Magee, among other Councillors, has been in some way retained by McKinnon to help fight our cause.  This is simply not true.  McKinnon Executive members have had one meeting with Jim Magee, which he instigated, several months ago when he first heard that we had not been successful in our application.  Since then there has been appropriate lobbying but nothing more.  These suggestions are inflammatory but nothing more; we pride ourselves on our professionalism and have at all times simply sought to promote McKinnon and our programs as the most logical basketball occupant of this great new facility.

Rest assured that we will continue to put forward the case for McKinnon and will engage enthusiastically in the mediation in an effort to achieve the best outcome for McKinnon and basketball in general.

MBA Executive.

Source: http://www.sportingpulse.com/assoc_page.cgi?client=1-4059-0-0-0

We’ve recently featured posts on the administration’s performance in tabling Requests for Reports. We remind readers that Newton claimed that such requests were “submitted promptly – usually to the immediately following Council Meeting”. The use of Upper Case would suggest that this is an Ordinary Council Meeting and NOT an assembly of councillors. Newton cannot have it both ways. Either the above statement is false and inaccurate, or all councillor requests for reports have been tabled at Council Meetings. History tells us that this is not the case, and even when councillors have specifically stated where and when they wish reports tabled this has not been done. In other words, council resolutions do not appear to have been fulfilled by the administration.

Below is a request for a report taken from the minutes of 26th July, 2004. Readers will note the clear and unequivocal time frame and the demand that the report be provided in open Council. Needless to say, this report was not forthcoming on the date requested and to the best of our knowledge did not appear in subsequent Ordinary Council Meetings 

We’ve highlighted this specific report given the goings on with GESAC and the lack of information forthcoming to the public and possibly, councillors themselves.

“CAPITAL WORKS PROGRAM 2004/05

Crs Grossbard/Marwick

That a report be presented to the Ordinary Council Meeting on 6 September 2004 outlining the stages of progress on all Council major capital works projects budgeted for 2004-2005 financial year

The MOTION was put and CARRIED unanimously”.

We reiterate that no report on “all major capital works projects” was contained in the minutes of 6th September 2004

We find it unacceptable that accountability and transparency have fallen victim to semantics and linguistic sleight of hand.  

  • 16 Nov 2011
  • Moorabbin Glen Eira Leader

Residents’ warnings go unheeded by council

 I write in support of a neighbour’s concerns (‘‘Spotlight on centre’’, November 2) about car parking being built as part of the Glen Eira Sports and Aquatic Centre project. Residents were assured there would be ample off-road parking.

After removing a number of beautiful trees, Gardeners Rd residents are to be faced with an ugly carpark with floodlighting, which apparently will be left on until 11pm.

Glen Eira Council has shown throughout the whole building process a complete disregard for the rights of residents surrounding the project. Surely it must now be admitted, as residents warned, that there was not enough space for three basketball courts without major traffic and parking problems in surrounding streets.

Readers should find the following extracts from the minutes of 26th May 2003 especially interesting, given the recent publicity over the lack of tree protection in our Green Glen Eira and the procrastination in the development of a Significant Tree Register. Yes, it certainly does look like things move at glacial pace in Glen Eira. Thus far it’s only taken 8 and a half years to get to the stage of the final Council resolution! That’s what we really call ‘timely’!

The extract reads:

“Crs Grossbard/Hyams

That a matter concerning a temporary tree control be considered as an item of urgent business.

The MOTION was put and CARRIED unanimously.

9.2 66A Balaclava Road, Caulfield North File No:

Temporary Tree Control

Crs Grossbard/Hyams

That Council put a temporary tree control on a Moreton Bay Fig Tree in 66A Balaclava Road, Caulfield North.

DIVISION

Cr Erlich called for a Division on the voting of the Motion.

FOR                              AGAINST

Cr Grossbard             Cr Erlich

Cr Esakoff

Cr Marwick

Cr Bury

Cr Hyams

On the basis of the Division the Chairperson declared the Motion CARRIED.

Crs Hyams/Grossbard

That a matter concerning a temporary tree control and Ministerial intervention be considered as an item of urgent business.

The MOTION was put and CARRIED unanimously.

9.3 66A Balaclava Road, Caulfield North File No:

Temporary Tree Control

Request to the Minister

Crs Hyams/Grossbard

That Council send a letter to the Minister asking the Minister to protect the Moreton Bay Fig Tree at 66A Balaclava Road, Caulfield North and that Council Officers examine ways to protect this and other significant trees in the City.

The MOTION was put and CARRIED unanimously.

The minutes of 6th June, 2011 record the following resolutions: 

Item 10 – URGENT BUSINESS  

Crs Magee/Pilling 

“That Officers report to Council on the awarding of the use of GESAC basketball courts. This report should include details of requests for Expressions of Interest letters offers and acceptances copies of draft contracts, and responds to the claims contained in the letter by James Cody Treasurer of the McKinnon Basketball Association of the 1st June 2011 and should also cover the capacity of the Oakleigh Warriors to honour their commitment.

2. That the report include by way of separate appendix a copy of the proposed contractual terms to Oakleigh Warriors and
Council not submit any written contract to Oakleigh Warriors until Council has considered same.

3. That this resolution be incorporated in the public minutes of this meeting, and

4. The report should include the cost of hire of like courts at Melbourne Sports and Aquatic Centre.”

AMENDMENT

Crs Hyams/Tang

In part four delete the word ‘at’ and replace with the word ‘including’.

The AMENDMENT was put and CARRIED on the casting vote of the Chairperson and on becoming the SUBSTANTIVE MOTION was again put and CARRIED unanimously.

COMMENTS

Five months later the silence is literally deafening on all aspects of GESAC. The resolution states that officers are to report to council. If this has been done, then we question why this has been done in camera and behind closed doors via a secret assembly meeting. If, on the other hand, it hasn’t been tabled anywhere, then fulfilling the requirements of such a simple request in a timely manner should in no shape or form take 5 months. Most of the requested documents should be on file. As for the comparisons, we in fact put up a post including figures for MSAC and other sporting facilities that took us no longer than 20 minutes to research and locate the relevant information.

The angst that has been occasioned by this entire stuff up is unacceptable. What is even worse is that no information has been released to the long suffering residents who are paying the bills. If officers are incapable of carrying out councillors’ resolutions within an acceptable time frame, then most reasonable people would conclude that they are either incapable of performing their duties, or engaging in a not so subtle form of obstructionism. Either way they should be replaced.

Inquiry into our secretive councils

  • by: Political reporter Daniel Wills
  • From:The  Advertiser
  • November 08, 201112:00AM

The  public gallery at Burnside Council, one among a cross-section of councils whose  use of confidentiality measures will be examined. Picture: Nigel Parsons Source:  AdelaideNow

OMBUDSMAN  Richard Bingham is auditing secrecy measures at 12 councils amid claims some  are over-using or incorrectly invoking confidentiality.

The councils are a cross-section of city and country councils, and include the  trouble-plagued Burnside Council, which was the subject of a ministerial  investigation into misconduct claims.

Mr  Bingham said he was already aware of cases where councils had incorrectly used  secrecy provisions to exclude the public from meetings. Mr Bingham said he  would report to Parliament with the audit findings and the councils involved  were selected as a representative cross-section of the state, not because of  specific concerns.

The councils  are Alexandrina, Barunga West, Burnside, Ceduna, Coober Pedy, Grant, Light, Mt  Barker, Murray Bridge, Onkaparinga, Playford and West Torrens. Mr Bingham will  be allowed to make findings about behaviour at the councils if warranted.

Local  government laws require council meetings be open to the public except in  certain circumstances for privacy or business reasons. Local  Government Association president Kym McHugh said councils strove to balancing  legitimate needs for secrecy with reasonable demands for public disclosure.

“I  welcome the representative audit by the Ombudsman as such an external review is  an important test of how we are managing these matters,” Mr McHugh said.

AND STRAIGHT FROM THE HORSE’S MOUTH –

Ex Bendigo Mayor Cr Greg Williams

“In the last few years I have been saddened by the politicisation of council,” he said. “There is a view that if all nine councillors say the same thing in public, everyone in the community will believe it and think it is doing a good job, regardless if the merit of particular policies,” he said. “There seems to be a great fear of having public input and public discourse about policies.”

Cr Williams said the root of the problems were obvious. “I think the fundamental problem here is there are too many people on council who do not understand the role of democratically-elected councillors,” he said. “There are too many people on council who think their role is to support whatever the council organisation comes up with. I think that is wrong and dangerous. “The role of councillors is to represent community views to the organisation and to challenge the officers in a constructive way and promote discussion of different points of view. “I believe that is how you get good public policy.

“The best advice I was ever given was if you are sitting in a closed-door briefing and are thinking ‘I hope this issue never gets to the public’, then you are probably developing bad policy. “This happens most of the time with the current council.”

Cr Williams said real debate and options were being presented away from the council table. “Senior officers have an executive meeting every week where they do a lot of the debating for the council,” he said. “They work out which is the best option to put to council, and most of the time present only one option. “This is something that has happened since the 2004 election. “Prior to that, councillors were presented with a range of views and options from officers. “Instead, this debate and these options are presented in executive meetings and councillors don’t get to hear opposing points of view.”

Cr Williams said when that was mixed with the amount of “secret” agenda items in recent years, it became dangerous.

“Most decisions have been made well before the public consultation even begins,” he said. “It could be argued the Epsom supermarket was the most stark example of that. “The closed-door forums have become much more of a decision-making forum than they were before.

“The public council meeting has really become a rubber stamp, because we have a majority who think they should support whatever the council staff say. “The way the closed-door forums are now, councillors don’t even know what is on the agenda when they arrive. “During the last council term, if an officer came in with a late report, nine times out of 10 it would not be accepted because councillors needed time to look at it. “Now councillors are expected to turn up not knowing what is on the agenda, have a large report plonked in front of them and are expected to vote on it. “It is appalling. This is all dressed up under the argument of secrecy. Each year Bendigo council would have one or two reports that need to be legitimately secret.

“Everything else is done under the cover of secrecy to avoid public scrutiny.”

Cr Williams said an example of the politicisation was the recent community survey the council commissioned. “I would call this push polling. They set up people to have a good feeling, by asking them positive questions first about the good things of Bendigo, then slip in the political questions before going back to asking questions about the city’s great assets,” he said. “If they say Bendigo is a great place at the start, they are less likely to say they are getting bad representation. “The political questions are sandwiched in between the feel-good stuff, which makes me question the survey.

“But no doubt they will bring it out at the election and say it is more significant than the independent, state government community satisfaction surveys surveys which have become progressively worse over the past four years.” Cr Williams stopped short of urging ratepayers to vote against the current council. “Whether the community votes against this council is a matter for them,” he said. “However, I think the big problem at the last election was the candidates were not good enough. “I would very much encourage people who want to improve things to nominate.”

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