By Raquel Mustillo
RATEPAYERS would not have supported the construction of the multi-million dollar Wulanda Recreation and Convention Centre if the true cost was publicly released ahead of elected members voting to progress the project, according to a Mount Gambier City Councillor.
Following the release of confidential council minutes which show what members voted to support the project at almost $20m higher than the cost touted at the public consultation stage, councillor Paul Jenner has strongly criticised the decision to push ahead with the facility.
The now-publicly available minutes reveal Mount Gambier mayor Lynette Martin moved to enter a $57.5m contract with Badge Constructions, with former Wulanda Recreation and Convention Centre committee chair Ben Hood seconding the motion.
According to the minutes, Cr’s Hood, Sonya Mezinec, Max Bruins, Christian Greco, Frank Morello and Steven Perryman voted to endorse the project – which at the time was widely believed to be costed at $39.1m, with two councillors – Cr Jenner and Kate Amoroso – voting against the motion.
Cr Jenner told The Border Watch he did not support the motion due to “serious” concerns with the increase in cost, the financial impact on council and widespread community belief the project would be $39.1m.
“I originally went onto council, not with a position of yes or no, I went on looking at the whole project and over a couple of years, I got to the point where money and pricing was the issue,” he said.
“I have no doubt if the hub was re-presented to the community at $57.5m, they would have said no.”
Cr Jenner said the cost of the facility build, as well as additional expenditure including $1.1m for depreciation and up to $600,000 for principal and interest on councils loan for the project would restrict councils ability to undertake any other major projects.
“We are not going to be able to loan any money at all for the next seven to eight years – that’s two periods of council,” he said.
“I feel that council is now in a position of what is called treading water.”
“It is now going to restrict, in my view, other goods and services – there’s no doubt that when something comes up and it’s a couple of million dollars, we won’t be able to do it.”
Cr Amoroso – who sought support to release the manner in which voting occurred for the procurement – echoed Cr Jenner’s sentiments, saying she believed the increase in cost “would compromise the councils ability to provide immediate services to the community in the years ahead”.
“The $39m cost, I was more prepared to support as I honestly believe this was a well-needed facility for our region and the community had been asking for many years for a roof over the pool,” she said.
“However, when the additional cost was added, I didn’t believe it was any longer justified.
“With such a significant spend, and with the project being so substantially over budget compared to the original price of $39m, the City of Mount Gambier ratepayers absolutely deserve full transparency not just with this, but at all times.
“All councillors need to be accountable on how they voted on this project.
“In my opinion, this and many other aspects of this build should have been brought out of confidence a long time ago.”
However, both councillors concerns were rejected by Ms Martin, who referred to the project as “life changing”.
“As mayor, I have regular interaction with the community and in conversation, now that people can see the size and scale of the facility, residents are not talking about the cost of the project and they cannot wait for the facility to be built,” she said.
“It is going to be life changing for our residents and a game changer for Mount Gambier as the second largest city in South Australia.
“Our residents deserve a facility that will provide year round indoor aquatic and recreational facilities catering for all ages and abilities.”
Council general manager city infrastructure Barbara Cernovskis said council made an informed decision to progress to a signed contact based on several reasons, including “the community consensus to progress the intermediate design to secure Federal and State funding contribution of $25m”.
She said council had a strong financial position and ability to afford the build and operation of the facility, and had maintained its commitment to not raising rates beyond 4.5 per cent.
“At the time of the community survey in late 2018, the $39.1 million figure for the facility was based on an intermediate design and estimated costs provided by independent quantity surveyors,” she said.
“In August 2020, the market response to the tender process determined the true build cost of $57.3 million based on the final design which has been refined to increase flexibility and functionality following community/user group feedback.
“Council is looking to the future to ensure our community has access to a multi-purpose modern facility for basketball, tennis, netball, aquatics, other sports and community activities for future generations.”
