The City of South Perth council has rejected a call to review its involvement in the redevelopment of the Collier Park Golf Course less than a month after work officially began.
The city and Clublinks are jointly funding a $19.8 million redevelopment of Collier Park Golf Course, which officially broke ground last month.
The council was asked at its April 28 meeting to accept a quote for underground services to tie in with the redevelopment.
Saltire Infrastructure had put in a quote for the construction of a private sewer pumping station, and reticulation and firewater main at the golf course.
The project includes the decommissioning and removal of the current septic systems, which will be replaced by a private pump station discharging into the Water Corporation sewer network along Jackson Road.
The quote was higher than the city expected but a consulting engineer said it was still good value “given the current market conditions”.
City staff had asked the council to find the extra $132,000 needed by taking it from other non-urgent parts of the golf course budget, which the council backed 5 votes to 4.
A motion from Cr Tim Houweling that nine conditions be attached to allocating the extra money, including looking at what other works could go over budget and a review of the city’s arrangement with Clublinks, was defeated 4-5.
I assure you councillors, working in business, when it starts off at $132,000 it moves to $250,000.
Councillor Tim Houweling
Cr Houweling said he did not want to stand in the way of the quote being awarded but wanted to review the costs and arrangement for the golf course project as he was concerned the extra cost could be the “tip of the iceberg”.
“When I spoke to two or three councillors who have left council, they all confirmed they had always understood and been told that 19.8 million was the totality of the cost of the project and that there were not likely to be any cost overruns that may be visited upon the council,” he said.
“I assure you councillors, working in business, when it starts off at $132,000 it moves to $250,000.
Camera IconA major transformation of one of Perth’s most popular public golf facilities is officially under way, with the $19.8 million redevelopment of Collier Park Golf Course officially breaking ground. Credit: City of South Perth
“Next time you tell your ratepayers that you can’t afford to spend something, you need to be able to explain why it was so easy for you to adopt an expense of $132,000 on this project.”
After his motion was lost, Cr Houweling said there was not enough detail in the report and found it “bewildering” if others thought there was.
Mayor Greg Milner said Cr Houweling’s proposed conditions were “over-reach” and his alternative motion had included approving the project.
“I don’t really understand the argument there,” Mr Milner said.
“We’re in a period of well-known volatility when it comes to the prices of works such as these.
“It would be better if there wasn’t that increased cost, but if we’re going to conduct business, I fear that’s just the reality of the market at this point in time.”
Deputy mayor Andre Brender-A-Brandis agreed some of Cr Houweling’s conditions went beyond the scope of what the council was being asked to consider.
“We have nine additional directions on the administration to undertake what should be for a straightforward process to engage a supplier to undertake some work,” he said.
“The value of that work is $132,000 in comparison to the total capital construction of the project of 19.8 million. That represents 0.67 per cent. So that’s not even one per cent of the total cost.”
He said there were already monthly reviews of spending and mid-year budget reviews.
Cr Jacqueline Raison said while it was valid to review the project, she wanted to give city staff time to answer earlier questions about it and some of Cr Houweling’s conditions were “crystal ball gazing”.
“I think there’s more than 50 questions that were put on notice, so for me I’d like to establish some of the factual basis because I haven’t got the benefit that other councillors have of tracking this project since its inception,” she said.
“My preference is to look forward rather than look back.”
Cr Blake D’Souza said $132,000 was not much compared to the cost of the entire project but it could be the start of more cost over-runs.
Camera IconA major transformation of one of Perth’s most popular public golf facilities is officially underway. Credit: City of South Perth
“A lot has changed since council approved the initial project and I think it’s fiscally prudent to review these revenue models,” he said.
“We shouldn’t hold (the sewer upgrades) up, but I think it’s a good chance for council to scrutinise the assumptions a bit more and ensure that the ratepayers are getting good value for money from this project.”
Acting CEO Anita Amprimo said she was not aware of any issues that would prompt a review of the golf course redevelopment business case.
“The model and the business case were done at a particular point in time. It’s probably fair to say that if they’re done at a different point in time, they may come out with a different answer,” she said.
The golf course redevelopment is centred around a new 48-bay double-storey driving range with technology in every bay.
Alongside the driving range, the redevelopment also includes a new restaurant and cafe, four padel courts, a function and event space, an all-abilities playground, and a revamped retail space. The existing 27-hole course and mini golf will remain.