A YEARS RECONCILIATION OF COUNCIL COFFERS AND CREDIBILITY

From: Suzie Haslehurst
Sent: Thursday, January 12, 2017 7:51 AM
To: davidgrant@westnet.com.au
Cc: David Wallace; Paul Martin
Subject: RE: A Years Reconciliation of Council Coffers and credibility

Dear David,

Thank you for your email and reference to your social media post.  I’ll endeavour to respond to your satisfaction, however as noted in my response to the public questions received in late November, much of the information requested is currently being sourced.

Dear Suzie

I am assuming from this that you have had no current relevant information in your possession regarding any matters involving the YRCC dating back to its opening date and beyond to respond to public questions received in November last year.

This lack of knowledge includes but is not limited to initial and subsequent funding, architects fees, all building and other construction costs, any and all running costs, documented income projections compared to actual income and any other audit information and other matters of commercial importance or fiduciary interest commencing six-years-ago in 2011?

There is no Peter Lehman report including a Business Plan to be used as a resource by you although I was personally advised, in writing, by former Acting CEO Michael Keeble that there was such a document?  There have been no other investigative actions taken by any-third party involving the YRCC that may have been instigated by former Shire President, Matthew Reid, in his communications with Michael Keeble, or others including Acting CEO Graeme Simpson between 2012 and 2016?

You therefore have no documented insight what-so-ever into the YRCC’s past operational status to allow you to respond to questions, prior to November 2016?

So where are you currently sourcing this information from- as all such information must be held and be easily accessible to you, retained within the Shire of York Offices?

Suzie:

When the new CEO commenced in late April 2016, his first job was to finalise the outcomes of the major strategic review undertaken by the new Council with the Acting CEO.  In June, following a period of community consultation, Council adopted as part of its Corporate Business Plan (p 20) the action “YRCC Management Review” to be undertaken during the 2016/17 financial year. Subsequently, an organisational restructure led to some changes in staff and a comprehensive recruitment process to fill three new positions.  The CEO was reluctant to commence the review process without the appropriate staff resources in place and wanted the new Executive Manager Corporate & Community Services as the person responsible for implementing any changes, to lead the process rather than it being led by consultants.

DT:
This information most, who wish to know, already know and the organizational restructure leading to staff changes was due to alleged mismanagement and incompetence including failure to keep proper Shire records being in breach of the State Records Act, 2000.

Effectively, the date in June 2016, when Council, adopted the action “YRCC MANAGEMENT REVIEW’, was seven (7) months ago.

Personally, I am not aware of any past community consultation undertaken by the Shire directly pertaining to the future of the YRCC undertaken between April 2016 and June 2016?

Was this obtained through written submissions or through direct contact with stakeholders and how was this community specifically advised that this process was being undertaken?

Suzie:

My first task following my commencement as Executive Manager Corporate & Community Services on 31 October 2016 was to develop a timeline for the YRCC Management Review.  In November, Council approved a process and timeline for the review which will be concluded prior to 30 June 2017. Any proposed changes will be implemented in a staged manner to ensure a smooth transition for all concerned.

DT:
I am aware that you have only been in your position a short time.

My concern is that in the four (4) months between June and October why the Chief Executive Officer did not undertake preparatory information gathering (after the “YRCC MANAGEMENT REVIEW” )to assist you in reducing the timeline for your review that appears to take a further five (5) months?

Suzie:

Since then, a Management Review plan has been developed. This incorporates the following phases;

1.      Project planning and review – identification of the key issues since the YRCC opened, review of capital and operating costs since opening, review of business plans undertaken to date, investigation of current liquor licensing arrangements, identification of the main stakeholders and development of a community engagement strategy.

DT:
Given your four-stage development process- at what stage are you in this process?  1. Project Planning and review suggests that:-

a) the key issues are now just being identified and were not available to the CEO when he responded, on your behalf, in writing, to the public questions in November, on December 6, 2016?

b) you have yet to identify who the main stakeholders are?

c) there have been other Business Plans put forward in the past, including one authored by Guy Lehman?

d) community engagement strategy is not the community consultation undertaken in June?

Suzie:
Stakeholder engagement – organised meetings and information sessions with identified stakeholders (ie users, Forrest Oval Advisory Group and other sporting clubs, businesses, interested community members)

DT:
a) you have now identified who all the stakeholders are?

b) is the former President of the Shire of York, Pat Hooper, a member of the Forrest Oval Advisory Group?

c) if he is-given his extensive initial involvement in the overall YRCC development and business direction and given those circumstances, could this not be considered to be a serious case of Conflict-of-Interest? 

Suzie:

2.      Discussion paper – outline of capital and operating costs and usage to date, market analysis and the options identified resulting from stakeholder engagement and document review. A Council briefing so that Council can endorse the Discussion Paper with preferred option for public advertising.

DT:
a) have you personally read the submissions and objections made to the Department of Liquor Licencing ( and the DLGC) regarding the Shires determination to obtain a Tavern Licence?

b) are you personally aware of OECD Competitive-Neutrality Principles with regard to its intent to prevent unfair competition being undertaken by public funded government agencies and governments against private enterprise?

c) are you aware that on numerous occasions the YRCC advertised ‘Coffee & Cake’ mornings, and other finance gathering functions, to the general public, bearing no relationships to local sporting events or sporting clubs, financial or otherwise, that would be in contravention of Competitive-Neutrality Principles?

Suzie:

3.      Community engagement and consultation – advertising, information sessions/consultation, 2 x 1-day fact finding trips by Councillors and key stakeholders to other facilities in the region to review alternative management models and structures and to gain some understanding of the costs involved.

DT:
a) are you aware that only one other Shire owned facility, in the region, may have a Tavern Licence?

b) to the best of my knowledge no other Shire owned facility, in the region, has a designated conference centre?

c) no Shire owned facility, in the region has both a Tavern Licence and a conference centre?

d) so in which facilities in the region do you expect to find alternative management models and structures that encapsulate the future requirements of the YRCC?

Suzie:
Development of a Business Plan for the preferred option taking into account community feedback, Council adoption for public comment, advertising for two weeks before final adoption of the Business Plan.

4.      Implementation of the new Business Plan.

DT:
I strongly suggest that the Shire ensures that any new Business Plan takes into due consideration the OECD Competitive-Neutrality principles and does not intend to engage in any business enterprise that may have any negative consequences for current privately owned businesses in York.

Suzie:
I note and appreciate your business plan suggestions which will be considered during the development of options for the management of the YRCC.  I look forward to your feedback on the draft business plan.

DT:
Thank you for that, but the current ownership structure, business structure and physical structure of the YRCC premises, in the main, precludes most forms of viable business development.

Suzie:

Sport and recreation is an important part of maintaining a healthy and vibrant community.  Council and Shire staff are committed to not only providing the best possible facilities to accommodate our community but also to minimise the cost of services to ratepayers while taking into account the need to promote economic development for the town. These principles underpin the review and will inform the resulting YRCC Business Plan.

DT:
I concur with everything you have to say here.

However, I am led to believe that Shire employees enjoy a significant, ratepayer subsidised discount for membership of the YRCC gymnasium. Is this correct? If so- it may have certain connotations regarding gratuities received by public service employees through their employment that you may wish to make yourself aware of?

Suzie:

I understand the frustration experienced regarding the YRCC and the desire to see the matter resolved expeditiously.  The process outlined above will provide an opportunity for the community and YRCC users be involved in each step and to have provide into the options for the improved future operations of the YRCC. The Shire is committed to this.

DT:
I totally agree. The frustration has gone on for inordinate period of time when all available information over the past four years suggested that expeditious action should have been taken years ago!

Suzie:

It is then the role of Councillors to approve the best business model that balances three critical elements: services to the community, new business development within the Shire and the cost of operations.

DT:
I think you may be missing the point here. Any business development within the YRCC should be owned and operated by a private local sporting consortium or other co-operative with community approval, possibly under the strictures of the Associations Incorporations Act, 2015. No business should be owned by the Shire, just the premises.  

Suzie:

To do this correctly will take time to create the best opportunity for the long term and successful operation of the YRCC which remains a valuable community asset.

DT:
Personally I think you are rapidly running out of time and I disagree- as currently the YRCC is a liability that must be retained as a community asset. You have all the financial information right now to prove how valuable a community asset the YRCC is to the York community and I call on you to do so.

Suzie:

I trust this addresses the main points of your email.  I look forward to your input during the review process.

DT:
No not really, I have authored and received such communications that lack clear definition for much of my working life. It is what I expected.

Regards
David Taylor