$6m cost blowout

By Shaun Inguanzo
GREATER Dandenong mayor Peter Brown says a $6 million blow-out on Springvale’s revitalisation project within one month is part of a “council management-driven exercise” to relocate public facilities to Warwick Avenue.
An angry Cr Brown discovered the $6 million blow-out when he attended a public consultation forum for the Springvale Revitalisation Project late last week.
He told Star he was shocked to find an option to relocate Springvale’s city hall, library facilities and council customer service branch to Warwick Avenue had skyrocketed from estimated costings of $28.1 million on 25 September to $34 million in last week’s Springvale Revitalisation public consultation documents.
“How can something put to council on 25 September go out to public consultation with increased costs of $6 million dollars?” he asked.
“This is not $6, or $600, or $6000, or even $600,000 – it is $6 million.”
A furious Cr Brown sent a ‘lengthy’ email to councillors and directors this week requesting an explanation.
He said council directors informed him that the cost blow-out was due to inflation.
“But in one month that means inflation is running at 36 per cent per annum, which I find nonsensical,” he said.
“The explanation I was given (for the blow-out) is due to an increase in floor space for new flat-floor town hall.
“But it is all premised on the death and destruction of the existing town hall at its existing site.”
Cr Brown said the renaming of the project from Municipal Buildings Project to Springvale Revitalisation Project implied a “management-driven” push to move from the Springvale Road site and further into central Springvale.
“I think some of the comments I made at last year’s declaration of poll are probably more apt now than they were then,” he said.
“A majority of councillors held a certain view that the city hall grounds ought to be saved, and I said officers who work in an opposite direction to that might want to look for a job elsewhere.
“Given the different direction officers have taken since then, in part with costing blow-outs, I think the comments are more apt now than they were then.”
Cr Brown said without State Government funding there was no chance the council could afford anything other than refurbishing the current facilities.
Greater Dandenong CEO John Bennie said the figures were credible, but did not respond to Cr Brown’s claims that management was driving the Warwick Avenue option.
“The costings on the Springvale Buildings project being presented to the community are credible, and important to give the people a good understanding of what’s involved in the project,” he said.
“We are very committed to the consultation process, and we await the feedback from these sessions to determine what the community want for the future of Springvale.”