Council to sell Blue Haven Bonaira
Published on 14 October 2022
Kiama Council last night in an Extraordinary Council Meeting voted to sell its Blue Haven Bonaira Residential Aged Care Facility and Independent Living Units but retain its Blue Haven Terralong Independent Living Units.
For some time Council has been considering its role as the largest remaining local government owner-operator of an aged care business in Australia.
We have shared numerous reports with the public, including a letter from the NSW Auditor General, about our financial situation, which identify the cost blowout from the build of Blue Haven Bonaira, and ongoing operational losses at Blue Haven, as having severe negative affects on Council’s budget.
There has been much debate over whether, after 40 years of successful delivery of aged care, with recent challenges and changes to the sector brought about by the Aged Care Commission, the pandemic and general economy, it is time for Kiama Council to step out of this business and focus on our core functions as a local government.
Last night, Council:
Resolved that Council rescind motion 22/283OC from the September 2022 ordinary meeting and replace with the following:
That Council
1. Retain Blue Haven Terralong (Lot 71 DP 831089) in Council ownership and ensures comprehensive engagement with the community and residents, giving consideration to future use of the decommissioned aged care facility.
2. Undertake to sell Blue Haven Bonaria ( Lot 2 DP1215276) subject to the completion of the required notice in accordance with Section 34 of the Local Government Act (public notice to classify or reclassify public land) and the associated planning proposal process, which council has previously resolved to allocate funding towards at its June ordinary meeting.
3. Continue to inform and engage with the community, including those who are cared for by Blue Haven, to reassure all parties that the quality of care and standard of service of the Independent Living Units and Residential Aged Care Facility will be maintained, regardless of ownership.
4. Continue the work on the urgent need to improve cash flow to demonstrate ‘going concern’ status and improve the long-term financial position of Council, including, but not limited to:
a. paid parking and resident permits
b. ensuring a proportion of revenue generated from any sale or divestment of any assets be invested in strategies for the generation of income and continuous revenue streams.
5. Rescind its previous resolution on the sale through open tender for Barney Street lot and refer to the separate confidential report on this subject matter.
Kiama Council CEO Jane Stroud and Blue Haven COO Joe Gaudiosi have assured residents, families and staff of Blue Haven and Kiama Council that it is very much “business as usual” while we work through the implementation of the decision of Council.
“Although nothing changes immediately day-to-day, we do acknowledge there will be impacts on residents, families and staff of both Blue Haven and Kiama Council. This is unfortunately inevitable as we pursue the difficult job of getting Council’s finances back on track,” said Ms Stroud.
Ms Stroud and Mr Gaudiosi meet regularly with staff, residents and families of the Blue Haven Residential Aged Care Facility and the Independent Living Units (ILUs), and will arrange additional meetings for next week to discuss this decision.
The first step will be a planning proposal to reclassify the land Blue Haven Bonaira is located on from community to operational.
“The process of reclassifying the land and undertaking to sell Blue Haven Bonaira will take some time. As we work through this, we remain focused on continuing to deliver high-quality care and excellent service to all our Blue Haven residents and clients, looking after our staff, and servicing the wider community of Kiama Municipality,” said Ms Stroud.
Kiama Mayor Neil Reilly said, “This decision has not been made lightly but in pursuing our goal of a financially sustainable and productive local government, it is what we need to do. I commend the Councillors for making this difficult choice and I thank everyone for their input so far, and their patience and understanding as we work through the sale process for Blue Haven Bonaira.”
At the Extraordinary Meeting Council also voted to accept a letter from the Hon. Wendy Tuckerman MP, Minister for Local Government - “Notion of Intention to Issue a Performance Improvement Order to Kiama Council.” And to receive a proposal and enter direct negotiations with Farbreburn Pty Ltd in regards to our Barney Street landholding.
Blue Haven Bonaira
134-bed Residential Aged Care Facility
59 Independent Living Units
Blue Haven Terralong
203 Independent Living Units
Decommissioned Aged Care Facility at Havilah Place