VINCENT council will officially pull out of the Leederville Gardens Retirement Village by July next year.
Vincent has been managing the 66-unit village since 2002, but a restructure and staff turnover has left it so short of people qualified to run a retirement home that it’s had to call in consultants to help.
Now it wants to get out of management completely and simply take a “stewardship” role with the facility’s management board.
The council took over management of Leederville Gardens from an off-branch of the St Ives Group after a number of residents complained to councillors they weren’t getting value for money and there were conflicts of interest within the management group.
A council report at the time found it could lead to reduced management fees and lower operating costs, partly because there’d be no profit margin if the council ran the facility and ratepayers’ funds could subsidise costs.
But the current administration doesn’t have such a rosy view.
“It is considered inappropriate and inequitable for the city to subsidise the service, particularly as external professional providers are now likely able to provide the service directly at a lower cost to the village residents than on a full cost recovery fee from the city,” a report to last week’s council meeting said.
The council had been charging the village’s board around $50,000 a year in management fees.
Under new CEO Len Kosova that was tripled to reflect estimates of how much it has been costing to run the place.