2019-12-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                           10 DECEMBER 2019


Ordinary Meeting Minutes, 24 September 2015, Item 2, Page 12
That Council note the report by the Special Projects Officer to the Infrastructure and Services
Committee Meeting dated 15 September 2015 and the Further Report to the General Committee
Meeting dated 21 September 2015 and:
A.   Adopt Option A (as set out in the Report to the Infrastructure and Services Committee
     Meeting dated 15 September 2015) and authorise the CEO to enter into an agreement with
     the Cooroy Lower Mill Board to operate the Butter Factory Arts Centre on a 12 month trial
     basis, commencing 1 January 2016; and
B.   Provide a 12 month operating subsidy of $120,279 to the Cooroy Lower Mill Board on the
     basis that the Board provide six-monthly acquittals.

Ordinary Meeting Minutes, 15 September 2016, Item 5, Page 9
That Council note the report by the Manager Libraries & Galleries to the Services & Organisation
Committee Meeting dated 6 September 2016 and:
A.   Authorise the CEO to enter into an agreement with the Cooroy Future Group Inc to operate
     the Butter Factory Arts Centre for a three-year period with a three-year option, commencing
     1 January 2017. This agreement to be in accordance with Council’s Community Leasing
     Policy and subject to continued satisfactory performance by the Group in the second half of
     2016 calendar year;
B.   Provide funding of $61,042 (ex GST) to the Cooroy Future Group Inc to support operations
     to the six-month period to June 2017;
C.   Refer future funding arrangements to the 2017/18 budget process pending the final
     outcome of the twelve-month trial; and
D.   Council extends its congratulations to the Cooroy Future Group on their success thus far in
     operating the Cooroy Butter Factory.

7.   Finance
Following analysis of operational needs of the BFAC and the CFG’s financial position, this report
recommends an operational subsidy of $114,500 (ex GST) for 2020.
Initial expectations were that Council’s level of operational subsidy would reduce over time and
this has occurred with a reduction of $15,333 in the annual contribution and an increase in cost
responsibility for the CFG. There is a risk that if the subsidy is reduced too much, the cost of
operations will become unviable for the CFG and Council will be obliged to deliver the services
directly and bear an increased cost.
The 2019/20 Libraries & Galleries budget provides sufficient funding to contribute financial
support to the CFG for operations to June 2019. There is not sufficient funding in the 2019/20
budget for Council to return to managing and operating the Butter Factory.
Additionally, this report proposes to provide the CFG with annual funding on a reducing subsidy
model, dependent on continuing satisfactory performance. As per the initial subsidy agreement,
the future subsidy agreement is to be reviewed annually with the intention to slightly reduce it
each year. The CFG would also continue to gradually take over responsibility for additional cost
elements e.g. electricity costs once solar has been installed.
The annual subsidy will be proposed and considered during the relevant Council budget
processes.

Risks & Opportunities
The CFG have demonstrated their ability to effectively operate the BFAC. They have a strong
management and governance model in place which ensures stability of the executive committee
and the organisation generally. They have a strong working relationship with Council officers and

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