2015-09-15 Infrastructure and Services Committee Att 2 to Item 4 The J Service Review 2014-15

                                                                                           Service Review 2014-15
                                                                                                                                       The J

10.9.2 Potential Service Delivery Models
Delivery models for community venues were given considerable attention during the Community and
Performance Venues Future Direction study undertaken by 99 Consulting for SCC in 2012. The
findings are still relevant today, and are outlined below:

Local governments continue to look for the perfect solution to managing assets. The perfect model is one that
ensures a venue achieves the outcomes desired by Council and community while freeing Council from capital
and operating cost and risk. As this model has yet to emerge, Councils continue to explore variations on a
number of approaches – from fully owned and managed in-house to completely transferring ownership to another
entity. Decisions about which approach to use are usually based on a number of factors:

         Criticality and complexity: venues that are critical to the achievement of Council goal or require
          significant nurturing are often managed in-house, with significant investment in programming as well as
          the facility

         Control: where Councils desire control over outcomes, they often operate venues themselves. Redland
          City Council has recently brought management of many of this mainland community halls in-house for
          this reason after an audit found issues

         Cost: local governments have historically seen outsourced models as cost saving, transferring
          responsibility for maintenance and operation to an external party such as a sports club or community
          groups. However work done by Western Australia Department of Sport and Recreation on lifecycle
          costing has highlighted the long term costs incurred through deferral of maintenance, a trend noted by
          many local governments with their leased facilities

         Capacity: increasingly, local governments are grappling with a lack of ability or willingness within
          communities to take on roles that were traditionally done by volunteers. Managing community halls in
          urban areas is a good example.
Council-owned performance venues are generally either managed directly by the local government or operated
by an external entity of which the local government is shareholder.

Generally speaking, an external entity approach is used for venues that are the key performing arts centre in their
region and are of a scale that justifies the establishment of a company or there are significant advantages in
operating outside of Council award structures.

General Management approaches are summarised below:
                  Approaches                  Description                                              Examples
High control      In house staffed and        Council staff based on site handle bookings and          Lake Kawana Community Centre
High investment   programmed at the venue     are responsible for programming to achieve               Nambour CC
                                              specific objectives.
                  In-house, off-site          Council staff based off site handle bookings,            Coolum Civic Centre; some Redlands
                  management, plus            caretaker “looks after” users and has an on-site         mainland halls
                  caretaker                   presence as needed.
                  In-house, off-site          Council staff based off site handle bookings, on-        Bicentennial Community Centre
                  management                  site work by head office staff when required             Kawana Hall
                                                                                                       Beerwah Hall
                  Agency bookings/ in-house   External group handles bookings etc, Council staff       some Logan City Council halls
                  maintenance                 act as caretakers and undertake maintenance
                  External group acts as      External group contracted to handle bookings and         Moreton model via Redcliffe Lions,
                  agent                       manage minor maintenance. Some or all hire fees          Pine Rivers Neighbourhood
                                              go to the agent to cover/subsidise their costs or to     Association etc
                                              support their own community activities.
                  Anchor tenant               A group has use of all or part of the space and          Milwell Road Community Centre
                                              takes responsibility for bookings for other users
                  Shareholder model           Council creates an external entity to lease the          The Events Centre
                  (Board managed)             facility.
                  Permit to occupy            A group has permission to use the facility
                  Co-tenancy                  Several groups hold leases over parts of the facility
                                              (usually with one lead group)
                  Tenancy                     A single tenant leases the facility (could be not-for-   Many sports facilities on the
                                              profit or commercial)                                    Sunshine Coast
                  Gift                        Gift building for relocation OR venue and land to a
                                              group
Low control       Sale                        Sell building for relocation OR venue and land to a      Fitzgibbon Community Centre
Low investment                                group                                                    (ULDA)




                                                                                                                                               23