2015-03-03 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                     3 MARCH 2015


The options considered were:
Option                          Comment                                         Cost

Option 1 Council to hire out     Simple to manage                             2015/16: approx. $45,000
the facility as a venue and      Lowest cost option                           (depreciation            &
primarily act as bookings        May remain idle for long periods             maintenance); assumes
manager                          Does not respond to community                hire income covers other
                                   expectations     particularly    regarding   costs of approx. $36,000
                                   activation & community management
                                 Low economic and social outcomes

Option 2 Council to continue     Requires re-instatement of staff and         2015/16:          approx.
to operate and manage the          budget                                       $207,000
Butter Factory as an arts        Most expensive option
centre                           Does not respond to community
                                   expectations regarding activation and
                                   community management
                                 Moderate economic and social outcomes

Option 3 Butter Factory is a     Community managed and driven                 Approx.          $125,000
community managed facility       Greater activation of Butter Factory         (including   maintenance
with      Council   providing    Reduces       Council     financial   and    costs) in year 1 reducing
financial   support   to    a      operational burden                           to $100,000 in year 3
community organisation to        Responds to community expectations
manage and activate the          Incorporates     multiple    ideas   from
facility.                          community consultation
                                 Strong social outcomes
                                 Moderate economic outcomes


The current budget for the 2014/15 financial year is $157,385.

Taking these factors into consideration the Review Team believes that Option 3 is the most
beneficial.

After further consultation with the community groups the Review Team is recommending Council
enter into a Memorandum of Understanding with the Cooroy Lower Mill Board to operate the
Butter Factory for an initial period of three years with U3A and the Ceramic Centre of Excellence
being anchor tenants. This model allows for the continuation of arts and cultural activities at the
Butter Factory as well as the exploration of new activities and potential sources of income.

The Cooroy Lower Mill Board believes that over time it can generate enough revenue to
significantly subsidise the costs of running the Butter Factory, however it is also astute enough to
know that this will not happen overnight. In order to give the Mill Board the best chance of
success it is recommended that Council subsidise the operations of the Butter Factory by
$80,000 per annum in the first year with this subsidy gradually reducing over the subsequent two
years. It is further recommended that Council continue to maintain the building over this period.

This option is not without its risks particularly as the Cooroy Lower Mill Board has never
managed a facility before, hence the recommendation to enter into the MOU for an initial trial
period.




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