2015-03-03 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                    3 MARCH 2015


This model has particular merits. It is a community-driven approach which is actively inclusive
and encompassing of other groups. It would allow 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. Of particular significance is the fact that this model can accommodate a number of the
other community proposed concepts as well as the U3A and the Centre for Ceramic Excellence.

The CLM Board, U3A and the CCE have each indicated in principle agreement to this approach.

If successful, this option will activate the Butter Factory, engender community stewardship and
approach long-term sustainability.

There are some risks associated with this proposed model. While individual CLM Board
members have facility management experience, the Lower Mill Board itself has not managed a
community facility and their successful relationship to other stakeholder groups and individuals
needs to be developed. In order to manage these risks, it is recommended that Council clearly
establish roles and responsibilities by way of a Memorandum of Understanding between Council
and the CLM Board. It may be that such agreements would also need to be established between
the CLM Board and its anchor tenants. Expectations and boundaries would need to be clearly
and sensitively established and effective communication developed between the groups involved.

The CLM Board have requested that Council continue to maintain the building and also provide
funding for a project officer to help activate the precinct over an initial three year period. The total
of these costs is less than if Council were to continue to manage the building as a functioning
facility.

Previous Council Consideration

Nil.

Finance & Risk

Budget History

The 2012/13 net cost to Sunshine Coast Council to operate the Butter Factory as an arts centre
was $264,000.

Following de-amalgamation, a reduction was made to staffing and programming levels and the
net cost to Council for 2013/14 was the equivalent of $186,500.

The 2014/15 recurrent budget for the Butter Factory is:

       Revenue                                                         $ 5,000
       Expenditure                                                    $162,385
         Employee Costs                                                $52,139
         Materials and Services                                        $89,643
         Depreciation                                                  $19,440
         Other Expenses                                                $ 1,164
       Net Cost to Council                                            $157,385




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