2016-09-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                               6 SEPTEMBER 2016


Income and expenditure have been reviewed for the rest of the year based on the first six
months’ performance. The CFC are projecting a balanced budget for the calendar year with the
total income for the year of $156,139 being offset by an expenditure of $156,139 which is in line
with original expectations.

5.    Operations 2017 and beyond

The purpose of the twelve-month trial is to provide a reasonable period for the CFG to establish
itself as the management body for the Butter Factory and determine whether continued CFG
operation of the BFAC is viable.

The CFG have demonstrated their ability to assume responsibility for the Butter Factory and
successfully establish and operate it for the first six months of the trial. This was not without risk
as they had not managed a cultural facility previously however their business acumen and
prudent approach has delivered a strong platform across the first phase of the trial. They have
experienced challenges particularly in understanding the cultural sector and establishing
relationships in this area however they have taken active steps to address this including
changing the make-up of their management board. If they are to continue in this manner then it is
expected they will steadily develop the facility, improving revenue and maintaining tight controls
over expenditure.

If the community managed model was not found to be sustainable, then other options proposed
in previous reports were to be considered. These included:
 Council operating the BFAC as a fully programmed space in line with previous Council
     operations;
 Council operating the BFAC under a ‘caretaker’ model with limited programming, essentially
     a venue for hire; and
 Council investigating other uses for the BFAC such as leasing it out.

As the community consultation was overwhelmingly in favour of retaining the cultural and
community focus of the Butter Factory and increasing community participation in the
management and operation of the facility and there is limited ability for Council to resume
operations, there would need to be a significant failure of the trial to warrant exploring the other
options. However, as the trial has proved successful to date, this report recommends continuing
operation of the Butter Factory under the community managed model.

Operation under the CFG remains the most cost effective model which delivers the greatest
benefit to the community including:
 Provision of an important arts and cultural space within the hinterland particularly to emerging
   artists and smaller touring exhibitions;
 Accessibility to the public 6 days a week, including both weekend days;
 Community responsibility for the management and operation of the facility;
 Ability to attract external resources such as grants and sponsorship;
 Ability to extend the scope of the Butter Factory to incorporate other uses identified through
   the review such as venue hire.

It is therefore proposed that Council enter a three-year agreement with a three-year option for
management of the Cooroy Butter Factory by the Cooroy Future Group. This agreement to be
accordance with Council’s Community Leasing Policy and to contain a clause that should the
performance of the CFG in managing the Butter Factory for the second six months of the trial be
markedly different from the first six months and produce a substantially negative audited financial
result, then the agreement will lapse as at June 30 2017 and Council funding to the CFG to
manage the Butter Factory beyond June 2017 will not be considered.



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