2016-09-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                             6 SEPTEMBER 2016


In order to ensure smooth continuity of operations of the Butter Factory for the second half of the
2016/17 financial year it is recommended that Council approve funding of $61,042 to the CFG to
support the six-month operations of the Butter Factory from January 1 2017 to June 30 2017.
Further funding will then be considered as part of the 2017/18 budget process following the
receipt of the CFG’s final report at the completion of the twelve-month trial.

6.   Capital Works

The 2014 and previous reviews have all identified the limitations of the building layout in
undertaking operations and extending scope for maximising income. Particular issues include
acoustics and lack of disability access. The CFG have identified options to improve building
issues and will be seeking external grant funds to undertake these works. A three-year
agreement with a three-year option will assist the CFG them to secure these funds.

Previous Council Consideration

Ordinary Meeting, 12 March 2015, Item 1, Page 9
That Council note the report by the Director of Community Services to the Infrastructure &
Services Committee Meeting dated 3 March 2015 and agree to:
A.   Adopt Option 3 as its preferred option;
B.   Staff consulting with the Cooroy Lower Mill Board to develop a Business plan and budget to
     present to Council in a future report; and
C.   Continue to maintain the Butter Factory and Pottery Shed buildings.

Note: Option 3 proposed a hybrid community managed model with the Cooroy Lower Mill Board
as the facility manager, and U3A and Centre for Ceramic Excellence as anchor tenants.

Ordinary Meeting, 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.

Finance & Risk

There is sufficient funding in the 2016/17 Cooroy Butter Factory budget to provide financial
support of $61,042 to the CFG for management and operations to June 2017. This amount is
equivalent to the level of funding provided for January to December 2016 with a 1.5% increase
allowing for inflation, pro-rata for six months.

There is not sufficient funding in the 2016/17 budget for Council to return to managing and
operating the Butter Factory.

At the end of the twelve-month trial period as part of its 2017/18 budget process Council will
enter negotiations with the CFG about the level of operational subsidy for the next three years,
the expectation being that Council’s level of operational subsidy will reduce over time.

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