2022-10-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                             11 OCTOBER 2022


     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; and
     Providing opportunities for community connection.
If Council were to resume operation of the BFAC there would be significant implications
including:
     Increased operational costs of at least $100,000 per annum;
     Reduced opportunities for revenue to offset costs;
     Reduced operational flexibility;
     Difficulty for existing Council Gallery team to manage another arts space, potentially
      having a negative impact on the quality of exhibitions and programming at Noosa Regional
      Gallery; and
     Loss of community involvement and good will built up over the past seven years.
In the 2015 BFAC review the options of hiring or leasing out the building were also considered
however they were discarded due the constraints of the building. This remains the situation in
2022.
As there would be significant implications for Council to resume operations and the community-
managed model has proven successful to date, this report recommends that Council enter a
further five-year agreement with the Cooroy Future Group for management of the Cooroy Butter
Factory Arts Centre. This agreement is to be in accordance with Council’s Community Leasing
Policy and is to retain the current condition which requires an annual review of operations and
finances to assess the satisfactory performance of the facility.
In order to support smooth continuity of operations of the Butter Factory, it is recommended that
Council consider annual funding on a reducing subsidy model to the CFG to support the
operations of the BFAC from 1 January 2023 to 31 December 2027. Future financing
recommendations are shown in more detail in the Finance section of this report.
5.    Asset Management
Ongoing reviews and condition assessments have all identified the limitations of the building
form, layout and condition in undertaking operations and raising revenue. Particular issues
include difficulties with acoustics and climate control and limited disability access. The CFG have
been proactive in seeking external grant funds to assist with capital works requirements such
as updating the kitchen and installing a new electric kiln for the Pottery Studio.
Facility improvements that the CFG have undertaken from revenue and external funding
include:
Capital Expenses    2016/2017     2017/2018     2018/2019     2019/2020       2020/21      2021/22

Kitchen                             $19,536                                                   $170
Computers               $2,182       $3,404        $1,044                      $4,000        $1850
Phone system                                                                   $2,000
Small Equipment         $1,663        $1,705         $727                                    $1599
Electrical                                         $5,545                      $5,000        $1206
Improvements
Office                                               $940                                     $169
Improvements
Shop Fitout                                          $500
Kitchen Flooring                                   $1,536
Air conditioning                                   $4,295
Kiln                                               $1,498        $4,500                       $545
Storage                                                          $5,000       $30,000         $650

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