2017-12-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                  18 DECEMBER 2017


Expense:
   Includes the appointment of an industry expert (Hub Coordinator) and Management fee for
     leasing based on standard industry rates
    Building and asset maintenance & operations costs
    Some funds for marketing & governance associated with establishing and supporting the
      operations of the Hub.
Fit out costs are excluded. Following the EOI Tenancy phase any fit out costs deemed Council’s
responsibility will be requested for consideration as part of the Budget Review 3 (BR3) process or
as part of the 2018/19 budget process.

Budget Implications
2017/18 Budget
Costs associated with the recommended Council facilitated management model for the
establishment phase of the Digital Hub can be funded from the existing 2017/18 Economic
Development budget. Funding of $50,000 is estimated for the remainder of this financial year for
the engagement of a resource for a 2-year period to facilitate the tenanting and establishment of
the digital hub (with $15,000 specifically allocated to the establishment of the Digital Hub project
and the remaining $35,000 funded from the capacity building and industry development activity
category).
BR3 & 2018/19 Budget
Following the outcomes of the Tenancy EOI process planned for February & March 2018 the
financial model can be updated to reflect more accurate revenue projections to allow further
budget adjustments to be considered in the next budget review (BR3) and to also inform the
development of the 2018/19 budget.
Risks
The approach to establish and operate the Digital Hub, as outlined in the attached
Implementation Plan, has considered the following identified risks:
Type                 Description                                   Mitigation Measures
Regulatory           The risk of not being able to apply an        Engage a Digital Hub Coordinator
requirements of      entrepreneurial, agile approach to            resource with Technology sector
local government     achieve KPIs due to constraints and           connections and experience.
                     regulatory requirements of local              Enable this role to engage directly
                     government operating environment.             with industry experts and develop
                                                                   responsive and contemporary
                                                                   programs to support the Hub
                                                                   objectives. Regularly monitor
                                                                   proposed approach and adapt if
                                                                   required.
Revenue              Risk of lower occupancy, lower yield ,        Engage a Digital Hub Coordinator
generation           less than forecast grants and                 resource with revenue generation
                     sponsorship revenues.                         experience. Along with Economic
                                                                   Development Manager focus on
                                                                   revenue generating partnerships. Set
                                                                   clear targets and KPI’s and monitor
                                                                   regularly
Local Talent and     In response to a decision for the             Allocate resources and implement a
Knowledge            establishment phase of the Digital Hub to     highly inclusive stakeholder
                     be ‘Council run’ there is a risk of loss of   engagement and partnership model.
                     support from local technology sector and
                     individuals associated with the origins of
                     the Digital Hub concept.
Operational Costs    Operational costs above forecast due to       Additional due diligence and ongoing
                     unforeseen costs.                             review of financial forecasts and
                                                                   assumptions.

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