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PERSPECTIVE20120114 BUNDABERG REGIONAL COUNCIL | Bundaberg Regional Aquatic Facility - Feasibility Investigation

03 OCTOBER 2013

Bundaberg Regional Aquatic Facility Feasibility Investigations

December 2013

This report has been prepared by:

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PO Box 5660 Manly QLD 4179

Telephone: (07) 3901 0730 Fax: (07) 3893 0593

© 2013 ROSS Planning Pty LtdThis document may only be used for the purpose for which it was commissioned and in accordance with the terms of engagement for the commissions. Unauthorised use of this document in any form whatsoever is prohibited.

Version control:Version Date Document Author Reviewer Recipient

OP1 20/11/2013 Bundaberg Regional Aquatic Facility Feasibility Investigation

Scott Walker Senior Consultant (Project Manager)

Emily Wagon Consultant

Matt Dagan Project Manager

OP2 4/12/2013 Bundaberg Regional Aquatic Facility Feasibility Investigation




Final 20/12/2013 Bundaberg Regional Aquatic Facility Feasibility Investigation




recreationopen spaceand sportspecialists

AERIAL PERSPECTIVE 320120114 BUNDABERG REGIONAL COUNCIL | Bundaberg Regional Aquatic Facility - Feasibility Investigation

03 OCTOBER 2013

Summary and conclusions 1

1. Introduction 3 Project background 3 Methodology 4

2. Site analysis 5 Local context 5 Site location 5 Site description 7

3. Trends influencing aquatic design and usage 9 Bundaberg people 9 Projected population 10 Changing population 11 Changing lifestyles 11 Variety of experiences 12 High expectations 12 Tourism and economic benefits 13 Constraints to participation 13

4. Concept plans 15 Design layout 15 Aerial perspectives 16 Ground perspectives 18 Elevations 19 Design considerations 20

5. Management and operations 21 Facility management 21 Management structures 22 Option 1: In-house managed 23 Option 2: Out-sourced 25 Option 3. Hybrid management 27 Recommended structure 28

6. Financial considerations 29 Capital costs 29 Operational revenue and expenses 30 Local government benchmarking 32 Funding options & opportunities 36

Appendix 1: Assessment matrix (Stage 1) 37Appendix 2: Geo-technical Report 47Appendix 3: A3 Concept plans and aerial perspectives 73Appendix 4: Preliminary Order of Cost Estimate 82

Table of Contents

Bundaberg Regional Aquatic Facility Feasibility Study1

Project historyStaged reports have been provided prior to this final report which provided an analysis of the information gathered during each stage with a list of recommendations, that together provided Council with the information required to progress to the next stage of the process. Initially, 22 sites, including the LGA’s four existing aquatic facilities, were originally assessed, with Council deciding to proceed with Land Use Plans for the recommended two sites, Norville Park Swimming Pool and the Baldwin Gardens Estate site. Subsequently, Baldwin Gardens Estate (historically known as the Gympie Estate) was chosen by council as its preferred site as it met many of the criteria for a suitable location for a regional aquatic facility, and is the subject site of this final report.

Centre viabilityThe investigations undertaken through previous stages and for this final report have demonstrated that the proposed Bundaberg Regional Aquatic Centre is a viable development.

Given the age, location and condition of existing aquatic facilities, coupled with the significant population growth expected for the Bundaberg region, there is a definite need for modern aquatic facility capable of meeting community expectations. Further, the proposed, highly visible location will position the Centre to cater for both existing residents and identified growth areas, especially those between the existing CBD and the coast.

Centre designThe concept designs provided demonstrate the variety of features proposed for the Bundaberg Regional Aquatic Centre that will allow it to provide a wide range of experiences to patrons. In particular, the large lagoon pool and associated water play features respond to the growing trends of (and community expectations for) such aquatic facilities.

The overall mix of leisure water and water play, program pools (learn to swim, exercise classes, etc) and eventually a 50m competition pool and modern gymnasium will provide a true destination for patrons and allow Council to promote the Centre as a significant tourist attraction. The inclusion of indoor, heated pools also allows the Centre to operate for the full year, adding to the Centre’s attraction and ongoing viability.

In addition to school swimming carnivals, the design (Stage 2) will also allow the Centre to attract significant events, including regional, state and national titles, all adding to the economic benefits that the Centre will provide. The leisure water, indoor pools and large open spaces through the Centre (Stage 1) will also make it attractive to hire for private and corporate events.

Financial implicationsCapitalThe total estimated cost of designing and constructing the Regional Aquatic Centre is $25,219,545. However, it is recommended that the Centre be developed in two distinct stages (as described in this report) with indicative costs for each stage (including extra over for rock excavation) being:

Stage 1: $16,423,085

Stage 2: $ 8,796,460

While this is a significant amount, this report has identified various funding sources that Bundaberg Regional Council can pursue. It is most likely that several of these sources will need to be acquired for the successful completion of the Centre.

OperationalAlthough the Regional Aquatic Centre will result in on going costs to Council, this is the case for almost all such facilities. As such, Bundaberg Regional Council will be no different to other Councils where these costs are accepted due to the wide range and significance of the benefits they provide to the communities they cater for.

However, it should be noted that whether these costs take the form of a management fee paid to a management company or a component of ongoing operational costs (such as chemicals, water, etc) as agreed in a lease arrangement, they can be reduced through a combination of an appropriate agreement and the successful operation of the Centre.

Depending on the adopted management structure, it is anticipated that Council could expect an annual cost of providing the Centre of somewhere between $200,000 and $400,000.

Summary and conclusions



03 OCTOBER 2013


03 OCTOBER 2013


Introduction1

Bundy LGA

Childers

Bundaberg City

Isis War Memorial Pool

Norville Park Swimming Pool

Bundaberg Regional Council’s four public swimming pools

Gin Gin

ANZAC Park Olympic Pool

Gin Gin Swimming Pool

Project backgroundLocated within the Wide Bay Burnett Region (the region), Bundaberg Local Government Area (LGA) is home to 89,810 residents as of the 2011 Census. By 2031, the population is expected to increase to approximately 150,100 persons.

As one of the region’s key activity centres, Bundaberg City (the city) provides essential and high quality recreation facilities that are not available within the LGA’s smaller urban, coastal and rural towns.

Council is becoming increasingly aware of the importance of these recreation facilities and the opportunities they provide to facilitate and encourage physical activity thus reducing the burden of chronic disease. Aquatic facilities play an important role in this context, especially as the LGA’s population continues to age.

Council currently provides four public swimming pools within the LGA: � ANZAC Park Olympic Pool � Norville Park Swimming Pool � Isis War Memorial Pool � Gin Gin Swimming Pool.

While each of these facilities is heavily utilised by the community, they lack the ability to host high level swimming events and their ageing infrastructure needs to either be replaced or requires significant repair. Both of these solutions area very costly. As the population increases significant pressure will also be placed on these existing pools.

The absence of a water play park for children of all ages and families to visit within the LGA is a growing concern among the community, with many having to drive to adjoining councils for this experience.

Council acknowledges the important role that aquatic and water play facilities play in the lives of the LGA’s residents and visitors and as such have commissioned the development of this report to investigate the feasibility of a regional aquatic facility within the Bundaberg LGA. The report investigates clear, realistic and achievable options and recommendations to guide Council in the development of their regional aquatic centre.


Methodology The methodology used in the development of this Feasibility Report has been broken down into five stages. This shows the sequential development of the process. The information gathered and generated throughout this process provides the various outputs required for the Report. The five stages are;

Staged reports were produced at the end of stage one, two and three which provided an analysis of the information gathered during that stage with a list of recommendations, that together provided Council with the information required to progress to the next stage of the process. A summary of these reports are provided below.

Staged report 1: Site analysis reportA total of 22 sites, including the LGA’s four existing aquatic facilities, were originally assessed on various factors. It should be noted that the Isis War Memorial Pool (Childers) and Gin Gin Swimming Pool were discounted as possible sites due to their rural location and distance from the populated areas of the LGA. Coastal areas were also discounted, mainly due to a lack of suitable land parcels.

Using an assessment matrix and rating the possible sites out of 10 based on the above factors, four sites were recommended to Council:

� Norville Park Swimming Pool � Baldwin Gardens Estate site � Bundaberg Showgrounds � Disused church site (400 Bundaberg

Bargara Road).From these four sites, Council decided that the Norville Park Swimming Pool and the Baldwin Gardens Estate site were the most suitable for further consideration. A copy of the assessment matrix, summarising these findings can be found at Appendix 1.

Staged report 2: Land use plans Land Use Plans (LUPs) were developed for Norville Park Swimming Pool and the Baldwin Gardens Estate site. The major components of the LUPs included a:

� comprehensive list of the proposed features of the Centre and rationales for their inclusion

� explanation of the proposed mix of functional areas such as swimming, water leisure and ancillary features (change rooms, cafe/kiosk, gymnasium, etc) and how they ‘interact’ on site

� summary of the strengths, weaknesses, opportunities and threats of each site

� graphical and photographic examples of all individual components of the Centre and of the overall Centre itself

� map layer clearly illustrating the site’s location and its likely catchment area.

Each LUP was accompanied by a simple concept plan to show a preliminary visual representations of how a regional aquatic centre would look, fit and operate on each site.

Staged report 3: Concept designs Baldwin Gardens Estate (historically known as the Gympie Estate) was chosen by council as its preferred site as it met many of the criteria for a suitable location for a regional aquatic centre.

Further investigations provided a detailed geo-technical survey of the site to guide the final concept designs of the Centre.

Stage 1Background

research

Review of background

research and demographic and

aquatic tends

Stage 2Site options

across the LGA

Potential site identification and

inspections

Staged report 1

Stage 3Land use plans

g

Develop a land use plan for the

two preferred sites identified by Council

Staged report 2

Stage 4Preferred site

ggg

Detailed investigations and concept designs of the preferred site

Staged report 3

Stage 5Report

preparation and finalisation

Initial concept design example - Stage 4

MASTERPLAN20120144 BUNDABERG REGIONAL COUNCIL | Bundaberg Regional Aquatic Facility - Feasibility Investigation

1:1000 at A3 | 25 JULY 2013 | P1DRAWN BY : LM / AC

2

PRELIMINARY ONLY

2

pump room + storage

25m pool

storage

learnto

swim

cafe

male

female

gym

officeclinic

childcare

lagoon pool

waterplayzone

lawn

50m pool

courtyard

lawn

car parking - 160 cars

bus parking zone

foyer

entry

adm

in

first aid

boh

receptioncounter

spa pool

outdoor showers

line of roof overshown dotted

cour tyard

water tanks

pylon signage

raised platform

proposed ‘slip lane’

por te cochere shown dotted

drop off zone

child care outdoor cour tyard

disabled car park zone

raised parents platform

spectator seating

sunshade over shown dotted

raised pool platform

ramp entry

sand beach entry

bridge

shading landscape

‘soft fall’ surround to lagoon

sunshade over water play zone

BBQ shelters

path through landsape shown dotted

outdoor showers

raised pool platform

0 1m 5m2m 10m


Site analysis 2Local contextLocated off the Bundaberg Ring Road, the site is in a highly visible position from both directions. Being situated on the Bundaberg Ring Road allows easy access to the Bundaberg CBD, Bundaberg Airport, Bargara and other coastal towns.

Surrounding suburbs, Kalkie and Ashfied, have been identified as high growth areas and are expected to accommodate a large proportion of Bundaberg’s future population growth, placing the site in a highly favourable location.

Currently, a variety of land uses border the site, including agriculture and farming to the east, industrial to the west and residential to the north. South of the site remains undeveloped, however, it is anticipated that it will be a mix of residential and commercial land uses in the future.

The site sits along the Baldwin Swamp Environment Park corridor that extends towards the Bundaberg CBD. As such, some components of the surrounding natural environment contribute to the health and habitat of native flora and fauna.

ID Lot and Plan

1 RP24914/3572 RP24914/3583 RP24914/3594 RP24914/3605 RP24914/3616 RP24914/3627 RP24914/3668 RP24914/3679 RP24914/368

10 RP24914/36911 RP24914/37012 RP24914/37113 RP24914/37214 RP24914/37315 RP24914/37416 RP24914/38417 RP24914/38518 RP24914/386

ID Lot and Plan

19 RP24914/38720 RP24914/38821 RP24914/38922 RP24914/39023 RP24914/39124 RP24914/39225 RP24914/39326 RP24914/39427 RP24914/39528 RP24914/39629 RP24914/39730 RP24914/39831 RP24914/39932 RP24914/40033 RP24914/40134 RP24914/40235 RP24914/40336 RP24914/404

ID Lot and Plan

37 RP24914/40538 RP24914/40639 RP24914/40740 RP24914/40841 RP24914/40942 RP24914/41043 RP24914/41144 SP213228/38145 SP213228/38246 SP213228/38347 SP213228/41248 SP213229/35449 SP213229/35550 SP213229/35651 SP213229/37552 SP213229/37653 SP213229/377

Site location The site is located in the south eastern corner of Baldwin Estate. Covering an area of approximately 2.6ha, the site is comprised of 53 individual lots and one road reserve. There have been previous proposals to redevelop the Baldwin Estate for residential uses, however, the site remains undeveloped, with minimal vegetation. The location of the chosen site is illustrated on the adjacent map.

Land details relating to the site are detailed below.

Details

Locality Bundaberg EastExisting Tenure Council OwnedArea 2.6haLand Use Zoning Residential ALot and Plan 53 parcels of land

Lot and plan for the parcels within Baldwin Estates are detailed below and corresponds with the adjacent map.


Bungaberg Regional Aquatic Centre site context and locality

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1

432

65

13101112

897

1415

18

212019

2322

1716

242625

27

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39

363738

3435

4041

3331

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Bundaberg Regional

Aquatic Centre

Bundaberg Regional

Aquatic Centre

Bundaberg Regional

Aquatic Centre


Site description The site is considered a greenfield site as it is currently undeveloped and has no existing infrastructure. Officially there are no current uses on the proposed site, however, it was observed that employees from the adjoining businesses often used the area for informal car parking and storage.

Natural environmentAs can be seen from the adjacent photos, there are a number of large trees on the site. These trees are complemented by the presence of grass like shrubs. Although the site falls along the Baldwin Swamp Environment Park corridor that extends from Scotland Street, there has been no identification or acknowledgement of any environmentally sensitive flora and/or fauna on the site.

Geo-technical conditionsDuring the previous stage of the project (Land Use Plans), core samples across the proposed site for the Centre were undertaken with the main findings summarised as follows:

Five holes were bored across the site to determine general soil conditions and the extent of rock. Rock was found at four of the bore holes at levels ranging from 0.7m to 1.4m, with no rock being detected at the remaining bore hole.

Other relevant findings of this preliminary test included: � good site drainage (but poor soil drainage) � no seepage or permanent/perched water tables � soil classified as highly reactive.

While these findings confirmed that excavation of the site for the construction of a Regional Aquatic Centre would be problematic, they were not insurmountable. It was decided to employ the geo-technical consultant to undertake further investigations, once the footprints of the main pools were accurately determined.

The geo-technical consultant’s investigations during this final investigation stage concluded, in summary:

� that a layer of solid rock boulder was encountered on the eastern aspect of the site at around the depth of 1.0 metre during previous excavation work for drainage works

� given the outcomes of the core samples from the site’s Land Use Plan showing the same solid rock boulder layer at a depth of no more than 1.4 metres, it can safely be assumed that this layer of rock may be encountered between 1.0 - 1.4 metres across the site

� excavation of material below this depth will be at rock excavation rates and time consuming.

This information has been incorporated into both the Centre’s concept design and the subsequent Quantity Survey’s costing report.

A copy of the full geo-technical report from the Baldwin Gardens Land Use Plan and a summary report from this final investigation are included at Appendix 2.


Baldwin Gardens site photos


Trends influencing aquatic design and usage3

When developing the new regional aquatic centre, Council needs to be mindful of the encompassing range of functions that the centre can provide to the Bundaberg community. As the centre aims to cater to a broad range of users within the region’s catchment over a long period of time, it is important that Council is aware of the current and projected community needs and of all the prevailing trends (social and aquatic) over the forthcoming years.

Bundaberg profileAs of the 2011 Census, the population of the Bundaberg Regional Council area was 89,810, an increase of 6,854 persons since the 2006. An overview of selected demographics and characteristics for populations within the 10km catchment of the regional aquatic centre and the Bundaberg LGA, as of 2011, is provided below.

Characteristics Area within

10km catchment

Bundaberg local

government area

Population 62,380 89,810Age profile0 - 4 years 6.3% 6.0%5 - 14 years 13.5% 13.4%15 - 24 years 6.7% 11.4%25 - 34 years 5.3% 9.5%35 - 44 years 10.4% 12.0%45 - 54 years 11.9% 14.0%55 - 64 years 13.0% 14.1%65 years and over 20.5% 19.6%Median Age 41 43Ethnicity and cultural diversityIdentifies as Indigenous 3.7% 3.3%Born overseas 82.7% 17.6%Speaks language other than English at home

4.0% 8.5%

Household/family compositionCouples without children 45.1% 46.6%Couples with children 35.7% 35.3%One parent families 18.1% 16.8%Other family 0.7% 1.1%Median family income (two incomes)Families without children $889 $1,629Families with children $1,061 $1,894Other characteristicsPeople needing assistance with core activities

10.0% 7.2%

Dwellings without an internet connection

28.4% 69.3%

Dwellings with no motor vehicle 9.0% 7.0%

10km catchment around the Bundaberg Regional Aquatic Centre

Bundaberg Regional

Aquatic Centre


Projected populationThe Wide Bay Burnett Region is expected to experience significant growth with the Region’s population forecast to increase by 131,700 persons by 2031. Bundaberg LGA is to play a vital role in accommodating this growth and development with a future population of approximately 150,100 persons by 2031, just over a third (35.3%) of the Region’s total population. Using the population forecasts from the Queensland Government’s Office of Economic and Statistical Research (2012), the changes to the different age cohorts between 2011 and 2031 are shown in the figure below.

0

5%

10%

15%

20%

25%

30%

35%

40%

2031

2011

0 to 14 years old

65+ years old

45 to 64 years old

25 to 44 years old

15 to 24 years old

Future growth areasKalkie and Ashfield are the two suburbs predicted to support a substantial amount of the LGA’s envisaged growth. An identified growth area at Branyan has been designated for residential growth, however, it is envisioned that development will not occur in this area prior to 2031.

Bargara will continue to accommodate the future population growth along the LGA’s coastal strip, however, this growth is restricted by environmental factors and anticipated impacts of climate change. Bargara will continue to be the main coastal tourist town.

Bundaberg people In terms of raw numbers (as compared with proportions), the actual number of young people will continue to increase (albeit slowly), further highlighting the need for a range of family and child appropriate aquatic options and programs within the new centre.

By 2031 just under half (49.8%) of the LGA’s total population will be aged 45 years or older. This shift in population will lead to an increased demand on the LGA’s health and community services, with many looking for low impact physical activities such as aqua aerobics and swimming. The need for, and use of hydrotherapy pools as an effective treatment tool is also expected to increase by professionals and the general public.

0

5%

10%

15%

20%

25%

30%

35%

40%

2031

2011

0 to 14 years old

65+ years old

45 to 64 years old

25 to 44 years old

15 to 24 years old

Future growth around the Centre

Kalkie

Ashfield


Changing population Ageing populationThe relaxing lifestyle and temperate climate of the Bundaberg LGA, particularly the coastal localities, has seen the area become a popular retirement destination, with 19.6% of the population aged 65 years and over. This is expected to increase to 24.7% by 2031. The Centre’s locality on the eastern side of the Bundaberg CDB has meant that many of the region’s popular retirement destinations are identified within the Centre’s 10km catchment, as such, one fifth of the expected users will be aged 65 years and over. While not directly associated with age, the proportion of people needing assistance with core activities within the Centre’s catchment is also higher than the LGA average.

Growing population The proportion of family households with children is similar to Queensland, with the percentage of children aged 5 to 14 years slightly above the State’s average. Despite the proposed decrease in the proportion of people aged 0 to 25 years by 2031, the actual number of young people and families being attracted to the region will continue to increase (albeit slowly).

It is important to note that the average family household in the Bundaberg LGA has a slightly lower weekly income than the State, this combined with the high proportion of residents aged over 65 years, means that any type of activity needs to be affordable to all to ensure equality and encourage opportunities to improve quality of life.

Changing lifestylesThere are many different employment industries within the Bundaberg LGA. In 2011, over 60.0% of the population were employed in either the retail, agriculture, forestry and fishing industries. As such, it may be assumed that a large proportion of the population no longer work the traditional 9am to 5pm Monday to Friday work week. These people are unable to participate in traditional sports and are therefore looking for other flexible alternatives.

With the city expected to increase its manufacturing and industry resources due to the region’s close proximity to mining centres and existing port facilities, airport and rail and highway networks, it is expected that the proportion of people looking for flexible recreation will increase.

Lack of child care is a common barrier to participation in physical activity, particularly for those who work outside of the traditional working hours. Approximately 53.8% of the population within the catchment area and just over half of the Bundaberg LGA population have children.

Ageing considerations An ageing population and high proportion of people requiring assistance are important considerations in the planning and design of the Facility. This group of people:

� are more likely to participate in recreational swimming

� prefer heated indoor or covered outdoor pools

� require a pool suitable for therapy and older adult exercise

� desire the inclusion of improved design features to increase accessibility to and within the Facility

� require an array of low impact programs and activities targeting older adults and people requiring assistance, such as aqua aerobics.

Family considerations As the number of families and children within the region continues to increase, the need for a range of family and child appropriate aquatic options and programs is essential. Families and children often seek programs and facilities such as:

� learn to swim facilities and programs

� crèche and kiosks for adults to relax while supervising children

� informal water play areas � appropriate shade incorporated

throughout all areas � shade around the pools � informal places to gather and

socialise � picnic facilities � appropriate changing facilities.

Changing lifestyle considerations

Demands such as work and/or family, are placing significant time constrains on people’s lives and as such, people are participating in recreation at different times throughout the day. To accommodate for these types of users, the regional aquatic facility should offer:

� an indoor heated pool to encourage year round use

� longer operating hours, 7 days a week

� variety of programs at different times, not just the early morning and evenings

� wide range of experiences/activities under the one roof

� social, educational, training and competition settings

� attractive dry facilities such as sports medicine/therapies, cafes and crèche

� extended crèche hours.


Variety of experiencesDry experiencesAquatic facilities are no longer a place for the stand alone 50m swimming pool. The inclusion of dry features, such as meeting rooms, medical and therapy clinics and gyms are seen as greatly improving the operations and subsequent viability of aquatic centres.

As Bundaberg becomes more of a central port feeding Gladstone and surrounding mines, opportunities will arise to provide these expanding companies with a high quality facility for meetings and functions. The convenience of having a medical clinic operating out of the Centre will also be a draw card for Bundaberg’s ageing population, families and work force.

The inclusion of these dry features generates a significant revenue stream and ‘subsidises’ the operating costs of pools/leisure water.

Wet experiencesAs Bundaberg grows, people are becoming more exposed to and aware of new recreation experiences and opportunities. With Bundaberg’s population expected to grow and more people relocate to the region either for employment opportunities and/or quality of life, the residents of Bundaberg are more likely to seek a facility that provides a variety of recreation activities in a social, competitive, individual and/or educational environment that allows flexibility and does not require weekly commitment.

This has become evident through the rising participation numbers in aerobics/group fitness, consistently the second most popular physical activity participated in since 2003, behind walking. Swimming is ranked third.

Bargara is currently the LGA’s main tourist destination, and this is expected to continue into the future. Within the Centre’s 10km catchment, it is assumed that the Centre will be heavily utilised by tourists, especially as there are no aquatic centres or water parks along the coast.

High expectationsHigh quality, modern designs are increasingly expected by patrons of major venues. Design and finishes need to reflect the atmosphere of the centre.

With Bundaberg’s subtropical climate of hot summers and mild winters means users will want and expect a facility that is safe and secure and provides one with the opportunity to recreate, in comfort, in all weather and environmental conditions. People are becoming more sun safe and with average summer temperatures around 30 degrees celsius, users desire a covered and cool facility to exercise with modern amenities and ancillary features where they can relax and socialise.

Ancillary features are now developed as ‘high-end’ services and are seen as valuable tools in lengthening the duration of time patrons will spend at the Centre.

Variety of experiences Offering a variety of experiences at the one location not only keeps current users interested and generates revenue, it attracts new users that would not normally attend such facilities. As such the new Centre needs to add to the experience of the users by offering:

� wellness/health club and extensive program room inclusions

� complementary services and amenities, crèche, kiosk

� meeting and function rooms � consulting suites for allied health

services (e.g. physiotherapy) � extensive and varied program and

leisure water and attractions � inclusion of a 50m pool and

separate warm water pools � retail outlets � range of ancillary features/spaces

such as waiting areas, ‘lounging’ areas

� something different and/or unique from neighbouring or similar facilities.

Maintaining high expectations

As a regional aquatic centre the design and finishing of the Centre needs to be of a high standard to attract the maximum user market.

� changing rooms - high quality, modern designs are increasingly expected by patrons

� reception/entry - designs are reflecting the importance of a welcoming and highly functional venue entry. Entries needs to include spacious foyers with an attractive,enticing approach to the reception counter

� kiosks - are becoming cafes that serve quality food and drinks and allow patrons to sit down and enjoy a meal or eat on-the-go

� wellness/fitness centres - high quality features within an aquatic facility that incorporate a range of opportunities by themselves, while still maintaining resistance training opportunities, cardio and group training options.


Tourism and economic benefits A well designed regional aquatic facility can bring many additional benefits for councils, in addition to those related to physical activity.

LocationLocated along one of Bundaberg’s main thoroughfares, the Centre is positioned in a spot that is highly visible from the Bundaberg Ring Road. While it is assumed that the majority of Bundaberg residents will know about the Centre via local marketing and word-of-mouth, building the Centre on a busy road that is commonly used by visitors to the LGA (either for business or pleasure), increases awareness and promotion of the Centre.

EmploymentThe construction of the Centre, along with the management of the Centre after completion will provide a host of employment opportunities for the community. From students to seniors, the pool will create a number of jobs at varying skill and experience levels for many individuals in the community.

TourismThe Centre will not only attract more tourists to stop and visit the LGA, but encourage them to spend more time here. There are currently no public swimming pools along the Bargara coast, the LGAs popular tourist destination, making the Centre a safe and low cost activity for holiday makers. The informal water and land play activities, combined with picnic facilities will also encourage people to stay longer.

EventsThe olympic certified 50m competition pool will attract a number a major swimming events at a state, national and regional level, bringing large numbers of people to the LGA.

The meeting rooms, informal water and land play activities and picnic facilities provide the opportunity for large private and corporate events/hire.

Constraints to participation CostPeople’s ability to participate in recreation options are often constrained by the cost to participate, access to the facilities, lack of information about what is available and health problems.

Patrons are becoming more concerned about the costs (and the possible loss of income as a result of an injury) associated with participating in sport, recreation or physical activities. As discussed in ‘growing population’ the cost to use and participate in programs at the Centre need to be affordable. Many centres have subsidised the cost to use the pools by the more profitable dry facilities (wellness/fitness centre, treatment rooms, etc.).

AccessThe proportion of people within the 10km catchment of the aquatic Centre without a motor vehicle is higher than the LGA and State average. With an ageing population and subsequently a rising number of people requiring assistance, access to the Centre by public transport is essential.

The opposite side of the Ring Road is serviced by the Ring Road Pedestrian Path, however one would have to cross the Ring Road to access the Centre. With significant growth projected for the Kalkie-Ashfied area, access to the Centre by bicycle, foot and public transport must be considered.

Lack of timeLack of time is often the main barrier to participation in physical activity and recreation.

As Bundaberg’s industries continue to change, so too does the employment behaviours and routines of the community. While it is not ideal to keep the pool open 24hours, having the health and fitness centre open 24hours by swipe card is a way of trying to accommodate for those that don’t normally have time during the day or business hours.


Different types of aquatic facility usersAquatic users are typically defined by four main groups, each with a different need configurations for aquatic spaces and different water temperatures.

The four types of users are:

recreation users

education users

therapy users

fitness & competition

users

1. recreation and social users − families and friends − gather for fun and/or social gatherings such

as birthday parties2. fitness and competition users

− club members − competitive swimmers − users that swim to keep fit − participate in aquatic fitness classes

3. education users

− swimming lessons (private and/or done through the school)

− school carnivals − first aid, surf lifesaving and CPR courses

4. therapy users − rehabilitation − elderly − disabled

Recreation usersRecreation users make up the majority of aquatic users accounting for approximately 60 to 70% of users. These users often recreate in the warmer months and cover a wide variety of age groups, from toddler to seniors. Often families, they require a range of aquatic features for children of varying ages to play and interact with. Shaded picnic and BBQ areas, lockers, kiosk and lounge chairs are extra comforts desired by parents and encourage extended stays.

Fitness and competition usersFitness and competition users account for 20 to 25% of aquatic centre patrons. This group doesn’t often bring in a lot of revenue however, they are often the most consistent users, particularly if the facility is built for all-year use.

Education usersLearn to swim, water safety and CPR training are important and essential education programs. The aquatic centre users that normally partake in these programs range from babies to seniors. These programs can either be private or conducted through local schools, making them a popular revenue earner for aquatic centres. A good design that allows all-year round use (heated pool) and protection from the weather can further increase the number of this user type.

Therapy usersTherapy users are a targeted group of individuals that require specific facilities and programs. Currently the fastest growing user group it consists mainly of older adults, people with a disability and/or medical conditions. Users often require warm water pools where a variety of low impact classes, programs and exercises can be performed. With Bundaberg’s ageing population, it is expected that this type of user will significantly increase into the future.

Source: Pennsylvania Department of Conservation and Natural Resources, Bureau of Recreation and Conservation.


Concept plans

Design layout1. 50 x 25m Competition pool (PWD Ramp)2. Spectator stand (approx. 400 seats)3. Heated indoor ‘Learn to Swim’ pool (15 x 10m)4. Heated indoor 25m lap pool (PWD Ramp)5. Hydrotherapy pool (5 x 4m)6. Lagoon pool with beach entry7. Family play ‘mushroom towers’ (allow for future water

cannons x 4)8. Covered children’s play area9. Health and fitness centre (approx. 300m2)10. Exercise courtyard11. Wellness centre (approx. 80m2)12. Wellness courtyard13. Amenities and change rooms14. PWD amenities and change rooms15. Lockers16. Staff room and amenities17. Community meeting rooms (approx. 85m2)18. First aid room19. Administration20. Merchandise shop21. Reception22. Main entry foyer23. Child care (creche) and secure outdoor area24. Cafe and service yard25. Covered outdoor area26. Outdoor showers27. Outdoor cinema screen28. Raised lounge podium29. Rock climbing wall30. BBQ shelters31. Bridge32. Sun shades over33. Lawn area34. Soft fall surrounds35. Decorative concrete36. 2400 High fence37. Ramp entry (1:20 gradient)38. Plant room39. Dry store40. Stores41. Service road/access42. Carpark43. Bus parking zone44. PWD car parking45. Drop off zone46. Porte cochere entry47. Pylon sign 48. Water tanks

Bundaberg Regional Aquatic Centre Legend

4


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AQUATIC CENTRE LEGEND

1. 50 x 25m Competition Pool (PWD Ramp)2. Spectator Stand (approx. 400 seats)3. Heated Indoor ‘Learn to Swim’ Pool (15 x 10m)4. Heated Indoor 25m Lap Pool (PWD Ramp)5. Hydro Therapy Pool (5m x 4m)6. Lagoon Pool with Beach Entry7. Family Play ‘Mushroom Towers’ (allow for future water cannons x 4)8. Covered Children’s Play Area9. Health + Fitness Centre (approx. 300m2)10. Exercise Cour tyard11. Wellness Centre (approx. 80m2)12. Wellness Cour tyard 13. Amenities +Change Rooms14. PWD Amenities + Change Rooms15. Lockers16. Staff Room + Amenities17. Community Meeting Rooms (approx. 85m2 total)18. First Aid Room 19. Administration20. Merchandise Shop21. Reception22. Main Entry Foyer23. Child Care + Secure Outdoor Area24. Cafe + Service Yard25. Covered Outdoor Area26. Outdoor Showers27. Outdoor Cinema Screen28. Raised Lounge Podium29. Rock Climing Wall30. BBQ Shelters31. Bridge32. Sun Shades Over33. Lawn Area34. Soft Fall Surrounds35. Decorative Concrete36. 2400 High Fence37. Ramp Entry (1:20 gradient)38. Plant Room39. Dry Store40. Stores41. Service Road / Access42. Carpark43. Bus Parking Zone44. PWD Car Parking45. Drop Off Zone46. Por te Cochere Entry47. Pylon Sign48. Water Tanks

13. 13.

A full A3 version of the concept design is attached in Appendix 3


AERIAL PERSPECTIVE20120114 BUNDABERG REGIONAL COUNCIL | Bundaberg Regional Aquatic Facility - Feasibility Investigation

03 OCTOBER 2013

1

Aerial perspectives Architectural statementsThe following comments by the concept design’s architect provide a rationale for the various main features of the proposed Bundaberg Regional Aquatic Centre:

� the Centre’s prominent entry statement and building elevations provide maximum exposure to passing traffic along one of the City’s major thoroughfares (Ring Road)

� the drop-off location and logical car parking provide convenience and legibility

� the family friendly ‘on grade’ (ground level) leisure pools and water play area are centrally located for maximum convenience and supervision

� use of ‘hard structure’, ’soft structure’, and landscaping maximise shaded area

� expansive lawned area provides family friendly play and picnic amenities

� training pools are raised above ground to minimise bulk rock excavation, and to provide for controlled entry and effective ‘segmentation’ of such areas

� central building plan allows for staged construction and efficient supply of services

� centralised pump equipment facility minimises quantity of equipment required, and reduces ongoing maintenance and servicing.


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1. 50 x 25m Competition Pool (PWD Ramp)

2. Spectator Stand (approx. 400 seats)

3. Heated Indoor ‘Learn to Swim’ Pool (15 x 10m)

4. Heated Indoor 25m Lap Pool (PWD Ramp)

5. Hydro Therapy Pool (5m x 4m)

6. Lagoon Pool with Beach Entry

7. Family Play ‘Mushroom Towers’

(allow for future water cannons x 4)

8. Covered Children’s Play Area

9. Health + Fitness Centre (approx. 300m2)

10. Exercise Cour tyard

11. Wellness Centre (approx. 80m2)

12. Wellness Cour tyard

13. Amenities +Change Rooms

14. PWD Amenities + Change Rooms

15. Lockers16. Staff Room + Amenities

17. Community Meeting Rooms (approx. 85m2 total)

18. First Aid Room

19. Administration

20. Merchandise Shop

21. Reception22. Main Entry Foyer

23. Child Care + Secure Outdoor Area

24. Cafe + Service Yard

25. Covered Outdoor Area

26. Outdoor Showers

27. Outdoor Cinema Screen

28. Raised Lounge Podium

29. Rock Climing Wall

30. BBQ Shelters

31. Bridge32. Sun Shades Over

33. Lawn Area34. Soft Fall Surrounds

35. Decorative Concrete

36. 2400 High Fence

37. Ramp Entry (1:20 gradient)

38. Plant Room39. Dry Store40. Stores41. Service Road / Access

42. Carpark43. Bus Parking Zone

44. PWD Car Parking

45. Drop Off Zone

46. Por te Cochere Entry

47. Pylon Sign48. Water Tanks

13. 13.

1

2

4

3

Position of aerial perspectives


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13. 13.

South west facing towards the southern end of the Bundaberg RIng Road


2 West facing towards Bundaberg City


03 OCTOBER 2013


03 OCTOBER 2013


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4

South east facing towards FE Walker Road

North east facing towards the coast

A3 versions of the aerial perspectives are attached in Appendix 3


Ground perspectives


03 OCTOBER 2013


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13. 13.


ELEVATIONS20120114 BUNDABERG REGIONAL COUNCIL | Bundaberg Regional Aquatic Facility - Feasibility Investigation

DRAWN BY : LM / ACNTS @ A3 | 26 July 2013 | P1 PRELIMINARY ONLY

coloured concrete block work

highlight windows to gym

timber screening fence

rainwater tanks

extend block as screen to plant deck

timber screening fence to children’s play area

por te cochere roof

main entry

long line metal roof sheet

parent’s raised deck

por te cochere behind

cafe

main entry

main counter

coloured concrete block work

long line metal roof sheet

‘wellness’ reception

raised deck

eco ply + batten fascia

cinema screen for lagoon movies

por te cochere roof

LAGOON ELEVATION

ENTRY ELEVATION


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Elevations


Design considerationsThe following provides an explanation of the importance of each of the functional areas proposed for the Regional Aquatic Centre and how they will interact.

Lagoon poolLocating the water play directly in line with the centre’s entry provides an attractive, exciting and welcoming experience for patrons. Due to the high popularity of such a feature, it is located centrally within the venue, with direct lines of sight from almost all other areas.

Essential direct connections within the centre include the cafe, change rooms and picnic and shaded area. These links provide functionality and comfort (and spending opportunities) to parents/carers of children, a crucial outcome to ensure return visits and thus the centre’s ongoing viability.

Indoor pools (Learn to Swim and 25m)These are both major revenue earners for aquatic centres providing a range of exercise and other programs, in addition to the very profitable Learn to Swim programs.

Due to the specific nature of the activities provided by these facilities, they are able to be almost stand-alone features within the centre. Most users come to the centre for a specific purpose, and as such, the most important connections are with the entry/foyer, cafe and family change amenities. Upon entering the centre, access to these pools should be obvious to the patron.

50m outdoor poolA main feature of the centre within Stage 2 that will allow it to function as a true regional competition facility and provide additional services such as lap swimming, water polo, etc. This pool has direct links to spectator areas due to the activities catered for. Its size attracts attention upon entry and is easily accessed from all components of the centre, being located adjacent to the core hub of change rooms, cafe and entry.

Picnic and Shaded areasThese facilities may seem minor but are very important in providing an all-round experience for patrons where they can enjoy more passive pursuits as part of their visit. The location of such facilities adjacent to other main activity areas is essential, allowing patrons to alternate between areas throughout their stay, and allowing easy supervision of children. Visibility of the cafe from such areas is also essential to promote its services.

Cafe, merchandise shop and child-mindingThese features greatly add to the Centre’s viability as significant potential revenue streams (child-minding to a lesser extent). Further, they add to the patron’s experience and meet expectations for such features in modern centres. The merchandise shop and cafe should be immediately adjacent the centre entry, encouraging patronage both upon entry and exiting the venue. It is also vitally important that the cafe is easily seen and accessed from most components of the centre to encourage patronage throughout a visit.

Child minding facilities need to be located as close to the centre’s entry as possible, making access easy upon arrival, minimising inconveniences for users.

GymAnother significant potential revenue stream in Stage 2 of the Centre’s development. Essentially a stand-alone feature of an aquatic centre, gyms still need to maintain strong connections to components such as the entry, cafe and merchandise outlet. Designs often allow open vistas from gym activity areas over attractive components of the aquatic centre.

A discreet, but connected, entry point from the main facility is desirable, for patrons not wishing to be involved with the aquatic components of the centre.

Recreation featuresIn addition to the large lagoon pool and its water play features, there are other recreation features designed to attract a broader range of patrons and enable the Centre to host a wider range of events. The main two such features are:

� the large outdoor movie screen incorporated into the wall of the building overlooking the lagoon pool, allowing ‘dive-in’ movie events and additional attraction for corporate and private events

� the climbing wall immediately south of the 50m pool utilising the raised profile of the pool.


Facility managementThere is no set formula for deciding the best management option for aquatic facilities as each facility and community is unique. However, the prerequisites for successful facility management are:

� Planning – so that all stakeholders know what is trying to be achieved. The more clearly direction is defined, the more likely a facility will achieve the target. Many conflicts can arise when the facility manager does not clearly understand the financial and social equity targets of the facility.

� People – there needs to be skilled staff that can deliver the service that is expected. A range of skills with a customer focus is required. � Systems – the appropriate systems to manage the financials, assets, safety etc need to be in place and be operated by skilled staff.

The most effective management models for the Bundaberg Regional Aquatic Centre will not be easy to determine. It must be noted that whatever model is eventually adopted, careful consideration will need to be made regarding the ongoing management of the Centre.

Management and operations 5

StakeholdersTo add to the complexity of the possible management options for the proposed Regional Aquatic Centre is the range of stakeholders likely to be involved. In addition to possible external funding providers (such as State and Federal Government), it is anticipated that further stakeholders will also include Bundaberg Regional Council and Business and Industry.

How the Centre is to be managed will be driven by the desired outcomes and level of contributions of each of these stakeholders. These desired outcomes for each are summarised as follows:

Bundaberg Regional Council (Council)Through various studies, Council has identified that there is currently insufficient provision of adequate aquatic facilities and opportunities for Bundaberg residents.

Council has identified the need to develop a new aquatic facility and sees the proposed centre as an effective manner in which to address this need. It is possible that Council will not prefer to be the direct manager of the Centre, however, given the potential community benefits, it should have significant input in an ongoing manner.

State and Federal GovernmentHistorically, the State Government has been a significant investor in facilities such as regional aquatic centres through its Major Facilities Program. However, since the change in government, major funding ‘shift’s’ have occurred (including those to assist with recent natural disasters such as floods). As such local governments have to rely less on such funding.

The former Major Facilities Program was a valuable source of such funding, with

funding of up to 50% of multi-million dollar projects sometimes being granted. More relevant in the case of the Bundaberg Regional Aquatic Centre may be another program, the ‘Royalties for Regions program’, managed by the Department of State Development, Infrastructure and Planning.

While the Federal Government may have had less of a role in the past in funding such facilities in Queensland, the Regional Development Australia Fund (RDAF) is now considered an important funding partner for such projects.

Business and IndustryAs shown in the Financial Considerations section later in this report, the proposed Centre will have significant costs associated with its development and subsequently, It may not be possible to fund all stages of the Centre without investment from the private sector.

The final management model of the Centre will therefore need to reflect the opportunities for such private involvement to see a return on their investment, be it direct financial, long term tenure reflective of the level of contribution, publicity and promotion (such as naming rights), or otherwise.

Financial managementAn important consideration for the operations of any aquatic centre is the variance of financial viability of its individual components.

Historical data from similar centres clearly indicates that certain components of aquatic centres ‘subsidise’ the operations of others. Features such as learn to swim pools, cafes, and gymnasiums have the potential to raise significant revenue for the Centre’s operator, while features such as 50m outdoor pools have high operating costs and limited returns. It should be further noted that while features such as the proposed lagoon pool do not directly generate income, they greatly add to the attraction of the Centre and therefore its ongoing viability.

Due to the significant capital costs involved with the design and construction of the proposed Centre, possible funding sources have also been investigated.


In determining the best possible management structure for the ongoing operation and management of the Centre, it is first important to look at the advantages and disadvantages of structures that are generally employed for such facilities.

Several structures have been considered for the ongoing management of the Centre and are summarised in this section. It should be noted that this is a summary of the general structures only, with a specific business model to be considered by Council at the appropriate time of development.

The key models include:1. In-house management: full in-house

operational management of all services2. Out-sourced contract management:

full out-sourcing of the operational management of all services

3. Hybrid model: a combination of inhouse (facility management) and outsourcing of key services e.g. operation of a gymnasium/fitness centre, learn to swim programs, hospitality services, etc.

It is recognised that it is difficult to make profits from some of the proposed functional components while it is accepted that the operation of other components have the potential as high revenue earning services.

This provides the opportunity for management to use the profits from high revenue earning programs and services to off-set the operational costs of other non-profitable services whilst still effectively creating a ‘one stop shop’.

The selection of an appropriate management structure is influenced by:

� Planning:The Centre’s business and strategic plan in relation to the financial targets and community service obligations.

� Organisational support:Determining if the management of venues and services is considered to be a core business of Council.

� Performance outcomes:The ability to develop robust commercial structures, such as leases or contracts, which can deliver measurable commercial and social equity targets.

� Asset management:The model that improves and maximises the functionality of the Centre and increases the effective asset life cycle.

� People:In-house employment structures and associated employee awards, including the availability of suitably qualified and experienced staff from within the existing structure and/or local community.

� Program and service delivery expectations:

The ability to deliver a broad range of community programs that deliver customer service excellence and provide fair and equitable access to the greater community whilst also increasing the opportunities for commercial viability.

� Third party contribution:Possible third party contribution towards the development of the Centre.

It should also be noted that the choice of management model assigned to the Centre and its components should consider the designs of the relevant features. The hybrid model usually requires additional floor space in order to accommodate two or more management structures. As an example, the hybrid model may require separate reception areas for general admission to the aquatic features and entry to the gymnasium. This compares to the in-house or out-sourced models, which only require one reception area. The hybrid model may also need separate office space for staff and support equipment (copiers, storage space, etc) compared to possible joint office space and services for non-hybrid models.

It is important when establishing any detailed business plan/s for the Centre that Council clearly define its desired financial performance outcomes. The key outcome that needs to be clearly defined is the expected level of operational cost recovery.

This simply relates to the level of subsidy Council is prepared to accept when taking into account levels of patronage, community service obligations and benefits the facility provides the community. It is important for Council to maximise the rate of return on the investment and aim to achieve operational cost recovery. while still ensuring that the Centre is affordable and accessible to a broad section of the community.

Subsequently, the three key structure options are outlined as follows.

Management structures

3 Types of management options1. In-house 2. Out-sourced (contract managers appointed)3. Hybrid management option (combination of option 1

and 2)


Option 1: In-house managedUnder this structure, the Centre would be under the control of Council, which may consider the future formation of a dedicated Business Unit to manage this and other similar facilities (commonly indoor and aquatic centres).

Under this model, Council’s Business Unit would receive all profits resulting from the Centre’s operation, but would also be responsible for all operational and maintenance costs. The structure of this Business Unit will need to allow it to utilise Council’s significant resources in this regard.

This structure also enables Council to develop a consistent marketing strategy (including branding) for the Centre, and if a Business Unit is formed in the future, this can be applied across all of its facilities.

The acceptance of the in-house model implies Council will be responsible for the operational management of the facility including high revenue earning programs such as:

learn to swim, exercise, rehabilitation and other aquatic programs

operation of health and fitness services (gym)

delivery of food and beverage services.

However, it must be recognised that certain components of the Centre have significant operating costs that will draw on the profits made from the above revenue streams.

These high operational cost components include: � the 50m outdoor pool � indoor 25m and program pools � lagoon pool.

Further, the fit-out and establishment costs of some of the Centre’s components will be significant. These costs will include, but not necessarily be limited to:

� gymnasium/fitness centre (weights, exercise equipment, etc) � food and beverage service area/s � child minding facility � reception/POS (Point of Sales).

The philosophical argument that needs to be addressed is whether or not Council considers it should be in the business of operating these services. The counter to this argument is that Council should consider retaining the high revenue generating services in order to reduce the financial burden. It can also ensure that there is accountability and consistency in the delivery of quality customer service outcomes. This can effectively reduce the amount of customer complaints compared to the out-sourced and hybrid models.

This model will also require the employment of specialist officers including professional venue managers and support staff, hospitality, and health and fitness staff, program delivery staff and qualified lifeguards. This would provide Council with an in-house specialist knowledge base and skill sets that can be used to good effect across other facilities in the future.

To ensure the effective management of the Centre, a full time venue manager and at least two (part-time) duty managers (or similar) will need to be employed. These positions will also require access to a pool of relevantly qualified casual staff.

This model also provides Council with the opportunity to raise its community profile. Council can ensure that customer service excellence is delivered at the Centre whilst providing fair and equitable access to cost effective programs and services.

In-house management provides the potential to generate operational cost efficiencies in relation to employee costs. This is best demonstrated when a single reception staff member can not only service the general facility users but also assist with café operations and supervise health and fitness members as they sign in.

Asset management needs to be considered in the selection of the business model. There is a high level of capital expenditure involved and consequently a need for controlling asset management and maintenance costs. This model will require correct asset management plans to be developed and implemented. This can effectively increase the life of the facility and provide opportunities to maximise the use of the asset. Council must be mindful that the proposed Centre is a multi-million dollar investment that needs to be protected.

Historical evidence shows that asset management can be a low priority for out sourced providers.

There are advantages and disadvantages of this management option with the key issues summarised as follows:


Advantages � enables Council to control the ongoing

operation and maintenance of the Centre � demonstrates Council’s commitment to

the facility � provides staff managing the Centre with

access to Council’s significant resources (IT support, financial management system, security, etc)

� ensures Council will have access to the Centre when required

� Council is likely to be responsive to community needs in regard to use of the Centre

� allows Council to determine the range of services to be offered from the Centre

� high revenue services subsidises low return areas such as general entries, lap swimming

� enables Council to evaluate the Centre’s potential and ensure that its usage is consistent with its objectives

� provides greater flexibility in being able to access resources when needed and at lower cost that contractors

� direct control of customer service delivery standards for all services within the Centre.

Disadvantages � current Council staff structures don’t

include specific skills and experience necessary to effectively manage and promote the proposed facilities and subsequently, there may be significant costs and time involved in attracting and employing such personnel

� operational budgets need to be allocated and there are financial risks associated with such facilities

� increased budget for fit out of the operational areas such as health and fitness and kitchen equipment

� Council’s processes and procedures may not offer the flexibility to operate the facilities efficiently and competitively in comparison with commercial operators

� an investment in management and control systems is required e.g. staff, asset management, catering, bookings, and financial management

� the operation of aquatic facilities is perceived to be high risk.


The appointment/employment of a facility manager/management group can be an effective manner to manage and operate aquatic centres. This is due to the fact that such facilities are highly specialised in their operational nature, requiring specialists with the adequate experience, qualifications and resources available to ensure the facility’s ongoing viability.

A significant advantage of utilising this management model (assuming satisfactory tender responses are received) is the ability of these organisations to accurately determine the appropriate facilities, services and programs that should be offered by the Centre. This is due to the fact that they will be highly driven by ‘the market’. That is, they have to offer popular attractions to ensure that people will come and pay to use the Centre and the programs being offered. Another advantage of this model is the ‘distancing’ of Council from the day to day issues associated with aquatic facility management, including the risk of litigation through personal injury claims.

Other major benefits of employing a contractor to manage the Centre include, but are not necessarily limited to:

� access to specialised staff in various program and facility management areas

� a proven ability to develop and effectively manage quality programs

� a knowledge of the importance of, and an ability to, apportion revenues across different areas, such as admission fees, membership fees and program participation fees

� the employment of strategies to ensure effective marketing and promotion of the Centre and its services, including the use of social media (facebook, twitter, etc)

� greatly enhanced ability to access appropriate training needs for staff through established networks.

Consideration should be given to inviting tenders from operators of aquatic facilities. It would be anticipated that two main ‘types’ of organisations will submit offers under this process:

� established community organisations that may include organisations such as PCYC, YMCA or similar

� professional management companies.The success of any commercial or community operator is highly dependent on the terms and conditions, and structures, of the associated management agreements negotiated by Council. It is imperative that the agreement clearly defines performance criteria in relation to community obligations and access, quality of service levels, financial performance, program outcomes, fees and charges, asset management (including maintenance), quality control and reporting protocols. There is also a need to ensure that skilled in-house staff resources are available to effectively manage the contract.

Community and commercial operators need to clearly demonstrate their capacity to manage a facility including access to the resources required to deliver the outcomes established under the agreement. There is considerable capital outlay required with

the fit-out of facilities including information and communications technology to support the management of the venue, health and fitness equipment, hospitality equipment and resources, facility management operating systems (e.g. bookings), furnishings and fixtures.

There is a recognised expectation that Council will provide an on-going level of operating subsidy with major maintenance and capital works (provided by Council).

It should be noted there are a limited number of successful commercial providers delivering these services. The past decade has seen a gradual decline in the number of commercial operators in the market, principally due to issues surrounding poor delivery standards and lack of financial resources..

The need to provide community service obligations for Council whilst achieving commercial returns for the operator are very difficult to manage. The management agreement will need to clearly define these areas and performance outcomes. Council’s decision making processes and systems can inhibit the commercial operator in their ability to make independent and quick business decisions.

There are advantages and disadvantages involved with both types of organisations, with the main issues identified (in no particular order) in the table below.

Option 2: Out-sourced


Management types Advantages DisadvantagesCommunity organisations (CO) CO’s can be more interested in a balance of

community benefit and profit, not just profit alone. However, this focus is changing.

In recent times, CO’s have developed a much higher ‘business’ focus and may well expect Council to subsidise the Centre’s operations.

CO’s usually have extensive networks within a community, with their ‘brand’ generally being highly respected

CO’s have in the past, assumed an unreasonable level of control over a facility, reducing access to other community groups. This has however, been diminishing over recent years.

If relevant, the CO can establish its ‘headquarters’ at the Centre, creating a greater presence.

Some CO’s may have limited resources, especially in comparison to commercial organisations, and can be affected by changes in the political landscape.

Community organisations have experience with the community’s needs and wants and it is usually in their charter to provide benefits to the community through their operations.

PM’s are usually well resourced in all the relevant areas of facility management (administration, financial control, asset management, etc).

Usually have established systems for the business-related aspects of managing a facility such as marketing, financial management, asset management and effective administration processes.

Potential for obtaining a capital contribution from the PM in return for a long-term lease/ contract.

Management types Advantages Disadvantages Professional management (PM) Suitable PM’s are generally staffed by personnel

with facility management experience.PM’s reason for involvement in such centres is to make a profit – sometimes community organisations can suffer as a result through high hire fees, lack of access, etc.

PM’s are usually well resourced in all the relevant areas of facility management (administration, financial control, asset management, etc).

PM’s are likely to have a higher level of skill in negotiations than Council staff and users of the facility. This may result in a PM achieving a higher level of control than intended.

Potential for obtaining a capital contribution from the PM in return for a long-term lease/ contract.

Conditions of the arrangement must be well documented to ensure capital development meets expectations and is managed appropriately.

Important Note:

1. There are important considerations to also include if Council adopts this management model for the Centre: � there are major risks involved in estimating accurate projected revenues and expenses for the operation of any aquatic facility � these projections will guide the development of the terms and conditions of the management contract and the amounts payable by

both Council and the contractor and subsequently must be as realistic as possible2. Management fees

� taking the above level of uncertainty into account, it is recommended that for the initial 12-24 months of operation under this management model, Council negotiate a Management Fee based on the appropriate percentages of revenues and expenses, until such time that both parties are comfortable to negotiate a Lump Sum Contract, based on the data from the initial operating period

� it must be noted that there is a level of uncertainty involved in utilising a Management Fee based on percentages - that is, the exact amounts to be paid or received by Council will fluctuate. While Council’s actual return under the Lump Sum Contract arrangement may actually be slightly less than that through the Management Fee model, it will provide Council with financial certainty, allowing realistic budgetary decisions to be made in an ongoing manner

� determination of the Management Fee and subsequent Lump Sum Contract should consider the expected costs to Council of managing and operating the Centre itself. That is, it should reflect an overall saving to Council.


The hybrid model includes the combination of in-house and commercial operators. The operational management of the facility would be in-house with specialist operational areas within the Centre leased to commercial operators. These service areas could include a health and fitness centre and food and beverage services, both of which are potential high revenue services.

The operation of a gym is generally considered to be a higher risk delivery area, but in effect, this can easily be mitigated through the development of an appropriate risk management strategy.

The tender process for leasing the areas is usually highly competitive. This can result in significant revenue for Council through the subsequent commercial lease fees applied.

Further, Council is still able to offer these popular activities from its Centre, without the responsibility of managing them and their sometimes complicated processes (equipment leases, memberships, etc). It should be noted however, that this model is usually more successful in larger cities where there is a high demand for the services offered.

It is essential that the lease agreement clearly enunciates the roles, responsibilities, the service levels and the key deliverables as detailed under the out-sourced model above.

The difficulty is usually with the management and enforcement of the agreement.

This management model is sometimes popular with larger Councils that have the ability to put in place the staffing resources and lease arrangements required for such an operation. It should be noted that there is generally a large percentage of casual positions involved in the on-going operations of such facilities. This provides Council the flexibility to manage the inherent fluctuations between quiet and busy periods experienced by such venues.

It is important that the building design allows for this dual management model. The hybrid model will require access to additional floor space in order to deliver their services. This could include additional reception areas,

office space, staff changing facilities, storage area, information and communication technology services.

Further, Council needs to ensure that qualified contract management staff resources are available to manage the lease or contract.

There are advantages and disadvantages of this management option with the key issues summarised as follows:

Advantages � enables Council to control the on-going

operation and maintenance of the Centre

� demonstrates Council’s commitment to the facility

� Council is likely to be responsive to community needs in regard to use of the Centre

� allows Council to apply resources to promotion and marketing of the Centre

� Council can reduce the financial impact and risk through immediate lease income.

Disadvantages � Council lose the opportunity to

capitalise on the growth potential of the high revenue service areas

� inability to effectively manage the contract and level of service delivery

� operational budgets need to be allocated and there are financial risks associated with such facilities

� Council’s processes and procedures may not offer the flexibility to operate the facilities efficiently and compete with commercial competitors

� additional floor space required to support lessee in the delivery and management of their services

� the risk of business failure of the operator and impact on Council – financially and community profile

� limited ability to access resources to deliver community service obligations

� limited ability to ensure that all services within the facility are affordable and accessible to the greater population.

Option 3. Hybrid management

Management structure summary

Three key management options have been considered:1. In-house2. Out-sourced3. Hybrid.The recommended option for the Bundaberg Regional Aquatic Centre is for Council to outsource the management of the Centre, that is, enter into an appropriate management contract/lease arrangement with a commercial or community organisation, following a tender process.

This is consistent with the current management of such facilities in the Region and within other similar local government areas in both Queensland and the rest of Australia.

While it is noted that some of the larger Councils, particularly in South-East Queensland, are beginning to manage such facilities themselves, these Councils have access to large and diverse employee catchments and significant financial and other key resources.


Recommended structure: out-sourcing The recommendation of outsourcing the management of the Bundaberg Regional Aquatic Centre is based on the following key considerations:

� Council does not currently have the staff resources to operate the Centre in a manner to utilise its full potential as a regional aquatic facility

� it is possible that Council will not be able to attract and retain the required number of qualified and experienced staff to effectively manage the Centre in an ongoing manner

� the costs associated with Council acquiring the required resources to manage and operate the Centre appropriately will be at least those associated with the fees involved in a management contract with a private provider

� the successful tenderer for the management of the Centre is likely to have access to the full range of resources necessary for the operation of a regional aquatic centre, including qualified and experienced staff.

It is also recommended that Council make an early decision on the preferred management model that will be adopted. A delay in this decision will impact on a number of key determinants including operational budgets, asset management, staff resources, lease contract documentation, fixture and fittings budget, marketing and promotion, information and technology requirements and facility management operating systems.

It is further recommended that the management and delivery of programs, hospitality services and any future health and fitness centre (gym), be included in the management contract. These service areas are high revenue generating units within this quality facility and will need to be managed accordingly. Council will be able to capitalise on the potential future revenues that can be achieved through these areas by the consequent contract fee. As these areas can also be considered to be higher risk service areas, the risk to Council is reduced through the existence of the management contract with the successful tenderer.

Tender options � tenders for the management rights can

be called concurrently with the detailed design and construction process of Stage 1, so that applicants can be invited to include capital contribution options in their proposals and possibly be involved in the final design process. It should be noted that even if the successful applicant is not determined prior to the final Centre design being completed, it is imperative that an experienced aquatic facility manager be involved in the design control group to ensure the functionality of the final design

� Council implement this management model for the operation of Stage 1 of the Centre (possibly for 5-10 years) and following this initial contract, call for tenders for a new arrangement during the design and construction of Stage 2 (50m pool and gymnasium). This will allow contract/lease negotiations to be based on the significantly upgraded Centre and on accurate operating revenues and expenditures of Stage 1. It also provides Council with the opportunity to request that tenderers include capital investment options in their submissions in return for longer term arrangements.

Further considerations Marketing:With the high quality facilities and services to be offered by the proposed Centre, a significant focus should be placed on promotion and marketing, especially during construction and in the initial twelve months of operation. This would continue, at a lightly lesser extent, over the following two years, but be included in all Council and contractor/lessee marketing tools (website, advertisements, etc).

Additional forms of advertising and promotion need not be expensive if funding doesn’t allow. Media releases, local radio announcements, and features on relevant websites are all effective methods of promoting such a development to the community. This could be bolstered by more traditional advertising if the operating budget allows. As an example, a major facility opening could be organised, incorporating a range of activities and possibly include an appearance by an appropriate local ‘celebrity’.

Risk management:As for the staffing levels of the Centre, risk management plans will need to be finalised once detailed Centre designs are complete. Council will need to ensure that the selected management body will provide these prior to opening the facility to the public.

These Risk Management Plans should be developed by the venue manager and should be guided by the relevant available resources (such as the RLSSA Guidelines for Safe Pool Operation). Contractors engaged to manage any other components of the Centre will be responsible for developing their own Plans and this should be a condition of the management contract.

Council will have responsibility for approving all Risk Management Plans and ensuring (through a regular reporting mechanism) that they are followed and documented.


Financial considerations

Capital costsDavis Langdon (Quantity surveyors), have undertaken a preliminary cost estimate report for the proposed Bundaberg Regional Aquatic Centre. A copy of the full report, including a whole of life cost analysis and depreciation schedule, is included as Appendix 4, with a summary of the report as follows:

STAGE 1Item Cost ($)Miscellaneous items (showers, barbecues, store/plant rooms, etc)

823,470

Heated pools (Indoor 25m and Learn to Swim) 3,331,690Lagoon pool 2,542,330Covered outdoor area (including amenities) 552,840Main buildings 2,816,105External works (car park, landscaping, etc.) 1,849,650

Subtotal 11,916,085Contractors preliminaries and overheads 1,300,000Design and management costs 1,200,000Statutory authority and sundry costs 300,000

Subtotal 2,800,000Project contingency (approx 10%) 1,470,000Extra over for rock excavation 237,000

TOTAL 16,423,085

STAGE 2Item Cost ($)50m outdoor pool 4,784,810Health and fitness centre (gym) 1,285,020External works (courtyards, landscaping, car park) 521,630

Subtotal 6,591,460Contractors preliminaries and overheads 650,000Design and management costs 530,000Staturoty authority and sundry costs 180,000

Subtotal 1,360,000Project contingency (approx 10%) 795,000Extra over for rock excavation 50,000

TOTAL 8,796,460

Stage 1 16,423,085Stage 2 8,796,460Total $25,219,545 STAGING PLAN

20120114 BUNDABERG REGIONAL COUNCIL | Bundaberg Regional Aquatic Facility - Feasibility Investigation

28 NOVEMBER 2013 I P2

STAGING LEGEND

STAGE 1.

- 43 Car Parks- 6 Bus Parks- 8 Disabled Parks- Lagoon Pool with Beach Entry- Family Play ‘Mushroom Towers’ (allow for future water cannons x 4)- Covered Children’s Play Area- Amenities +Change Rooms- PWD Amenities + Change Rooms- Lockers- Staff Room + Amenities- Community Meeting Rooms (approx. 85m2 total)- First Aid Room - Administration- Merchandise Shop- Reception- Main Entry Foyer- Child Care + Secure Outdoor Area- Cafe + Service Yard- Covered Outdoor Area- Outdoor Showers- Outdoor Cinema Screen- Raised Lounge Podium- Rock Climbing Wall- BBQ Shelters- Lawn Area- Soft Fall Surrounds- Plant Room- Dry Store- Stores- Service Road / Access- Drop Off Zone- Por te Cochere Entry- Pylon Sign- Water Tanks

STAGE 2.

- 113 Additional Car Parks (156 Total)- 50 x 25m Competition Pool (PWD Ramp)- Spectator Stand (approx. 400 seats)- Hydro Therapy Pool (5m x 4m)- Health + Fitness Centre (approx. 300m2)- Exercise Cour tyard- Wellness Centre (approx. 80m2)- Wellness Cour tyard- Stores

A full A3 version of the concept design is attached in Appendix 3

Staging legendStage 1

− 43 car parks − 46 bus parks − 8 disabled parks − Lagoon pool with

beach entry − Indoor learn to swim

and 25m program pool

− Family play ‘mushroom towers’ (allow for future water cannons x 4)

− Covered children’s play area

− Amenities and change rooms

− Lockers − Staff room and

amenities − Community meeting

rooms (approx 85m2

total) − First aid room − Administration − Merchandise shop − Reception − Main entry foyer − Child care and

secure outdoor area − Cafe and service yard − Covered outdoor area − Outdoor showers − Outdoor cinema

screen − Raised lounge

podium − Rock climbing wall − BBQ shelters − Lawn area − Soft fall surrounds − Plant room − Dry store − Stores − Service road/access − Drop off zone − Porte cochere entry − Pylon sign − Water tanks

Stage 2 − 52 Addition car parks

(95 total) − 50 x 25m

competition pool (PWD ramp)

− Spectator stand (approx 400 seats)

− Hydro therapy pool (5 x 4m)

− Health and fitness centre (approx 300m2)

− Wellness courtyard − Stores − 61 Additional car

parks (156 total)


Operational revenue and expensesAll projected revenues and expenses have been developed through the investigation of similar facilities both managed (either directly, or through lease/management arrangements) by local governments within Queensland1. These figures have also been cross-referenced with 2011 CERM Performance Indicators® (University of South Australia). The CERM Performance Indicators (PI) currently provides reviews for over 200 sports and leisure facilities in Australia and New Zealand and its annual operational management survey has been the basis for the development of robust operational benchmarks for sports and leisure facilities for over twenty years.

In general, conservative revenues have been applied to reflect the Centre’s initial year of operation. It would not be unreasonable to expect significant growth over the first five years of operation, with increases of up to 20% expected for the first two years, followed by a tapering off to 10% over the following three years. Projected revenues for the first five years of operation for Stages 1 & 2 are provided on the following page. It should be noted that expenses will also increase (but only at approximately 40-50% of the revenue increase rate), mainly in the area of employee costs.

As mentioned in the Management Structures section of this report, any management/lease fees to be negotiated will depend on the revenues and expenditures of the proposed Centre. Subsequently, the provided operational revenues and expenditures have been developed to reflect the true operating cost of the Centre, regardless of the adopted management structure and its associated fees. Further an indicative projection of the gymnasium’s operational revenues and expenditures has been included for consideration at that time.

1 Projections have been based on information provided by others in good faith with some information provided ‘çommercial in confidence’

Stage 1:RevenueFees and charges (mainly admission fees) $280,000Sale of materials, food and beverage $120,000Other (mainly learn to swim and exercise classes) $250,000Miscellaneous $5,000Total $655,000ExpensesEmployee costs (including casuals) $360,000Maintenance/capital replacement $250,000Materials (mainly chemicals, food and beverage supplies)

$80,000

Services (mainly electricity, water charges, general consultancies)

$150,000

Miscellaneous $3,000Total $843,000

Stages 1 & 2:RevenueFees and charges (mainly general admission fees) $360,000Sale of materials, food and beverage $160,000Other (mainly learn to swim and exercise classes) $320,000Gym Membership fees $180,000Exercise classes $30,000Office leases $20,000Sale of materials (gym) $5,000Casual visits (gym) $25,000Miscellaneous hire $20,000Total $1,120,000ExpensesEmployee costs (including casuals) $520,000Maintenance/capital replacement (inc minor contracts)

$400,000

Materials (mainly chemicals, food and beverage supplies)

$180,000


$260,000

Minor equipment and supplies $15,000Miscellaneous $8,000Total $1,383,000

NOTE: The above projections for Stages 1 and 2 of the proposed aquatic centre are based on Stage 2 being completed two years after Stage 1 and therefore illustrate the ‘complete’ Centre’s first year of operation. The operational deficit of the Centre will reduce due to increased revenues as projected on the following page.

Indicative initial general entry fees: � Adult (14 years+) $4.50 � Children (2 - 13 years) $3.50 � Pensioners/seniors $3.50


Stages 1 & 2 (projections based on operations 2 years after initial opening of Stage 1)Item Capital Cost

($)Projected Annual Revenue ($)

Year 1 Year 2 Year 3 Year 4 Year 5Heated Pools 3,300,000 300,000 360,000 432,000 475,200 522,720Lagoon Pool 2,500,000 264,000 316,800 380,160 418,176 459,99450m Pool 4,800,000 144,000 172,800 207,360 228,096 250,906Health and Fitness Centre (Gym) 1,300,000 288,000 345,600 414,720 456,192 501,811

SummaryThe expected time period for the projected revenues of above components of the aquatic centre to exceed the initial capital costs for their development are shown below. It should be noted that revenues for the Lagoon and 50m outdoor pools have been estimated based on a percentage of general entry/hire fees (and expected secondary spend) as there are no specific fees applicable to their use.

Heated pools and lagoon pool: � 7th year of operations.

Outdoor 50m pool: � approximately $2.5 million after the 10th year of operation. Based on approximately $300,000 revenue per annum, a further 7-8 years

until initial capital cost is recouped (total of 17-18 years).

Health and fitness centre: � 4th year of operations.

Projected revenuesAs stated on the previous page, the fully completed Centre (Stages 1 & 2) could expect significant growth over the first five years of operation, providing more appropriate returns for the significant capital investment involved with the Centre’s development.


Local government benchmarkingSimilar facilities within relevant local government areas have been researched in order to investigate capital costs of development, operating costs and funding opportunities.

The following is a summary of findings from those investigations.

Rockhampton Regional Council World War II Memorial Complex

Upgrades to this facility are currently underway and when complete, are anticipated to include:

� new FINA approved heated 10 lane 50m Pool (roofed, electronic timing, underwater camera systems)

� enclosed program/LTS pool � children’s water play park � fully equipped café � grandstand style seating � associated ancillary facilities.

Total cost: $17mFunding sources:

� RDAF: $5m � Council: $5m � State Government: $7m*

* previous funding commitment - not a grant.

Townsville City Council

Northern Beaches Leisure Centre

Currently under re-development, the project is a partnership between Townsville City Council, the State Government and Stockland.

The first stage of the upgrade is to include the 50m pool, toddler pool with water play features, junior leisure pool, kiosk and amenities and is expected to cost approximately $5.4million.

Over the coming years the facility will expand with more water play areas, water slides, an indoor community space and crèche.

Total cost: $5.4mFunding sources:Funds for this project were provided through a partnership of Council, Stockland (property group) and the State Government but the level of contribution of each is not available.

Kokoda Memorial Pool

The 2011 redevelopment of the facility included the refurbishment of the existing 50m pool into a purpose-built 25m program pool, free-form leisure pool and support facilities including plant rooms, cafe, amenities, first aid facility, reception and offices.

Constructed in three stages, the total cost of the project was approximately $6.2million.

Total cost: $6.2mFunding sources:Funding for the project was provided through a partnership between Council and the State Government. The breakdown of this funding however, is not available.


WetSide Water Education Park - Hervey BayLocated on the Hervey Bay Esplanade, Pialba, WetSide Water Education Park is a fun, free, eco-friendly public asset designed around water ‘infotainment’. WetSide was created by Water Bay Water Corporation for residents and tourists to learn about water and its sustainable use. The Park is also a popular destination for many Bundaberg residents.

A total of $4.95million was contributed by the State Government (Q150 funding - no longer available) towards this development, the total cost of which is unknown (commercial in confidence).

Main features � large childrens water play park with jets, slides, buckets of water � TotSide - smaller water area for younger children � FlipSide BoardRider ($5) � toilets and change rooms � kiosk � lockers (at a fee) � boardwalk � BBq and picnic facilities � educational resources about water and its sustainable use.

Operating Expenses

Employee Costs $250,000

Maintenance/capital replacement $95,000Services (mainly electricity, water charges, general consultancies)

$365,000

Kiosk leasing from DNRS $15,000Total $725,000

Gladstone Regional CouncilGladstone Aquatic Centre h

A recent upgrade to this existing centre was the inclusion of ‘Splash Zone’, a significant children’s water play park, the associated landscaping and improvements, and the required plant and filtration systems.

Total cost: $2.7mFunding source:

� Council: $2.7m


More detailed information was able to be sourced regarding two similar facilities to the Bundaberg Regional Aquatic Centre which have been reviewed to provide Council with the indicative costs associated with operating aquatic centres under two different management models:1. In-house - Logan City Council2. Out-sourced - Sunshine Coast Regional CouncilIt should be noted that depreciation expenses have not been included in the cost summaries, as this is an item that Council will need to budget for, regardless of the management model to be adopted.

Logan City Council (in-house)Approximately four years ago, Logan City Council adopted the in house management model where five aquatic centres, including a health and fitness centre at one of the centres, are managed and operated by Council staff under the umbrella of one program (‘aqua logan’). Two aquatic centres are still managed externally, due to existing management contracts being in place.

The facility managed by Logan City Council most similar to the Bundaberg Regional Aquatic Centre is the Springwood Aquatic Centre. This centre was previously managed through a commercial contract until 2009. The information below provides a snapshot of the centre.

Main features � Indoor heated 25m pool � Outdoor heated 50m Olympic pool � Outdoor 23m fitness pool (separated from main pool by

bulkhead) � Fully shaded family leisure/lagoon pool � Refurbished fully equipped gym/health club

Services and activities � Learn to Swim classes � Competitive Squad training � SwimFit training � Masters training � Child-minding � Swim Club

Fees � Adult (15 years+) $5.00 � Children (2 - 14 years) $4.00 � Family day pass (2 adults, 2 children) $16.20 � Pensioners (with concession card) $4.00 � Carers of disabled persons No fee � Pool pass - Adult (25 visits) $108.00 � Pool pass - Children/Concession (25 visits) $91.00 � Pool hire (including admission fee) $339/hr � Lane hire (including admission fee) $54.75/hr

The details of the management arrangement with the previous management company is unknown (commercial in confidence), however, the current approximate operating revenues and expenses under Council management is summarised in the following tables. It should be noted that the Springwood facility contains a significant gymnasium, greatly increasing the Centre’s revenues.

Operating revenue

Fees and charges (mainly admission fees) $270,000Sale of materials, food and beverage $95,000Other (mainly gym membership, learn to swim and exercise classes)

$450,000

Miscellaneous $5,000Total $820,000

Operating expenses

Employee costs $720,000

Maintenance/capital replacement $300,000Materials (mainly chemicals, food and beverage purchases)

$90,000


$295,000

Miscellaneous $3,000Total $1,408,000

Consequently, the total operating deficit of this Council-managed aquatic centre is approximately $588,000 per annum. It should be reiterated that these figures include significant revenue received from the gymnasium and associated membership and classes fees.


Sunshine Coast Council (out-sourced)Of the ten aquatic facilities on Council land within the Sunshine Coast Region, eight are under management arrangements/leases with private operators.

Of the eight facilities under private management, four have similar facilities to the proposed Bundaberg Regional Aquatic Centre (with the exception of the lagoon pool). They are the:

� Caloundra Aquatic Centre � Cotton Tree Aquatic Centre � Kawana Aquatic Centre � Nambour Aquatic Centre.

These Centres all contain outdoor heated 50m pools, either indoor or covered and heated 25m pools and indoor heated program pools.

Although not under direct Council management, Council has ensured that entry fees and pass prices are consistent across all aquatic centres. The main pricing categories are summarised as follows.

FeesGeneral entry:

� Adult $4.90 � Child (16 and under)/Concession $4.10 � Family* $15.40

10 Visit Passes: � Adult $44.60 � Child/concession $35.60 � Family* $128.00

Monthly Passes: � Adult $57.40 � Child/concession $46.00 � Family* $165.50

Annual Passes: � Adult $450.00 � Child/concession $360.00 � Family* $1,297.00

* A Family consists of only members listed on the Medicare Card.

Management feesThe costs associated with the management arrangements/leases of these four Centres have been reviewed to provide Bundaberg Regional Council with an indication of expected costs associated with an out-sourced management model.

Council’s operating deficit (annual costs) associated with the four Centres range between approximately $240,000 and $420,000.

Subsequently, the average annual expense to Council in providing an aquatic centre under this management model is approximately $320,000.

It should be noted that these figures do not include depreciation expenses so that a direct comparison of the two management structures.


Funding options & opportunitiesNational Stronger Regions FundEffectively, the new Federal Government’s replacement of the current Regional Development Australia Fund (RDAF), the National Stronger Regions Fund will be aimed at supporting regional areas of Australia.

Although details are yet to finalised, it has been announced that the Fund will provide $200 million a year over five years, to commence in 2015, and the funds will be used for social and economic infrastructure in regions with high unemployment. Each project will require a 50 per cent matching contribution from the local or state government.

With the level of proposed funding ($1 billion over five years) to distribute (albeit across Australia), this could be an important source of funding for the proposed Centre.

It is anticipated that application assessments would be similar as for other similar Funds and may include include an assessment of outcomes, the project’s viability and the organisation’s ability to manage the project during delivery and after completion.

Royalties for the Regions (mining)While the resources sector (mining) is one of the key pillars of Queensland’s economy, communities across regional Queensland are significantly impacted by resources growth, and as such, the Queensland Government is supporting regional Queensland through the Royalties for the Regions program. The program started in 2012, and the program will invest $495 million over four years and $200 million each year beyond that to help regional communities meet critical infrastructure needs and deliver new and improved community infrastructure, roads, and flood mitigation projects.

The program is designed to ensure that regional communities receive real, long-term royalty benefits through investment in infrastructure. The program is helping communities better manage the impacts of resources sector development and ensure they remain liveable and sustainable well into the future.

In 2013-14, $95 million is available under Royalties for the Regions Round 2 for key community infrastructure, roads and flood mitigation projects in regional Queensland (although a number of roads pre-commitments will be funded under this round).

Although applications for this round have closed, the details of Round 2 provide an indication of the type and level that may be available through this fund when the proposed Centre is ready to proceed.

All regional councils outside of South East Queensland were able to participate in Round 2 of the Royalties for the Regions program.

It is understood that Round 3 of this funding will include community infrastructure such as aquatic centres, as opposed to the current focus of basic infrastructure such as roads, sewer, etc. Funding amounts of between $500,000 and $10m can be realistically expected to be available.

Sport and Recreation Services (Department of National Parks, Recreation, Sport and Racing)While not a significant source of capital funding under the current programs (currently, the Department’s focus for facility funding is the ‘Get Playing’ program, which has a maximum of $100,000 available for facility development), there may well be a review of funding programs following the next State Election. Departmental staff have identified the need for major funding contributions to facility development to once again become a core role of the Department.

Commercial investmentA facility as significant as that proposed lends itself greatly to the possibility of investment from the private sector. Townsville City Council was successful in obtaining such funding for its aquatic facility, as mentioned in the Local Government Benchmarking section of this report.

To attract such an investment, Council will need to reflect the opportunities for such private involvement to see a return on their investment, be it direct financial, long term tenure reflective of the level of contribution, publicity and promotion (such as naming rights), or otherwise.

Ad hoc opportunitiesThere may be various forms of funding available to Bundaberg Regional Council that cover areas such as disaster recovery and the rebuilding of affected communities. Although these may not form part of established funding programs, previous election commitments and discussions may enable Council to source funding based on recent unfortunate events experienced in the region.

Council will need to promote the range of community benefits provided by such facilities as the Regional Aquatic Centre to a disaster-stricken community.

It is therefore believed that Bundaberg’s Elected Members utilise this report as a basis for discussions with the administrators/Ministers responsible for any such funding opportunities.


Appendix 1Assessment matrix (Stage 1)


Appendix 2Geo-technical report


Appendix 3Concept plans and aerial perspectives - master plan - aerial perspectives - elevations - staging


Appendix 4Preliminary order of cost estimate

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