SERPENTINE JARRAHDALE SPORTS & COMMUNITY GROUP … · SERPENTINE JARRAHDALE SPORTS & COMMUNITY GROUP Inc . Preliminary Feasibility Study for . Proposed Community Sports & Recreational

SERPENTINE JARRAHDALE SPORTS & COMMUNITY GROUP Inc

Preliminary Feasibility Study for

Proposed Community Sports & Recreational precinct

Issued: Prepared September 2011

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Prepared By Quattro Project Engineering 130 Fauntleroy Avenue Redcliffe WA 6104

Table of Contents

Executive Summary ....................................................................................................................................................... 4

1.0 Background and Methodology .......................................................................................................................... 6

1.1 Review of Background Information ............................................................................................................... 6

1.2 Methodology ............................................................................................................................................... 10

2.0 Organisational Philosophy .............................................................................................................................. 12

2.1 Values and Aims ......................................................................................................................................... 12

2.2 Desired Outcomes ...................................................................................................................................... 12

3.0 Market Analysis ............................................................................................................................................... 13

3.1 Socio-demographic Data ............................................................................................................................ 13

3.2 Competition Analysis .................................................................................................................................. 14

3.3 Community Consultation ............................................................................................................................. 15

4.0 Justification of the Proposed Facility ............................................................................................................... 16

5.0 Draft Management Plan .................................................................................................................................. 19

5.1 Management Structure ............................................................................................................................... 19

5.2 Usage estimates ......................................................................................................................................... 20

5.3 Staffing ....................................................................................................................................................... 22

5.4 Marketing Strategy ...................................................................................................................................... 23

6.0 Concept design ............................................................................................................................................... 25

6.1 Core Elements ............................................................................................................................................ 25

7.0 Location Rationale .......................................................................................................................................... 27

7.1 Joint Use and Co-Location ......................................................................................................................... 27

7.2 Environmental ............................................................................................................................................. 28

7.3 Statutory Planning and Regulations ............................................................................................................ 28

7.4 Cultural and Heritage .................................................................................................................................. 29

7.5 Accessibility ................................................................................................................................................ 29

7.6 Transport .................................................................................................................................................... 29

8.0 Design/Technical Evaluation ........................................................................................................................... 30

8.1 Technical Design Options ........................................................................................................................... 30

9.0 Capital costs ................................................................................................................................................... 31

9.1 Capital Cost Estimate ................................................................................................................................. 31

9.2 Estimate Clarifications ................................................................................................................................ 31

9.3 Sources of Capital Funds ........................................................................................................................... 32

9.4 Capital Cash Flow ...................................................................................................................................... 32

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9.5 Life Cycle Analysis ...................................................................................................................................... 33

10.0 Financials ........................................................................................................................................................ 34

10.1 Financial Forecasts ..................................................................................................................................... 34

10.2 Cashflow Analysis ...................................................................................................................................... 34

10.3 Profit and Loss ............................................................................................................................................ 39

10.4 Breakeven Analysis .................................................................................................................................... 39

10.5 Sensitivity Analysis ..................................................................................................................................... 40

11.0 Staging Alternatives ........................................................................................................................................ 41

11.1 Staging Options .......................................................................................................................................... 41

12.0 Sustainability ................................................................................................................................................... 42

12.1 Economic Forecast ..................................................................................................................................... 42

12.2 Environmental ............................................................................................................................................. 42

12.3 Social/Cultural Impact ................................................................................................................................. 42

13.0 Recommendations .......................................................................................................................................... 43

13.1 Option Selection ......................................................................................................................................... 43

13.2 Recommendations ...................................................................................................................................... 43

APPENDIX A-Order of Magnitude Costs ..................................................................................................................... 44

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Serpentine Jarrahdale Community & Sports Group Inc Feasibility for Proposed

Community Sport & Recreation Precinct


Executive Summary

The Serpentine Jarrahdale Community & Sports Group Inc (SJCPG) independently commissioned

Quattro Project Engineering Pty Ltd (QPE) to prepare a Preliminary Feasibility Study. The aim of the

study was to demonstrate the requirement for a community recreational precinct in the Serpentine

Jarrahdale Shire.

The SJCPG has representation from the majority of sporting groups present in the Serpentine Jarrahdale

Shire. The reason for the formation of the group was due to the rapid growth in the Shire, the current

sporting facilities available are deemed not adequate enough in providing for the growth in the existing

clubs or allowing for the commencement of new clubs that represent sports not currently played in this

Shire.

Overview

The proposed development is for a new, central facility that has the capacity and facility to host numerous

sporting and community clubs under the management of the Serpentine Jarrahdale Community & Sports

Inc Committee. A two (2) phased construction whereby an immediate requirement – Phase 1 - is satisfied

through the construction of ovals, grandstands (inc change rooms) and a main building housing indoor

courts, bar, function area, commercial kitchen, canteen and gym.

Phase 2 would involve the building of an indoor swimming pool facility with a 25m, 8 lane pool,

hydrotherapy pool, leisure play pool, spas and saunas. This facility would be used for swimming lessons,

fitness and rehabilitation purposes (JV with State Swim should be considered)

Major Findings

A summary of the major findings of the study are as follows:

The latest population figures available, forecasts an average annual growth rate of 5% for the

Serpentine Jarrahdale Shire over the next twenty years. This has been backed up by the growth

rate from 2006 of 13,353 to 2011 of 19,825.

Existing Facilities - An assessment of the facilities currently available within the study area has

highlighted that the majority of facilities are ‘old’ facilities and stand alone, that is independent and

isolated one from the other. Whilst this in itself is not an issue, the suitability of these facilities to

cater for the current community needs is of some concern. Therefore, it is necessary to consider

the potential to relocate and redevelop facilities that are multi used and shared to provide for

better use of resources whilst providing facilities of a higher quality than current.

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Phase 1 – The order of magnitude cost estimate prepared for this study equated to $26 million,

this figure included the costs of three ovals with one grandstand capable of seating 500 (includes

changing rooms), a bowling green with eight lanes including lighting, six multipurpose hard courts

and six Netball only courts, 3,000m² recreation centre (including bar/café, meeting rooms etc),

picnic areas & public open spaces for families, we have currently included 15% contingency until

the final brief has been agreed.

Phase 2 - The order of magnitude cost estimate prepared for this study equated to $5 million this

figure included the costs of eight lane 25m pool, hydrotherapy pool, splash pool, changing areas,

break out area, car parking etc we have currently included 15% contingency until the final brief

has been agreed.

Serpentine Jarrahdale Community & Sports Inc ultimate goal is to work with the Serpentine Jarrahdale

Shire and build a facility that would provide for the entire communities sporting and recreational needs,

now and into the future.

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1.0 Background and Methodology

1.1 Review of Background Information

Serpentine Jarrahdale Shire is a predominantly rural Local Government Area, with the largest townships

at Byford and Mundijong about 35 and 45 kilometres south of Perth respectively. The eastern areas of the

Shire are dominated by conservation, timber and water catchment uses, with major water storages for

Perth such as the Wungong Reservoir (part) and the Serpentine Dam located in the Shire. The central

spine of Serpentine Jarrahdale Shire features many of the urban centres and the main transport corridor.

Towns such as Byford, Mundijong and Serpentine and linked by the South Western Highway and the

Bunbury Railway. The western end of the Shire remains predominantly rural, with a relatively small

population. However, the outward growth of Metropolitan Perth towards the Shire in recent years has

already and will continue to change these land use dynamics, with extra pressure for urban and rural

residential expansion at the northern end of the Shire.

The Shire currently features a relatively small residential population, with the majority of residents located

in the towns of Byford, Mundijong, Serpentine and Jarrahdale, as well as in rural residential areas in

Oakford and Darling Downs. The rural residential areas around Byford, Oakford and Darling Downs

feature a large share of equine properties, with significant training facilities. The economic base of

Serpentine Jarrahdale Shire is still strongly oriented towards primary industries, although a large share

(approximated at more than half) of residents work outside the Shire. Other important industries include

construction (driven by housing growth in the region) and other services, such as retail trade, education

and health.

The population of Serpentine Jarrahdale has been relatively small until recent decades, with the

expansion of Perth southward. The population of the Shire was just over 5,000 in 1981, growing to more

than 8,000 by 1991 and up to 11,700 by 2001. Most of this growth was driven by small rural residential

development and incremental developments at the fringe of the population centres. In the past three

years, residential development has increased dramatically, with a much larger share of 'conventional'

fringe residential development. As development rates in the City of Gosnells slow, more residential

development is likely to spill into Serpentine Jarrahdale Shire (as well as the City of Armadale).

To work from an informed position a detailed review of a range of planning documents has been

conducted. This review has provided a framework onto which the process of analysis and ultimately the

formulation of recommendations can be tied.

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The review has considered the following documents:

• SD5 Strategic Directions for Western Australian Sport and Recreation 2011-2015

• The Future of Sport in Australia, Crawford Report, 2009

• Building Australian Communities Through Sport

• Mundijong/Whitby District Structure Plan 2011 (The recent approval of the Mundijong Whitby

District Structure Plan by the WA Planning Commission (WAPC) will result in the Mundijong area

becoming home to an estimated 40,000 more people over the next 30 years).

• Serpentine Jarrahdale Shire “Community Facilities and Services Plan 2020”

SD5 Strategic Directions For Western Australian Sport And Recreation 2011-2015

Strategic Directions 2011-2010 (SD5) is a guiding framework for the next few years. The challenges and

opportunities set out in the document reflect the comments and advice provided by a wide range of

industry stakeholders and build upon the previous Strategic Directions 4 documents.

SD5 Intent

SD5 has been developed to:

• Provide vision and direction for WA’s sport and recreation industry

• Increase stakeholder understanding of emerging issues.

• Guide strategic planning processes for organizations

• Better inform governments of stakeholders aspirations.

SD5 Principles

The SD5 framework operates on the following principles:

• Innovation

• Inclusivity

• accessibility and affordability excellence

• cooperative partnerships and relationships state-wide service delivery

• sustainability.

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The Future Of Sport In Australia, Crawford Report, 2009

The Rudd Government appointed an independent expert panel to make recommendations on the specific

structures, programs and reform required to ensure the continuing robustness of the Australian Sports

System.

Recommendations are directed towards the following Terms of Reference:

1. Ensure Australia’s continued elite sporting success.

2. Better place sport and physical activity as a key component of the Government’s preventative

health approach.

3. Strengthen pathways from junior sport to grassroots community sport right through to elite and

professional sport

4. Maintain Australia’s cutting edge approach to sports science, research and technology.

5. Identify opportunities to increase and diversify the funding base for sport through corporate

sponsorship, media and any recommended reforms, such as enhancing the effectiveness of the

Australian Sports Foundation

Of direct importance to Local Government is the Chapter 1.6 Building Community Sport with People and

Places which contains the following recommendations:

“6.1 The Australian Government should develop and fund a national volunteer program for

sporting and physical activity organisations that aims to attract and retain volunteers to sport

through education, accreditation and recognition and in particular takes account of the potential

offered by the growing number of older Australians to become volunteers.

6.2 The Australian Government should establish and fund a national scheme that encourages

past high-performance scholarship holders (Australian Institute of Sport and state and territory

institutes and academies of sport) to volunteer within community sport organisations as coaches,

managers, administrators and mentors.

6.3 The Australian Government, in consultation with the state and territory governments, should

develop a strategic national facilities initiative for the funding and development of Australia’s

community sport and recreation facilities over the next decade.

6.4 The Australian Government should establish a national sport facilities fund with an initial

allocation of $250 million each year for four years, to begin the implementation of the strategic

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national facilities initiative in partnership with state, territory and local government and the private

sector, where appropriate.

6.5 The national sport facilities fund should have an initial focus on drought-proofing assets that

are determined to be of ‘high-priority’.

6.6 In any infrastructure programs, preference should be given to projects that have the potential

to engage wide sections of the community, such as multi-sport facilities in proximity to other

community infrastructure, to help with sustainability and to increase social capital.�

The potential development of a national sports facilities fund would provide an additional avenue for fund

generations particularly for multi sport facilities and monitoring of the progress needs to be ongoing.

Building Australian Communities Through Sport

In November 2004 the Government unveiled its current sports policy. Building Australian Communities

through Sport.

The four priority areas of this policy were:

• community participation, including community sport for all, Active After-School Communities,

Physical activity in our schools, community facilities, water safety and women in sport;

• securing Australia’s sporting future through high performance success, direct athlete support, a

national Paralympic partnership, excellence in sports management and a strong anti-doping

regime;

• sport infrastructure and support in areas such as major multi-sport competitions and through

existing sports agencies; and

• development of the sport and leisure industry.

Serpentine Jarrahdale Shire “Community Facilities and Services Plan 2020”

The Community Facilities and Services Plan to 2020 (CFSP 2020) has been prepared to help the Shire

achieve the objective in partnership with the local community, local businesses, land developers, the not

for-profit sector and other government agencies. Its purpose is to act as a framework for the way the

Shire collaboratively plans for the facility and services needs of its community to 2020. While the plan has

been informed by local, national and international trends and practices, it is also breaking new ground in

collaboration with Western Australian partners in terms of creating a new, more robust model for funding

a broad range of community facilities and services. The plan has been developed based on intensive

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consultation process, in-depth demographic analysis, a detailed cost schedule and a comprehensive

financial model.

1.2 Methodology

Stage 1 - In planning a sport or recreational facility, the first step is to undertake a needs assessment to

justify its provision this pre-feasibility will demonstrate the need for a recreational facility and will give a

broad overview of the order of magnitude costs.

To demonstrate the need there was consultation with all the local sporting groups represented by the

Serpentine Jarrahdale Community & Sports Group and feedback from the local schools.

The Serpentine Jarrahdale Shire Community Facilities and Services Plan 2020 identify the need for

numerous recreational facilities throughout the Shire to meet the forecasted growth.

Stage 2 – Apply for funding for the commissioning of a full feasibility study including a Concept Design on

the preferred layout/scheme and the preferred location, a Concept Cost Report, including all early works,

infrastructure upgrades etc etc.

Stage 3 – Once the Full Feasibility is complete and the costs have been confirmed then we apply for

funding through Royalties for Region, Lottery etc.

For the Royalties for Regions funding applicants must consult with the relevant RDC(s) (RDC being

Regional Development Commission - there are nine commissions and the relevant one we need to speak

to is the PEEL Development Commission), prior to submission to be eligible for funding. Applicants that

do not consult with the relevant RDC(s) will be considered ineligible.

All applications must meet the set funding criteria and associated application processes. Applicants will

need to demonstrate that projects are ready to proceed within a maximum of six months of funding

approval.

All applications must be supported with a comprehensive business case on the entire project and not just

the Royalties for Regions component. It would be expected that the business case would include planning

and management documents such as: industry and/or regional planning documents; feasibility,

environmental impact studies; marketing, business plans; licence approvals; Gantt chart(s); asset,

financial management plans; and other supporting documents.

Design - Management Plan; Design Brief; Design Team; Schematic Design; Design Development;

Contract Documentation.

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• Design & Construct Phase One - 3 x full size AFL Ovals with grandstand; Cricket pitch and nets;

Bowling Greens; Tennis Courts; Netball/Basketball Courts; Gymnasium/training facilities; Picnic

Areas & Public Open Spaces for families; Licensed bar/cafe/function rooms; and Meeting rooms.

• Design & Construct Phase Two - Swimming pool facility with 25m 8 lane pool, hydrotherapy pool,

leisure play pool, spas and saunas.

Construction - Construction and Handover

Evaluation - Facility Operational and Project Evaluation.

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2.0 Organisational Philosophy

2.1 Values and Aims

The Serpentine Jarrahdale Community & Sports Group Inc vision is to provide a relevant and sustainable

sport and recreation facility that will add value to the Serpentine Jarrahdale communilty.

Key aims

• to maximise participation in physical activity and sport by all age groups in the community and to

be a customer focused facility that aims to maximise opportunities and minimise barriers to

physical activity and sport

• to deliver a wide range of activity and sport opportunities to suit the needs of the community while

optimising the use and programming of facilities to accommodate these wide range of activities

• to integrate the sports and recreational facility with relevant internal and external groups and

agencies to best promote the sports and recreational facility and community aligned objectives

• to be a facility committed to continuous improvement and achieving best value from resources to

ensure that income generating activities add value to the facilities reputation and are both

effective and efficient

Values - Serpentine Jarrahdale Community & Sports Group Inc will achieve their Aim by constant

reference to the following values:

• Creativity - Within our organisation and community we will foster originality, creativity and new

ideas.

• Respect - We will treat everyone with respect, recognizing and valuing all viewpoints.

• Integrity - We will work in an open and transparent way, ensuring our processes, decisions and

actions are ethical, responsible and honest

• Equity - We recognise that there is diversity in the community and will strive to work and direct

our resources and services in ways that will result in fair and equitable outcomes for all.

2.2 Desired Outcomes

Serpentine Jarrahdale Community & Sports Group Inc will ensure there is a balanced and diverse

programme of physical activity and sport activities available.

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3.0 Market Analysis

3.1 Socio-demographic Data

When assessing the community needs of a particular area, it is necessary to gain some understanding of

the demographic profile of the study area. In 2031, the population of Serpentine Jarrahdale Shire is

forecasted to be 51,094, an increase of 37,741 persons (282.64%) from 2006. This represents an

average annual growth rate of 5.51%.

Serpentine Jarrahdale Shire Change between 2006 and 2031

Area name 2006 2011 2016 2021 2026 2031 Number Avg. annual %

change

Mundijong (East)-Whitby

321 350 763 1,231 1,802 2,517 2,196 8.59

Byford (South-West)

360 1,096 3,683 6,736 9,555 12,313 11,953 15.18

Byford (North-West)

734 3,903 6,907 8,708 9,674 10,419 9,685 11.19

Mundijong (West) 981 1,009 1,198 1,576 2,217 3,031 2,050 4.62

Darling Downs 1,021 1,180 1,381 1,579 1,739 1,830 809 2.36

Jarrahdale-Karrakup

1,174 1,275 1,377 1,486 1,581 1,630 456 1.32

Cardup-Oldbury-Mardella

1,531 1,911 2,190 2,470 2,714 2,975 1,444 2.69

Oakford 2,206 2,629 2,930 3,586 4,495 5,616 3,410 3.81

Byford (East) 2,341 3,407 4,442 5,093 5,775 6,359 4,018 4.08

Serpentine-Keysbrook-Hopeland

2,684 3,065 3,254 3,565 3,928 4,404 1,720 2.00

Serpentine-Jarrahdale Shire

13,353 19,825 28,125 36,030 43,480 51,094 37,741 5.51

In 2006, the most populous age group in Serpentine-Jarrahdale Shire was 40-44 year olds, with 1,218

persons. In 2021 the most populous forecast age group will be 10-14 year olds, with 3,291 persons.

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The number of people aged under 15 is forecast to increase by 5,989 (194.9%), representing a rise in the

proportion of the population to 25.2%. The number of people aged over 65 is expected to increase by

2,917 (255.0%), and represent 11.3% of the population by 2021.

3.2 Competition Analysis

A competitive analysis is a critical part of the future marketing plan. With this evaluation, we can establish

what makes our product or service unique, and therefore what attributes to play up in order to attract our

target market. Normally for each competitor or strategic group, we would list their product or service, its

profitability, growth pattern, marketing objectives and assumptions, current and past strategies,

organizational and cost structure, strengths and weaknesses, and size (in sales) of the competitor's

business.

The Serpentine Jarrahdale Community Recreation Centre is a multi-purpose sports facility consisting of a

fully equipped health club, group fitness studio, two sports courts, extreme sports area, crèche and 300

seat function room. The centre is owned by the Shire of Serpentine Jarrahdale and professionally

managed by the YMCA.

It is understood by all the current stakeholders that there is no market competitors in the Serpentine

Jarrahdale Shire which offers a fully comprehensive indoor and outdoor facility which would compare to

the proposed development.

The below table is a summary of the current facilities in the Shire.

Facility Location Capacity Byford Hall South West Highway, Byford 150 Briggs Park Pavilion Mead Street, Byford 234 Oakford Community Centre 57 Foxton Drive, Oakford 60 Mundijong Pavilion & Oval Cockram Street, Mundijong 150 Clem Kentish Hall & Oval Wellard Street, Serpentine 300 Bruno Gianatti Hall Cnr Munro & Jarrahdale Roads, Jarrahdale 278 Jarrahdale Oval Cnr Millars & Nettleton Roads, Jarrahdale – Mundijong Netball and Basketball Courts

Cockram Street, Mundijong –

Serpentine Polocrosse Reserve Karnup Road, Serpentine – Eric Senior Pavilion Karnup Road, Serpentine – Jarrahdale Tennis Pavilion Munro Street, Jarrahdale 20

The existing individual sporting clubs are all committed and fully supportive of the proposed shared

facility.

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3.3 Community Consultation

Serpentine Jarrahdale Community Recreation & Sports Group Inc is a not for profit group established to

represent the combined interests of the community and sporting associations within Serpentine

Jarrahdale Shire.

The Group represents a large percentage of the community and the majority of all sporting clubs in the

Shire.

The local schools were also consulted with regards the current facilities available to them, some of the

comments received were the current facilities are undersized and inadequate, resulting in the requirement

to travel outside the shire, particularly for finals.

The schools also highlighted their special needs children have to travel to Kwinana once per week for

swimming, with all the other children having to travel to Armadale Aquatic and Kwinana, these facilities

are becoming increasingly difficult to get into.

In addition the Byford Senior High School which is expected to open 2014 (with approximately 400

students) will only be commencing the construction in phases, which results in limited sporting facilities

until 2016, wherein the football oval and tennis courts will be commissioned, the other sporting facilities

will not be online until 2018 to 2020, wherein the school capacity is anticipated to be 1,500 students.

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4.0 Justification of the Proposed Facility The justification of the proposed facility is identifiable due to the lack of adequate facilities for a number of

sports in the shire (see below existing facilities) and the forecasted increase in population.

The vision is to build a central community facility that will accommodate all sporting needs and provide

valuable spaces for community members to meet in a friendly and welcoming environment.

• 3 x full size AFL Ovals with grandstand on Oval 1

• Cricket pitch and nets (can be incorporated on Oval 2)

• Swimming Pool/Hydrotherapy Pool/Splash Pool (Stage 2)

• Bowling Greens

• Tennis Courts

• Netball/Basketball Courts

• Gymnasium/training facilities

• Picnic Areas & Public Open Spaces for families

• Licensed bar/cafe/function rooms

• Meeting rooms

The proposed multi-purpose community and recreation precinct is about meeting the needs of the

community. The facility will be designed for and with the people of the Serpentine Jarrahdale Shire. It will

facilitate community interaction and be a community hub. The precinct and facilities will be an asset that

the Serpentine Jarrahdale Shire can be proud.

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Existing Facilities:

Quattro Project Engineering, as part of our diligence in compiling this report, undertook site visits to

numerous existing facilities throughout the shire. A brief description of each is included below:

Byford Hall:

The Byford Hall is a community centre with a capacity to host

functions for a maximum of 150 people. The facility is of

modern construction and is easily accessible.

Briggs Park Pavilion

Of the facilities visited, Briggs Park offered the most comprehensive

“mixed use” solution. The facility incorporated a modern clubhouse

facility that can cater for 234, AFL/Cricket oval, bmx track, skate

ramp, cricket nets and secondary clubhouse facilities. The facility is

away from the main highway.

Mundijong Pavilion & Oval

The facility combines a large AFL oval, pavilion and

clubhouse to cater for 150 people. The Mundigong Netball

and Basketball courts are located adjacent to the facility.

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Clem Kentish Hall & Oval

The Clem Kentish Hall & Oval is located within the town of

Serpentine. It is across the road from the local school, has

adequate parking and can cater for up to 300 people. The

facility includes an AFL oval, bmx track and tennis courts.

Bruno Gianatti Hall

The Bruno Gianatti Hall is adjacent to the local primary school

and across the road from what was formerly the Jarrrahdale

Tennis Club. The facility can cater for 278 people.

The above facilities varied in size, diversity and age and whilst some, such as those at Briggs Park

offered a range of different facilities, there did not appear to be a location that could cater for the

proposed requirements.

The sporting and recreation facilities within the Shire all operate in isolation with duplication of facilities.

The majority of facilities are showing signs of wear and tear and some require substantial maintenance.

It is noted that the majority of facilities are ‘older’ facilities and, whilst this in itself is not an issue, the

suitability of these facilities to cater for the current community needs is of some concern. For instance a

number of facilities are small and restrictive in their daily use due to their design and size.

The Shire has a thriving community who should be commended for their ongoing support and

maintenance of these facilities, and this self help has ensured that the existing facilities have been and

will continue to be used to their maximum potential.

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5.0 Draft Management Plan This chapter presents a preliminary management or business plan for the proposed development of

Serpentine Jarrahdale Sporting & Recreation Precinct. It addresses management structure, staffing,

marketing strategy, financial plan and implementation strategy.

5.1 Management Structure

When all facilities proposed to be constructed, are built, the facilities will be integrated with a single entry

and reception area. A discussion of management models and how they might apply to Serpentine

Jarrahdale Sporting & Recreation Precinct which is to be included in the Demand Analysis Report at the

next stage, which should note that the most appropriate management model for a multipurpose wet and

dry leisure centre in the Shire is one which the best elements of commercial and volunteer management

are combined in a synergetic and complimentary manner.

Consequently, the recommended approach would be as follows:

Retain separate contract management/lease arrangements for the Centre and Swimming

Complex

Synchronise the two management contracts/leases so that they have common commencement

and termination dates.

Standardise the terms and conditions of both management contracts/leases so they are

consistent. It will specify the rights and responsibilities of Council and the contractor in all aspects

of the operation of the facilities. Minor variations will be apparent in the attached Schedules to the

documents.

Advertise the two management contracts/leases simultaneously, and provide applicants with the

option of tendering for either one or both contracts. Assess all tenders on a “best value” basis to

the local Serpentine Jarrahdale Community.

Reassess the terms and conditions of both management contracts/leases when additional

facilities have been funded and are in the planning stage.

Integrate the management of wet and dry facilities when the facility is fully developed and

physically integrated.

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5.2 Usage estimates

A variety of techniques are used to assess use of the proposed facility, including:

Existing use of facilities

Proposed use projected by sporting associations

Expected use based on similar facilities in Western Australia

Population projections

Whilst these projections are based on best available information, they remain as estimates. Competent,

professional or volunteer management will be required to ensure that these estimates are met. The

following use estimates are projected actual use at September 2011.

• Byford Bowling Club - Current memberships stand at 100

• Centrals Football Club – Currently has 100 senior players spread over three grades

• Mundijong Centrals Junior Football Club – Currently has members of 384

• Cricket Club – Currently has 60 Seniors and 150 Juniors, not including partners, parents &

siblings.

• North Murray Diamond Sports – Currently has around 140 members

• Athletics – Membership is forecasted to reach 300

• Netball - Currently has members of 234

In order to make any usage estimates appropriate the base starting point of the population catchment

needs to be relevant to the possible development date. However, to keep on the conservative side the

population base used will be the 2011 population. Thus the base population used is 19,825.

Country Recreation Centres experience weekly attendances between 10% and 25% of the catchment population. Estimates based on three possible outcomes, (low series, median series, high series) result in the following totals;

Low series – 10% 19,825 x 10% = 1,982 per week (103,064 pa)

Median series – 15% 19,825 x 15% = 2,974 per week (154,648 pa)

High series – 20% 19,825 x 20% = 3,965 per week (206,180 pa)

Given the mix of components and the central location, the estimated annual use of the facilities is more likely to be contained within the median to higher level.

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For the purpose of this study we shall again be conservative and use the Median Series figures therefore

the estimated public utilisation is based on a figure of 2,974 per week or 154,648 per annum.

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Staffing

The below table is only

Position

an indication of possible staffing levels/roles and responsibilities, the majority of

the sporting clubs will have their own direct staffing costs and their individual reliance on volunteers. The

childcare manager has been included as we believe this service would be an asset to the proposed

precinct

Status Key Responsibilities Comments

Manager F/T Overall management of the centre General marketing Sporting and non sporting programming Liaison with Council Customer service

It is proposed that the Manager will use the expertise of the local sporting associations to assist in the conduct of sporting programs. The manager would act as program coordinator, for both sporting and non sporting activities such as craft, dance etc

Reception/ Admin Assist

F/T General reception and bookings during office hours Kiosk during non peak office hours General support to the Manager Customer service

The occupant of this position will provide assistance to the manager with cash accounting, banking, typing, telephone etc. This person would also look after function and other booking requirements.

Cleaner/ Handy person

F/T Cleaning the centre Minor maintenance Function room and other set up Customer service

The employment of a cleaner/handyperson is considered essential to ensure that the manager is not distracted from more important matters by having to move nets, change light bulbs and other minor matters. In addition, such a person will have the ability to ensure that the centre is kept clean at all times

Fitness Co-ord

F/T Fitness programming Fitness marketing Members development and liaison Customer service

The initial staffing for fitness is based on the centre being open for about x hours per day on weekdays and for about x hours per day on weekends. Casual and p/t staff will also be required for about xx hours per week.

Childcare Manager

F/T (Possible contract manager)

Childcare programming Parent liaison Customer service

The hours are based on forty hours per week. Additional p/t support will be dependent on the number of children enrolled

Food & Beverage Manager

Contract Staffing the bar and restaurant Ordering and stocking Cash control Customer service

The receptionist, duty managers and manager will attend to the kiosk during non-peak times. However the operation of the bar and restaurant will require specialist staff and whilst this could be operated directly by the SJCSG it may be better to contract this part of the operation out.

Duty Manager

F/T Control of the centre during peak times Customer service

In the initial set up and development stages of the centre it is very important that SJCSG retain very close control over an expensive asset. Allowance should be made for 2 full time employees to control and manage the centre and its program.

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5.3 Marketing Strategy

The marketing of the centre will need to be cognisant of its regional context and its operating philosophy

in order to meet objectives and specified outcomes.

It is essential that a ‘theme’ be developed outlining the Centres services and facilities.

This theme should follow the corporate image of the management but be easily recognised as belonging

to the new Centre. It should be modern and reflect the leisure ethos.

Prominent signs using the Centres logo should be sited on the main roads leading to the Centre

especially on any major tourist routes.

With the development of the Centre, it is then essential that a five-year business plan be prepared and

includes the following detail:

• a general description of the facility

• a mission statement which is complementary to Serpentine Jarrahdale

• an organisational analysis including:

o existing customers

o program profile

o staff profile

o building and equipment profile

o marketing profile

o conclusions about the state of the organisation

• an environmental analysis including:

o competitors

o demographics

o political considerations

o conclusions about the nature of the environment

• a financial analysis

• a SWOT analysis (

• a set of action plans which include action to be taken, timeframes and performance indicators for:

Strengths, Weaknesses, Opportunities, and Threats)

o human resources

o marketing

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o program development financial management

o five year operating and capital budgets, which include consideration of those issues relating to the National Competition Policy

The completion of the business plan is seen as the first step in any marketing strategy and will provide a

clear management framework to ensure that the facility is operated in accordance with agreed

performance indicators.

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6.0 Concept design

6.1 Core Elements

The conceptual planning of the proposed precinct will respond to the identified needs and potential

management arrangements of the varying components within the precinct. It will form an essential step in

defining the project and articulating for further comment the principles of planning, brief finalisation and

budget review.

The precinct will become an essential component of the community infrastructure for the Serpentine

Jarrahdale Shire. It will provide a venue for elite indoor/outdoor sport. When combined with the

community facilities included in the concept, the precinct will be a major focus for social activity that is an

integral part of elite and recreational sporting endeavour.

The design of the facility must respond to its importance within the Serpentine Jarrahdale Shire and

reflect the community’s aspirational values. The principles of the planning are to be reflected in the

concept sketches, and described on the drawing and will include:

• Adoption of sustainable design principles.

• Design measures to maximise benefit of passive design principles, water and energy

conservation.

i. Design to reflect aspirational values, creating a strong sense of place and space.

ii. Create sense of arrival and place to the entry/forecourt area of the complex.

iii. Allow for the orderly construction of the new facility in stages, permitting the occupation to

sporting clubs as soon as stages are complete.

iv. Creation of central entry/exit for effective management control of the centre

v. Provision for potential of external access for function hall and day care (in addition to internal

access) to allow for varying hours of operation.

vi. Restaurant/bar integrated with the centre but with separate entry to allow for appropriate

management controls and hours of operation.

vii. Provision of entry/exit controls for sports facilities.

viii. Compartmentation of varying activities to allow for efficient and cost effective air-conditioning.

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ix. Provision of activated internal “street” with glazed walling as shopfronts to the varying activities,

adding interest to the space and allowing easy managerial supervision.

x. Covered external courts.

xi. Toilets, change rooms to cater for internal and external use.

Potential embankment for viewing over sports oval, this would negate the size of a large grandstand.

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7.0 Location Rationale

7.1 Joint Use and Co-Location

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Landgate PIN 1250209 Landgate PIN 1250209

Lot number 4395 Lot number 4395

Plan/Diagram P219889 Plan/Diagram P219889

TPS2 Zoning URBAN DEVELOPMENT Acid Sulphate Soil Risk Moderate to low risk, No known

risk

TPS2 RCode No TPS2 RCode Overlays Bush Forever Site Number Not Affected by a Bush Forever

Site

Special Planning Area Code

Not within a Special Planning Area Overlays an Environmentally Sensitive Area

Yes

Special Planning Area Name

Not within a Special Planning Area Overlays a Geomorphic Wetland Multiple Use

MRS Classification URBAN

Rural Strategy Not affected by the Rural Structure Plan 1994

Rural Strategy Other MRS/Structure Plan Urban & Future Urban

Areas

Detailed Area Plan Not within a DAP

Planning Policy Area Mundijong Whitby Development Area-LPP29

,

Mundijong Whitby Development Area-LPP47

District Stucture Plan Mundijong District Structure Plan

Local Structure Plan Not within a Local Structure Plan

7.2 Environmental

The land is owned by the Crown Estate, plot number 4395 does overlay an environmental sensitive

area.Further investigations are required to understand any environmental issues

7.3 Statutory Planning and Regulations

The proposed location is currently in the Mundijong/Whitby District Structure Plan, however not within any

Local Structure Plan, there are currently two planning policies connected to this land, Local Planning

Policy No.29 and 47

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http://www.sjshire.wa.gov.au/planning-policies/�







7.4 Cultural and Heritage

We do not believe there is any cultural or heritage issues with the preferred location, however this will

have to be confirmed at the next stage.

7.5 Accessibility

The preferred location will be easily accessible from Kiernan Street and the South Western Highway,

once the orientation of the facility is determined we will recommend a traffic impact assessment be carried

out as part of the final feasibility study.

7.6 Transport

The preferred location is currently accessible by the local bus public transport (bus stop on Kiernan Street

close to existing dwelling), however Transperth would have to increase this service and should be

consulted when the Traffic Management Assessment is procured at the next stage. The facility would

cater for buses entering and leaving the facility.

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8.0 Design/Technical Evaluation

8.1 Technical Design Options

Multi Purpose Recreation Centre

• All courts to be air conditioned and designed for a tropical climate with adequate flow through ventilation.

• Court surfaces to be suitable for basketball, netball, futsal, volleyball and other indoor court sports.

• Lighting to be meet lux standards set by each sport for national level competition.

• Natural lighting to be provided so as not to interfere with play.

Health and Fitness Studio

• All areas to be air conditioned and with adequate flow through ventilation.

• Stage area to be included in group fitness room.

• Free weights area to have concrete slab floor and heavy duty rubber matting.

• Group fitness room to have a timber, sprung floor or flooring with similar characteristics.

Multipurpose Spaces


• Meeting rooms with wall dividers to create flexible spaces.

Support Services and Administration


• All plant, equipment and electrical fittings and fixtures to be energy efficient.

Swimming Pool/Hydrotherapy Pool

• Pool to be mechanically heated with solar heating boosters. Capacity to heat to 34oC.

• Air handling system will be required to circulate air in the enclosed pool during winter to minimise condensation.

• Water treatment plant and equipment to be adequate to meet water quality guidelines.

• All plant, equipment and electrical fittings and fixtures to be energy efficient.

• Water harvesting to be investigated including recycling of backwash water.

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9.0 Capital costs

9.1 Capital Cost Estimate

The Capital costs are the costs associated with the planning, establishing and constructing the facility. At

this point no Capital Cost Estimate has been prepared, however with regards to the Order of Magnitude

costs they are a bit hard to peg based on the info provided to date – but some rates we received from

Professional Quantity Surveyors that may be useful are:

• Ovals Approx. $30 to $45/m2 + lighting

• Grandstand - $5,000 to $10,000/ seat (a big range – but what level is to be provide?)

• Bowling Green $20,000/lane for grass or $30,000/lane for artificial + lighting

• Recreation Centre $2500 to $3,000/m2

• Swimming Pool 25m x 8 lane $1,000,000

• Hydrotherapy pool – depending on size costs usually start at $250K to ??

• Leisure play pools splash pads $350K to 600K or pool $1500 to $1,800/m2

• Basketball courts – approx. $130 to 150K / court + lighting

Plus external works & Services, Prof fees, contingency, escalation, etc.

As part of this study we have prepared Order of Magnitude Costs for Stage 1 and Stage 2 on the basis of

the above rates, please refer to Appendix A.

9.2 Estimate Clarifications

The following costs have not been included in the Order of Magnitude capital cost estimate, and will be listed in the estimate clarifications:

• GST, sales tax;

• Schedule acceleration costs;

• Schedule delays and associated costs, such as those caused by:

• Unexpected site conditions;

• Unidentified ground conditions;

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• Labour disputes;

• Force majeure;

• Permit applications; and

• Development fees and approval costs of Statutory Authorities;

9.3 Sources of Capital Funds

All avenues can/shall be explored in seeking potential sources of capital funding such as:

• Local government funds;

• State and commonwealth government grants;

• Sale of land or existing facilities;

• Contributions from potential user groups;

• Debt funding;

• Joint development and management agreements;

• Fund-raising activities;

• Donations of materials and services;

• Bequests;

• Sponsorship; and

• Private sector developers (PPP’s)

9.4 Capital Cash Flow

There are a number of options on the Capital Cash flow and this will be determined when the funding is

sourced.

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9.5 Life Cycle Analysis

There are four (4) primary principles to consider when assessing life cycle costs.

1. Recognise that a facility development project begins at the concept and preplanning stage and is

complete when the asset is sold or the site returned to its original condition.

2. Examine the full cost of each project component across the life of a project rather than choose

the cheapest option. This may mean a higher initial outlay but lead to reduced ongoing

operational, maintenance and disposal costs and a net lower total ownership cost.

3. LCC considers all of the economic and financial costs associated with constructing, procuring and

operating a facility at a level for which it was originally planned.

4. Developing a life cycle cost analysis is an intrinsic part of your overall asset management

strategy.

One way to express the total life cycle cost is in the form of a mathematical equation Total Life Cycle Cost (LCC) = Initial asset acquisition /capital cost (AC) Less Tax depreciation entitlements (TD) Plus Operating and maintenance costs (OC) Plus Replacement / disposal /upgrade costs (RC) Less Residual / salvage value (RV) = LCC So a typical life cycle cost for new sport and recreation facilities could be represented in the following equation: LCC = (AC – TD) + (OC + RC) –RV

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10.0 Financials Meeting the capital cost is only the starting point of funding a facility. Operating costs represent the

ongoing financial obligation that will need to be met. At this stage we do not yet have a definitive brief of

what will be built therefore the below is only an overview of what is required to complete full feasibility

10.1 Financial Forecasts

It is recognized that a variable of plus or minus 15% could be experienced.

Salaries and Wages Calculations

Positions (indicative levels & salaries)

Centre Manager LGA Award Level 7 80,000 Duty Managers x 2 LGA Award Level 2 50,000 Cleaner/Handy Person MEU Award Level 6 60,000 Receptionist LGA Award Level 1 50,000 Crèche Officer 12hrs @ $20.00 per hour/week 12,500 Fitness Manager LGA Award Level 6 75,000 Fitness Instructors x 2 30 hours per week @ $25 per hour 78,000 Umpires/Referees 72 hrs /per week @ $20 per hour 72,000 Program staff 30hrs/per week @ $35 54,600 Contract Staff Allowance 100,000

Total Salaries $632,100

It should be noted that no costs have been included for the operation of the bar/restaurant area as it is recommended that negotiations be undertaken with an appropriate professional group to contract manage the functional area.

No allowance has been made for direct management of the Licensed Child Care facility (if this service is to be included in the scheme), similar to the Bar/Restaurant area, the Licensed Child Care facility could also be contract managed to a suitable professional group.

In addition to the above staff costs it should be recognized that additional expenditure will be incurred in the development of specific programs such as holiday programs, special events and leisure programs.

However, all these staff costs should see a commensurate return in income and, at worst, should operate

at a cost neutral position that is; if $50,000 is expended then the income should also show a $50,000

return.

As stated earlier in this report the expected attendance in the first year should be in the vicinity of 155,000 per year. This is considered to be a conservative estimate and could be closer to 180,000 in the first year with a small increase in subsequent years.

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Category Year 1 Detail Sporting Competitions 31,200 600 per week (Mon-Fri). Sporting competition over 5

nights Fitness Club Member (Full) 6,000 1500 members on 3 monthly membership Fitness Club Member (Day) 4,000 1000 members on 3 monthly membership Casual Fitness Class 5,200 100 participants per week Casual Gym 5,200 100 participants per week Squash 2,600 50 participants per week Martial Arts 5,200 100 participants per week Child Care 1,200 25 per week Crèche 2,600 50 per week Court Hire 5,200 100 participants per week (schools & casual) Vacation Program 2,500 50 participants per day Junior Competitions 32,000 640 per week or 128 per day (Mon-Fri) Meeting Room/Activity Room 18,200 350 persons per week Special Events/Social Events 33,800 650 persons per week

In order to assist the group in its deliberations a range of potential attendance scenarios based on “Worst

Case” “Expected” and “Best Case” are provided as follows:

Category Worst Expected 1st Year Best Sporting Competitions 20,142 31,200 40,284 Fitness Club Member (Full) 3,873 6,000 7,747 Fitness Club Member (Day) 2,582 4,000 5,165 Casual Fitness Class 3,357 5,200 6,714 Casual Gym 3,357 5,200 6,714 Squash 1,679 2,600 3,357 Martial Arts 3,357 5,200 6,714 Child Care 775 1,200 1,549 Crèche 1,679 2,600 3,357 Court Hire 3,357 5,200 6,714 Vacation Program 1,614 2,500 3,228 Junior Competitions 20,658 32,000 41,317 Meeting Room/Activity Room 11,750 18,200 23,499 Special Events/Social Events 21,821 33,800 43,641

TOTAL 100,000 154,900 200,000

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Three Year Attendance Projection

Category Year 1 Year 2 Year 3 Sporting Competitions 31,200 32,760 36,036 Fitness Club Member (Full) 6,000 6,300 76,930 Fitness Club Member (Day) 4,000 4,200 4,620 Casual Fitness Class 5,200 5,460 6,006 Casual Gym 5,200 5,460 6,006 Squash 2,600 2,730 3,003 Martial Arts 5,200 5,460 6,006 Child Care 1,200 1,260 1,386 Crèche 2,600 2,730 3,003 Court Hire 5,200 5,460 6,006 Vacation Program 2,500 2,625 2,888 Junior Competitions 32,000 33,600 36,960 Meeting Room/Activity Room 18,200 19,110 21,021 Special Events/Social Events 33,800 35,490 39,039

TOTAL 154,900 162,645 178,910

Category Year 1 Basis Sporting Competitions $7.00 Each sporting competition is costed out to

represent an individual cost of $7.00 per person so the following costs are payable: Basketball $35.00 per team/per game Netball $49.00 per team/ per game Soccer $35.00 per team/per game

Fitness Club member (full) $210 3 month

Entitles members to access for 3 months to gym and all fitness classes

Fitness Club member (day) $150 3 month

Entitles members to access for 3 months to gym and all fitness classes during 9am -4pm

Casual Fitness Class $12.00 Entry to fitness class Casual Gym $12.00 Entry to gym Squash Court $20.00 Per court per hour Martial Arts $7.00 Entry to martial arts activities Child care/Crèche $65 per day

$75 per day $3.50 per session

Based on child over 2 years of age Based on child under 2 years of age Crèche available to persons participating in other centre run programs

Court Hire $40 per hour May need to incorporate a 50% reduction per hour for set up costs.

Vacation Program $10 per day Provides for all activities for 9am -4pm Junior Competitions $5.50 Each sporting competition is costed out to

represent an individual cost of $5.50 per person so the following costs are payable: Basketball $27.50 per team/per game Netball $38.50 per team/ per game Soccer $27.50 per team/per game

Meeting Room/ Activity Room $35.00 per hour Special Events $40 per hour plus

staff costs This is subject to negotiation subject to level of involvement and income sharing.

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Financial projections for three years of operation have been developed based on the estimated weekly attendance, proposed fees and charges, usage patterns and an indirect management structure.

It should be noted that these figures are estimates only, and the actual performance will be subject to a number of factors, these being:

• Management structure • Actual attendance figures • Fees and charges • Program base • Operating Hours

Having consideration for the above factors, an operational budget has been developed for the three identified scenarios.

OPERATING INCOME

Category Worst Expected 1st Best Year Sporting Competitions 140,994 218,400 281,988 Fitness Club Member (Full) 203,333 315,000 406,718 Fitness Club Member (Day) 96,825 150,000 193,688 Casual Fitness Class 40,284 62,400 80,568 Casual Gym 40,284 62,400 80,568 Squash 33,580 52,000 67,140 Martial Arts 23,499 36,400 46,998 Child Care 65,000 100,000 39,000 Crèche 9,750 15,000 39,000 Court Hire 134,280 208,000 268,560 Vacation Program 16,140 25,000 32,280 Junior Competitions 113,619 176,000 227,244 Meeting Room/Activity Room 19,500 30,000 39,000 Special Events/Social Events 6,500 10,000 39,000 Bar & Beverage Contract Total Income 943,588 1,460,600 1,841,751

Based on Attendance of: 100,000 154,900 200,000

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OPERATING INCOME

Category Year 1 Year 2 Year 3 Sporting Competitions 218,400 229,320 252,252 Fitness Club Member (Full) 315,000 330,750 363,825 Fitness Club Member (Day) 150,000 157,500 173,250 Casual Fitness Class 62,400 65,520 72,072 Casual Gym 62,400 65,520 72,072 Squash 52,000 54,600 60,060 Martial Arts 36,400 38,220 42,042 Child Care 100,000 105,000 115,500 Crèche 15,000 15,750 17,325 Court Hire 208,000 218,400 240,240 Vacation Program 25,000 26,250 28,875 Junior Competitions 176,000 184,800 203,280 Meeting Room/Activity Room 30,000 31,500 34,650 Special Events/Social Events 10,000 10,500 11,550 Bar & Beverage Contract Total Income 1,460,600 1,533,630 1,686,993

Based on Attendance of: 154,900 162,645 178,910 Operating Expenses

OPERATING EXPENSES Year 1 Year 2 Year 3 Salaries/Wages 632,100 663,705 696,890 Oncost 189,630 199,112 209,067 Insurance Workers Comp 15,000 15,750 16,538 Advertising 10,000 10,500 11,025 Postage & Printing 5,000 5,250 5,513 Stationery 10,000 10,500 11,025 Telephone 7,500 7,875 8,269 Cleaning Materials 15,000 15,750 16,538 Insurance 10,000 10,500 11,025 Energy Costs 200,000 210,000 220,500 Water 20,000 21,000 22,050 Maintenance 3,000 3,150 3,308 Prizes and Trophies 7,500 7,875 8,269 Equipment Repairs 5,000 5,250 5,513 Security 3,500 3,675 3,859 Rubbish collection, Rates and Taxes 20,000 21,000 22,050 Staff Uniforms 3,000 3,150 3,308 Vehicle Operating Charges 10,000 10,500 11,025 Licenses (APRA etc) 5,000 5,250 5,513 Program expenses 100,000 105,000 110,250 Computer Software License 8000 8,400 8,820 Data Communication Links 15,000 15,750 16,538 Reserve Replacement Fund 150,000 157,500 165,375 Depreciation 100,000 105,000 110,250 Total Expenses 1,544,230 1,621,442 1,702,514

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The above financial projection scenario shows that the facility would operate at a deficit of approximately

$100,000, however the above costs did not consider the Bar & Beverage income or any sponsorship

throughout the year.

*NOTE: It is difficult to ensure the accuracy of financial projections when there are so many variables which could impact. Therefore, the above should only be considered as a guidance for

the numbers required to break even.

In addition to the above costs in the case of the swimming pool facility we have liaised closely with State

Swim, and they have advised to operate as a State Swim Facility we would require and operational cost

of approximately $1 million per annum. To generate the operation costs for State Swim we would have to

attract approximately 2,400 people per week with an average admission of $8 per attendee, considering

the local school numbers and the Byford High School projected numbers, we believe this number is

achievable.

10.2 Cashflow Analysis

The availability of funds throughout the planning, design and construction phases are essential. The

following key points need to be determined:

• The accuracy of the estimated capital costs

• When capital expenses will be due for payment, i.e project cashflow requirements for the design and construction phases.

• The impact of foreseen increases in construction costs on cashflow

• How any debt will be retired

• The capability of the community to meet fundraising targets and timeframe required

• The reliability of volunteer resources

• When grant funds will be required

10.3 Profit and Loss

Profit and Loss monthly statement for first financial year, quarterly for years 2 & 3 and annually thereafter

shall be completed at the next stage.

The collective sporting groups associated with the Sports & Community group currently generate circa

$400k per annum which equates to a small profit over the year.

10.4 Breakeven Analysis

Prepare annual statement for years 1-5 – to be completed at the next stage

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10.5 Sensitivity Analysis

A sensitivity analysis

• What if… attendance is only 40%, 50% or 60% of the projected amount • What if… the staff costs increase by 20% • What if… the major competitor drops its prices by 15%.

Prepare annual statement for years 1-5 – to be completed at the next stage

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Staging Alternatives

10.6 Staging Options

It is always cheaper to construct a facility in one stage. However, if the capital and/or operating costs of

the proposed facility are beyond the means of the funding sources, we will consider reducing the scale of

the proposal, or staging construction.

By staging the development, priority services can be established first and their performance monitored

before committing additional funds. Additional services and facilities can be provided when funds become

available. Staging is also a viable option when not all desires/needs have demand at the same time.

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11.0 Sustainability This chapter provides a summary of actions to ensure the facility is sustainable.

11.1 Economic Forecast

Actions required to ensure economic sustainability include:

• Negotiate a management contract/lease which provides Council with known long term financial commitment.

• Include commercial elements to complement Council’s community service obligations.

• Minimise the amount of debt to be funded from operating revenues.

• Ensuring the Recreation Centre and Swimming Centre operate in a complementary, rather than competitive way.

• Obtain highly competent and proven managers for the new facility.

11.2 Environmental

Actions required to ensure environmental sustainability include:

• Design to take advantage, and account, of the tropical climate of Western Australia.

• Energy efficient plant, equipment, fittings and fixtures.

• Optimum use of natural light and ventilation.

• Recycling and harvesting of water both from external sources (rain) and internal sources (eg backwashing).

• Energy efficient building materials.

• Potential use of recycled building materials where possible.

• Orientation of the building on the site to maximise natural ventilation and minimise the impact of the sun.

• Use of solar heating for pool heating and hot water systems.

11.3 Social/Cultural Impact

Actions required to ensure cultural and social sustainability include:

• Develop programs and services targeted to the local community.

• Encourage local community and sporting groups to use the facility.

• Ensure that pricing does not preclude large numbers of local residents from using the facility.

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12.0 Recommendations

12.1 Option Selection

Currently the preferred option is to source funding for the full development, dependant on the outcome of

the funding sources a decision will be made on option selection at the next stage.

12.2 Recommendations

Following consultation with the stakeholders we recommend the group proceed with an application for

funding to proceed with the full feasibility study. A Concept Design and a Concept Cost Plan must be part

of this commission.

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APPENDIX A-Order of Magnitude Costs

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Documents

SERPENTINE JARRAHDALE SPORTS & COMMUNITY GROUP … · SERPENTINE JARRAHDALE SPORTS & COMMUNITY GROUP Inc . Preliminary Feasibility Study for . Proposed Community Sports & Recreational