Corowa Aquatic Centre Service Delivery Review Report
Record No: 23/29224
Date: June 2023
1. Introduction
The Corowa Aquatic Centre was opened to the public on 26 April 2021 following replacement of the outdoor 50m summer seasonal pool that was decommissioned in 2018 due to safety concerns. The centre operates year-round and includes a heated indoor 25m three-lane pool with program area, outdoor splash park, outdoor 50m eightlane pool as well as a café, swim shop and changerooms.
The centre has been open for two (2) years and during this time has been under council's direct management Council initially agreed to run the centre for a minimum 2-year period before considering the longer-term service delivery model. The purpose of this was to provide an opportunity for Council to understand the service as well as having the benefit of 2 years of operational data available.
The provision of public swimming pools is a service traditionally delivered by Councils, particularly in regional areas, and they provide many well-documented physical, social and health benefits for communities. Since opening, there have been over 74,000 admissions to the centre and there are currently 140 members. The following services and programs are being delivered:
• learn to swim lessons (currently 349 students enrolled);
• aqua fitness classes (2 classes per week);
• physiotherapy and rehabilitation sessions (2 x sessions per week);
• swim club training and activities (2 sessions per week in winter, 5 sessions per week in summer);
• local and regional swim competitions;
• school carnivals and fun days;
• sports training;
• regular lap swimming; and
• general fitness and recreation.
Corowa Aquatic Centre has delivered countless benefits for the community and will continue to deliver these benefits into the future. There have also been many challenges that have impacted on the operations of the centre, including:
• interruptions due to COVID-19 lockdowns and restrictions;
• centre closure due to the 2022 flood;
• external economic pressures and climate;
• milder weather over the last two summers with less days over 40 degrees than normal;
Despite these challenges, the day-to-day management team have gained a thorough knowledge of centre operations, learnt many lessons along the way, and have been able to implement several service improvements during the first 2 years of operations During this time, Council developed a Corowa Aquatic Centre Business Plan 2022/23 – 2025/26 to help drive improvements at the centre.
To assist with maximising its full potential for patrons and the community, Council has undertaken a service review of Corowa Aquatic Centre by an internal working group to identify and weigh-up different service delivery model options that could be successfully implemented at the centre. Seven (7) service delivery models have been identified and two (2) models have been selected as the preferred models to engage with the community and seek their input before deciding which model will be implemented.
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2. Service Delivery Review Process
This service review has considered service delivery models for the future management of Corowa Aquatic Centre. The service review was undertaken by and internal working group comprising of:
• Manager Environment, Facilities & Regulations;
• Facility Management Coordinator;
• Duty Officer Pools;
• Manager Communications;
• Manager IT & Customer Service;
• IT Support Officer;
• Systems Accountant; and
• Manager People & Culture.
The working group considered the following when undertaking the review:
• Current service model and services provided at the centre;
• Capacity and resources required to deliver the service;
• Monthly operational statistics and performance;
• Results of customer surveys for Learn to Swim and Aqua Aerobics programs;
• Results of previous customer engagement activities for the concept designs, decision to proceed with the build and fees and charges models for the special rate variation;
• Legislative framework, risk, and liability implications for the pool industry; and
• Financial performance and sustainability.
Staff also attended other pool facilities across the region and to see other service delivery models in operation and were able to identify pros and cons as well as opportunities that could be implemented at Corowa Aquatic Centre. An online review was also undertaken to find out what other councils are doing at their pool facilities.
3. Integrated Planning & Reporting (IP&R) Framework
3.1 Link with IP&R
Under the Integrated Planning and Reporting (IP&R) Framework for Local Governments, councils are required to develop a program of services review to encourage continuous improvement across council’s operations. This service review is the first significant review under this IP&R requirement.
The operations of Corowa Aquatic Centre links to the Council’s 4-year Delivery Program as outlined below:
Community Plan Delivery Program
Built Environment
Maintained and improved infrastructure that meets the needs of residents and industry
1.2 Maintain and improve aquatic, recreational, and other community facilities to meet the needs of residents.
Operational Plan
1.2.1 Implement a Capital Works renewal and improvement program for aquatic, recreational and other community facilities.
This service review aligns with Council’s 4-year Delivery Program and 12-Month Operational Plan as outlined below:
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Community Plan Delivery Program Operational Plan Well Governed Federation
Strong civic leadership and governance supporting equity across communities and effective communication with residents.
5.6 Provide operational efficiency and effectiveness to ensure a resilient and responsive organisation.
5.6.1 Implement a program of service reviews that demonstrates the commitment to continuous improvement and stakeholder engagement.
5.6.10 Implement a planned program to deliver and communicate productivity improvements and cost containment strategies.
3.2 Corowa Aquatic Centre Business Plan 2022-23 – 2025-26
To help drive improvements Council adopted the Corowa Aquatic Centre Business Plan 2022-23 - 2025-26 at its meeting held on 15th August 2022. The key strategic goals of this Business Plan are:
• Optimising the financial performance and efficiency of the facility;
• Growing membership, participation, events, and attendance to the facility;
• Providing quality programs and activities for all user groups;
• Strengthening the promotion and marketing of the facility; and
• Providing a safe and well managed facility that everyone can enjoy.
Action 5.9 of the Business Plan is "to investigate and consider alternative service delivery models and options by June 2023".
4. Customer Needs & Expectations
Council has undertaken several community engagement activities related to the Corowa Aquatic Centre over the last 7 years pre and post build of the new facility as outlined below:
2016 Resident survey conducted of local-residents to obtain information on usage of public swimming pools and to gauge interest in residents paying more in rates which would determine the type of facility delivered.
June 2018
June 2018
Community Strategy Plan – workshops to identify community priorities (swimming pool was 2 on the infrastructure priority list).
Community meeting (hosted by residents) – attended by more than 200 people at the Corowa RSL Club to request Federation Council to push support for an indoor swimming pool.
June 2020 Delivery Program and Long-Term Financial Plan 2020-2030 released for public feedback containing 8% SRV increase.
August 2020
Community Satisfaction Survey – 400 residents were asked to indicate their support for a Special Rate Variation as part of Council’s B-Annual Community Satisfaction Survey.
December 2020 / January 2021 2020-21 Have Your Say – Corowa Aquatic Centre Fees & Charges and Special Rate Variation Application Survey.
February 2021
August 2022
September 2022
Community engagement sessions regarding the Special Rate Variation Application.
Learn to Swim survey of parents and caregivers of students.
Community wide survey with regards to the aqua aerobics program.
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Past engagement activities identified strong community support of building a year-round pool with both indoor and outdoor facilities that will support activities such as learn to swim, exercise and therapy/rehabilitation.
The results of the two user surveys undertaken in 2022 for Learn to Swim and Aqua Aerobics are included in Appendix 1.
5. External Environment
5.1 Industry Trends
Many councils are grappling with increasing labour costs, increasing energy costs, aging assets, and financial sustainability of their public swimming pools. While Federation Council is fortunate to have a brand-new asset, all these other factors are applicable and will provide ongoing challenges.
There is a growing trend of councils outsourcing the operational management of public swimming pools to organisations that specialise in providing aquatics and leisure management services given the significant time and resources required to deliver the service. There are also a small number of councils have also taken back direct management of their public swimming pools for various reasons such as undergoing major refurbishment or revitalisation and/or after many years under old contracts that may no longer be providing the best service for the community.
5.2 Site Visits to Other Facilities
Staff that participated in the internal working group for this service review attended other pool facilities in the region. The results these visits are outlined in Appendix 2.
6. Current Service Delivery 6.1 Services Delivered
Services delivered by council at Corowa Aquatic Centre includes:
• Learn to Swim classes;
• Aqua Movers and Aqua Workout Classes;
• Café with snacks and drinks; and
• Swim shop with merchandise for sale.
Other external organisations and parties deliver services at the facility, including:
• Corowa Sharks Swim Club – squad training;
• Back on Track Physio – hydrotherapy classes; and
• Council’s Ageing Well Committee members, Liz Seeliger and Jenny Enever delivering aqua classes supported by Murrumbidgee Health.
The facility is well supported by disability and access user groups with 636 carer entries to the facility since opening. There have also been over 2,700 hours of lane hire from various user groups.
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6.2 Staff Resources
The management of facility is undertaken by internal resources with the following organisational structure:
Supervisory staff include the Duty Officer and Assistant Duty Officer who are engaged full-time on fixed term contracts. Both fixed term contracts expire this year. Lifeguards, customer service, aqua fitness instructors and learn to swim instructors are engaged on a casual basis.
Average rostered hours are outlined below:
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Expected Summer 2023/24 275
This includes all supervisory staff, customer service, lifeguards, aqua and learn to swim.
An external contractor is also engaged on a weekly basis to undertake regular servicing and maintenance of both plant rooms at the centre. The contractor charges per hour and travel time. During winter this includes 1 x 4hr weekly service. In summer this is up to 2 x 6hr weekly services.
6.3 Performance and KPI’s
The Corowa Aquatic Centre Business Plan 2022/23 – 2025/26 outlines a range of participation rate targets for the facility. Below provides an overview of achievements to date.
*Forecasted based on results current year to date (July 2022
May 2023)
At the June 2022 Council Meeting a comprehensive report was provided of the performance of the centre for its first 12 months of operation. A further report is anticipated for the July 2023 Council Meeting that provides the more detailed information about centre’s performance for the 2022-23, including key performance measures.
6.4 Budget
The below table provides an overview of the budget result for the 2021-22 and 2022-23 financial years.
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*Forecasted based on results current year to date (July 2022 – May 2023)
Wages account for nearly 50% of running costs and over 30% on other unavoidable costs such as electricity, gas, chemicals, pool servicing and maintenance. Materials and contract expenses are higher than originally anticipated due to higher utility costs; one-off purchases for supplies and equipment; operating costs for pool operating and rostering software; inclusion of products and supplies for the canteen that was originally intended to be contracted to a third-party operator; and higher chemical and pool maintenance costs The budget performance for the last 2 years highlights that the operation of the Corowa Aquatic Centre is having an impact on Council’s Long Term Financial Plan (LTFP) financial sustainability indicators.
The centre does not have the potential to generate sufficient revenue to cover the total running costs. This was always anticipated to be the case and is generally the case for regional council swimming pools. Council applied for and was granted by IPART an 8% Special Rate Variation (SRV) (inclusive of 2% rate peg) in 2021 which was applied from 1 July 2021 to assist with the running costs of the facility. The SRV has able to contribute to many beneficial outcomes that the facility provides the community such as learn to swim classes, aqua fitness classes, physiotherapy, and lap swimming.
Council proposed in the SRV application that the total running costs of the facility would be split between users 47% and ratepayers 53%. Over the last two years, the percentage of running costs covered by users vs. ratepayers is outlined below:
Council needs to work towards achieving the intended split between users and ratepayers that was committed to in the SRV application to IPART This will be challenging and may not be able to be fully realised in this service review, instead requiring Council to find further efficiencies over time.
A further report is anticipated for the July 2023 Council Meeting that provides more detailed information about the centre’s financial performance for the 2022-23.
6.5 Operational Challenges
Operational challenges for the centre include:
• Less membership uptake than expected;
• Targets for attendance and income not being achieved;
• Slow decline in membership since first opening;
• Pressure on council’s internal resources to run and manage the facility (i.e. Facility Management, HR, IT, Finance, Communications);
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• Uncertain future service delivery model which creates a lack of stability and job security for pool staff;
• Reliance on casual and fixed term staff to operate the facility;
• Remuneration rates under the Local Government Award;
• Attraction and recruitment of learn to swim instructors
• Reliance on school and university students for lifeguarding with high turnover and an inexperienced workforce;
• Lengthy council recruitment process;
• Frequency of recruitment drives required to sustain a sufficient workforce;
• Need to ramp up staff numbers for peak summer season;
• Ensuring all staff have been adequately inducted and trained
• Balancing the needs of all user groups with opening hours and availability;
• Holiday opening hours vs. business-as-usual hours;
• Original intention of cleaning and maintenance for midday shutdown periods on Mondays, Wednesdays and Fridays is not occurring;
• Trying to increase participation with current resources available; and
• Increasing costs for chemicals, maintenance, equipment, electricity, and gas.
In addition to this, there have also been several external influences that have had an impact on the centre, including:
• interruptions due to COVID-19 lockdowns and restrictions;
• centre closure due to the 2022 flood;
• external economic pressures and climate;
• milder weather over the last two summers with less days over 40 degrees than normal;
It is believed that these challenges have resulted in less than anticipated admissions to the centre.
6.6 Service Improvements
Service improvements already implemented include:
• One additional supervisory position to provide increased staff supervision across the span of opening hours;
• Structuring supervisory positions to provide hands on supervision and undertake lifeguard and customer service shifts on deck; and
• Scrutiny of the staff roster to find efficiencies with shift hours and staff numbers per shift.
So far, the revised staff roster has resulted in a saving of at least 30 roster hours per week.
Further opportunities for improvement to the current service have been identified via knowledge staff have gained from operating the centre, direct feedback from users, site visits to other facilities and brainstorming with the internal working group. These opportunities include:
• Work with Corowa Sharks to support and promote swim club membership and participation;
• Provide entry pass packages, i.e., 10 x entry pass;
• Online calendar with activities and available times;
• Staff undertake sales training to assist with translating casual entries into memberships;
• Multi-skilled staff across lifeguards, learn to swim and customer service;
• Grow our own learn to swim instructors;
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• Provide BBQ’s, water refill station, more baby change stations, additional shade and seating outdoors to encourage visitation
• Additional solar panels to reduce energy use and electricity costs;
• Come and try days with a swim coach to assist new lap swimmers with basic stroke techniques;
• Participate in charity fundraising activities and compete as teams, i.e., the big freeze;
• Challenges and races, i.e., council staff/councillors vs. local group;
• Seniors social club at the pool, i.e., senior’s social hour;
• Youth discos; and
• Personal trainers’ delivery exercise classes at the pool.
It is important to understand that many of these improvements require additional staff or budget resources to deliver.
7. Future Service Delivery Model Options
The following sections provide information about each service delivery model considered for this review.
7.1 Model 1: Current ‘As Is’
Description
This model involves retaining the service ‘as is’ with minor improvements to service delivery. This includes summer and winter seasons with access to all users during opening hours. Booking system to secure lanes for activities which requires customers to be prioritised and juggled against availability. Lifeguard supervision is always provided when the centre is open to the public.
Advantages
• Council retains direct influence over the programs and services delivered.
• Council retains important relationships with stakeholders and service providers.
• Council can ensure risk and liability are adequately managed.
• Utilisation of internal Council services – Facilities, Human Resources, IT, Communications, Payroll, Finance etc.
• Customers are familiar with this service delivery model.
• Existing pool of trained and qualified staff available.
• Existing brand and assets – social media, website etc.
Disadvantages
• The current model is not financially sustainable for Council in the long term.
• Council are not industry experts and there is a significant impact on Council resources to deliver the service.
• The current model does not provide opportunity for significant costs savings or generating further revenue.
• Labour costs are higher under council Local Government Award than industry awards.
• While providing community facilities is a core service of Councils, managing the facility does not need to be a core service of council.
• Attracting, recruiting, and retaining staff has been and will continue to be a challenge for Council.
Roles & Responsibilities
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All aspects of the service provided under Council’s direct management, including staff management, training, recruitment, rostering, lifeguarding, providing programs such as aqua aerobics and learn to swim, running the canteen, risk assessments, operational procedures, emergency management, pool, and plant room operations. Council maintains direct control of service delivery.
Financial Sustainability & Budget Forecast
The below financial modelling has been determined using the current Long Term Financial Plan (LTFP) 10-year average.
Expected Income: $970,283
Expected Expenditure: $1,685,658
Expected Net Result: -$715,376
Expected Budget change: No change.
Ratepayer Contribution: $1,235,658 (73%)
User Contribution: $450,000 (27%)
This model does not propose to change the overall financial sustainability of Council. This model is considered not to be sustainable in the long term and a new approach is required.
7.2 Model 2: Programmed Service
Description
Under this model all pool activities are scheduled with implementation of a timetable across both summer and winter opening hours to create operational efficiencies. It includes programmed activities with a timetable for allocated activities, such as lap swimming, learn to swim, aqua fitness, physiotherapy, and swim club. Access restricted to allocated times for each activity. Continue to provide increased availability outdoor facilities during summer (high season).
Advantages
• Opportunity to reduce staff resources required to manage the facility.
• Opportunity to reduce operating costs.
• Reduced impact on Council’s overall financial sustainability.
• Reduce periods of downtime.
• Reduce user group clashes and conflicts.
• Retain important programs – learn to swim, aqua, lap swimming, physiotherapy.
• This model could be in conjunction with other service delivery models.
• This model could work particularly well in winter where there is limited availability of lap lanes and existing clashes amongst user groups.
• Retain existing pool staff.
Disadvantages
• Clear communication required to ensure patrons understand programmed times and availability.
• It is unlikely that this model will generate more revenue for Council.
• Users will be required to adhere to allocated timeslots for activities.
• Members will also be required to adhere to allocated timeslots, reducing the availability they can utilise their membership.
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• There may be times that patrons are turned away if they arrive outside of allocated timeslots.
• Reduced casual employment opportunities at the centre due to less staff resourcing required.
Roles & Responsibilities
All aspects of the service provided under Council’s direct management, including staff management, training, recruitment, rostering, lifeguarding, providing programs such as aqua aerobics and learn to swim, running the canteen, risk assessments, operational procedures, emergency management, pool, and plant room operations. Council maintains direct control of service delivery.
Financial Sustainability & Budget Forecast
This model is expected to see a 5% reduction in existing income and 20% reduction in existing wage costs.
Forecast Income: $947,783
Forecast Expenditure: $1,510,289
Forecast Net Result: -$562,506
Forecast Budget Change (from current): operating cost reduction of $152,870
Ratepayer Contribution: $1,082,788 (72%)
User Contribution: $427,500 (28%)
This model will provide cost savings to assist with reducing the current impact on Council’s financial position.
7.3 Model 3: Tiered Supervision
Description
This model involves tailoring lifeguard supervision based on patron numbers and risk. It includes implementing a minimum lifeguard supervision mode during periods of low patronage utilising signs as remote supervision, i.e. “No Lifeguard on Duty”, with supervision increased during periods of higher patronage. This model will require consultation with council’s insurer, including undertaking a risk assessment and developing operational procedures. This model also includes revised staff resourcing - core base of permanent employees supplemented with casual pool of staff. Routine pool maintenance undertaken inhouse rather than external contractor.
This model also includes revising staff resources at the centre as follows:
• Current fixed term positions changed to full time permanent roles in the structure;
• An additional full time Assistant Duty Officer position in the structure which would result in 3 x supervisory positions at the centre being 1 x Duty Officer and 2 x Assistant Duty Officers. These supervisory positions would continue to undertake hands on supervision and fulfilling regular customer service and lifeguard shifts;
• Creating a fulltime permanent Maintenance Officer position in the structure to reduce reliance and cost of the weekly external service agent. This Maintenance Officer would work across all council pools, including Howlong, Oaklands and Urana and enable council to build these skills and capabilities in-house;
• Transitioning Learn to Swim Instructors positions from casual employment to permanent part time; and
• Transitioning 3 x Customer Service Officer positions from casual employment to permanent part time.
This would reduce the overall number of fixed term and casual employees, creating more stability for staff employed at the centre. The permanent workforce (core staff) would then be supplemented by a casual pool of staff which can be increased during high peak periods. The estimated costs of these position changes in the structure have been included in the financial modelling for this service delivery model.
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Advantages
• Risk based supervision.
• Opportunity to substantially reduce staff resources and burden required to operate the centre.
• Opportunity to significantly reduce operating costs.
• Reduced impact on Council’s overall financial sustainability.
• Retain important programs – learn to swim, aqua, lap swimming, physiotherapy.
• This model could be in conjunction with other service delivery models.
• Retain existing pool staff.
Disadvantages
• Clear procedures and processes will be required to maintain safety of patrons.
• Clear communication with patrons to make them aware of supervision arrangements and their responsibilities.
• It is unlikely that this model will generate more revenue for Council.
• Reduced casual employment opportunities at the centre due to less staff resourcing required.
Roles & Responsibilities
All aspects of the service provided under Council’s direct management, including staff management, training, recruitment, rostering, lifeguarding, providing programs such as aqua aerobics and learn to swim, running the canteen, risk assessments, operational procedures, emergency management, pool, and plant room operations. Council maintains direct control of service delivery.
Financial Sustainability & Budget Forecast
This model is expected to see a 40% reduction in existing wage costs and includes revised staff resources with increased permanent (full time and part time) positions and reduced casual positions.
Forecast Income $970,283
Forecast Expenditure $1,440,023
Forecast Net Result -$469,741
Forecast Budget Change (from current): operating cost reduction of $245,635
Ratepayer Contribution: $990,024 (68%)
User Contribution: $450,000 (32%)
This model will improve Council’s financial position and produces the best financial income for council.
7.4 Model 4: Reduced Hours
Description
This model involves reducing opening hours and therefore accessibility for community use. It includes reduced opening hours across both summer and winter seasons. In this model, opening hours could be reviewed with the aim of having consistent opening hours across weekdays with less shutdown periods.
Advantages
• Opportunity to reduce staff resources required to manage the facility.
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• Opportunity to reduce operating costs.
• Reduce impact on Council’s overall financial sustainability.
• Retain existing pool staff.
• This model could be implemented in conjunction with other service delivery models.
Disadvantages
• This model will reduce the ability to generate further revenue.
• The centre will be less available to the community with reduced operating hours.
• Inability to accommodate all programs and user groups with less opening hours.
• Customer backlash and negativity.
• Reduced casual employment opportunities at the centre due to less staff resourcing required.
Roles & Responsibilities
All aspects of the service provided under Council’s direct management, including staff management, training, recruitment, rostering, lifeguarding, providing programs such as aqua aerobics and learn to swim, running the canteen, risk assessments, operational procedures, emergency management, pool, and plant room operations. Council maintains direct control of service delivery.
Financial Sustainability & Budget Forecast
This model is expected to see a 20% reduction in existing income and 30% reduction in existing wage costs.
Forecast Income $880,283
Forecast Expenditure $1,422,604
Forecast Net Result -$542,321
Forecast Budget Change (from current): operating cost reduction of $173,054
Ratepayer Contribution: $1,062,604 (74%)
User Contribution: $360,000 (26%)
This model will provide cost savings to assist with reducing the current impact on Council’s financial position.
7.5 Model 5: Increased Hours
Description
This model involves increasing opening hours and therefore accessibility for community use. This includes increased opening hours across both summer and winter seasons. In this model, shutdown periods during the middle of the day on Mondays, Wednesdays and Fridays would be removed.
Advantages
• Increased availability for community use.
• More availability to increase scheduling of programs and provide additional services.
• Retain existing pool staff.
Disadvantages
• This model will not translate to increased revenue.
• This model will require increased staff resources and subsequently increase operating costs.
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• Negatively impact council’s overall financial sustainability.
Roles & Responsibilities
All aspects of the service provided under Council’s direct management, including staff management, training, recruitment, rostering, lifeguarding, providing programs such as aqua aerobics and learn to swim, running the canteen, risk assessments, operational procedures, emergency management, pool, and plant room operations. Council maintains direct control of service delivery.
Financial Sustainability & Budget Forecast
This model is expected to see a 10% increase in income and 30% increase in wage costs.
Forecast Income $1,015,283
Forecast Expenditure $1,948,713
Forecast Net Result -$933,430
Forecast Budget Change (from current): operating cost increase of $218,054
Ratepayer Contribution: $1,453,712 (75%)
User Contribution: $495,000 (25%)
This model will increase operating costs and have a negative impact on Council’s overall financial position.
7.6 Model 6: Contracted Service
Description
This model involves transferring responsibility of service delivery to third-party provider under a contract. This includes engagement of a third-party industry expert to manage the day to day running of the facility, subsequently managing the costs to Council. In this model, Howlong Pool could be packaged together with Corowa Aquatic Centre in a management contract, providing further efficiencies for Council.
Advantages
• Reduce pressure on Council internal services required to run the facility – Human Resources, IT, Communications, Payroll, Finance etc.
• Free up Council staff to focus on other priorities and core services.
• Centre would be run by industry experts that have larger support systems for the day-to-day management of the facility through their head office, management systems and pool of staff resources.
• Contractor may bring along existing customers to the facility and region.
• A contractor is more likely to have economies of scale for purchasing power of essential chemicals, equipment, supplies and maintenance.
Disadvantages
• Council may lose some influence of services and programs delivered if not adequately addressed in the management contract.
• Contractor fees vary and can be expensive.
• Council cannot discharge its obligations with regards to risk and liability and this will need to be managed appropriately under the contract.
• The performance of the contractor will need to be monitored to ensure they comply with their contractual obligations.
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• Impact on council’s facility management team to manage contract.
• Third party operator may not be as familiar with community and their needs & requirements.
To make this model a success Council would need to have well-defined tender specifications that outlines roles and responsible as well as have good contractor management systems in place. Regular communication and meetings would also be required with the contractor to ensure the contract is being implemented as specified.
Roles & Responsibilities
Council will have the ability to define the role and responsibilities of the third-party contractor under the contract and contract specifications.
Below provides an example of how Council could define the roles and responsibilities under this contract model:
Council responsibility:
• Plant room maintenance >$1,000 value
• Building maintenance
• Asset renewal
• Loan and depreciation costs
• Contract fees
• Tender specifications – defining roles, responsibilities, requirements, opening hours, seasons, fees, and charges
• Contractor management
• Income received from special rate variation (SRV) to contribute towards overall operating costs
Contractor responsibility:
• Staff wages
• Staff management
• Recruitment, induction, and training
• Ground maintenance
• Facility and pool cleaning
• Pool sampling
• Operating pool vacuums
• Plant room operations and maintenance
• Plant maintenance <$1,000 value
• Supply of chemicals
• Power, water, gas, rates
• Promotions and marketing
• Revenue generated from entry fees, programs, and contractor fee
If this model is selected, Council would be seeking a professional organisation to manage the facility. This organisation should have the capacity and internal resources required to make the centre a success. Usually this is a head office with HR, IT and Training support with a network of regional and state managers.
Financial Sustainability & Budget Forecast
This model is expected to include minimal wage costs for council, however would instead include contractor management fees.
Forecast Income = $520,283 (Special Rate Variation)
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Forecast Expenditure = $1,025,175
Forecast Net Result = -$504,893
Forecast Budget Change (from current): operating cost reduction of $210,483
Ratepayer Contribution: $1,025,175 (100%)
Note: Contractor would receive the income (user fees) generated at the centre. The contractor fees included in the forecast expenditure is estimated to be at the higher end of current market estimates which range between $30,000 - $60,000 per month. For this model the fee has been calculated at $55,000 per month. There is the possibility that the expenditure could be less with this model if the results of a tender process achieve a more competitive contract price.
This model will assist to manage operating costs and the overall financial position of Council.
7.7 Model 7: Consolidated Service
Description
Consolidate public swimming pool facilities provided across the Federation LGA. This includes permanent closure of one or more seasonal pools in the Federation LGA, reducing costs to Council.
Advantages
• Opportunity to reduce staff resources required to manage these facilities.
• Opportunity to reduce operating costs.
• Reduce impact on Council’s overall financial sustainability.
• Free up Council staff to focus on other priorities and core services.
• This model could be in conjunction with other service delivery models.
It is recognised in the industry that the below skills are needed for successful management of year-round and multipurpose aquatic facilities:
• Specific aquatic industry skills and experience;
• Strong entrepreneurial and marketing skills to plan, organise and coordinate a diverse range of programs;
• Technical skills to operate specialist pool plant and equipment;
• Customer service and sales skills to satisfy user needs and encourage customers to return or sign up to membership; and
• Financial, staff management and administrative skills to coordinate daily activities.
Generally, councils are not industry experts and don’t always have the necessarily skills, capability, and resources to manage the operations of such facilities. This is where industry experts such as third-party contractors can fill this gap.
Disadvantages
• Loss of an important community asset(s).
• Negative impact on social, health and wellbeing of the local community
• Loss of services provided to Urana, Oaklands and/or Howlong residents.
• Negative impact on liveability and viability of these townships.
Roles & Responsibilities
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All aspects of the service provided under Council’s direct management, including staff management, training, recruitment, rostering, lifeguarding, providing programs such as aqua aerobics and learn to swim, running the canteen, risk assessments, operational procedures, emergency management, pool, and plant room operations. Council maintains direct control of service delivery.
Financial Sustainability & Budget Forecast
This model is expected to see a $200,000 savings from the close of 3 x seasonal pools.
Forecast Income $970,283
Forecast Expenditure $1,485,658
Forecast Net Result -$515,376
Forecast Budget Change (from current): operating cost reduction of $200,000 due to the closure of Urana, Oaklands and Howlong Pools
Ratepayer Contribution: $1,035,659 (70%)
User Contribution: $450,000 (30%)
Note: income & expenditure remain unchanged (same Model 1) for Corowa Aquatic Centre. Savings to the overall Council budget come from the reduction in other council services.
This model will assist to improve the overall financial position of Council, including ongoing asset management costs with closure of seasonal pool facilities.
8. Discussion
The current service delivery model (Model 1) is not sustainable and a new approach is required. To optimise financial performance of the facility, council has less flexibility with certain operational costs which are driven by the market forces and/or legislation, such as chemicals, equipment, energy, maintenance, and the Local Government Award conditions, pay rates and penalties. Council has more flexibility with the factors such as the service delivery model, opening hours, timing of seasons, staff structure, resources, and rostering. These factors have been taken into consideration when assessing the above service delivery models.
Models 1 (As Is), 2 (Programmed), 3 (Tiered Supervision), 4 (Reduced Hours) and 5 (Increased Hours) propose to retain council with direct management of the centre; model 6 (Contracted) includes contracting the management of the centre to a third-party operator; and model 7 (Consolidated) involves the closure of the three seasonal facilities at Howlong, Oaklands and Urana. Model 3 (Tiered Supervision) requires Council to work with its insurer to undertake a risk assessment and put in appropriate procedures for the successful implementation of a low supervision mode.
Models 2 (Programmed), 3 (Tiered Supervision), 4 (Reduced Hours), 6 (Contracted) and 7 (Consolidated) include opportunity to reduce operating costs and overall net result. However, none of the models outlined above bring the operating result into alignment with original intention of SRV which included users contributing to 47% of the operational costs and ratepayers 53%. This review can help manage the financial performance of the facility; however, council will need to continue to find further efficiencies with the operation and management of the facility. The challenge for Council is to ensure ongoing service that meets community expectations but in a more financially sustainable way than it is currently.
Keeping the service in-house will ensure that council can retain direct influence over how this service is deliver to the community as well as the brand and creatives that council has put a lot of effort into developing. It will also continue to require internal resources to support the management of the facility such as Facility Management, HR,
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IT, Customer Service, Communications, Finance and Payroll. While there has been success with this in the last 2 years, it is recognised the pressure this puts on staff and the indirect impact it has on other services of council.
Contracting the service to a third-party operator (Model 6) comes with the risk of losing a sense of ownership or connection and will require planning with well-defined tender specifications and good contractor management to ensure the operator delivers the council’s and community’s expectations. There are third-party operators that have existing footprint in our region (Aligned Leisure and Belgravia) and have the necessary industry expertise and capability to take-on Corowa Aquatic Centre and implement new standards for management and operation of the centre. There may be the option to include Howlong Pool in the management contract, creating further efficiencies. Lead in time of for this model would be at least 12 months to adequately prepare and undertake for the tender process and transitional arrangements.
It is recommended that any savings realised from a future service delivery model are put towards the following:
1. Investment in additional solar to reduce running costs of the facility; and/or
2. Reinvest back into the facility that will improve the customer experience (such as shade, BBQ, additional seating, water station etc.); and/or
3. Directed to support delivery of other services across council.
9. Recommendation(s)
The two preferred models for further consideration and community consultation are:
1. Models 3 (Tiered Supervision); and
2. Model 6 (Contracted Service)
It is recommended that Council undertake a period of public exhibition and community engagement regarding the Corowa Aquatic Centre service review to seek feedback on the two preferred service delivery models before a final decision is made about the future service delivery model.
It is further recommended that engagement activities include both broad community consultation and targeted sessions with stakeholders. Engagement activities proposed include:
• Community survey – available online and hard copy;
• Community drop-in sessions at Corowa, Howlong, Mulwala, and Urana; and
• Stakeholder session with the Corowa Aquatic Centre Advisory Committee.
The proposed next steps are as follows:
1. Council endorsement of the two preferred models for public consultation – Council Meeting 27 June 2023
2. Community consultation and engagement activities - July 2023
3. Collate feedback from community engagement – August 2023
4. Council to consider community feedback and determine future service delivery model – Council Meeting 26 September 2023
5. Preparation and implementation of service delivery model – post October 2023
10. References
Internal:
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• Corowa Aquatic Centre Business Plan 2022/23 – 2025/26
• Council Report June 2022 Council Meeting – Corowa Aquatic Centre First 12 Months Operational Summary & Review
External:
• Albury City Council Aquatic Strategy Updated Options Final Report June 2017
• Bathurst Regional Council Scoping Study for New Aquatic Centre Bathurst Volume Three – Final Report –Facility Options Site Review & Business Plan August 2005
• Greater Shepparton Seasonal Pools Review and Strategy
• Loddon Shire Swimming Pools Improvement Plan 2018-2022
• Moira Shire Council Aquatic Facilities Strategic Review 2018-27 Draft
• Office of Local Government Practice Note 15 – Water Safety
• Port Macquarie Hastings Council Aquatic Facilities Strategy Draft Strategy Report January 2019
• Royal Life Saving Australia - Guidelines for Safe Pool Operations (membership required for access).
• Sunshine Coast Aquatic Plan 2011- 2026
11. Attachments
Attachments to this report include:
1. Summary of Each Service Delivery Model
2. Service Delivery Financial Modelling
NOTE: This is a controlled document. If you are reading a printed copy, please check that you have the latest version by checking it on Councils Electronic Document system. Printed or downloaded versions of this document are uncontrolled
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