Frankston City Council Centenary Park Sporting Complex Management and Business Model Review Forum 16th August 2016
Project Aims To develop a sustainable model in which Golf, Tennis and Gymnastics can be co-located to maximise participation, to minimise on-going operational costs and provide opportunities to host key events To establish the needs of each user group and to establish what common facilities each group has that could be shared and what standalone facilities are required. To also identify common operational times and all operational times of each group To investigate/develop a scenario/s as to how pro-shops/retail and café/kiosk could be developed to ensure ongoing operational costs are kept to a minimum and income maximised To link council strategies and policies to ensure continuity of outcomes Benchmarking of similar facilities to ensure sustainable fees and charges, innovative design options, and the success of each sport
Aerial view of site
Centenary Park Sports Complex Area Component Detail Users M2 Functional Details/Other Golf Range Range and ball sales, golf retail, repairs Golf Course 200m2 Reception and including workshop Operations Professional Shop Golf Course and Reception and Retail Golf Course Reception and Retail Area Centre Management and Front of House Front of House Area Meeting and Function Spaces Shared Meeting and Function Facilities Area Administration Offices Golf Course Toilets and Change Rooms Common Foyer/Reception Office off Reception Administration Workspace Meeting Rooms Golf Range Operations with combination of to be determined open plan for work stations and 2 lockable offices Male and female Amenities providing change area, toilets and showers and providing for disabled etc. Common printers, copier and office admin 2 x 10m x 10m meeting rooms that can serve as club spaces during competitions plus storage (20m2 room). Has moveable doors to open up as one space or separate as 2 spaces. Golf Course Operations Golf Course Operations 50m2 130m2 380m2 Off foyer and easy to see from car park and located with vision to first tee Located adjacent to pro shop All 100m2 Ground floor entry Centre Management Centre Management Tennis has priority access to room facing tennis courts. 20m2 20m2 140m2 240m2 Located to service spike bar, course users and management staff Located behind reception Located off reception office. Located off foyer for easy access but once site layout determined need to place one towards golf course and one towards tennis courts Function Room 200 people capacity function room All 250m2 Located off foyer for easy access. Bar and kitchen located centrally to serve to function room and also café/bar Function Room Store Area for storage of furniture All 40m2 Off function room Kitchenette Centrally located off function room and meeting rooms to enable food and beverage to be served independent of the café/spike bar All 15m2 Off function room with moveable doors to secure and open up as required. 545m2 Subtotal Page One 1,065m2
Centenary Park Sports Complex Area Component Detail Users M2 Functional Details/Other Food and Beverage Retail Areas Café and Kitchen including two way bar servery to function room Café/bar to seat 60 people with layout linked to foyer and main activity areas.100m2) Food preparation area including servery and cool store and dry store (130m2) Café office/administration area (20m2) all 250m2 Café serves off foyer and located to service outdoor paved area located between golf and tennis areas Food and Beverage Retail Areas 250m2 Public Amenities Male and Female Amenities Located adjacent to café and meeting/function spaces all 150m2 Located close to amenities and social area Public Amenities Area Cleaners Store Located next to public amenities Centre management 30m2 Located close to amenities Gymnastics Centre Gymnastics Hall Area 36m x 31m = 1,116m2 Gymnastics 1,116m2 Located off main building circulation 180m2 Gymnastic offices Two offices 4m x 5m (20m2) Gymnastics 40m2 Gymnastics Storage Allowance Gymnastics 40m2 Amenities and Change Internal amenities and change area for gymnastic participants Gymnastics 100m2 Entry Foyer Allowance Gymnastics 30m2 Gymnastics Centre Area 1,326m2 Tennis Club Office Tennis Club Office Main office 8m x 5m Tennis 40m2 Tennis Club Administration Area Storage Allowance Tennis 40m2 80m2 Plant Rooms and Services Communications Room Telecommunications and IT Centre Management 20m2 Dry Plant Room Allowance Centre Management 100m2 Plant Room and Services 120m2 Area Page 2 Total Area 1,956m2 Page 1 Total Area 1,065m2 Total Internal Building Area 3,021m2 Circulation Allowance Connecting activity areas Allowance 12% of total internal floor area 365m2 Approx. Total Estimated Internal Building Development Area 3,386m2
Frankston City Council Golf Course Maintenance Contract Management Golf Course Management and Green Fees Club Representatives Tennis Court Casual Rental and Professional Hire Reference Group Independent Management Food/Beverage and Retail Services Council Appointed Facility Asset and Landscape Maintenance Management Golf Club Golf Practice Facilities and Retail Tennis Gymnastics Club licensed use of club facilities and Golf Course access for members at set fee times Golf Professional Contract Club leased use of Tennis Courts and Club Facilities Club lease of Gymnastics Centre and Licensed use of Club Facilities
Management Model Potential Overview FCC to set up club representatives reference group. FCC negotiates lease for Tennis Club use of the tennis courts and a license for rights to use the club lounge and function areas. FCC negotiates lease for Gymnastics Club use of the gymnastics centre and a license for rights to use the club lounge and function areas. FCC negotiates a license for the Golf Club to have golf course priority use tee rights as well as use of the the club lounge and function areas. FCC to tender rights to provide golf teaching/professional services including merchandising at the practice golf driving range and pro-shop. FCC to appoint an independent management group to manage the club and function facilities, pro-shop, golf course, tennis courts and gymnastics centre. Independent management group to set up staffing and management based on key operational requirements and agreed operating hours.
Key Business Units Proposed operating model is based on: Management operating all public use/bookings of the golf course, tennis courts (outside of club time) retail and food and beverage services and event and function areas. Tennant clubs controlling facilities during their licensed time of use. Management tendering out the rights for golf lessons, coaching, specialist golf retail and driving range management and operation. Management operating a licensed club including bar and club lounge open 7 days a week with meals available in the lounge, bar, golf shop café and function and meeting rooms. Management to install a tenant club card loyalty scheme so clubs can share an agreed portion of profit from bar and lounge areas based on sales generated from members and their visitors. Management controlling all asset maintenance, repairs and renewals.
10 Year Business Model Key Guiding Assumptions Key business profit and loss centre s developed for the 10 year model include: Local tennis, golf and gymnastics having priority use and licensed time to use facilities. Outdoor tennis court casual hire for the unused court time. Golf course green fees and regular-use passes sold from the pro-shop that also offers café and golf and tennis retail area. Function and event facilities including function room, meeting and multiuse spaces (490m2). Bar/lounge area that operates 11am to 9pm most days with priority clubs able to share in up to 15% of operating profits subject to member sales. Contract management model that is paid a management fee for operating all facilities. Mix of full time, part time and casual staff to operate facilities.
Proposed Management and Staffing Structure CENTRE MANAGER (FULL TIME) Budgets/Financial Control HR and Staffing Marketing / Promotions Reporting / Business Monitoring Asset Maintenance/Management RETAIL SERVICES CO-ORDINATOR (FULL TIME) Golf Course Green Fees / Competition Pro Shop Sales / Food / Beverage Hire of Tennis Courts CLUB EVENTS AND FUNCTION CO-ORDINATOR (FULL TIME) Club Bar and Meals Area Events and Functions Retail Assistant 1 (Full Time) Retail Assistant 2 (Full Time) Retail Assistant 3 (Full Time) Bar Staff (Part Time & Casual) Kitchen/Catering (Part Time & Casual) Events & Functions Staff (Part Time & Casual) FRANKSTON CITY COUNCIL Golf Course Maintenance Surrounds / Car Park Maintenance Asset Management and Maintenance
Key Operating Hours Management Assumptions Area November to April May to October Total Base Hours to be Staffed Golf and Tennis Pro-shop Open 6am to 7pm daily 91 hours/week x 26 weeks = 2,366 hours/yr Open 7am to 5pm daily 70 hours/week x 26 weeks = 1,820 hours/yr 4,186 hours/year Club Bar and Lounge Open 11am to 9pm weekdays/sunday and 11am to 10pm Saturday. 71 hours weeks x 26 weeks = 1,846 hours/yr Clubs to also support with volunteers Open 11am to 8.30pm weekdays/sunday and 11am to 10pm Saturday. 68 hours weeks x 26 weeks = 1,768 hours/yr Clubs to also support with volunteers 3,614 hours/year Events and Function Spaces Part time and casual staff as booked Part time and casual staff as booked As booked Golf Practice and Driving Range As tendered with golf professional As tendered with golf professional As tendered
Potential Benefits to Tenant Clubs Benefit Frankston Tennis Club and Frankston East Tennis Club Bayside Gymnastics Club Centenary Park Golf Club Free Access to meeting and function rooms exclusively 4 times per week The Bar area will be open and staffed 11am to 9pm on most days and all members will have access Yes Yes Yes Yes Yes Yes Profit Share on bar sales Yes Yes Yes No maintenance responsibilities for building assets Yes Yes Yes Reduced utility charges and responsibilities Yes Yes Yes No requirement for volunteers to staff the bar or kitchens Yes Yes Yes Agreed tee times locked in via a license agreement Not Applicable Not Applicable Yes
Clubs and Tenant Lease and License Details Club or Tennant Annual Year 1 Lease Fee Function and Meeting Rooms Access Dedicated Facilities Provided Operating Costs Responsible For Profit Share from Bar and Lounge Golf Club $30,000/yr and then CPI increases Free access 4 times per week Office space Storage Phone/internet Profit share based on member sales Gymnastics Club $60,000 yr 1 increasing to $120,000 by year 4 and then CPI increases Free access 4 times per week Office space Storage Phone/internet. Gymnastic hall cleaning and equipment maintenance Power for lights in gymnastics hall. Profit share based on member sales Tennis Club $30,000/yr 1 and then CPI increases Free access 4 times per week Office space Storage Phone/internet. Power for lights at tennis courts when using. Net maintenance Profit share based on member sales Golf Professional (lease of driving range). $40,000/yr 1 and then CPI increases All access paid for Driving range and retail area Phone/internet Power for driving range lights Nil
First Draft Business Model Priority Use Clubs Key Business Assumptions in relation to priority licensed clubs include: Tennis and Gymnastics have agreed leased use of tennis courts and gymnastics centre and set licensed use of the meeting and function areas. Golf has priority tee access to the golf course and set licensed use of meeting and function areas. All three sports will be provided with office and administration areas. Centre management controls all golf course bookings, casual tennis court hire (outside of agreed club licensed times) retail areas, function and event facilities and bar and lounge areas. Centre management will set up a local club member loyalty record keeping system and local clubs can receive a share of up to 15% of function and events and bar/lounge profits subject to club member sales. Centre management will have rights to contract out professional golf coaching and operation of the golf practice and driving range facilities as well as partner a golf professional in golf retail merchandise and sales.
10 Year Operating Model Net Contribution Years 1 to 10 Category Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Tennis Courts. Casual Hire $13,985 $16,028 $17,697 $18,956 $20,272 $21,647 $22,544 $24,029 $25,007 $26,019 Golf Course Function & Events ($54,616) ($18,721) $7,939 $24,429 $41,877 $60,323 $66,947 $87,135 $94,793 $102,797 ($970) $7,817 $14,361 $18,434 $9,270 $13,366 $14,570 $11,636 $12,800 $14,010 Café and Merchandise $9,750 $18,728 $25,035 $28,499 $25,596 $29,188 $22,881 $26,541 $26,929 $27,321 Bar and Lounge ($31,830) ($19,155) ($11,818) ($10,155) ($8,470) ($6,763) ($11,326) ($9,707) ($14,618) ($19,779) Rental and Leased Areas $95,080 $125,782 $136,497 $152,227 $167,864 $171,221 $174,645 $178,138 $181,701 $185,335 Total Operating Result $31,400 $130,477 $189,711 $232,390 $256,409 $288,983 $290,260 $317,773 $326,611 $335,703 Less Management Costs $112,464 $115,346 $118,306 $121,346 $124,468 $127,674 $130,967 $134,348 $137,822 $141,390 Projected Centre Operating Profit/(Loss) ($81,064) $15,131 $71,405 $111,044 $131,941 $161,309 $159,294 $183,424 $188,789 $194,314
10 Year Operating Model Annual Revenue Revenue Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Tennis Courts. Casual Hire $43,035 $45,735 $48,077 $50,025 $52,046 $54,143 $55,778 $58,021 $59,773 $61,578 Golf Course $1,022,314 $1,086,446 $1,142,099 $1,188,356 $1,236,366 $1,286,192 $1,325,035 $1,378,304 $1,419,928 $1,462,810 Function & Events $265,544 $282,078 $296,399 $308,270 $320,588 $333,366 $343,290 $356,943 $367,572 $378,518 Café & Merchandise $276,300 $290,725 $302,592 $311,730 $321,113 $330,746 $337,361 $347,449 $354,398 $361,486 Bar and Lounge $530,670 $558,377 $581,167 $598,719 $616,740 $635,242 $647,947 $667,322 $680,668 $694,282 Rental and Leased Areas $160,080 $192,082 $204,123 $221,206 $238,222 $242,986 $247,846 $252,803 $257,859 $263,016 Total Operating Income $2,297,943 $2,455,443 $2,574,457 $2,678,306 $2,785,073 $2,882,675 $2,957,256 $3,060,841 $3,140,198 $3,221,690
10 Year Operating Model Annual Expenditure Expenditure Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Tennis Courts. Casual Hire $29,050 $29,707 $30,380 $31,069 $31,774 $32,496 $33,235 $33,991 $34,766 $35,559 Golf Course $1,076,930 $1,105,168 $1,134,160 $1,163,927 $1,194,489 $1,225,869 $1,258,088 $1,291,169 $1,325,136 $1,360,013 Function & Events $266,514 $274,262 $282,037 $289,836 $311,317 $320,000 $328,720 $345,306 $354,772 $364,508 Café & Merchandise $266,550 $271,997 $277,557 $283,231 $295,517 $301,558 $314,480 $320,908 $327,469 $334,165 Bar and Lounge $562,500 $577,532 $592,986 $608,874 $625,209 $642,004 $659,273 $677,029 $695,287 $714,061 Rental and Leased Areas $65,000 $66,300 $67,626 $68,979 $70,358 $71,765 $73,201 $74,665 $76,158 $77,681 Total Operating Expenditure $2,266,543 $2,324,966 $2,384,746 $2,445,915 $2,528,665 $2,593,692 $2,666,996 $2,743,068 $2,813,587 $2,885,987 Undistributed Management Costs $112,464 $115,346 $118,306 $121,346 $124,468 $127,674 $130,967 $134,348 $137,822 $141,390 Total Expenditure $2,379,007 $2,440,312 $2,503,053 $2,567,262 $2,653,132 $2,721,366 $2,797,962 $2,877,417 $2,951,409 $3,027,376
Review of Recommended Management Model Seek feedback from clubs on management model and key responsibilities. Complete review forum with FCC Councilor's and Officers Update management model and financial models in line with agreed feedback from FCC and clubs. Confirm final facility component brief. Complete final report Clubs to review final report and discuss with members. FCC to develop draft heads of agreements between council and each club to allow further project planning and funding strategy to be developed.