A report by the Surf Coast Aquatic and Leisure …...packages and fitness services, such as group exercise classes and personal training. Members and those interested in gym and fitness

A report by the

Surf Coast Aquatic and Leisure

Centre Taskforce

to Surf Coast Shire Council

August 2014

Contents 1. Executive Summary ..................................................................... 3

1.1 Introduction ............................................................................................. 3

1.2 What we learnt ........................................................................................ 4

1.3 Options examined ................................................................................... 6

1.4 Financial analysis .................................................................................... 8

1.5 Recommendations ................................................................................ 10

2. Taskforce process & methodology ............................................ 11

3. Background research ................................................................ 14

3.1 Updated demographic profile ................................................................ 14

3.2 Health and wellbeing benefits – literature review .................................. 23

3.3 Facilities planned or operating in the region.......................................... 24

3.4 Local facilities – privately owned and operated gymnasiums/swimming pools ................................................................................... 26

4. Benchmarking data ................................................................... 28

Bellarine Aquatic and Sports Centre – City of Greater Geelong .............. 29

Blue Water Fitness Centre – Colac Otway Shire ..................................... 29

Benalla Aquatic Centre – Shire of Benalla ............................................... 29

Wonthaggi Aquatic Centre – Bass Coast Shire........................................ 30

5. Potential scenarios – 1, 2 and 3 ................................................ 31

6. Financial model of potential scenarios ....................................... 33

7. Funding sources ........................................................................ 36

8. Recommendations .................................................................... 38

List of Attachments ......................................................................... 39

Attachment 1: Taskforce terms of reference ............................................... 40

Attachment 2: Health and wellbeing benefits – a literature review .............. 43

Attachment 3: Local environment scan – local facilities .............................. 46

Attachment 4: Benchmarking data .............................................................. 49

Attachment 5: Financial model by SGL Consulting Group .......................... 56

Attachment 6: Credentials of Kate Maddock, Director SGL Consulting ...... 57

Attachment 7: Map of Community & Civic Precinct and potential centre on nominated parcel of land ..................................................... 58

1. Executive Summary Following a Council resolution in July 2013, a Taskforce was established to provide guidance, input and advice to Council on the potential for a Surf Coast Aquatic and Leisure Centre. This report outlines the Taskforce’s approach, the information gathered, the analysis performed and the Taskforce’s recommendations to Council. 1.1 Introduction Investigations into the construction of a swimming pool complex on the Surf Coast began in the late 1950’s with a group of passionate locals from the Torquay Life Saving Club. The original idea was for a saltwater tidal pool to be built near the current Life Saving Club next to Spring Creek. The then Victorian Public Works Department examined this proposal and deemed the project inappropriate at that time. Since then several other committees have come together at various times to pursue the development of a public pool complex. In the last decade three feasibility studies, the most recent in 2009, have been commissioned to investigate whether a pool would be viable, the design of an appropriate Aquatic/Leisure facility, and the cost to build and operate a facility. All three studies suggested re-investigating again in 3-5 years. In 2013 Council appointed a “Taskforce” to review the 2009 feasibility study. The Taskforce membership included community members and councillors. The Taskforce was asked to • Advise and contribute to the development of an Action plan that outlines a process of

advocacy for a Surf Coast Shire Aquatic and Leisure Centre. • Provide advice to Council on a number of options for consideration in the development

of such a facility, including the comparison with other “like” facilities based on similar size demographic catchments as Surf Coast Shire.

• Conduct a review of the 2009 Feasibility Study, updating new circumstances or change since 2009 that would impact on such a facility.

Information gathered from many other Victorian Shires with aquatic/leisure facilities has been of significant benefit in helping the Taskforce decide what constitutes a well-designed, well operated and well patronised centre. We include this important information in our report to Council.

Surf Coast Shire Aquatic & Leisure Centre Taskforce Report Page 3

1.2 What we learnt Victorian Councils general position The Taskforce found that generally speaking, and through the benchmarking exercise, aquatic facilities are expensive to construct and operate but that Councils generally accept these costs as part of a suite of community services. Councils historically choose to invest in these kinds of centres across the board because of the benefits they deliver in the health, wellness and education of the community and in providing local employment opportunities. Revenue need Successful facility models typically include components of leisure and adventure, fitness and education, health, wellness and hospitality. How these are prioritised in the planning and construction will affect the performance of the centre. It was noted that developing income streams that can partially offset operating losses is imperative in the delivery of a sustainable facility. It was noted that income streams such as learn to swim programs provide significant income at high margins. Many other centres drive strong margins from memberships with attractive membership packages and fitness services, such as group exercise classes and personal training. Members and those interested in gym and fitness services are unlikely to be the primary users of the centre, as the main users of such centres use them for recreation, leisure and adventure purposes. Regardless, building and retaining memberships are important in the delivery of a viable and successful financial model for the Centre. Geographical location of Aquatic Centre The Taskforce questioned the plan of the 2009 traditional model and whether it would effectively transpose onto the parcel of land set aside for a future aquatic and leisure centre at the Community and Civic Precinct. It was decided that careful planning and design would be required to adequately accommodate a Centre on this site. The 2009 facility design was reviewed as inadequate based on the knowledge acquired around effective elements which contribute to a successful facility. Grant Funding The Taskforce also found that grant funding is available for this type of project at State and Federal level. The scale of external grant funding varies, apart from an annual funding pool under the State Government’s Better Pools funding program. Further investigation would be required to ascertain realistic levels of available funding. It should also be noted that while some Councils have been successful in securing Federal grant funding, these Centres and Council advocacy programs are possibly operating within a unique set of circumstances. Company limited by Guarantee In its investigation of governance and management of successful centres, the Taskforce noted an emerging trend for local Councils to establish separate entities known as companies limited by guarantee for the purposes of running their centres. Maintenance A number of centres built between 1990 and 2010 are experiencing higher than predicted demand and facility design problems. Some Council’s compromised facility design to manage development costs. These Councils have then needed to expand/redevelop their facilities at a very significant cost. With the predicted growth in the Surf Coast Shire Municipality, the Taskforce considers it imperative that any facility built in this region must be designed to accommodate increased demand.


Favourable demographic factors in the catchment include a very physically active community, advantageous age profile and increasing population in high use age groups. Health & Wellness Potential The link between poor health and diet and lifestyle is now well established, with some studies suggesting that over 70% of medical costs are due to four entirely controllable factors (tobacco use, physical inactivity, food choices and poor stress management). In recent years health coaching has increased in popularity as a means of supporting people to take more responsibility for their own health. (Blair, SN British Journal of Sports Medicine, 2009 (43) p 1-2; Booth F, et al, J Applied Physiology 2002; 93 (1) 3-30; Booth, et al, J Applied Physiology 2000,88 (2) 774-787). Development of Health and Wellness aquatic models is a growing trend. Such models provide consulting rooms, gymnasium and exercise studios, massage and beauty services and warm hydro-pool programs and associated health relaxation areas such as spa/saunas. In conjunction with a hydro pool and consulting and meeting rooms, exercise & relaxation classes can dovetail with specialist rehabilitation services to facilitate management of joint and muscle problems and cardio-respiratory disorders and head injury/stroke rehabilitation. These models also have potential for provision of relaxation classes, including yoga, to people with depression and anxiety.(translate into dot points) The Taskforce believes that an aquatic facility based on a health and wellness model would provide significant opportunities for partnerships with various organisations that have client bases requiring health and wellbeing services, in particular insurers (e.g. the Traffic Accident Commission, WorkCover and private health insurers) and Barwon Health. We noted that private health insurers are very interested in their clients using such facilities to better manage their chronic diseases and so reduce hospital admission rates. Healthy diet is central to a Health and Wellbeing Centre philosophy. There is the opportunity to ensure all food providers in the centre adhere to healthy eating principles as well as proving attractive locations to socialise.


1.3 Options examined The Taskforce sought to understand what makes a modern aquatic centre successful and concluded that it would include four main components, namely Leisure and Adventure, Fitness and Education, Health and Wellness and Hospitality. This mix of components is then factored into the design and drives the key outcomes for the facility. The Taskforce also looked at features like wave pools and water slides and concluded that the capital cost of these would be cost prohibitive to this project. The Taskforce then examined three models of aquatic centre that could be tested for feasibility in the Surf Coast context these being:

• a traditional centre (Scenario 1) • a health and wellness centre (Scenario 2) and • small footprint centre (Scenario 3)

The traditional centre The traditional model (Scenario One) is the model that was assumed in the 2009 feasibility study and incorporates an indoor 25m 8 lane pool, leisure water, gymnasium, allied health consulting suites, crèche, café, change rooms and office /administration area. The health and wellness centre The Health and Wellness model (Scenario Two) includes the traditional model and adds features consistent with Council's health and wellness strategic vision including 200m2 of consulting suites to support allied health activities and a warm water pool,. The small footprint centre The Small Footprint model (Scenario Three) reduces the 25m pool from 8 to 6 lanes and the program /leisure pool from 356m2 to 250m2, and deletes the crèche and one program room. The Taskforce identified that an entity structure that separates management and governance of the centre from general council operations and establishes a skills-based board of governance would be beneficial. This structure was assumed for the subsequent financial scenario modelling of all three scenarios As the role of the Taskforce did not include designing a centre, the model identified in the 2009 feasibility report was selected as the base case and starting point. Throughout the process, the Taskforce gathered information about health and wellbeing and used these data and evidence to build the second scenario by including and incorporating health and wellness components. The community profile information assisted in identifying the health and wellness scenario. The third scenario was largely developed by looking at the financial material provided by the consultant and deciding how to provide a more “modest” centre for Council’s consideration. The Taskforce did consider other variations of a proposed scenario such as linking a centre with an indoor court stadium, include a major attraction such as a wave pool and a spa-type format, but finalised the three scenarios as stated and linked these three scenarios with financial information to enable an understanding of the costs of building and operating such centres. Preferred Model Scenario 2 (Health and Wellness model) is the Taskforce’s preferred model because it:

• optimises the balance between operating cost and revenue; • incorporates the elements that maximise user attraction; • has better potential to attract government capital funding; • may have potential to attract capital funding from the health and wellbeing

sector;


• has capacity to meet future demand, and • is consistent with Council's health and wellness strategic vision.


1.4 Financial analysis SGL Consulting created financial models for the three facility scenarios. These are based on a model developed and owned by SGL Consulting. It has been tried and tested on dozens of aquatic projects over the past two decades having initially been developed for the Melbourne Sports and Aquatic Centre. The model was calibrated to:

• factor in Surf Coast’s circumstances (e.g. demographics) • reflect the three scenarios developed by the Taskforce • draw on the experience of benchmarked centres.

The following table extracted from the financial report provides a comparison of the three scenarios, specifically the average predicted operational performances over the first 10 years of the centre (2019-2028). In order to model the cost of capital the following development and constructions costs have been calculated by a Quantity Surveyor based on the 2009 design:

• Scenario One - $25.387 million • Scenario Two - $28.900 million • Scenario Three – Not available as no design has been developed. Anticipated to be

less expensive than Scenario One but it is not known by what magnitude.

Table.2.17 Facility Business Scenario - Average Annual Operating and Capital costs Comparisons

FACILITY STAGES

Scenario Scenario One –

Traditional Centre

Base Case (000)

Scenario Two – Health and Wellness Base Case

(000)

Scenario Three – Smaller Traditional

Centre Base case

(000) Revenue $2,391 $2,571 $1,979 Expenditure $2,564 $2,626 $2,399 Long Term Maintenance $70 $70 $70 Total Operating Performance ($244) ($124) ($490) Cost of Capital $1,634 $1,863 Not included TOTAL PROJECT COST EXCL DEPRECIATION ($1,878) ($1,989) Not Included

Depreciation $561 $661 Not included Total Project Cost Including Depreciation ($2,439) ($2,650) Not Included

*Figures in brackets represent negative figures The Taskforce’s preferred model – Scenario Two – Health and Wellness Centre presents a base case (i.e. not the conservative or optimistic case) which suggests that the average annual net cost to Council (excluding depreciation) will be $1.989 million, the majority of which ($1.863 million) is the cost of servicing a loan taken out to fund the construction of the facility. It is important to point out that the model is built on a large number of assumptions. The total project cost is particularly sensitive to the following assumptions:


Assumption 1 - Demand assumptions with a strong impact on the Total Operating Performance • Visitation rates including growth over the 10 years – base visitation rate drawn from

comparable centres (SGL experience) with growth factoring in projected population increases in the catchment (mainly Torquay North)

• Numbers of memberships - base rate drawn from comparable centres (SGL experience) • Number of learn to swim classes - base rate drawn from comparable centres (SGL

experience) Assumption 2 - Cost of capital assumptions

• The base design underpinning the capital cost estimations is from Council’s 2009 feasibility study. This design is no longer seen as the preferred design.

• The proportion of total development and construction costs borne by Council is modelled at 75%. This assumes the balance of capital contributions (25%) would be raised from other sources such as government grants or community fundraising.

• The term of the loan – 20 years • The assumed interest rate applied to borrowings – 6%

Assumption 3 - Assumed management model with a material impact on Total Operating Performance

• A company limited by guarantee model has been assumed The financial modelling outcomes were consistent with Taskforce industry observations that a minority of aquatic centres are able to balance income and expenditure on day-to-day operations, but no aquatic centre in a comparable setting is able to generate sufficient income to cover the costs of operations including maintenance, interest on borrowings and capital repayments. In most circumstances, income and expenditure on operations, including maintenance, result in a deficit. The Taskforce’s investigations have revealed that it is possible to minimise the operating losses that may be incurred in running a centre. The modelling suggests that the smallest operating loss would be experienced by Scenario Two - Health and Wellness Centre – with its broader range of attractions and sources of income. The largest operating loss would be experienced by Scenario Three – Smaller Traditional Centre – mainly as a result of a less attractive facility impacting on visitation rates. However, by far the largest modelled annual cost in providing an aquatic facility is the cost of capital. In Scenarios One and Two this makes up between 87% and 93% of the modelled annual net cost to Council.


1.5 Recommendations After an eight month review period, the Taskforce makes the following recommendations: 1. That Council notes there is compelling evidence that aquatic centres generate

significant community health and wellbeing benefits.

2. That Scenario 2 (Health and Wellness model) is the Taskforce’s preferred model because it: • optimises the balance between operating cost and revenue; • incorporates the elements that maximise user attraction; • has better potential to attract government capital funding; • may have potential to attract capital funding from the health and wellbeing

sector; • has capacity to meet future demand, and • is consistent with Council's health and wellness strategic vision.

3. That the modelled net annual cost to Council of developing and operating an aquatic

centre based on Scenario 2 is estimated to be $1.989 million (made up of $124k annual operating deficit and $1.863m borrowing costs). This is based on the modelled cost of developing the centre being $28.989 million with an assumed Council contribution of 75% ($21.7 million) and funds from other sources such as government grants and community fundraising being 25% ($7.2 million).

4. That Council undertakes a comprehensive community consultation process to

determine the level of informed community support for investing ratepayer funds in an aquatic centre.

5. That if there is community support in principle for investment in an aquatic centre: a. Council commissions the design of a facility that incorporates the

requirements of Scenario 2 and determines the estimated capital cost of that recommended model;

b. Council develops a comprehensive financial strategy designed to • minimise the financial impact on ratepayers. • maximise grants from both Federal and State Governments, • maximise major sponsorship contributions, and • maximise community fundraising efforts;

c. Council adopts a Company Limited by Guarantee structure for the facility.

6. That Council notes the desire and willingness of Taskforce members to continue to

provide guidance and advice in furthering the above recommendations.


2. Taskforce process & methodology The Taskforce was appointed by Council on 24 September 2013. The role of the Taskforce was to provide guidance, input and advice to Council on the potential for a Surf Coast Aquatic and Leisure Centre. The tenure of the Taskforce was for six months, however, Council agreed to extend this to eight months allowing for further research and finalise recommendations to Council. The Taskforce met seven times.

Key Findings:

• The Taskforce was established through an Expression of Interest process and appointed by Council at its 24 September 2013 meeting. The Taskforce included community members, a representative from the Audit and Risk Committee and Councillors with support by relevant officers.

• The Taskforce met (7) times for a two hour duration to review information and discuss the potential for the development of such a facility in accordance with its terms of reference.

• The Taskforce is made up of serving councillors and community members representing a range of interests who have volunteered their time and local knowledge and provided information and constructive advice during this eight month period.

• The role of the Taskforce has been to provide advice to Council on a number of options for consideration including comparison with other “like” facilities based on similar size demographic catchments to Surf Coast Shire.

• The Taskforce sought expert advice around financial modelling for such a centre based on three models and three scenarios and considered all the information provided.

• The role of the Taskforce did not extend to design and planning for a centre, nor to secure funding for a centre.

• The Taskforce completed its work in August 2014.


The Taskforce consists of 10 members comprised of serving Councillors and community members. The Taskforce members are: Council Members: Cr Brian McKiterick (Chair) Cr Eve Fisher Cr Heather Wellington Cr Margot Smith Community Members Colin Fowler Janice Jessen Melissa Field (Surf Coast Shire Audit and Risk Committee representative) Tim Denton Joe Diffen Tristan Read SCS Staff Chris Pike, Director Community Janice Lane, Manager Leisure and Wellbeing Dee Johnson, Social Planner. Taskforce Meetings & summary of meeting agenda Meeting Date Meeting Agenda

# 1 30 October 2013 Terms of Reference

Benchmarking data collection Proposed work plan

# 2 4 December 2013 Population profile and defining the catchment area Presentation by Dee Johnson, Social Planner

# 3 30 January 2014 Guest speakers from City of Greater Geelong – Bellarine Aquatic & Leisure Centre & Colac Otway Shire – Blue Water Fitness Redevelopment Draft Consultant’s brief for financial modelling

# 4 30 April 2014 Draft financial model – presentation and discussion by Kate Maddock, SGL Consulting

# 5 21 May 2014 Review financial model Review draft report Discussion conclusions and recommendations

# 6 11 June 2014 Draft conclusions and recommendations

#7 - 6 August 2014 Finalise conclusions and recommendations Accept the final financial model report Prepare briefing and report to Council in September.


Taskforce members from left to right: Cr Heather Wellington, Janice Jesson, Melissa Field, Cr Eve Fisher, Chris Pike(SCS), Cr Brian McKiterick, Janice Lane (SCS), Joe Diffen, Tim Denton and Tristan Read. Absent: Cr Rose Hodge, Cr Margot Smith and Colin Fowler.


3. Background research

3.1 Updated demographic profile The Taskforce reviewed and updated the population profile of Surf Coast Shire and sought to review the population trends based on .id forecasting from now until year 2031. This chapter updates the information provided in the previous 2009 feasibility report and provides some commentary around catchment size and the likely population pockets that could potentially use such a facility. Over a five year period, the population of Surf Coast Shire has grown from 24,064 to 28,282 in 2013. The population is forecast to grow to 44,787 by 2031. Population details, growth patterns and activity surrounding the townships are important material that provides a scenario of both growth and potential growth.

Key Findings:

• Population profile Surf Coast Shire is one of the fastest growing municipalities in Victoria. Between 2012-2013 it was the fourth fastest growing municipality in regional Victoria growing by 2.9%. The population forecast is to grow to 44,787 by 2031.

• Future trends The number of people aged less than 40 years in the base Torquay catchment area will increase from 9,187 in 2013 to 15,477 in 2031. This figure is important as typically that age group is the most active when using such facilities. The forecast predicts most population growth to appear in Torquay /Jan Juc area and that more than 10,000 additional people are expected in the Torquay North area by 2031.

• Catchment analysis The 2009 report was based on a catchment of 17,500 growing to about 36,700 in 2031 and defined the primary catchment within a 14km radius including a part of the Armstrong Creek area.

The catchment definition was revisited in 2014 and some changes were made based on the availability of new information: - benchmarking of indoor sporting facilities coupled with leisure and

sporting facility trends generally indicate that local or municipal recreation or sporting facilities have a primary catchment radius of 5km-8km and a secondary catchment radius of 10km. Given this benchmarking detail, the base Torquay catchment area in 2014 is defined as Torquay/Jan Juc/Bellbrae/Bells Beach. This is estimated to be 19,780 in 2016, 23,958 in 2021 and 31,321 in 2031.

- Armstrong Creek is no longer included in the catchment as a new factor of significance has emerged since the 2009 report was completed. There is now a planned aquatic facility for Armstrong Creek. While part of Armstrong Creek may form part of the catchment until/if an Aquatic Centre is built (anytime ten years onwards), the users could not be relied on in the future.

• Strengths and weaknesses of the population catchment analysis are also

identified in this report.

Surf Coast Shire Aquatic & Leisure Centre Taskforce Page 14

3.1.1 Surf Coast Shire population overview The Surf Coast Shire, with its beach, bushland and rural environment, is located in south-western Victoria, 120km from Melbourne, 21km south of Geelong and close to the extended Geelong Ring Road. The Surf Coast Shire is a popular destination for intra and interstate holiday makers, international visitors, or those looking to make a permanent sea change. The Shire includes the townships of Aireys Inlet, Anglesea, Deans Marsh, Fairhaven, Jan Juc, Lorne, Moriac, Torquay and Winchelsea and a significant rural population including farming and rural residential communities. Surf Coast Shire map

Key points: • Surf Coast Shire is one of the fastest growing municipalities in Victoria • between 2012-13 it was the fourth fastest growing municipality in regional Victoria, growing

by 2.9% • in 2013 Surf Coast Shire’s population was 28,282. This is the latest available official figure

from the Australian Bureau of Statistics and is called the Estimated Resident Population. • the population is estimated to be 29,247 in 2014 (Forecast .id)

the permanent population has grown from 20,556 in 2001 • the population is forecast to grow to 44,787 by 2031, representing a 58% change 2013-31 • 7,632 new households are forecast between 2011-2031 • in 2013 61% of the Shire’s permanent population live in Torquay/Jan Juc/Bellbrae/

Bells Beach and this is forecast to grow to around 70% in 2031 • the major drivers of strong forecast growth include:

- the high amenity lifestyle including the natural environment - the large pool of baby boomers entering retirement age - improved access with opening of Geelong Ring Road - proximity to Geelong and Melbourne and for a variety of services and social,

educational and employment prospects for all age groups - limited development capacity in other Victorian coastal areas within two hours of

Melbourne for residential development (e.g. Mornington Peninsula) also increases Surf Coast Shire’s attraction for traditional city to coast retirement

- Armstrong Creek will impact on Surf Coast Shire demand (Source: forecast .id) • part time populations and peak populations are also significant including holiday home

owners, seasonal visitors, event populations and day trippers • the Shire’s peak overnight population (estimated on a peak night such as New Year’s Eve)

December 2012/January 2013 was estimated at 83,654 (Economic Indicators Bulletin Geelong)


Figure 1: Total population, Surf Coast Shire and Torquay Catchment area, 2001-2031

Source: 2001 not available for Torquay catchment area. Surf Coast Shire: 2001 Estimated Resident Population, Australian Bureau of Statistics, Cat. No. 3218.0, Regional Population Growth, 2013. All data 2006 onwards - .id Consulting and .id Forecast Data note: forecasts are only as good as the assumptions they are based on, and .id works closely with the Council to ensure detailed information about current and planned residential development activity. The forecasts are however updated on a rolling cycle to take into account changes in the real world, such as economic factors that may impact on the pace of development and population growth (forecast .id). Figure 2: Peak Population all towns, Surf Coast Shire, December 2012 - January 2013

*Estimated for a peak holiday night such as New Year’s Eve Data notes: The data should be considered indicative only however as it is not directly comparable to other population data in this paper for the following 2 reasons: 1.City of Greater Geelong undertake their own permanent population estimates in the smaller areas in 2012 to allow comparison with peak data for the 2012/13 season. 2. Definitions of areas/methodology differs from those in figures using the .id Consultant data.

20,55622,803 26,513

31,374

36,214

40,89644,787

12,24315,570

19,78023,958

28,006

31,321

0

10,000

20,000

30,000

40,000

50,000

Surf Coast Shire

Torquay Catchment area

Permanent Population 2012

Peak Overnight Population *

Permanent to peak multiplier

% of Shire permanent

% of Shire peak

Torquay/Jan Juc/Bellbrae/ Bells Beach 15,447 36,257 2.3 57.5 43.3 Aireys Inlet/Fairhaven/Moggs Creek 1,052 8,060 7.7 3.9 9.6 Anglesea 2,487 14,739 5.9 9.3 17.6 Deans Marsh 336 831 2.5 1.3 1.0 Lorne and District 1,499 15,954 10.6 5.6 19.1 Winchelsea (and Winchelsea South) 2,238 3,112 1.4 8.3 3.7 Surf Coast Rural Towns 3,807 4,701 1.2 14.2 5.6 Total Surf Coast Shire 26,866 83,654 3.1 100.0 100.0


http://forecast.id.com.au/surf-coast/residential-development?

http://forecast.id.com.au/surf-coast/residential-development?

3.1.2 Torquay catchment Population SGL Consulting Group note:

• Leisure and sporting facility trends and benchmarking generally indicate that local or municipal recreation or sporting facilities have a primary catchment radius of 5km and a secondary catchment radius of 10km. In general approximately 75% to 85% of users will reside within a 0km to 5km radius of a facility with the remaining 15% to 25% coming from areas within the 5km to 10km radius of the facility.

• in rural areas these catchments may be slightly larger depending on the distribution and availability of facilities and the secondary catchment may extend to up to 20km particularly for people wishing to access specific programs such as learn to swim, squad training and therapy based classes.

Figure 3: 2009 Surf Coast Aquatic and Leisure Centre Feasibility Study Catchment Mapping Source: (Sport and Leisure Solutions, Final Report Surf Coast Shire, Aquatic Leisure Centre, Feasibility Study, Surf Coast Shire, 2009) Based on this definition, the Torquay catchment area within approximately 10km of Torquay includes Torquay, Jan Juc, Bellbrae and Bells Beach. Figure 4 represents the closest match of readily available Census and forecast geographies/data within the 10km radius from Torquay. The only population not captured by this methodology is about 200 people in the Freshwater Creek area and about 250 in Breamlea area, so analysis of Torquay, Jan Juc, Bellbrae and Bells Beach (as defined by this map) is a good representation of the catchment. Figure 4: Torquay Catchment area Torquay-Jan Juc-Bellbrae-Bells Beach Source:.id forecasts


Torquay catchment population characteristics Figure 5: Total Population, Torquay/Jan Juc/Bellbrae/Bells Beach area, 2011-2031

2011 2013 2016 2021 2026 2031Total

Change 2013-31

Av annual % change 2013-31

Torquay North 6,112 6,818 7,986 10,792 14,476 17,660 10,842 5.43

Old Torquay - Torquay West

4,882 5,354 6,286 7,146 7,508 7,696 2,342 2.04

Jan Juc - Bellbrae - Bells Beach

4,576 4,946 5,508 6,020 6,022 5,965 1,019 1.05

Torquay Catchment area 15,570 17,118 19,780 23,958 28,006 31,321 14,203 3.41

Surf Coast Shire 26,513 28,275 31,374 36,214 40,896 44,787 16,512 2.59

% Shire's population in the catchment

59% 61% 63% 66% 68% 70%

Key points: • The Torquay catchment (within approximately 10km of Torquay) includes Torquay,

Jan Juc, Bellbrae and Bells Beach and had populations of 15,570 in 2011 and about 17,000 in 2013.

• The population of this Torquay catchment area is forecast to increase to about 28,000 in 2026 and 31,000 in 2031(including 29,300 in the Torquay/ Jan Juc township).

• A 3% average annual dwelling growth rate is forecast for the Torquay-Jan Juc township through to 2031, averaging about 345 dwellings per year.

• A 3.4% average annual population growth rate is forecast for the broader Torquay catchment area through to 2031 averaging around 800 people per year.

• There will be an increasing share of the Shire’s population in the catchment area over the next 15 years, increasing from 61% in 2013 to 70% in 2031.

• Other potential catchment populations: - Armstrong Creek: consideration was given to inclusion in the catchment area of

part of Armstrong Creek’s forecast growth (areas closer to Torquay than Leisurelink). Any facility may draw users from this area, however an aquatic centre is planned for Armstrong Creek anytime ten years onwards, so these users could not be relied on in the future.

- Anglesea: consideration was given to inclusion of Anglesea in the catchment area. While any facility would draw some users from Anglesea particularly for specific programs, this population’s usage could not be relied on or easily estimated as it falls well outside the 10km catchment, located about 20kms from Torquay. Anglesea’s population is 2,522 in 2013 with little growth forecast through to 2031 and an older age profile than the primary catchment.

• Inclusion of part time populations in the catchment was considered, however capturing detailed data on these populations is difficult and it is unclear how these translate into usage of an aquatic facility. More evidence would be required to include peak population data in the catchment.


Source: id Consulting Forecast. http://www.surfcoast.vic.gov.au/My_Council/Population_Information 3.1.3. Age Profile Torquay catchment

Figure 6: Forecast 5 year age groups, Torquay/Jan Juc/Bellbrae/Bells Beach area, 2013-2031 (Source: .id Consulting Forecast)

Key points: • The Surf Coast Shire age structure in 2011 included a larger than regional Victorian

and G21 Region average proportion of ‘primary schoolers’ (0-11) and 'parents and homebuilders' (35 to 49 year olds) and a smaller proportion of ‘tertiary independent’ and ‘young workforce’ (18 -34 year olds) and people in the 70 years and over age groups.

• The Torquay/Jan Juc/Bellbrae/Bells Beach area (base Torquay catchment) between 2013 and 2031 shows growth across all age groups, including strong family growth, which is unusual for a regional area where ageing populations are the norm.

• The most active users of aquatic facilities are aged up to 40 years. • The number of people aged less than 40 in the Torquay catchment area increases

from 9,187 in 2013 to 15,477 in 2031. • The proportion of people aged less than 40 however decreases from 53.7% of the

population to 49.4%. This reflects the fact that despite the attraction of the catchment for young families, the catchment population is still ageing.

• With significant growth in the “baby boomers” over 50s and 60s the industry is re-visiting this population usage profile. They represent however smaller numbers than the under 40 year olds in the base Torquay catchment area.

• In Torquay/Jan Juc/Bellbrae/Bells Beach area the number of people 65 years and over will increase from 2,011 in 2013 to 4,517 in 2031 reflecting baby boomers ageing in place and in migration of those seeking coastal retirement.

• The proportion of people aged 65 years and over will increase from 11.7% of the base Torquay catchment area population in 2013 to 14.4% in 2031.

1,306 1,3491,186

1,001848 919

1,146

1,432 1,493

1,221 1,1691,057 980

752497

338224 200

2,162 2,2132,102

1,841

1,519 1,438

1,866

2,336 2,438 2,4312,303

2,1911,962

1,541

1,211

855

554356

0

500

1,000

1,500

2,000

2,500

3,000

5 year age groups, Torquay/Jan Juc/Bellbrae/Bells Beach area

2013-2031

2013

2031


Figure 7: Number of people under 40, Torquay/Jan Juc/Bellbrae/Bells Beach area, 2013-2031 Source: id Consulting Forecast. http://www.surfcoast.vic.gov.au/My_Council/Population_Information Older population Figure 8: Number of 55 and 65 years and over Torquay/Jan Juc/Bellbrae/Bells Beach area, 2013-2031 Source: .id Consulting Forecast. http://www.surfcoast.vic.gov.au/My_Council/Population_Information

9,187 12,512 15,477

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2013 2021 2031

Num

ber o

f peo

ple

Number of people under 40 years, Torquay/Jan Juc/Bellbrae/Bells Beach area,

2013-2031

40 years and over

under 40 years

2,011

3,038

4,5174,048

5,940

8,670

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2013 2021 2031

Number of people aged 55 years and over/65 years and over, Torquay/Jan Juc/Bellbrae/Bells Beach area,

2013-2031

65 years and over

55 years and over


3.1.4 Other population characteristics Figure 9: Indicators of physically active community

Figure 10: Individual weekly gross income, Torquay/Jan Juc/Bellbrae/Bells Beach area, 2011

IndicatorSurf Coast Shire Victoria Year Source

People who met physical activity guidelines 69.8% 63.9% 2011-12

Department of Health , Victorian Population Health Survey 2011/12

Sedentary behaviour (sitting ≥7 hours per day) 28.0% 32.6% 2011

VicHealth Indicators Survey 2011,http://www.vichealth.vic.gov.au/Research/VicHealth-Indicators/LGA-Profiles.aspx

Key points: • the community is active, with a higher proportion in the Surf Coast Shire compared with

Victoria for people meeting physical activity guidelines; • there is a lower proportion than the Victorian average of people in the Shire with sedentary

behaviour; • higher income levels are a positive indicator in terms of ability to pay for services provided

at an aquatic centre; • income levels in the Torquay/Jan Juc/Bellbrae/Bells Beach area are higher than Surf Coast

Shire overall, G21 Region and Victoria; • there is a higher proportion than comparison areas earning $1,000 a week or more and a

lower proportion earning under $400 a week; • transport access to any facility is important; 91% of households in Surf Coast Shire in 2011

have one or more vehicles representing a higher proportion than the Victorian average; • linkages with public transport will also be an important issue that will need to be addressed

if an aquatic centre is developed in Torquay.

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

% o

f pop

ulat

ion

Individual weekly gross income, proportion of population (15 years and over) in each income bracket,

Torquay/Jan Juc/Bellbrae/Bells Beach and selected comparison areas, 2011

Torquay catchment areaSurf Coast ShireVictoria


Source: Australian Bureau of Statistics, Census of Population and Housing 2011. Usual residence count (see glossary) Profile.id 3.1.5 Strengths and Weaknesses of the Torquay catchment Strengths

• a very physically active community that is likely to result in a high usage of aquatic and leisure facilities and visits per capita;

• the age profile of the catchment with 53.7% of residents aged less than 40 in 2013; this is the demographic that are the most active users of aquatic facilities;

• forecast growth particularly in Torquay North will enhance future viability; • increasing share of Surf Coast Shire’s population in catchment area forecast through

to 2031; • higher income levels for residents in Torquay / Jan Juc and therefore a greater

capacity to pay for these services; • increasing numbers of older residents correlate with trend to use aquatic facilities by

this age group. Weaknesses

• a smaller than ideal catchment size that will require a substantial annual subsidy; • proximity to Leisurelink Waurn Ponds; • planned Aquatic Centre in Armstrong Creek; • strong forecast growth based on continuation of current trends; actual growth rates

may vary due to unforeseen changes in economic, social or demographic trends.


3.2 Health and wellbeing benefits – literature review A literature review was undertaken to understand contemporary thinking and policy decisions around building and operating such facilities. The Taskforce focused on the health and wellbeing benefits of such a facility to enhance their learning and understanding of how such a facility could further develop community’s mental and physical health. See Attachment 2 for literature review information

From the research so far, the literature review shows that: • Aquatic and Leisure Centres are important places for play, fitness and recreation

and are valued by communities. • Swimming as a physical activity for recreation and /or fitness purposes is an

attractive recreation activity and there is some evidence to suggest that swimming can help assist in early childhood development.

• There are communities who are building centres that combine the aquatic and recreation components along with specific health and wellness components and planning for facilities that are integrated into place based thinking such as precincts - retail areas, close to schools and so on.

• The data appears rich in explaining the health and wellness benefits of such centres, people join for fitness and health reasons rather than just recreation reasons.


3.3 Facilities planned or operating in the region Surf Coast Shire resides within the G21 (Geelong 21) region. As one of the fastest growing municipalities in the region, providing infrastructure and community services for a growing population is a high priority for Council. It was important to know what is currently operating within the G21 region and what facilities may be planned for the future horizon. The Taskforce was presented with information from City of Greater Geelong regarding their Bellarine Aquatic and Sports Centre located in Ocean Grove and was also presented with information from Colac Otway Shire regarding their Blue Water Fitness Centre redevelopment program. The City of Greater Geelong (COGG) as its nearest neighbour already has 4 indoor aquatic facilities and 2 outdoor aquatic centres in its local government area. These facilities are all owned and operated by COGG. Of interest are the two closest to the largest residential population in Surf Coast – the township of Torquay and Jan Juc. COGG opened the Leisurelink Centre in Waurn Ponds in 2010. Its membership and catchment extends beyond its municipal boundary and around 670 Surf Coast Shire residents are members of Leisurelink. The Bellarine Aquatic facility was also of interest to the Taskforce members, particularly the cost of the inclusion of an aquatic component into the facility. A number of factors led to the comparative low construction cost of the aquatic component, including pre-existing Administration facilities, crèche, storage, small gymnasium and civil works (e.g. car parking, electricity and gas). Officers from COGG advised that having this basic and shared infrastructure already in place provided a less expensive option when including an aquatic component into their facility. They also acknowledge favourable market conditions allowing for a more competitive pricing for these facility extensions.

Key Findings:

• City of Greater Geelong has 4 indoor and 2 outdoor Aquatic and Recreation facilities with Leisurelink in Waurn Ponds being the closest facility to Surf Coast Shire around 15 km from the Community and Civic Precinct and 7.5km from the Torquay township border.

• There is evidence of local membership from Torquay / Jan Juc area to the Leisurelink Centre in Waurn Ponds.

• Over the next 10 years, the City of Greater Geelong is planning an integrated civic and culture complex including an Aquatic Centre within the new Armstrong Creek area. This new centre will be located around 5.5km from the Torquay township border.

• The Bellarine Aquatic Facility in City of Greater Geelong incorporated aquatic facilities including a 25m pool that was built onto a pre-existing 2 x court stadium at a cost of $8.4m in 2008.

• The Blue Water Fitness Centre re-development in Colac – Otway Shire demonstrated the capacity of a local government to attract a range of funding sources that complimented other community facilities occurring in a major precinct called “The Beechy project” in the township of Colac. The cost to redevelop the Centre is $12m and includes a 3 x court stadium. This centre is 80km from the Torquay township border.


COGG is also planning and has commenced the release of land blocks for new residents in the area called Armstrong Creek. Features of the Armstrong Creek growth area are as follows:

• There is provision of housing for between 55,000 and 65,000 people and approximately 23,000 residential homes.

• It is anticipated that the growth area will be fully developed within 15-25 years depending on regional and state housing growth rates.

• The East and Horseshoe Bend Precincts will each house around 30% of the population, the West 24% and the remaining 15% in the Town Centre and Marshall Precinct.

• The East Precinct is forecast to have a population of around 17,000. The West Precinct is forecast to have a population of around 14,000.

A planned Aquatic Centre in Armstrong Creek At this stage it is difficult to make any definitive statements in relation to the proposed aquatic centre in Armstrong Creek. What is known is:

• 2.7ha of land has been set aside in the Armstrong Creek Town Centre Precinct Masterplan for a combination of uses- an integrated Civic and Culture Complex/Aquatic Centre and indoor stadium.

The Structure Plan indicated an Indoor Aquatic Centre 5175 sqm, 25m pool, gym, administration and amenities.

• The information provided so far is indicative only and the exact details, configuration and land allocation for each use is subject to change and will be determined through a further planning process – sub precinct Masterplan.


3.4 Local facilities – privately owned and operated gymnasiums/swimming pools

The Taskforce wanted to explore the local environment, specifically in the townships of Torquay and Jan Juc, with a focus on the aquatic, fitness, health and wellbeing sector. Local participation statistics are difficult to find, however, there was general acceptance from the Taskforce that a large number of local residents are physically active and participate in a number of activities relating to physical and mental health. A local environment scan of privately owned and operated gymnasiums and swimming pools was undertaken as part of the Taskforce activities. In Torquay/Jan Juc, there are four privately owned and operated swimming pools, three of which are connected with 4-5 star rating accommodation. Membership is available for non- visitors and membership prices vary according to each different centre. A smaller Torquay Aquatic Swim Centre also exists providing swim lessons and classes. In the township of Winchelsea, Council operates a seasonal swimming pool from December 1 to March 31 each year. The pool usually attracts around 8,000+ participants over this period, however as a seasonal outdoor pool, patronage is weather dependant. In the township of Lorne, a privately operated unheated swimming pool exists on the foreshore and is open for the peak summer season. Efforts have been made to heat the outdoor pool, however, external grant funding has not been available. A point of interest worth noting is that in the last ten years, 661 building permits were issued for swimming pools in private properties across the Shire. A more localised breakdown is not known.

Key Findings:

• In Torquay/Jan Juc there are four privately owned and operated swimming pools. Three of these are connected with 4-5 star rating accommodation.

• In Torquay/Jan Juc, there are sixteen known private providers of fitness/physical activity services.

• Surf Coast Shire operates the Surf Coast Sport and Recreation Centre in the Surf City Precinct and has a joint use agreement with Surf Coast College for a purpose-built stadium for indoor sporting activities located close to the Community and Civic Precinct.

• As part of the Masterplan for the Community and Civic Precinct, there are long term plans to provide a three court stadium close to a new Primary School within the Community and Civic Precinct boundary at the time of writing this report. This infrastructure is proposed for 2018/2019 and 2019/2020 financial year based on development contributions and therefore the timeline may vary depending on the rate and extent of residential growth.

• There has been an increase in the number of independent fitness providers allowing for more casual access to fitness centres which may have an impact on market share for local government owned and operated centres.


No further benchmarking within the region has been undertaken specifically targeting personal and private fitness provision. The Centres operated by City of Greater Geelong (COGG) provide for fitness services and it was noted that these services are a key contribution to the attraction and operating success of their centres. (See Attachment 3 for local environment scan)


4. Benchmarking data The Taskforce reviewed a number of centres that are located within similar size population catchments to Surf Coast Shire. In addition, the Taskforce sought further information from City of Greater Geelong and from Colac Otway Shire who are within the G21 region. From the benchmarking exercise, the information can be summarised as follows: The Taskforce consulted with their nearest local government neighbours to find out more about constructing and operating an Aquatic and Leisure Centre facility, these were Bellarine Aquatic and Sports Centre in City of Greater Geelong and the Blue Water Fitness Centre in Colac Otway Shire. A high level review of around 23 centres was undertaken. In addition, the Taskforce sought other information from similar sized local government areas such as Wonthaggi in Shire of Bass Coast and Benalla in Shire of Benalla that would further their knowledge of facilities with a similar catchment & population size. A number of facts about these centres include:

Key Findings:

• Each council enters into these developments for a multitude of reasons; however, there is agreement that these community facilities provide a range of holistic benefits.

• Each council accepts that there will be large operating costs associated with running such facilities and whilst these expenditure items are considered losses on a profit and loss statement, they are regarded as part of the suite of community service activities. There is however, some evidence of larger centres that do break even. Staff salaries are the major expense associated with operating these centres.

• Each council has been successful to some extent in attracting State and in some instances Federal government funding, which supports the capital development.

• Each council nominates its gymnasium or dry program area as its net revenue raising stream whereby the aquatic or wet areas are more expensive to operate in overall net terms.

• Each council plans for renewal and capital development and the ongoing upkeep of such facilities needs to be factored into long term budgets and capital works programming.

• Councils vary on providing in-house management models or contracted service models. Of the 23 centres benchmarked against, 10 centres were contracted to a service provider such as YMCA Victoria or Belgravia Leisure. YMCA Victoria continues to be the main contractor for such services.

• Each council recognises the growth in personal training and the growth of the self-help type facility such as Jetts, and that these services and facilities can take some market share from what otherwise would be potential markets for a council-owned and operated centre.


Bellarine Aquatic and Sports Centre – City of Greater Geelong

• The population of City of Greater Geelong is 221,515 however the likely catchment population for this centre is 44,000.

• The dry program area (stadium) was built in 1991 and the aquatic extensions built in 2008 at a cost of $8.4m.

• The aquatic extensions were funded through State Government Better Pools funding program of $2.5m with Council contributions.

• The Centre attracts around 550,000 visits per annum and learn to swim classes are the most popular with around 110,000 visits per year. These are regarded as the major success and key business driver.

• The Centre’s operating performance attracts a net loss of $600k per annum to Council.

Blue Water Fitness Centre – Colac Otway Shire

• The population of Colac Otway Shire is 20,694, however the catchment population for this centre is approximately 15,000 people from a 30-50km radius.

• The Centre is currently undertaking a $12m re-development including a 3 court ball court stadium, new gymnasium and program rooms, and a new 12m x 9m warm water pool, a splash pad with revamped entry, reception and office area.

• The Centre has attracted a range of government funding including a $3m plus election commitment made in 2010, $2.8m commitment through the Federal Government’s Health and Hospitals Fund and over $3m funds from various funding programs offered through the State Government. These funds have been attracted over a number of years providing the financial commitment to the building’s extension.

• The Centre attracts around 150,000 visits per year and has more than 1,100 members.

• The Centre’s operating performance attracts a net loss of $460,000 per annum. Benalla Aquatic Centre – Shire of Benalla

• The population of Benalla is 13,719 and the urban area is 8,922. • The development of the indoor pool was driven by community advocacy. • The Benalla community raised $500k to enable receipt of grants through the State

Government totalling $2.2m. • The nearest centre to Benalla was 50km away in the township of Wangaratta. • The majority of member and participants come from within a 20km radius. • YMCA Victoria operates the centre on behalf of Council.


Wonthaggi Aquatic Centre – Bass Coast Shire

• The population of Bass Coast Shire is 31,010 and the Wonthaggi urban area is 6,876.

• Council is currently undertaking a feasibility study into upgrading the aquatic facilities that were initially built in 1979 and then redeveloped in 1986.

• 56% of members attend from Wonthaggi and 20% attend from Inverloch which is approximately 12km away.

• The major user population groups are older adults and teenagers/children under 15 years of age for learn to swim programs.

• The Health and Wellness component of the facility attracts the most members. • YMCA Victoria operates the centre on behalf of Council.

(See Attachment 4 for benchmarking information)


5. Potential scenarios – 1, 2 and 3 In revisiting the feasibility study, the Taskforce explored the relative attractiveness of three different scenarios for aquatic centres:

1. Traditional scenario – this was the model presented in the 2009 feasibility study. 2. Health and Wellness scenario – this is the same as the traditional model – but with

the addition of a warm water therapy pool and health consulting suites. 3. Small footprint scenario – this model is a much smaller footprint. Key differences

included: 6 lane pool, smaller learn to swim pool, no crèche, no gymnasium area. For each of these three scenarios, the taskforce then explored the contemporary financial modelling of centre performance on 3 bases – “ Base Case”, “Optimistic Case” and “Conservative Case”.

Key Findings:

• The traditional scenario incorporates an indoor 25 m pool x 8 lanes, leisure water, gymnasium, allied health consulting suites, crèche, café, change rooms and office/administration area. This type of centre is expected to operate at an annual operating deficit from year 1 to 10 and the updated Quantity Surveyor (QS) report provided a cost update of $25,386m. Caution should be exercised when reviewing the QS report as there are a number of exclusions from this report.

• The Health and Wellness scenario includes the traditional model and incorporates 200m2 of consulting suites to support allied health activities and a warm water pool. The inclusion of a health and wellness component increases the capital cost of a facility between $3.5m and $3.6m. The inclusion of a warm water pool allows for the provision of additional therapy and rehabilitation programs and the use and hire of the pool by external health providers. This scenario assumes that the consulting suites are leased to an external provider. Facilities designed in this manner are the most successful and are most likely to limit capital and capital replacement costs rather than ongoing operating costs.

• The smaller scenario is a less expensive option reducing the 25m pool lanes from 8 to 6 lanes, reduction in program/leisure pool from 356m2 to 250m2, deletion of crèche and reduction in program rooms from two to one, and a reduction in area size from 196m2 to 150m2. Council is currently advocating for a Torquay North Early Years Hub which would be situated within the Community and Civic Precinct boundary and therefore this new Hub could provide the crèche option for members and participants of a centre.

Scenario 2 (Health and Wellness model) is the Taskforce’s preferred model because it: • optimises the balance between operating cost and revenue; • incorporates the elements that maximise user attraction; • has better potential to attract government capital funding; • may have potential to attract capital funding from the health and wellbeing


The Taskforce identified that the most attractive governance and management model for the operation of a centre, regardless of centre scenario was using an entity structure that separated the owning and operating, management and governance of the centre out from general council operations, for example within a “company limited by guarantee” structure. This structure assumed for subsequent financial modelling of all three scenarios.


Financial models for each of these three scenarios were created by SGL Consulting. The date supporting underlying operating cost and revenue assumptions in the models were drawn from SGL’s extensive industry experience as to the costs of operating Aquatic centres and the typical revenue scenarios. Material assumptions underpinning revenue and demand data was further compared by the Taskforce against relevant benchmark aquatic centres to ensure that projected centre revenues were reasonable. Based on the outputs of the modelling, the Health and Wellness scenario was identified as the most cost effective model to operate. The results of the financial modelling for the Health and Wellness scenario were also reflective of the observed industry fact that the best financial outcome that is being achieved from the operation of aquatic centres is that centres can operate to cover their annual cost of operations – and can contribute toward a small portion of their replacement cost (via depreciation) but that their owner (typically councils) must finance the lion’s share of the capital cost. As the role of the Taskforce did not include designing a centre, it selected the model identified in the 2009 feasibility report as its base case and starting point. Throughout the process, the Taskforce gathered information around health and wellbeing and used this data and evidence to build the second scenario by including and incorporating health and wellness components. The community profile information assisted in identifying the health and wellness scenario. The third model was largely developed by looking at the financial material provided by the consultant and deciding how to provide a more “modest” centre for Council’s consideration. The Taskforce did consider other variations of a proposed models such as linking a centre with an indoor court stadium or including a major attraction such as wave pool and a spa type model, but finalised the three scenarios as stated and linked these three models with financial modelling to help understand and appreciate the costs for building and operating such centres. Each model was presented with financial information based on a scenario categorised as Base Case, Optimistic and Conservative to provide financial comparisons over a ten year period. In addition, a revised Quantity Surveyor report provided information concerning the capital costs associated with building such a facility. Included in this information was a range of fees and charges based on industry benchmarking. Recently, both Frankston City Council and Wyndham City Council have embarked on redeveloping their major leisure centres. These councils are taking a different approach to centre management. Frankston City Council is building a new $49.7m Peninsula Aquatic and Recreation Centre (PRAC) and Wyndham City Council has combined the Wyndham Leisure and Events Centre, Werribee Sports and Fitness Centre and the Werribee Olympic Pool. Companies limited by guarantee have been established to operate these centres. Under Section 193 of the Local Government Act, Councils can undertake entrepreneurial ventures and may form or participate in the formation of a company provided they follow the risk assessment and approval process set out in the Act. Local Government ministerial approval may be required for these new entities. These companies will be initially funded and established by Council, but will operate at “arms length” and will be overseen by a Board of Governance who will appoint the CEO to manage the businesses.


6. Financial model of potential scenarios The Taskforce requested further information from a Consultant with expertise in financial planning and financial modelling for Aquatic and Recreation Centres. Council contracted the SGL Consulting Group to undertake this work. A financial report was provided to the Taskforce and consideration of a number of models including operating costs over a ten year period. The report provided:

Key Findings:

• General Aquatic Facility Trends A successful facilities model includes four main components:

Leisure & Adventure Fitness & Education Health & Wellness Hospitality.

This mix of components is factored into the design and construction of a facility and drives the key programming and development outcomes for a facility.

• Main Aquatic User Markets The trends suggest that the following ratios maximise participation and operations for such a centre.

60-70% - recreation, leisure and adventure 20-25% - fitness and training attractions 10-15% - education such as learn to swim and attractions for schools 10-15% - therapeutic attractions such as warm water and hydrotherapy.

• Facility Options Business and Financial Models

Three facility options were provided to the Taskforce for consideration based on a range of scenarios from Base case, Optimistic and Conservative circumstances. The models included:

• A traditional model based on the 2009 feasibility report • A Health & Wellness model incorporating a warm water pool and consulting

suites • A third model – revised aquatic and dry program areas spaces, deletion of a

crèche and inclusion of more water play areas.

• Cost of Capital The calculation for the cost of capital has been based on Scenario One only and is calculated at 6% of the capital cost, based on Council contributing 75% of the anticipated capital cost.

All other things being equal, the Taskforce identified the Health and Wellness scenario as the optimal centre scenario in terms of delivering the best operating performances and best meeting a variety of expressed community interest. Summary of Business Cases for Scenario 1, 2 & 3. The report focussed on providing the best available information for financial modelling and the understanding of the bottom line for Council’s consideration. As discussed, three scenarios were tested. These figures are predicted operational performance based on average per annum and exclude the cost of depreciation.


Financial Analysis: SGL Consulting created financial models for the three facility scenarios. These are based on a model developed and owned by SGL Consultingthat has been tried and tested on dozens of aquatic projects over the past two decades, having initially been developed for the Melbourne Sports and Aquatic Centre. The model was calibrated to:

• factor in Surf Coast’s circumstances (e.g. demographics) • reflect the three scenarios developed by the Taskforce • draw on the experience of benchmarked centres.

The following table extracted from the financial report provides a comparison of the three scenarios, specifically the average predicted operational performances over the first 10 years of the centre (2019-2028). In order to model the cost of capital the following development and constructions costs have been calculated by a Quantity Surveyor based on the 2009 design:

• Scenario One - $25.387 million • Scenario Two - $28.900 million • Scenario Three – Not available as no design has been developed. Anticipated to be

less expensive than Scenario One but it is not known by what magnitude.

Table.2.17 Facility Business Scenario - Average Annual Operating and Capital costs Comparisons

FACILITY STAGES

Scenario Scenario One – Traditional

Centre Base Case

(000)

Scenario Two – Health and Wellness

Base Case (000)

Scenario Three – Smaller Traditional

Centre Base case

(000) Revenue $2,391 $2,571 $1,979 Expenditure $2,564 $2,626 $2,399 Long Term Maintenance $70 $70 $70 Total Operating Performance ($244) ($124) ($490) Cost of Capital $1,634 $1,863 Not included TOTAL PROJECT COST EXCL DEPRECIATION ($1,878) ($1,989) Not Included

Depreciation $561 $661 Not included Total Project Cost Including Depreciation ($2,439) ($2,650) Not Included

*Figure in brackets represent a negative figure The Taskforce’s preferred model – Scenario Two – Health and Wellness Centre presents a base case (i.e. not the conservative or optimistic case) which suggests that the average annual net cost to Council (excluding depreciation) will be $1.989 million, the majority of which ($1.863 million) is the cost of servicing a loan taken out to fund the construction of the facility. It is important to point out that the model is built on a large number of assumptions. The total project cost is particularly sensitive to the following assumptions: Demand assumptions with a strong impact on the Total Operating Performance

• Visitation rates including growth over the 10 years – base visitation rate drawn from comparable centres (SGL experience) with growth factoring in projected population increases in the catchment (mainly Torquay North)


• Numbers of memberships - base rate drawn from comparable centres (SGL experience)

• Number of learn to swim classes - base rate drawn from comparable centres (SGL experience)

Cost of capital assumptions

• The base design underpinning the capital cost estimations is from Council’s 2009 feasibility study. This design is no longer seen as the preferred design.

• The proportion of total development and construction costs borne by Council is modelled at 75%. This assumes the balance of capital contributions (25%) would be raised from other sources such as government grants or community fundraising.

• The term of the loan – 20 years • The assumed interest rate applied to borrowings – 6%

Assumed management model with a material impact on Total Operating Performance

• A company limited by guarantee model has been assumed


7. Funding sources The Taskforce reviewed the possible funding sources for such a facility. The Victorian State Government under its Community Facility and Funding Program (CFFP) offers capital contributions on an annual basis. This grant program is known as the Better Pools program. Some councils have been successful in attracting Federal Government funding such as Colac Otway Shire, however, these kind of grants are not available through a recurrent program.

Key Findings:

• Council capital budget process Most councils provide both capital and operating expenses associated with such centres through their annual capital works and operating program. It was difficult to ascertain whether councils have put funds aside through a separate reserve fund or borrowed funds according to their needs. It can be assumed, however, that due to the cost associated with these types of facilities, many if not all councils have borrowed at some point to provide these facilities.

• State Government funding avenues – Better Pools Funding Each year the State Government can provide grant funding through this program, up to $3m on a $1: $1 basis. The Taskforce learnt, however, that the State Government is very interested in centres that have warm water or therapy type components and the provision of water play facilities which are considered important and emerging features for such centres.

• Federal Government The Federal Government typically does not provide recurrent funding for such centres, however, it was noted that Colac Otway Shire was successful in attracting funds through an election commitment and through the Health & Hospitals Fund in 2012.

• Crowdfunding or community fundraising There is some evidence of crowdfunding or community fundraising efforts that contribute to the overall capital build of such centres. For example, it was noted that the Benalla community raised $500k to enable receipt of grants through the State Government totalling $2.2m.

• Public / private partnerships These kinds of arrangements for both construction and operating were not found. The private entities / partnership providers typically associated with such facilities are through leasing and licence agreements for space i.e. café, consulting suites, swimming lane space for therapy usage etc. There was no known private partnership arrangement in the local government sector that contributed towards the capital cost of such a facility; however the Victorian YMCA has indicated interest in providing capital funds towards a centre development if a long term management contract can be established between it and the local council.


A new funding stream called the Strategic Sporting Infrastructure Program (SSIP) was noted, however, in the 2014/15 State Government budget papers. This is a grants program established to support the upgrade of existing sporting and recreational facilities and deliver new strategically important sporting facilities across Victoria. In the State Government budget papers $15million was allocated to the Bendigo Aquatic Centre and $8m for the Moorabbin Community Reserve projects. It appeared from the budget papers that these grants would enhance the facilities for major event attraction. This new funding stream may be a possible source of grant funding for local governments, however, it is not known if it is a once-off or a recurrent program. The Federal Government from time to time has also allowed for contributions toward capital projects, however it is less regular with funding rounds that the State government. The Taskforce heard from officers of Colac Otway Shire about the re-development of the Blue Water Fitness Centre. As part of this major upgrade, this Council was successful in attracting $2.8m funds through the Federal Government Health & Hospitals Fund for the 12m x 9m warm water pool. In addition, the Council attracted a Federal Government election commitment in the 2010 Federal budget for $3.8m towards the re-development. Local government authorities are the most reliable source of funds for capital and operating such facilities.


8. Recommendations At the end of an eight month period, the Taskforce concluded that:

After an eight month review period, the Taskforce makes the following recommendations: 1. That Council notes there is compelling evidence that aquatic centres generate

significant community health and wellbeing benefits.

2. That Scenario 2 (Health and Wellness model) is the Taskforce’s preferred model because it: • optimises the balance between operating cost and revenue; • incorporates the elements that maximise user attraction; • has better potential to attract government capital funding; • may have potential to attract capital funding from the health and wellbeing


3. That the modelled net annual cost to Council of developing and operating an

aquatic centre based on Scenario 2 is estimated to be $1.989 million (made up of $124k annual operating deficit and $1.863m borrowing costs). This is based on the modelled cost of developing the centre being $28.989 million with an assumed Council contribution of 75% ($21.7 million) and funds from other sources such as government grants and community fundraising being 25% ($7.2 million).

4. That Council undertakes a comprehensive community consultation process to

determine the level of informed community support for investing ratepayer funds in an aquatic centre.

5. That if there is community support in principle for investment in an aquatic centre: a. Council commissions the design of a facility that incorporates the

requirements of Scenario 2 and determines the estimated capital cost of that recommended model;

b. Council develops a comprehensive financial strategy designed to • minimise the financial impact on ratepayers. • maximise grants from both Federal and State Governments, • maximise major sponsorship contributions, and • maximise community fundraising efforts;

c. Council adopts a Company Limited by Guarantee structure for the facility.

6. That Council notes the desire and willingness of Taskforce members to continue to

provide guidance and advice in furthering the above recommendations.


List of Attachments Attachment 1 –Taskforce Terms of Reference Attachment 2 – Health & Wellbeing Benefits – a Literature Review Attachment 3 – Local environment scan – local facilities Attachment 4 – Benchmarking data Attachment 5 – Financial Model by SGL Consulting Group Attachment 6 – Biography of Kate Maddock, SGL Consultant Attachment 6 – Map of Community & Civic Precinct and potential centre on Nominated parcel of land.


Attachment 1: Taskforce terms of reference

Proposed Surf Coast Aquatic and Leisure Centre Taskforce

Terms of Reference – July 2013

Introduction A Feasibility Study for the Surf Coast Aquatic Leisure Centre was completed in November 2009 outlining a potential development plan and proposed costs associated with building such a facility in Torquay. A Taskforce will be established for a 6 month period consisting of Councillors, community members and representatives with specialist skills. The role of the Taskforce will be to update the current information and advice Council following a six month period. Role and Objectives The role of the Taskforce is to provide guidance, input and advice to Council on the potential for a Surf Coast Aquatic and Leisure Centre. The Taskforce will include a number of interested persons and specialists who will help guide the community participation in and around a proposed Surf Coast Aquatic and Leisure Centre. Advisory • Advise and contribute to the development of an Action plan that outlines a process of advocacy

for a Surf Coast Shire Aquatic and Leisure Centre. • Provide advice to Council on a number of options for consideration in the development of such a

facility, including the comparison with other “like” facilities based on similar size demographic catchments as Surf Coast Shire.

• Conduct a review of the 2009 Feasibility Study, updating new circumstances or change since 2009 that would impact on such a facility.

Communication • Facilitate and support effective communication processes between Council and the Taskforce. (Outside the Terms of Reference) • Design and planning of a unique Surf Coast Aquatic and Leisure Centre • Securing funding for a Surf Coast Aquatic and Leisure Centre • Advocating on behalf of Council without the full knowledge of Council. Membership The Taskforce will comprise of members representing the broad interests of the community and Councillors. • 3 Councillors, as determined by Council and Mayor as ex-officio member. • CEO or delegate • Up to 6 x members with a keen interest in this proposal and is a mix of (gender, age range and

place of residence, including specialist skills such as a financial accountant, a member from the local Residents association and a representative from the Surf Coast Aquatic Centre Action


Group).Three (3) members will be identified through an Expression of Interest Process and three (3) members will invited by Council

• The Taskforce will meet for six (6) months and report back to Council. • The Chair is appointed from within the Taskforce membership. • Other members may be co-opted onto the group as required to provide specific input and/or

expertise in regard to Aquatic and Leisure Centre development. • Meetings will be open to community members to observe, and participate / present by

arrangement with the Chair. Agendas and minutes of the meetings will be available to community members on request.

Roles & Responsibilities Representatives should have an interest and knowledge of an Aquatic and Leisure Centre: • Availability to attend regular meetings is essential; • Communicate effectively between community organisations they are representing, the Taskforce

and Council; • Participate in discussion and provide input and feedback to Council; • Convey the necessary information to the community/organisations they represent and to solicit

input and feedback on issues under discussion; • Act professionally as an the Taskforce member; • Respect confidentiality on specific matters that may be raised as part of the Taskforce’s agenda. Council Support The Taskforce will be supported by the Community Development Department and may invite specialists in various fields to participate on an as needed basis. Appointment Term of appointment for the Taskforce members will be 6 months. Process for Nominations/Registrations of Interest for Membership A combination of processes will occur for nominations/registration of interest for membership. • Council will determine the Councillor members at its 23 July 2013 Council meeting. • Three community positions will be advertised in the media seeking nominations and three will be

invited by Council. Membership Criteria Criteria used to determine community representatives will have regard to specialist skills and knowledge of the recreation facilities, gender balance, youth and cultural representations and seek to maintain and build upon a group voice that is broadly representative of the community. The nominations will be assessed by Council based on set criteria. The selection criteria will be developed by Council. Confidentiality and Publicity All agendas, reports, minutes and information provided to Taskforce members is regarded as confidential until formally endorsed or released to the public by Council. Any media releases/statements emanating out of the Taskforce are to be issued by Council. No individual member of the Taskforce is to make public statements on any topic under review by the Taskforce. Meeting Procedures The Chair for meetings of the Taskforce will be a nominated Councillor. Recommendations from the Taskforce to Council will be made by consensus.


Amendments to Terms of Reference Council may at any time, after consultation with the Taskforce, vary these Terms of Reference, or the Taskforce may recommend to Council variations to the Terms of Reference. Meeting Schedule The group will meet as agreed by Council and the Taskforce.


Attachment 2: Health and wellbeing benefits – a literature review 1) Government of South Australia, Officer of the Commissioner for Social Inclusion, April

2011 “The Parks Community Centre – A practical approach for the future”. In balancing community sentiment with ageing infrastructure, cost considerations and expected population growth in the area, the Plan for the new Parks Community Centre provides a clear vision for meeting the needs of the community now and in the future. This plan provides a practical example of linking recreation and sports hub with a health centre, library and community centre, residential and retail options.

2) Harvard Health Letter, November 2009, “ A Sport for all Seasons- Swimming has myriad physical and psychological benefits at almost any stage or state of life” In exercise, water is our natural ally. It lightens our load, stimulates our circulation, protects us from injury, and buoys our spirits. At the same time, it exerts just enough resistance to let us know we’re doing some work. For that reason, it’s no surprise that swimming is one of the most popular ways to retain or regain physical and psychological fitness.

3) Howat, Gary (date), “A Healthy Splash”, Australian Leisure Management (90) Collaroy: Australian Leisure Media Pty Ltd The health benefits of public aquatic centres are explained using Australian research findings. Data from 7133 public aquatic centre customers across Australia, indicates that health related benefits (e.g. improved fitness, stress release, greater self-esteem) contribute to positive overall customers experiences and customer loyalty, in particular for those over 50 years old. These findings suggest that each centres can be seen as a major preventative health resource indicating important implications for public policy. Improving access to aquatic facilities, refurbishing older facilities and subsidising preventative health activities for vulnerable groups is suggested.

4) Howat, Gary, 2012 “Understanding customer benefits in public aquatic centres”,

Australasian Parks and Leisure, Vol. 15, No. 2. p7-9. Centre for Tourism and Leisure Management, School of Management, University of South Australia. email:[email protected].

This article compares the benefits attained by different activity group participants based on data from 7,089 customers of Australian public aquatic centres. Research identifying benefits attained from sport and recreation participation helps clarify why customers visit public aquatic centres. Understanding the different combinations of benefits for specific activity groups allows aquatic centre operators to tailor their services and promotional campaigns accordingly.


5) Howat, G ;Alikaris, J; March H; Howat, P, 2012 “Health- related benefits: their influence on loyalty and physical activity participation in Australian public aquatic centres”, International Journal of Sport Management and Marketing, Special Issue: Consumer behaviour in sports, 12(1/2), 73-92. The present study aimed to examine health – related benefits and their potential role in encouraging more people to undertake regular physical activity at public aquatic centres. The study used the service quality – overall satisfaction – loyalty model to examine outcome service quality, especially health- related benefits, and their influence on loyalty (WOM recommendation), mediated by overall customer satisfaction. Based on a sample of 7,133 customers of 27 multi- purpose public aquatic centres in Australia, regression analyses indicated that health-related benefits dimensions, improved health and fitness and relaxation and stress release, had the greatest influence word-of-mouth recommendation. Improved health and fitness was also rated the highest for benefit importance as well as benefit attainment, with success in competition the lowest rated benefit dimension. Further research is recommended to clarify the health-related benefits in facilitating physical activity, thus reducing the prevalence of chronic health disease.

6) John Tower, Katie McDonald and Bob Stewart, April 2014 “Community Benefits of Victorian Aquatic and Recreation Centres”, Institute of Sport, Exercise and Active Living Victoria University, Melbourne Leisure and aquatic and recreation centres (ARCs) are crucially important contributor to the well-being of Australians. They provide people with an escape from the pressures and tensions of daily life, lead to improved levels of physical and mental health, and build up strong social networks and relationships (Howat, Alikaris, March & Howat, 2012). While ARCs are considered valuable assets to the community, construction and management of ARCs are generally unappealing for the private sector because of the low financial return on the investment. Consequently, it has become the responsibility of government to invest public monies to ensure these facilities are built, maintained and capable of communities’ needs.

7) Parks & Leisure Australia / Sport and Recreation Victoria 2012, “Benefits of Aquatic & Indoor Recreation Facilities” Unpublished.

The benefits approach to leisure suggests the purpose of leisure participation is to deliver specific beneficial outcomes to individuals that may in turn provide benefits to the community, to the economy and to the environment. This approach also suggests that management’s primary goal is to optimise net health benefits that accrue to individuals and groups of individuals. The key findings included: the 346 indoor aquatic and recreation centre visitors surveyed undertook 139 different combinations of 28 activities, 55 involved swimming. Health and safety, not recreation were the main (top 5) motivators for the visit.


8) Jorgensen, R August 2013, “Early Years Swimming – Adding capital to young Australians” Griffith University.

The quality of a swim environment plays an important role. It is widely acknowledged in educational literature that environments and teachers are the most critical variable in enhancing student performance. This study has developed two tools to assess the quality of swim environments and the pedagogies, or philosophy for teaching swimming.

9) Sport England 2012 “Affordable Community Swimming Pools, Creating sporting

opportunities in every community”

This study produced by Sport England helps project teams develop a 25m community swimming pool. It comprises a set of reference tools which can reduce the need for some of the traditional feasibility studies and help achieve affordable and sustainable swimming pool provision more efficiently. The information can be applicable to a standalone solution or a building block within a bigger development.

10) Obesity, Fitness and Wellness Week September 13, 2003 “Swimming pools provide health, social benefits to disadvantaged communities” http://business.highbeam.com/408966/article-1G1-107289262/swimming-pools-provide-health-social-benefits-disadvantaged Swimming pools provide important health and social benefits to disadvantaged communities, finds a new study.

11) Thomson, H, Kearns, A and Petticrew M, 2003,“Assessing the health impact of local amenities: a qualitative study of contrasting experiences of local swimming pool and leisure provision in two areas of Glasgow” Journal of Epidemiology and Community Health; vol.57:663-667 In both areas the swimming pool was reported as an important amenity that was linked to health and wellbeing. However, few residents reported regular use of the pool for physical activity. Use of the pool facility for social contact was directly linked to reports of relief for stress and isolation, and improved mental health. Pool closure was one in a series of amenity closures and area decline and was used to represent other area changes. Health impacts were strongly linked to the pool closure. The pool opening was associated with local area regeneration, similar but less prominent links between swimming pool provision and health were reported. Health benefits of social contact were diffused and linked to other local amenities as well as the new pool facility.


Attachment 3: Local environment scan – local facilities


SCAN OF TORQUAY/JAN JUC HEALTH FACILITIES AND SERVICES - prepared by Surf Coast Shire, 5 February, 2014 1. Fitness facilities and services


Facility/Business Name Facilities offered Price Location

1 RACV - One Lifestyle, Torquay

Gym, group fitness classes, indoor swimming pool, spa, sauna, children’s wading pool and flood lit tennis courts. Massage/spa extra cost. Yes Indoor 25 mtr

$1050 annual membership $93.50 per mth (discounts for RACV members) 1 Great Ocean Road, Torquay

2 The Sands Torquay Health ClubState of the art gymnasium equipment, Swimming Pool. Personal Training and Massage extra cost. Yes Indoor 25 mtr

$1009.00 ((2012/2013 Membership Year). Personal training sessions are available at an additional fee. 2 Sands Blvd, Torquay

3 Wyndham Hotel Fitness Centre

Fully equipped gym, steam room, tennis court and indoor lap pool. The fitness centre also offers space for yoga and pilates classes. Massage/spa extra cost. Yes

Indoor 10mtr (also outdoor pool for guest recreation only) 100 The Esplanade, Torquay

4 Torquay Aquatic Swim School Indoor pool swim lessons for children Yes Indoor pool 17mtr 35 Baines Crescent, Torquay

5 Quay Health Club - TorquayGym - Fitness Studio - Personal Trainer - Pilates- Allied Health Clinic (Physiotherapy/Sports Therapy) No

Level 1, 38 Bell Street,Torquay

6 JETTS Torquay Gym and personal training No $11.95 per week or $489 for 12 monthsShop 8, 41 Bristal Ave Torquay Central,

7 Torquay Coastal Boxing and Fitness

Torquay Coastal Boxing & Fitness five star boxing and fitness facility is fully equipped to cater for all your fitness needs. No

Casua s ts & C asses $ 0 12 Month memberships: only $80 a month DD with $100 join fee.Personal Training (Boxing and/or Fitness) from Baines Court, Torquay

8Surf Coast Sport and Recreation Centre

Indoor Sports Stadium (full or ½ court).Multi Purpose Room. Variety of activities and fitness programs all ages from toddlers to older adults.

No

Private Fitness Providers

1 Step Into Life Outdoors fitness classes and personal Training No Foreshore Reserve, Torquay

2 Aspire Health and Personal Training Personal Training, yoga, pilates massage No Services Torquay

3 Body Balance City to Surf Personal Training No Torquay 0405 273 414

4 Pure Life Health & Fitness Personal Training No Jan Juc

5 Great Ocean Fitness Personal Training and fitness services No 54 Ocean View Dr, Torquay

6 Surf Coast Personal Training Personal Training No 34 Rocklea Drive Torquay

7 Corbett Personal Training Personal Training No Service Surf Coast 0411826 530

8 Performance Training Strategies Personal training No Service Surf Coast 0413 489759

9 Carolyn Scott Personal Training No Torquay 0405 392 714

Swimming Pool?

1. Community health/allied health Note: Sourced from Yellow Pages search only.

Service/Business Location

Medical Centres/Community Health Services

1 Karuna-Maya Medicine Tree 22 Princes Tce, Jan Juc

2 Surfcoast Medical Centre 100 Surfcoast Hwy, Torquay

3 Torquay Central Medical 7-8/ 8 Gilbert St, Torquay

4 Torquay Bulk Billing Clinic 94 Geelong Rd, Torquay

5 Barwon Health 100 Surfcoast Hwy, Torquay

6 Surf coast home doctor

Allied HealthOsteopaths

1 Torquay Osteopathic Clinic 92 Geelong Road, Torquay

Physiotherapists

1 Offshore Physiotherapy Torquay 144 Surf Coast Hwy, Torquay

2 Quay Physiotherapy 38 Bell Street, Torquay

3 Torquay Physiotherapy & Sports Treatment Clinic 9 Great Ocean Road, Jan Juc

Chiropractic

1 Surfcoast Chiropractic Clinic 2/ 13 Pearl St, Torquay

2 Coastal Chiropractic 3/ 7 Bell St, Torquay

3 Adams Chiropractic 86 Geelong Rd, Torquay

4 Grist Joel Dr 23 Geelong Rd, Torquay

5 Jan Juc Torquay Chiropractic & Sports Clinic 1 Stuart Ave, Jan Juc

6 Bells Beach Family Chiropractic 1 Sunset Stp, Jan JucMassage

1 RACV - One Lifestyle 1 Great Ocean Road, Torquay

2 The Sands Torquay Health Club 2 Sands Blvd, Torquay

3 Wyndham Hotel Fitness Centre 100 The Esplanade, Torquay

4 Yang Yang's Chinese Massage Shp 8/ 12 Gilbert St, Torquay

5 Alex Kennedy Remedial Massage Therapist 52 Ocean View Crs, Torquay

6 Surfcoast Massage 2 Empire Ave Jan Juc

7 Sally Louise Sanctuary Yoga Studio 22 Ocean Blv, Jan Juc

8 Bodiwaves Therapy 1 Island Drve Torquay

9 Maria’s Torquay Massage 6A Baines Court Torquay

10 Marumi Smith's Remedial Massage Therapy 86 Alleyne Ave, Torquay

11 Torquay Scio Centre 38 Norfolk Blv, Torquay


Attachment 4: Benchmarking data

1. Benalla Aquatic Centre 2. Wonthaggi Aquatic & Leisure Centre 3. City of Greater Geelong – Bellarine Aquatic and Sports Centre 4. Colac Otway Shire – Blue Water fitness Centre


Benalla Aquatic Centre 1. Centre structure – History: Benalla Aquatic Centre

1) Centre history, year built and core components Outdoor facilities opened in 1956, a 50m 6 lane pool, family pool and toddler pool; Indoor Centre opened in November 1997, with a 25m 8 lane pool, hydrotherapy pool, and beach entry toddler pool. There is also a small gym and the old swim club room has been developed into a group fitness/meeting room.

2) Decisions around building & developing the centre – what were the key drivers? i.e. Community advocacy, Council-driven, community infrastructure study/ other?

The development of the indoor pool was driven by community advocacy.

3) Decisions around why particular components were developed, the rationale

for these. The indoor facility was originally planned to have a gym, group fitness and multi-purpose room included in the Centre. However due to lack of available funds these spaces were scheduled to be included at a later time.

4) Funding composition for construction – what funding and how much?

1) The Benalla Community raised $500,000 to enable receipt of Grants

through the State Government totalling $2.2 million. 2) The provision of the grants was that a Crèche and Toddler pool be

included in the construction.

5) If the Centre wasn’t there, how far would it be to travel to the nearest Centre? To the north 50km to Wangaratta (indoor & outdoor centres, west 65km to Shepparton (indoor & outdoor centres), and south east 65km to Mansfield (outdoor pool).

2. Centre Programming – Users & Membership

1) Where do your members / users come from? The majority come from within the Rural City of Benalla Shire.

2) Do you know how far they travel to use your Centre?

The majority come from within a 20km radius


3) What is the demographic profile of users – age groups?

a. We have Swimming Lessons from 6mths to Adults b. Our membership base is from Teens to Older Adults c. The recreation swim ranges from Infant to Older Adults

4) Which population group is the majority user? The main population user group is from 15 - 35. The most vocal group is the older adults

5) What programmes to you offer and can you rank the top 3 for usage?

a. Swim Lessons b. Older adults programs c. Yoga

6) What is your current membership and for what component of the Centre?

a. Total – 424 b. Health & Wellness – 257 c. Aquatic - 167

7) Do you have any tenant arrangements with allied health services or other

services? No


Wonthaggi Aquatic & Leisure Centre 1. Centre structure – History Bass Coast Aquatic Centre - Wonthaggi 1) Centre history, year built and core components

a. Pool was built around 1979 with redevelopment in 1986 b. Health Club (converted from dance studio in 2002) c. Stadium (single court as part of original building) d. Creche (2013)

2) Decisions around building & developing the centre – what were the key

drivers? i.e. Community advocacy, Council driven, community infrastructure study/ other? Addition of Health Club and Creche was a push from YMCA. Council is currently doing feasibility studies into upgrading the aquatic facilities; this is a push from the community and is supported by the YMCA.

3) Decisions around why particular components were developed, the rationale for these. Health Club established as there was no existing Health Club in Wonthaggi at the time. YMCA pushed this as a financial driver for the facility. Creche addition was due to the success of another leisure facility in the Bass Coast region and the YMCA pushing to make the facility more accessible to those with children.

4) Funding composition for construction – what funding and how much? Funding is through council rates and grant applications. Quantities are unknown as council couldn't supply these.

5) If the Centre wasn’t there, how far would it be to travel to the nearest Centre? 40km (Leongatha)

2. Centre Programming – Users & Membership

1) Where do your members / users come from? Member database;

a. Wonthaggi area 56% b. Inverloch area 20% (Inverloch is approximately 12km) c. Other (within 5km) 5% d. Other (greater than 10km away) 19%

2) Do you know how far they travel to use your Centre?

See above.


3) What is the demographic profile of users – age groups?

a. Swimming Lessons from 6 months to adults b. Recreation swimming from infants to older adults c. Membership base is teenagers to older adults d. Group Fitness teenagers to older adults

4) Which population group is the majority user?

a. Older adults b. Swimming Lessons participants are generally under 15 years of age

5) What programmes do you offer and can you rank the top 3 for usage?

a. Swimming Lessons b. Schools Swimming Lessons c. Group Fitness Classes (Aqua Movers being most popular)

6) What is your current membership and for what component of the Centre?

a. Total 585 b. Health & Wellness 407 c. Aquatic 178

7) Do you have any tenant arrangements with allied health services or other

services? No

8) If yes to question 7, can you elaborate on these arrangements – i.e. type of services, term of agreement and income generated? N/A

3. Financial information

1) What are your largest costs associated with running the Centre? a. Salaries and wages ($562,494) b. Utilities (Gas $67,452, Electricity $44,216) *Water paid by council c. Repairs & Maintenance ($26,384) - An additional $20k is available

for capital works


Surf Coast Shire Aquatic Facility Benchmarking Information

Question / Information LGA Name: City of Greater Geelong Colac Otway Shire Name of Facility: Bellarine Aquatic and Sports Centre Bluewater Fitness Centre

(Colac) Estimated Current Population (Approximate)

CoGG = 221,497 (Ocean Grove = 12,813)

Shire = 20,973 (Colac = 9,244)

Estimated Future Population (2031) CoGG = 297,956 (Ocean Grove = 16,821)

Shire = 25,120 (Colac = 11,128)

Is the facility already built (i.e. existing) or proposed?

Existing 2008 (Aquatic development) Planned Gym (2014)

Existing

Year of completion, or proposed completion? 2008 and 2014 1992 Capital cost (if not constructed yet, capital budget)?

$8.2m aquatic facilities (2008). Internal development of gymnasium expected $300K including equipment (2014)

Unsure

What is the actual (or predicted) annual operating cost (i.e. net surplus or deficit)?

Current deficit $450,000 p.a. Estimated operational breakeven with development of a 300m2 gymnasium.

2012/13 - $420k deficit 2011/12 - $410k deficit

Main sources of capital funding (approximately)?

About to undertake a $10m redevelopment of the existing facility which includes construction of a warm water pool, water play elements, expanded stadium and new gym/foyer/amenities.

o Council ($ or %)? $5.7m (2008) $350,000 Gymnasium (2014)

$512,000

o State Govt.($ or %)? $2.5m Major Facilities Better Pools (2008) $2.78m

o Fed Govt. ($ or %)? Nil $6.583m

o Other - please specify major sources ($ or %)?

Nil

Community – $125,000

What is the size of the facility and core building components?

Once the facility is redeveloped, the size of the building components will be as follows:


Question / Information o Overall size of the site (if known)? Unsure – part of Colac Secondary School site

o Overall building envelope m2)? 4,413m2 6,070m2

o Size / scope of aquatic facilities / pools? 1,572m2 (25m x 8 lane and leisure pool)

1,475m2 (25m x 8 lane and toddles pool)

o Gymnasium size (m2)? Existing 90m2 after development 300m2 380m2

o Childcare/crèche size (m2)? Existing 240m2 to be relocated to a new separate Children's Hub facility within the overall site.

100m2

o Program / fitness rooms size (m2)? Aerobics 260m2 will change to 240m2 Indoor cycle/spin 45m2

370m2 (includes storage)

o Other community spaces (e.g. meeting rooms) size m2)?

Public spaces (foyer, cafe/kiosk etc.) – 280m2

o Other 'dry' facilities / spaces (m2)? Stadium 1,634m2 (2 multi-purpose courts) Administration 308m2

Stadium including dry amenities – 3,100m2 (2 multi-purpose courts and 2 squash courts) Administration (offices, meeting space etc.) – 230m2 Consulting suites – 30m2

Membership and Participation rates 1,200 members 555,000 visits per year 1,100 members and 150,000 visits per year


Attachment 5: Financial model by SGL Consulting Group Refer to Appendix 3 of this Council report.


Attachment 6: Credentials of Kate Maddock, Director SGL Consulting

Kate has been involved in all areas of leisure, sport and recreation planning with a specialist focus in market research and consultation ensuring that solutions are unique and relevant to the needs and interests of each client. Having a background in local government management, Kate has a clear understanding of the key drivers required for a successful project. Qualifications: BA Recreation, Graduate Diploma Business Administration. Recent Major Projects – Aquatics (this list is not a complete list of project but a sample of projects).

• Ashburton District Council (NZ) Aquatic Centre Feasibility and Business Plan • Rotorua District Council – Rotorua Aquatic Centre Feasibility Study • Christchurch City Council – Brighton Water Park Review • Wyndham City Council – Wyndham Aquatic Strategy • Yarra Ranges Shire – Aquatic Strategy • Shire of Nillumbik – Eltham Leisure and Aquatic Centre Feasibility Study • Cardinia Shire – Cardinia Life Aquatic and Leisure Centre Feasibility Study • City of Moonee Valley – Queens Park Re-development • City of Casey – Doveton Pool Redevelopment


Attachment 7: Map of Community & Civic Precinct and potential centre on nominated parcel of land


Documents

A report by the Surf Coast Aquatic and Leisure …...packages and fitness services, such as group exercise classes and personal training. Members and those interested in gym and fitness