AGENDAMeeting No. 168

SOUTH MELBOURNE MARKET COMMITTEE5.30pm Wednesday 17 February 2016

South Melbourne Town Hall, Theatrette

Attending Members: Cr Amanda Stevens (Chairman), Cr Andrew Bond, Cr Anita Horvath, Violetta Hartley (External member), Felicity Giuliani (External member), Andrew Brough (External member), Fiona Blair (General Manager, Infrastructure & Amenity)

Attending Officers: Ross Williamson (SMM Manager)

Apologies:

Guests:

1. Apologies

2. Minutes of Previous MeetingMinutes of meeting 167 held on 2 December 2015

3. Declarations of Conflicts of Interest

4. Reports1. Finance Report, end January 2016 (page 3)

2. Operational & Marketing Report, January 2016 (pages 4-16)

Attendance (page 4-5)Marketing (pages 5-13)Operations Report (pages 13-17)

5. Public Question TimeWritten notification to be submitted in line with Council procedure and handed to the officer attending prior to commencement of meeting.

6. Confidential Reports1. Financials January 20162. Governance Review3. Licence Management, February 20164. Marketing5. SMM Strategic Plan

6. Capital Works incl Food Hall Upgrade

7. Deli Aisle Review

7. Other Business

SMM Committee – Agenda February 2016

TABLE OF CONTENTS

Item 4.1 Finance Report………………………………… 3

Item 4.2 Operational & Marketing ReportAttendance………………………………………………………… 5

Marketing Summary (January 2016)……………………………. 5

Capital Works and Other Projects……………………………… 13

- 2 -

SMM Committee – Agenda February 2016

Item 4.1 Finance Report

South Melbourne Market Comparison with budget

at end January Actuals BudgetActual

vBudget

Comment

Income Miscellaneous Fees & Charges 50,282 56,412 (6,130) Cooking School income 135,932 87,500 48,432 On track; Phasing error - large sales at Xmas Cool Room/Display Income 144,143 143,500 643

Parking Revenue 299,886 295,669 4,217On track after mid-year adjustment (+$50,000) to account for 18% increase in revenue after 22% rise in fee

Rentals & Hire 2,937,648 2,930,131 7,517 Night Market income has overall rent back on track

Other Income 65,730 50,092 15,638 includes $15,000 new sponsorshipTotal Income 3,633,62

3 3,563,304 70,319

Expense

Wages and Salaries -660,703 -625,749 (34,954)$4,500 relates to back pay for 2014/15; $15,848 unbudgeted long service leave; staffing new front desk

Advertising and Publicity -360,899 -349,482 (11,417) Timing of invoices

Contract Payments -202,466 -304,003 101,537Variable because mostly maintenance costs; like last year majority of expense will be at back end of year

Cleaning Costs -544,570 -630,126 85,556 $62,965 of January invoices not posted

Security Services -164,789 -178,192 13,403 January invoice not in system $14,323 Professional Services -72,324 -131,194 58,870 Work in pipeline or underway; not yet invoiced Insurance -45,705 -51,250 5,545 Lease Charges (External) -2,308 -2,310 2 Materials -1,331 -4,186 2,855 Printing, Copying, Stationery -7,918 -5,838 (2,080) Bad and Doubtful Debts 21,439 0 21,439 Accounting adjustment to reflect debtors paid Telephone Charges -992 -1,169 177 Utilities -75,041 -151,271 76,230 No water invoice in system - investigating this Other Expenses -6,792 -7,805 1,013 Maintenance -24,362 -39,613 15,251 Hard to predict; always variable

Total Expense-

2,148,760

-2,482,188 333,428

Grand Total 1,484,862 1,081,116 403,746 On track; Phasing error - large sales at Xmas

Note:January invoices for cleaning and security are not in the system so the true picture is not a $99,000 surplus. Security costs will be lower for the Night Market and Mussel Festival, as NPS (our security provider) are providing in kind sponsorship by way of security guards (valued at $8,000).No water invoices are in the system but our assessment of cost based on reading the meters from 1 July to end January is $80,000. Water usage in January was 390,000 litres less than last year. Other Expense/cost centres while showing positive variances will come close to budget based on forecast activity. The Night Market and Mussel Festival also cause a spike in costs. I therefore expect Expenditure to be close to budget at year end.In addition, Income should be close to budget as two mid-year budget income adjustments totalling $76,000 (for sponsorship) will come into play in February ($51,000) and May ($25,000), yet some income has already been received (e.g. Neff Kitchen sponsorship). So while we show we are ahead of budget now, that will be eroded when the adjustments are made.The Parking Revenue budget was adjusted up $50,000 at the mid-year review.

- 3 -

SMM Committee – Agenda February 2016

The Cooking School income, despite appearing $48,432 better than budget is on track. This is a phasing error, as the budget did not allow for the very high voucher sales at Christmas.The Wages and Salaries deficit should reduce.

RecommendationIt is recommended that the Committee note the financial reports for the period ending 31 October 2015.

Item 4.2 Operational and Marketing Report

AttendanceMonthly visitor figures are difficult to compare based on a variable number of trading days per month, so we have provided Monthly visitor numbers, as well as Average Market Day visitor numbers.

Monthly visitor numbers below: July 14: 373,679 July 15: 382,251 (+2.29% - 1 extra trading day)Aug 14: 422,867* Aug 15: 409,517* (-3.16% - 1 less trading day)Sep 14: 364,920 Sept 15: 386,889 (+6.02% - 1 extra trading day)Oct 14: 389,698 Oct 15: 401,698 (+3.0% - 0 extra trading days)Nov 14: 414,222* Nov 15: 399,811 (-3.48% - 1 less trading day)Dec 14: 414,967 Dec 15: 423,629 (+2.09% - 1 extra trading day)Jan 2015: 405,166 Jan 2016: 419,455* (+3.53% - 0 extra trading days)Feb 15: 348,412* As Saturday and Sunday are our busiest trading days, months with 5 weekends pushes the visitor numbers up higher than average.

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2010-112011-122012-132013-142014-152015-16

Market Day Comparison:As the monthly total is skewed by the number of trading days, we can now compare the average visitor numbers by Market day.

Average Market Day Nov 14 Nov 15 Diff Dec 14 Dec 15 Diff Jan 15 Jan 16 DiffWednesday Traffic 17,378 18,391 5.8% 23,943 23,292 -2.7% 17,933 17,748 -1.03%Friday Traffic 19,601 19,198 -2.2% 20,455 19,891 -2.8% 18,849 19,778 4.93%Saturday Traffic 24,961 26,019 4.2% 25,123 25,263 0.6% 24,908 25,868 3.85%Sunday Traffic 28,300 29,077 2.8% 26,686 26,001 -2.6% 28,662 28,160 -1.75%Total 90,240 92,685 96,207 94,447 90,352 91,554

- 4 -

SMM Committee – Agenda February 2016

Christmas and New Year’s Eve trading in 2015 both fell on traditional non-Market days. While it didn’t affect Christmas Eve so much, it certainly had an effect on New Year’s Eve, and it was a very hot day – in the high 30’s.

Christmas Eve24.12.1

4 24.12.15 Inc / Dec 36,474 33,759 -7.4%

NY Eve31.12.1

4 31.12.15 Inc / Dec 27,264 16,960 -37.8%

Marketing SummaryACTIVATING THE MARKETPAST EVENTS

Australian Garlic Season launchGeorgie’s Harvest, in conjunction with the Australian Garlic Industry Association, launched the Australian Garlic Season at the Market on the first weekend of December. There were garlic plaiting demonstrations, opportunities to meet the growers plus sample the garlic types at the Cecil Street restaurants. We were very lucky this year to have Danielle Green, Victorian Parliamentary Secretary for Tourism, Major Events and Regional Victoria, officially launching the 2015-2016 garlic season at 11am on Saturday 5th of December at the South Melbourne Market.

Christmas: South Melbourne Market welcomed the traditional festive spirit in 2015, making customs, carols, children and charity the focus this season.

Extended Festive Season Trading –

The Market trading days / hours were extended with promotion of the extended trading via the following campaign: Signage:

• Christmas Signage on every external corner of the Market, large posters throughout the Market, and behind toilet doors and on all entrances with windows (Food hall, Deli Aisle)

Advertising:• Gram Magazine 1 Dec• The Age Spectrum 12 Dec• CPP Leader 15 Dec• Bayside Leader 15 Dec• The Age Good Food 15 Dec• The Age Spectrum 19 Dec• Christmas Gift Ideas flyer

SMM E-News email (14,000): November & December newsletters Direct Mail to CoPP residents (100,000): Early December Website:

• Christmas trading hours were on our trading hours page of the website from November. Regular Social Media posts:

• Facebook, Instagram, TwitterOther Christmas activities included:

- 5 -

SMM Committee – Agenda February 2016

Santa’s Mail Box – Santa’s Mail Box was located in the Food Hall. Children dropped off their letters for Santa, to have them express-posted to the North Pole. Kids brought their own letters from home, or wrote them on the Dear Santa notepads provided by Santa’s helpers.

Santa Popped In – Santa made an appearance, making three special stops at the Market on Sat 19, Tue 22 and Wed 23 December, 11am-1pm.

Kids Christmas Craft – Art and craft workshops for kids (5+) were another highlight, with two-hour, fully supervised sessions being held on Tue 22 Dec and Wed 23 Dec in The Neff Market Kitchen.

Christmas Gift Ideas – For market-goers struggling to find the perfect gifts, our stallholders took the hard work out of picking presents giving our shoppers their best Christmas finds for her, him, home and the kids. The guide was available at the Market and on our website!

Christmas Cooking Demonstrations – Adults had a chance to show off their festive flair, with Christmas cooking demonstrations held on Sat 12 & Sat 19 December in The Neff Market Kitchen.

- 6 -

SMM Committee – Agenda February 2016

Sacred Heart Mission Gift Wrapping – Charity was not forgotten, with the Market’s Christmas gift wrapping service raising $1,788 for St Kilda’s Sacred Heart Mission. The dedicated wrapping station meant people could get their gifts wrapped for a gold coin donation. It was available every Market day, throughout December, 10am-2pm.

Christmas Music – Lovers of carols and festive tunes were in for a treat during the final Christmas countdown. The musical line-up includes the iconic Salvation Army Carol Singers and The Jazz Jokers.

Trader Decoration Competition – Decorations were a big drawcard, with shoppers and stallholders up for big prizes in the Trader Decoration Competition. Tinsel-happy traders competed for the “Best in Market” title, with Bakerlite taking out the top prize, presented at our Traders Christmas Party. This was a great way to get the Christmas spirit right through the Market. Shoppers were also asked to upload photos of their favourite decorated stalls on Instagram using hashtag #southmelbournemarket to win a $200 Market Voucher.

Turkey & Ham Buyer’s Guide – Our delicious hams included Barkly Grandmother ham, Peter Bouchier hams, Jonathan’s of Collingwood ham and Warby Farm rare breed, free range, nitrate free ham. Turkey was also available as whole birds, turkey buffet, seasoned turkey rolls, smoked turkey breasts and more. The essential Turkey and Ham Buyer’s Guide was available on our website!

Australia DayTuesday 26 JanAustralia Day fell on a Tuesday this year, so we only had a few small events the weekend leading up to Australia Day. Little Wine Shop: Anna had a special wine tasting that weekend, showcasing Italian blends made in Australia, and Italian wines imported from Italy. The wine tasting went really well and Anna sold a lot of the wines she had for the tastings.Kirkpatrick’s: Kirkpatrick’s had lamb sausage and burger tastings during the weekend, and they were extremely busy and sold everything that they were cooking.

- 7 -

SMM Committee – Agenda February 2016

Chinese New Year

Sat 6 Feb

We invited the community to kick off their Chinese New Year celebrations two days early with the South Melbourne Market.On Saturday 6 February from 11am, traditional Chinese Lion Dancers welcomed the Year of the Monkey by weaving their way around the Market stalls. As a sign of good luck, the lion visited different parts of the Market, eating fruit and taking red packets left out by stall holders to bless them with good luck.Visitors could also receive good luck from the lion by bringing some fruit or vegetables for it to gobble up.And it wouldn’t be a Chinese New Year without firecrackers, which went off on Cecil and Coventry streets during the one hour parade.

FUTURE EVENTS

Valentine’s DaySun 14 FebWe’re inviting the community to spoil their loved ones this Valentine’s Day with something special from the Market, and enter our competition to potentially win a voucher for themselves!They just need to let us know what they’re ‘Saying it with…’ this Valentine’s Day from the Market and go into the running to win a $200 Market Voucher. Competition closes 21 February.Our campaign is around the “Say it with….” theme.

Mussel FestivalSat 12 & Sun 13 MarchThe Port Phillip Mussel Festival is on again in March, capping off the South Melbourne Market festival season. With non-stop jazz, mussels from our favourite South Melbourne Market restaurants, as well as pop-up restaurants from some of the Neff Market Kitchen supporters including Dandelion, St Ali and The Grosvenor Hotel. Sponsors include NPS (Security) who will be providing 50% of the security for free, and Haymes Paintright Southbank who will be providing free kids craft during the festival.

EasterAs the School term finishes on Thursday 24 March, with Good Friday on 25 March, all Easter related activities will be held on the weekend of 26-27 March.

Easter Bunny in the Market: The Easter Bunny will hop on down to the Market on Sat March 26 and Sun March 27 from 10am to 1pm.

Facepainting: Facepainters will be located in the Food Court on Sat March 26 & Sun March 27 from 10am to 2pm.

Market Jazz: Roving jazz musicians will be entertaining shoppers on Sat March 26 & Sun March 27 from 11am to 2pm.

Easter Egg Hunt:

- 8 -

SMM Committee – Agenda February 2016

The kids will need to find the Easter Bunny in the Deli Aisle on Sat 26 March at 10am - then the fun begins!! The hunt starts every 10 minutes from 10am to 11am only.

SMM PR/ MEDIA/ BLOGGER COVERAGE

4 Dec 2015: Garlic Launch – Georgie’s Harvest1-23 Dec 2015: Time Out Melbourne - Christmas at South Melbourne Market

Dec 2015: Glen Eira Leader – Market gets in festive mode Dec 2015: Australian Traveller: The South Melbourne Night Market

Dec 2015: Australian Traveller: The Neff Market Kitchen article

- 9 -

SMM Committee – Agenda February 2016

Dec 2015: The Urbanlist Melbourne – The Ultimate South Melbourne Market Challenge (Video)

Sat 12 Dec 2015: Herald Sun – All the trimmings without the costs (Aptus Seafood featured)

Sat 12 Dec 2015: The Australian - Sydney Fish Markets, Prahran, Claringbold’s and others reveal the tips and tails of seafood17 Dec 2015: Tot – Hot or Not – What’s On: Kids Christmas at South Melbourne Market (listed)20 Dec 2015: SMH – Gift Ideas29 Dec 2015: SMH – Sticky Carpet: South Melbourne Night Market1 Jan 2016: SMH – Our pick of things to do this weekend – South Melbourne Night Market26 Dec 2015: Veracious Vaune Blog: South Melbourne Market to Checking Out24 Dec 2015: ABC News: Final day of madness! Christmas crowd moves from shopping centres to fishmongers (Video)24 Dec 2015: 3AW Interview - Tony Jones with SMM Fishmonger, Angelo Zahos, which took place at 10:30am on Thursday December 24 – Christmas Eve - as part of the South Melbourne Market, Christmas Campaign.10 Jan 2016: Citylane Blog: South Melbourne Market returns in 201612 Jan 2016: Broadsheet: South Melbourne Summer Night Market (Gallery)This story was one of their lead stories on their front page for a few days, and also in their eNews that week. 17 Jan 2016: The Culture Trip Blog: The top 10 restaurants in South MelbourneThis article includes Claypots Evening Star, Koy, Simply Spanish and Paco y Lola. Jan 2016: Bambino Weekend: Top Picks – South Melbourne Night Market14 Jan 2016: Customers Today: Australian lemon supply compress prompts US imports Ray from South Melbourne Market Fresh interviewed. 18 Jan 2016: The Weekly Review: Lola Berry and the growth of Melbourne's wellness warriors27 Jan 2016: Broadsheet: What’s On (Events) – Linked in Broadsheet ENews 28 Jan 2016: The Weekly Review: Top spots in Melbourne to celebrate Chinese New Year

- 10 -

SMM Committee – Agenda February 2016

ADVERTISING

Below are some examples of recent advertising/ marketing.

Advertising from November through to January has been focused on: Christmas Night Market Favourite Traders Neff Market Kitchen General brand ads

Citylights, Bus Stops in CoPP

Leader Advertising:

- 11 -

SMM Committee – Agenda February 2016

Social Media

14-Jul-14

29-Aug-14

10-Nov-14

13-Feb-15

13-Apr-15

4-Jun-15

11-Aug-15

19-Oct-15

20-Nov-15

8-Feb-16

0

5000

10000

15000

20000

25000

30000

South Melbourne Market Social Media

TwitterInstagramFacebook

Fans

/ Fo

llow

ers

Facebook Twitter Instagram0

5,00010,00015,00020,00025,00030,00035,00040,00045,00050,000

Major Melb Markets Social Media

South MelbQueen VicPrahranDandenong

Social Media Platform

Fans

/ Fo

llow

ers

- 12 -

SMM Committee – Agenda February 2016

7/14/2

014

8/29/2

014

11/10/2014

2/13/2

015

4/13/2

015

6/4/2015

8/9/2015

10/19/2015

11/20/2015

2/8/2016

0

500

1000

1500

2000

2500

SO:ME Space Social Media

TwitterInstagramFacebook

Fans

/ Fo

llow

ers

8/29/2

014

11/10/2014

2/13/2

015

4/13/2

015

6/2/2015

8/9/2015

10/19/2015

11/20/2015

2/8/2016

0

2000

4000

6000

8000

10000

12000

South Melbourne Night Market Social Media

TwitterInstagramFacebook

Fans

/ Fo

llow

ers

- 13 -

SMM Committee – Agenda February 2016

Operations ReportMarket Cleaning and Waste Management ContractA technical issue was identified during the evaluation process of the SMM Cleaning and Waste Management Contract that went to Tender in September 2015. As a result, Council’s Legal Team advised Council to stop the Tender.

The Specifications of the Cleaning Tender have since been slightly modified and went out to Tender again on 6 February.

An agreement has been reached with Cleanevent to continue until the re-tender has been completed.

Food Hall Interior UpgradeThe works to the Interior of the Food Hall are near completion. These works have improved the aesthetics of the Food Hall and complement the recently completed external upgrade of the Food Hall / Coventry Street and the new furniture.

There have been some mixed reactions to the new furniture in the Food Hall but overall there seems to be an increase in customers to the area, despite two stalls being closed for renovations.

The trial of external furniture on Coventry Street outside the Food Hall has been well received and what was before a quiet area is now busy with customers enjoying the seating. Flow along the street is up 9% (comparing Dec and Jan 2015/16 with 2014/15) and the entry into the Food Hall (since we started collecting data in July 2015) is up significantly – see chart below.

15-Jul27-Ju

l8-A

ug

20-Aug1-Se

p13-Se

p25-Se

p7-O

ct

19-Oct

31-Oct

12-Nov

24-Nov6-D

ec20,000

21,000

22,000

23,000

24,000

25,000

26,000

Weekly total by 3 entrances

Weekly total by 3 en-trances

RISK ISSUES:Security – CCTV Improvements Over the coming weeks there will further upgrades to the CCTV system of the Market. As we will soon have improved internet connection via fibre optic, ARA Security are improving cabling to the Market for CCTV; adding a further six cameras in blind spots and will enable mobile access to the Operations Team mobile phones to enable quick coverage retrieval from the Market floor.

Lighting Audit The Market engaged Webb Engineers to carry out a lighting audit on the Market. This audit was to identify areas in the Market that did not have enough illumination or consistent illumination.

Webb Engineers made recommendations for product, positions and lumens required to create consistent and safe lighting in these areas. All lights recommended will also be more energy efficient.

The report has been sent to the electrician for costing (excerpt from report below).

- 14 -

SMM Committee – Agenda February 2016

OH&S A Property Risk Improvement Report was carried out by Vero Insurance on the 4 December 2015. This report was “to assess the exposures to property by fire, allied and natural perils and consequent loss of profits.”

The report’s aim was to review changes to the site since the previous report, which was issued in March 2013.

The report noted a high risk associated with the automatic sprinkler system servicing the Market’s cool rooms. It noted that the sprinkler system appeared inadequate and may not be able to control a significant fire if one were to occur, as many cool rooms are made of highly combustible expanded polystyrene (EPS) insulation paneling.

Two recommendations have been put forward by the Auditor from Vero;

1. Progressively upgrade all of the cool rooms, replacing the EPS paneling withy an FM approved equivalent

2. Upgrade the sprinkler protection systems for all EPS areas to meet the full requirements of FM Global Data Sheet 1-57

- 15 -

SMM Committee – Agenda February 2016

Actions : A Fire Engineer attended SMM on 5 February for a site tour. He will provide a quote to:

carry out a full audit of the current sprinkler systems servicing the cool rooms

assess the insulation panels of the cool rooms

assess the capacity of the pump set that supplies the sprinkler system throughout the Market

do the necessary installation and upgrade of the systems to address the risk concerns

The Full Audit will commence in the second week of February and should take a week to complete.

There were a number of new cool rooms installed 2010/11 in the veggie aisle (behind Coventry Street). These were all installed with internal sprinkler systems. The insulation materials in those new cool rooms will be tested by the Fire Engineer. A Building Permit was supplied by Council’s Building Solutions for these works.

Compliance Audit: A Compliance Audit of the Market’s public or common areas will be undertaken. The information from this report will be used to develop a strategic approach to the continued renewal of the Market and will develop an implementation plan that will prioritise compliance works with upgrade and renewal works. Procurement is currently underway to secure an appropriate company to undertake this work. The engagement of the contractor will occur by the end of February.

The audit will investigate compliance against current codes relating to:

a) Fire ratings and fire safety b) Egress provisionsc) Accessibility provisions d) Fire services – e.g sprinklerse) Toilet numbers and distribution

Ross WilliamsonFebruary 2016

- 16 -