Late Reports Agenda of Council Briefing

Council Briefing – LATE Agenda 5 November 2019

6 Infrastucture and Environment

6.1 Management of Services at Weld Square for People Experiencing Homelessness

TRIM Ref: D19/154792

Author: Cara Finch, Community Partner – Community Safety

Authoriser: Andrew Murphy, Executive Director Infrastructure and Environment

Attachments: Nil

Recommendation:

That Council:

1. APPROVES the use of Weld Square by Manna Inc. to deliver a free lunch meal service for people who are experiencing homelessness or at risk of homelessness for a period of up to twelve months, concluding no later than 30 November 2020, subject to the following conditions:

1.1 Hours of operation shall be for a maximum of 45 minutes on weekdays (Monday to Friday), on days and times to be agreed between the City of Vincent, Manna Inc., Nyoongar Outreach Services and Uniting Care West;

1.2 Manna Inc. shall ensure that service provision practices minimise impacts and disturbance to nearby amenities, businesses and residences;

1.3 Relevant Manna Inc. staff and volunteers are required to attend a minimum of one information session with City of Vincent, Nyoongar Outreach Services and WA Police Force representatives during the approval period to re-affirm expectations and protocols;

1.4 Manna Inc. shall ensure that actions identified by City of Vincent, Nyoongar Outreach Services and WA Police Force to deter anti-social behaviour are implemented in a timely manner;

1.5 Manna Inc. shall provide the City of Vincent, Nyoongar Outreach Services and WA Police Force with the details of a representative who is contactable during both office hours and after hours;

1.6 No more than two Manna Inc. vehicles are authorised to access Weld Square during the meal service;

1.7 Manna Inc. vehicles shall enter Weld Square via the Newcastle Street crossover and provide the meal service at the southern side of the park in Winter and the northern side of the park in Summer, with these specific seasonal dates to be determined by the City of Vincent;

1.8 Manna Inc. staff and volunteers shall pick up all rubbish and litter associated with the meal service prior to leaving Weld Square;

1.9 Manna Inc. shall maintain Public Liability Insurance coverage for a minimum of $20 million and indemnify the City of Vincent against any accident, injury or damage resulting from their use of Weld Square; and

1.10 The City of Vincent may withdraw approval for the Manna Inc. meal service to operate from Weld Square at its sole discretion.

2. APPROVES a waiver of reserve hire fees totalling no more than $6,777 for Manna Inc. to deliver a free meal service for up to twelve months at Weld Square for people who are experiencing homelessness or at risk of homelessness;

3. NOTES that Manna Inc. has entered negotiations with Uniting Care West to transition the Weld Square meal service to Tranby Centre during this approval period, and that Administration will continue to work with key stakeholders to ensure that any changes and transitional arrangements are communicated and managed appropriately.

4. NOTES that Administration will not consider any applications for additional goods and services for people who are experiencing homelessness or at risk of homelessness at Weld Square during this approval period, so that the impact on Weld Square from Tranby Centre’s extended service hours and the proposed transition of Manna’s food service to Tranby Centre can be assessed.

Purpose of Report:

To consider the ongoing use of Weld Square by Manna Inc. for the purposes of providing a free meal service for people who are experiencing homelessness or at risk of homelessness.

Background:

Manna Inc. is a non for profit organisation founded in 1996, who have grown to become one of the largest providers of meals to the homeless and disadvantaged in Perth.

Manna Inc. moved their free meal service to Weld Square in August 2008 and Council have granted subsequent twelve month approvals for the use of Weld Square since that time, with a range of associated conditions that aim to respond to concerns raised by nearby residents, businesses and other stakeholders.

At the Ordinary Council Meeting held on 16 October 2018 it was resolved that the use of Weld Square by Manna Inc. be approved until 30 November 2019, subject to various conditions.

It is now necessary for Council to consider approval for a further period. Manna Inc. has indicated their intention to continue operating the free meal service from Weld Square, pending a proposed re-location to Uniting Care West’s Tranby Centre during the approval period.

Details:

Manna Inc. Free Meal Service

The free meal service has been delivered at Weld Square five days a week (Monday to Friday) over the past twelve months, with approximately 90 clients accessing the service each day. Manna Inc. report that Mondays continue to be the busiest day for the service, with approximately 110 clients attending after the weekend.

Homeless Sector Update

Tranby Centre in Northbridge provides crucial support to people experiencing homelessness across the city. In August 2019, Uniting Care West announced that they had received State funding to extend the Centre’s opening hours to 7am-7pm, 7 days a week from 7am-12pm Monday to Friday and 8am-11am on Saturdays. The expansion of Tranby’s operating hours from 21 October 2019 will assist Uniting Care West to provide additional support and services to people experiencing homelessness in and around the city, as well as provide opportunities to bring other service providers together for a more collaborative, targeted and practical approach to the provision of homeless services.

In September, Administration met with Uniting Care West and Manna Inc. representatives to facilitate a discussion about the opportunity for Manna Inc. to transition the Weld Square food service to the Tranby Centre and support the expanded service provision at this location. It was recommended by both stakeholders that a transition plan be developed between the City, Uniting Care West and Manna Inc. to facilitate the proposed change in service provision over the coming approval period.

Homelessness Outreach at Weld Square

The City of Vincent channelled their annual collaborative grant funding of $85,000 to Uniting Care West to provide an Outreach Officer in the vicinity of Weld Square five days a week for the next twelve months. This service provides targeted and responsive support for those at Weld Square who are experiencing homelessness and helps link people to services, shelter and housing. Any re-location of Manna’s meal service at Weld Square is unlikely to resolve the need for such a service in this area, given the large number of support services located within close proximity to Weld Square, and its long history as a meeting place for Aboriginal people in particular.

Consultation/Advertising:

Administration has reviewed and discussed the Manna Inc. free meal service with a range of key stakeholders including WA Police Force, Nyoongar Outreach Services and Uniting Care West.

Legal/Policy:

The following Local Laws and Policies are relevant to the Manna Inc. meal service approval:

· City of Vincent Local Government Property Local Law; and

· Council Policy 2.1.7 – Parks Reserve and Hall Facilities – Conditions of Hire and Use

Risk Management Implications:

Negative Community Perception

Medium: There is divided opinion amongst the local community regarding the provision of homelessness services at Weld Square, with some residents and businesses opposed to the services and others in support.

Public Safety

Medium: Weld Square and the surrounding area experience anti-social behaviour associated with both proximity to both licensed premises and support services, and the prevalence of people at risk of or experiencing homelessness within the inner City area. It remains necessary for the City of Vincent to work collaboratively with WA Police Force, Nyoongar Outreach Services, Manna Inc. and Uniting Care West to manage these community safety risks.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Connected Community

We are an inclusive, accessible and equitable City for all.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

The waiver of reserve hire fees for the Manna Inc. free meal service is a maximum of $6,777 for the period up to 30 November 2020. This has been calculated based upon the meal service operating five days a week for 52 weeks a year.

Comments:

Homelessness remains a complex issue for both Local Government and the community, and balancing the needs of people at risk of, or experiencing homelessness with the amenity of local residents and businesses remains a significant challenge.

Manna Inc. is a well-established and recognised provider of quality food relief services within the community, and has adhered to the conditions relating to their approval to operate from Weld Square.

A further twelve month approval for Manna Inc. to operate from Weld Square is regarded as important for those experiencing homelessness and forms a key part of the emergency relief network in the inner city area, as well as enables the opportunity for a smooth and gradual transition of the service to Tranby Centre. It also supports the work of the City Homelessness Framework Committee of which the City of Vincent is a part, and supports a focus on the implementation of an accreditation process to bring goodwill groups and volunteers into the strategic alignment of the sector and coordinate their efforts.

The addition of any further relief services at Weld Square is not recommended during this approval period, pending the transition of the Weld Square meal service to Tranby Centre and a further assessment of the impact of Tranby’s expanded service hours on Weld Square during the approval period.

Council Briefing – LATE Agenda 5 November 2019

7 Community and Business Services

7.4 Floreat Athena Football Club Inc. - Lease - Final Report

TRIM Ref: D19/145496

Author: Karen Balm, Senior Community Partner

Authoriser: John Corbellini, A/Executive Director Community and Business Services

Attachments: 1. Attachment 1 - Asset Management Plan ⇩

2. Attachment 2 - Community Benefit Statement ⇩

3. Attachment 3 - Financial records - Confidential

4. Attachment 4 - Club Development Plan ⇩

5. Attachment 5 - Community Development Grants Programme Application - Confidential

Recommendation:

That Council:

1. APPROVES a 5 year lease to Floreat Athena Football Club Inc. from 1 January 2020 to 31 December 2024 for the stadium clubrooms located 41 Britannia Road, Leederville on the following key terms:

1.1 Term: 5 year lease plus 5 years at Council’s discretion;

1.2 Rent $5,500 plus GST (indexed to CPI) per annum;

1.3 Rates & Taxes: Lessee to pay including rubbish bin charges and ESL;

1.4 Outgoings: Lessee to pay;

1.5 Repairs & Maintenance: Lessee responsible for all repairs and maintenance and to keep premises clean and in good condition, this includes repair of damage due to fair wear and tear and structural maintenance. Lessor not responsible for any structural repair.

1.6 Minimum Level of Service: Lessee to pay for cost of statutory compliance, and pest inspections and treatment;

1.7 Insurance: Lessee to effect a public liability policy with cover not less than $20 million, and pay premium for building insurance policy;

1.8 Indemnification: Lessee to indemnify the City against all costs and claims;

1.9 Permitted Purpose: Sporting, recreational and community activities;

1.10 Shared Use: Lessee permitted to hire out clubrooms, function rooms at its discretion provided that the use is consistent with the Permitted Purpose;

1.11 Alterations: Not without the prior approval in writing of the Lessor;

1.12 Capital Works: Not without the prior approval in writing of the Lessor and subject to the conditions stated;

1.13 Lessor’s Covenant: Lessor will provide Lessee with quiet enjoyment of the premises for the term of the lease;

1.14 Payment Without Delay: Lessee must duly and punctually pay all rent, rates and taxes, outgoings, costs and interest on the terms specified by the Lessor;

1.15 Nuisance and Incidental Use: Lessee must submit a Management Plan for approval in writing by the Lessor for any events commencing from and continuing beyond 5pm, any events with amplified or live music, and any national/international sporting events;

1.16 Parking & Traffic Management: Lessee must submit a Parking and Traffic Management Plan for approval in writing by the Lessor for any events with an estimated attendance above 1,000 people; and

1.17 Community Group and Sporting Club Health Checks: Lessee must submit a fully completed Community Group and Sporting Club Health Check each year or upon request from the Lessor;

2. Subject to satisfactory negotiations being carried out by the Chief Executive Officer AUTHORISES the Mayor and Chief Executive Officer to affix the common seal and execute the lease in 1 above;

3. NOTES that the charging methodology associated with the recommended lease fee will be reassessed following the implementation of the draft City Property Management Framework;

4. ADVISES Floreat Athena Football Club Inc. that their access to the stadium pitch will only be for April to September annually and will be through the City’s seasonal ground allocation with the club being responsible for all associated fees and charges including floodlight usage charges during this period;

5. NOTES that the City will be assuming responsibility for the stadium surrounds and will work collaboratively with the club and the Australian Government to successfully obtain $3 million through the Community Development Grants Program towards upgraded sporting facilities – including a full integration between Litis Stadium and Britannia Reserve and rationalising any non-essential assets; and

6. NOTES that Floreat Athena Football Club Inc. will continue to use Litis Stadium until the end of September 2020 under the current arrangements and that Administration will call for Expressions of Interest for the use of the stadium (excluding the clubrooms) for summer usage from October 2020 through March 2021.

Purpose of Report:

To provide Council with an update on the progress by Floreat Athena Football Club Inc. (the Club) towards a range of organisational, financial and facility management initiatives that were required by Council to provide the basis for any future lease at the stadium.

Background:

Litis Stadium is located at Britannia Reserve on Lots 31 and 32 on Deposited Plan 687, and being the whole of the land comprised within Certificate of Title Volume 1769 Folio 75.

The site was originally developed as the Lake Monger Velodrome for the 1962 British Empire and Commonwealth Games. In 1982, the Club was granted a lease over 540 square metres of the site for the construction of its Clubrooms which was completed in 1986. The Club was granted a lease over the balance of the site in 1994, and the velodrome was redeveloped in 1998 with joint funding from the Club, the Department of Sport and Recreation and the City (then Town). The Stadium now comprises a soccer pitch, grandstand, clubrooms (social/function rooms and office space), change rooms, toilets and sheds.

At the Ordinary Meeting of Council on 14 November 2017 it was resolved that Council:

1. RECEIVES the Litis Stadium Master Plan as prepared by Floreat Athena Football Club Inc.;

2. ADVISES Floreat Athena Football Club Inc. that the Litis Stadium Master Plan does not provide the following information as requested by Council and deemed necessary to consider any long term lease arrangements:

2.1 Facility Management Plan;

2.2 Community Benefit Statement; and

2.3 Financial Plan demonstrating that the Club has the capacity to fund the project.

3. NOT ENTER into any long-term lease for Litis Stadium with Floreat Athena Football Club Inc. on the basis that the Club has not demonstrated an ability to meet the financial and management implications of the capital improvements, asset management and lease obligations relating to the existing facility and the facility proposed within their Master Plan;

4. REQUESTS that Administration now investigate the future use, management and development of Litis Stadium as part of the Britannia Reserve Master Plan Review scheduled for completion in 2019/20;

5. APPROVES a 2 year lease to Floreat Athena Football Club Inc. from 1 January 2018 to 31 December 2019 plus a further 1 year option from 1 January 2020 to 31 December 2020 for Litis Stadium, 41 Britannia Road, Leederville on the following key terms:

5.1 Term: 2 years plus 1 year option at the City’s absolute discretion;

5.2 Rent $5,000 plus GST (indexed to CPI) per annum;

5.3 Rates & Taxes: Lessee to pay including rubbish bin charges and ESL;

5.4 Outgoings: Lessee to pay;

5.5 Repairs & Maintenance: Lessee responsible for all repairs and maintenance and to keep premises clean and in good condition, this includes repair of damage due to fair wear and tear and structural maintenance. Lessor not responsible for any structural repair.

5.6 Minimum Level of Service: Lessee to pay for cost of statutory compliance, and pest inspections and treatment;

5.7 Insurance: Lessee to effect a public liability policy with cover not less than $20 million, and pay premium for building insurance policy;

5.8 Indemnification: Lessee to indemnify the City against all costs and claims;

5.9 Permitted Purpose: Sporting, recreational and community activities;

5.10 Shared Use: Lessee permitted to hire out clubrooms, function rooms and football pitch at its discretion provided that the use is consistent with the Permitted Purpose;

5.11 Alterations: Not without the prior approval in writing of the Lessor;

5.12 Capital Works: Not without the prior approval in writing of the Lessor and subject to the conditions stated;

5.13 Lessor’s Covenant: Lessor will provide Lessee with quiet enjoyment of the premises for the term of the lease;

5.14 Payment Without Delay: Lessee must duly and punctually pay all rent, rates and taxes, outgoings, costs and interest on the terms specified by the Lessor;

5.15 Nuisance and Incidental Use: Lessee must submit a Management Plan for approval in writing by the Lessor for any events commencing from and continuing beyond 5pm, any events with amplified or live music, and any national/international sporting events;

5.16 Parking & Traffic Management: Lessee must submit a Parking and Traffic Management Plan for approval in writing by the Lessor for any events with an estimated attendance above 1,000 people; and

5.17 Sporting Club Health Check: Lessee must submit a fully completed Sporting Clubs & Community Groups Health Check each year of the lease term upon request from the Lessor.

6. Subject to satisfactory negotiations being carried out by the Chief Executive Officer AUTHORISES the Mayor and Chief Executive Officer to affix the common seal and execute the lease in 5 above;

7. RECOMMENDS that Floreat Athena Football Club Inc. in collaboration with Football West progress the following initiatives over the term of the proposed new lease for Litis Stadium:

7.1 Investigate facility options that meet National Premier League Requirements, ensure long term financial and organisational sustainability, and maximise the use of community assets through co-location;

7.2 Prepare a Facility Management Plan that outlines strategies to effectively manage the Stadium and meet lease obligations;

7.3 Prepare a Financial Plan to determine organisational viability and capability as the basis for any future facility tenure arrangements; and

7.4 Implement strategic planning, governance, business model and community engagement initiatives as identified within the ‘Club Development Plan – Progress Report’ as submitted with the Litis Stadium Master Plan; and

8. REQUIRES Administration to present a further report to Council no later than June 2019 providing an update on progress by Floreat Athena Football Club Inc. towards:

8.1 Provision of the information referenced in Recommendation 2; and

8.2 Completion of the initiatives identified within Recommendation 7; as the basis for decision making regarding the further 1 year lease option from 1 January 2020 to 31 December 2020.

At the Ordinary Council Meeting held on 5 March 2019, Council resolved as follows:

“1. WELCOMES and SUPPORTS the announcement of $3 million from the Australian Government towards Litis Stadium improvement works through its Community Development Grants Programme.

2. REQUIRES Floreat Athena Football Club (Inc.) to collaborate with the City’s Chief Executive Officer, prior to the submission of any additional information to the Australian Government, to ensure that Litis Stadium improvement works funded through the Community Development Grants Programme are prioritised to deliver the greatest community benefit.

3. NOTES the request from Floreat Athena Football Club (Inc.) for in principle approval of a new five year lease arrangement for Litis Stadium to satisfy requirements associated with the Australian Government Community Development Grants Programme.

4. REAFFIRMS the intention to enter into a further 1 year lease option with Floreat Athena Football Club (Inc.) from 1 January 2020 to 31 December 2020 for Litis Stadium, 41 Britannia Road, Leederville subject to satisfactory completion of the following:

4.1 Preparation of a Facility Management Plan that outlines strategies to effectively manage the Stadium and meet lease obligations;

4.2 Provision of a Community Benefit Statement that identifies the positive community impacts associated with Club activities and any future facility tenure arrangements;

4.3 Preparation of a Financial Plan to determine organisational viability and capability as the basis for any future facility tenure arrangements;

4.4 Investigation of facility options that meet National Premier League requirements, ensure long term financial and organisational sustainability, and maximise the use of community assets through co-location; and

4.5 Implementation of strategic planning, governance, business model and community engagement initiatives as identified within the ‘Club Development Plan – Progress Report’ as submitted with the Litis Stadium Master Plan.

5. ADVISES Floreat Athena Football Club (Inc.) that suitable tenure arrangements for Litis Stadium beyond 31 December 2020, including but not limited to a new five year lease, will be negotiated subject to the outcomes of the abovementioned requirements;

6. NOTES that Administration will present a further report to Council no later than June 2019 providing an update on progress by Floreat Athena Football Club (Inc.) towards completion of the abovementioned requirements; and

7. REQUESTS that Floreat Athena Football Club (Inc.) provides the Chief Executive Officer with copies of all information being submitted to the Australian Government for the purposes of the Community Development Grant Programme by 31 March 2019.”

At the Ordinary Council Meeting held on 25 June 2019, Council resolved as follows:

“1. NOTES the following progress by Floreat Athena Football Club Inc. towards the specific initiatives as determined by Council in November 2017:

Facility Management Plan	Submitted
Community Benefit Statement	Submitted
Financial Plan	In Progress
Investigate Facility Options	In Progress
Implement Club Development Plan	In Progress

2. REQUESTS that the Chief Executive Officer form a Working Group comprising City of Vincent, Football West and Floreat Athena Football Club Inc. representatives to determine alternative tenure arrangements for Litis Stadium that better align with the Club’s organisational and financial capabilities while maximising community accessibility;

3. REQUESTS that the Chief Executive Officer works collaboratively with Floreat Athena Football Club Inc. and the Australian Government to secure $3 million through the Community Development Grants Program towards shared Club and community priority capital works at Litis Stadium and Britannia Reserve; and

4. NOTES that a further Floreat Athena Football Club Inc. – Litis Stadium Lease – Progress Report will be presented to Council no later than November 2019 to enable consideration prior to expiry of the initial two-year lease term on 31 December 2019.

As set out above, Floreat Athena Football Club’s current lease of Litis Stadium expires on 31 December 2019 and does not include any holding over provisions. As such, the Club will be required to vacate the site if further tenure arrangements are not approved by Council before the end of the year.

Over the past four (4) years, Administration has presented five (5) reports to Ordinary Meetings of Council which detailed and referred to concerns Administration held regarding the ongoing financial sustainability of the club. As such, it is now necessary for Administration to present a report to the Ordinary Council Meeting to provide a final update on the progress by the Club.

The Club have advised that in order for them to fulfil their preseason and NPL requirements, they will require Litis Stadium on Tuesdays and Thursdays prior to April annually.

details:

Administration has liaised with the Club over the past four (4) years regarding the current and future management of Litis Stadium. During this time, like many organisations with a long history, the Club has experienced numerous challenges including changes to the Club Board and financial difficulties which have impacted the Club’s ability to adequately progress the necessary organisational, financial and facility management initiatives requested by Council.

In an attempt to assist the Club with meeting the requirements of Council’s November 2017 resolution along with providing assistance with the $3 million funding from the Australian Government towards Litis Stadium improvement works through its Community Development Grants Programme, Administration has been meeting regularly with the Club since January 2018.

The discussions with the Club have varied in focus from discussing co-location options; seeking progress updates; considering the $3 million funding through the Community Development Grants Programme; facilitating meetings between potential summer groups; meeting new Board members; and discussing the clubs financial instability.

At a meeting held on 17 October 2019, Club representatives were advised that based on the information received to date, Administration would not be in a position to recommend to Council a long-term lease with Floreat Athena Football Club Inc. Instead, Administration would be recommending to Council a tenure option that would better align with the Clubs organisational and financial capabilities whilst providing opportunities for the broader community to access the facility and a rationalised asset that can be appropriately maintained.

The following table provides an update regarding the Clubs progress towards the range of organisational, financial and facility management initiatives that Council previously advised will guide any future lease at Litis Stadium:

	Documentation Requested	Documentation supplied	Administration comment
1.	Prepare a Facility Management Plan that outlines strategies to effectively manage the Stadium and meet lease obligations	An Asset Management Plan (Attachment 1) was submitted to Administration on 29 June 2017 and comprised of Club asset objectives and principles, scenario planning, agreed levels of service, and required asset management practices. A Lifecycle Cost Analysis was prepared and submitted on 28 July 2017 (Attachment 1) however, it has not yet been integrated with a Financial Plan to confirm the Club’s capacity to deliver upon the Asset Management Plan.	The Asset Management Plan identifies that it should be read in conjunction with the Strategic Plan, Business Master Plan and Development Plan. Clarity over the Business Master Plan and the Development Plan is required to understand how they integrate with the Asset Management Plan. A standard Facility Management Plan (FMP) is a formal planning tool that informs future operations of a facility, however FAFC have not provided a complete plan to date. A FMP must include a Financial Plan that provides past, present and projected financial data to assess viability. All assumptions made as well as risk factors and contingency plans are required to be outlined. The financial information provided and data contained within the Lifecycle Costs Analysis, which forms part of the Asset Management Plan, provides some relevant information but lacks sufficient detail. In addition, the five and ten year project budget forecasts are not consistent with the information contained within the Lifecycle Costs Analysis. A FMP should include a Human Resources Plan (or similar) to identify the structure and administrative processes required to manage a facility; a customer service plan; market research; future considerations and performance indicators. None of this information has been included.
2.	Prepare a Community Benefit Statement	The Club Development Plan (Attachment 2) submitted in 29 June 2017 identified strategies that FAFC were going to implement in order to maximise community benefit, including: · Find 30 for Fitness · School Football Clinics · Blind soccer · Co-tenants · Regular and casual use · Partnering for Health and Wellbeing	The Find 30 for Fitness is a work in progress and the Club’s technical director is liaising with Football West on starting a pilot program. As such, this has not yet been implemented. The School Football Clinics have been successfully implemented at Mount Hawthorn Primary School with club coaches, trainers and senior players conducting the sessions after school at Mount Hawthorn Primary School. Specifically, school football clinics have been implemented over the last 18-month period involving 120 local primary school aged children. In partnership with telethon, Manchester United foundation and Football West, the Club hosted an equal Football exhibition match. Perth Rangers Supporters Club have been a cotenant for over 5 years and use the Clubs clubroom base and Litis Stadium for Junior Ranger School academy sessions. The Club has also teamed up with a power chair football team who will play in next season’s power chair football competition at Loftus Recreation Centre. It is notable that co-location or shared use with other sporting teams or codes (beyond not-for-profit organisations being accommodated) has not been fully explored. A review of the organisations identified within the Community Benefit Statement also indicates that the site has not been opened up to the broader community for either casual or organised use.
		The club submitted an updated Community Benefit Statement (Attachment 2) on 10 June 2019 which provides details of the current Club membership, junior development initiatives and various community activities that take place at the Stadium, and benefits of sports participation.	Notably, this Community Benefit Statement is club centric and focuses on the club’s increased football membership, which showed that the club grew by 91 members in 2019, increased its female membership from 9 to 27 and had a membership made up of 42.41% City of Vincent residents. The statement lists the 21 junior and social clubs and organisations that have regularly utilised the stadium over the past two years.
		An addendum to the above Community Benefit Statement was submitted on 25 October 2019 (Attachment 2) which provides details on the clubs fees and charges; a Community Engagement Plan; Branding; Social Media; Newsletters and Website.	The updated Community Benefit Statement provides updated names of the 27 junior and social clubs and organisations that have regularly utilised the stadium over the past three years along with club specific initiatives and community engagement. A review of the organisations identified within the Community Benefit Statement also indicates that the site has not been opened up to the broader community for either casual or organised use.
3.	Prepare a Financial Plan to determine organisational viability and capability as the basis for any future facility tenure arrangements	FAFC has submitted numerous financials (Attachment 3) including: · FAFC 10-Year Operating Budget · July 2018 to June 2019 Profit and Loss Statement · July 2018 to October 2018 Profit and Loss Statement · July 2018 to May 2019 Profit and Loss Statement · November 2018 to June 2019 Profit and Loss Statement · 5 year operating budget forecast · Trading Account – June 2016 · Trading Account – June 2015 · Balance Sheet – June 2019 · Balance Sheet – October 2018 · Detailed Profit and Loss Statement – 2015/16 · Detailed Profit and Loss Statement – 2014-15 · Life Cycle Analysis · Club debt as at 2 October 2019 · Player registrations and associated costs	Whilst a Financial Plan identifying past, present and projected financial data has not been submitted, the Club has submitted numerous financials. The commentary surrounding the projected financials does not provide Administration with any confidence. As such, there is little evidence to support the Clubs capacity to meet the capital, operating and asset maintenance obligations associated with the future tenure of Litis Stadium. It should be noted that Administration requested copies of Audited Financials, however this has not been provided.
4.	Investigate facility options that meet National Premier League requirements, ensure long term financial and organisational sustainability, and maximise the use of community assets through co-location	No documentation for this has been provided.	The Club and Administration has been liaising with Football West regarding National Premier League facility requirements. This has confirmed that Stadium perimeter fencing is not a specific requirement for clubs participating in the National Premier League WA competition albeit all current clubs do have such fencing. In addition, spectator seating for a minimum of 120 people is required whereas the Stadium currently provides seating for 900 people. Discussions between Administration, Little Athletics, local primary schools and Floreat Athena Football Club Inc. occurred with a general consensus obtained that the club would investigate hosting trial little athletic clinics at Litis Stadium during the summer months. This matter has progressed with Mount Hawthorn Primary School P&C very interested in assisting in providing an 8 -10 week come and try program. A review of the organisations identified within the Community Benefit Statement also indicates that the site has not been opened up to the broader community for co-location or co-tenanting which was identified in the Community Development Plan June 2017.
5.	Implement strategic planning, governance, business model and community engagement initiatives as identified within the Club Development Plan Progress Report submitted with the Litis Stadium Master Plan in June 2017	No documentation has been provided with respect to the strategic planning or the business model or business model, however the Club Development Plan (Attachment 4) submitted in June 2017 does detail the Clubs governance model. Discussions have also been progressed with potential co-tenants and refurbishment of the grandstand under croft to accommodate these tenants, as is stated within the Clubs Australian Government Community Development Grants Program submission (Attachment 5).	The Club Development Plan identifies six revenue streams and suggests that strategies will be implemented to improve these areas. Whilst the Club has not stipulated strategies for each of the revenue streams, the following updates have been provided: · Membership – a club membership drive will be introduced in November for the upcoming AGM. Registration memberships have increased by 48% · Registration – New season registrations for NPL have commenced and will not exceed as numbers are capped. · Facility hire – rebranding the clubroom sections areas has provided the Club with a better understanding of the availability of room size availability. The regular associations and co-tenants continue to hire the facility and recently Football West and other coaching organisations have used the facility to host their weekly coaching courses using the main pitch for practical work and the venue room with the projector & screen. · Gate – no update · Fundraising – no update · Hospitality – the club has appointed new cooks and they have already started to take bookings for 2020 functions, private events, partnered association events and game day events. The Club Development Plan also states that the following strategies will be developed and implemented however no updates have been received: · Sustainable Business Model · Governance improvement action plan · 5 year strategic plan Administration has not been provided information or updates on the progress of the above strategies.

On 23 August 2018, Administration was advised by the Club that it had been awarded $3 million funding by the Australian Government towards the redevelopment of Litis Stadium through the Australian Government Community Development Grants Programme.

Administration has discussed this funding and the required programme outcomes, roles and responsibilities with the Department of Infrastructure, Transport, Cities and Regional Development. Under the Funding Agreement, there is an operational requirement of a 5 year tenure agreement in order for Floreat Athena to secure the funds. If lease arrangements are still under negotiation this would be dealt with through a risk mitigation strategy that would require the Club to provide evidence of the finalised lease arrangements at some point during the project deliverables.

As the Club has not provided the required documentation and project scope to the Department of Infrastructure, Transport, Cities and Regional Development a final assessment of the project has not been completed thereby providing an opportunity for the City to request to change the proponent of the project to allow the City to directly receive and administer the $3 million funding. This would enable the City to project manage the construction and upgrades of the stadium in a manner that provides a viable long term improvements that ensure access for the broader community.

Floreat Athena Football Club would be required to provide (in writing) an agreement to the City indicating that it would transfer the responsibility of the $3 million funding to the City for final delivery.

The removal of the fencing surrounding Litis Stadium was a key consideration identified within the club’s June 2017 Master Plan. The removal identifies that this would enable a better integration between the Club premises and Britannia Reserve and opens the area up to the broader community for use. Administration intends to remove this fence prior to the end of the year. The fencing surrounding Litis Stadium is in poor condition and past end of life with the estimated installation date being over 30 years ago.

Consultation/Advertising:

Administration has been liaising with the Club and a range of other key stakeholders over the last 21 months including Football West, Little Athletics WA, Department of Infrastructure, Regional Development and Cities and the Department of Local Government Sport and Cultural Industries.

Legal/Policy:

Local Government Act 1995 section 3.58 - Disposing of Property, provides that a local government can only dispose of property (which includes to lease) in accordance with section 3.58(3) unless the disposition falls within the scope of section 3.58(5), which includes:

“(d) Any other disposition that is excluded by regulations from the application of this section.”

In accordance with Section 3.58(5), Regulation 30 of the Local Government (Functions and General)

Regulations 1996 provides a range of dispositions that are exempt from the application of Section 3.58 of the

Act, including dispositions to:

“A body, whether incorporated or not the objects of which are of a charitable, benevolent, religious, cultural, educational, recreational, sporting or other like nature; and the members of which are not entitled or permitted to receive any pecuniary profit from the body’s transactions”

Floreat Athena Football Club are a sporting body and as such a lease provided to the club is exempt from the requirements of subsection 3.58(3)(d) of the Local Government Act 1995.

Risk Management Implications:

Medium: Administration has held ongoing concerns regarding the governance, financial sustainability, and asset management capabilities of Floreat Athena Football Club Inc. Recently, the board has undergone a major restructure and begun reviewing their organisational, financial and facility management, which is being presented to Council as part of this report.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Connected Community

Our community facilities and spaces are well known and well used.

Thriving Places

Our physical assets are efficiently and effectively managed and maintained.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

Under Floreat Athena Football Clubs current lease, the Club is responsible for the upkeep and maintenance of the main soccer pitch and surrounding green space. Should the City become responsible for these areas (with the exception of the clubrooms), it is anticipated that the City would be responsible for approximately $47,500 annually to ensure the greenspaces are maintained. Under the City’s current schedule of fees and charges, Administration applies an $80 per player, per season fee for matchplay and training for seniors. This equates to approximately $960 per soccer team per season.

Administration has completed a condition assessment and 10 Year Forward Works Plan on the structures contained with Litis Stadium. The grandstand is reaching end-of-life with the following compliance and risk issues;

· Sectionalised failures due to concrete cancer;

· Electrical infrastructure past end of life, increased level of risk and no longer compliant;

· Float glazing, absence of safety glass;

· No longer fit for purpose from a compliance perspective, non-compliant stairs, absence of fall arrest balustrading, lack of mobility access and fire compliance, emergency egress routes;

· Fit out within stadium (internal) past end of life and no longer fit for purpose; and

· General maintenance, safety and amenity not aligned with the City’s asset management plan, requiring renewal/upgrade investment.

The grand stand has significant cracks in some concrete elements, which are currently cordoned off. There is poor plumbing off the air-conditioning drain pipe on the upper storey with poor practice and dropped object hazards. In addition, there is rust discolouration on the underside of the grandstand concrete elements with steel reinforcing exposed to water ingress. The popcorn ceiling tiles are sagging significantly in the upper occasional gym area. The east and west Stadium toilets are deemed a class 10a non-habitable building. Given their conditions, these toilets are not open to the general public. As all of these buildings are close to end of life, demolition would remove any maintenance and renewal obligations on the City.

Assessments were also carried out on the scoreboard and turnstile buildings. The scoreboard is a small building that houses the electrical and electronic equipment for the scoreboard and oval lighting. It is also used as a storage facility. The roof design and poor sealing leads to water pooling and eventual penetration through the ceiling slab. The ceiling paint is damaged on the underside where the water pools. The stadium turnstile building is in poor condition. The building is now used for storage purposes as tickets are no long being sold from this location. The turnstiles are heritage listed. Budgets for reactive and preventative building maintenance across the portfolio are reviewed and set annually and take into account a number of factors, being condition, age, risk, fit for purpose and expected life. When a building or component is nearing end of life the assessment is determined to either maintain at a poor state, upgrade or rationalise. The building(s) within the Litis Stadium lease area are either nearing or past end of life and as a result, reactive maintenance would be kept at a minimum to keep the asset safe while a determination for future use is made.

The above costs would need to be considered and included within the City’s Long Term Financial Plan.

Comments:

While the Club is still seeking long term security for Litis Stadium, the documentation required by Council and submitted reaffirms Administrations ongoing concerns regarding the governance, financial sustainability, and asset management capabilities of the Club to manage and maintain the entire stadium site, with any new lease potentially exposing the City to a number of risks.

The Club has still not submitted a Facility Management Plan detailing a Human Resources Plan and a Financial Plan. Whilst the Asset Management Plan has been submitted, the lack of the provision of financial planning identifying past, present and projected financial audited data raises concerns that the Club are unable to demonstrate their capacity to meet current and future financial obligations. Administration is unsure how the Stadium will be effectively managed under any new lease arrangements.

Whilst a Community Benefit Statement has been provided and the Club does hire out the clubroom facilities and stadium pitch to other organisations, the broader community have not been engaged to the level expected and the community benefit derived from some of the Club’s initiatives is limited.

Based on the Club’s financial position, the quality of the information submitted, and what appears to be limited progress towards the specific requirements identified by Council, it is recommended that the Clubs tenure of the site be limited to the clubrooms only with the remaining areas to be managed and maintained by the City in order to maximise accessibility and utilisation, improve the integration of the stadium within Britannia Reserve and upgrade and manage the stadium buildings in a financial sustainable manner over the long term.

The financial information supplied by the Club has provided Administration with a certain level of confidence that they have the financial capability to pay the recommended lease fee, associated sportsground fees and clubroom related expenses, including maintenance, given the removal in the costs associated with the grandstand, change rooms, toilets, shed and ground maintenance.

Under the Community Development Grants Programme Funding Agreement, there is an operational requirement of five years of tenure in order for the Club to secure the funds. The City will work with the Club during the construction and upgrades of the stadium to ensure access for the broader community.

The recommendation to only provide a lease to the clubrooms is not intended to negatively impact the future of the Club but rather direct them towards facility arrangements that are more sustainable and better align with their financial and organisational capabilities. Shared-use arrangements and fee-for-hire arrangements will significantly improve community accessibility and utilisation of the site as an important community asset while reducing the clubs long term maintenance, facility management, financial and community obligations to a sustainable level.

The recommended lease arrangement will increase the costs to the City for ground maintenance, which will only be slightly offset by seasonal ground licence, resulting in additional costs for the City of approximately $45,000 annually. The building maintenance and renewal costs will be considered as part of the City’s Long Term Financial Plan but will require significant rationalisation of the assets given their very poor state. This would include the demolition of the grandstand and toilets and replacement of the change rooms as part of the Community Development Grants Programme Funding upgrades. The costs are considered appropriate in order to increase the occupancy and utilisation of this asset by the broader community through the creation of a multi-use facility that reflects the community’s expectations and prioritisation of uses that benefit the local community.

Council Briefing – LATE Agenda 5 November 2019

8 Chief Executive Officer

8.2 Lease of 246 Vincent Street, Leederville to Minister for Works - Department of Local Government, Sport and Cultural Industries

TRIM Ref: D19/160814

Author: Meluka Bancroft, Executive Manager Corporate Strategy and Governance

Authoriser: David MacLennan, Chief Executive Officer

Attachments: 1. Minister for Works' lease proposal dated 1 November 2019 ⇩

2. Plan of lease area and car parking bays ⇩

3. Valuation for 246 Vincent Street, Leederville - Confidential

Recommendation:

That Council:

1. APPROVES a new lease to the Minister for Works for the office building located at 246 Vincent Street, Leederville, on the following key terms:

1.1 Term: 10 years commencing 22 December 2019;

1.2 Option term: 5 years commencing 22 December 2029;

1.3 Rent: $300 per square meter per annum, equating to $754,800 per annum excluding GST;

1.4 Rent review: Annual rent increase of 3 per cent, market rent review at the commencement of the option term;

1.5 Lease Area: Office building (area of 2,516m²), including the basement carpark, and surrounding garden and outdoor areas, as shown in the plan at Attachment 1

1.6 Outgoings: Lessee to pay the estimated outgoings for each financial year via monthly instalments. The outgoings include the building insurance premium, management agency fees (up to 3 per cent of the annual rent), auditing of the outgoing statements, pest inspections and treatment, gardening and landscaping costs, utility and service costs, maintenance and repair of the premises including the plant and equipment, security costs, car park maintenance and repair costs, rubbish disposal and the emergency services levy;

1.7 Capital / structural works: City to undertake at its cost;

1.8 Managing agent: City to appoint a commercial managing agent, to be agreed with the lessee;

1.9 Permitted use: Office;

1.10 Indemnification: Lessee to indemnify the City against all costs and claims arising in respect to the Premises;

1.11 Car parking licence: Lessee may use the 21 secured car bays within the Leederville Oval Carpark between 7.30am and 5.30pm Monday to Friday for staff parking, and the 10 visitor bays within the Leederville Oval Carpark between 7.30am and 5.30pm Monday to Friday for visitor parking;

1.12 Car parking fee: 23 secure basement car bays - $225 per month per bay

21 secure car bays - $125 per month per bay

This equates to $93,600 per annum, indexed by CPI; and

1.13 Incentive: 40 per cent, equates to $3,019,840 over the 10 year lease term.

The incentive is applied against the rent, with up to $1.6 million to be allocated towards the lessee’s fit out (but not to be paid prior to 30 June 2020), with the balance to be amortised evenly over the remainder of the lease term;

2. Subject to final satisfactory negotiations being carried out by the Chief Executive Officer, AUTHORISES the Mayor and Chief Executive Officer to affix the common seal and execute the Deed of Variation and Extension of Lease to effect the new lease in recommendation 1. above; and

3. NOTES that the following capital works will be undertaken at the City’s cost, but not prior to 30 June 2020, subject to finalisation of the scope of the work and funding being secured in the 2020/21 budget:

3.1 upgrade and refurbishment of the bathroom facilities;

3.2 upgrade of the ground floor tea preparation area;

3.3 upgrade of the internal façade and lighting of the lift;

3.4 upgrade of the end of trip facilities, including the installation of more lockers in the bathrooms;

3.5 replacement of all lights with LED lights; and

3.6 installation of solar panels.

Purpose of Report:

To consider granting a new lease of the office building at 246 Vincent Street, Leederville (Premises) to the Minister for Works for use by the Department of Local Government, Sport and Cultural Industries (Department).

Background:

The office building is located on a portion of Leederville Oval, which is on Crown Reserve 3839. The reserve is vested in the City for the purpose of recreation, office and administration. In 2001 the City was awarded the tender from the State Government to construct an office building for the Department of Sport and Recreation. At the Ordinary Meeting of Council held on the 13 May 2003 Council approved the construction of the office building on the reserve.

On 2 October 2003 the Western Australian Planning Commission granted approval for the construction of the office building (Approval No. 33-50026-2) subject to the following condition:

‘1) The approved office building shall be used only for purposes associated directly with the management and administration of sport and recreation activities in Western Australia.

In order for the City to lease the building to another tenant condition 1 would need to be amended.

The City loaned $6.5 million from the Western Australian Treasury Corporation to fund the construction of the building, with a fixed interest rate for a period of 25 years. In calculating the loan repayment period it was assumed that the Minister for Works would lease the building for at least 20 years.

At the Ordinary Meeting of Council held on the 26 August 2003 (Item 10.4.2), Council granted a lease to the Minister for Works commencing on the 22 December 2004 (Lease). The Lease term was for an initial term of fifteen years, expiring on the 21 December 2019. The key Lease terms are:

Initial Term	15 years
Option Terms	3 terms of 5 years each
Lease Area	2,516m²– including the office building, basement carpark, secured carpark, 10 visitor bays and surrounding garden
Rent	$414,000 per annum
Rent Review	3% increase per annum
Outgoings	To be paid by the lessee

The Minster for Works has not exercised the first option term, which means the current Lease will expire on the 21 December 2019.

Details:

The Minister for Works and Administration have agreed on the terms of a new lease, as detailed in the lease proposal at Attachment 1. The new lease is generally consistent with the terms of the current lease, other than the rent and the use of the car parking bays.

The plan at Attachment 2 shows the revised lease area. The 21 secure car parking bays and the 10 visitor bays have been removed from the lease area so they are available for use by the public outside of business hours (7.30am – 5.30pm Monday to Friday) and on weekends. The Department can use the 21 secured bays for staff parking and the 10 visitor bays for visitor parking during business hours Monday to Friday.

Consultation/Advertising:

As the Department is a state government agency providing public notice of the proposed lease is not a statutory requirement.

Legal/Policy:

The Local Government Act 1995 section 3.58 - Disposing of Property, provides that a local government can only dispose of property (which includes to lease) in accordance with section 3.58(3) unless the disposition falls within the scope of section 3.58(5), which includes:

“(d) Any other disposition that is excluded by regulations from the application of this section.”

In accordance with Section 3.58(5), Regulation 30 of the Local Government (Functions and General) Regulations 1996 provides a range of dispositions that are exempt from the application of Section 3.58 of the Act, including dispositions to:

“(2)(c)(ii) A department, agency, or instrumentality of the Crown in the right of the State or the Commonwealth.”

The Department is a state government agency and therefore it is not necessary for the City to comply with section 3.58.

Risk Management Implications:

Low: The Department has leased the building since 2004 in accordance with the terms of the lease. The new lease provides the City with a reduced financial return, but provides long term security for the City in respect to the use of the premises. Therefore extending the lease to the Department is considered low risk for the City.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Connected Community

Our community facilities and spaces are well known and well used.

Thriving Places

Our physical assets are efficiently and effectively managed and maintained.

Innovative and Accountable

Our resources and assets are planned and managed in an efficient and sustainable manner.

SUSTAINABILITY IMPLICATIONS:

The City is undertaking a Commercial Building Disclosure assessment, which includes a TLA and NABERS assessment. The purpose of this assessment is to improve energy efficiency. The City is also proposing to replace all lights with LED lights and install solar panels, which will reduce electricity use.

Financial/Budget Implications:

The proposed rent of $300 per square meter equates to an annual rent of $754,800. The 40 per cent incentive means the effective annual rent the City would receive is $452,880 per annum. The City will also receive income from the car parking bays totalling $93,600 per annum. Therefore the annual income the City would receive from the Premises would be approximately $546,480.

Over the 10 year lease term the incentive would equate to approximately $3.02 million. It is proposed that the City would pay up to $1.6 million of the incentive towards the fit out, and that would be paid towards the commencement of the lease term, but not before 30 June 2020.

The rent based on the current lease as at the expiry of the lease (21 December 2019) would be $644,996. Therefore the City will receive approximately $1 million less than if the current lease was extended. It is considered that the market conditions have changed since the original rent was agreed with the Minister for Works, and on that basis it is not possible for the City to secure the same rent.

Administration received a market valuation for the premises in September 2018, at Attachment 3. The market valuation indicates that the effective annual rent the City could expect to receive would be about $640,000 per annum.

The Department has requested the City to undertake capital upgrade works during the first few years of the new lease term to modernise the premises. The estimated cost of these works is $750,000. The works would not be completed before 30 June 2020, which provides the City with time to finalise the scope of these works and include the works in the 2020/21 budget.

All other costs associated with the premises, including the building insurance premium, management agency fees (up to 3 per cent of the annual rent), auditing of the outgoing statements, pest inspections and treatment, gardening and landscaping costs, utility and service costs, maintenance and repair of the premises including the plant and equipment, security costs, car park maintenance and repair costs, rubbish disposal and the emergency services levy, are payable by the Minister for Works.

It is noted that some general maintenance works have been requested during the first year of the new lease, including internal painting. These costs are payable by the Minister for Works pursuant to the current lease and therefore will be recouped from the Minister for Works via the monthly outgoing instalments.

Comments:

The proposed lease provides the City with reduced financial return and requires the City to pay up to $1.6 million at the commencement of the lease term (but not before 30 June 2020). Due to the change in office accommodation market conditions and the restriction on the use of this building, entering into a new long term lease with the Minister for Works is the best option for the City.

Council Briefing – LATE Agenda 5 November 2019

8.10 Interim arrangement for the management of the Robertson Park Tennis Centre

TRIM Ref: D19/160403

Authors: Karen Balm, Senior Community Partner

Meluka Bancroft, Executive Manager Corporate Strategy and Governance

Authoriser: David MacLennan, Chief Executive Officer

Attachments: Nil

Recommendation:

That Council:

1. NOTES that the Tennis Seniors Association of Western Australia (Tennis Seniors) will terminate its monthly tenancy of the tennis club located at Robertson Park, 176 Fitzgerald Street, Perth, effective 12 November 2019;

2. APPROVES an interim management arrangement with the Tennis Association of Western Australia (Tennis West) in respect to the tennis club located at Robertson Park, 176 Fitzgerald Street, Perth, on the following key terms:

2.1 Term: 12 November 2019 to 31 March 2020;

2.2 Rent: $772 per month excluding GST;

2.3 Rates and taxes: Tennis West to pay, includes rubbish and recycling bin charges and emergency services levy;

2.4 Outgoings / utilities: Tennis West to pay;

2.5 Repairs and maintenance: Tennis West to keep the premises clean and in good repair having regard to the current condition of the premises. This includes repairing any damage due to fair wear and tear and to keep the premises safe;

2.6 Structural repairs: At the discretion of the City, this includes any structural repairs to the heritage huts. The City does not intend to undertake this work prior to 31 March 2020;

2.7 Capital works / upgrades: At the discretion of the City, this includes replacement / resurfacing of the tennis courts, bore and lighting. The City does not intend to undertake this work prior to 31 March 2020;

2.8 Emergency works: At the discretion of the City, this includes any major / structural emergency works, such as the failure of the bore. Council approval of the work will be required, and will depend on the cost and implications for the use of the premises;

2.9 Minimum Level of Service: Tennis West to pay for cost of statutory compliance (RCD, smoke alarm, emergency exit and fire hydrant testing) and pest inspections and treatment;

2.10 Insurance: Tennis West to effect a public liability policy, with cover not less than $20 million, and pay the City’s annual building insurance premium for the Premises;

2.11 Indemnification: Tennis West to indemnify the City against all costs and claims arising in respect to the premises;

2.12 Permitted purpose: Sporting and recreation facility, with associated commercial sporting and recreation purpose. Permitted hours of use are 6am to 10.30pm daily; and

2.13 Shared use: Tennis West will make the hardcourts available for use by the City, free of charge, when not required for coaching or pennants, for community sport.

3. Subject to final satisfactory negotiations being carried out by the Chief Executive Officer, AUTHORISES the Mayor and Chief Executive Officer to affix the common seal and execute the management arrangement in recommendation 2. above.

Purpose of Report:

To consider entering into an interim management arrangement with the Tennis Association of Western Australia (Tennis West) to facilitate the continued operation of the Robertson Park Tennis Centre upon the termination of the City’s lease with the Tennis Seniors Association of Western Australia (Tennis Seniors) on 12 November 2019.

Background:

The Robertson Park Tennis Centre is located at 176 Fitzgerald Street, Perth (Tennis Centre) on land owned in freehold by the City. The Tennis Centre comprises 38 tennis courts and a large social space / function room with a bar, commercial kitchen, office space and undercover area. Tennis Seniors has leased the Tennis Club since 1 September 1997. The current lease expired on 31 August 2017 and Tennis Seniors currently occupy the premises as a monthly tenant pursuant to the holding over provision of the lease.

Tennis Seniors notified the City on 3 October 2019 that it would be terminating the monthly tenancy effective 4 November 2019. Tennis Seniors subsequently confirmed on 31 October 2019 that it would continue to occupy the Tennis Centre as a monthly tenant until 12 November 2019 to coincide with the City’s 12 November 2019 Council Meeting.

Details:

The Tennis Centre is used by the community for coaching, court hire, pennants and tournaments. Tennis Central, a private tennis business, operates the coaching, court hire and pennants pursuant to an agreement with Tennis Seniors. The termination of the City’s lease with Tennis Seniors also results in the termination of Tennis Central’s arrangement with Tennis Seniors. Therefore on termination of the lease all tennis would cease at Robertson Park.

To prevent this occurring Tennis West has offered to take on the interim management of the Tennis Centre. Tennis West is a not for profit agency and would work with Tennis Central to provide the current services offered at the Tennis Centre. Tennis West would not receive any income from the court hire or coaching.

The proposed terms of the interim arrangement are consistent with the terms of the current lease between the City and Tennis Seniors. Importantly, any structural repairs or upgrades, including upgrades to the tennis courts, lighting, reticulation or bore, would be at the discretion of the City. If upgrade work was required during the term of the interim arrangement Tennis West could undertake this at its cost, subject to the approval of the City.

Administration is arranging a condition assessment of the Tennis Centre, which will identify if any capital, structural or other work is required. Depending on the nature of the work required, the City would liaise with Tennis Seniors, Tennis West or the future user in respect to undertaking the work.

The term of the interim arrangement is designed to provide the City with adequate time to assess the current condition of the Tennis Centre and determine its long term future use. It is not proposed that Tennis West would be involved with the Tennis Centre in the medium to long term. Any long term arrangement would also take into account the upgrade work that may be required.

Consultation/Advertising:

As Tennis West is a not for profit state sporting body providing public notice of the proposed management arrangement is not a statutory requirement.

Legal/Policy:

“(d) Any other disposition that is excluded by regulations from the application of this section.”

“(2)(c)(ii) A department, agency, or instrumentality of the Crown in the right of the State or the Commonwealth.”

Tennis West is a state government agency and therefore it is not necessary for the City to comply with section 3.58.

Risk Management Implications:

Low: Tennis West is the state governing body for tennis and has the resources to manage the Tennis Centre on an interim basis.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Connected Community

Our community facilities and spaces are well known and well used.

Thriving Places

Our physical assets are efficiently and effectively managed and maintained.

Innovative and Accountable

Our resources and assets are planned and managed in an efficient and sustainable manner.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

The monthly rent of $772 per month is based on 10 per cent of the gross rental valuation for the Tennis Centre, as calculated by Landgate. This is consistent with the City’s proposed approach for new leases, which will be formalised in the City’s Property Management Framework.

All outgoings associated with the Tennis Centre, including the utilities, building insurance premium, bin changes and emergency services levy, will be payable by Tennis West for the period of this interim arrangement.

Comments:

The term of the interim management agreement will align with the preparation of the Robertson Park Development Plan. By 31 March 2020 the City should be in a position to make a decision on the long term future of the Tennis Centre. The purpose of this arrangement is to ensure tennis continues uninterrupted over summer.