ordinary meeting 9 - city of cairns · 2015-03-17 · 195 agenda – ordinary meeting 28 november...

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Agenda – Ordinary Meeting 28 November 2012 - #3750290

ORDINARY MEETING

28 NOVEMBER 2012 9

NORTH QUEENSLAND SPORTS FOUNDATION – RENEWAL OF RESOURCE AND PERFORMANCE AGREEMENT

Ashleigh Lowe: 10/2/1 #3790304

RECOMMENDATION:

That Council:

a) approves the renewal of the Resource & Performance Agreement with the North Queensland Sports Foundation for a further three (3) years, expiring June 2015 with a total contribution over the term estimated at $148,445 ex GST;

b) approves an approach to the Foundation to host the 2013 NQ Sportstar Awards in Port Douglas in March 2013, noting the estimated cost of $40,000; and

c) delegates authority to the Chief Executive Officer in accordance with section 257 of the Local Government Act 2009 to negotiate and finalise all matters relating to the above Agreement and to the hosting of the Awards.

EXECUTIVE SUMMARY:

The North Queensland Sports Foundation (the Foundation) aspires to improve sporting opportunities within North Queensland. The Foundation draws its membership from 22 Local Government Authorities that make up the greater North Queensland region. This membership is used to deliver high quality opportunities across the state, which encourage and promote sport in the region. Each regional council makes an annual contribution to the Foundation to cover administration and operational costs associated with the Foundation’s activities. In return for Council’s annual contribution it is represented on the Foundation Board. Council’s membership with the Foundation provides many direct and indirect benefits including: a) Board Membership b) North Queensland Sports and Education Tours c) RACQ Games d) XSTRATA Great Western Games e) BHP Billiton Bursary Program f) Sportstar Awards Ceremony g) Green and Gold Club (regional recognition of local Australian representatives).

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The Resource & Performance (R&P) Agreement is the mechanism through which Council provides its contribution to the Foundation, which is tasked to encourage, promote, represent, develop, manage and communicate sport throughout North Queensland. In the past Council’s R&P agreement did not account for additional costs incurred as per its membership. This report seeks approval for the new Agreement to be executed and recommends that all activities be bundled up into the one agreement so as to more effectively represent the benefits of each party.

BACKGROUND:

The Foundation was started in 1983, through a membership of constituent Councils of the North Queensland region. Council has been a member of the Foundation since its inception. The Foundation makes available programs to all of its members which include:

North Queensland Sports and Education Tours RACQ Games XSTRATA Great Western Games BHP Billiton Bursary Program Sportstar Awards Ceremony Board Membership Green and Gold Club

The last Resource & Performance Agreement, which commenced July 2009, expired at the end of June 2012.

COMMENT: Council’s Resource & Performance Agreement with the North Queensland Sports Foundation has been amended to cover the forthcoming 3 financial years. The proposed R&P takes into account all additional costs required from Council outside of the membership fee. This report seeks approval for the new Agreement to be executed which includes all operational costs associated with the Foundation. It is noted that there have been additional costs incurred by Council outside of the previous R&P Agreement. These are as follows; i) RACQ NQ Games

A requirement of the host Council is to make an additional contribution of between $20,000-$60,000 towards the running of the games. In 2010 Council (as host) contributed to the staging of the NQ Games by way of a $25,000 (ex GST) cash grant and a $20,000 (ex GST) In-Kind grant from the Economic Development fund. .

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Council has received confirmation that that the 2016 RACQ North Queensland Games will be held in Cairns. Refer Attachment 2. These Games bring meaningful exposure to the city and to Council. 2016 will be the fifth time that the Cairns region has hosted the Games. This level of funding is expected when the Games are again held in Cairns in 2016.

ii) Sports Education Tours

The Foundation annually hosts Sports Education Tours throughout the top end. Councils are charged $330 (inc GST) per year per school visited in the Council catchment area. In 2012, three schools will be visited in Mossman at a cost of $990.

iii) Road Signage for NQ Games (2013/14 only)

Previously costs of $100 per event have been incurred by the S&R operating budget for the placement of road signage throughout the city for the marketing of the NQ Games in 2010 and 2012.

iv) NQ Sportstar Awards

These award ceremonies also incur additional costs to Council by means of ticketing, accommodation and transport.

a) Ticket Costs for 3 nominees PLUS 1 guest each 6 tickets = $400 b) 3 x accommodation – one night twin share $150 per room = $450 c) Nominal fuel subsidy/bus fare for each group $50 x 3 groups = $150 Total costs incurred for travel to NQ Sportstar Awards per year = $1,000 v) NQ Sportstar Awards Hosting Costs (2012/13 only)

Council is seeking to host the 2013 NQ Sportstar Awards in Port Douglas in March. As per the Guidelines set out by the Foundation, the host Council is required to coordinate, plan and execute all aspects pertaining to these awards.

Council’s membership of the Foundation enables it to host the NQ Games which provide a significant economic benefit to the region. Economic Benefit The 2010 Suncorp North Queensland Games held in Cairns attracted a total of 5,668 participants (of which 1,754 were visitors) competing in 45 sports. Many thousands of additional people attended the games, including family members and supporters. Using the economic assessment model, this equated to a total economic benefit of $3.7m to the Cairns economy.

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The recent 2012 RACQ North Queensland Games held in Mackay attracted 2,865 participants competing in 18 sports (of which 1,265 were visitors), which equated to a total economic benefit to the host city of $2.6m.

CONSIDERATIONS:

Corporate and Operational Plans: Goal 2 “To build more creative, innovative and self-reliant communities where participation in community life is enabled and encouraged.” Goal 5 “To increase the regions capacity for long term economic growth by supporting opportunities for local business and local employment” Statutory: The requirements of the Local Government (Finance, Plans and Reporting) Regulation 2010, Chapter 3 Financial Sustainability and Accountability, Part 4 Community Grant section are applicable and being met.

Policy: Council’s Community Grant policy provides provision for Council to consider requests for support and to respond with multi-year R&P Agreements Financial and Risk Council’s commitment over the term of the three year R&P agreement is estimated at $148,445 (ex GST), comprising $75,111.84 in 12/13, $36,205.20 in 13/14 and $37,128.35 in 14/15. As the annual budget is only $34,000, additional funding of $41,111.84 is required in 12/13. The total contribution of this R&P is broken down in detail below: i) Annual Contribution

With annual payments commencing in the 2012/2013 financial year of $33,111.84, future payments will be charged at 21.07 cents per person in the region. The amount which will be billed in July 2013 will be based on the next set of census figures if available. Refer Attachment 1. The costs below are indicative only, subject to annual calculation and agreement of apportionment of costs by The Foundation across Councils.

Financial Year Amount excluding GST 2012/2013 $33,111.84 2013/2014 $34,105.20 2014/2015 $35,128.35 Total Contribution $102,345.39

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To add to this, further costs which are incurred outside of the R&P agreement as per our membership to the Foundation include:

ii) Sports Education Tours Councils are charged $330 (inc GST) per school visited in the Council catchment area. In 2012, three schools will be visited in Mossman at a cost of $990 (prices subject to change per annum). Total costs of school visits over R&P agreement term = $3,000.

iii) Road Signage for NQ Games

$100 for the placement of road signage throughout the city for the marketing of the NQ Games in April 2014.

iv) NQ Sportstar Awards

Council pays for all associated costs for nominees’ and officers’ tickets, accommodation and transport for the NQ Sportstar Awards each year.

Over the course of this R&P Agreement Council will be required to contribute $3,000 towards the attendee’s Sportstar Awards costs

a) Ticket Costs for 3 nominees PLUS 1 guest each 6 tickets = $400 b) 3 X accommodation – one night twin share $150 per room = $450 c) Nominal fuel subsidy/bus fare for each group $50 x 3 groups = $150 Total costs incurred annually for NQ Sportstar Awards = $1,000 v) NQ Sportstar Awards Hosting Costs

Council is seeking to host the 2013 NQ Sportstar Awards in Port Douglas in March. To secure these awards Council would need to commit to the list of defined host responsibilities outlined in Attachment 3 (estimated to cost $40,000). The host council is required to coordinate, plan and execute all aspects pertaining to these awards. This estimate includes a $15,000 project management fee to source an event manager to coordinate the awards, sourced through either an internal project officer or an external consultant.

The Sportstar awards profile estimates are as follows;

Target participant numbers: 300 Target visitor numbers: 250 Expected duration of stay in region: 3-5 days

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NB: All figures exclude GST. Contribution 12/13 13/14 14/15 TotalAnnual Contributions $33,111.84 $34,105.20 $35,128.35 $102,345.39Sports Education Tours $1,000 $1,000 $1,000 $3,000Road Signage - $100 - $100NQ Sportstar Awards $1,000 $1,000 $1,000 $3,000NQ Sportstar Awards Hosting Costs

$40,000 - - $40,000

Total Contribution $75,111.84 $36,205.20 $37,128.35 $148,445.39

Sustainability:

The agreement will generate improved community benefit The agreement is currently budgeted for however will require an additional allocation of

funding from existing provisions

CONSULTATION: Extensive consultation has occurred in the formulation of this Resource & Performance Agreement between Officers and the NQ Sports Foundation.

OPTIONS:

That Council: 1. approves the Resource & Performance Agreement and allocates operational

funding to meet our contributions; 2. approves the Resource & Performance Agreement subject to amendments as

specified by the Councillors; or 3. does not approve the Resource & Performance Agreement.

CONCLUSION:

It is recommended that Council adopts the Resource & Performance Agreement and assigns appropriate operational funding to support supplementary activities and events as per the requirements of our membership

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ATTACHMENTS: Attachment 1: Council’s contributions to the NQ Games Foundation Attachment 2: Confirmation of RACQ North Queensland Games to be held in Cairns in

2016 Attachment 3: Guidelines to the Planning and Operation of the North Queensland

Sportstar Awards Ashleigh Lowe Partnerships and Development Officer Brett Spencer Manager Parks and Leisure Ian Lowth General Manager Community, Sport and Cultural Services

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Attachment 2: Confirmation of RACQ North Queensland Games to be held in Cairns in 2016

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ordinary meeting 9 - city of cairns · 2015-03-17 · 195 agenda – ordinary meeting 28 november...

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