Jetty Memorial Theatre Business Plan - Coffs Harbour City Council ...

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTS567

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanDisclaimerAny representation, statement, opinion or advice expressed or implied in thispublication is made in good faith but on the basis that R&S Muller Enterprise PtyLtd, its agents and employees are not liable (whether by reason of negligence,lack of care of otherwise) for any damage of loss, whatsoever which has or mayoccur in relation to that person taking or not taking (as the case may be) actionin respect of any representation, statement or advice referred within thisbusiness plan.CopyrightCopyright including all intellectual property vests in Coffs Harbour City Council.No part of this document maybe reproduced without prior permission in writingfrom the owners.AuthorR&S Muller Enterprise Pty Ltd provides community organisations and businesseswith 20 years of experience in consultation, stakeholder facilitation and resultsdriven strategy development. The business provides project management,strategic planning, business planning, marketing and media support, feasibilitystudies and corporate business skills training.Key DefinitionIn the compilation of this plan, it became apparent that the term communitytheatre, amateur theatre, and pro-am theatre are highly subjective definitions.The business plan uses the term “hirer(s)” to describe anyone hiring the venue,and this includes the community theatre, amateur theatre, and pro-am theatregroups. Hirers have been sub-classified as either non-profit or commercial. It isnot intended to be disrespectful to any past or present theatre group. The termhirer therefore, includes any existing or new commercial or non-profitorganisation or individual, wishing to hire the venue.Coffs Harbour City Council2568

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan4.3 - What would it look like? 724.4 - Why is it Recommended 744.4.1 o What will it Cost 744.4.2 o Who Will Pay 775 Market Research 815.1 - Who Participates in the Arts in Australia 815.1.1 o Market Segmentation of Arts Customers 825.1.2 o Performing Arts Centre Operations 875.2 - Tourism Trends 915.2.1 o Overall Tourism Trends 915.2.2 o Cultural Tourism 925.3 - Current JMT Customers 945.4 - Competition 966 Marketing Plan 996.1 - Marketing Objectives 996.2 - Marketing Terms – Definitions 1006.2.1 o The Unique Selling Position 1006.2.2 o The Brand 1006.2.3 o Customer Touch Points 1006.2.4 o Target Audience 1016.2.5 o Market Research 1016.2.6 o Paid VS Non-Paid 1026.3 - Target Audience 1026.3.1 o Customers 1026.3.2 o Supporters 1046.3.3 o Those Who Are Supported 1056.4 - Market Strategies 1066.4.1 o Strengthen Current Product Offering and 106Market Relevant Products to Each TargetAudience6.4.2 o Strengthen Relationships with Customers and 108Supports6.4.3 o Strengthen Brand and Do More Active 109Promotion6.4.4 o Improve Logistics to Enhance Customer 112Experience7 Organisational Plan 1157.1 - Current Organisational Structure for CHCC 1157.2 - New Organisational Structure for JMT 1167.3 - Establishment of the Management Committee 1177.4 - Relationship to Management Committee 1187.5 - Roles and Responsibilities 118Coffs Harbour City Council4570

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanAcknowledgementsR&S Muller Enterprise Pty Ltd would like to thank the following Jetty MemorialTheatre stakeholders for their significant input throughout the business planningprocess:Association of Coffs Community Theatre Societies IncBootlace Productions IncCoffs Harbour Arts Council IncCHATS Productions IncCoffs Harbour Musical Comedy Company IncCoffs Harbour Regional Conservatorium IncCurtainsUp Pty LtdCoffs Harbour & District Eisteddfod Society IncSeacrest Inc.In addition, we would like to acknowledge the information and support providedby the following Coffs Harbour City Council (CHCC) representatives:Mayor, Denise KnightJenni EakinsDavid BrammahAmy LakeBen LawsonEnzo AccadiaCoffs Harbour City Council6572

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 1:Introduction573

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan1. Introduction1.1 Purpose of the PlanThe Jetty Memorial Theatre Strategic Plan 2013 – 2018 (the JMT Strategic Plan)sets the strategic direction for the JMT over the next five years outlining thevision, values, goals, strategies and key performance indicators necessary toachieve success.It was formally adopted by Coffs Harbour City Council on the 13 th of December2012.The JMT Business Plan 2013 – 2015 (The JMT Business Plan) now provides theoperational detail to support implementation of the JMT Strategic Plan.The next three years will prove critical to the JMT in many ways and on manylevels.Firstly, this business plan will position the JMT as a central performing arts venuefor Coffs Harbour.Secondly, operational delivery will be based upon critically analysing andstreamlining the product offering.Thirdly, the financial operations of the facility will be aimed at curbing theexponential losses of the past five years, and positively improving what has beena stagnant revenue level.Finally, there will be renewed focus on quantifying Council’s operational andfinancial investment in the JMT.The JMT Business Plan is a positive move forward in the purposeful managementof a key community asset.Coffs Harbour City Council8574

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan Geelong Performing Arts Centre Business Plan 2010 – 11, Author unknown,2010 Glasshouse 2010/2011 Business Plan Summary, Author unknown, 2010 Jetty Memorial Theatre – Technical Specifications, Coffs Harbour CityCouncil, 2008 More Than Bums on Seats: Australian Participation In The Arts, AustraliaCouncil for the Arts, 2010 Redland Performing Arts Centre Business Plan 2009-2012, Author unknown,2009 Coffs Harbour Local Government Area Statistics - 2011 Census Quick Stats,Census data - Australian Bureau of Statistics, 2011 2011 Ticketing Software Satisfaction Survey, Technology In The Arts, 2011 2011 Economic Activity Report, Australian Performing Arts CentresAssociation, 2011Coffs Harbour City Council10576

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 2:Strategic Direction577

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan2. Strategic DirectionThe JMT Strategic Plan 2013-18 outlines the vision, goals, strategies and keyperformance indicators. These are the foundations of the business plan.2.1 VisionThe Jetty Memorial Theatre (JMT) is an intimate venue in Coffs Harbour for thecommunity to use and celebrate the presentation, promotion and nurturing ofexcellence in the performing arts.2.2 ValuesThe JMT values are:Passion for the Performing ArtsHonesty, Fairness and RespectTeamworkCommunity and CustomersSafety.2.3 GoalsThe JMT goals are to:Foster and promote a vibrant performing arts cultureEngage, inspire and entertain audiencesMaximise financial opportunities to deliver JMT’s performing arts ambitionsat a sustainable level.Coffs Harbour City Council12578

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan2.4 StrategiesTo achieve each of the three goals listed above, strategies were developed, alongwith key performance indicators to track progressGoal 1Foster and Promote a Vibrant Performing ArtsCultureStrategiesThe strategies to foster and promote a vibrant performing arts culture are:Implement best practice facility management, to allow efficient andeffective service provision to the customers and users of the JMTStandardise fees and charges for all service offeringsEnsure non-profit groups have access at standardised reduced rates,set for a three year periodHost a JMT patrons, members and volunteers thank you eventCreate opportunities for cultural tourism with regional tourism bodies,consider supporting organisations in the MICE (meetings, incentives,conference, events) marketWork collaboratively with other cultural organisations in terms ofprogramming and promotionParticipate in regional promotional activitiesPromote the benefits of both amateur and professional productionsSeek funding opportunities to access skill development programs in alloperating areas of the JMTHost an annual event for people working professionally in the performingarts, in collaboration with regional organisationsReinstate a JMT young performers strategy.Coffs Harbour City Council13579

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanKey Performance IndicatorsThe key performance indicators that will be used to measure achievement ofthese strategies are:Total attendanceNumber of events/performancesOccupancy ratesUser group satisfactionNumber of members, patrons and volunteersSponsorship, fundraising and grant incomeNumber of skill development programs deliveredMarketing coverage and reachNumber of youth involved in programs.Goal 2Engage, Inspire and Entertain AudiencesStrategiesThe strategies to engage, inspire and entertain audiences are:Develop a customer service charter for staff, volunteers and users of theJMTStandardise ticketing procedures for all JMT productionsDevelop and promote an annual program for the JMT for all usersDevelop a collaborative marketing strategy, and standard marketingparticipation for all users of the JMTBundle, promote and sell JMT product in new and innovative ways.Consider collaboration with other cultural and non cultural offeringsExpand and target programming to increase audiences, particularly newresidents and visitors.Coffs Harbour City Council14580

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanSet quotas for community productions, touring productions and coproductionsStandardise a customer feedback strategy for all activity at the JMTExpand the JMT program to include film and screen cultureIncrease cafe access opportunities for the communityDevelop a member and patron strategy.Key Performance IndicatorsThe key performance indicators that will be used to measure achievement ofthese strategies are:Customer satisfactionNumber of responses to customer surveyNumber of new names on the customer databaseOn-line accessLevel of participation in marketing initiativesCustomer satisfaction level of the annual programBundle sales figuresAttendance level of new residents and visitorsNumber of film and screen productionsCafe salesLevel of non-profit income against quota.Coffs Harbour City Council15581

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanGoal 3Maximise Financial Opportunities to Deliver OurPerforming Arts Ambitions at a Sustainable LevelStrategiesThe strategies to maximise financial opportunities to deliver our performing artsambitions at a sustainable level are:Develop and run the JMT on a business model that will cap costs;increase and diversify income.Build reserves for capital expenditure, and pool these reserves withthe existing Trust fundsBuild a shared commitment to financial targets with user groupsEstablish a maintenance protocol with corresponding fund raisingstrategy (and budget)Formally involve the community in the strategic management of theJMTReport quarterly and annual financial performanceSet a quota for commercial use of the JMTValue-add existing and expanding JMT servicesReduce all fixed costs, and move to contracted services with preferredsuppliers to replace staff costs where possibleMaximise the use of volunteersDevelop and implement an innovative IT strategy that will increaseefficiencies for the management, operation and financial performance ofthe JMTDevelop and implement a sponsorship strategy.Coffs Harbour City Council16582

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanKey Performance IndicatorsThe key performance indicators that will be used to measure achievement ofthese strategies are:End of year financial resultLevel of commercial income against quotaDelivery of asset maintenance planNumber of new business processes developedFinancial reserve levelReduced complaints from users about costsNumber of value-add services on offer and soldLevel of fixed costsNumber and hours of volunteer contributionNumber of online sales and systems.Coffs Harbour City Council17583

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 3:Situation Analysis584

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan3. The Situation AnalysisA situation analysis looks at the trends and events have the potential to affectstrategy.This chapter of the business plan identifies the external factors that are beyondthe control of JMT and then the internal factors (based on past performance ofthe organisation). Both focus on areas (factors) that may determine the futuredirection of the JMT.Fundamentally, the situation analysis aims to:1. Assess the market: What is happening externally and internally that will affect the JMT? What are the driving forces behind sales trends? What are important and potentially important markets? What is happening in the world that might affect the JMT?2. Assess the organisation: What do we do best? What are our resources – assets, intellectual property, and people? What are our capabilities?3. Assess the competition: What are the general market conditions of our business? What needs are there for our products and services?3.1 External PESTEL AnalysisThe PESTEL analysis is a summary of the key political, economic, social,technological, environmental and legal influences that may affect the businessplanning strategy for the JMT.Coffs Harbour City Council19585

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan3.1.1 PoliticalState Plan – 2021The State Plan 2021 is the NSW Government’s 10-year plan to guide policy andbudget decision-making and to deliver community priorities.Inter-Governmental AgreementIn 2012, an Inter-Governmental Agreement between LGSA and the NSWGovernment (NSW IGA) was signed. That agreement formalised the relationshipbetween the two sectors.Destination 2036The NSW Government has identified the need to improve the strength andeffectiveness of Local Government in NSW.Destination 2036 acknowledges the considerable transformation occurring in thedemographic, economic, technical and environmental changes. It is a long-termagenda that aims to lead NSW through the development of stronger partnershipsbetween Commonwealth, State and local government and the communities theyserve.Destination 2036 outlines five strategic directions for NSW Local Government:1. Efficient and effective Service Delivery2. Quality governance3. Financial sustainability4. Appropriate structures5. Strong relationships.Whilst no forced amalgamations have been promised within the first four-yearterm of the NSW Government, it is anticipated this will occur in the second termof office.Coffs Harbour City Council20586

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan3.1.2 EconomicCoffs Harbour City CouncilCoffs Harbour is undertaking a continuous improvement process (following onfrom the recent Service Review Process) to identify a consistent approach to allservice delivery - why services are delivered, how much they cost and theoutcomes achieved.These measures are in response to financial pressures being placed on theorganisation following thirty-five years of rate pegging, rising commodity pricesand community expectations for a broader range of services.Coffs Harbour City Council21587

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanNational Cultural Policy, August 2012The Australian Government provides core funding of more than $740 millionannually directly on art and cultural activities through a suite of fundingprograms and support mechanisms, including investment in 2011-2012 of:$570 million for cultural institutions and agencies$92 million for support programs for arts and culture projects, and$22 million support for non-profit organisations providing professionalartists’ training.The arts and cultural sector makes vital contributions to Australian society andthe economy in a number of ways including:Domestic economy – creative industries are worth over $30 billionannually to Australia’s gross domestic productEmployment – the arts and culture sector employs 285,000 people andhas more than 200,000 volunteersTourism – more than 51 per cent of all international visitors to Australiavisit a cultural or heritage destination contributing $26.9 billion to theAustralian economy each year, andCommunity participation – 15 million or 85 per cent of Australian adults,attend at least one cultural event or performance every year. If going tothe cinema is added to the list of cultural activities undertaken byAustralians, there is an even greater level of participation.Australian Shopping TrendsThe latest Household Expenditure Survey released by the Australian Bureau ofStatistics showed that Australian households spent an average of $1,236 eachweek on goods and services to June 2010 1 .The largest increase in average weekly household expenditure since 2003-04were:Current housing costs (selected dwelling), up to $80 (55%), due in part toincreased mortgage interest payments, up $35 (75%) and increased rentpayments, up $32 (68%)1 Source: 2009-10 Australian Bureau of Statistics Household Expenditure SurveyCoffs Harbour City Council22588

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan Food and non-alcoholic beverages, up $51 (34%) Recreation, up $47 (41%)Miscellaneous goods and services, up $37 (46%), partly due to increasedspending on education fees for primary and secondary schools, up $10(107%).The average weekly expenditure of households located in capital cities was$1,310, compared with $1,107 in areas outside of capital cities.Economic ConditionsSeveral major issues are currently impacting consumer sentiment (howconsumers are feeling about the economy). These include a flat housing market,a weakening job market, the global economic conditions and the rising Australiandollar.In the 12 months until November 2011, the average credit card limit grew 1% -the slowest growth since credit card limits were recorded 17 years ago.This shows that Australian consumers are being cautious and turning from‘spending to saving’. 2 This is supported by Australian Retailers Association Reportreleased in August 2012, that showed two thirds of survey respondents agreedsaving was more important than spending.2 Source: The Australian Financial Review, Card balance growth slides, Friday 13 January 2012Coffs Harbour City Council23589

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan3.1.3 SocialThe following section provides a snapshot of the demographics of the CoffsHarbour Local Government Area (LGA) 3 .Estimated Resident PopulationOver the past five years, Coffs Harbour has experienced an increase inpopulation of 5,489 persons, representing an average annual growth of 1.6%.This was higher than the average annual population growth for the Mid-NorthCoast (1.3%) and New South Wales (1.2%) over the same period.Population ProjectionsOver the period to 2036, the population of Coffs Harbour is expected to increaseby 30,123 persons – or an average annual rate of 1.3% to a population ofapproximately 101,800 persons. The growth rate for Coffs Harbour is higher thenthat forecasts for Mid-North’s Coast (0.8%) and New South Wales (0.9%) overthe same period.3 Source:http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/LGA11800?opendocument&navpos=220Coffs Harbour City Council24590

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanAge DistributionSince 2003, the average age for Coffs Harbour has increased by 1.2 years to39.6 years in 2008. By comparison, the average age for New South Wales was36.9 years in 2003, rising by 0.8 years to 37.6 years in 2008.EmploymentThe unemployment rate in Coffs Harbour is currently 7.2%. The unemploymentrate has fallen by 1.2% points from a recent peak of 8.5% recorded in the MarchQuarter 2009 but is higher than the average for New South Wales (6.1%) andAustralia (5.6%)Mean Taxable IncomeThe current mean taxable income is outlined in the table below.EducationIn Coffs Harbour Local Government Areas 29.8% of people were attending aneducational institution. Of these, 27.2% were in primary school, 23.9% insecondary school and 18.9% in a tertiary or technical institution.Coffs Harbour City Council25591

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanAncestryThe most common ancestries in the Coffs Harbour LGA are Australian 31.5%,English 31.2%, Irish 9.0% and Scottish 7.7%. (Of note, they are all Englishspeaking countries).In the area 4.1% of the population are Aboriginal, which is higher than the state(2.2%) and national average (4.5%).OccupationThe most common occupations in the Coffs Harbour LGA included Professionals17.8%, Clerical and Administrative Workers 14.2%, Technicians and TradesWorkers 14.2%, Managers 12.2%, and Community and Personal Service Workers11.8%.There were 30,524 people who reported being in the labour force in the weekbefore Census night in Coffs Harbour (C) (Local Government Areas). Of these50.6% were employed full time, 35.0% were employed part-time and 8.3% wereunemployed.Coffs Harbour City Council26592

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanOf employed people in Coffs Harbour (C) (Local Government Areas), 13.8%worked 1 to 15 hours, 10.9% worked 16 to 24 hours and 36.2% worked 40hours or moreFamily CompositionOf the families in the Coffs Harbour LGA, 37.4% were couple families withchildren, 42.6% were couple families without children and 19.0% were oneparentfamilies.3.1.4 TechnologicalThe following is a summary of the emerging trends and differences in the use oftechnology amongst arts and cultural organisations 4 . The results are based onresearch conducted with arts and cultural organisations.Over three-quarters of organisations with annual budgets of less then$500,000 spent under $5,000 on technology in the past year, while half ofthe organisations with budgets of $5 million of more spent over $100,000 Nearly half of the organisations with budgets between $2.5 million and $5million have no full-time technology staff, and that figure jumps to 82%for organisations with annual budgets of less then $500,0004 Arts & IT: Technology Adoption and Implementation in Arts Organisations, Technology In The Arts, 2010.Coffs Harbour City Council27593

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanOrganisations with annual budgets of less then $500,000 currently usestatic websites at a higher rate then dynamic websites, while all largerorganisations are more likely to have already moved away from staticwebsitesA large percentage of respondents, regardless of organisational budgetsize, did not respond with any specific technology plans for the next year,which may indicate an overall lack of planning for future technologyThere was an increasing trend towards organisations showing livebroadcasts of theatrical performances from companies of national andinternational caliber.National Broadband Network (NBN) rollout has commenced in Coffs Harbour.Details of further rollout (which may or may not include the JMT) are undefined.3.1.5 EnvironmentalCarbon TaxIt is expected that the recent introduction of the Carbon Tax in 2012 will seefuture impacts on the costs of products. It is also expected that fossil fuel energyuse will continue to increase exponentially.New Green ConsumerNational consumer trends indicate a growing proportion of people are making‘green choices’ when purchasing. Green credentials of organisations are alsogrowing in importance for consumers.3.1.6 LegislativeLocal Government ActLocal Government is a state Government responsibility and it is recognised in theNSW Constitution. It operates under state legislation, primarily the LocalGovernment Act 1993 and the Local Government (General) Regulation 2005.Currently the NSW Government is reviewing both the Act and the Regulation.This has the potential to sustainability change how local government currentlydoes business.Coffs Harbour City Council28594

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanIntegrated Planning and Reporting Framework (IP&R)A new planning and reporting framework for NSW Local Government wasintroduced in 2010 following the Local Government Amendment (Planning andReporting) Act 2009. This new framework is known as Integrated Planning andReporting (IP&R). Financial planning and reporting is an essential part of theIP&R.Workers Compensation Legislation, NSWThere are two primary pieces of legislation governing Workers’ Compensation inNew South Wales: Workers’ Compensation Act 1987 Workplace Injury Management and Workers’ Compensation Act 1998The Workers’ Compensation Legislation Amendment Act 2012 NO 53, was passedin June 2012. This Act makes amendments to both of the above Acts. Anadditional Act, the Safety, Return to Work and Support Bill 2012, creates a newBoard to oversee the operation of three authorities: WorkCover Authority, MotorAccidents Authority and Lifetime Care and Support Authority.Further legislative amendments are expected, and particular attention should bepaid to the definition of volunteers, and resultant requirements from Councils.Coffs Harbour City Council29595

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan3.2 PESTEL Analysis SummaryJe#y%Memorial%Theatre%Poli1cal%Economic%Social%Technological%%Environmental%%Legal%%• New StateGovernment visionfor the future willhave budget andservice provisionimplications for localgovernment• Destination 2036highlights likelihoodof future councilamalgamations• IP&R frameworkmandates forwardplanning, budgetingand reporting forstate accountability,not just local ratepayeraccountabilities• %Rate pegging, reducingCouncil capacity togenerate an income fromrate payers to meetincrease in service levelsexpected• National Cultural Planindicates future fundingsupport• Popularity of Australiansand tourists visitingcultural venues• Increasing service level expectation forlocal government• Positive role culture plays on the liveabilityof a region• Increasing in population, higher than theNSW average• Predicted population growth of 1.3% yearon year, to reach 101,800 people by 2036.• The average age of people in CoffsHarbour has increased by 1.2 years, incomparison to the NSW increase of 0.8years.• Unemployment rate has fallen (7.2%), butis still higher than NSW average (6.1%)and Australia (5.6%).• The most common occupation in CH wasProfessionals (17.3%) and then techniciansand trades workers(14%).• Between 2001-06 the Professionaloccupation class recorded the largestincrease in proportional share of residentemployment.• Mean taxable income has increased 4.9%higher than the state average increase of2.8%• Ancestral background diversity withEnglish, Irish, Scottish and German as thetop four behind the highest (Australianancestry)• Lower than the NSW average of peopleworking full-time, but higher for peopleworking part-time• 4.1% of the population are Aboriginalwhich is higher than the state (2.2%) andNational (2.5%) average• Impact of newtechnologies on theconsumption type andvolume of culturalactivities• NBN opportunities todeliver services in a newway, need to prepare forthese opportunities• New technologies toreduce environmentalimpacts• Increasing role forcouncil insustainability matters• Rising cost of carbonfuel sources• Growing demand forgreener products andservices byconsumers• %Review of workerscompensation Act• Duty of carestatutoryobligations formany aspects ofservice deliveryunder the NSWLocal GovernmentAct• Review of the LocalGovernment ActCoffs Harbour City Council30596

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan3.3 Internal AnalysisThe internal analysis has been completed using the past five financial yearsinformation obtained from Finance One (CHCC financial management software).In addition, SABO (booking software) reports have been generated to ascertainoccupancy levels. The consultation phase also identified a number of operationaldetails outlined in this chapter.The SWOT then provides a summary of theses findings.3.3.1 Current Financial SituationA comprehensive analysis has been completed on the financial records for theJMT. These records date back five years, compliant with taxation laws. There area number of key challenges with the data. They are:1. Financial information supplied is for a financial year. The JMT operates ona theatre season, which is a calendar year. Therefore financialreconciliation of two sets of data for different time periods has not beenpossible.2. Inadequate job numbers for expenses and income has resulted in clustersof information that has been hard to breakdown into meaningfulcategories. There has been limited information to cross referenceexpenses and income and therefore have relied on the memory of peopleto confirm specific details. The number of managers employed over thepast five years has further complicated this.3. The source documentation did not comprehensively list cost of sales fromthe expenses for running and holding costs, and therefore had to beestimated using general trends.4. Staffing costs, including on-costs of 52% have been removed in thecalculations for running costs, given the changes over the past few year tostaffing, and the resultant costs that have been incurred fortemporary/contract staff. They have also been removed, because thenumber and type of staff currently employed may not be required in thefuture.Coffs Harbour City Council31597

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanIncome and Expenditure AnalysisThe following data outlines the position of the JMT over the past five financialyears (2007/08 until 2011/12). The information has been gathered from financialreports supplied by Coffs Harbour City Council (CHCC). These are provided inappendix 1.Jetty Memorial Theatre Five Year Profit and Loss07/08 Actuals 08/09 Actuals 09/10 Actuals 10/11 Actuals11/12ActualsTotalIncome $193,632.91 $177,418.24 $179,505.03 $203,476.14 $177,296.27TotalExpenses $392,078.67 $404,388.03 $457,905.39 $549,084.30 $669,670.32NetProfit/Loss ($198,445.76) ($226,969.79) ($278,400.36) ($345,608.16) ($492,374.05)When looking at these figures, it is apparent that:The JMT has made a consistent financial loss each yearThe losses sustained have increased by $293,928.29 (a difference ofalmost 40%)The income has remained relatively consistent, with 2010/2011 generatingthe highest gross incomeIn comparison, the expenditure has risen from $392,078 in the leastexpensive year to $669,670 in the most expensive year. This representsan increase of $277,592 or 70%The most expensive year was also the least profitable year.Coffs Harbour City Council32598

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanCapital ExpenditureThe Australian Taxation Office (ATO) defines Capital Expenditure as any moneyspent on assets such as:Plant and equipmentGoodwillBuildingsBusiness namesPatents Copyrights 5 .JMT’s Capital Expenditure over the past five financial years is informed by theCHCC Capital Expenditure Report, which is provided at appendix 2. This reportshows the capital spent within the first three years with no other capitalpurchases occurring in the fourth and fifth years. It is unknown as to whether5 http://www.ato.gov.au/corporate/content.aspx?menuid=6751&doc=/content/8153.htm&page=1#P163_1297Coffs Harbour City Council33599

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plancapital improvements have taken place in the 2010/11 financial year. However,capital items to the value of $8,500 have been purchased during the 2011/12period. Details of this spend are not provided on the Capital Expenditure Report.For reporting purposes, expenditure would normally be recorded against JMT’scapital expenditure account. However expenditure on capital items has alsooccurred from: Councils maintenance budget (which has an annual allocation of $20,000)JMT working account fundsJMT Trust Funds (detailed in section below under Trust Account).Therefore, the total capital expenditure of $108,621.00 should be considered asan underestimate of the investment made by Council over the past five years. Itcould be as much as twice this amount.Funding%Source%JETTY%MEMORIAL%THEATRE%FIVE%YEAR%CAPITAL%EXPENDITURE%% %APACA%BENCHMARK%07/08% 08/09% 09/10% 10/11% 11/12%Actuals% Actuals% Actuals% Actuals% Actuals% %% % %%Federal%Govt% $0.00$ $0.00$ $0.00$ $0.00$ $0.00$ 0%$ $ 11.00%$Other% $0.00$ $0.00$ $0.00$ $0.00$ $0.00$ 0%$ $ 4.00%$State%Govt% $0.00$ $0.00$ $0.00$ $0.00$ $0.00$ 0%$ $ 34.00%$Local%Govt% $20,091.00$ $54,792.00$ $25,238.00$ $0.00$ $8,500.00$ 100%$ $ 51.00%$Total%Annual%Capital%Expenditure% $20,091.00% $54,792.00% $25,238.00% $0.00% $8,500.00% 100%% % 100%%Total%Capital%Expenditure% $108,621.00% % %Coffs Harbour City Council34600

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanITAL$$$$ther'0%'$60,000.00'$50,000.00'$40,000.00'JMT$FIVE$YEAR$CAPITAL$EXPENDITURE$07/08$

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanTrust AccountIn July 2003, the 355 Committee of Council overseeing the JMT ceased to existat the request of the community. Funds were transferred from an operationalaccount into a Trust Account, these funds included a $10,000 donation from theHogbin family. The trust account has been managed by CHCC since this time,as the Trustee of the funds and operates under a Trust Deed (refer to appendix 3for full details). On establishment, CHCC invested the trust funds into an interestbearing bank account with National Australia Bank. In 2011 the balance of thefunds was transferred to a new investment account with Westpac Bank.The JMT trust general ledger report is provided at appendix 4 outlines theindividual transactions that inform the JMT trust account income and expendituretable below. For the purpose of this report, the JMT trust general ledger reporttransactions have been categorised as either:Opening BalanceIncomeExpenditureInterest ReceivedInterest/Bank Fee Paid.These items correlate with the transactions from each financial year presented,and inform the opening and closing balances of each period.JETTY MEMORIAL THEATRE TRUST ACCOUNTINCOME AND EXPENDITURE 03/04 – 06/0703/04Actuals04/05Actuals05/06Actuals06/07ActualsOpening Balance $30,181.47 $33,461.96 $32,421.83 $27,384.32Income $3,235.00 $0.00 $0.00 $0.00Expenditure $0.00 ($2,268.36) ($6,870.97) $0.00Interest Received $45.49 $1,260.06 $1,869.86 $2,185.26Interest/Bank Fees Paid $0.00 ($31.83) ($36.40) ($0.11)Closing Balance $33,461.96 $32,421.83 $27,384.32 $29,569.47Coffs Harbour City Council36602

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanJETTY MEMORIAL THEATRE TRUST ACCOUNTINCOME AND EXPENDITURE 07/08 – 11/1207/08 Actuals 08/09 Actuals 09/10 Actuals 10/11 Actuals 11/12 Actuals$29,569.47 $32,236.23 $33,772.03 $31,921.29 $27,317.62$0.00 $0.00 $0.00 $0.00 $0.00$0.00 $0.00 $0.00 $3,133.93 $0.00$0.00 $0.00 ($3,000.00) ($9,054.21) $0.00$2,666.76 $1,535.80 $1,149.26 $1,316.61 $1,083.79$0.00 $0.00 $0.00 $0.00 $0.00$32,236.23 $33,772.03 $31,921.29 $27,317.62 $28,401.41Trust Account EstablishmentThe Trust Account was launched by the receipt of $30,181.47, which wasreceived within the 2003/04 financial year. The receipt was recorded as twoindividual transactions:$10,000.00 (July 2003) Donation from the “Hogbin family”$20,181.47 (June 2004) 355 committee of Council (operating account)Trust Account IncomeOn average, the main source of income has been interest with the total interestreceived over the nine years of investment of $13,112.89. This is an average of$1,456.99 per year.Other income totalling $6,368.93 is listed as being generated from the followingsources: $3,235.00 – proceeds from an event hosted in 2003/2004$3,133.93 – this income appears to be a recorded journal entry creditingthe trust account for funds spent in the previous period.Coffs Harbour City Council37603

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanTrust Account ExpensesPeriodic expenditure has occurred from the Trust Account within the yearsshown. The individual transactions are summarised below by year and furtherdetails of expenditure from the Trust are included in appendix 5 from theminutes of meetings from the community advisory committee, (established atthe refurbishment phase of the JMT).2004/2005$50.00 – Audit Certificate for the Jetty Trust$2,218.36 – Dimmer Rack, Cable, Pin Converter.2005/2006$1,738.24 – Staircase, CHATS$5,132.73 – Zoomspot 1000w Lamp Module Hook Lamp.2009/2010$3,000 – LSC Redback Dimmer 2RU.2010/2011$2,160.00 – Profile Lights, Sydney Theatre Co$897.86 – 288 LED Strobe Party Effect Light DMX 6C$42.57 – Bolts and Bar to hang new lights$49.81 – Courier Charges$940.00 – Stage Lighting Equipment LED Cloth$1,027.77 – Stage Lighting Stock$3,133.93 – Aluminium Tube and Gardening Edging (reversed in thefollowing period)$372.73 – 10 Ear Cussions for Headsets$93.97 – Outdoor Speakers$137.18 – Outdoor speakers$77.73 – 12v Transformer for deck LED Lighting$36.30 – PVC Box for Transformer$21.41 – 10a Switch and Braker for Lighting$63.95 – 10a Braker higher grade.Coffs Harbour City Council38604

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanInterest payments and bank fees make up the balance of payments out of theTrust Account.Trust&Account&Summary&$30,181.47*$28,632.15*$21,193.54*$13,112.92*$6,368.93*$68.37*Opening*Balance* Income* Interest*Received* Expenditure* Interest/Bank*Fees*Paid* Closing*Balance*3.3.2 Current Situation Venue CostsThe following definitions should be used when interpreting the data below:Mothball costs – Costs if the venue was in a non-operational stateHolding costs – Venue is open for business, but sales are not madeRunning Cost – Mothball costs plus the holding costsCost of sale - Costs that are incurred only when sales are made.Explanation on Calculations:Whilst past figures have been used to establish the costs used in this section,these figures are not to be used to reconcile against past expenditure onany particular year. Rather, they have been reviewed to establish trends orbenchmarks. Substantial time has been invested in the review of multiple financereports, and the authors are satisfied that they are a true representation ofexpenditure, with major anomalies identified and removed.For the expenditure report from Finance One, please refer to appendix 1 andappendix 6.Coffs Harbour City Council39605

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanMothball CostsMAINTENANCE%SAFETY%MOTHBALL%COSTS%ANNUAL%Building$ Rates$ $400.00$Gardens$Building$Hand$Mowing$ $762.00$Herbicide$ $322.00$Alarm$points$and$venting$ $990.00$FIP$monitoring$$ $1,500.00$FIP$maintenance$ $943.00$Light$and$Exit$signs$$ $841.00$Security$System$ $500.00$Security$Patroling$$ $2,850.00$Pest$Control$ $1,000.00$INSURANCE% Building+$contents$ Statewide$$ $11,000.00$%% Total%Mothball%Costs% $21,108.00%Total%Shut%Down%Costs%including%a%20%%Contingency% %% %% $25,329.60%This equates to $488/week or $69/day.Holding CostThe table below outlines the mothball costs and holding cost combined. Thisestablishes the running cost of the JMT. Please note that all costs associatedwith staffing have been removed to give a clear picture of the financial impost ofhaving the JMT open and ready for business.MAINTENANCE%BUILDING%IT%HOLDING%COSTS%ANNUAL%General$Maintenance$ Tools$&$Sundry$ $2,280.00$Sound$System$ Mixed$cost$ $5,000.00$Lighting$Rig$Globes$for$projector$ $1,000.00$Globes$(Other)$ $3,000.00$Piano$ Tuning$ $720.00$Technical$Support$ 3$days$p/month$retainer$ $4,500.00$Plumbing$ Plumbing$repair/maintenance$ $528.00$Sanitary$Disposal$ Scheduled$ $1,872.00$Cleaning$ Scheduled$$ $968.00$Air$Conditioning$ Maintenance$$ $832.00$Other$ Disabled$access$$ $12,000.00$Communication$ADSL$ $1,056.00$Phones$(4$lines)$ $3,966.00$EFTPOS$ $504.00$Coffs Harbour City Council40606

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan% $ Fire$alarm$monitoring$line$ $240.00$FIRST%AID% Personal$ First$aid$&$PPE$ $700.00$OFFICE% Printing$ Copier$lease$and$printing$ $2,848.00$UTILITIES%LICENSING%Water/sewage$ Water/sewages$ $571.00$Power$ Power$Direct$ $7,500.00$Waste$ CHCC$ $460.00$Vehicle$ CHCC$ $6,126.12$OGLR$ OGLR$ $500.00$APRA$ APRA$ $300.00$PPCA$ PPCA$ $300.00$Total%Holding%Costs% %% $57,771.12%This equates to $1,110.83 p/week or $158.28 p/dayMiscellaneous CostsThe following costs have been apportioned from expenses as they are consideredexpenses that are incurred only when performances are held (technically a costof sale).However, they are estimates only. For example, the annual electricity costs forthe JMT is $15,000. However, it is considered that 50% is a fair estimate forusage for performances based on the venue usage. (It is noted that in the past,meter readings have been used to ascertain and bill for electricity used.However, this process would then incur a time/administration cost.)MISCELLANEOUS%COSTS%Annual%Cost%IT% Communication$ Mobiles$(2)$ $240.00$BANK% Fees$ Fees$ $2,212.00$UTILITIES% Power$ Power$for$cost$of$sales$ $7,500.00$%% Total%Miscellaneous%Costs% %% $9,952.00%This equates to $191.38 p/week or $27.27 p/day.Coffs Harbour City Council41607

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanRunning CostThe running cost is the combined mothball, holding and miscellaneous costs.MAINTENANCE%SAFETY%RUNNING%COSTS%%% %% %% %%MOTHBALL%COSTS%ANNUAL%Building$ Rates$ $400.00$Gardens$Building$Hand$Mowing$ $762.00$Herbicide$ $322.00$Alarm$points$and$venting$ $990.00$FIP$monitoring$$ $1,500.00$FIP$maintenance$ $943.00$Light$and$Exit$signs$$ $841.00$Security$System$ $500.00$Security$Patroling$$ $2,850.00$Pest$Control$ $1,000.00$INSURANCE% Building+$contents$ Statewide$$ $11,000.00$%% Total%Mothball%Costs% $21,108.00%Total%Mothball%Costs%including%a%20%%Contingency% %% %% $25,329.60%MAINTENANCE%BUILDING%IT%HOLDING%COSTS%ANNUAL%General$Maintenance$ Tools$&$Sundry$ $2,280.00$Sound$System$ Mixed$costs$ $5,000.00$Lighting$Rig$Globes$for$projector$ $1,000.00$Globes$(Other)$ $3,000.00$Piano$ Tuning$ $720.00$Technical$Support$ 3$days$p/month$retainer$ $12,000.00$Plumbing$ Plumbing$repair/maintenance$ $4,500.00$Sanitary$Disposal$ Scheduled$ $528.00$Cleaning$ Scheduled$$ $1,872.00$Air$Conditioning$ Maintenance$ $968.00$Other$ Disabled$access$$ $832.00$Communication$ADSL$ $1,056.00$Phones$(4$lines)$ $3,966.00$EFTPOS$ $504.00$Fire$alarm$monitoring$line$ $240.00$FIRST%AID% Personal$ First$aid$&$PPE$ $700.00$OFFICE% Printing$ Copier$lease$and$printing$ $2,848.00$UTILITIES%Water/sewage$ Water/sewages$ $571.00$Power$ Power$Direct$ $7,500.00$Waste$ CHCC$ $460.00$Vehicle$ CHCC$ $6,126.12$Coffs Harbour City Council42608

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanLICENSING%OGLR$ OGLR$ $500.00$APRA$ APRA$ $300.00$PPCA$ PPCA$ $300.00$Total%Holding%Costs% %% $57,771.12%MISCELLANEOUS%COSTS%Annual%Cost%IT% Communication$ Mobiles$(2)$ $240.00$BANK% Merchant$fees$ Merchant$Fees$ $2,212.00$UTILITIES% Power$ Power$for$COS$ $7,500.00$%% Total%Miscellaneous%Costs% %% $9,952.00%TOTAL%RUNNING%COSTS% $93,052.72%This equates to $1,789.48/week or $254.94/day.A reminder these costs do not include staff, for full details refer to appendix 1and 6.3.3.3 Current Situation Café SalesUsing a sample of the 2012 touring show season, the table below outlines theaverage spend per ticket sold.2012%TOURING%SHOW%AVERAGE%CAFÉ%SPEND%%SHOWS%% CAFÉ%SALES% TICKETS%SOLD%AVERAGE%SPEND%PER%CUSTOMER%Gene$Peterson$ $241.00$ 214$ $1.13$Let$the$Sunshine$ $871.00$ 271$ $3.21$Bugalugs$Bum$Thief$ $100.00$ 203$ $0.49$Comedy$Roadshow$ $1,579.50$ 489$ $3.23$I,$Bunyip$ $63.80$ 129$ $0.49$Biddies$ $507.90$ 219$ $2.32$Circa$ $779.40$ 439$ $1.78$$Motherhood$ $708.40$ 473$ $1.50$Happy$Birthday$Peter$Rabbit$ $135.00$ 433$ $0.31$Marialy$Pachecco$ $340.90$ 158$ $2.16$Treasure$Island$ $85.50$ 141$ $0.61$Chasing$the$Lollyman$ $131.00$ 122$ $1.07$David$Scheel$ $395.00$ 188$ $2.10$Diving$For$Pearls$ $294.20$ 254$ $1.16$Katie$Noonan$ $632.50$ 249$ $2.54$Caravan$Burlesque$ $1,712.00$ 455$ $3.76$The$Flood$ $151.00$ 76$ $1.99$Ladies$Night$ $610.50$ 155$ $3.94$The$Gigoryan$Brothers$ $538.50$ 242$ $2.23$Coffs Harbour City Council43609

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanTOTAL%SHOWS% TOTAL%CAFÉ%SALES% TOTAL%TICKETS%SOLD% AVERAGE%SPEND%PER%CUSTOMER%19 $9,877.10 4910 $1.90Using a sample of the 2012 community shows, the table below outlines spendper ticket sold.NOTE: Gross income only, cost of sale (merchandise and wages) has not beendeducted.2012%COMMUNITY%SHOWS%CAFÉ%SPEND%SHOWS% CAFÉ%SALES%% TICKETS%SOLD%AVERAGE%SPEND%PER%%CUSTOMER%2012$Wintersun$ $442.50$$ 603$ $0.74$$2012$Dance$Eisteddfod$Gala$Concert$ $645.50$$ 231$ $2.79$$2012$Platform$12$HSC$showcase$ $182.00$$ 122$ $1.49$$2012$Summer$of$the$Seventeenth$Doll$ $1,975.55$$ 555$ $3.56$$Two$Doors$Down$$ $2,174.00$$ 556$ $3.91$$KING$LEAR$Shakespeare's$Ultimate$Tragedy$$ $2,314.50$$ 420$ $5.51$$AURORA$GUITAR$ENSEMBLE$Sunday$Soundscapes$#5$ $152.00$$ 203$ $0.75$$BANDALUZIA$Sunday$Soundscapes$#4$ $395.20$$ 249$ $1.59$$SYDNEY$BRASS$Sunday$Soundscapes$#3$(copy)$ $298.40$$ 248$ $1.20$$Soundlabyrinth$Sunday$Soundscapes$ $279.00$$ 248$ $1.13$$WHEELERS$AND$DEALERS$Sunday$Soundscapes$#2$ $178.50$$ 250$ $0.71$$Christmas$at$Jetty$Variety$Show$ $298.50$$ 40$ $7.46$$CHAC$Presents$The$Silk$Road$ $551.00$$ 149$ $3.70$$Djembe$Stars$ $26.00$$ 92$ $0.28$$Morning$Tea$with$Alex$Hood$ N/A$ 6$ $0.00$$My$Husband's$Wild$Desires$Almost$Drove$Me$Mad$ $3,666.20$$ 926$ $3.96$$Disney's$Beauty$&$The$Beast$2012$ $9,982.30$$ 2814$ $3.55$$Sweet$Charity$2012$ $6,759.20$$ 1719$ $3.93$$The$39$Steps$ $1,267.95$$ 545$ $2.33$$TREAD$$ $438.20$$ 295$ $1.49$$Janison$Short$Sharp$Film$Festival$ $642.40$$ 204$ $3.15$$TOTAL%SHOWS% TOTAL%CAFÉ%SALES% TOTAL%TICKETS%SOLD% AVERAGE%SPEND%PER%CUSTOMER%21 $32,668.90 10,475 $3.13The average spend at the café per ticket sold was $3.13 for community showpatrons.Coffs Harbour City Council44610

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanNOTE: Gross income only, cost of sale (merchandise and wages) has not beendeducted.Average mark-up of Café itemsAn analysis of the income from café for the past five years was $93,500 withtotal expenses of $51,000. This equates to an average income of $18,700 peryear and an average expense for merchandise of $10,200 per year.When using the 5-year average, we can see that the cost of sales for caféproducts is 45% (not including wages) and the average mark-up is 85% on eachproduct.These costs do not include staff wages.3.3.4 Current Situation Venue UtilisationThe venue utilisation covers the total shows, performances and gross incomeachieved over the last 6 seasons (calendar year). A collation of the venue’sactivities from the 2007 to 2012 has been provided and analysed for bothcommunity (hirer performances) and commercial usage (Council promotedtouring shows). This information can be found at appendix 7. Past utilisationthat was difficult to determine has been categorised as ‘other’.Coffs Harbour City Council45611

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanJETTY%MEMORIAL%THEATRE%VENUE%UTILISATION%COMMUNITY VENUEUTILISATION 2007 2008 2009 2010 2011 2012* Sold Seats 3219 2312 6983 8928 10245 8802* ComplimentarySeats 278 250 1228 1245 0 1003Total Seats 3497 4570 8211 10173 10245 9805Community Show #s 7 8 14 16 12 16CommunityPerformance #s 47 55 68 83 75 92Gross Income$42,176.00 $88,481.00 $128,091.00 $177,935.00 $175,184.40 $167,093.52Average Ticket Price$13.10 38.27 $18.34 $19.93 $17.10 $18.98Average Ticket Price 2007 - 2012 $20.95Adjusted Average* Ticket Price $18.60COMMERCIALVENUEUTILISATION 2007 2008 2009 2010 2011 2012* Sold Seats 5561 7089 5228 4708 5611 5625* ComplimentarySeats 459 462 551 535 0 11Total Seats 6020 7551 5779 5243 5611 5636* Venue Hire Show #s 10 9 8 3 6 10* Touring Show #s 11 13 13 13 18 19Total CommercialShow #s 21 22 21 16 24 29CommercialPerformance #s 35 48 57 32 43 63Gross Income $133,699.00 $181,364.00 $135,995.00 $140,431.00 $125,705.30 $131,020.00Average Ticket Price $24.04 $25.58 $26.01 $29.83 $22.40 $23.30Average Ticket Price 2007 - 2012 $25.19Adjusted Average* Ticket Price $25.40OTHER VENUEUTILISATION 2007 2008 2009 2010 2011 2012* Sold Seats N/A 0 0 240 2462 0* Complimentary Seats N/A 0 0 38 0 0Total Seats 0 0 0 278 2462 0Other Show #s 3 0 0 4 21 0Other Performance #s 2 0 0 3 43 0Gross Income $0.00 $0.00 $0.00 $4,139.00 $36,504.84 $0.00NOTE 1: 2012 data was provided and analysed in November 2012.NOTE 2: Adjusted average – This is an average of the data provided between 2009 to 2012 as requested bycommunity user groups to reflect the period of time when the JMT was not used at normal levels due to usergroup issues with Council.NOTE 3: All data is from SABO, however this will not include cash taken for door sales from community showsas these are not disclosed to the Theatre Manager.Coffs Harbour City Council46612

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanTotal ShowsCommunity Show #s Commercial Show #s21Total Shows 29Community Show #s Commercial Show #s242222 2321292122142116 161224162215 2312781416 1612161215782007 2008 2009 2010 2011 2012 Average AdjustedAverage*2007 2008 2009 2010 2011 2012 Average AdjustedAverage*Average Number of ShowsCommunity Show #sAdjusted Average* NumberCommercial Show #sof ShowsCommunity Show #sCommercial Show #s35%Number of Shows AdjustedAverage*Community Show #sAverage Commercial Number Show of Shows #sCommunity Show #sCommercial Show #s39%65%39%61%35%61%Total Performances65%Community Performance #s Commercial Performance #s92475548685783754363704679.548.7535322007 2008 2009 2010 2011 2012 Average AdjustedAverage*Adjusted Average* Number ofAverage Number ofPerformances Coffs Harbour City Council PerformancesCommunity Performance #sCommercial Performance #s47613Community Performance #sCommercial Performance #s

3532Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan2007 2008 2009 2010 2011 2012 Average AdjustedAverage*Average Number ofPerformancesNumber of PerformancesAdjusted Average*Community Performance #sCommercial Performance #sCommunity Performance #sCommercial Performance #s40%60%38%62%Total Seats SoldCommunity Sold Total Seats Seats Commercial Sold Sold SeatsCommunity Sold Seats Commercial Sold Seats102458928102458802874070896983892888026748874055617089556132192312321923126983 52285228470847085611 5625 563767485611 5625 5637529352932007 2008 2009 2010 2011 2012 Average AdjustedAverage*2007 2008 2009 2010 2011 2012 Average AdjustedAverage*Average Number of Seats SoldAdjusted Average* Number ofCommunity Seats Sold Sold SeatsCommercial Sold SeatsCommunity Sold SeatsCommercial Sold SeatsNumber of Seats Sold AdjustedAverage*Average Number of Seats SoldCommunity Sold SeatsCommercial Community Sold SeatsCommercial Sold Seats46%38%38%54%62%46%62%54%Coffs Harbour City Council48614

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanVenue Gross IncomeCommunity Gross IncomeCommercial Gross Income$200,000.00$180,000.00$160,000.00$200,000.00Community Gross IncomeVenue Gross IncomeCommercial Gross Income$140,000.00$180,000.00$160,000.00$120,000.00$140,000.00$100,000.00$120,000.00$80,000.00$100,000.00$60,000.00$80,000.00$40,000.00 $60,000.00$20,000.00 $40,000.00$20,000.00$0.00$0.002007 2008 2009 2010 2011 2012 Average AdjustedAverage*2007 2008 2009 2010 2011 2012 Average AdjustedAverage*Average Gross IncomeAdjusted Average* GrossIncomeCommunity Gross IncomeCommercial Community Gross Gross Income IncomeCommercial Gross IncomeGross Income AdjustedAverage Average* Gross IncomeCommunity Gross IncomeCommercial Gross IncomeCommercial Gross Income45%52%48%55%45%52%48%55%Average Ticket PriceTicket Price CommunityTicket Price Commercial$45.00$40.00$35.00$30.00$25.00$20.00$15.00$10.00$5.00$0.002007 2008 2009 2010 2011 2012 Average AdjustedAverage*Coffs Harbour City Council49615

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan3.3.5. Current Situation of Council PromotedTouring ShowsOccupancyIt is essential to evaluate the success or otherwise of touring shows as Councilhas been the promoter or “risk taker” around such investments. The selection,pricing and promotion of these performing arts ‘products’ are under the controlof Council.Using the 2012 touring show season, the table below shows occupancy data.This is an indication of how the venue has performed in terms of attractingaudiences. It also shows the gross profit and loss by show. No running costs areincluded in these figures. However all cost of sales including additional staff havebeen taken into account.Gross income is from ticket sales only and does not include proceeds from Cafésales. For simplicity, the average occupancy is calculated on a venue capacity of247 patrons.NOTE: caution is recommended in the use of this data. It is not intended as atool to compare the financial outcomes of community shows against Councilpromoted touring shows, given no such analysis of the community program hasoccurred. It is beyond the JMT’s (CHCC) scope to control, influence or requestfinancial information from user/hirer organisations.Coffs Harbour City Council50616

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanSHOWS PERF TK SOLDOCCUPANCY%GROSSINCOMEGROSSEXPENSESGROSSPROFIT/LOSSGene Peterson 3 214 29% $5,165.50 $9,710.46 ($4,544.96)Let the Sunshine 3 271 37% $7,861.25 $25,560.46 ($17,699.21)Bugalugs BumThief 3 203 27% $2,818.00 $8,924.49 ($6,106.49)Comedy Roadshow 2 489 99% $14,938.00 $12,932.53 $2,005.48I, Bunyip 3 129 17% $1,566.24 $12,453.47 ($10,887.23)Biddies 3 219 30% $6,129.18 $16,754.87 ($10,625.69)Circa 2 439 89% $12,694.00 $18,082.66 ($5,388.66)Motherhood 3 473 64% $13,877.00 $29,067.43 ($15,190.43)Happy BirthdayPeter Rabbit 3 433 58% $6,501.24 $11,751.26 ($5,250.02)Marialy Pachecco 1 158 64% $2,460.00 $3,359.93 ($899.93)Treasure Island 3 141 19% $2,007.17 $7,212.73 ($5,205.56)Chasing theLollyman 1 122 49% $3,378.00 $5,238.33 ($1,860.33)David Scheel 1 188 76% $3,625.00 $3,970.58 ($345.58)Diving For Pearls 3 254 34% $7,067.00 $22,231.16 ($15,164.16)Katie Noonan 1 249 101% $7,711.00 $5,696.13 $2,014.87Caravan Burlesque 2 455 99% $13,495.19 $13,894.85 ($399.66)The Flood 3 76 10% $2,047.00 $8,667.35 ($6,620.35)Ladies Night 2 155 31% $4,928.36 $12,182.01 ($7,253.65)The GigoryanBrothers 1 242 98% $7,734.00 $5,256.39 $2,477.61TOTALS 43 4,910 54% $126,003.13 $232,947.08 (106,943.95)AVERAGE%PROFIT/LOSS%PER%TICKET%SOLD%for%TOURING%SHOWS%%% TICKETS%SOLD% TOTAL%PROFIT/LOSS%TOTALS% 4,910% ($106,943.95)% ($21.78)%AVE%PROFIT/LOSS%PER%TK%SOLD%%Coffs Harbour City Council51617

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan54%Occupancy Percentage Comparison,Touring Shows37%31%16%16%Average % Under 25% 26%-50% 51%-75% 76% & OverBreakeven Calculations for Touring Shows Ticket Price SpeculationThe 19 touring shows had an average ticket price of $25.66 (gross income$126,003 divided by the total tickets sold 4,910). This contributed to an overallloss for the 2012 touring show season of $106,943.95. The average loss perticket therefore has been calculated at $21.78 (total loss divided by total ticketsales). This equates to an 85% ticket price increase as the gross breakevenprice point.The average ticket price would need to be $47.44. (This price does NOT includethe running costs.Occupancy SpeculationAlthough a small number of shows recorded occupancy of 75% and over, it isimportant to view the occupancy level by the total occupancy percentage ratherthan the individual shows.In order to ascertain the breakeven point the overall occupancy levels of the JMTmust be assessed. These calculations are based on capacity at 247 patrons.If the ticket price remains unchanged, the following occupancy levels would haveto be achieved:Actual Total TK Sold 85% Increase PROFIT/LOSS Occupancy %4910 9,084 $148.36 100%Coffs Harbour City Council52618

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanAs per the ticket price, the occupancy rate would need to be increased by 85% toreach the breakeven point.3.3.6 Current Situation User/Hirer OccupancyOCCUPANCY%TYPE%OF%SHOW% GROUP% SHOW% PERFORMANCE% SEATS%OCCUPANCY%%%CHARITY CHCCGive Me 5 for Kids Fundraiser LoveLetters 1 64 26NFP CHDES Dance Eisteddfod Gala Concert 1 231 94NFP CHRCSunday Soundscapes #1Soundlabyrinth 1 248 100NFP CHRCSunday Soundscapes #2 WHEELERSAND DEALERS 1 250 100NFP CHRCSunday Soundscapes #3 SYDNEYBRASS 1 248 100NFP CHRCSunday Soundscapes #4BANDALUZIA 1 249 100NFP CHRCSunday Soundscapes #5 AURORAGUITAR ENSEMBLE 1 203 82NFP CHMCC DISNEY'S BEAUTY & THE BEAST 19 2,814 72NFP CHMCC SWEET CHARITY 20 1,719 35NFP CHATS Summer of the Seventeenth Doll 9 555 25NFP CHATS Two Doors Down 8 556 37NFP CHATSKING LEAR Shakespeare's ultimatetragedy 8 420 27NFP CHACMy Husband's Wild Desires AlmostDrove Me Mad 13 1,086 34NFP CHAC Djembe Stars 1 26 11NFP CHAC Morning Tea with Alex Hood 1 6 2NFP CHAC Christmas at the Jetty Variety Show 2 40 8NFP CHAC The Silk Road 1 149 60NFP Seacrest The 39 Steps 6 545 37NFP Seacest Tread 6 295 20NFP CHDC 2012 Platform 12 HSC showcase 1 122 49NFP SSFF Janison Short Sharp Film Festival 1 204 83NFPWinterSunAlan Dale's Johnny O'Keefe TributeShow 1 157 64NFPWinterSunDigger Revell & Vicky O'Keefe inConcert 1 76 31NFPWinterSun Lonnie Lee & The Leeman 1 79 32NFPWinterSun The Rat Pack Intimate Show 1 94 38NFPWinterSunUltimate Elvis Tribute CompetitionHeats 12 & 3 3 197 27COM Private Bruce Mathiske's Rhythm Express 1 88 36COM Private Mike McClellan in concert 1 150 61Total 112 10,871 50%$KEY: NFP - Not For Profit COM - Commercial CHARITY - CharityCoffs Harbour City Council53619

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanNOTE: all shows adjusted to include seats removed and tickets sold includescomplimentaryOccupancy PercentageComparison, User/Hirer shows50%46%25%14%14%Average Under 25% 26% - 50% 51% - 75% 76% & Over3.3.7 Current Operational SituationA number of current operational challenges were identified during theconsultation phase. They are: Ticket SystemWhilst the JMT do not (and can not) set ticket prices for hirers of the JMT, thereis a cost associated with the provision of a professional ticketing system. Thesecosts include a forty cent per ticket royalty for the use of SABO, and the contractperiod is in place until December 2013.The other major cost associated with the provision of the ticket system is staffwages for box office. Currently the box office is open 12pm – 4pm Tuesday toFriday and one hour before scheduled performances.Tickets may be purchased at the Box office, on-line or over the phone. The boxoffice accepts credit card payments over the phone where time permits; patronsmay send a cheque, made payable to Coffs Harbour City Council. Once paid for,tickets can be collected from the Box Office during Box Office Hours.A audit of time spent for the box office staff was completed between the 16th ofJuly and 3rd of August. The outcomes of the audit are below:Coffs Harbour City Council54620

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanBox%Office%Staff%Summary%$ $Customers$buying$tickets$over$the$PHONE$Customer$buying$tickets$as$WALK$INS$$$$ $$Customer$buying$tickets$for$TOURING$SHOWS$Customers$buying$tickets$for$COMMUNITY$SHOWS$$$ $$Number$of$customer$interactions$resulting$in$a$SALES$Number$of$customer$interactions$for$ENQUIRY$ONLY$Number$of$customer$interactions$for$ticket$COLLECTION$$Totals$177$hours$141$hours$182$transactions$110$transactions$187$interactions$104$interactions$6$interactions$PHONEWALKINSSALESENQUIRYONLYCOLLECTIONA customer feedback survey was completed in December to gain valuable insightinto customer perceptions on a range of operational aspects for the JMT. Inrelation to ticketing, more than 90% of the respondents stated they had usedthe internet to purchase tickets. Of those who did not, 60% said it was tooimpersonal, and 30% were worried about security. Only 14% either didn’t havethe internet or didn’t know how to do this.Coffs Harbour City Council55621

34.0% 66.3% 36.7%I would pay16.7% (56) 8.7% (29) 335(114) (222) (123)Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSI would never pay 1.9% (4) 3.4% (7) 27.2% (56) 47.6% (98)Jetty Memorial Theatre |Business Plan71.8%206(148)answered question 388skipped question 1813. Have you ever purchased anything on the internet?ResponsePercentResponseCountYes, please skip to question 15 90.3% 355No 9.7% 38answered question 393skipped question 1314. If no, why not?6 of 45ResponsePercentResponseCountDon't have internet 11.1% 3Don't know how 3.7% 1Don't have a credit card 11.1% 3Don't think it is secure 29.6% 8Think it is too impersonal 59.3% 16Other (please specify)12Ticket sales for the 2012 were:o Internet = 48%answered question 27skipped question 379o Box Office = 42%15. Did you o pay Secondary a booking Box fee? Office = 2%o Phone = 8%Customers are charged $1 per ticket as a transaction fee, and whilst this coversthe SABO royalty fee of Yes40 cents per ticket and the merchant fee of 62.5% 20 cents 233 perticket, it does not cover staff costs. It is important to note that the staff costsare for more than the box office as they also include staff that handles invoicepayments for reimbursements.Response ResponsePercentCountNo, skip to question 17 38.3% 143answered question 373skipped question 33Customers have complained about being charged a surcharge, however of the62% of survey respondents who stated they had been charged a fee, 67% ofthem considered it fair.16. Did you consider this;Coffs Harbour City CouncilResponsePercentResponseCount56Too cheap 1.3% 3Too expensive 32.5% 77622

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanThe 38% who did not pay a booking fee, highlights an inconsistency of who paysthe fee. Some venue hirers request that the fee be charged to them rather thanpassing it onto the customer. As a customer it would simply appear thatsometimes they are charged and sometimes they are not charged, and this couldpotentially create resentment and or confusion about why this is the case.The ticketing system needs a serious cost-benefit analysis completed. Internetsales could become the central way to buy tickets. Box office sales should beavailable on the night of a performance and volunteers utilised for this service.This would eliminate staff wages for box office. However to do this the internetsystem needs to be upgraded and security of payment reviewed andcommunicated to customers, and secondly the SABO system (cited consistentlyas being complicated and slow) should be reviewed at contract completion.Alternatively, ticketing services could be outsourced to another organisation.Regardless, it is essential that a professional service is offered and that the JMTdo not return to past ad hoc, hand written and inconsistent approach of the past.This would create a negative image of the JMT and would impact negatively onthe customer experience. Marketing strategyMarketing strategy aim to get the attention and sale of customers. For JMT, thecustomer is someone sitting in the audience watching a performance. Thesecustomers would the same for everyone who is hiring or using the JMT, evenCouncil for touring shows.However, the JMT hirers have their own marketing budget and marketingstrategies. The JMT Theatre Manager also promotes touring shows.There has been attempts by the Theatre Managers to leverage the marketingspend by pooling some resources, but this has been met with inconsistentcommitment by hirers. Therefore, all hirers continue to promote their ownproducts as best as possible with limited budgets.As a customer, this directly translates into receiving or seeing information fromcompeting sources for competing product.Marketing of the JMT as a destination or product is limited to the annual booklet(or program). This booklet has been changed over the years both in look andfeel as well as content. Some years it has displayed all performances by month,in other editions only performances that JMT were promoting (touring shows),Coffs Harbour City Council57623

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Planthen into other editions, the touring shows were placed at the front and thecommunity shows at the back. These changes reflect strategies to address theconcerns of hirers. The net result has see inconsistent and ad hoc messaging forcustomers.It could be argued that the past focus has not been on the customers needsaround the JMT experience, rather it has been on each hirers self promotion.Ultimately, the customer must be at the centre of all marketing efforts, andcollaboration and cooperation is central to making this a reality for the JMT. MembershipMembership strategies have changed over the years, but in the main asubscription is sold and offers some level of incentive. A number of surveyrespondents indicated a level of dissatisfaction with past strategies.Comments from the survey around membership include:“I signed up for a membership last year but didn't benefit much from it at all. I think Isaved $5 off two performances; the other performance was a fixed price. No other realbenefits, so I'm unlikely to become a member again next year, unless there are realtangible benefits. It also started way too late through this year to be really able to benefitfrom it.”“I think the subscription program worked better the year before than this year. Theinclusion of community groups in the subscription program the year before encouragedhigher attendance at those events.”“It would be good to be able to select specific seats with the internet booking. Pleaseinclude local productions in the subscription brochure. Please make the subscriptionbrochure available earlier than this year.”“I don't consider the benefits of buying membership are worth the cost apart from theticket discount. Was made to feel uncomfortable when redeemingat restaurant and found the conditions for the benefit to be obtained quiteridiculous and too expensive.““I much preferred the previous season subscription system as I had the opportunity tobook early for events I wanted to see and fit others in aswarranted. Sometimes under the new system I would just miss out becauseof other engagements.”Membership strategies must be consistent and worthwhile for customers.Coffs Harbour City Council58624

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan Hirer Payment from Box OfficeThe current system to repay hirers who use ticketing services takes 28 days frominvoice.Invoices for reimbursement are generated at the completion of a show (finalperformance) and only after the SABO report is generated by JMT Manager andsent to the hirer.The hirer must then generate the invoice and submit it for approval andpayment.Multiple hirers have cited the time taken around the process as needing urgentreview as processing time appears to negatively impact their cash-flow.In terms of Council, the administration procedure is lengthy and therefore costlyin relation to staff time (manager and finance staff.)This system needs urgent review and must be streamlined. Alternatively,ticketing services could be outsourced to another organisation. Role of ACCTSACCTS was established in response to user group dissatisfaction of Councilefforts, attitudes and prices following the major refurbishment. ACCTSrepresents the majority of community theatre hirers and they have negotiatedfees and services for their members. Their charter is to ensure there is a ‘united’voice for theatre hirers.Whilst Council can not make recommendations to any third party, ACCTS maywish to review its charter based on the outcomes of this business plan to ensurea contextualised role in the future. Expense and Income AllocationCHCC uses Finance One software to manage all accounts. The organisation usesa system of codes for financial allocations (category, activity, resource codes). Ata systemic level, this is fully compliant with accounting practices. At theoperational level, the decision to allocate both income streams and expensescomes down to the selection of an appropriate ‘resource’ number/code by theJMT Manager.Coffs Harbour City Council59625

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanIn the past, it appears that different Managers have used resource code selectioninconsistently. Resource codes such as 3642 (other services not consulting)have become a default for a wide range of expenses. In terms of income, 1563(miscellaneous) is the major income resource code used.It is essential to attribute both income and expenses to resource codes in a moremeaningful and consistent manner to enable appropriate review and analysis ofthe data. At the least, income and expenses must be tied to enable thedetermination of cost of sales. VolunteersSince CHCC has managed the JMT, the use of volunteers has been inconsistent.Hirers have expressed continued commitment to provide volunteers whereneeded to help reduce operating costs.Volunteers must be considered an essential part of the operation of the JMT intothe future. TechnicianA full time technician is employed to provide technical support for all usergroups.The touring shows have required substantial technical support. As the number oftouring shows has grown over the years, the need for permanent technicalsupport has grew too.However, with a substantial reduction in touring shows, the need for full timetechnical services will not be necessary.Some user groups have engaged their own technician rather than use the JMTtechnician (a range of reasons have been cited).The JMT would need to engage a technician on a monthly retainer for between 1-3 days per month for maintenance.Coffs Harbour City Council60626

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan DGR StatusCouncil currently does not have DGR status for the Jetty Theatre. The Theatredid have this registration under a former management structure but this doesnot apply now that Council is managing the property.Council fulfills the requirements for registration as a public fund of the Registerof Cultural Organisations in that:• its principal purpose is the promotion of literature, music, a performing art, avisual art, a craft, design, film, video, television, radio, community arts,Aboriginal arts or movable cultural heritage.• it does not give any of its property, profits or financial surplus to its members,beneficiaries, controllers or owners• it maintains a public fund to receive gifts• it agrees to provide information on donations at six-monthly intervals, and• it agrees with DEWHA that, if included on the register, it will participate inperiodic reviews of eligibility.However, importantly Council is neither a body corporate, a trust nor anunincorporated body established for a public purpose by the Commonwealth,State or Territory.It is this point that prevents Council from gaining this DGR status. Council hashowever recently created a separate legal entity with the approval of theDepartment of Local Government, known as Prosper Coffs Harbour Ltd. Theobjective of this company is to act as the trustee for several trusts of Councilincluding the Coffs Harbour City Council Cultural Trust. I am presently seekingto have this trust registered on the Register of Cultural Organisations. Onceregistered, this would be a pathway for Council to provide additional funding tothe Jetty Theatre whilst offering a tax deductible receipt to the donor i.e. thedonor wishing to provide funding to the theatre would make the donation to theCHCC Cultural Trust, and receive a tax deduction, with the trust then resolving topass this funding to the theatre either for capital works or cultural development.It would also allow Council to make grant funding applications not presentlyavailable to local government.Public art galleries, museums and libraries are generally not included on theRegister as the Australian Taxation Office under another Deductible Gift Recipientcategory approves them.Coffs Harbour City Council61627

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan Aging InfrastructureThere are items within the JMT that are not on the asset register within Council.This means that some items are not linked to an internal lifecycle replacement ormaintenance process.3.4 SWOTA SWOT analysis compares the strength, weakness, opportunity and threats thathave been identified for the JMT to be considered in the development of thebusiness model.It provides an effective tool to complete the initial business planning and will alsohelp track success along the way.Strengths are the unique qualities of the JMT and those aspects that give itresilience and competitive advantage in the marketplace.Weaknesses are constraints and issues that prevent the JMT from achieving itsfull potential. Whilst some cannot be changed, many represent opportunities forchange.Opportunities are possibilities to enhance the JMT in the future. They can beoperational efficiency improvements, new marketing ideas or a customer serviceenhancement.Threats are factors that may impact negatively on the future value of thebusiness. These threats may come from the operating environment; for example,new legislation concerning amalgamation of Councils and are beyond the controlon the JMT.The SWOT analysis is outlined below.Coffs Harbour City Council62628

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanJetty Memorial Theatre Situational AnalysisInternal factorsExternal factorsStrengthWeaknessOpportunityThreat• Commitment from the currentcommunity theatre groups to the JMT• History of contribution – time, moneyand passion• Acoustics• Intimate size of the theatre – foraudience and performers• Outdoor area• No bad seat – line of sight is excellent• Bar and coffee area• Professional ticketing system• Professional look and feel of the venue• Location of the venue – high on the hill• Atmosphere of the theatre – heritage• Financial commitment from CHCC• Too many touring shows• Low patronage• Limited storage for most users• Impact of limited storage on the stageand back stage areas• Access to load and unload• Removal of seating required for band,reduction in income• Access (quantity and quality) not tied toperformance (tickets sold)• Financial situation of the JMT• Storage/location of the piano• Limited parking• Dressing area for performers• Ventilation/toilet drainage• Chequered history, has lead to cynicismand erosion of trust• Stairwell• Turn-over of staff• Lack of long term planning• Lack of clarity on operational parameters• multiple agreements with different users– place council in the role of “go between”to assess requests based on merit on acase by case basis.• Customer confusion between communityand professional productions• Ticketing systems is slow and hard to use• Community leadership in strategicmanagement• Opportunity to reduce financialshortfall• Increase use of volunteers• Annual program planning• Collaborative marketing efforts• Opportunity for open, honestrelationship with CHCC based onmutual respect• Maximise SABO intelligence – to planmarketing and programming• Increase audiences in line withgrowing population• Increase ticket price inline withincreasing wages• Target professional workers – largestemployment sector in Coffs Harbour• Prepare for NBN connectivity foremerging technological products• Entry into the film industry• Increase sales within the café• Turn ticket sales into profit makingservice• Partnerships with existing operators toexpand into cultural tourism product• Council Amalgamation• Commercial competitors in the marketplace• Rising Australian dollar and itsnegative impact with both domesticand inbound tourists• Proximity of the neighbours, noise andincreased activity make bring aboutcomplaints for Council• Current world economic uncertainty,impact on discretionary spend• Current price expectations for lowprice experiences at the JMT• Historical users versus newcommunity users – balance of power,ownership, right of access!Coffs Harbour City Council63629

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 4:Business Model630

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan4. Business Model4.1 BackgroundThere is much history surrounding the JMT, the detail of which is provided in theJMT Strategic Plan.This history includes the original reason for the building and the initialcommunity fundraising to do so. It includes the changing use of the JMT over thepast almost 100 years, along with the physical changes to the building toaccommodate and allow these new uses.It pays tribute to the community management of the building for many years,and again, their financial and time contributions. It speaks of the establishmentof a Trust Fund (and fundraising initiatives) to help support the capital needs ofthe building.History acknowledges all tiers of government for their contribution to the mostrecent refurbishment and to CHCC’s governance and financial role in recenttimes.Finally, history speaks of relationships, which have not always been positive, andthe dreams and passions of many individuals and organisations associated withthe JMT.All of this history contributes to what JMT is today and, as such, it deserves to beacknowledged and remembered.Given all of this, the business model needs to recognise this history butimportantly also provide a clear path for how the goals of the Strategic Plan canbe achieved in the future.An effective business model will enable the JMT to capitalise on current strengthswhile also learning from the past will support the organisation to achieve itsultimate goal: To make the JMT sustainable for the community of Coffs Harbourso that it remains an iconic performing arts experience into the future.Coffs Harbour City Council65631

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan4.1.1 Key Success Factors for the Business ModelNew ThinkingThe business model must ensure the move away from Council being positionedas the entity solely responsible for an asset, or as a bottomless financial pit. Forsuccess, the model relies on a shift in thinking, behaviour and commitment toestablishing the “JMT” as the beneficiary of collaborative effort. It isn’t theestablishment of a new legal entity – but it is a definite shift in terms of themindset of everyone involved in the management and use of the facility.This will require disciplined attitudes and behaviors for finding solutions into thefuture. The diagram below outlines the required approach, which requiresparties to be flexible and adaptable in their decision-making. It lies at the verycentre of the future success for the JMT.PASTNo• One dimensional thinking• “There is only one way… and it’s the way we’re doing it now”Or• Two dimensional or binary thinking – there are only two possibilities• “We either work together or alone”NOWWhen• Scenario Analysis• “When will the cost of running JMT simply be too big to ignore?”FUTUREAnd• The solution requires multiple parties to be flexible and adaptable• The outcome can address the barriers of the “no, or and when”scenarios.Coffs Harbour City Council66632

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanIs this possible?Whether past actions and hurts are too great to overcome remains the corechallenge in moving forward. If Council is not in a position to take a firm but fairline around the operational management of the JMT to achieve the goals of theJMT Strategic Plan, then the future for the JMT holds more of the same:complaints and dissatisfaction with Council, declining audience numbers, councilstaff dissatisfaction and stress and an ever increasing list of demands fromhirers. It would also include increasing financial investment.It will take courage from Council to say no to demands from highly vocal andpassionate groups who it could be argued, act from a position of self-interest.The next three years therefore, could be viewed by Council as a test andmeasure approach, working under a model that requires all parties to work in aflexible and adaptable manner. At the end of this timeframe, if significantmeasurable change has not occurred, then Council should consider its role, ifany, in the future operations of the JMT.Key Success FactorsIn addition to a new way of thinking, a number of key success factors have beenidentified. They are:Community input into JMT’s strategic direction;Community input into the management of the Trust Account; Council contribution to the Trust Account, equivalent to originalinvestment made by the community ($30,181.47);Quota system for non-profit user groups that includes certainty of hirefees, charges and access rights to the JMT;Capacity to generate income through commercial activity;Continued annual Council financial subsidy for operating costs;Formalisation and rationalisation of processes and systems aroundgovernance, management and outcomes;A standardisation of service experiences for all customers of the JMT.Coffs Harbour City Council67633

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan4.2 Business ModelsFour options for business models have been considered and assessed against thekey success factors. These are:Option 1Option 2Option 3Option 4• Status Quo• Mothball thevenue• Service LevelAgreement• Revised CHCCmanagementmodel4.2.1. Option 1 – Status QuoCHCC continues to manage the facility with current staffing levels, a continuedcommitment to subsidising the holding costs for all users (commercial and nonprofit)plus a budget for touring shows and promotional activity.Cost: Unknown, however using past trends it would be fair to assume that thedeficit would continue to rise.RecommendationThis is not the recommended model. Increasing expenditure versus incomewill not enable the JMT to be sustainable into the future.Coffs Harbour City Council68634

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan4.2.2 Option 2 – Mothball the VenueTo reduce CHCC financial obligations, the lowest cost option is to mothball thesite. Mothball Cost = Venue in a non-operational state.MAINTENANCE(SAFETY(INSURANCE(MOTHBALL(COSTS(ANNUAL(Building( Rates( $400.00(Gardens(Building(Building+(contents(Hand(Mowing( $762.00(Herbicide( $322.00(Alarm(points(and(venting( $990.00(FIP(monitoring(( $1,500.00(FIP(maintenance( $943.00(Light(and(Exit(signs(( $841.00(Security(System( $500.00(Security(Patroling(( $2,850.00(Pest(Control( $1,000.00(Statewide(($11,000.00((( Total(Mothball(Costs( $21,108.00(Total(Shut(Down(Costs(including(a(20%(Contingency( (( (( $25,329.60(Cost: $25,329.60/year or $488/week or $69/dayReccommendationThis is not the reccommened model given the contribution of the communityin the past, and also the cultural leadship role of CHCC. It would be a fairassumption that this would not be supported by the community.4.2.3 Option 3 – Service Level AgreementMany Councils across NSW now operate their community facilities using externalcontractors. The appointment follows a competitive tendering process as per theLocal Government Act, 1993.The management of the JMT would be tendered and subsequently contracted toa company with the skills and business acumen to do so.The service level agreement would include capped fees and charges for nonprofithirers and service standards ensuring community access to the facility. ItCoffs Harbour City Council69635

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Planmay, or may not, include the provision for professional touring shows (if it did abudget allocation from Council would be required).The successful contractor would then be offered a fixed term lease to deliver theservice level agreement and would be paid an annual retainer to do so. Thisretainer would be calculated on the shortfall for the commercial operator togenerate income based on meeting the community service obligations of Council.The contractor would be able to generate income from the JMT in any way thatabides by the strategic plan for the facility, and does not compromise the SLAconditions.Cost: $93,000 - $300,000 per annum depending on requirements (subsidy fornon-profit hire rates, touring show purchase and promotion etc)RecommendationThis is not the recommended model at this time. However, in three years, ifsubstantial achievements as outline within the strategic plan key performanceindicators are not attained, this would then become the recommended model.4.2.4 Recommended Model - Revised CHCCManagementThis is an augmentation of the current situation (status quo). Acknowledgementof JMT’s history and strategic goal for sustainability has driven the intent behindthis proposed business model.Fundamentally it addresses the threats to the current situation including the everincreasing Council invesment (subsidy) and refocuses attention on commercialrevenue opportunities, prudent decision-making around risk-reward opportunitiesand efficient systems and processes.This model also formalises the relationship between Council and the communitythrough the establishment of a Management Committee (335 Committee ofCouncil). The role of this committee would be:Review the strategic performance of the JMT against relevent targets asoutlined in the JMT Strategic Plan 2013 – 2018Prioritise maintance spend annually, andOversee the trust fund.Coffs Harbour City Council70636

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanTo achieve the goals of the JMT Strategic Plan, this model requires:Establishment of a Management CommitteeEstablishment of a quota system guaranteeing access for all non-profithirers at 60% and facilitating planning for commercial activities for thebalance (40%)Facilitating access to all non-profit hirers in an equitable mannerCHCC to pay the capped running costs for the JMT annually for threeyears, including the cost of wagesSetting a hire fee at two levels: non-profit and commercial rates. It isrecommended there be no increase to current non-profit rates or tocommercial rates. Discretionary decision making on waiving nor reducingfees should be avoided to ensure an fair and transparent processAdditional services offered to all users would be on a full-cost recoverybasisA dramatic reduction in the number of touring showsRe-calulation of ticket prices, and critical planning and assessment forrisk-reward on all commercial activity of the JMTRevision of staffing numbers and rolesExpansion into new commercial areas such as film and live broadcastImproved sales around bar/caféReview of the ticketing system, following stringent cost-benefit analysisSophicticated budget management, analysis and reporting.Coffs Harbour City Council71637

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanBusinessModel – 4.3 What What it looks Would like it Look Like?CouncilFinancialContributionDual RoleLandlordOperatorFocusFacilityPerformingArts andCulturalleadershipCouncilOperationalStaffStrategic planBusiness PlanHowManagementCommitteeCouncilOperationalStaffCouncilOperationalStaffIt is essential that all stakeholders understand their role and responsibilities withRelationship Chartthe implementation of the strategic plan and the business plan. The diagrambelow is an outline of these relationships.CouncilStrategic PlanVision, Values, Goals,Strategies and KeyPerformance IndicatorsBusiness PlanBusiness Model, OrganisationalPlan, Marketing Plan andFinancial PlanManagementCommitteeCouncil StaffCoffs Harbour City Council72638

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanTheatre ManagerIncome• Council CappedInvestmentIncome• Commercial ActivityBusiness Plan ImplementationIncome• Non-profit HireNon-profit ActivityCommercial ActivityQuota for use of the JMT isguaranteed at 60%Quota for use of the JMT isguaranteed at 40%Coffs Harbour City Council73639

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan4.4 Why is it Recommended?A revised management model is seen as the best option for meeting allstakeholder needs and achieving goals or objectives of the strategic plan. It isanticipated it will receive the full support from the current hirers.Most importantly, this model will provide:Clarity on the roles and responsibilities of all partiesCertainty of access for all partiesCapped investment for Council.4.4.1 What Will it Cost?Scenario 1Scenario 1 is the running costs of the JMT with the addition of one full time paidmanager. With one staff member, it is considered that commercial activityincluding touring shows may not be able to occur, and the JMT will not be able tohave supervision for most functions. This would impact the operation of boxoffice prior to the show (though it could be run by volunteers for hirer) and thecafé.MAINTENANCE&SAFETY&RUNNING&COSTS&&& && && &&MOTHBALL&COSTS&ANNUAL&Building( Rates( $400.00(Gardens(Building(Hand(Mowing( $762.00(Herbicide( $322.00(Alarm(points(and(venting( $990.00(FIP(monitoring(( $1,500.00(FIP(maintenance( $943.00(Light(and(Exit(signs(( $841.00(Security(System( $500.00(Security(Patroling(( $2,850.00(Pest(Control( $1,000.00(INSURANCE& Building+(contents( Statewide(( $11,000.00(&& Total&Mothball&Costs& $21,108.00&Total&Mothball&Costs&including&a&20%&Contingency& && && $25,329.60&Coffs Harbour City Council74640

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanMAINTENANCE&&&BUILDING&IT&HOLDING&COSTS&ANNUAL&General(Maintenance( Tools(&(Sundry( $2,280.00(Sound(System( Mixed(Costs( $5,000.00(Lighting(Rig(Globes(for(projector( $1,000.00(Globes((Other)( $3,000.00(Piano( Tuning( $720.00(3(days(p/month(Technical(Support(retainer( $12,000.00(Plumbing( Plumbing(R&M( $4,500.00(Sanitary(Disposal( Scheduled( $528.00(Cleaning( Scheduled(( $1,872.00(Air(Conditioning( Maintenance( $968.00(Other( Disabled(access(( $832.00(Communication(ADSL( $1,056.00(Phones((4(lines)( $3,966.00(EFTPOS( $504.00(Fire(alarm(monitoring(line( $240.00(FIRST&AID& Personal( First(aid(&(PPE( $700.00(OFFICE&Copier(Lease(and(Printing(Printing( $2,848.00(UTILITIES&Water/sewage( Water/sewages( $571.00(Power( Power(Direct( $7,500.00(LICENSING&STAFF&TOTAL&RUNNING&COSTS&Waste( CHCC( $460.00(Vehicle( CHCC( $6,126.12(OGLR( OGLR( $500.00(APRA( APRA( $300.00(PPCA( PPCA( $300.00(Total&Holding&Costs& && $57,771.12&On]Site(Manager( Wages(&(on]costs( $91,780.00(Total&Staff&Costs& && $91,780.00&MISCELLANEOUS&COSTS&ANNUAL&IT& Communication( Mobiles((2)( $240.00(BANK& Merchant(fees( Merchant(Fees( $2,212.00(UTILITIES& Power( Power(for(Cost(of(Sales( $7,500.00(Total&Miscellaneous&Costs& && $9,952.00&This equates to $3,554.47 per week or $506.39 per dayScenario 2$184,832.32&Scenario 2 is the running costs with the addition of a full time manager and fulltime paid administration officer. This is the recommended staffing model. ThisCoffs Harbour City Council75641

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Planlevel of staffing, with flexible approach to the allocation of hours will allowcoverage of the JMT for approximately 70 hours per week.MAINTENANCE&SAFETY&RUNNING&COSTS&&& && && &&MOTHBALL&COSTS&ANNUAL&Building( Rates( $400.00(Gardens(Building(Hand(Mowing( $762.00(Herbicide( $322.00(Alarm(points(and(venting( $990.00(FIP(monitoring(( $1,500.00(FIP(maintenance( $943.00(Light(and(Exit(signs(( $841.00(Security(System( $500.00(Security(Patroling(( $2,850.00(Pest(Control( $1,000.00(INSURANCE& Building+(contents( Statewide(( $11,000.00(&& Total&Mothball&Costs& $21,108.00&Total&Mothball&Costs&including&a&20%&Contingency& && && $25,329.60&MAINTENANCE&BUILDING&IT&HOLDING&COSTS&ANNUAL&General(Maintenance( Tools(&(Sundry( $2,280.00(Sound(System( Mixed(Costs( $5,000.00(Lighting(Rig(Globes(for(projector( $1,000.00(Globes((Other)( $3,000.00(Piano( Tuning( $720.00(3(days(p/month(Technical(Support(retainer( $12,000.00(Plumbing( Plumbing(R&M( $4,500.00(Sanitary(Disposal( Scheduled( $528.00(Cleaning( Scheduled(( $1,872.00(AirCon( Maintenance( $968.00(Other( Disabled(access(( $832.00(ADSL( $1,056.00(Phones((4(lines)( $3,966.00(Communication( EFTPOS( $504.00(Fire(alarm(monitoring(line( $240.00(FIRST&AID& Personal( First(aid(&(PPE( $700.00(OFFICE&Copier(Lease(and(Printing(Printine( $2,848.00(UTILITIES&Water/sewage( Water/sewages( $571.00(Power( Power(Direct( $7,500.00(Waste( CHCC( $460.00(Coffs Harbour City Council76642

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan& Vehicle( CHCC( $6,126.12(&&LICENSING&STAFF&TOTAL&RUNNING&COSTS&OGLR( OGLR( $500.00(APRA( APRA( $300.00(PPCA( PPCA( $300.00(Total&Holding&Costs& && $57,771.12&On]Site(Manager( Wages(&(on]costs( $91,780.00(Administration(Full(time(wages(&(on]costs( $81,561.00(Total&Staff&Costs& && $173,341.00&MISCELLANEOUS&COSTS&ANNUAL&IT& Communication( Mobiles((2)( $240.00(BANK& Merchant(fees( Merchant(Fees( $2,212.00(UTILITIES& Power( Power(for(Cost(of(Sales( $7,500.00(Total&Miscellaneous&Costs& && $9,952.00&This equates to $5,123 per week or $729.85 per day$266,393.72&4.4.2 Who Will Pay?For scenario 2, the running cost including two staff members, is $266,000annually.For simplicity and transparency, it is recommended that these costs be fullysubsidised by CHCC.However, this leaves no budget for marketing initiatives, touring shows or othercommercial opportunities for the JMT.Apart from Council’s subsidy, income will come from the hire of the facility fromboth non-profit hirers and commercial hirers. The income targets set for notfor-profithire (32 weeks annual venue hire) and commercial hire (4 weeksannual venue hire) at the current weekly hire rate would generate $62,180 peryear.This income would be invested in additional commercial activities such as touringshows, and marketing and promotions annually.This does not mean that non-profit groups are subsidising commercial activity,given the predicted income from this sector is less than the running costs,without any staff. But it is a simple method that doesn't require apportioningresources, either financial or human, to hirers.Coffs Harbour City Council77643

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanFor the hirers this method also generates two advantages:1. The fees stay the same, ensuring continued affordability.2. Non-profit hire is encouraged and supported. They become the leadcustomer, and the success of this group directly influences the capacity ofthe JMT to become stronger in the performing arts sector.It is intended as a positive move forward for the JMT.Summary of calculations:Running&Costs&including&2&staff&Total(Running(Costs( $266,000(( (Annual&Income&Targets*&Not(for(Profit((Community)(Venue(Hire(@($1,600**(per(week((32(weeks)( $51,200(Commercial(Venue(Hire(@($2,745**(per(week((4(weeks)( $10,980(Council(Capped(Investment( $266,000(Total&Income&Targets& $328,180&Net&Balance&&$62,180&Balance&invested&in&promotions,&marketing&and&commercial&activity&$62,180&End&of&year&balance&$0.00&* These figures do not include any profit made from any commercial activity, asthey are considered speculative.** Figures are exclusive of GST.This income model allows the JMT Manager to work with the non-profit hirers todevelop their annual booking requirements. The income of which then becomesthe annual budget for marketing and commercial activity for the JMT.In short, CHCC moves from an annual net loss of almost $500,000/year to acapped loss (subsidy) of half of this value at $266,000. Maintenance is calculatedwithin this budget.Capital expenditure from CHCC is capped in the first year at approximately$32,000 bringing the trust account balance to approximately $60,000. Thesefunds should be used as leverage to gain grants. In addition, the JMT willconduct at least one fund raising event per year, with the proceeds going directlyto the Trust Account.Coffs Harbour City Council78644

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanThe scale and scope of commercial activity will be small. Touring shows will befar fewer, but will still be able to occur. One could argue that their selection willbecome very important, and the costs tightly controlled. No Manager wouldspend their entire budget on one or two shows! It will ensure a businessapproach to product selection, pricing and promotion.Full details are provided within the financial plan in chapter 9.Coffs Harbour City Council79645

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 5:Market Research646

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan5. Market Research5.1 Who Participates in the Arts inAustralia?The Australian Council for the Arts recently completed extensive research on howAustralians participate in the arts today 7 .This research identifies the factors impacting future participation in the arts andthe barriers and incentives, which impact participation.A summary of the key findings:Literature is the most popular art form with 84% reading - mostly novels.Creative writing was also popular with 16% engaged, 7% writing a novelor a short story and 5% writing poetryNearly all Australians intentionally listened to recorded music and over halfattended live performances. Musical theatre/cabaret was the second mostpopular form of music attendance at 22%. Followed by classical music(14%) and opera (8%). Making music, was also popular (15%) with one inten playing an instrument and 5% singingTheatre was attended by one in four (26%) with most going to traditionalor contemporary theatre (19%), followed by circus or physical theatre(10%)Dance was attended by 16% with most going to ballet or classical dance(10%), followed by social dance like ballroom or street (5%) andcontemporary (5%)Australians more readily associated art with individual benefits (such asexpression, inspiration and personal growth) than community benefitsMany people attend the arts primarily as a social occasion and in responseto a request to attend by their family and friends rather than for the artform itself. One in three Australians are already using the internet for the arts -mostly for attendance-related activities such as researching artists/eventsor downloading music7 More Than Bums on Seats: Australian Participation In The Arts, Australia Council for the Arts, 2010.Coffs Harbour City Council81647

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanCommunity arts touched around a quarter of the population. Those livingin rural areas were most likely to attend community arts.Those least engaged with the arts were:oooooThose born overseas in a non-English speaking countryThose whom the main language at home is not EnglishPeople with a serious illness or disabilityPeople in regional areas – regional areas have significantly lowerlevels of attendance at musical events compared to metropolitanareasRural residents are more likely to have a below averageparticipation in the arts compared to the year beforeA description of those Australians who have not attended an arts event in thepast 12 months:More likely to be older, male, affected by a disability or illness, have alower level of education, speak a foreign language at home, and be on alower wage.Reasons for their lack of participation are:Practical - time, cost, information availability and access to venuesAttitudinal – low interest, preference for sport over the arts.5.1.1 Market Segmentation of Arts CustomersThe report has identified four key market segments to describe Australians whodo, or do not participate in the arts. They are the lovers, the flirters, the unattachedand the outsiders.Coffs Harbour City Council82648

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanThe Lovers (35%)The lovers are highly engaged and see the arts as an integral part of theirlifestyle. They also hold the view that the arts provide them with a moremeaningful and richer life as well as help them feel part of their local community.Coffs Harbour City Council83649

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanStrategies to Stimulate DemandThe lovers are a significant subset with no to low attendance. The strategyneeded is to encourage habit-forming attendance. This segment wants toparticipate but time and awareness of events prevents attendance.The Flirters (26%)The flirters are more likely to be influenced to attend events by their friends.They like the arts but are not necessarily convinced that they help them feel apart of their community. However they strongly believe that important thingsthat need to be said in our society are said through the arts.Coffs Harbour City Council84650

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanStrategies to Stimulate DemandHalf the flirters attend frequently and this behavior needs to be acknowledgedand encouraged.The Un-attached (19%)Many of the un-attached have not actually participated in, or attended, any ofthe main art forms in the last year. Some have ever experienced these artsforms at all. The un-attached do not dislike the arts. They just cannot see thepersonal relevance to them.Coffs Harbour City Council85651

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanStrategies to Stimulate DemandThis segment is hard to reach. They will respond to the arts offers andinformation that relates to them and stimulates their interest.The Outsiders (17%)The outsiders believe the arts tend to attract people who are pretentious andelitist. They believe the arts require a reasonable level of understanding toappreciate them fully and therefore the arts “are not for them”.Strategies to Stimulate DemandThis group needs to be convinced why the arts should even be on their agenda.Coffs Harbour City Council86652

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan5.1.2 Performing Arts Centre OperationsEach year the Australian Performing Arts Centre Association (APACA) 8 produce areport on the operations of small, medium and large performing arts centresacross Australia. The JMT contributes information to this report.Report SummarySummaries of the key aspects are:More than half (62%) of respondents manage venues with total capacitiesof between 261 and 1,110 seats. A further quarter fall into the 1,501 -3,000 seating capacity (12% in each of the ranges 1,101 - 1,500 and1,501 - 3,000). Only 8% of centers had capacities of less than 26078% of all centres are owned by Local Government, which also directlymanages 90% of these centres. This equates to 70% of the entire samplebeing owned and operated by Local GovernmentOf the total respondents, 42% operate a performing arts centre with onlyone performance space. 72% operate either one or two performancespaces. Centres with four or more venues make up only 11% of thesample61 respondents, resulting in a combined turnover of $154.2 million,supplied financial information. Individual respondent turnover ranged from$230,335 to $38,959,00. Turnover, as in previous years, was found toincrease with seating capacity as well as with number of performancespaces. No discernible relationship was perceived between turnover anddistance from the nearest capital city Government subsidy represents less than one third of all income (30%).Respondents’ entrepreneurial program (Box Office 21%) remainedconsistent with previous findings - as did venue hire (11%). Income fromfood and beverage (12%), recoverable (14%) and ticketing services (8%)have seen considerable increases since 2009 The predominate expense for centres remains labour costs (45%)Of the total venue membership, 48% provided information on income andexpenditure. Respondents spent just over $24 million purchasing andpresenting their programs, with another $8.2 million spent on marketingthese events and their venues82011 Economic Activity Report, Australian Performing Arts Centres Association, 2011Coffs Harbour City Council87653

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanLocal Government represents the most significant government contributionamong respondents (78%)Just over half (51%) of funding for capital expenditure comes from LocalGovernment with a further 34% coming from State/Territory levelsThe average occupancy rate for all performance spaces is 55%. Howeverthe average occupancy rate for primary performance spaces rises to 61%.As cultural hubs in their respective communities, performing arts centreshost a range of both arts and community events. In the year precedingthis survey, 55% of APACA ordinary members attracted 7.1 millionattendances at just fewer than 40,000 eventsMore than one third (37%) of the activities undertaken in the venues areconsidered non-arts events. This demonstrates the importance ofperforming arts venues as a resource for each community that fulfill avariety of needs that are not necessarily arts related55% of respondents’ venue usage is attributed to community events thatin this case refers to events produced by amateur groups, dance schoolsetcPerformances presented or co-presented by the respondents make up wellover a third (37%) of the total performances presentedOf the total seasons on which respondents incurred full or part financialrisk, Playing Australia supported 17%. This represents 7% of allperforming arts seasons in the respondents’ venuesFigure 1 – Sources of income, APACA ReportCoffs Harbour City Council88654

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanVenue UtilisationThe average occupancy rate for all spaces is 54.7%. However the averageoccupancy rate for the respondents’ primary venue is 61.1% slightly lower than2009 (64%). 9 The high percentage of non-artsactivities undertaken in the venues(37%) demonstrated the importanceof performing arts venues as aresource for each community thatfulfills a variety of needs that are notnecessarily arts related. 10More than half (55%) of respondents’venue usage is attributed to what istermed community events, which in thiscase refers to events produced byamateur performance groups, dance anddrama schools concerts, etc.10 2011 Economic Activity Report, Australian Performing Arts Centres Association, 2011Coffs Harbour City Council89655

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanPerformances presented or copresentedby the respondentsmake up well over one third(37%) of the totalperformances presented. This isa marked increase from 2009levels (28.5%) anddemonstrated the growingtrend towards centres’entrepreneurial programming. 11The graph below highlights the significant differences in various venuesprogramming budgets. Importantly, almost one third (30%) operate with noprogramming budget. Further, only 7% return a surplus as a result of theirprogramming funds being allocated to less financially viable productions. It isalso important to note that 43% of respondents’ entrepreneurial activity resultsin a net deficit (ie a contribution made by the venue’s owner to offset thefinancial loss from a presenting program). 1211 2011 Economic Activity Report, Australian Performing Arts Centres Association, 201112 IbidCoffs Harbour City Council90656

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan5.2 Tourism Trends5.2.1 Overall Tourism TrendsThere were 5.9 million international visitor arrivals to Australia during the yearended November 2011. This is an increase of 0.4% compared to the previousyear. 13The largest source of visitors was from New Zealand (1,059,658) followed by theUnited Kingdom (594,969) China (490,427) and the USA (424,694). 14However, the latest tourism figures show a dramatic shift is occurring. There arenow declines in the number of visitors (compared to November 2010) In thetraditional markets of the UK (down by 6.5%) the UA (down by 5%) and Japan(down by 9.9%) and an increase in visitors from emerging markets in China (upalmost 20%) and India (up 6.3%). 15Domestically, there were 69.6 million overnight trips and 152.0 million day tripstaken in Australia by Australian residents during the year ended September2011. 16In terms of the mid north coast, the greatest proportion of tourists are domesticovernight visitors at 3.1 million people spending 11.7 million nights (up 1.6% onthe year ending September 2011). 17Sixty-three (63%) of those visitors came to the region for holiday or leisure,followed by almost 30% to visit friends and relatives. Notably, the most popularaccommodation used for nights in the region was friends/relatives property(30%) followed by caravan park or camping ground (22%). 18In the main, these tourists have come from other regional NSW (45.3%)followed by Sydney (32.4%) and Queensland (10.5%). Compared to September2011, nights spent by visitors from regional NSW grew 1.4% whilst nights fromSydney declined 7.6%. Over the same period, nights by Victorians grew 12.2%,whilst Queensland nights declined by 11.5%. 1913 Source: http://www.tourism.australia.com/en-au/research/visitor-arrivals-data.aspx14 International Visitors in Australia September 2011, Quarterly Results of the International Visitor Surveyproduced by Tourism Research Australia15 Source: The Australian Financial Review, Tourism Number Go East, Friday 13 January 201216 Source: Travel by Australians September 2011, Quarterly Results of the National Visitor Survey, TourismResearch Australia17 Destination NSW, Travel to the Mid North Coast, year Ended September 201218 Ibid19IbidCoffs Harbour City Council91657

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanInternational visitor numbers decreased 11.3% in the year ending September2011. Spend in the region also decreased by 3.2% on year ending September2011. 20The most popular activity undertaken by visitors to the region (56.9%) waseating out at restaurants, followed by going to the beach (45.4%) and visitingfriends and relatives (43%). 21Based on the Australian travel mindset classifications, Mid North Coast touristsare Compatriots – families (34%), 22% are Wanderers (take time to explore)and 19% are Pompadours (want luxury).5.2.2 Cultural TourismTourism Australia has done a lot of work profiling tourists who visit Australia tounderstand what they do, where they go and what they spend.One group of particular relevance to the JMT is a group defined as Cultural andHeritage Tourists. These tourists participate in at least of one of the followingactivities during their trip:1. Attend theatre, concerts or other performing arts2. Visit museums or art galleries3. Visit art, craft workshops or studios4. Attend festivals, fairs or cultural events5. Experience Aboriginal art, craft and cultural displays6. Visit and Aboriginal site or community7. Visit historical/heritage buildings, sites or monuments. 22This group comprised half (51%) of all international visitors to Australia in 2009– an annual average growth of 2% since 2000 and the Northern Rivers is one ofthe most popular regional destinations for this group.20 Destination NSW, Travel to Mid North Coast, year ending September 201221 Ibid22Snapshots 2009 Cultural Heritage Tourism in Australia, Tourism Research AustraliaCoffs Harbour City Council92658

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanThere is considerable evidence to suggest that cultural tourists tend to spendmore than the average tourist and that there are opportunities to capitalise onthe interest of this group in pursuing cultural activities.One such example is Camp Creative, a not-for-profit organisation, which hasbeen successfully operating a week long, arts-based summer school for over 25years at Bellingen. In 2012, it attracted 1,200 people (and often their families) toits 63 courses, which covered performing arts, film and visual arts and crafts. 23In Coffs Harbour, there are currently many cultural activities available to attractCultural and Heritage tourists as outlined in the Coffs Harbour Cultural Plan 2013- 2016 24 . These include:Exhibitions by professional and community artists at the Regional ArtGallery and the Bunker Cartoon GalleryAn extensive program of festivals, markets and community celebrationsThe Regional Conservatorium of Music, which offers musical education toschool and individual students including adultsA number of dance schools and community groups offering a wide range ofdance classes for children and adultsMulticultural events, such as Harmony Day and the African BallAn annual program of community and professional theatrical performancesat the JMTPopular, rock and jazz musical at commercial venues such as pubs andclubsRegular professional as well as community musical concerts at theBotanical Gardens, the JMT and the Regional GalleryA wide variety of musical performances and other cultural eventsorganised by both the SCU Student Union and the Coffs Harbour MusicSocietyLarge scale performances such as OzOpera and events such as DanceFever (900 competitors), at Sportz Central which is licensed for audiencesof up to 1,00023 Coffs Harbour Cultural Plan 2013 - 201624 IbidCoffs Harbour City Council93659

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanCommercial cinemas as well as film and screen events such as the ShortSharp Film Festival and the Refugee Film FestivalYouth assets such as the Coffs Harbour Youth radio station, CHYFM, andthe Street Art Studio, the ABC Open program, providing social and digitalmedia education and projects in the communityActive dance, choral and musical groups, including a number encouragingthe participation of the older peopleBook clubs, the Coffs Harbour Writers Group and family history groupsCoffs Harbour International Buskers & Comedy Festival (the BuskersFestival), which is owned by Council.5.3 Current JMT CustomersThe other key audience groups to consider are current JMT customers. A surveyconsisting of 18 questions was distributed in December 2012 to JMT’s customerdatabase of approximately 3000 people. 406 people completed the survey.Of those who responded, 77.1% were female. Just under 70% (69.8%) wereaged between 45 – 74 years with the subset category of 55 to 64 year oldshaving the most respondents (29.5%). 90.6% of the respondents had attendedan event at the JMT in the past 12 months.It’s important to consider these statistics when reviewing the summary offindings and to recognise that it is more likely that those customers who aremore highly engaged with the JMT would have been the ones to respond to thesurvey.Some of the key findings were: Of the 90.6% who had attended an event at the JMT in the past 12months, almost half (47%) attended 2-3 events and a further 22.6%attended 4 – 5 events62.3% of respondents only participate/attend performing arts events whensomething really appeals26.6% of respondents said they actively support/attend communityperformances at the JMT and 20.8% support/attend professional touringshowsCoffs Harbour City Council94660

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan Of the 9.4% who hadn’t attended an event at the JMT in the past 12months, the most common reasons were the program didn’t appeal(34.4%). I couldn’t afford it (31.3%) and too busy (28.1%)A high percentage of respondents rated their experience as excellent forAtmosphere (85.2%), Customer Service (76.4%) and Quality of theProduction 76.6%). However only 53.0% rated the Amenities as ExcellentClose to three quarters (72.8%) bought something at the café/bar. Ofthose who didn’t, the biggest reason was not enough time (67.2%)With regards to ticket prices, the highest number of responses was forpeople prepared to pay between $26 - $35 (66.3%) a high percentage(47.6%) would never pay between $46 - $50 and a significant 71.8%would not pay more than $51 for a ticketFor this survey group, the most popular way people find out what ishappening at JMT is through the Newspaper (52.5%) and Website(51.2%). The next highest source was Friends (33.0%).The final question of the survey called for respondents to provide generalcomments. Some of the common themes were:A call for more promotion of events. Several respondents requested thatan annual program be provided so they can pre-select events. Many alsorequested email marketingA request for more concession ticket options for children, families and selffundedretireesMany said the performances they had seen were excellent and they enjoyattendingMany are pleased the JMT exists and are happy it is provided to the localcommunitySome common logistical concerns were expressed around difficultybooking tickets and selecting seats on the website and EFTPOS not beingavailable.For the full survey results, see appendix 8Coffs Harbour City Council95661

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan5.4 CompetitionThe following table is a summary of the major performing arts competitors in the region.Who Seat Size Specs Price to hire Location ParkingCoffs Service Club(CEX)Auditorium500 – 600GrandUp to 1000Modern Audio Visual EquipmentCatering OptionsOnly curtains not wings about 1mcurtainSmall dressing room off to one side.Monday – Friday $255/dayFriday night – Sunday $505/day15% Surcharge for room hire, foodand beverageMonday – Friday $483Friday night – Sunday $91515% Surcharge for room hire, foodand beverageIn the Centre ofCoffs Harbour4 level parkingSawtell RSL Club600 with seats800 standingSmall WingsOne small change room (fit aboutonly 10 people, with shower andtoilet) Other rooms can be used aschanging rooms but no toilets.Audio VisualCateringAbout $200/day for room hire only First Avenue (14Minutes fromCBD)Parking lot,Council (beach)parking lot nearby and also onroad parkingLecture room 300 –Start of the art audio systems, 34hr min booking $385Hogbin Drive (9Ample of parkingSCU University500 amphitheatrestyle seatinglarge screens the come from the roofso no matter where you sit you canstill see the performanceTimber flooringMin 4hr bookingSmall change rooms$450/dayFriday night – Saturday (for over 100people) must use security $42/hrSunday $50/hrMust us the audio technician $90/hrWeekend cleaning $200/weekendMinutes fromCBD)on siteDrama room 96 seatsSmall wings500 – 600 Big StageRoughly $1500/day (price may jumpHogbin Drive (8Ample of parkingJohn PaulCollegeBuilt in sound systemaccording to how much labor fromschool party for bringing chairs fromall over school)Must send request to principalMinutes fromCBD)on siteCoffs Harbour City Council96662

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanClub Coffs (CoffsHarbour CatholicClub)300 – 400 WingsAir-conditioned2 Dressing rooms (1 with toilet)2 toilets (1 in dressing room)Basic PABar in auditorium/theatreOnly have spot lights$500/day This does not includeaudio/lightingBooking for more then one day$300/dayWest High Street(4 Minutes fromCBD)Ample of parkingon siteDisabled accessBotanicalGardensOpen Grass Seating,said they have had upto 2000 people seatedtherePavilion shell stageBotanical Gardens are unsure ofprice. Permission is needed from theCouncil, and the Council will providethe pricing.Park Avenue (5Minutes fromCBD)Parking area alsoroad parking andTAFE around thecorner withparking facultiesCoffs Harbour ShowgroundNorm Jordan FunctionRoom(“U” Shaped)240Exhibition Pavilion580Air conditioningProjector screen6 toilets (2 x male, 2 x female, 2 xdisabled)Board Room (may be used asdressing room)Air ConditioningCurtain DividerStage (Available)Projector Screen3 ToiletsShowersThe type of event determines thepricing.Pacific highway(5 Minutes fromCBD)Ample of parkingon siteTea room and KitchenMain ArenaGrandstandOver 700 seatsCoffs Harbour City Council97663

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 6:Marketing Plan664

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan6. Marketing PlanThis chapter provides the marketing objectives, definitions, target audience(customers) and the marketing strategies for the JMT. It is worth rememberingthat these are pertinent only to the JMT as a whole and to the commercialactivities it controls. They do not relate to the hirers, however, hirers mightelect to utilise the information within this plan to mirror or participate inmarketing opportunities contained within the chapter.The focus of marketing efforts must always be the customer.6.1 Marketing ObjectivesThe marketing objectives are to:Strengthen JMT’s brand and imageStrengthen relationships with existing customers and capture the attentionand interest of new audiences especially new residents and touristsIdentify and communicate with target audience groups who are potentialcustomers or those who will influence important business outcomesLeverage JMTs relationship with organisations and businesses who aretargeting the same customers to identify mutual opportunities forpromotionLeverage existing tourism visitation strategies to target cultural touristsReview and strengthen the product offering to meet target audiencerequirementsLeverage existing events and festivals as part of the product offeringwhere possibleIncrease yield and volume for all JMT activitiesSupport non-profit hirers with promotional opportunities for their product.Coffs Harbour City Council99665

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanEach time a customer is at a touch point, it represents an opportunity to gettheir attention and make a positive impression.People talk. If they have a good experience and like a product and/or brand,they will tell the world. They will do the same - but will tell more people - if theydon’t have a good experience i.e. the product quality is poor or customer serviceis bad.This is especially true in the digital world we live in where experiences can becommunicated to people all around the world within seconds through socialmedia.6.2.4 Target AudienceEveryone is different. But there are often similarities between groups of peoplebased on a range of factors such as their age, likes/dislikes or country ofresidence. When planning a marketing strategy, similar people are grouped intowhat is known as audiences or markets.A target audience is a group that’s been considered to be an important group ofpeople for the JMT to communicate with. They are likely to be people who willbuy and/or encourage others to buy.So when starting a new marketing strategy, it’s important to decide who the keygroups of people are that should be targeted. The more defined the group is theeffective the marketing will be. For example a broad group like theatre goersshould be split further into groups according to interests, demographics etc. Thiswill mean that relevant marketing messages can be targeted to individuals in theway they like to receive information. This is very important as not everybody willrespond to every message in the same way.The key target audience groups for the JMT are explained in more detail later inthis chapter.6.2.5 Market ResearchSales data can only tell how much of a certain product has sold. It’s alsoimportant to conduct market research – research to uncover information aboutcustomers. Market research information is the foundation for all good marketing.Coffs Harbour City Council101667

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanWhilst this marketing plan has been developed based on research andconsultation and past and current trends, it will be critical to continue to basestrategy on market testing results going forward.Therefore, it is recommended that the JMT make a point of always doing somesimple market research through surveys, questionnaires, and data tracking andanalysis.6.2.6 Paid vs Non-PaidPaid marketing is any promotion that has to be paid for. While non-paidmarketing is promotion that is not paid for. So it makes sense to get as muchfree marketing as possible.There are some great opportunities for the JMT to do this by combining andleverage the marketing effort and spend of other organisations.6.3 Target AudienceThe key target audience groups for the function are:CustomersThose who support the theatre and influence audience perception andinvolvementThose who are supported by the theatre.6.3.1 CustomersThe core customer audience groups for the JMT can be divided broadly into twokey groups – those who visit the venue (audience) and those who hire thevenue. Within these groups, customers are further divided into specific keyaudiences.Those Who Visit the Venue – The AudienceBased on the market research and consultation undertaken, there are some clearopportunities to target specific customer/audience groups to attendCoffs Harbour City Council102668

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Planperformances at the JMT. These customers are the local community andinternational cultural and heritage tourists.The Local CommunityThe local community customer group is further divided into these specificaudience sub-groups in recognition of key opportunities:Current JMT Customers – a key group to build further engagement with.This group has already shown interest and needs to be rewarded for thisinterest and used to the full advantage to participate and influence othersin the communityPerforming Arts Lovers and Flirters – a key group who recognise thevalue of performing arts. The JMT needs to entice as many of these localcommunity members to become or remain customersProfessional Workers in Coffs Harbour - professionals make up thelargest group of workers (17.8%) and performing arts lovers are oftenprofessionals. Also, 42.6% of families in the community are coupleswithout children. There is a high probability that many of these familieshave a relatively high amount of disposable income, which may makethem more likely to attend theatre events.Kids/Students – almost a third (29.8%) of residents in the communityattend an education institution, which makes this an importantdemographic for the JMT to target. Teachers are always looking forinteresting ways to introduce their students to aspects of the curriculum.Targeting shows at school groups is an important demographic given theopportunity to fill seats at times during the week less appealing to manyother patrons. University students are also a group interested inexperiencing performing arts as both patrons and also professionalplacement programs.New Residents – Coffs Harbour is experiencing annual population growthhigher than the average annual growth for the Mid-North Coast and NewSouth Wales. New residents are an important group for the JMT to target.International Cultural and Heritage TouristsAs outlined in the market research section, this group is important for theJMT given that cultural and heritage tourists are interested in attendinglocal theatre.Coffs Harbour City Council103669

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanThose Who Hire the VenueNon- Profit HirerEncouraging non-profit hirers to these key groups will foster local communitygoodwill and enhance the JMT’s brand and generate much needed income.Current Community Theatre Groups - this group are active within thelocal community and an important group to support given its interest andengagement with the performing artsACCTS Members – those community theatre groups are members ofACCTSCommunity Groups – this could include a range of interest groups whomay not have used the JMT previously.Commercial HirerCorporate Clients– areas within the JMT, for example the foyer, can bemarketed to businesses within the community as an option for clientslooking for something ‘different’ for their corporate events and meetings.Educational Institutions – this is an important group to target forawards nights and presentations.Corporate Clients – Meetings, incentive, conference and event market tocompliment and partner with existing providers.Promoters – those in the performing arts industry who are promoting atour and who need a boutique and unique venue.6.3.2 SupportersSupporters of the JMT are another key audience group requiring focus. Thesegroups are often opinion leaders within the community with the capacity toinfluence perception and attendance rates.This is demonstrated by the high percentage (32.7%) of customers in thecustomer survey who indicated that they found out what was happening at thetheatre through friends.As such, the JMT should ensure that supporters are kept up to date with allproduct offerings and improvements so they can help to promote.Coffs Harbour City Council104670

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanThe key supporters are:Council – Coffs Harbour City Council not only provides critical funding butalso has the potential to provide support in promoting the JMT activities tothe local communityReal Estate Agents – it will be important to partner with this group tohelp identify new residents.Tourism Bodies – local, state and Federal. It will be important toleverage off the promotion being done by these bodies to encouragevisitors to Coffs Harbour and specifically interaction with cultural activitiesSponsors, Philanthropists, Volunteers and Student Interns – thosestakeholders who provide financial and in-kind assistance are critical to theJMT - not only because they help to keep the doors open but becausethey also provide a powerful vehicle to promote theatre attendance. DGRstatus will need to be promoted to these groups to gain financial support.The JMT should be looking to constantly build its supporters.6.3.3 Those Who Are SupportedThere are also groups who are supported by the JMT and also require ongoingmarketing attention because of the power this group also has to generategoodwill.Those who are supported include students, local emerging artists and amateurtheatre groups.Coffs Harbour City Council105671

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan6.4 Marketing Strategies6.4.1 Strengthen Current Product Offering andMarket Relevant Products to Each TargetAudienceOne of the most important marketing strategies will be for the JMT to strengthenits current product offering incorporating the feedback and insights gainedthrough the development of this business plan. Through the research andconsultation process a number of opportunities for improvement have beenidentified.Of key importance is the need to ensure the products on offer enable the JMT tobe financially efficient and also to ensure the program provides customers withwhat they want.Once the product offering is confirmed, it will then be important to communicatewith each target audience and to inform them about program elements that arerelevant/of key interest to them. Not all products will be of interest to all peopleand there is likely to be a greater take up when customers receive informationsuited to their requirements.Based on the previous challenges and opportunities identified, the following tableprovides a list of suggestions for products and relevance to the specificaudiences.Product Description AudienceTouringShowsMusic eventsProfessional theatre – focus on comedy and physicaltheaterMusical theatreCustomers who visit thevenue – with a focus onpromoting differentshows of interest to therelevant sub-groupsFilm andScreenMonthly screening of independent Australian, arthouseand foreign films.Independent Australian, arthouse and foreign films hasbeen identified as an important aspect of developingcultural richness and diversity in Coffs Harbour. 25Locally, the Short Sharp Film Festival and the RefugeeFilm Festival go someway to addressing this opportunity.Following the closure of the Sawtell Cinema, the potentialgap in the market has widened even further. CoffsSupportersCustomers who visit thevenue – with a focus onpromoting different filmsof interest to therelevant sub-groupsSupporters25CHCC Cultural Plan 2013 – 2016Coffs Harbour City Council106672

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanLivebroadcastsHarbour, and the JMT are now well placed for theformation of a film society.A film society is a membership club where people canwatch screenings of films, which would otherwise not beshown in mainstream cinemas. They usually have aneducational aim, introducing new audiences to differenceaudiovisual works through an organised and preparedprogram of screenings. A common feature that maycharacterise a film society screening is that they beginwith an introduction of the film to the audience and endwith they promotion of a discussion about the film.Live broadcasts of theatrical performances fromcompanies of national and international caliber.This will require high speed internet available followingthe NBN rollout.Customers who attendthe venue with a focuson promoting differentbroadcasts of interest tothe relevant sub-groupsNon ProfitHireCommercial VenueHireSkilldevelopment projectsServicesCafé/barTicketing/Box OfficeEventsVenue hire at non-profit ratesClassesCommunity DaysLaunchesDemonstrations and acting immersion programsBook launches and book club meetings and readingsFashion showsAuctionsPrivate functionsSection hire – eg foyer onlyCultural tourism eventsFormal functionsBusiness meetings and events (MICE)Kids programProfessional Development programTraining programsMarketing servicesTechnical servicesAdministration servicesAlcoholFoodCoffeeSnacksTicketing systemOnline sales with seat mapping and reserved seatingGeneral admission strategy required2 events per year held at partner venue with catering.Thank you and industry awards evenings.SupportersCustomers who hire thevenue for non-profitSupportersCustomers who hire forcommercial useSupportersCustomers & those whoare supportedCustomers – those whohire the venueCustomers who attendthe venueCustomers who attendthe venueSupportersSupporters and thosewho are supportedCoffs Harbour City Council107673

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan6.4.2 Strengthen Relationships with Customersand SupportersThis sounds simple but is a very important marketing strategy. All marketingstarts with a simple conversation. From there, a relationship is built, and thesales cycle can commence. An effective marketing strategy is based on findingways to start these simple conversations, aimed at building trust. We know thatpeople buy from those they like and trust.The two key priorities for this strategy are:Build a strong connection with current customers and members. These areready ambassadors – people who are already engaged. But it’s importantnot to become complacent. This group will expect to be treated well fortheir ongoing supportBuild partnerships with complimentary businesses and organisations toexplore opportunities for mutual benefit. For example a media sponsorthat provides the JMT with free publicity could be promoted in the annualprogram.One idea for consideration is to develop a member reward program. This mayinclude features such as:1. Reward those who refer2. Member of the month3. Preferred seating4. Early notification of events5. Back stage passes to meet actors6. Bring a friend discounts7. Discount offerings to supporting businesses (eg Jetty cafes and restaurants)This concept will require the commitment from the user groups to maximisepatron benefits.Coffs Harbour City Council108674

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan6.4.3 Strengthen Brand and Do More ActivePromotionAll brands require review and fine-tuning but the effort is worth it as a brandconveys to the world who you are. Get this wrong and you may be sendingincorrect messages to your important target audiences.This strategy requires assessing the JMT brand, ensuring that it is correctlydisplaying the right image, fine-tuning it and then actively promoting the brandconsistently and effectively through all mediums.Doing this successfully will mean the JMT will need to pay attention to all of thelittle things - to looking at what’s done every day. Bringing hirers on board withthis process is a key to its success. All hirers will need to commit to workingcollaboratively to promote a positive brand of the JMT.Everything about the way the JMT is presented and every interaction someonehas with a staff member impacts on brand perception. This means payingattention to all small details including staff wearing name badges, for example.To convey a positive brand perception, the JMT firstly needs to define its brandtraits and unique selling position.Some suggested brand traits may include:Highlighting the fact that the JMT is local and part of the communityShowing JMT’s commitment to the performing arts.Some suggested unique selling position points may include:The intimate nature of the venueThe by-gone era look and feel of the venueIts history and connection to communityThe depth and quality of productions provided to the local community.It will also be important to develop a tactical promotion plan, which definesmessages, audience and channel.Some channel ideas for consideration in promoting the venue to customers whoattend the venue may include:Coffs Harbour City Council109675

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanTargeted Use of Paid Advertisements – these could be consideredwithin the marketing mix, however they must have:ooA measurement strategy to evaluate the effectiveness of the ad egmention this ad for a 10% discountSeek advice and guidance from tourism experts about the best timesand the best magazines and papers aimed specifically at visitors to theregion.Toilet Door Promotion - gig guide on the back of the door to let peopleknow what’s coming in the next month both at the JMT and also partnerlocations eg Jetty restaurants and cafés.Subscription Booklet - annual production with major program, quarterlygig guideAtmosphere – ambient background music, foyer displays, props in foyerIn Foyer Advertising – mount TV and sell and play advertisementsRadio Program – gig guide, readings and performing arts discussionBrochure - providing an overview of the venue space for hire and costs.Two other channels that should be considered include social media and websitepromotion and editorial. Both of these channels provide opportunity forpromotion through non-paid means.Social Media & Website PromotionFurther promotion of the existing Facebook page is recommended.Viral campaigns should be utilised as an initial marketing tool to increasevisitation to the Facebook page. The website and the Facebook pages need todirect customer traffic from one site to the other.Customers can write reviews and then JMT can host the performers behind theprogram.It will also be important to use the JMT website more actively to promoteactivities.Coffs Harbour City Council110676

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanEditorialEditorial is considered a far better strategy than paid advertising becausecustomers trust this source of information and are suspicious of paidadvertisements.A 12-month editorial program must be developed and implemented. This mustinclude local, national, international articles written for targeted media eg Voyeurfor Virgin because they fly into Coffs Harbour, but the magazine is on all flights,therefore the article must have appeal to passengers regardless of theirdestination. A media release that focuses on an event with the added bonus ofwebsite attraction will have appeal and therefore will have an improved hit rate.Key to this strategy is planning and advanced preparation of stories. Magazinesare written and printed at least 3 months prior to distribution.One key idea for consideration is to seek NBN sponsorship - gig guide,community service announcements, supplementary spend with all hirers doing agroup buyIt will also be important to develop a tactical promotion plan for communicatingwith supporters and those who are supported. For supporters, the channelselection will need to be more personalised to support the relationshipdevelopment.Some ideas for consideration include:Coffee mornings for new residents, partner with real estate agents topromote thisCouncil run new residents nights and eventsPatrons, members and volunteers thank you event, awards nightCoffs Coast Tourism should be contacted to ensure that the JMT programis promoted throughout all of the regions tourism publications. Anintimate understanding of tourism marketing and distribution channels isconsidered vital. Key advocate and mentor – Jodie Evans, Novotel PacificBay Resort and CHCC Tourism Manager.Hold briefings at regular points to tell supporters about the programCouncil/Real Estate Agents – send out packs to new residentsCoffs Harbour City Council111677

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan JMT has an opportunity to seek major patron for promotion. GivenRussell Crowe’s connection with the region, requesting his support asPatron through an endorsement (quote or letter) for use on the websiteand in the foyer. Key connection Jenny Oloman CHCC.Familiarisation tours - an invitation to tourism operators, accommodationproviders, business people, and community organisations to come andexperience the JMT at no cost should be organized a few times per year. Itwill assist it raising the profile of the JMT of people who can refer theexperience on to others including visiting family and friends (a largesegment of tourists coming to Coffs Harbour).6.4.4 Improve Logistics to Enhance CustomerExperienceThe final strategy is focused on addressing some of the logistical concerns thathave been raised. Addressing these is a marketing strategy at its simplest level –doing lots of little things to improve the customer experience. More mileage willbe gained if the JMT tells the community about the changes it is making.These are some suggestions:Provide an efficient ticketing systemoooGeneral admission tickets on day of the eventPremium prices for rows G,H and JSecure internet sales provisionMake some improvements to the caféooooRemove low cost items – (chuppa chups, freddo frogs) and whenfamily programs are on, bundle food at $5 per packageRemove chips and noisy itemsCheese and biscuits, or complimentary items to go with alcohol.Matinees – need coffee and muffin deals (work with local businessto supply them)Coffs Harbour City Council112678

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanooConsider cash only aisles for quicker sale of alcoholic drinks. Thefeedback is that it takes too long to be servedOpen the bar and box office 2 hours before show to encouragepeople to come early to the show, building atmosphere andreducing congestion prior to show commencement. Activelypromote happy hour in the first hour with reduced drink prices.Implement EFTPOS facilitiesConsider EFTPOS machine for cash withdrawalImprove the website so that it is maintained regularly, easy to use,provides online ticket purchase facility, online venue booking forms and anonline venue hire availability calendar so potential hirers can checkavailability. It must be secure and promoted as such, given the perceptionwith current customers that this is not the case (as outlined in thecustomer survey feedback in December 2012).Coffs Harbour City Council113679

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 7:Organisational Plan680

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan7. Organisational PlanThe Organisational Plan outlines the new structure for the JMT and the roles ofall stakeholders of staff and stakeholders.7.1 Current Organisational Structure for CHCCGeneral ManagerExecutive AssistantMayorExecutive AssistantGeneral ManagerDirector - CorporateBusinessDirector - CityServicesDirector - Land UseHealth &DevelopmentExecutive Manager -EngineeringServicesExecutive Manager -Coffs Harbour WaterOperationsExecutive Manger -City WorksExecutive Manager -Cultural &CommunityDevelopmentOperationsCoordinator JettyTheatreManager - LibrariesManager CommunityDevelopmentGalleries/ MuseumDirectorFront of HouseOfficerTeam Leader -Resources &SupportTeam Leader -Lending & BranchesTeam Leader -Information &Collection ServicesCommunityDevelopment OfficerAdministrationAssistant - CCDAdministrator -Bunker GalleryAcquisitions OfficerCirculation AssistantLibrary - Children &Youth CoordinatorCommunityDevelopment Officer -CommitteessAdministrationSupport OfficerPublic ProgramsOfficer - EducationResources SupportLibrarianCirculation AssistantCasualReference LibrarianCommunityDevelopment Officer -GeneralistAdministrartionAssistant - CuratorI.L.L & Serials OfficerLibrary Assistant -CasualHome LibraryCoordinatorCommunityDevelopment Officer -CulturalCoordinator -MuseumElectronic ServicesCoordinator - LibraryAdministrationSupport - LibrariesSpecial CollectionsLibrarianCommunityDevelopment Officer -AboriginalTechnician -Galleries MuseumCoffs Harbour City Council115681

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan7.2 New Organisational Structure for JMTThe following flow-chart indicates a new staffing structure for the JMT,underneath the JMT Manager. It also identifies where the ‘supporters’ of the JMTart– in New terms of the volunteers Org and Chartcontractors fit.General'Manager'Director'City'Services'Execu7ve'Director'of'Cultural'and'Community'D’ment'JMT'Manager'Administra7on'Officer'Volunteers'Service'Contractors'Coffs Harbour City Council116682

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan7.3 Establishment of the ManagementCommitteeCouncil can create Management Committees under its delegations bestowedunder Section 355 (S355), Section 377 (S377) and Section 378 (S378) of theLocal Government Act 1993.The business model recommends that the community be formally included at astrategic level and therefore CHCC will need to consider the formation andappointment of a Strategic Jetty Memorial Theatre Management Committee priorto July 2013.Appointment and reappointment of members would be in accordance with theprovision of S355 and S377 of the Local Government Act 1993.Potential items for inclusion within the Terms of Reference for this ManagementCommittee include:Term: minimum 1 yearMeeting – minimum 2/yearCouncil Contact Officer – Jetty Memorial Theatre ManagerMembership - Minimum of four and maximum of 10 members who arerepresentative of the community and of the interest groups of the facilityOffice bearers – the members elect office bearer of President, Secretaryand Treasurer. These positions form the Executive of the Committee Charter – Implementation of the JMT Strategic Plan 2013 – 2018.Membership could include:Sitting chair and secretary of the Association of Coffs Community TheatreSocieties (ACCTS) committee (or its replacement entity)One user group representative not a member of ACCTSCommittee member with an interest in film cultureBusiness person with no past involvement in the JMT, but an interest incultureCommunity member with proven marketing experienceCoffs Harbour City Council117683

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanCommunity member with commitment to culture with no past involvementin the JMTExecutive Manager Cultural and Community Development CHCC.7.4 Relationship to Management CommitteeIt is essential that all stakeholders understand their role and responsibilities withthe implementation of the strategic plan and the business plan. The diagramRelationship Chartbelow is an outline of these relationships.CouncilStrategic PlanVision, Values, Goals,Strategies and KeyPerformance IndicatorsBusiness PlanBusiness Model, OrganisationalPlan, Marketing Plan andFinancial PlanManagementCommitteeCouncil Staff7.5 Roles and Responsibilities7.5.1 General Manager and CouncillorsCommitment to ensure continued use of the JMTAllocation of an annual capped investment/subsidy.7.5.2 Management CommitteeReview the strategic performance of the JMT against relevent targets asoutlined in the JMT Strategic Plan 2013 – 2018Prioritise maintance spend annually, andOversee the trust fund.Coffs Harbour City Council118684

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan7.5.3 Executive Manager, Cultural and CommunityDevelopmentMember of the Management CommitteeLeadership support to the JMT ManagerMonitor budget expenditure against targetsMonitor program deliveryMonitor staff performance.7.5.4 JMT ManagerRole has four core elements1. Business DevelopmentImplement the BPDevelop new programs and strategies as per the strategic planDrive increased use of the JMTProgram developmentDrive cash positive commercial activity.2. MarketingDrive improved customer service and satisfactionDrive volunteer recruitment and supportImplement the marketing plan.3. Financial ManagementFinancial management and performance of the JMTFund generation from grants, sponsorship and partnershipQuarterly performance tracking and reporting against all strategic planKPIs.4. Operational DeliveryImplementation of operational requirementsCoffs Harbour City Council119685

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan7.5.5 Administration OfficerSupport the JMT manager in all aspects of their role including:Customer serviceFront of houseBack of houseMarketingGovernance and complianceGeneral administrationProgram development and delivery.7.5.6 VolunteersSupport with front of houseSupport with back of house activitiesSupport with marketing initiativesSupport with maintenanceSupport with governance and compliance mattersSupport with general administrationSupport program development and delivery.7.5.7 Service ContractorsProvide value for money, quality services on an as need basis.Coffs Harbour City Council120686

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 8:Operational Plan687

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan8. Operational PlanMuch has already been developed for the day-to-day operations of the JMT. Thissection of the plan is meant to serve only as checklist of items that are requiredfor the new business model.If they are already in existence, then a review would be in order to ensurelanguage and strategies are in line with the new direction. If they are not inexistence, priority needs to be given to their development and implementation.Notes are provided in this section, only where a specific requirement needsconsideration. These notes are meant to act as a starting point only.Policy and Procedure ManualHighly visible and easily accessible, the policy and procedure manual will containall current documents regarding the operations of the JMT. These could also bemade available electronically on the website.Asset RegisterThe asset register needs to be updated regularly and also used to reportbreakages or damages. Wear and tear and replacement timeframes should bedeveloped for all assets to assist the Management Committee to plan formaintenance and capital expenditure and in discussion with Council’s propertysection.Stock at HandManagement of stock inventory for the café/bar needs to be undertakenregularly, on-line if possible and reconciled quarterly. All stock losses should bereported in a quarterly report.Financial DelegationsReview and update this policy for making for any expenditure decision, includingprogram development. This must include clear delegations for the JMT Managerand administration team.Segregation of DutiesRoles and responsibilities of all parties including volunteers should be developedand included in the JMT policy and procedure manual.Coffs Harbour City Council122688

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanVolunteer Induction KitA concise induction kit should be developed and provided to all volunteers whowork at the JMT. This will need to be compliant with CHCC codes, policies andprocedures.Occupational Health and Safety policyIn line with Council policy, information needs to be clearly communicated to allvolunteers and staff.Where possible, training grants should be sought to provide training tovolunteers and user groups. The goal is to share the responsibility amongst asmany people as possible.Quid Pro QuoA policy for quid pro quo contributions should be developed.DonationsA policy for the handover of all donations, including rights of access and transferof ownership is needed. All previous donations need to be identified and formallyhanded over to the JMT under the new policy or returned to the donor. If kept,they must be added to the asset register.Point of Sale and Stock Tracking SystemA system for monitoring and tracking sales is needed. Whilst currently the SABOsystem does this for ticket sales, consideration to bar/café sales and othercommercial products needs consideration. Simple and reliable are therequirements of the system.Collecting customer information regarding their sales history will be critical toplanning all marketing initiatives.Invoice and Billing SystemThe invoice and billing system for box office services needs to be reviewed andstreamlined. This must be developed in consultation with the finance section.Contact DatabaseA database containing all key business contacts – suppliers, wholesalers andcontractors etc needs to be maintained on an ongoing basis.Coffs Harbour City Council123689

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanPricing Policy for JMT Run ActivityThe ticket pricing of JMT run activity is to be based on 54% occupancy and thenpriced for full cost recovery (for 100% of the cost of sales). If this ticket priceexceeds $45, the activity should not proceed without approval from theExecutive Manager Community and Cultural Development.Pricing for hire of smaller zones for the theatre should be formalised.A door deal policy should be developed to allow the JMT manager to negotiatenew methods for promoting cultural activities. Pricing for all additional servicesneeds to be communicated with all hirers and form part of their hire agreement.This pricing policy does not relate to venue hirers, who retain the right to settheir own ticket prices. However, hirers who run shows that are being subsidisedby grant funding should display these details on ticketing information.Refund PolicyReview and update the refund policy if required.Complimentary Ticket PolicyThe development of a consistent and transparent complimentary ticketingstrategy should be developed. Accurate record keeping for all complimentarytickets will be critical. Direct ticket costs from SABO at 40 cents per ticket mustbe recovered from complimentary tickets.Business Performance TrackingThese are core information sources that the Manager must collect, analyse andreport on (not less than quarterly):Cash-flow projectionReconciliation of financial statementsSales and advance bookingsMarketing effortsCustomer feedback.Financial reconciliation is recommended monthly.Coffs Harbour City Council124690

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanDevelopment Application (DA)A variation to the existing DA should be lodged to increase the hours of operationto 11pm.Storage PolicyStorage is a significant challenge for the JMT. It will be essential to resolve thelimited storage for the facility. It is suggested that a working party beestablished consisting of the two shed leases to establish a system for storagefor the JMT as an entity rather than for user groups.The matter pertaining to payment of electricity and insurance for the shedsshould be investigated further and resolved in the development of the storagestrategy.PianoNeed for the piano should be established, and if it is deemed a requirement thenits placement must be formalised, and if it is to be moved, then payment ofmoving and tuning will be required by the hirer who has requested this.Conflict of Interest/ConfidentialityIt will be essential to develop a policy that deals with the access to, and use ofsensitive information including customer details.Fundraising PolicyA policy that defines the types of fundraising activities that can be conducted atthe JMT needs to be developed. This should include co-productions where fundsare directed into the JMT trust account.Customer Survey StrategyCustomer satisfaction will be critical to measure and manage. The developmentof a policy on who and how this is done is required.Suggestion BoxA suggestion box to gain feedback from hirers, volunteers, customers andvisitors to the JMT should be considered.Coffs Harbour City Council125691

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanReporting FaultsFormalisation of how to report and record equipment faults is needed for allhirers.Identifying Improvement for EfficienciesA process to identify and communicate potential improvements is needed.Key Card AccessA policy of who and how hirers can access the venue is needed. This policy mustinclude who pays for security call out if there is a security breach, or a lost keycard.Formally recording who has access cards at all time will be needed.Hire Agreement ConditionsReview of the current hire forms should occur, and must include depositpayments and a clear process around cancellation.Access time, and any charging costs should be included in all rental agreements.Working BeesDevelopment of an annual working bee program or volunteers should bedeveloped for help with gardening, maintenance and ‘freshening-up’ the JMT.Petty CashReview the policy on handling petty cash, reconciliation processes and delegationfor type/amount of spend.Evacuation StrategyA revised evacuation strategy should be developed in full consultation with theuser groups and Council safety staff.Booking Calendar On-lineA booking calendar should be made available on line to enable potential hirers tocheck availability.Coffs Harbour City Council126692

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanDGR StatusA review of Council’s DGR status should be conducted and must include JMTactivities.Booking ProcessAll hirers must sign a contract to secure booking and pay a non-refundablebooking fee to secure dates.Financial ReconciliationThe JMT Manager must maintain an internal financial management system thatcan track all income and expenses. These records must be reconciled againstFinance One on a monthly basis to allow for discrepancy identification andremediation.Financial Resource Code AllocationThe JMT Manager in partnership with finance staff must develop meaningfulresource allocations for all income and expenditure for the JMT. This mustinclude capacity to tie expense to income for all products and services. It isrecommended that a Finance One JMT handbook be developed to ensureconsistency into the future.Coffs Harbour City Council127693

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSSection 9:Financial Plan694

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan9. Financial PlanThis chapter of the business plan provided four vital pieces of information. Theyare: Three year income summary for the Trust Account Projections for commercial activity Running costs of the JMT Three year profit and loss statement9.1 Trust AccountJetty Memorial Theatre Trust AccountThree Year Income SummaryINCOME Year 1 Year 2 Year 3 AssumptionsSOURCEOpening Balance $28,632.15 $58,944.13 $71,529.54 Year 1 Opening Balance is based onfigures from November 2012.CHCC $30,181.47 $0.00 $0.00 CHCC deposit to match opening balanceof Trust Account as at November 2012.Jetty MemorialTheatre($12,000.00) $0.00 $12,000.00 Figures represent a $12,000 loan from theJMT Trust Account to the JMT to coverthe Cinema and Film capital expenses tobe repaid in year 3.Grants $0.00 $0.00 $100,000.00 Grant income target over a three-yearperiod to be sourced the JMT Managerand for capital expenditure items only.Other $10,000.00 $10,000.00 $10,000.00 Other income based on 1 fundraisingevent hosted each year with 100%occupancy, tickets @ $40 p/head.Sub-Total $56,813.62 $68,944.13 $193,529.54Interest Received $2,130.51 $2,585.40 $7,257.36 Interest calculated from the total income,based on an interest rate of 3.75%p/annum.TOTAL INCOME $58,944.13 $71,529.54 $200,786.89Closing Balance $58,944.13 $71,529.54 $200,786.89Grant income is a three target, and could be made up of smaller grants over theentire three-year period.application processes.Note 1: All figures represented are GST exclusive.The JMT Manager will be responsible for grantCoffs Harbour City Council129695

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan9.2 Commercial Activity SummaryCommercial activity should be viewed as the opportunities for generating incomefor the JMT.Whilst the income and expenses from the table below are reported in the profitand loss statement, the financial operation of the JMT does NOT rely on anyincome from these activities. If they are run, and are profitable, then the JMTshould begin to build a balance in their operating bank balance. These fundscould be then used for further commercial activity and or capital items for thetheatre.There is no expectation that all of these commercial activities have to beimplemented. Each of them will require a considered decision by the JMTManager in terms of the time when the organisation has the capacity to delivery,and there is demonstrated consumer readiness for these products and services.PRODUCTCOMMERCIAL ACTIVITYTouring Shows* Music Events* Professional Theatre* Musical TheatreFilm & Screen* Monthly filming ofindependent Australian,arthouse and internationalfilms.Skill Development Projects* Kids Development Programs* Professional DevelopmentProgram* Training ProgramsTargetIncomeJetty Memorial TheatreCommercial Activity SummaryExpenses Balance Assumptions$26,676.00 $24,008.40 $2,667.60 Based on 5 shows/year @ 54% venueoccupancy with an average ticketprice of $40, this achieves full costrecovery with a 10% profit margin.$16,005.60 $5,601.96 $10,403.64 Based on this product commencing inyear 2, income would be based on 8annual screenings @ $15 p/personp/show with 54% venue occupancy.Direct expenses are 35% of the filmand screen income.These values are provided in the Profit& Loss in years 2 & 3.$50,000.00 $50,000.00 $0.00 Based on a $50,000 grant receivedeach year to host skill developmentprojects, achieving full cost recovery.If no grant funding is received, eventswill not be hosted.Coffs Harbour City Council130696

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanAnnual Events* Thank you event for patrons,members and volunteers* Public Relations eventEvents to be hosted by JMTat an external venueServices* Marketing Services* Technical Services* Training Programs$12,000.00 $8,000.00 $4,000.00 Based on 2 annual events held with100 tickets sold at $60 p/ticket.Cost of event would be $40 p/ticketsold.$30,000.00 $30,000.00 $0.00 A estimation based on the pastrequirement of technical support forvenue lighting setup and marketingefforts for each show.No profit margin assumed.Café* Alcohol* Food* Coffee* Snacks$41,940.00 $18,873.00 $23,067.00 Assumption based on 2012 ticketsales (17,475), with 60% of ticket saleoccupants purchasing from the café atan average spend of $4 p/head.Direct expenses are 45% of the cafeincome.Ticketing/Box Office* Ticketing System* Online sales with seatmapping and reserved seating* General admission$17,475.00 $6,990.00 $10,485.00 Assumption based on 2012 ticketsales (17,475) with a ticket price at $1p/ticket, at a cost of $0.40 per ticket.Ticketing process to be reviewed inYears 2 & 3 therefore, figures are notincluded in the Profit & Loss for thoseyears.Year 1 totals $178,091.00 $137,871.40 $40,219.40 No Film & ScreenYear 2 totals (plus 3% CPI) $181,920.25 $140,577.86 $41,342.39 No Ticketing/Box OfficeYear 3 totals (plus 3% CPI) $187,377.86 $144,795.20 $42,582.66 No Ticketing/Box OfficeNote: All figures represented are GST exclusive.Coffs Harbour City Council131697

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan9.3 Council Capped InvestmentAs outlined throughout the business plan, Council will continue to providefinancial support for the JMT for the next three years. This investment will be forthe running costs associated with the operation of the JMT with a staffing level oftwo full-time employees.The amount shown below, is considered a base annual investment, and a CPIindex has been added year-on-year in the profit and loss statement.MAINTENANCE&SAFETY&RUNNING&COSTS& ! !&& && && && ! !MOTHBALL&COSTS& ANNUAL& ! !Building! Rates! $400.00! ! !Gardens!Building!Hand!Mowing! $762.00! ! !Herbicide! $322.00! ! !Points!and!venting! $990.00! ! !FIP!monitoring!! $1,500.00! ! !FIP!maintenance! $943.00! ! !Light!and!Exit!signs!! $841.00! ! !Security!System! $500.00! ! !Security!Patroling!! $2,850.00! ! !Pest!Control! $1,000.00! ! !INSURANCE& Building+!contents! Statewide!! $11,000.00! ! !&& Total&Mothball&Costs& $21,108.00& ! !Total&Mothball&Costs&including&a&20%&Contingency& && && $25,329.60& !!MAINTENANCE&BUILDING&HOLDING&COSTS& ANNUAL& ! !General!Tools!&!Sundry!Maintenance!$2,280.00! ! !Sound!System! Mixed!Cost! $5,000.00! ! !Lighting!Rig!Globes!for!Projector! $1,000.00! ! !Globes!(Other)! $3,000.00! ! !Piano! Tuning! $720.00! ! !3!days!p/month!Technical!Support!retainer! $12,000.00! ! !Plumbing! Plumbing!R&M! $4,500.00! ! !Sanitary!Disposal! Scheduled! $528.00! ! !Cleaning! Scheduled!! $1,872.00! ! !AirCon! Maintenance! $968.00! ! !Other! Disabled!access!! $832.00! ! !IT& Communication! ADSL! $1,056.00! ! !$69.00!per!day!$488.00!per!week!!Coffs Harbour City Council132698

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan& !Phones!(4!lines)! $3,966.00! ! !EFTPOS! $504.00! ! !Fire!Alarm!monitoring!line! $240.00! ! !FIRST&AID& Personal! First!aid!&!PPE! $700.00! ! !OFFICE&Copier!Lease!and!Printing!Printing! $2,848.00! ! !UTILITIES& Water/sewage! Water/sewages! $571.00! ! !Power! Power!Direct! $7,500.00! ! !&&LICENSING&STAFF&Waste! CHCC! $460.00! ! !Vehicle! CHCC! $6,126.12! ! !OGLR! OGLR! $500.00! ! !APRA! APRA! $300.00! ! !PPCA! PPCA! $300.00! ! !Total&Holding&Costs& && $57,771.12& !!On^Site!Manager! Wages!&!on^costs! $91,780.00! ! !Administration!Full!time!wages!&!on^costs! $81,561.00! ! !Total&Staff&Costs& && $173,341.00& ! !MISCELLANEOUS&COSTS& ANNUAL& ! !IT& Communication! Mobiles!(2)! $240.00! ! !$158.28!per!day!$1,110.83!per!week!BANK& Merchant!fees! Merchant!Fees! $2,212.00! ! !UTILITIES&Power!for!Cost!of!Power!Sales! $7,500.00! ! !Total&$27.27!per!day!Miscellaneous&$191.38!per!Costs& && $9,952.00& !! week!TOTAL&RUNNING&COSTS& $266,393.72& !! !Rounded&variance&to&the&nearest&thousand& $266,000.00& !$729.85!per!day!$5,123!per!week!Note: All figures represented are GST exclusive.Coffs Harbour City Council133699

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business Plan9.4 Three Year Profit and Loss StatementJetty Memorial TheatreThree Year Profit & LossCAPITALYear 1 Year 2 Year 3 AssumptionsEXPENSESIT Upgrade $20,000.00 $0.00 $0.00 Allocation of $20,000 for an IT upgrade.TOTAL $20,000.00 $0.00 $0.00INCOME* Year 1 Year 2 Year 3 Assumptions*Income is increased by 3% each year to cover CPI.Capital Loan $12,000.00 $0.00 $0.00 Loan from JMT Trust Account to cover capital expenses relating to the Film &Screen activities commencing in year 3.For additional information on JMT Trust Account see the JMT Trust AccountThree Year Income Summary.Council CappedInvestment$266,000.00 $273,980.00 $282,199.40 For additional information on Council Capped Investment see the CouncilCapped Investment Summary.Commercial Activity $178,091.00 $181,920.25 $187,377.86 For additional information on Commercial Activity, see the Commercial ActivitySummary.Year 1 includes ticketing/box office activities. This is not included in years 2 &3.Year 2 and 3 includes film and screen productions. This is not included in year1.Commercial Venue $10,980.00 $11,309.40 $11,648.68 Assumption based on 4 weeks commercial hire @ $2,745 p/week.HireNon Profit Hire $51,200.00 $52,736.00 $54,318.08 Assumption based on 32 weeks non-profit hire @ $1,600 p/week.TOTAL $518,271.00 $519,945.65 $535,544.02Coffs Harbour City Council134700

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanCOST OF INCOME* Year 1 Year 2 Year 3 Assumptions*Costs of income is increased by 3% each year to cover CPI.Commercial Activity $137,871.40 $140,577.86 $144,795.20 For additional information on Commercial Activity, see the Commercial ActivitySummary.Merchant Fees -Commercial ActivityCommercial VenueHireMerchant Fees - NonProfit HireYear 1 includes ticketing/box office activities. This is not included in years 2 &3.Year 2 and 3 includes film and screen productions. This is not included in year1.$2,137.09 $2,183.04 $2,248.53 Merchant fees calculated at 1.2% of Commercial Activity income.$0.00 $0.00 $0.00 No cost of sales assumed. Any additional costs incurred would be directlybilled to the performer at full cost recovery.$2,200.00 $2,266.00 $2,333.98 Merchant fees calculated at $0.20/ticket assuming 11,000 tickets sold in year1 (as per 2012 season non profit ticket sales).Discretionary Costs $40,000.00 $41,200.00 $42,436.00 Annual budget that could be used for marketing, promotion, advertising orcasual labour requirements.TOTAL $182,208.49 $186,226.90 $191,813.71Coffs Harbour City Council135701

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanEXPENSES* Year 1 Year 2 Year 3 Assumptions*Expenses are increased by 3% each year to cover CPI.Bank Fees $2,212.00 $2,278.36 $2,346.71 Annual allocation for bank fees.Building $8,700.00 $8,961.00 $9,229.83 Figure based on the total building expenses for venue running costs.IT $6,006.00 $6,186.18 $6,371.77 Figure based on the total IT expenses for venue running costs.Insurance $11,000.00 $11,330.00 $11,669.90 Figure based on the total building insurance cost for venue running expenses.Loan Repayment $0.00 $0.00 $12,000.00 Repayment to the JMT Trust Account for the Film and Screen activities capitalexpenses incurred in year 1.For additional information on JMT Trust Account see the JMT Trust AccountThree Year Income Summary.Licensing $1,100.00 $1,133.00 $1,166.99 Figure based on the total annual licensing requirements.Maintenance $25,484.00 $26,248.52 $27,035.98 Figure based on the total maintenance expenses for venue running costs.Mothball Costs 20%Contingency$4,221.60 $4,348.25 $4,478.70 Based on a 20% contingency allocated to the mothball costs.Office $2,848.00 $2,933.44 $3,021.44 Figure based on total printing expenses for venue running costs.Safety $9,324.00 $9,603.72 $9,891.83 Figure based on safety and first aid expenses for venue running costs.Staff $173,341.00 $178,541.23 $183,897.47 Annual wages including on-costs for 1 x on site manager, 1 x administrationofficer and 7 weeks relief wages for the administration role.Utilities $22,157.12 $22,821.83 $23,506.49 Figure based on total utilities expenses for venue running costs.TOTAL $266,393.72 $274,385.53 $294,617.10TOTAL PAYMENTS $468,602.21 $460,612.43 $486,430.81TOTAL INCOME $518,271.00 $519,945.65 $535,544.02Surplus (Deficit) $49,668.79 $59,333.22 $49,113.21Opening Balance $0.00 $49,668.79 $109,002.00Closing Balance $49,668.79 $109,002.00 $158,115.22Coffs Harbour City Council136702

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSJetty Memorial Theatre |Business PlanThe closing balance should be considered ‘speculative’ as the profit and lossincludes the commercial activity (which may or may not proceed). Any profitrealised, should be reinvested into JMT resources, commercial activity andmarketing strategies.Note: All figures represented are GST exclusive.Coffs Harbour City Council137703

Agenda - Ordinary Meeting 11 July 2013 - CITY SERVICES DEPARTMENT REPORTSBusiness Plan Prepared by:R&S Muller Enterprise Pty LtdSamantha Muller02 6681 4772www.mullerenterprise.com.au704