<< Peninsula New 07 August 2006 - Pool costs examined >>

Pool costs examined

Pool blankets, vending machines and fewer concession tickets are among the recommendations for ways to help get the new Woy Woy pool to pay for itself.

Gosford Council had asked Stratcorp Consulting to review of its previous projections for the Peninsula Leisure Centre and make recommendations.

Recommendations included restructuring staff to create a more sales-focused team, redesigning the café, buying food vending machines and pool blankets, reviewing the pricing structure for group fitness, and an independent energy audit.

Stratcorp stated that that the marketing position was "not required".

It stated that council should use its existing public relations and media liaison staff.

However, staff at the centre have responded, saying that the level of support from council's marketing and communication section was "inadequate" to support the centre.

They also stated that the sales-focused doctrine was not preferred.

"A difficulty with having a sales team is that other staff tend to shy away from selling as part of their role.

"The management philosophy currently in place is that all staff have a role to play in selling the features and benefits of the centre and its programs."

Stratcorp also suggested that a solid brick wall between the food preparation and serving area in the café be removed, so the centre would not have to staff both the wet and the dry areas resulting in a saving of $45,000 per year.

Staff at the centre agreed but stated that the walls of the café were part of the integral structural design of the centre.

Stratcorp suggested that council purchase food vending machines, as its current rate of return, 22 per cent, was well below the expected returns.

The vending machines are currently supplied by external contract.

It stated that council could receive 100 per cent of revenue from vending.

Leisure centre staff agreed and stated they were currently negotiating the purchase of the machines.

Stratcorp suggested that council review its group fitness pricing structure as the rate of $10 "did not encourage regular use through membership" and was "too low and well below other community leisure facilities in NSW".

Staff agreed but said the issue of pool multipasses was a higher priority .

They stated that as of July 18, over $60,000 worth of multipasses had been sold to over 460 people, while only 74 pool-only memberships had been sold.

They stated that lost income potential could be as high as $160,000 per year, recommending the removal of pool passes.

Stratcorp suggested that council invest in $50,000 worth of pool blankets for the 50 metre pool, which would result in an energy saving of 25 per cent or $21,000 per year.

Council would make its money back on the investment in just over two years.

Staff agreed, stating that the purchase was a "high priority" and that negotiations for the purchase of the blankets had commenced, along with investigations for storage facilities for the blankets.

Stratcorp also suggested that council conduct an independent energy efficiency audit.

Staff agreed and said that energy represented a significant portion of the centre's costs.

They said it was expected that the audit would be conducted by September.

The final direct operating costs above budget for both the Peninsula centre and the Gosford Pool for the last financial year was expected to be $1,196,261.

A council report stated that the total deficit had not been identified in the budget, however it was expected that it would be funded from the council's recurrent budget.

It stated that council officers were currently identifying possible funding sources.

A summary would be presented to councillors on the actual capital costs and the history of the development of the project.

Council's Finance and Integrated Planning Committee would include the centre on its agenda, as a regular item, to enable monitoring of the facilities improvements

Council agenda SF.24, August 1