FAQs - General (including Operations and Financial)

Has Council been running down Bondi Pavilion in recent years?


No. While a major conservation and upgrade project is required, Council does continue to annually invest in Bondi Pavilion with regular maintenance, upgrades and arts and culture activities. A key recent project has been the Bondi Pavilion Fire Safety Upgrade.  In 2015-16 Council spent $1.585 million on this project, partially offset by a federal heritage grant.  The project is expected to be completed in 2016-17.  Another example is the installation of new film projection facilities in the theatre. A new audio mixing desk, speakers and microphones have been purchased, and a new screen and projector will be installed this financial year. 

 

How are Bondi Pavilion operations currently funded?


Bondi Pavilion is a very busy community facility. Its operations are paid for by Waverley Council, partially offset by income from venue hire and commercial tenancies. 


In the most recent financial year 2015-16 Council spent $1.8 million operating Bondi Pavilion.  After operating income, Council’s net operating subsidy to Bondi Pavilion for the year 2015-16 was $682,408.

 
The operating figures above do not include capital works expenditure (such as the fire safety upgrade), or corporate overheads.


More detailed figures are below:


Bondi Pavilion operating income and expenditure – Actuals 2015-16
(excludes depreciation and reserves)


 Notes
 2015/16 Actuals ($)
Income

Bondi Pavilion Facility/Venue Operations - User Charges
 Includes room hire fees
 (288,913)
Bondi Pavilion Facility/Venue Operations - Other Revenue
 Includes commercial tenancy revenue, utilises reimbursement, bar sales
 (687,522)
Cultural Programs - Bondi Pavilion revenue
 Includes hire income for music studio, theatre and gallery; school holiday program income; pottery studio income; theatre event tickets and other ticket sales
 (144,472)
Total Income
(1,120,907)



Expenditure

Bondi Pavilion Facility/Venue Operations - Employee Costs
 Includes onsite permanent and casual venue and facilities staff and oncosts
 476,211
Bondi Pavilion Facility/Venue Operations - Materials + Contracts
 Includes cleaning contract, maintenance supplies, temporary onsite staff
 545,595
Bondi Pavilion Facility/Venue Operations - Operating Expenses Includes cost of utilities, land tax, purchase of goods for bar sales 167,732
Cultural Programs - Bondi Pavilion expenses
 Includes school holiday program, pottery, gallery and music costs; author talks and other theatre events; Carols by the Sea event; and a proportion of Cultural Programs staffing costs
 613,777
Total expenditure
1,803,315



NET TOTAL
682,408

 

What is the cost of the project as submitted in the DA?

 

The cost estimate for Stage 1 is $15.2 million. This cost estimate was prepared by a qualified quantity surveyor. It includes over $3 million in contingency - this is a contingency of over 20 per cent for this stage of the project. This is a high level of contingency, which has been applied due to the building's heritage status, complex uses, and community importance.

 

Is the project financially viable?

 

Yes. Now the project is proceeding in stages, Council expects to fully fund the Stage 1 works without loans. A revised Long Term Financial Plan will be considered by Council in April 2017.

 

What will be the cost of Stage 2 works?

 

Previously, the project including Stage 2 had been costed at $39.1 million total. However, the Stage 2 works are not decided upon, especially in relation to the southern courtyard and the entire first floor. The decision on Stage 2 will take place following the next Council elections, which could be late 2017 or early 2018. Depending on what is included in Stage 2, the total costing will change.

 

I have heard that the whole project will cost over $50 million, is that true?


No. The initial estimate presented to Council from the quantity surveyor was $39.1 million for the life of the project.  This figure, and all figures quoted on this page, excludes GST (because any GST payable by Council will be fully refunded to Council as a tax credit through normal processes).   

If GST is included, then Council’s cost estimate for both stages increases by 10 per cent, to $43 million. However this figure includes $3.91 million in recoverable GST.

Please note that this is only a rough estimate, as Stage 2 has not been determined yet. 

 

Why are the works occurring in stages?


There are many benefits of the Bondi Pavilion works occurring in stages:

  • The existing main central toilets, change rooms and showers will continue to operate while the new public facilities are being built.  This means temporary public amenities will not need to be brought in during the approximately 12–14 month construction period.
  • Other facilities in Bondi Pavilion outside the Stage 1 boundary will continue to operate during construction, including the music studios and High Tide Room, first floor theatre and hireable rooms on the first floor, art gallery, and Council offices.
  • Food and beverage facilities will continue to be available from existing spaces on the southern end of the Pavilion during construction.
  • Stage 1 works will deliver better facilities and services to the Waverley community and to visitors, and the improved services and facilities will be available sooner.
  • Decisions about Stage 2, which include key decisions about the amount of commercial space, use of the first floor, and the existing and proposed theatre facilities, will take place after the next Council elections, and with full consideration of community feedback.

There will of course be some unavoidable inconvenience to users of the rest of the building during the construction period for Stage 1, however Council will work to minimise this.

 

Why not just undertake maintenance and repairs to the existing building and save money?


For comparison purposes in late 2015, Council obtained a cost estimate for a ‘minimum works’ option – for minimum repair and compliance work of the building, with no layout changes and repairs and compliance work to existing facilities.  This was costed in 2015 at $8.4 million excluding GST.  (The costing would be greater in 2017 due to escalation.)


The proposed Stage 1 works will deliver many more benefits to the community compared to a minimum works option including:

  • New toilet and public facilities, with a major increase in toilets
  • New gallery/exhibition/museum space
  • Landscaped courtyards for community use
  • Expanded pottery studio
  • New community space
  • Pedestrianised entrance from Campbell Parade side
  • Five greenstar rating.


 

Will there be an increase in commercially leased space?


Stage 1 will actually decrease the amount of commercial space at Bondi Pavilion, and increase the amount of community space available. 


Currently, in the area covered by Stage 1, there is 714 m2 of commercially leased indoor space, leased to two tenants The Bucket List and Surfish.  After Stage 1 works are completed there will be 325 m2 of commercially leased indoor space. There will also be outdoor dining.


Council agreed to defer any decision on the rest of the project until after the next Council is elected, expected to be September 2017. This includes decisions about use of the upper level, the proposed new theatre and changes to existing music studios and the High Tide Room. Those future decisions will be informed by the community consultation reports, which have expressed concerns about this, and new reports that will include a Business Case, Fair Use Policy, Theatre Programming and Management, and Cultural and Community Impact Assessment.


Will the Pavilion be privatised?


No. The Pavilion will continue to be managed by Waverley Council and will continue to have Council staff onsite managing the building, the hireable spaces, its services and cultural events and programs. 
Bondi Pavilion has always included a mix of community and commercial uses. Allocated spaces for restaurants and cafes will continue to be commercially leased.  Stage 1 works reduce the amount of commercially leased space in the building overall.  Stage 2 has not yet been decided.

 

Will the toilets be safe?


Yes. The current design of the new amenities block is consistent with other toilet blocks in Waverley.  Some refinements to the design of the amenities have occurred in consultation with NSW Police, including a key entrance from the northern courtyard.


Does this project include an underground car park?


No. The Bondi Pavilion Upgrade and Conservation Project does not include an underground car park.


There is mention of car parking in the ten year Bondi Park, Beach and Pavilion Plan of Management.  An action included in this Plan of Management is that Council will investigate the long term possibility of pedestrianising Queen Elizabeth Drive, and relocating those car parking spaces to a potential underground car park. 


The potential underground car park would be in Park Drive, adjacent to Campbell Parade, with a green roof that would provide additional parkland. If the proposal proved feasible, this would see a 15 per cent increase in recreation and green space at Bondi Park.  But feasibility studies have not been completed yet, and it may not be feasible. The feasibility study is entirely separate to the Bondi Pavilion Upgrade and Conservation Project. 


The Bondi Pavilion Upgrade and Conservation Project Stage 1 DA did not include provision for any underground car park.