Eurobodalla Council has endorsed a refined management approach for Bay Pavilions, guided by an independent service review.
At Tuesday's Council meeting, councillors endorsed the outcomes of the Bay Pavilions Service Review which examined management models, service scope and benchmarking against similar facilities operated by other councils.
The review recommended a mixed Council and contractor model, with Council to operate the theatre, arts and meeting room spaces in-house, while specialist contractors deliver aquatic, fitness and food and beverage services.
Director of Community, Arts and Recreation Kathy Arthur said most regional theatres are run by councils and there were definite benefits to bringing the function in-house.
"The independent review identified that Council's creative arts team already run the Basil Sellers Exhibition Centre and a variety of community arts programs. Council is perfectly placed to activate the theatre spaces at this wonderful facility," Ms Arthur said.
"Working with consultants Morrison Low, we looked at 11 different management options and how six other councils run similar facilities - this gave us insight to what works, what doesn't, and what's most suitable for our community.
"By separating the services, we can match each part of the facility with the right expertise, get clearer visibility on costs, and better manage risk," Ms Arthur said.
As part of the review, Council improved how energy use is tracked across the facility.
"Installing a new software system has given us a clearer picture of where energy is being used. That insight will support solar upgrades, with the potential to deliver up to $240,000 in savings, with similar opportunities being explored at Moruya and Narooma swimming centres."
While savings have been achieved in areas such as energy and cleaning, Ms Arthur said maintenance costs increased during the year.
"Although we've seen savings in operating costs, maintenance spending increased last year because the facility was coming out of an extended defects liability period. This meant outstanding issues were identified and rectified," Ms Arthur said.
A one-year extension of the current management contract with Aligned Leisure was approved to 30 June 2027, giving Council time to progress new arrangements while maintaining services for the community.
Following Council's endorsement, separate tenders will be developed for aquatic and gym services, Moruya and Narooma swimming centres, and food and beverage services, with the aim of transitioning to new service arrangements from 1 July 2027.
During the 2024–25 financial year, the Bay Pavilions recorded more than 283,000 visits across aquatics, fitness and theatre programs.
The centre has been operating at a higher operating loss than estimated and reported to Council during construction; currently $5.97 million annually.
General Manager Mark Ferguson said the costs are concerning but good work has been done to reduce them, and to demonstrate how income can be generated through more dynamic use of the theatre spaces.
"Swimming pools will always cost councils money to run. That is a given. We also subsidise sportsgrounds, libraries and myriad other facilities and services that our community rightly expects us to provide.
"The Bay Pavilions is a wonderful facility. We want to see it thrive and become a loved centre for our community, while ensuring the costs are sustainably managed. That was the aim of the review and I am confident we're on the right track."
The full Bay Pavilions review of management models is available on our website.
