COMMERCIAL IN CONFIDENCE DOCUMENT

NOT FOR DISCUSSION OR DISTRIBUTION BEYOND THE BUNKER CARTOON

GALLERY WORKING GROUP

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Business!Plan! 2011$

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Disclaimer

Any representation, statement, opinion or advice expressed or implied in the

publication is made in good faith but on the basis that R&S Muller Enterprise Pty Ltd,

its agents and employees are not liable (whether by reason of negligence, lack of

care or otherwise) to any person for any damage or loss whatsoever which has or

may occur in relation to that person taking or not taking (as the case may be) action

in respect of any representation, statement or advice and referred within this

business plan.

R&S Muller Enterprise Pty Ltd provides community organisations and businesses

with 15 years of experience in consultation, stakeholder facilitation and results driven

strategy development. The business provides project management, strategic

planning, business planning, marketing and media support, feasibility studies and

corporate business skills training.

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Table of Contents

1. Executive Summary 6

2. Introduction 2.1 The purpose 8

2.2 Methodology 9

2.3 Background and History 10

3. The Current Situation 3.1 The Bunker 17

3.2 The Collection 21

3.3 Copyright and Licensing 21

3.4 Revenue Sources 23

3.5 Organisation & Management Arrangements 24

3.6 Summary of the Current Situation 28

3.7 Strengths and Weaknesses 28

4. Models for Moving Forward 4.1 Option 1, Cease Operation of Bunker Cartoon Gallery 31

4.2 Option 2, PPP 32

4.3 Option 3, Service Level Agreement (Lease) 36

4.4 Option 4, Status Quo 39

4.5 Recommended Model 40

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4.6 How It Would Work 41

5. Vision 5.1 Vision 43

5.2 Mission 43

5.3 Values 43

5.4 Objectives 43

6. Market Research 6.1 The Cultural Audience 44

6.2 Cartoon Audience 46

6.3 International Cartoon Galleries and Museums 48

6.4 Opportunities and Threats 50

7. The Marketing Plan 7.1 Marketing Objectives 52

7.2 Barriers to Marketing 53

7.3 Signage 55

7.4 Products and Services 56

7.5 Customer Touch Points 57

7.6 USP 57

7.7 ESP 57

7.8 Marketing and Growth Strategies 58

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8. Organisational Plan 8.1 Management Team 73

8.2 Operations Manager 74

8.3 Curator/Artist is in Residence 74

8.4 Volunteers 75

8.5 Junior Staff 75

8.6 Proposed Management Structure 75

9. Operational Plan 9.1 Insurance 77

9.2 Asset Register 77

9.3 Stock at hand 78

9.4 Financial Delegations 78

9.5 Purchasing Policy 78

9.6 Segregation of Duties 78

9.7 Volunteer Induction Kit 79

9.8 OH&S 79

9.9 Artist in residence, Curator 79

9.10 Quid Pro Quo 79

10. Implementation Plan 10.1 Stage 1, Council Driven 80

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10.2 Stage 2, New Entity Driven 81

11. Financial Plan 11.1 Capital Budget 85

11.2 Profit and Loss 86

11.3 Cash-flow Statement 87

11.4 Break Even Analysis 91

12. Appendices Appendices 1 - 8 97

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1 - Executive Summary

The context driving the development of the business plan is the service review that is

being undertaken by Coffs Harbour City Council. Taking into account the current

level of costs being borne by council and the current constraints to gain a return on

investment, an evaluation of the feasibility for continuing the Bunker Cartoon Gallery

has been considered.

In May of 1988, Council of the Shire of Coffs Harbour completed the purchase of land

known as “City Hill” which included the Bunker, from the Commonwealth of Australia.

By 1994, the bunker had become derelict, filled with rubbish and an occasional home

to the homeless. John Champion, a member of the Rotary Club of Coffs Harbour City

recognised the potential of the building and its heritage value. The club proposed it

be converted into a gallery to house the Cartoon Collection. The Bunker Cartoon

Gallery was opened to the public in 1996. The Bunker is currently zoned for cultural

use only. In addition to the day-to-day operations of the Bunker Cartoon Gallery,

Coffs Harbour City Council (CHCC) maintains and repairs the Bunker Cartoon

Gallery building. This has come at some cost to CHCC.

The Bunker Cartoon Gallery is a cultural entity of significance for Coffs Harbour,

supporting CHCC’s vision for “the healthy city, the smart city, and the cultural city”.

On the other hand, the current level of resources (both financial and human hours)

required from CHCC, the Rotary Club of Coffs Harbour City, BGCI and the broader

stakeholder groups involved in this project, is both untenable and unsustainable. This

Business Plan outlines the steps that need to be taken so that the Bunker Cartoon

Gallery can continue to provide cultural and community services in the Coffs Harbour

Region, in a financially sustainable manner.

Four options have been developed for consideration to guide the future of the Bunker

Cartoon Gallery and its collection. They include; cease operation, a Public Private

Partnership (PPP), a Service Level Agreement or Status Quo. These options are

detailed for consideration of Council to assess and implement as appropriate. The

preferred option is a Service Level Agreement as it reflects the significant level of

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Council and community commitment, financial and emotional investment to date. It

also provides a capped financial investment for CHCC into the future.

The Bunker Cartoon Gallery Management will go to tender and will be subsequently

contracted to an organisation with skills and business acumen to manage the facility.

The tender includes an annual retainer to provide guaranteed levels of service and

access to the community owned asset.

For Coffs Harbour City Council the benefits of outsourcing management for the

operation of the Bunker Cartoon Gallery are significant and include, improved service

delivery, improved cost-effectiveness, improved budget certainty and the transferring

of risk to the incorporated association can reduce the potential for cost impositions

thus making better use of assets.

The vision of The Bunker Cartoon Gallery is to be the leading cartoon gallery of the

world. The marketing plan outlines a number of implementations to drive growth via

increased visitation and the product and services and a strong online presence.

Focus group results suggest that fun, laughter, frivolity and social comment is the

brand meaning behind cartooning. A considered, efficient and measured approach to

marketing is needed. Creating a new website for the Bunker Cartoon Gallery is

essential.

The Organisational Plan sets out the key items that are critical to the future success

of the Bunker Cartoon Gallery, this includes a management team of three core

people must drive strategic and business direction. Each member of the team will be

given a portfolio focus, the three portfolios are, Business Development, Marketing

and Finance. An Operation Manager will be ultimately responsible for the

performance of the business, ensuring that it is run professionally and profitably by

developing policy, good practices and conducting regular reviews.

A two-staged implementation plan sets out key activities of the stakeholders giving a

timeline of activities to be carried out in the future. The financial plan including cash

flows, profit and loss and capital budget provides direction for the business over the

next three years.

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2 - Introduction

2.1 - The Purpose

The Bunker Cartoon Gallery is located in Coffs Harbour, Northern NSW. The Bunker

Cartoon Gallery is Australia's first, and only dedicated black and white art gallery

exhibiting the largest private collection of contemporary cartoons in the Southern

Hemisphere. The Gallery is housed in an authentic underground World War Two

bunker that has been converted into an exhibition space1.

The Bunker Cartoon Gallery has been in operation since 1996, and is home to the

cartoons collected through the Annual Rotary Cartoon Awards. The annual Rotary

Cartoon Awards are now in their 23rd year, with the number of entries remaining

strong, averaging 700 each year. The collection now exceeds 18,000 images.

The Bunker Cartoon Gallery and the cartoon collection, at this time, is the

responsibility of Coffs Harbour City Council. However there exists a complex

relationship, built over time, between the Bunker Cartoon Gallery Inc, the Rotary Club

of Coffs Harbour City and Coffs Harbour City Council (CHCC). The result is a high

level of confusion relating to respective roles and responsibilities of each of these

parties.

Critically for CHCC, the Bunkers existing infrastructure is ageing and is costly for

CHCC to maintain. The Bunker is currently costing CHCC an average of $130,000

per year to keep the doors open to the public.

There are also potential legal issues with the copyright ownership of the collection

and clarification of this is critical for future business activities.

1http://www.coffsharbour.nsw.gov.au/our-community/facilities-parks-and-places/bunker-gallery/Pages/Bunker-Cartoon-Gallery-Overview.aspx

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The commissioning of a business plan is therefore necessary to establish a clear

direction for the Bunker Cartoon Gallery.

2.2 - Methodology

R&S Muller Enterprise Pty Ltd were engaged by Coffs Harbour City Council (CHCC)

to provide professional consultancy services to research, analyse and report on the

investigation of the financial and human resources required for the effective operation

of the Bunker Cartoon Gallery to ensure value for Council and the community’s

investment in this asset.

In addition, the preparation of a comprehensive business plan was required,

incorporating the major findings from the tasks outlined above. The context driving

the development of the business plan is the service review that is being undertaken

by Coffs Harbour City Council of all infrastructure.

The development of the business plan was carried out in consultation with a project

partnership team, consisting of representatives from CHCC, the board of the Bunker

Cartoon Gallery and the Rotary Club of Coffs Harbour City.

A methodology including stakeholder engagement2 was utilised to enhance findings

from an environmental scan, and provide the very necessary stakeholder

2$See$Appendix$6$–$Stakeholder$engagement$Summary$of$Core$Findings$

Figure!1!Business!Plan!Process!

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perspective, visions and ideas for the ongoing opportunities for the Bunker Cartoon

Gallery.

The Business Plan was submitted to the working party, and all members undertook

consultation with their groups to gain necessary input and feedback. This information

was then tabled at the final working group meeting, and has informed the final

version of the business plan.

2.3 - Background and History

The Collection

In 1989 the Rotary Club of Coffs Harbour City established a national cartoon

competition for black and white cartoons, which was eventually to provide the

foundation for the major collection.

With entries growing each year and received from over 30 countries, the cartoon

awards play a significant role in acknowledging cartooning as an art form. The Rotary

Club of Coffs Harbour City was the 1993 recipient of the Silver Stanley Award for

recognition of contribution to services to the cartoon industry.

Since that time the collection has grown and there have been many exhibitions and

functions, including the Annual National Cartoon “Stanley Awards”, which have

positioned the Bunker Cartoon Gallery as the premier site for collection, conservation

and interpretation of over 18,000 works that are

at the heart of the Bunker Cartoon gallery.

The Bunker

The concrete bunker that is the Bunker Cartoon

Gallery was built during the days of World War

II, after Coffs Harbour was selected as the best

town on the east coast of Australia to build a

military operations base to defend the nation

against invasion.

As part of the Air Force operations, the RAAF

bunker was built in 1943 on what is now known as City Hill. It became home to many

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men and women working to protect their country, including a young Gough Whitlam,

former Prime Minister of Australia.

During the war years the Bunker housed the radio communication headquarters, post

war, the structure continued to be a communication facility before falling into disuse

in 1980.

In May of 1988, Council of the Shire of Coffs Harbour completed the purchase of land

known as “City Hill” which included the Bunker, from the Commonwealth of Australia.

The purchase of the land included restrictions3 pertaining to the use of land. The

purpose of the restrictions was to ensure that the land be used in perpetuity for the

benefit of the community of Coffs Harbour in particular and by members of the public

generally. In addition, it dictated that the land should be used for cultural or civic

purposes or associated tourist purposes.

“Cultural or Civic Purposes”4, includes, but without limiting the generality of the

foregoing, the following uses:

1. Arts and Crafts Gallery, display areas and related workshop.

2. Library.

3. Civic and Community Centre.

4. Senior Citizens Centre.

5. Theatre and/or Cinema.

6. Tourist Information and Promotions Centre.

7. Museums.

8. Music Education Centre.

9. Open Space and Amenity Area together with necessary roads and services.

10. Education facilities.

3 Appendix 1 Restriction As To User

4 Ibid

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“Associate Tourist Purposes”5 includes, without limiting the generality of the foregoing, the following uses:

1. Low impact sporting facilities such as a Bowling Club.

2. Bookshops.

3. Arts and Crafts shops and music shops.

4. Restaurants, cafes and Taverns.

5. Theatre and/or Cinema.

6. Radio Studio and other media facilities.

7. Visitor and tourist accommodation and ancillary facilities.

8. Necessary roads and services.

9. Convention facilities.

By 1994, the bunker had become derelict, filled with rubbish and an occasional home

to the homeless. John Champion, a member of the Rotary Club of Coffs Harbour City

recognised the potential of the building and its heritage value. The club proposed it

be converted into a gallery to house the Cartoon Collection.

This goal was achieved with the support of funding of $123,000 from the Federal

Government, and $60,000 from Coffs Harbour City Council. The Rotary Club of Coffs

Harbour City also raised donations of over $90,000 in cash and in kind contributions.

The Bunker Cartoon Gallery was opened to the public in 1996.

Organisation and Management Arrangements

From 1996 the Bunker Cartoon Gallery Inc (Incorporated in 1995) operated the

Bunker Cartoon Gallery.

CHCC negotiated the original lease for the Gallery with John Champion (now

deceased), and the lease was to commence from April 24 1996. The proposal was

for a lease term of 5 years plus a five-year option with a rental of $2 per annum.

5 Appendix 1 Restriction As To User$

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However, this lease was never executed.

“Community service obligation reasons” during the original lease period and the

renewal period meant that the documents were never executed,6 but the lessee was

permitted to remain in occupation. As such, the lessee organisation, Bunker Cartoon

Gallery Inc occupied the premises without a formal leasing agreement.

During this time council contributed significantly to the continuing operation of the

facility, in addition to subsidy payments made to assist with operational expenses,

painting and lighting upgrade works, a major renovation of drainage and leak

proofing works were undertaken. This work came at a cost of $100,000 to CHCC in

the 2002-2003 financial year.

In June 2005, the Bunker Cartoon Gallery Inc initiated discussions pertaining to the

future direction of the gallery with CHCC. Correspondence7 between the Rotary Club

of Coffs Harbour City and Bunker Cartoon Gallery Inc negotiated conditions of a

handover to CHCC of the cartoon collection and management of the Bunker.

These documents outlined the potential roles and responsibilities of each

stakeholder. It would seem that this information outlining the roles and

responsibilities, formed a Memorandum of Understanding (MOU) that was put

forward by the Rotary Club in 20068, but not executed.

However, the CHCC business paper recommendations9 contains different wording

around roles and responsibilities by the respective stakeholders. This has meant that

from the outset, roles and responsibilities in the Bunker Cartoon Gallery have never

been defined and no MOU has been agreed upon and ratified. This remains the

case.

6 Appendix 2 City Services Committee Report 17th August 2006 Page 55 7 Appendix 3 Correspondence between CHCC, Coffs City Rotary and Bunker Inc. 8 Ibid 9 Appendix 2 City Services Committee Report 17th August 2006 Page 55$

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In September 2006, the Rotary Club of Coffs Harbour City gifted the cartoon archive

to Coffs Harbour City Council (CHCC), with CHCC resolving at its meeting on the

17th of August, 2006 that:

1. That Council assume responsibility for the Bunker Cartoon Gallery from the 1st of September, 2006.

2. That Council accepts on behalf of the community the Bunker Cartoon collection.

3. That the structure for community input for the future development of the facility be the subject of a future report to Council.

4. That in the interim, the Roles and Responsibilities be adopted for an advisory body*.

5. That investigation into the costs associated with the value of the collection be further investigated.10

NOTE: The Advisory Board referred to is in fact the Bunker Cartoon Gallery Inc, and will be hereto

referred to as the latter throughout the remainder of this plan.

In addition Council agreed to the following provisions:

That the contribution of the Rotary Club of Coffs Harbour City to the Cartoon

Collection should be perpetuated by recognition at every opportunity.

! The property in the Cartoon Collection was to be passed on to Council, on

Councils unequivocal undertaking that it will not part with that property and

that the collection and all additions to it will be based in Coffs Harbour, be

available to the Rotary Club of Coffs Harbour City and be available to the

viewing public on reasonable conditions.

! If, for any reason whatsoever, the Council may no longer wish to own the

Collection, the ownership shall revert to the Rotary Club of Coffs Harbour City

Inc. An appropriate document will be drawn up to incorporate the provisions.

10 Appendix 2 City Services Committee Report 17th August 2006 Page 57

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! That Council will implement an Asset Management Program in respect to the

Cartoon Collection.11

11 Appendix 3 Correspondence CHCC to Rotary Club of Coffs Harbour City Dated 1/9/2006$

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3 - The Current Situation

Figure!2!Lot!21!DP!867844!(Bunker!Gallery!Site)

Bunker Cartoon Gallery

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Figure!3!City!Hill!Zoning!Plan!under!the!present!Coffs!Harbour!LEP!2000L!Yellow!ColourL!Special!Uses!5a!Local!Government!

3.1 - The Bunker

The Bunker Cartoon Gallery is owned and operated by the Coffs Harbour City

Council. The Bunker is open Monday to Saturday from 10 am to 4 pm. Admission is

charged at $2 entry for adults and $1 for children. A council officer staffs the gallery

for 24 hours per week; and a team of approximately 17 volunteer’s complements this

arrangement.

As of July 30, year to date visitation numbers for the Bunker Gallery are 8677.

Anecdotal information supplied states that it is mainly an older demographic

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attending the Gallery with approximately 75% visitors and 25% local. There is no

hard data available to support this estimate, however, it is consistent with data

available for the general visitation of Art Gallery’s in the Coffs Harbour LGA.

Whilst the Bunker’s foundation is built on the art of the Cartoon, changes in recent

years have meant that the Bunker has, in the absence of a community gallery, also

become a space for the exhibition of local artists, and a museum space for housing

the entire cartoon collection.

The Bunker Cartoon Gallery has for sale copies of cartoons, a small range of items

such as books, post cards, and magnets. The Bunker can also be hired out for

functions at $55 per hour.

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Within the Cartoon Gallery there is a

total of 75 metres of linear wall space

available for the display of art. It

appears there is some level of

agreement in place, that the Cartoon

collection will have a minimum of 15

linear metres dedicated to the

permanent display of cartoons.

One of the Bunker’s greatest assets is the annual exhibition of the Bald Archy.

Although originally created as something of a joke, the Bald Archy Prize has become

an icon on the Australian art calendar, calling for irreverent comic and satirical

images of well-known Australians.

The Bunker would be best described as a ‘destination’ business/attraction. This

reflects its physical location - away from the CBD and a distance that is beyond a

comfortable walk (really does require driving). The current directional signage is old,

dark, not prominently displayed and is actually situated after the turn off to John

Champion Way, on a busy roundabout.

The Bunker is currently zoned for cultural use only and environmental constraints will

affect any plans for expansion. In addition to the day-to-day operations of the Bunker

Cartoon Gallery, CHCC maintains and repairs the Bunker Cartoon Gallery building.

This has come at some cost to CHCC. In 2002, waterproofing and new lighting in the

Bunker cost CHCC approximately $100,000.

There are ongoing issues with water leaks. Information supplied suggests that the

Bunker was not built to be structurally waterproof, logical given the war time

construction and its intended use. This could proved to be an ongoing challenge for

the future of the cartoon collection, its archival storage and preservation.

In September of 2011, CHCC commissioned MCS Group (Specialist Technical

Consultants) to undertake an independent condition report of the Bunker Cartoon

Gallery. The report was sent to all members of the working group for review. It

detailed the condition of both external and internal aspects of the building and its

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surrounds and included plumbing, electrical, air conditioning, painting, and access.

The report did not include indicative costings for repairs or maintenance. As such,

these costs have NOT been added to the financial plan within this business plan. It

is recommended that Council consider the level of repair that may be required in the

short, medium and long term, and factor this into any future planning and cost

allocation for implementation of this business plan.

The Bunker is currently costing an average of $130,000 per year (figures averaged

over 2009 -2011) in direct and indirect costs.

Despite the ongoing financial liability, CHCC has demonstrated commitment to

ensuring the best possible outcome for the future of the Bunker Cartoon Gallery. It is

expected that with the age of the infrastructure, resultant maintenance cost will

increase. It is unrealistic to presume that the current financial support provided by

CHCC on behalf of the rate payers, can continue uncapped indefinitely.

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3.2 - The Collection

The annual Rotary Cartoon Awards are now in their 23rd year, with the number of

entries remaining strong, averaging about 700 each year, and this continues to drive

growth of the collection. The competition is recognised both in Australia and

Internationally, with noted cartoon artists submitting approximately 60% of the

entries. The Rotary Club of Coffs Harbour City facilitates the competition, with

support of the Bunker Cartoon Gallery Inc. Both Rotary and CHCC provides financial

support of $1500 each to support the awards. Sponsorship of the awards is also

sought from local business.

The Rotary Cartoon Awards competition is designed to recognise and reward the

best of Australian and international cartoons with prizes totalling over $10,000. It is

beyond the scope of this business plan to complete a cost/benefit analysis of the

running of the Awards, anecdotally; it appears that the Awards cover the direct cost

of the process. Again, anecdotally, it appears the hundreds of volunteer hours are

required to oversee the award process, and Council staff are also contributing time to

the event. It has been suggested, that any funds that the Rotary Cartoon Awards

raise, are to be distributed to various Rotary charities and some funds are also then

used to promote cartooning through the Bunker Cartoon Gallery.

Currently 14,000 cartoons in the collection have been copied to high-resolution digital

images within an electronic database. This now allows for easy access to the

collection based on categorical search terms. This work has taken seven years to

date and is the result of a core team of three volunteers. The work is continuing and

will prove to be of great value if the Bunker Cartoon Gallery chooses to pursue

opportunities for the digital distribution of its cartoon collection.

3.3 - Copyright and Licensing

It is implied in the conditions of entry to the competition that there is an assignment of

copyright from the original artists to the Rotary Club of Coffs Harbour City. Copyright

is a bundle of economic rights that give their owner the exclusive right to do certain

things in relation to the object it protects.

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Copyright protection is automatic upon creation of an artwork. There is no need to

register a work in an official register. The symbol © is used for notification purposes,

to put people on notice that the work is protected by copyright, but is not required for

the protection to exist.12

Under Australian law, the owner of the copyright in an artistic work has the exclusive

right to reproduce, publish and communicate the work to the public; for example by

printing it in a book or showing it on a website. If someone wants to copy art works,

which are protected by copyright, there is a legal requirement to receive permission

from the copyright owner (who is usually, but not always, the artist). Any work that

was published after the death of the author will be out of copyright seventy years

after the year of first publication. Unpublished works hold copyright indefinitely.

There are two ways to gain copyright permission - assigning or licensing. Assigning

is the transfer of copyright to a third party which then owns it (in writing). Licensing

allows someone to exercise some use of the rights of the copyright owner. Without a

licence, the use of copyright material by a third party is illegal.

The assignment of copyright is to the Rotary Club, not CHCC, or the Bunker Cartoon

Gallery Inc or any new entity. Resolution of this issue will be critical for securing

future business opportunities that may become available for the collection.

When an artist decides to license their copyright material, the following must be

determined:

• Permitted uses

• The territory (location)

• The term or length of the license

• Sub-license rights

• The nature of the license (exclusive, sole, non-exclusive)

12 www.artslaw.com.au/info-sheets/copyright/

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• Payments associated with the license

• This needs to be signed to be executed

In the current context of operation of the Bunker, CHCC would be considered a third

party. In addition formal licensing arrangements as outlined above have not been

completed between the artist and the Rotary Club of Coffs Harbour City. This matter

requires urgent attention and resolution. The outcome would then inform CHCC of

the way forward for the options presented within this plan.

3.4 - Revenue Sources

Currently, revenue from the gallery is generated through:

• the sale of cartoons

• entry fee’s (general and event based)

• the sale of a small range of merchandise (includes books, magnets and

cards)

• artist sale commissions (non cartoon collection artists only)

• venue hire

In previous years the cartoon collection has been toured with the assistance of other

rotary clubs and the provision of free transport to shopping centre’s and other

galleries. In 2010 the collection was displayed at the Manning Regional Art Gallery.

This provided income of $2000.00, which was divided between the CHCC and the

Rotary Club of Coffs Harbour City as a 50:50 split.

The Rotary Club of Coffs Harbour City have pledged to the community that at least

50% of any income derived from activities connected with the cartoons will be used

for the promotion and preservation of the cartoon collection. This situation has

directed the distribution of any income derived from the sales of the cartoons through

the Bunker. It has been difficult to determine the operational process around how this

occurs.

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A review has occurred on the role CHCC plays in the transaction process. An extract

of email correspondence between the consultants and the Bunker Cartoon Gallery

Co-ordinator also provides an operational perspective on the transaction process

currently being undertaken for all income.

Emailed received 14th September, 2011.

! “All$income$is$deposited$at$Council$reception.$! Admissions$=$$2$and$$1$daily$entry.$$$! During$Bald$Archy$we$charge$$5$adults$and$$3$child.$ $That’s$why$ the$admission$ income$

peaks$dramatically$in$May.$! Merchandise$=$$prepaid$stock$items$including,$book$"I$likes$a$Laugh"$+$venue$hire$$55$per$

hour$! Donations$GST$free$=$coins$in$the$slot$box$from$general$public$! Artist$ Sales$ Holding$ account$ =$ $$We$ specify$ who$we$ are$ holding$ income$ for.$ $If$ it$ is$ an$

artist,$the$artist$invoices$Council$for$the$sales$price$and$33%$is$deducted$from$the$amount$and$ the$ remainder$ paid$ out$ to$ the$ specified$ artist.$ $Rotary$ are$ one$ of$ the$ specified$recipients,$however$no$commission$is$witheld$from$the$Rotary$holdings.$I$keep$track$of$all$deposits$ to$ the$Roatry$holdings.$Rob$De$Groot$ is$ advised$when$ this$ figure$ reaches$over$$500.$$Rotary$invoice$Council$the$amount$and$Council$pays$them$in$full.$

! My$deposit$ form$ has$ allocated$ space$within$ the$ Artist$ sales$ holding$ account$ for$ artists$names$ and$ for$ Rotary.$ $The$ teller$ at$ reception$ records$ these$ specifications$ and$ Alison$Tarplee,$who$manages$ the$Artist$ sales$holding$account$ keeps$ track$of$all$ inTgoings$and$outTgoings$ to$ ensure$ Rotary$ get$ paid$ their$ due$ and$ so$ do$ each$ of$ the$ artists$ who$ sell$works$through$the$gallery.$

! Most$of$the$Rotary$deposits$are$sales$of$cartoon$copies.$$But$occasionally$they$will$have$us$selling$tickets$eg$Rotary$Awards$presentation$night$tickets.”$$

Both the process and rationale behind receiving and dispersing any revenue earned

through the Bunker Cartoon Gallery further serves to demonstrate the current

complexities around the relationships between CHCC, Rotary Club of Coffs Harbour

City and also to some extent, the Bunker Cartoon Gallery Inc. This aspect has made

it impossible to ascertain (or verify) the current income.

3.5 - Organisation and Management Arrangements

The most intricate aspect of the current situation is the level of complexity occurring

through stakeholder expectations, and the relationships of the organisations involved.

! 25

However the binding commonality is the commitment to the Bunker Cartoon Gallery

and opportunities for its future direction.

The three major partners are:

! Coffs Harbour City Council (CHCC)

! Rotary Club of Coffs Harbour City

! Bunker Cartoon Gallery Inc (BCGI)

The operational and management arrangement that currently exists are outlined

below.

Coffs Harbour City Council

The Bunker Cartoon Gallery at this time remains under the responsibility of Coffs

Harbour City Council. CHCC is responsible for the day-to-day operations of the

Bunker and a council officer is employed as the Bunker Cartoon Gallery Coordinator.

The Coordinator works under the supervision of the Director, Regional Gallery and

Museum. The Coordinators role is to implement and monitor a range of quality, cost

effective and customer focused services to meet the Bunker Cartoon Gallery and the

visual arts needs of the Coffs Harbour Community.

This also includes:

! Supporting volunteer staff

! Assistance with marketing the Bunker Gallery

! Provision of input into the future planning and development of the Bunker

Gallery

This is supported by CHCC’s strategic approach to cultural development in the city.

This strategic direction is:

! 26

To create opportunities and outlets, satisfying the broad communities cultural needs

and leading to the creation of a united community. To provide outlets encouraging

community expression, which will lead to a unique cultural identity for Coffs harbour.

Examine partnerships for joint utilisation of facilities and development of existing and

new facilities for the city.”13

The Bunker Cartoon Gallery Inc

The Bunker Cartoon Gallery Inc (BCGI) is comprised of members who are

passionate about the world of cartoons and in particular, the Bunker Cartoon Gallery.

Their vision for the Bunker Cartoon Gallery is:

“To achieve National and International recognition that the Bunker Cartoon Gallery

and Museum holds Australia’s premier ‘Cartoon Collection’ and reinforces Coffs

13 Coffs Harbour City Council Cultural Plan 2001-2003

! 27

Harbour as the ‘Cartoon Capital of Australia’ in the promotion and conservation of the

art of cartoons.”

In its advisory role to CHCC, BCGI would like to see the vision come to fruition.

Members from BCGI have also undertaken a European tour, which included visiting

other cartoon galleries, drawing both inspiration and aspiration for the Bunker

Cartoon Gallery.

Earlier in the Bunker’s history there was a strong connection between Australian

Cartoonists Association (ACA) and the Bunker, however this has diminished over the

years. BCGI would like to restore this relationship to raise the profile of both the

Bunker Cartoon Gallery and the collection. Fortunately, there remains a strong

connection to the ACA through renown locally based cartoon artist, Jules Faber. He

is an ACA member, a former BCGI member, and a continuing Bunker Cartoon

Gallery supporter.

BCGI would like to increase promotion of the Bunker and position it prominently

within the product offering of Coffs Harbour tourism attractions. Ultimately BCGI

believe there is capacity to realise a greater potential of the collection through the

enduring popularity of cartoons.

The Rotary Club of Coffs Harbour City

In 1989 the Rotary Club of Coffs Harbour City established the Annual Rotary Cartoon

Awards, now in its 23rd year, the awards continue to be strongly supported. The

Rotary Club of Coffs Harbour City continues to be instrumental hosting the event

each year, by seeking sponsorship for the awards and providing a financial

contribution to the event.

The Rotary Cartoon Awards are sponsored by the Rotary Club of Coffs Harbour City

to raise funds for various Rotary charities and to promote cartooning through the

Bunker Cartoon Gallery. With entries growing each year and received from over 30

countries, the cartoon awards play a significant role in acknowledging cartooning as

an art form. The Rotary Club of Coffs Harbour City was the 1993 recipient of the

Silver Stanley Award for recognition of contribution to services to the cartoon

! 28

industry.

Historically and still continuing today, there has been representation from the Rotary

Club of Coffs Harbour City on the board of the Bunker Gallery Inc.

3.6 - Summary of Current Situation

It is evident that the numerous stakeholder relationships concerned with the Bunker

Cartoon Gallery, all with differing roles, and differing visions for the future of the

Bunker, complicate any potential strategy for growth.

The copyright situation is by far the most complex. In the current situation, CHCC is

placed in a precarious position. At no point have the Rotary Club of Coffs Harbour

City assigned or licensed the collection to CHCC. Further, this process is prohibited

under copyright law without the original artist’s consent. Copyright rules prevent this

transfer of ownership. Without a licence, the use of copyright material by a third party

is illegal. Ownership of the copyright (or licence) of the cartoon collection therefore

remains with the Rotary Club of Coffs Harbour City, whilst the ownership of the actual

collection resides with CHCC following the gifting of the collection to CHCC in 2006.

In short, CHCC is responsible for an asset that they have no opportunity for collecting

revenue; ultimately creating an ongoing liability being funded by the rate paying

community.

3.7 - Strengths and Weaknesses

Strengths Weaknesses

! Large$level$of$investment$by$all$

partners$

! Council’s$cultural$strategic$direction$

! Large$volunteer$base$

! The$size$of$Cartoon$Collection$

! High$community$commitment$

! Complexity$of$stakeholder$

relationships$

! Council’s$financial$loss$in$operating$

the$Bunker$

! Copyright$constraints$

! Ageing$and$deteriorating$

! 29

infrastructure$

! No$formal$agreements$

! No$agreed$roles$and$responsibilities$

! Differing$visions$and$aspirations$of$

the$partners$

! No$valuation$of$the$collection$

! Visitation$is$low$

! Council$bears$all$costs$and$no$

opportunity$to$generate$income$

from$the$collection$

! Infrastructure$never$designed$to$be$

waterproof$

! 30

4 - Models for Moving Forward

The context driving the development of the business plan is the service review that is

being undertaken by Coffs Harbour City Council. Taking into account the current

level of costs being borne by council and the current constraints to gain a return on

investment, an evaluation of the feasibly for continuing the Bunker Cartoon Gallery

needs to be considered.

On the one hand, the Bunker Cartoon Gallery is a cultural entity of significance for

Coffs Harbour, supporting CHCC’s vision for “the healthy city, the smart city, and the

cultural city”14.

On the other hand, the current level of resources (both financial and human hours)

required from CHCC, the Rotary Club of Coffs Harbour City, BGCI and the broader

stakeholder groups involved in this project, is both untenable and unsustainable.

Without doubt, however, there has been a significant level of Council and community

commitment, financial and emotional investment. Coupled with the fact that there has

never been an entrepreneurial mindset underpinning the operation of the Bunker

Cartoon Gallery, a range of options for consideration are provided to guide the future

of the Bunker Cartoon Gallery and its collection.

Four options have been developed. They are:

These options are detailed for consideration of Council to assess and implement as

appropriate.

14 Coffs Harbour City Council, Cultural Plan

! 31

4.1 - Option One – Cease Operation of the Bunker Cartoon Gallery

As outlined in the previous chapters, there would be a reasonable case for

discontinuing the Bunker Cartoon Gallery in its current incarnation. The cartoon

collection would be returned to the Rotary Club of Coffs Harbour City and the Bunker

building itself would then be offered for lease to the highest bidder to a tenant who

can deliver “cultural or tourism use”. This tender process must be conducted in

compliance with the Local Government Act. Both the Rotary Club of Coffs Harbour

City and the BCGI could tender for the space, however it would be a competitive

bidding process, and it could be assumed that commercial operators might also be

interested in the space.

What does this mean ?

! 32

4.2 - Option Two – Public Private Partnership (PPP)

The term public–private partnership describes a legal arrangement between Council

and a private entity. This model would only be considered if a significant financial

investment is required to repair, renovate, upgrade, and then operate the Bunker

Cartoon Gallery. The legislative basis for PPPs in NSW local government is the

Local Government Act 1993 amended by the Local Government Amendment Act

2005, the Local Government Amendment (Public Private Partnership) Act and the

Local Government Amendment (Discipline) Bill 2004. The NSW Department of Local

Government (DLG) has established Guidelines on PPPs as well as a PPP Review

Committee.

400B, Definitions

(1) In this Act, a reference to a public-private partnership is a reference to an entity

formed under an arrangement between a council and a private person for the

purposes of:

(a) providing public infrastructure or facilities (being infrastructure or facilities in

respect of which the council retains a beneficial interest under the

arrangement), or

(b) delivering services in accordance with the arrangement

! 33

or both, but does not include a reference to any such entity if it is of a class that

has been excluded from the operation of this part by the regulations.15

A PPP would require the establishment of a new entity, separate to CHCC, however

CHCC would remain involved in the Bunker Cartoon Gallery in a defined role within

the newly established entity. The private partner would typically be responsible for

the more commercial and strategic functions.

PPP’s take a variety of forms, with varying degrees of public and private partner

involvement – and varying levels of public and private partner risk. In fact, risk

transfer from the public to the private partner is a critical element of all PPP’s. The

goal is to combine the best capabilities of the public and private partners for mutual

benefit.

A private partner will assume the risks, because where risk exists, so does

opportunity. The private partner gains a relatively stable, long-term investment

opportunity. The incentive is then created for the private partner to ensure the long-

term sustainable profitability of the business and to do this; the private partners will

use their own strengths and abilities to bring innovation and efficiencies for the

successful operation of the business.

Should CHCC wish to pursue this option, the Local Government Act, 2004 is very

specific in both the process and requirements associated with PPP. For example:

400C Guidelines to be followed by councils in relation to public-private partnerships

(1) The Director-General may from time to time issue guidelines requiring specified

procedures and processes to be followed by councils in relation to entering into and

carrying out projects under public-private partnerships.

(2) Without limitation, the PPP guidelines may contain provisions requiring:

(a) feasibility and risk assessment

15 Local Government Act 2004, Chapter 12, Part Six, Public-Private-Partnerships

! 34

(b) the identification of appropriate governance and administrative

arrangements (including appropriate management structures and auditing

requirements)

(c) the undertaking of on-going risk management measures

(d) due diligence in the carrying out of projects under public-private

partnerships.16

400F Council to provide assessment of PPP project to Director-General

(1) A council must not enter into a Public Private Partnership unless the council has

provided the Director-General with an assessment of the project to be carried out

under the partnership.

(2) In providing such an assessment, the general manager of the council is required

to certify that it has been prepared in accordance with the PPP guidelines.

(3) If:

(a) the project to be carried out under the public-private partnership is a

significant project, or

(b) the Director-General is of the opinion, having regard to the criteria

specified in the PPP guidelines, that the project has a high risk,

(c) the Director-General is to advise the council that the project is required to

be referred to the Project Review Committee for review.

(4) If the Director-General advises the council that the project is not required to be

referred to the Project Review Committee, the council is entitled to:

(a) subject to obtaining the Minister’s consent under section 358 (1) (a), to

enter into the public-private partnership, and

16 Local Government Act 2004, Chapter 12, Part Six, Public-Private-Partnerships

! 35

(b) subject to this Division, to carry out the project that is the subject of the

assessment.17

It is a complex process, and one that must comply with the Local Government Act

1993 amended by the Local Government Amendment Act 2005, the Local

Government Amendment (Public Private Partnership) Act and the Local Government

Amendment (Discipline) Bill 2004. It can be slow to implement and require approval

from parties outside of Council. Councils are quite reluctant to undertake PPP’s,

other than for large and expensive infrastructure projects. See appendix 4 for case

studies of successful PPP’s in Australia. Unless the financial investment warrants, a

PPP is not the best option for the Bunker Cartoon Gallery, and the process might be

undertaken without a suitable private entity coming forward to invest and partner with

Council.

What does this mean?

17 Local Government Act 2004, Chapter 12, Part Six, Public-Private-Partnerships$

! 36

4.3 - Option Three – Service Level Agreement (Lease)

Many Councils across NSW now operate their community facilities using external

contractors. The appointment follows a competitive tendering process.

The management of the Bunker Cartoon Gallery Management is tendered and

subsequently contracted to an organisation with the skills and business acumen to

manage the facility.

Council would set the fees and charges and the minimum hours of operation of the

Bunker Cartoon Gallery ensuring community satisfaction to access the facility.

The winning contractor is offered a lease to run the facility. However, it is not a

source of income for council. In fact, the tender includes an annual retainer for

contractors to provide guaranteed levels of service and access to the community

owned asset.

The model has been adopted by numerous councils, including CHCC and has the

benefits in that it allows Council to set performance measures.

Promotion of the Bunker Cartoon Gallery is the responsibility of the contractor.

Financial incentives and performance measures guarantee the contractor will actively

promote the use of the facility. The tenure would, in most cases be five years, with

an option for a further five years.

Currently, a number of CHCC owned assets are maintained and operated through

this arrangement. The excerpt below (see appendix 5 for full details) outlines both

precedents and statutory requirements pertaining to Centennial Oval in

Woolgoolga18.

18 CHCC Ordinary Meeting, Business Paper City Business Units Committee, page 12

! 37

Current precedents within CHCC for this type of operational model.

CHCC Asset CHCC Contribution Managing Organisation Additional Information

Centennial Oval

Woolgoolga

$40,000/year Woogoolga Sports

Council Inc

Contribution from

CHCC for

maintenance

Coramba

Sportsground

$25,000/year Orara Valley Progress

Association

Contribution from

CHCC for

maintenance and

mowing.

Sawtell/Toormina

Sport and Rec

Centre

$17,000/year Sawtell/ Toormina

Sports Association

Contribution from

CHCC for

maintenance

! 38

The arrangement would require finding a suitable organisation to come forth and

tender to manage the Bunker to run the Cartoon Gallery. Whilst it would be most

beneficial to do this directly with the Rotary Club of Coffs Harbour City (given the

copyright use around the collection), the Local Government Act does require the

process to go to advertisement, the notification to adjoining neighbours, and a public

submission period.

If this model were selected, the Rotary Club of Coffs Harbour City and/or BCGI

should begin preparations to identify suitable members to become the management

committee to oversee management of the Bunker Cartoon Gallery. Interested

organisation would need to be prepared to lodge a complying tender to manage the

Bunker Cartoon Gallery and the Cartoon Collection.

However, the current copyright situation would need to be clarified to ensure a third

party could generate income from the current cartoon collection.

The successful implementation of Option 3 will require an incorporated body/

association to be eligible for management responsibility. A strong management

committee is the key to ongoing success in this arrangement.

What does this mean?

! 39

NOTE: Following a meeting with the Working group, a variation to this option was

put forward for considered by CHCC. The option would see CHCC appoint Trustees

to operate the facility. There are precedents within NSW where Councils have

undertaken this course of action. See Appendix 8 for copy of Charitable Trust Deed

between The Council of Pittwater (“Settlor”) and the Pittwater Environmental

Foundation (“Trustee”). This variation of option 3 should be further considered by

CHCC only if:

1. it is in compliance with the Local Government Act;

2. the copyright of the collection can be established for CHCC; and

3. there is are clear advantages for CHCC in doing so

4.4 - Option 4 – Status Quo

The current level of liability for the Bunker, combined with the complexity of

stakeholder relationships has created an untenable situation. For this reason,

maintaining the status quo is not recommended for the Bunker Cartoon Gallery in

planning for its future.

What does this mean?

! 40

4.5 - Recommended Model

Option 3 is seen as the best option for meeting all stakeholders’ needs. This will

ensure that the dedicated hard work and passion that has gone into the Bunker

Cartoon Gallery, of so many individuals and organisations over the last 23 years has

not been in vain. This will also support new opportunities for the Bunker Cartoon

Gallery so that a shared vision has a chance of reaching fruition.

For CHCC benefits of outsourcing management for the operation of the Bunker

Cartoon Gallery are significant as can be seen below.

• Improved service delivery by allowing stakeholders to do what they do best.

CHCC’s core business is to set policy and serve the public. It is better

positioned to do that when the incorporated association takes responsibility

for non-core functions such as operating and maintaining the Gallery and its

collection.

• Improved cost-effectiveness taking advantage of innovation, experience

and flexibility, can often deliver services more cost-effectively than traditional

approaches. The resulting savings can then be used to fund other needed

services.

• Reduced CHCC risk by transferring those risks that can be better managed

by the incorporated association, such as marketing, the Bunker Cartoon

Gallery operations and its financial profitability.

• Improved budget certainty by transferring risk to the incorporated

association can reduce the potential for cost impositions from unforeseen

circumstances during business operations. The service will be provided at a

predictable cost, as set out in the contract agreement.

• Better use of assets as the incorporated association will be motivated to use

the Bunker facilities fully, and to make the most of fundraising opportunities.

This can result in higher levels of service, greater accessibility to the

community, and additional opportunities for the Bunker Cartoon Gallery.

! 41

4.6 - How it Would Work

It is highly recommended that CHCC prepare the business paper for consideration by

Council. This business plan should form the basis for the recommendations made. A

service level agreement should be developed in conjunction with representatives of

both the BCGI and the Rotary Club of Coffs Harbour City. This would include a range

of strategic and operational parameters that would form the basis of the contract for

services. However, if involvement in this process would preclude any party from

participating in the tender process, this is not recommended. In this instance, the

use of volunteers who have long served the Bunker Cartoon Gallery would bring

immense knowledge to the development of the tender/contract terms.

A leasing arrangement would be undertaken that clearly defines both CHCC’s and

the incorporated association obligations related to the Bunker Cartoon Gallery.

To pursue this leasing arrangement, the incorporated association would be offered a

financial contribution from CHCC to assist with the maintenance and operational

costs of the Bunker. A review of current CHCC contribution arrangements for sports

fields, suggests that this could be in the vicinity of $50,000 per year, for a five-year

period.

After the five-year period, a review should be undertaken to ensure that the needs of

council, and the community are being met through the arrangement.

It is essential that clear roles and responsibilities are assigned, with the

understanding that CHCC will not be liable for any additional funding requests, staff

allocation or resourcing contributions.

The contractor would be completely responsible for the financial performance of the

Bunker Cartoon Gallery, maintaining operational, marketing and staffing activities.

It is crucial that this option clearly enforces the new paradigm for the future of the

Bunker Cartoon Gallery operations. Therefore it is suggested that a number of Key

Performance Indicators are incorporated into any leasing agreement between CHCC

and the incorporated association. This will provide CHCC with a degree of protection;

! 42

and with an exit strategy should the Bunker Cartoon Gallery prove to be an

unsustainable venture.

Furthermore the end of tenure review should reference and refine the Key

Performance Indicators to ensure that the needs of CHCC continue to be met

through the agreement.

Suggested Key Performance Indicators:

• The contractor maintains financial solvency

• The Bunker Cartoon Gallery continues to be a community and cultural asset

• Cartoon Collection is preserved and displayed professionally

• Hours of operation are appropriate

• Level of service is professional

• Demonstrated commitment to maximising the use of the gallery

• Demonstrated commitment to partnerships

• Demonstrated commitment to innovation and achieving the vision of the Bunker Cartoon Gallery

If at any time the contractor of the Bunker Cartoon Gallery cease operations or

otherwise become financially insolvent, then it is recommended that Option One be

implemented, with the Bunker infrastructure leased out for cultural or tourism

purposes.

! 43

5 - Vision

5.1 - Vision

The Bunker Cartoon Gallery becomes the leading cartoon gallery of the world.

5.2 - Mission

The Bunker Cartoon Gallery will operate as a sustainable and viable

enterprise, positioning Coffs Harbour as the Cartoon Capital of Australia,

preserving history, social comment and its characters in a way that inspires,

enriches and informs the local and global community.

5.3 - Values

The Bunker Cartoon Gallery will provide a unique cultural experience to the

community based on the values of accountability to customers, partners,

employees and volunteers; and commitment to achieving sustainable results.

5.4 - Objectives

• Create an economically sustainable enterprise

• Improve public profile

• Increase market share

• Compete in the digital world

• Maintain and enhance the Cartoon collection

• Strengthen partnerships in the Cartoon arena nationally and internationally

! 44

6 - Market Research

6.1 - The Cultural Audience

A gallery can be defined as a place where works of art are displayed, where one

goes to view art and/or may be from the perspective of purchasing the art.

A museum on the other hand can display, keep or store art, scientific specimens or

other objects of permanent value.

A museum helps people understand the world by using objects and ideas to interpret

the past and present and explore the future. A museum preserves and researches

collections, and makes objects and information accessible in actual and virtual

environments. Museums are established in the public interest as permanent, not-for-

profit organisations that contribute long-term value to communities.

(http://www.museumsaustralia.org.au/site/what_is_a_museum.php)

To this end, the Bunker Cartoon Gallery satisfies both museum and gallery

definitions.

Geographical NSW Gallery attendees are predominantly ‘local’ people. On average, 43% live within

5km and 33% beyond 5km but do not consider themselves ‘tourists’. Specifically

within the North Coast region, 76% of visitation rates are within the Local

Government Area (LGA). Tourists account for 11% (NSW) and 6% (interstate) of

visitation while international visitors account for 7%.

Females represent a large proportion of visitation rates with 69%.

Psychographic

The largest education group visiting galleries in NSW is postgraduates followed by

graduates. This shows that the market is highly educated and that marketing

collateral needs to be respectful to this level of education.

! 45

Age

The most frequent age group to visit NSW Galleries are the 55-64 year old bracket,

representing 25% of visitation. The next most common age group is 65+ at 22%. The

Australian Bureau of Statistics (ABS) shows that the 65+ (16.7%) is the second

largest population group in the Coffs Harbour LGA but the largest is 0-14 ( 19.8%)

years old confirming that a large target group is primary and high school children with

workshops, school tours and after school programs.

Income

The statistics showing NSW income is on par with the statistics for the North Coast.

The largest income group is $21k - $41k at 26% for NSW proving that the Gallery

experience is accessible to a large group of society.

Strategic Audience Evaluation Study 2008- 2010 Museums and Galleries NSW

The Strategic Audience Evaluation Study, 2008- 2010, for Museums and Galleries

NSW was reviewed and provided information about what customers are expecting

from a gallery and museum experience. Key requirements are listed below.

! 46

6.2 - Cartoon Audience

Cartoon Market Segments

Facebook provides a plethora of cartoon related fan sites where people can talk

about all things cartoon and interact with like-minded people. Some of these sites are

very popular including;

• The National Cartoonists Society – 1,125 fans

• Cartoon Yourself – 26,171 fans

• Cartoonism – 864 fans

Facebook is a low maintenance, free marketing tool that reaches an enormous

potential of consumers. Similar Facebook pages can be targeted for marketing

material therefore tapping into a segment that already has the common base interest

of cartoons and cartooning.

Extensive research has been conducted to gain a clear and concise picture of the

Cartoon Consumer.

There appears to be a number of commonalities regarding consumers of the cartoon

genre, its products and services. They are:

1. Consumers of cartoons tend to show support based on a character, not necessarily the genre of cartooning.

2. The best method for segmentation is based on age – yet all age groups can show interest in cartoons, the cartoon type will depend upon the age group.

3. Common expectation is that Cartoons will represent, reflect or comment on community values.

4. People who engage with cartoons expect a level of fun and light-heartedness.

! 47

Psychographic descriptors for the market segment tends to skew towards

“Experiencers”.

VAL Psychographic profile of experiencers – quotes for respondent of the survey.

“I often look for the fun in doing and experiencing things, I want to do it all. Life has

so much dimension to it and we should do justice to it by romancing as many phases

of it as we can live”

“My life is up-going and up-beat, I am always trying and experiencing new things just

for the fun of it. I always get excited about a new experience or a new path I want to

go through but I will find new passions in life quickly. “

“I believe that being an experiencer affects my life and all my choices. I really love to

keep trying new things.”

! 48

In January 2010, 174 visitors to the Australian Museum were surveyed about the

kinds of online activities undertaken in the previous 6 months. The results from the

study were compared to a study in 2007 asking Australians ‘what they were doing

online’ using the same categories as the 2010 study. It was found that

museum/gallery visitors participated at higher levels across all activities including

YouTube, social media sites such as Facebook and Myspace as well as interacting

with Wikipedia. Taken together, the findings suggest that museum/gallery visitors

engage in activities that are participatory and two-way, such as posing and reading

customer reviews. This shows an opportunity to get maximum output from social

media sites and have very interactive online relationships with those participants.

The need for online resources within the arts industry is in high demand. The

Australian Council for the Arts recently commissioned a Neilsen online study of arts

attendees. From the study, 90% of 2500 participants were searching for arts content

online, especially the young and tech-savvy. Despite these statistics, many

companies have been slow to meet these consumer demands. This creates a great

opportunity for the Cartoon Bunker Gallery to fulfil this gap in the market.

6.3 - International Cartoon Galleries and Museums

Name Location Admission Fee Programs

Belgian Comic Centre Belgium Adults- 8 Euro

Children-3 Senior- 6

Tours, venue hire, bookshop, exhibitions, reading room

Museum of Comic and Cartoon Art

New York General Admission $6

Children 10 and under Free

Festival, Programs, Changing Exhibits, Talks

The Cartoon Museum London

Adults- Pound 5.50Concession- 4 Students- 3

Catalogue, feature shows, family fun days, workshops

! 49

These three museums are examples of organisations with a primary interest in

cartoons. Their pricing strategy is higher than the Bunker, which indicates that a

higher price could successfully be charged at the Bunker Cartoon Gallery.

These three organisations offer a wide range of products, in addition to the

museum/gallery. Workshops and events are popular throughout the overseas

market. These are designed to appeal to a broad demographic, ranging from family

fun days, cartoon drawing for school-aged children and learning based workshops

such as the history of ‘Dr Who’.

The Australian Market

The Bunker Cartoon Gallery is the principal gallery for cartoons in Australia and is

considered the spiritual home of the Australian Cartoon Association (ACA).19

Currently there are approximately 150 professional cartoonists in Australia, with 60 of

those employed fulltime in the industry.

Australian competitions associated with cartoons are:

• Stanley Awards - The ACA's own cartoon awards for cartoonist members.

• Walkley Awards - The Media, Entertainment and Arts Alliance media awards.

• Mike Collins Caricature Award - A Perth-based caricature award.

• Bald Archie’s - A satirical out-take of the prestigious Archibald Prize.

• Behind The Lines Exhibition - A political cartoon award run by the National

Museum of Australia in Canberra.

The National Museum of Australia, situated in Canberra also runs a travelling

exhibition of ‘The Year’s Best Cartoons’; they also show work from their annual

political cartoon competition for students. This travelling exhibition is shown all

around Australia.

19 Discussion with Jules Faber, President of ACA

! 50

6.4 - Opportunities and Threats

Different to the strengths and weakness (already listed in prior chapter which focus

on the internal factors influencing the situation), opportunities and threats focus on

the external factors that will either positively or negatively influence the organisations

chances for success.

An analysis of the opportunities and threats to the Bunker Cartoon Gallery have been

provided below:

Opportunities Threats

• Repositioning and rebranding as gallery/

museum • Leverage partnerships with professional cartoon

associations. • Utilisation of technology – capturing the digital

market • Workshops • Kids activities • Sponsorship and membership • Touring of exhibitions – virtual and real across

Australia and the world • Formalise partnerships with international

galleries • International Cartoon Festival • Create and Leverage tourism experiences • Increase merchandise range • Increase social marketing - Social media • Leverage existing and successful festivals and

events – Repco Rally, Buskers Festival • Cartoonist in residence program • Add on sales – coffee/tea/local cakes and

biscuits • Cartoon subscriptions • Marketing agent for existing and aspiring

cartoon artists

• Current customer demand

for current experience • Customer underwhelmed

with current experience • Cartoon Collection

Copyright • Difficulties in changing

customer perceptions • Available Capital • Zoning of land • RTA directional signage

restrictions • Location of the bunker

$

! 51

7 - The Marketing Plan

The Bunker Cartoon Gallery currently has less than 10,000 visitors per year. For a

collection of this size, this indicates less than satisfactory marketing strategies have

been implemented in the past. In marketing terms, there can be only three reasons

for this:

1. Size of the marketing budget

2. Lack of understanding of the market segments – no targeted strategies

3. Product has no appeal

Consultation and analysis indicate it is a combination of all three that has resulted in

the current situation for the Bunker. This results in low visitation, and also low

income.

Therefore, the intention of the marketing plan is to help clarify and focus all marketing

efforts to maximise the return on the investment - both in terms of time and money.

For the Bunker, all marketing strategies must drive income generation. If they do

not, then they are either considered as “loss leaders” (whilst still a marketing

strategy, is considered an anomaly and not recommended for the Bunker at this time)

or they are public relations (PR) strategies. The sole goal of PR is to increase brand

awareness.

The business world could best be described as hyper-competitive, and any marketing

strategy needs to be cost effective and cut through noise and competition. For the

Bunker Cartoon Gallery, this is especially challenging – as there are a number of

industry categories that apply to the business:

• Tourism industry

• Retail industry

• Cultural industry

Traditional infrastructure based businesses can find and reach potential customers

with well-established methods of advertising and promotion. The downside is that

! 52

customers will only travel so far to experience that service or purchase a product,

limiting the number of customers a physical building can ever hope to attract.

Internet businesses have the exact opposite problem – and advantage. The number

of online customers is practically unlimited, but it is difficult to find them because they

are dispersed across wide geographies, making them harder to target.

The decision to develop an online component of the business creates both

challenges and opportunities and it is vital to understand what makes the Bunker

unique and competitive in an already crowded marketplace. A considered, efficient

and measured approach to marketing is needed.

The Bunker must move from a traditional “brick” based business and become a

“bricks and clicks” based business.

7.1 - Marketing Objectives

• Attract wider audience to the Bunker Cartoon Gallery

• Leverage the Internet, drive internet based sales

• Promote targeted experiences

• Leverage the gallery’s relationship with similar institutions

• Leverage existing tourism visitation strategies

• Increase yield, not just volume

• Increase sales of merchandise

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7.2 - Barriers to Marketing

Copyright

The most urgent and critical action that needs to be addressed as part of this

business plan is the licensing of copyright regarding the cartoon collection. It is highly

recommended that legal advice be sought before attempting any revenue raising

activities that involve the Rotary Cartoon Collection.

To facilitate time to market, it is recommended that this process should begin for the

most marketable/saleable cartoons.

Brand

Brand equals experience. And every product or service has a brand in the eyes of

customers. Consider these examples;

• McDonalds brand stands for “fast, consistent, cheap food, clean toilets” – not nutritious (despite their marketing efforts)

• Banks stand for “greedy, poor customer service, untouchable” (some banks are now acknowledging and using these facts in their campaigns because they simply can’t change the customers long held brand perception)

• Sport fishing stands for “expensive, big fish, extreme brand, fish fanatic”

What is the brand meaning behind cartooning? The results of focus groups suggest

it is:

• fun, laughter, frivolity and social comment

Therefore the current experience at the Bunker needs immediate improvement. And,

it is critical to get the experience correct before a marketing strategy is implemented.

Better to have your existing customers delighted with a new and improved

experience (during the transitional phase), than to target new customers following a

marketing campaign that offers customers the current experience.

There are distinct and separate audiences for museums, and for galleries. Customer

perception of museums is different to those expected of a gallery. This brand

awareness must be leveraged, not ignored. The success of marketing efforts

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depends on this fact. Repositioning the Bunker Cartoon Gallery as a “gallery and

museum”, or “interactive gallery and museum” will provide a platform to promote the

Bunker’s unique selling proposition, as one of the world’s largest collections of

cartoons. The effort to make this amendment is small, however the benefits of

improved customer perception is critical.

The current logo, whilst uniquely Australian (through the use of the Kookaburra),

does not reflect a vibrant, fun and informative experience. The logo must have

appeal to the target groups, and must communicate clearly the experience that the

customer will have.

To increase the appeal, it is

recommended that the overall look and

feel of the logo, and associated

marketing collateral be renewed. The

original logo has been updated in the

last couple of years, however there

remains an opportunity to completely

rebrand and reposition the Bunker

Cartoon Gallery as the Bunker Cartoon

Interactive Gallery and Museum. If the

bunker is to be a place for fun, laughter,

frivolity and social comment -

characteristics associated with

cartooning - a new logo must be developed. In fact, there would be an excellent

opportunity to spread the word about the new and improved experience the world

over, by utilising the cartoonist network and running a competition to design the logo.

The new logo should then form the foundation for rebranding across all Bunker

Cartoon Interactive Gallery and Museum marketing collateral.

The logo should not include a physical location as the audience will be world-wide.

Coffs Harbour, NSW would have limited meaning to someone living in Amsterdam.

Australia would have higher awareness. The key is to think global customer because

of the internet which makes this an international proposition. Removing a location

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from the logo still allows marketing promotions to include the location based

information as part of the ‘call to action’ eg

Visiting Coffs Harbour?

Come to the Bunker Cartoon Interactive Gallery & Museum, voted within the

top 3 experiences in Coffs by locals.

Need a laugh?

Search the world’s largest cartoon collection at

www.worldslargestcartooncollection.com.au

7.3 - Signage

The Bunker is situated where people have to drive to access it, and therefore

directional signage is essential. RTA must be engaged by the new entity to ascertain

current signage opportunities and constraints. There are ways to increase directional

and information signage, however these will require paid signage strategies.

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7.4 - Products and Services

There are a diverse and almost limitless range of products and services to be

considered for the new entity. At this stage, a list of products and services has been

compiled below, however most of these would require cost-benefit analysis before

investment in any infrastructure. For consideration are:

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7.5 - Customer Touch Points

Customer touch points are any time that a customer has the potential to become

aware of the business. This can be through external sources such as advertising,

word of mouth, brochure racks, the internet or even just passing a shop in the street.

Each time a customer is at a touch point, it represents an opportunity to get their

attention.

The marketing plan identifies such touch points and the specific marketing materials

that should be utilised to suit that touch point. This represents the best chance to

reach customers, influence their decision-making, cut through all the advertising

noise, and entice them to experience the product or service for themselves.

7.6 - Unique Selling Proposition (USP)

A USP is the description of the qualities that are unique to a particular product or

service and that differentiate it in a way that will make the customers purchase it over

its rivals/competitors.

The Bunker Cartoon Interactive Gallery and Museum’s USP is the size, and diversity

of the collection.

7.7 - Emotional Selling Point (ESP)

The ESP focuses attention on the emotional connection consumers have with the

product or service. It is about the experience and emotions provoked by that brand. It

is not about how we feel about brands, it is about how brands make us feel.

By entwining the people, experience and the stories that are behind the cartoons, a

compelling, authentic proposition is offered to customers that will enable the

emotional connection and will make them feel that they are fulfilling their own needs.

The emotional selling point for the Bunker Cartoon Interactive Gallery and Museum is

the nostalgia that is stirred through the social commentary sometimes this nostalgia

will be as much for the era that the cartoon depicts, as the commentary being made.

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7.8 - Marketing and Growth Strategies

7.8.1 Improve the cartoon experience, increase door charge, add-on sales and focus on word of mouth

There is tremendous opportunity for increasing the current experience. Consideration

needs to be given to increasing the overall vibrancy of the Bunker; to do this an

engagement of the senses is required.

Consideration could be given to:

• External chalk wall murals

• Ambient background music

• Additional displays down the centre of the main building

• Three dimensional cartoon art

• Brightly coloured staff uniforms

• Name badges with ‘Cartoon of the Week’

• Employing teenagers, especially in the school holidays and on weekends to

develop a broader demographic presence

• A safe and appropriate children’s area with colouring in, brightly coloured

beanbags and in built TV, to screen classic animated cartoons, This would be

located inside the main Bunker to enable parents to relax while viewing the

rest of the collection, whilst enhancing the children’s enjoyment

• ‘Kids School Holiday Program’

Kid school holidays programs should be run over the school holidays and

perfectly suit the family holiday destination that is Coffs Harbour.

Examples :

Children ages 6-12 are invited to be a part of these unique, hands-on cartooning classes, designed to inspire confidence, imagination, and development in children of any skill set. Each day's lesson will focus on easy-to-follow cartooning basics and tips, featuring illustrated instructions and story performances. All supplies are included. Sign up for a single camp, or all three at a discounted tuition. How to Toon - Cartooning Basics Learn the basic skills needed to create your own cartoon characters. Through simple line exercises and easy-to-follow step-by-step lessons, students will be amazed at their own skills and abilities. With a strong emphasis on character

! 59

development through personality, costume, character relationships and plot, this class not only reinforces drawing skills, but provides students with logical formulas for visual storytelling. Recommended for ages 6-12 Price $60 Members $50

• Food and Beverage A coffee machine could be hired at a monthly service charge and staff

provided with barista training would enhance the gallery and museum

experience, enticing visitors to stay longer and experience all that the Bunker

has to offer. Simple food that is either pre-packaged, or made off site and

delivered (scones and cakes) will drive income but do not require a

commercial kitchen.

• The installation of a cartoon lab would add great value to the Bunker

experience. For many visitors the opportunity to see a cartoonist at work

would provide inspiration, interest and potentially increase revenue though

caricature sales. It would also provide authenticity to the overall Bunker

Cartoon Interactive Gallery and Museum experience.

• ‘Utilising Technology – iPads’ The Bunker Cartoon Interactive Gallery and Museum can increase the level of

interactivity of the experience quite cheaply with new technology. The

purchase of iPads that have the entire cartoon collection available on them

would promote the uniqueness of the Bunker in terms of collection size and

would encourage people to stay longer. This is relatively new technology and

fun for people to use who have never experienced it before. It will also add

another talking point about the Bunker to friends and family.

• ‘Cartoon Yourself’ With advancing technology, there are a broad range of programs which allow

people to turn their photographs/images into cartoons. This could be a great

way to increase the level of fun at the Bunker. People could use the program

by using a webcam, connected to an interactive computer inside the Bunker

and then print out the picture. This also gives people a tangible object to take

home from the Bunker to add to the experience. If it’s funny then they are also

likely to show others, which encourages word of mouth marketing.

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• Merchandise position and pricing The location of merchandise is critical. It must be at the point where

customers are exiting, preferably they must not be able to exit without going

through the merchandise section. Understanding the “ant track” nature of

retail is fundamental to sale conversion. The current foyer area is designed

perfectly to have both food and beverage and also merchandise available.

Clear pricing of all items and the capacity to have quick transaction processes

is critical (think bar code). It is a given that the business must also have

EFTPOS facilities. If they don’t, then all the marketing in the world will not

increase sales.

• Calendar Development of calendar could be a really great way to boost revenue.

Pictures could be derived from the database of cartoons, photos from events

held throughout the previous year, a selected winner from the Stanley Awards

etc. There is a broad range of material that could be used for the calendar. It

could be sold at the Bunker itself, as well as online. Also, customers could

“make their own calendar” by selecting their desired cartoons and collating

into template. They either print them or they use them electronically. In this

instance, there is no capitial required to print, and the product actually

becomes an experience. This is the best kind of marketing possible.

• Gather intelligence from visitors – name, postcode and email address is the

minimum required. 100% of the time, this information will drive core, free

marketing initiatives.

• Send an automated thank you to the email address, and include a short

survey. These systems can be set up very cheaply and through the

automation system, require no time to implement. Review of the data

provides an instant feedback loop to drive adjustments in the experience.

The goal here is to use word of mouth to assist the business. If you don’t give

customers the chance to provide feedback (especially negative) they will find

a way to do it themselves – they will tell at least ten other people about it.

This is the worst kind of word of mouth possible and is considered the “death

by a thousand cuts” way to lose customers, slow and painful, but guaranteed.

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7.8.2 - Leveraging Partnerships

All marketing starts with a simple conversation. From there, a relationship is built,

and the sales cycle can commence. An effective marketing strategy is based on

finding ways to start these simple conversations, aimed at building trust. We know

that people buy from those they like and trust.

Cartoon Industry

The relationship with the Australian Cartoonists Association (ACA) needs to be

rekindled. This remains one of the Bunkers greatest opportunities. There exists a

great affection for the Bunker Cartoon gallery by the association; it has actually been

referred to as the ACA’s spiritual home.

Their membership database would be considered an excellent way to disperse

appropriate information directly to the target group. It is fair to assume, that each of

those members would also have a customer database (who have established a link

with cartoons). Whether this is a paid strategy, or in-kind, these targeted databases

are considered gold for direct marketing.

If the relationship with ACA can be strengthened, there may be an opportunity to host

‘The Stanleys’.

Key advocate and mentor – Jules Faber

Coffs Coast Tourism

Coffs Coast Tourism should be contacted to ensure that the Bunker is being

promoted throughout all of the regions tourism publications. They could be further

engaged by the news that the Gallery will be repositioning and rebranding in the

future, this would potentially attract substantial media coverage and strengthen and

renew the partnership with the tourism body and the Bunker.

An intimate understanding of tourism marketing and distribution channels is

considered vital. Currently there is a member of the BCGI with extensive tourism

expertise, and a proven track record in this competitive industry sector. Continuing a

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relationship as a tourism mentor and advocate must occur and the new entity must

take guidance and feedback about placement, costs and design of advertising.

Key advocate and mentor – Paige Sinclair

Sponsorship

The Bunker Cartoon Interactive Gallery and Museum has an opportunity to seek

major sponsorship, particularly once it is launched on the world stage through the

utilisation of the internet. One of the businesses that have been identified for potential

sponsorship is Redbull. The Redbull website has their own gallery of cartoons and

often utilises cartoons for its TV commercials and promotions. This shows that the

audience and opportunity for sponsorship is diverse; it’s just about finding the right

partner, with complimentary business synergies.

Membership

Members, upon registration will receive a Membership Package. The Package will

include:

• A quarterly electronic news letter

• A Membership number which will entitle them to a 10% discount for all events, and services provided directly by Bunker Cartoon Interactive Gallery and Museum

Members will also receive a copy of the Annual Report and a copy of the Audited

Financial Statements (these documents should also go on the website).

Suggested pricing is $10 per person.

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7.8.3 - Maximise financial return from the physical building

Events

Events will be a huge revenue booster for the Bunker Cartoon Interactive Gallery and

Museum. With the repositioning and broader scope of appeal to art forms other than

cartooning, there is opportunity for a broad range of events.

• Awards

• Annual international cartoon festival

However, database numbers are a trigger to moving forward with events, or

advertising will be expensive.

The Rotary Cartoon Awards should now consider charging an entry fee, however

members would gain free entry. This will

• Drive income through membership sales.

• Increase awareness of the website

• Grow the database – if the entry process is online, the data will have been collected even for those who don’t end up entering

7.8.4 - Creating ‘Click Cash’ – Online Marketing

To pursue an online strategy, the Bunker Cartoon Interactive Gallery and Museum

needs to consider how potential customers can be attracted to the website.

Search Engine Optimisation (SEO) is the process of improving visibility of a website

or a webpage in search engines via the “natural” or unpaid search results. In

general, the earlier (or higher the page) and more frequently a site appears in the

search results, the more visitors it will receive from the search engine. This gives a

web site, web presence.

The key to SEO is to understand the word(s) customers use to search for products,

services or experiences.

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A key word analysis using the words that relate and describe the Bunker Cartoon

Interactive Gallery and Museum, using Google Ad Words showed these results;

Keyword Competition

Global monthly searches

Local Monthly searches (Australia)

Cartoon Low, 0.03% 555,600,000 1,000,000

Cartoon Gallery Low, 0.06% 110,000 1,900

Cartoon Museum Low, 0.07% 18,100 390

Cartoon images Low, 0.08% 1,500,000 49,500

Cartooning Low, 0.12% 13,500 5,400

Ensuring that these keywords are used in the Bunker Cartoon Interactive Gallery and

Museum website content will help the SEO and visibility of the website.

Database

The development of a database is a priority for every business. Unfortunately, the

Bunker Cartoon Interactive Gallery and Museum despite years of being open to the

public, does not have an adequate database.

The main objective of the database is to grow the business. The more information

that can be captured about existing customers and potential customers, the more

effective the strategy will be. The Bunker Cartoon Interactive Gallery and Museum

needs to establish a database that can collect information on customer’s

demographics – age, sex, geographic location, purchasing behaviour and history.

This will enable the Bunker Cartoon Interactive Gallery and Museum to build a

customer profile for better targeted marketing effectiveness. The collection of

information from membership, newsletter subscribers and Facebook fans will

contribute to building a great database and a comprehensive customer profile.

! 65

The database should be developed with the view of establishing a fully integrated

CRM (customer relationship management) system – “Salesforce” offers a free

version.

New Website

Creating a new website is essential. The Bunker Cartoon Interactive Gallery and

Museum website will be paramount to the overall brand experience. This will become

a MAJOR touch point and all aspects of the site need to build an exceptional

experience for the customer.

Every effort needs to be made to build a totally immersive experience.

There needs to be a Cartoon history, digital access to the collection, virtual tours of

themed collections, stories about the artists, and accompanying nostalgic stories of

an era associated with the social commentary being depicted in the cartoon. There

needs to be hints and tips, professional development opportunities and interactive

workshops.

In addition, functionality will underpin the site’s success. It must have:

• Shopping cart facility

• Opt-in newsletter

• Database integration

• Blog and social media capacity

Following are some great examples of website design that should be referenced for

the Bunker Cartoon Interactive Gallery and Museum:

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!

!

!

!

Figure!4!

!www.toonseum.org!combines!attractive!design,!with!good!cartoon!related!information!

!

!

!

!

Figure!5!

!www.crayola.com,!which!provides!an!example!of!colour!and!interactivity.!

!

!

!

Figure!6!

!www.thecartoonmuseum.c

om!L!good!example!of!online!shopping!facility!

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!

!

!

!

Figure!7!www.julesfaber.com,!a!good!example!of!cartoon!products,!interactivity!and!humouros!chatty!text!

!

!

!

!

Figure!8!

The!Cartoon!Art!MuseumL!note!the!ways!they!invite!visitors!to!engage!with!them!

!

! 68

Key features of the Bunker Cartoon Interactive Gallery and Museum website should

be:

• An online gallery/ shop

• Newsletter signup

• Upcoming exhibitions and events

• A kid’s section, with a downloadable graphic of the Bunker Cartoon Interactive Gallery and Museum that could be coloured in. This will help set the scene and enhance anticipation of the Bunker experience.

• Opening hours and admission prices.

Digital Sales of Collection

There is an enormous opportunity to utilise the cartoon collection’s electronic

database to enable the purchase of cartoons over the Bunker Cartoon Interactive

Gallery and Museum’s website. In a recent Nielsen Online study, commissioned by

Australia Council for the Arts, 90% of the 2500 arts attendees interviewed were

searching for arts content online. However, although audiences - especially the

young and tech-savvy were keen to access the arts virtually, many companies have

been slow to meet their needs online.

Once copyright issues are resolved this should be pursued as a priority to drive

revenue. This will expand the customer base worldwide and with it the Bunkers’

reputation for cartoon art.

Social Media

Further promotion of the existing Facebook page is

recommended. This is an excellent tool for sharing information

about the Bunker. Initiatives like ‘Cartoon of the Week’, ‘Peoples

Choice Cartoon’ competitions and artists’ links will help drive

numbers of people “liking”

the page, thus increasing the audience numbers

and ability to connect with past visitors and drive

future visitation. Viral campaigns should be

! 69

utilised as an initial marketing tool to increase visitation to the Facebook page. The

website and the Facebook pages need to direct customer traffic from one site to the

other.

In terms of social media, Facebook is the ideal place for the Bunker Cartoon

Interactive Gallery and Museum. It has all the best demographics, allows for

connectivity between the Bunker Cartoon Interactive Gallery and Museum and its

customers, in a way that is authentic and engaging. Customers can write reviews,

and the Bunker can host the artists behind the cartoons on the site.

This will build a groundswell of grassroots marketing as each of the people that

contribute cartoons to the Bunker Cartoon Interactive Gallery and Museum will

promote the Facebook page to their friends and this will continue to grow

exponentially.

Figure!9!Current!Facebook!Page!

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7.8.5 - Print Media and Advertising

Marketing Collateral

Templates should be developed that reflect the new logo and branding. A range of

styles and sizes will be needed to allow for multiple uses e.g. DL for brochures and

with compliments, A4 for invitations to events etc. Electronic templates that can

reduce the need for printing are a clever way to reduce spend and maintain a

professional brand.

Print Media

Targeted use of paid advertisements could be considered within the marketing mix,

however they must have:

• a distinct call to action e.g. register on line

• a measurement strategy to evaluate the effectiveness of the ad e.g. mention this ad for a 10% discount

Seek advice and guidance from tourism experts about the best times and the best

magazines and papers aimed specifically at visitors to the region.

Seek advice and guidance from cartoon industry experts about cartoon related print

media outlets.

Editorial

Editorial is considered a far better strategy than paid advertising because customers

trust this source of information, they are suspicious of paid advertisements.

A 12-month editorial program must be developed and implemented. This must

include local, national, international articles written for targeted media e.g. voyeur for

Virgin because they fly into Coffs Harbour, but the magazine is on all flights,

therefore the article must have appeal to passengers regardless of their destination –

a media release that focuses on an event with the added bonus of website attraction

will have appeal and therefore will have an improved hit rate.

! 71

Key to this strategy is planning and advanced preparation of stories. In the main,

magazines are written and printed at least 3 months prior to distribution.

Product Bundling

There is potential to bundle the Bunker Cartoon Interactive Gallery and Museum

product with other complimentary tourism and cultural offerings eg accommodation

providers, Pet Porpoise Pool, Big Banana, Regional Gallery, Jetty Theatre and the

Sawtell Cinema.

Opportunities for product bundling with partnering providers will arise as the business

develops, however they will need to be driven through relationships and strategic

alliances that offer a benefit for all parties.

Cinema Advertising

The Coffs Harbour Gallery study showed that respondents listed the cinema as the

most frequent cultural event that they attended. This shows a great opportunity to

expose the Bunker to people who are interested in cultural activities. There is also a

broad range of demographics that attend the cinema, particularly families, who are

looking for entertaining experiences for their children. Targeted messaging is

essential – eg running a campaign during school holidays promoting children’s

workshops, running campaigns scheduled with screenings of animated movies.

Blanket or generic advertisements are not recommended.

7.8.6 - Ready Set Re-launch

Familiarisation Tours

It is time to open the doors of the Bunker Cartoon Interactive Gallery and Museum to

the community of Coffs Coast. An invitation to specific media, tourism operators,

accommodation providers, business people, and community organisations to come

and experience the Bunker Cartoon Interactive Gallery and Museum at no cost

should be issued as soon as the new entity believes the business is running at its

best. This will gain free editorial, and it will assist it raising the profile of the business

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with people who can refer the experience on to others including visiting family and

friends (a large segment of tourists coming to Coffs Harbour).

Tour of Collection

The Bunker Cartoon Interactive Gallery and Museum could consider a travelling

collection strategy. This would mean setting up connections with other

galleries/museums around Australia and showing a range of cartoons at those

galleries. Again, relationships and strategic partnerships will yield results.

Touring programs must generate income for the Bunker Cartoon Interactive Gallery

and Museum.

Re-opened for Business

Use the following strategies to tell customers that the Bunker Cartoon Interactive

Gallery and Museum is re-opened for business:

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8 - Organisational Plan

The following section puts forward key items deemed critical to the future success of

the Bunker Cartoon Interactive Gallery and Museum.

8.1 - Management Team

A team of three core people must drive the strategic and business direction for the

Bunker Cartoon Interactive Gallery and Museum. The appointment should be for a

period of three years to ensure there is an appropriate length of time to bring about

outcomes.

These people should be selected on merit and have a proven track record in

business development. People with additional experience and success in

merger/acquisition, or in rebuilding underperforming businesses would be extremely

valuable.

In addition, each member of the team must be given a portfolio to focus effort and

investment of time. The portfolios are:

Business Development

• Business Plan implementation, evaluation and review

Marketing

• Marketing plan implementation, evaluation and review

Finance

• Budget control

• Credit management

It is anticipated that each portfolio leader will seek support from individuals with

appropriate expertise and passion to support them and existing members of the

BCGI would be an excellent point to begin. However caution is advised to steer away

from the creation of committees etc. The Bunker Cartoon Interactive Gallery and

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Museum needs decisive action, clear focus and commitment to stay true to the set

path. Therefore, in the next 2-3 years, Portfolio leaders should call for project-based

support rather than committee-based support. They should also actively seek and

take audience from individuals with required experience and skills.

8.2 - Operations Manager

This role will be ultimately responsible for the performance of the business. In

coordination with the management team, this person will ensure the vision and

financial aspirations of the business are met, and will develop effective strategies to

grow the business.

• They will be responsible for marketing activities

• Managing budgets

• Reporting on KPIs

• Oversight of all operations

• Processing invoices, vendor payments

• Book keeping, cashflow statements and financial statements

• Annual report

• Processing and administering contractual obligations

• Volunteer management, training and advancement

8.3 - Curator/Artist in Residence

It is rare to have a manager with business skills, who also has the necessary

curatorial skills required at the Bunker Cartoon Interactive Gallery and Museum. It is

recommended that a strategic alliance be formed with a Cartoon Artist who will be

offered creative space and become the Artist in Residence in return for the provision

of Curatorial services.

! 75

8.4 - Volunteers

Critical to the ongoing operation of the Bunker Cartoon Interactive Gallery and

Museum are a core team of skilled and passionate volunteers.

Volunteers must complete a skill assessment and these skills would be matched to

areas of operational responsibility. Rather than be treated as free casual labour, they

should be developed and supported to provide anchor operational services.

8.5 - Junior Staff

To engage young people in school programs, young people need to be employed to

organise and oversee these programs. Whether they are volunteers or paid casuals,

they have been separately mentioned to ensure Generation X recruitment occurs.

8.6 - Proposed Management Structure

! 76

9 - Operational Plan

This section is included to ensure that the business has the opportunity to run

professionally and profitably. The summary is not an exclusive list, but should form

the basis of any requirements to allow best practice operations.

The Operations Manager will be required to

• develop a policy and practice manual setting out clear guidelines for the

management and use of the Bunker Cartoon Interactive Gallery and Museum.

All Policies and Procedures will be reviewed annually.

• ensure adherence to the policies and procedures of the organisation.

• develop and maintain an Asset Register, an Insurance Register, a Member’s

Register and a Volunteer Register.

• ensure that an Annual Report is completed and provided to the management

team.

• ensure Audited Financial Statements are provided to the management team.

• ensure adherence to all Employer responsibilities under relevant legislation.

• provide staff and volunteers with clear Job Descriptions.

• develop an Information Kit, to be updated and issued to volunteers and staff

upon commencement of duties.

The Kit will include:

• The Business Plan

• Management team roles & responsibilities

• The most recent Annual Report

• The Audited Financial Statements

• The Organisational Structure

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• The Code of Ethics

• The Confidentiality Policy

• The Conflict of Interest Policy

• The Dispute Resolution Policy

• OH & S Policy

• Communication Policy

• Volunteer Policy

• Equal Opportunity Policy

• Staffing details including Roles and Job Descriptions

• Financial Delegation details

• An Events Calendar

9.1 - Insurance

The following Insurance Policies should be considered:

• Public Liability

• Officer’s and Director’s Liability

• Volunteer Accident

• Building and Contents

• Workers Compensation

9.2 - Asset Register

An (electronic) Asset Register should be developed and maintained. This is required

for insurance and audit purposes and should be provided to both the Insurance

Company and the Auditor annually.

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9.3 - Stock at Hand

Electronic records of Stock at Hand should be kept and updated at all times. This is

necessary for the purposes of potential insurance claims, stock management, audit,

and benchmarking. All stock should be recorded upon receipt and sale so that a

current running tally is available at all times.

9.4 - Financial Delegations

The Management team has overall responsibility for the financial management of the

Bunker Cartoon Interactive Gallery and Museum. Payments are approved and

cheques are written by the delegated Operations Manager. Some financial

delegation may need to be given to staff and volunteers.

9.5 - Purchasing Policy

The Operations Manager should develop a policy that outlines the process for all

expenditure. This would include how financial decisions are made, what approval is

required and expenditure limits.

The Management team must retain financial control over all aspects of the Bunker

Cartoon Interactive Gallery and Museum. A purchasing policy should be developed

by the Operations Manager for approval by the Management team.

9.6 - Segregation of Duties

All workers and volunteers associated with the Bunker Cartoon Interactive Gallery

and Museum should be given an outline of the roles and responsibilities of the

Management Team and the Operations Manager.

In addition, these roles should be reviewed annually and be distributed in the

Information Kit. It is the responsibility of the Management team to ensure that each

member is fulfilling their role within the context of the organisation as a whole.

! 79

9.7 - Volunteer Induction Kit

All people who work at the Bunker Cartoon Interactive Gallery and Museum should

undergo an induction process. This would include OH&S requirements. This will

reduce the risk to volunteers, reduce the rate of incidents occurring on site and in

turn reduce the potential for legal ramifications.

In addition, a volunteer skill and passion assessment should be completed upon

commencement to allow the Operations Manager the opportunity to best place

volunteers in the organisation based on their past history, skills and experiences.

9.8 - Occupational Health and Safety

An OH&S Policy should be developed and all members, staff & volunteers should be

aware of the policy and provided with copies upon request. An OH&S Committee

should be convened comprising management, staff and volunteer representation.

Legislation requires that the management and staff representatives must complete

an OH&S Consultation Certificate. Information about courses, accreditation and

policies may be accessed through the NSW Work Cover Authority.

9.9 - Artist in Residence, Curator

A service level of agreement should be developed to ensure a quid pro quo

arrangement for services given and received is fair and equitable and the quality of

these services are at a professional level.

9.10 - Quid Pro Quo

A policy for Quid Pro Quo contributions should be developed.

! 80

10 - Implementation Plan

10.1 - Stage 1 Council Driven

Month/Year Activity Status

Oct-2011 • CHCC and project team to receive final business plan

Nov-2011 • CHCC staff to prepare business paper for Council

• Councillors make decision as to the recommended model for

managing the Bunker Cartoon Interactive Gallery and

Museum

Dec-2011 • Legal advice on copyright

Dec-2011 • CHCC and project team develop service level of agreement

as part of the tender process, including KPIs

Jan/Feb 2012 • Tender open

• Contracts prepared

March-2012 • CHCC selects successful operator

April-2012 • Contracts executed

May-2012 • Works prior to handover commenced

June-2012 • New contractor commences management of the Bunker

Cartoon Interactive Gallery and Museum

! 81

10.2 - Stage 2 New Entity Driven

Month/Year Activity for Implementation Status

March 2012 • Appoint management team, and allocate portfolio responsibilities

• Editorial written

• Monthly management team meeting

April 2012 • Develop position description for operation manager

• Advertise for operation manager

• Select and appoint operation manager

• Management team identifies and target strategic partnerships, setting targets for outcomes of this process

• Editorial written

• Monthly management team meeting

May 2012 • Commence negotiations for the Tour of Collection with galleries and museums around Australia

• Curator/Artist in Residence recruitment and selection phase

• Editorial written

• Monthly management team meeting

• Uniforms developed, purchased

• Commence database information collection phase

May - June 2012 • Operation manager commences and prepares 12 month operation plan (consider this implementation plan as the starting point for major tasks)

• Management team review and prioritise experience enhancement strategy

• Prepare scale diagram for interior fit-out, gain quotes for work

• 12 month capital budget planning process to reflect priorities –

! 82

management team and operations manager

• Engage with RTA for directional signage

• Paid signage strategy developed and budget allocation made

• Develop website upgrade briefing, select provider and complete website works.

• Events and workshop schedule for 12 month in advance completed

• New merchandise begins to be ordered – test and measure phase (not too much stock at this time)

• Volunteer recruitment and selection phase commences

• Uniforms allocated to volunteers, staff and Curator

• Editorial written

• Monthly management team meeting

June – August

2012

• Operation Manager to complete policy and practice manuals, information kit, induction kit, insurance, and asset register.

• All volunteers to complete skill and passion assessment – and be allocated key duties and area of responsibility

• Logo redesign, marketing collateral templates completed (Logo competition for consideration in this process)

• Call for specialist volunteers to support the installation process:

• Kids area

• Foyer area including merchandise and café

• Cartoon Lab for artist in residence

• Fit-out completed prior to school holiday period.

• Merchandise range orders completed and stock begins to arrive

• Tour of the collection commences

• Signage strategy to commence implementation

• National and international editorial written

• Six monthly management team meeting, performance review

! 83

and financial target analysis

Sept – Oct • School workshop programs commence

• Relaunch Event – new price, new product, new experience phase now commences

• Familiarisation phase commences

• Sponsorship drive commences

• Membership program is launched and membership drive commences

• Digital sale of collection commences

• Viral marketing campaign commences

• National and International Editorial written

• Monthly management team meeting

November • Monthly management team meeting

December 2012

• Upgrade exterior of the bunker – clean garden area, chalk mural area completed, extend paving area if possible

February 2013 • Twelve monthly business review - performance review and financial target analysis, annual report, event schedule, forward budgeting, annual operating plan prepared.

• Develop annual marketing plan

• Review

! 84

11 - Financial Plan

The financial plan includes the following components:

11.1 Capital Budget 2012 - 2014

11.2 Profit and Lost Budget 2012-2014

11.3 3 Year Cash-flow

11.4 Break Even Analysis

2012 2012 - 2013 2013 - 2014May - June July -June July -June

CAPITAL EXPENSES

Purchase of iPads $ - $ 5,790.00 $ - Purchase of 10 iPads at $579.00 eachDirectional Signage $ 3,000.00 $ - $ - RTA approval required - Budget AllocationRebranding Fund $ - $ 2,000.00 $ - Rebranding and collateral development, Logo design, Template designs, photograph

and animation. Fixed budget, utilise Rotary connections for discount on design.Display Units $ - $ 5,000.00 $ - EstimateCartoon Yourself Lab $ - $ 2,000.00 $ - Cartoon yourself, allowed for computer program and new computer and printer.Repairs and Upgrade $ - $ - $ - Awaiting condition report.Resolve Copyright $ 2,000.00 $ - $ - Rotary expense to resolve the copyright issues - budget allocationWebsite Development $ 5,000.00 $ - $ - Upgrade including content, management and shopping cart - budget allocation

Foyer Upgrade $ - $ 5,000.00 $ - Volunteer labour to design and install, also find second hand equipment for kitchen upgrade, fridge, cutlery, crockery, Merchandise display - budget allocation

Stereo and Speakers $ 1,500.00 $ - $ - Purchase and Installation - budget allocationInternal 3D Displays $ - $ 10,000.00 $ - Main area to have Tech based display.Staff Shirts $ 1,000.00 $ - $ - Purchase Colour Shirts with Logo - Budget AllocationEFTPOS Setup $ 200.00 $ - $ - Establishment Fee is charged at $200.00 by NABCartoon Lab Fitout $ - $ 3,000.00 $ - Vinyl Floor, BalastradeFitout Childrens Area $ - $ 5,000.00 $ - 3m x 3m area for children with glass walls. TV, beanbags, walls, vinyl floor, chalk wall.External Upgrades $ - $ - $ 2,000.00 Clear garden area, more paving to be done at the front. Note: This is for materials only,

work to be done by volunteers.TOTAL $ 12,700.00 $ 37,790.00 $ 2,000.00

Assumptions

Capital Budget 2012 - 2014

2012May - June

2013July -June

2014July -June Assumptions

CAPITAL EXPENSES $ 12,700.00 $ 37,790.00 $ 2,000.00

RECEIPTS 2012 2013 2014Admission $ 6,666.60 $ 60,000.00 $ 80,000.00 Based on 1,666 visitors for May - June 2012, 15,000 visitors in 2013 and 20,000 visitors in 2014. $5 admission each for adults, and $3 for kids. Ratio = 1

child:1 adultCouncil Contribution $ 20,000.00 $ 50,000.00 $ 50,000.00 Council to contribute $20,00 first up and $50,000 per year from then on.Merchandise $ - $ 18,750.00 $ 25,000.00 Merchandise sales - based on $5 RRP with a profit margin of $2.50 per item. Also these figures are based on 50% of visitors purchasing mechandise.Venue Hire $ 330.00 $ 1,980.00 $ 1,980.00 Average of 3 hours per venue hire, allowing for 1 venue hire per month at $55 per hour.Workshops $ - $ 3,750.00 $ 3,750.00 This figure is based on 10 people attending each workshop. Also 15 workshops to be held each year. Costs are $10 per person + Cost of hiring trainer =

$250 profit per w/shopTour of Exhibition $ - $ 20,000.00 $ 20,000.00 Flat fee of $2000. Conduct 10 tours a yearCartoon sales commission $ - $ 393.75 $ 525.00 10 prints sold per year @ $175.00. Keep 30% commission. (Note 2013 figure based on 9 months of the year) (See Appendix 7)Awards $ - $ 5,000.00 $ 5,000.00 $20,000 income from sponsorship, door sales, entry fees, costs are $10,000 prize money and $5,000 operating budget.Café Sales $ 3,333.33 $ 25,500.00 $ 34,000.00 Coffee and tea is based on the assumption that 70% of customers will purchase tea or coffee. Also Cake is based on 15% of customers purchasing cake.Membership $ - $ 5,625.00 $ 10,000.00 Target is to gain 5000 members by the end of 5 years. Membership cost is $10.00 at start of membership. Allowed for 750 new members in 2013 and 1000Sponsorships $ 333.33 $ 2,000.00 $ 2,000.00 Based on 40 Bronze sponsorships each year at $50 each.Vending Machine $ 500.00 $ 4,500.00 $ 6,000.00 Based on the assumption that only 20% of the customers will purchase a cold drink from the vending machine the mark up per drink of $1.50.Donation $ 633.33 $ 4,000.00 $ 4,500.00

TOTAL $ 31,796.60 $ 201,498.75 $ 242,755.00

FIXED COSTS 2012 2013 2014Insurance Allocation $ 444.09 $ 2,797.74 $ 2,937.62 Based on 2011 costs and a CPI increase of 5%Rates and Charges $ 821.33 $ 5,174.41 $ 5,433.13 Based on 2011 costs and a CPI increase of 5%Postage $ 329.64 $ 2,076.74 $ 2,180.57 Based on 2011 costs and a CPI increase of 5%Security $ 99.25 $ 625.26 $ 656.52 Based on 2011 costs and a CPI increase of 5%Telephone $ 348.14 $ 2,193.26 $ 2,302.92 Based on 2011 costs and a CPI increase of 5%Cleaning $ 83.33 $ 525.00 $ 551.25 Based on 2011 costs and a CPI increase of 5%Advertising $ 333.33 $ 2,100.00 $ 2,205.00 Based on 2011 costs and a CPI increase of 5%Healthcare Service $ 105.21 $ 662.82 $ 695.96 Based on 2011 costs and a CPI increase of 5%Electricity $ 1,238.67 $ 7,803.61 $ 8,193.79 Based on 2011 costs and a CPI increase of 5%Coffee Machine Lease $ 159.72 $ 1,006.25 $ 1,056.56 Estimate, includes the ongoing cost of training of baristas and maintenance of machine.Sundries $ 666.67 $ 4,200.00 $ 4,410.00 Budget allocation - Based on 5% of operating costsMarketing Budget $ 833.33 $ 5,250.00 $ 5,512.50 Allocated marketing budget.Vending Machine $ 260.00 $ 1,638.00 $ 1,719.90 Hire of machine at $30.00 per week ref: <http://www.vend-it.com.au/hire-vend-machines.pdf>Accounting Fees $ 83.33 $ 525.00 $ 551.25 Accounting Fees, budget allocation of $1,500 allowed per year.Bank Charges $ 794.92 $ 5,007.96 $ 5,258.36 0.1% of turnover allowed for bank fees and charges.Volunteer costs $ 166.67 $ 1,050.00 $ 1,102.50 Volunteer costs are $100 allowed per volunteer per yearRepairs and Maintenance $ 333.33 $ 2,100.00 $ 2,205.00 $2000 budget allocation for ongoing repairs and maintenanceStaff Costs $ 6,250.00 $ 77,250.00 $ 81,112.50 One manager on contract for $75,000 with 3% wage increase per year.Office and Stationary $ 666.67 $ 4,200.00 $ 4,410.00 Allocated buget based on previous year. Allowed for an additional 5% increase every year

TOTAL $ 14,017.63 $ 126,186.04 $ 132,495.34

TOTAL PAYMENTS $ 26,717.63 $ 163,976.04 $ 134,495.34 TOTAL INCOME $ 31,796.60 $ 201,498.75 $ 242,755.00 Surplus (Deficit) $ 5,078.97 $ 37,522.71 $ 108,259.66 Opening Balance $ - $ 5,078.97 $ 42,601.68 Closing Balance $ 5,078.97 $ 42,601.68 $ 150,861.34

Profit and Loss 2012 - 2014

May2012

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013 TOTAL

CAPITAL EXPENSES

Purchase of iPads $ - $ - $ - $ - $ 5,790 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,790

Directional Signage $ - $ 3,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,000

Rebranding Fund $ - $ - $ - $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000

Display Units $ - $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

Cartoon Yourself Lab $ - $ - $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000

Repairs and Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Resolve Copyright $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000

Website Development $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

Foyer Upgrade $ - $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

Stereo and Speakers $ - $ 1,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,500

Internal 3D Displays $ - $ - $ 10,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 10,000

Staff Shirts $ 1,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,000

EFTPOS Setup $ 200 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200

Cartoon Lab Fitout $ - $ - $ - $ 3,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,000

Fitout Childrens Area $ - $ - $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

External Upgrades $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

TOTAL $ 3,200 $ 9,500 $ 22,000 $ 10,000 $ 5,790 $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ 50,490

RECEIPTS May2012

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

Admission $ 3,333 $ 3,333 $ 1,250 $ 1,250 $ 5,000 $ 7,500 $ 2,500 $ 10,000 $ 10,000 $ 2,500 $ 7,500 $ 7,500 $ 2,500 $ 2,500 $ 66,667

Council Contribution $ 20,000 $ - $ 50,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 70,000

Merchandise $ - $ - $ 1,000 $ 1,000 $ 2,000 $ 3,000 $ 1,000 $ 2,500 $ 2,000 $ 1,000 $ 2,000 $ 1,500 $ 1,250 $ 500 $ 18,750

Venue Hire $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 2,310

Workshops $ - $ - $ 200 $ 200 $ 400 $ 400 $ 100 $ 500 $ 450 $ 200 $ 400 $ 500 $ 200 $ 200 $ 3,750

Tour of Exhibition $ - $ - $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 20,000

Cartoon sales commission $ - $ - $ - $ - $ - $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44

$ 394

Awards $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000 $ - $ - $ - $ 5,000

Café Sales $ 1,667 $ 1,667 $ 1,000 $ 1,000 $ 3,000 $ 3,000 $ 1,000 $ 3,000 $ 3,000 $ 1,500 $ 3,000 $ 3,000 $ 1,500 $ 1,500 $ 28,833

Membership $ - $ - $ - $ - $ - $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 5,625

Sponsorships $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 2,333

Vending Machine $ 250 $ 250 $ 375 $ 375 $ 375 $ 375 $ 375 $ 375 $ 375 $ 375 $ 375 $ 375 $ 375 $ 375 $ 5,000

Donation $ 317 $ 317 $ 333 $ 333 $ 333 $ 333 $ 333 $ 333 $ 333 $ 333 $ 333 $ 333 $ 333 $ 333 $ 4,633

TOTAL $ 25,898 $ 5,898 $ 56,157 $ 6,157 $ 13,107 $ 17,275 $ 7,975 $ 19,375 $ 18,825 $ 8,575 $ 21,275 $ 15,875 $ 8,825 $ 8,075 $ 233,295

Cashflow Budget 2012 - 2013

FIXED COSTS May2012

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

Insurance Allocation $ 222 $ 222 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 3,242

Rates and Charges $ 411 $ 411 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 5,996

Postage $ 165 $ 165 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 2,406

Security $ 50 $ 50 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 725

Telephone $ 174 $ 174 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 2,541

Cleaning $ 42 $ 42 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 608

Advertising $ 167 $ 167 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 2,433

Healthcare Service $ 53 $ 53 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 768

Electricity $ 619 $ 619 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 9,042

Coffee Machine Lease $ 80 $ 80 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 1,166

Sundries $ 333 $ 333 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 4,867

Marketing Budget $ 417 $ 417 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 6,083

Vending Machine $ 130 $ 130 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 1,898

Accounting Fees $ 42 $ 42 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 608

Bank Charges $ 397 $ 397 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 5,803

Volunteer costs $ 83 $ 83 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 1,217

Repairs and Maintenance $ 167 $ 167 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 2,433

Staff Costs $ 3,125 $ 3,125 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 83,500

Office and Stationary $ 333 $ 333 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 4,867

$ -

TOTAL $ 7,009 $ 7,009 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 140,204

May2012

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

TOTAL PAYMENTS $ 10,209 $ 16,509 $ 32,516 $ 20,516 $ 16,306 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516 $ 10,516

$ 190,694

TOTAL INCOME $ 25,898 $ 5,898 $ 56,157 $ 6,157 $ 13,107 $ 17,275 $ 7,975 $ 19,375 $ 18,825 $ 8,575 $ 21,275 $ 15,875 $ 8,825 $ 8,075

$ 233,295

Surplus (Deficit) $ 15,689 $ (10,611) $ 23,641 $ (14,359) $ (3,199) $ 6,760 $ (2,540) $ 8,860 $ 8,310 $ (1,940) $ 10,760 $ 5,360 $ (1,690) $ (2,440)

$ 42,602

Opening Balance $ - $ 15,689 $ 5,079 $ 28,720 $ 14,361 $ 11,162 $ 17,922 $ 15,382 $ 24,242 $ 32,552 $ 30,612 $ 41,372 $ 46,732 $ 45,042

$ -

Closing Balance $ 15,689 $ 5,079 $ 28,720 $ 14,361 $ 11,162 $ 17,922 $ 15,382 $ 24,242 $ 32,552 $ 30,612 $ 41,372 $ 46,732 $ 45,042 $ 42,602

$ 42,602

Cashflow Budget 2012 - 2013

July2013

Aug2013

Sept2013

Oct2013

Nov2014

Dec2013

Jan2014

Feb2014

March2014

Apr2014

May2014

June2014 TOTAL

CAPITAL EXPENSESPurchase of iPads $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Directional Signage $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Rebranding Fund $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Display Units $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Cartoon Yourself Lab $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Repairs and Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Resolve Copyright $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Website Development $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Foyer Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Stereo and Speakers $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Internal 3D Displays $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Staff Shirts $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - EFTPOS Setup $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Cartoon Lab Fitout $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Fitout Childrens Area $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - External Upgrades $ - $ - $ - $ - $ 2,000.00 $ - $ - $ - $ - $ - $ - $ - $ 2,000.00 TOTAL $ - $ - $ - $ - $ 2,000.00 $ - $ - $ - $ - $ - $ - $ - $ 2,000.00

RECEIPTS July2013

Aug2013

Sept2013

Oct2013

Nov2014

Dec2013

Jan2014

Feb2014

March2014

Apr2014

May2014

June2014

TOTAL

Admission $ 4,000.00 $ 4,000.00 $ 8,000.00 $ 8,000.00 $ 6,000.00 $ 10,000.00 $ 10,000.00 $ 6,000.00 $ 8,000.00 $ 8,000.00 $ 4,000.00 $ 4,000.00

$ 80,000.00

Council Contribution $ 50,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ 50,000.00

Merchandise $ 1,000.00 $ 1,000.00 $ 3,000.00 $ 3,000.00 $ 1,500.00 $ 3,000.00 $ 3,000.00 $ 1,500.00 $ 3,000.00 $ 3,000.00 $ 1,000.00 $ 1,000.00

$ 25,000.00

Venue Hire $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00 $ 165.00

$ 1,980.00

Workshops $ 200.00 $ 200.00 $ 450.00 $ 450.00 $ 200.00 $ 400.00 $ 450.00 $ 200.00 $ 400.00 $ 400.00 $ 200.00 $ 200.00

$ 3,750.00

Tour of Exhibition $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67 $ 1,666.67

$ 20,000.00

Cartoon sales commission $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75 $ 43.75

$ 525.00

Awards $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000.00 $ - $ - $ -

$ 5,000.00

Café Sales $ 2,000.00 $ 2,000.00 $ 3,000.00 $ 3,000.00 $ 2,000.00 $ 5,000.00 $ 5,000.00 $ 2,000.00 $ 3,000.00 $ 3,000.00 $ 2,000.00 $ 2,000.00

$ 34,000.00

Membership $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33 $ 833.33

$ 10,000.00

Sponsorships $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67 $ 166.67

$ 2,000.00

Vending Machine $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00

$ 6,000.00

Donation $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 375.00

$ 4,500.00

TOTAL $ 60,950.42 $ 10,950.42 $ 18,200.42 $ 18,200.42 $ 13,450.42 $ 22,150.42 $ 22,200.42 $ 13,450.42 $ 23,150.42 $ 18,150.42 $ 10,950.42 $ 10,950.42

$ 242,755.00

Cashflow Budget 2013 - 2014

FIXED COSTS July2013

Aug2013

Sept2013

Oct2013

Nov2014

Dec2013

Jan2014

Feb2014

March2014

Apr2014

May2014

June2014

TOTAL

Insurance Allocation $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 244.80 $ 2,937.62

Rates and Charges $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 452.76 $ 5,433.13

Postage $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 181.71 $ 2,180.57

Security $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 54.71 $ 656.52

Telephone $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 191.91 $ 2,302.92

Cleaning $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 551.25

Advertising $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 2,205.00

Healthcare Service $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 58.00 $ 695.96

Electricity $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 682.82 $ 8,193.79

Coffee Machine Lease $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 88.05 $ 1,056.56

Sundries $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 4,410.00

Marketing Budget $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 459.38 $ 5,512.50

Vending Machine $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 143.33 $ 1,719.90

Accounting Fees $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 45.94 $ 551.25

Bank Charges $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 438.20 $ 5,258.36

Volunteer costs $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 91.88 $ 1,102.50

Repairs and Maintenance $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75 $ 183.75

$ 2,205.00

Staff Costs $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 6,759.38 $ 81,112.50

Office and Stationary $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 367.50 $ 4,410.00

$ -

TOTAL $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28

$ 132,495.34

July2013

Aug2013

Sept2013

Oct2013

Nov2014

Dec2013

Jan2014

Feb2014

March2014

Apr2014

May2014

June2014

TOTAL

TOTAL PAYMENTS $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 13,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28 $ 11,041.28

$ 134,495.34

TOTAL INCOME $ 60,950.42 $ 10,950.42 $ 18,200.42 $ 18,200.42 $ 13,450.42 $ 22,150.42 $ 22,200.42 $ 13,450.42 $ 23,150.42 $ 18,150.42 $ 10,950.42 $ 10,950.42

$ 242,755.00

Surplus (Deficit) $ 49,909.14 $ (90.86) $ 7,159.14 $ 7,159.14 $ 409.14 $ 11,109.14 $ 11,159.14 $ 2,409.14 $ 12,109.14 $ 7,109.14 $ (90.86) $ (90.86)

$ 108,259.66

Opening Balance $ 42,601.68 $ 92,510.82 $ 92,419.96 $ 99,579.10 $ 106,738.23 $ 107,147.37 $ 118,256.51 $ 129,415.65 $ 131,824.79 $ 143,933.93 $ 151,043.06 $ 150,952.20

$ 42,601.68

Closing Balance $ 92,510.82 $ 92,419.96 $ 99,579.10 $ 106,738.23 $ 107,147.37 $ 118,256.51 $ 129,415.65 $ 131,824.79 $ 143,933.93 $ 151,043.06 $ 150,952.20 $ 150,861.34

$ 150,861.34

Cashflow Budget 2013 - 2014

2012May - June

2013July -June

2014July -June Assumptions

CAPITAL EXPENSES $ 12,700.00 $ 37,790.00 $ 2,000.00

RECEIPTS 2012 2013 2014

Admission $ 4,000.00 $ 40,000.00 $ 40,000.00 Based on 1,000 visitors for May - June 2012, 10,000 visitors in 2013 and 10,000 visitors in 2014. $5 admission each for adults, and $3 for kids. Ratio = 1 child:1 adult, this makes the average cost $4 per person

Council Contribution $ 20,000.00 $ 50,000.00 $ 50,000.00 Council to contribute $20,00 at project inception and $50,000 per year from then on

Merchandise $ - $ 12,500.00 $ 12,500.00 Merchandise sales - based on $5 RRP with a profit margin of $2.50 per item. Also these figures are based on 50% of the 10,000 visitors purchasing mechandise

Venue Hire $ 330.00 $ 1,872.00 $ 1,872.00 Average of 3 hours per venue hire, allowing for 1 venue hire per month at $52 per hourWorkshops $ - $ 2,500.00 $ 2,500.00 This figure is based on 10 people attending each workshop. Also 10 workshops to be held each year. Costs are $10 per person + Cost of hiring trainer = $250 profit per w/shopTour of Exhibition $ - $ 20,000.00 $ 20,000.00 Flat fee of $2000. Conduct 10 tours a yearCartoon sales commission $ - $ 315.00 $ 472.50 9 prints sold per year @ $175.00. Keep 30% commission. (Note 2013 figure based on 9 months of the year) (See Appendix 7)Awards $ - $ 5,000.00 $ 5,000.00 $20,000 income from sponsorship, door sales, entry fees, costs are $10,000 prize money and $5,000 operating budget, leaving $5000 profit per yearCafé Sales $ 2,266.67 $ 17,000.00 $ 17,000.00 Coffee and tea is based on the assumption that 70% of customers will purchase tea or coffee ($2 profit margin). Also Cake is based on 15% of customers purchasing cake ($2 profit margin)Membership $ - $ 5,600.00 $ 6,000.00 Target is to gain 5000 members by the end of 5 years. Membership cost is $10.00 at start of membership. Allowed for 560 new members in 2013 and 600 in 2014Sponsorships $ - $ 1,500.00 $ 1,500.00 Based on 30 Bronze sponsorships each year at $50 eachVending Machine $ - $ 3,000.00 $ 3,000.00 Based on the assumption theat only 20% of the customers will purchase a cold drink from the vending machine (profit per drink of $1.50)Donation $ - $ 3,800.00 $ 3,800.00 Donations from the community

TOTAL $ 26,596.67 $ 163,087.00 $ 163,644.50

FIXED COSTS 2012 2013 2014Insurance Allocation $ 444.09 $ 2,797.74 $ 2,937.62 Based on 2011 costs and a CPI increase of 5%Rates and Charges $ 821.33 $ 5,174.41 $ 5,433.13 Based on 2011 costs and a CPI increase of 5%Postage $ 329.64 $ 2,076.74 $ 2,180.57 Based on 2011 costs and a CPI increase of 5%Security $ 99.25 $ 625.26 $ 656.52 Based on 2011 costs and a CPI increase of 5%Telephone $ 348.14 $ 2,193.26 $ 2,302.92 Based on 2011 costs and a CPI increase of 5%Cleaning $ 83.33 $ 525.00 $ 551.25 Based on 2011 costs and a CPI increase of 5%Advertising $ 333.33 $ 2,100.00 $ 2,205.00 Based on 2011 costs and a CPI increase of 5%Healthcare Service $ 105.21 $ 662.82 $ 695.96 Based on 2011 costs and a CPI increase of 5%Electricity $ 1,238.67 $ 7,803.61 $ 8,193.79 Based on 2011 costs and a CPI increase of 5%Coffee Machine Lease $ 159.72 $ 1,006.25 $ 1,056.56 Estimate, includes the ongoing cost of training of baristas and maintenance of machineSundries $ 666.67 $ 4,200.00 $ 4,410.00 Budget allocation - Based on 5% of operating costsMarketing Budget $ 833.33 $ 5,250.00 $ 5,512.50 Allocated marketing budgetVending Machine $ 260.00 $ 1,638.00 $ 1,719.90 Hire of machine at $30.00 per week ref: <http://www.vend-it.com.au/hire-vend-machines.pdf>Accounting Fees $ 83.33 $ 525.00 $ 551.25 Accounting Fees, budget allocation of $1,500 allowed per yearBank Charges $ 664.92 $ 4,188.98 $ 4,398.42 0.1% of turnover allowed for bank fees and chargesVolunteer costs $ 166.67 $ 1,050.00 $ 1,102.50 Volunteer costs are $100 allowed per volunteer per yearRepairs and Maintenance $ 333.33 $ 2,100.00 $ 2,205.00 $2000 budget allocation for ongoing repairs and maintenanceStaff Costs $ 6,250.00 $ 77,250.00 $ 81,112.50 One manager on contract for $75,000 with 3% wage increase per yearOffice and Stationary $ 666.67 $ 4,200.00 $ 4,410.00 Allocated buget based on previous year. Allowed for an additional 5% increase every year

TOTAL $ 13,887.63 $ 125,367.05 $ 131,635.40

TOTAL PAYMENTS $ 26,587.63 $ 163,157.05 $ 133,635.40 TOTAL INCOME $ 26,596.67 $ 163,087.00 $ 163,644.50 Surplus (Deficit) $ 9.04 $ (70.05) $ 30,009.10 Opening Balance $ - $ 9.04 $ (61.01)Closing Balance $ 9.04 $ (61.01) $ 29,948.08

Break Even Profit and Loss 2012 - 2014

May2012

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013 TOTAL

CAPITAL EXPENSES

Purchase of iPads $ - $ - $ - $ - $ 5,790 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,790

Directional Signage $ - $ 3,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,000

Rebranding Fund $ - $ - $ - $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000

Display Units $ - $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

Cartoon Yourself Lab $ - $ - $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000

Repairs and Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Resolve Copyright $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000

Website Development $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

Foyer Upgrade $ - $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

Stereo and Speakers $ - $ 1,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,500

Internal 3D Displays $ - $ - $ 10,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 10,000

Staff Shirts $ 1,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,000

EFTPOS Setup $ 200 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200

Cartoon Lab Fitout $ - $ - $ - $ 3,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,000

Fitout Childrens Area $ - $ - $ - $ 5,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000

External Upgrades $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

TOTAL $ 3,200 $ 9,500 $ 22,000 $ 10,000 $ 5,790 $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ 50,490

RECEIPTS May2014

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

Admission $ 2,000 $ 2,000 $ 800 $ 1,000 $ 5,500 $ 5,000 $ 2,250 $ 6,500 $ 5,500 $ 2,000 $ 4,500 $ 4,100 $ 1,600 $ 1,250 $ 44,000

Council Contribution $ 20,000 $ - $ 50,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 70,000

Merchandise $ - $ - $ 250 $ 313 $ 1,719 $ 1,563 $ 703 $ 2,031 $ 1,719 $ 625 $ 1,406 $ 1,281 $ 500 $ 391 $ 12,500

Venue Hire $ 165 $ 165 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 2,202

Workshops $ - $ - $ - $ 250 $ 250 $ 250 $ 500 $ 500 $ - $ 500 $ 250 $ - $ - $ 2,500

Tour of Exhibition $ - $ - $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 20,000

Cartoon sales commission $ - $ - $ - $ - $ - $ - $ - $ - $ 53 $ 53 $ 53 $ 53 $ 53 $ 53

$ 315

Awards $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000 $ - $ - $ - $ 5,000

Café Sales $ 1,133 $ 1,133 $ 340 $ 425 $ 2,338 $ 2,125 $ 956 $ 2,763 $ 2,338 $ 850 $ 1,913 $ 1,743 $ 680 $ 531 $ 19,267

Membership $ - $ - $ - $ - $ 560 $ 560 $ 560 $ 560 $ 560 $ 560 $ 560 $ 560 $ 560 $ 560 $ 5,600

Sponsorships $ - $ - $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 1,500

Vending Machine $ - $ - $ 60 $ 75 $ 413 $ 375 $ 169 $ 488 $ 413 $ 150 $ 338 $ 308 $ 120 $ 94 $ 3,000

Donation $ - $ - $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 3,800

TOTAL $ 23,298 $ 3,298 $ 53,714 $ 4,077 $ 13,043 $ 12,137 $ 7,152 $ 15,106 $ 13,346 $ 6,502 $ 16,533 $ 10,558 $ 5,777 $ 5,142 $ 189,684

Break Even Cashflow Budget 2012 - 2013

FIXED COSTS May2014

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

Insurance Allocation $ 222 $ 222 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 233 $ 3,242

Rates and Charges $ 411 $ 411 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 431 $ 5,996

Postage $ 165 $ 165 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 173 $ 2,406

Security $ 50 $ 50 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 725

Telephone $ 174 $ 174 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 183 $ 2,541

Cleaning $ 42 $ 42 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 608

Advertising $ 167 $ 167 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 2,433

Healthcare Service $ 53 $ 53 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 768

Electricity $ 619 $ 619 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 9,042

Coffee Machine Lease $ 80 $ 80 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 84 $ 1,166

Sundries $ 333 $ 333 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 4,867

Marketing Budget $ 417 $ 417 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 438 $ 6,083

Vending Machine $ 130 $ 130 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 137 $ 1,898

Accounting Fees $ 42 $ 42 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 $ 608

Bank Charges $ 332 $ 332 $ 349 $ 349 $ 349 $ 349 $ 349 $ 349 $ 349 $ 349 $ 349 $ 349 $ 349 $ 349 $ 4,854

Volunteer costs $ 83 $ 83 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 1,217

Repairs and Maintenance $ 167 $ 167 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 175 $ 2,433

Staff Costs $ 3,125 $ 3,125 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 6,438 $ 83,500

Office and Stationary $ 333 $ 333 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 350 $ 4,867

$ - TOTAL $ 6,944 $ 6,944 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 139,255

May2014

June2012

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

TOTAL PAYMENTS $ 10,144 $ 16,444 $ 32,447 $ 20,447 $ 16,237 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447 $ 10,447

$ 189,745

TOTAL INCOME $ 23,298 $ 3,298 $ 53,714 $ 4,077 $ 13,043 $ 12,137 $ 7,152 $ 15,106 $ 13,346 $ 6,502 $ 16,533 $ 10,558 $ 5,777 $ 5,142

$ 189,684

Surplus (Deficit) $ 13,155 $ (13,145) $ 21,267 $ (16,370) $ (3,194) $ 1,690 $ (3,295) $ 4,658 $ 2,898 $ (3,945) $ 6,086 $ 111 $ (4,670) $ (5,305)

$ (61)

Opening Balance $ - $ 13,155 $ 9 $ 21,276 $ 4,906 $ 1,712 $ 3,401 $ 106 $ 4,765 $ 7,663 $ 3,718 $ 9,803 $ 9,914 $ 5,244

$ -

Closing Balance $ 13,154.5 $ 9.0 $ 21,276.1 $ 4,905.7 $ 1,711.5 $ 3,401.1 $ 106.3 $ 4,764.6 $ 7,663.0 $ 3,717.5 $ 9,803.4 $ 9,914.2 $ 5,243.8 $ (61.0)

$ (61)

Break Even Cashflow Budget 2012 - 2013

July2013

Aug2013

Sept2013

Oct2013

Nov2014

Dec2013

Jan2014

Feb2014

March2014

Apr2014

May2014

June2014 TOTAL

CAPITAL EXPENSES

Purchase of iPads $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Directional Signage $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Rebranding Fund $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Display Units $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Cartoon Yourself Lab $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Repairs and Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Resolve Copyright $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Website Development $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Foyer Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Stereo and Speakers $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Internal 3D Displays $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Staff Shirts $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

EFTPOS Setup $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Cartoon Lab Fitout $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Fitout Childrens Area $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

External Upgrades $ - $ - $ - $ - $ 2,000.00 $ - $ - $ - $ - $ - $ - $ - $ 2,000

TOTAL $ - $ - $ - $ - $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ 2,000

RECEIPTS July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

Admission $ 800 $ 1,000 $ 5,500 $ 5,000 $ 2,250 $ 6,500 $ 5,500 $ 2,000 $ 4,500 $ 4,100 $ 1,600 $ 1,250 $ 40,000

Council Contribution $ 50,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 50,000

Merchandise $ 250 $ 313 $ 1,719 $ 1,563 $ 703 $ 2,031 $ 1,719 $ 625 $ 1,406 $ 1,281 $ 500 $ 391 $ 12,500

Venue Hire $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 1,872

Workshops $ - $ 250 $ 250 $ 250 $ 500 $ 500 $ - $ 500 $ 250 $ - $ - $ 2,500

Tour of Exhibition $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 1,667 $ 20,000

Cartoon sales commission $ - $ - $ - $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 473

Awards $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000 $ - $ - $ - $ 5,000

Café Sales $ 340 $ 425 $ 2,338 $ 2,125 $ 956 $ 2,763 $ 2,338 $ 850 $ 1,913 $ 1,743 $ 680 $ 531 $ 17,000

Membership $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 6,000

Sponsorships $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 1,500

Vending Machine $ 60 $ 75 $ 413 $ 375 $ 169 $ 488 $ 413 $ 150 $ 338 $ 308 $ 120 $ 94 $ 3,000

Donation $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 317 $ 3,800

TOTAL $ 54,214 $ 4,577 $ 12,983 $ 12,129 $ 7,145 $ 15,098 $ 13,286 $ 6,442 $ 16,473 $ 10,498 $ 5,717 $ 5,082 $ 163,645

Break Even Cashflow Budget 2013 - 2014

FIXED COSTS July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

Insurance Allocation $ 245 $ 245 $ 245 $ 245 $ 245 $ 245 $ 245 $ 245 $ 245 $ 245 $ 245 $ 245 $ 2,938

Rates and Charges $ 453 $ 453 $ 453 $ 453 $ 453 $ 453 $ 453 $ 453 $ 453 $ 453 $ 453 $ 453 $ 5,433

Postage $ 182 $ 182 $ 182 $ 182 $ 182 $ 182 $ 182 $ 182 $ 182 $ 182 $ 182 $ 182 $ 2,181

Security $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 657

Telephone $ 192 $ 192 $ 192 $ 192 $ 192 $ 192 $ 192 $ 192 $ 192 $ 192 $ 192 $ 192 $ 2,303

Cleaning $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 551

Advertising $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 2,205

Healthcare Service $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 696

Electricity $ 683 $ 683 $ 683 $ 683 $ 683 $ 683 $ 683 $ 683 $ 683 $ 683 $ 683 $ 683 $ 8,194

Coffee Machine Lease $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 1,057

Sundries $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 4,410

Marketing Budget $ 459 $ 459 $ 459 $ 459 $ 459 $ 459 $ 459 $ 459 $ 459 $ 459 $ 459 $ 459 $ 5,513

Vending Machine $ 143 $ 143 $ 143 $ 143 $ 143 $ 143 $ 143 $ 143 $ 143 $ 143 $ 143 $ 143 $ 1,720

Accounting Fees $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 551

Bank Charges $ 367 $ 367 $ 367 $ 367 $ 367 $ 367 $ 367 $ 367 $ 367 $ 367 $ 367 $ 367 $ 4,398

Volunteer costs $ 92 $ 92 $ 92 $ 92 $ 92 $ 92 $ 92 $ 92 $ 92 $ 92 $ 92 $ 92 $ 1,103

Repairs and Maintenance $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 184 $ 2,205

Staff Costs $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 6,759 $ 81,113

Office and Stationary $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 4,410

$ -

TOTAL $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 131,635

July2012

Aug2012

Sept2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar2013

April2013

May2013

June2013

TOTAL

TOTAL PAYMENTS $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 12,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970 $ 10,970

$ 133,635

TOTAL INCOME $ 54,214 $ 4,577 $ 12,983 $ 12,129 $ 7,145 $ 15,098 $ 13,286 $ 6,442 $ 16,473 $ 10,498 $ 5,717 $ 5,082

$ 163,645

Surplus (Deficit) $ 43,245 $ (6,393) $ 2,013 $ 1,160 $ (5,825) $ 4,128 $ 2,316 $ (4,528) $ 5,503 $ (472) $ (5,253) $ (5,887)

$ 30,009

Opening Balance $ (61) $ 43,184 $ 36,791 $ 38,804 $ 39,964 $ 34,139 $ 38,268 $ 40,584 $ 36,056 $ 41,560 $ 41,088 $ 35,835

$ (61)

Closing Balance $ 43,183.7 $ 36,790.9 $ 38,804.4 $ 39,964.1 $ 34,139.4 $ 38,267.9 $ 40,583.9 $ 36,056.1 $ 41,559.6 $ 41,088.0 $ 35,835.2 $ 29,948.1

$ 29,948

Break Even Cashflow Budget 2013 - 2014

! 97

12 - Appendices

Appendix 1 Restrictions As To User

Appendix 2 City Services Committee Report, 17th August, 2006

Appendix 3 Correspondence CHCC, BGI, and Rotary

Appendix 4 Public Private Partnership Case Studies

Appendix 5 Centennial Oval Woolgoolga

Appendix 6 Stakeholder Engagement Summary of Core Findings

Appendix 7 Pricing Of Cartoon Works For Commercial Sale

Appendix 8 Charitable Trust Deed Sample

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CITY SERVICES COMMITTEE 17 AUGUST 2006 - 53 -

S55 BUNKER CARTOON GALLERY

Purpose: To report to Council on the Bunker Cartoon Gallery and the permanent cartoon collection. Description of Item: In December 2005 Council resolved that:

1. Council agrees in principle to assuming the responsibility and operations of the Bunker Cartoon Gallery, its contents and its permanent collection.

2. A report be presented to Council which outlines the specific details of this proposal

including legal actions required, staffing implications and timeframes for this changeover. 3. Council agrees in principle to the establishment of one body to advise on the future

development of the Bunker Cartoon Gallery and the Museum and the report referred to in recommendation 2 will include a proposal as to the nature, make up, roles and responsibilities and functions of this committee.

A number of events occurred after this which need to be addressed by Council. They include that the Regional Gallery Director left the employment of Council very unexpectedly soon after this time. A decision was taken to replace this position with a position which has responsibility for the Regional Gallery, the Museum and the Bunker Cartoon Gallery. That position has now been filled and the issues regarding the Bunker Gallery are able to be addressed. Sustainability Assessment: �� Environment

This proposal has no environmental impacts.

�� Social Council assuming responsibility for the Bunker Cartoon Gallery and Cartoon collection further advances Council's new vision of the healthy city, the smart city, the cultural city.

�� Economic

Broader Economic Implications Council assuming responsibility will ensure the ongoing operations of a valuable community, cultural facility. Management Plan Implications At this stage the management plan implication is not fully known. However, there is likely to be additional funds required for valuing the collections. This issue is addressed later in the report.

Cont'd

Rotary Cartoon Collection Handover Documentation Page 18

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CITY SERVICES COMMITTEE 17 AUGUST 2006 - 54 -

S55 - Bunker Cartoon Gallery (Cont'd) Consultation: Consultation has occurred with the current Board of the Bunker Cartoon Gallery, the Rotary Club of Coffs Harbour who currently own the collection and various Council staff. Related Policy and / or Precedents: There are no specific policies or precedents related to this matter although Council has in the past assumed responsibilities for community based facilities like the Cartoon Gallery. Statutory Requirements: There are no specific statutory requirements in regard to this proposal. Issues: COLLECTION The Rotary Club of Coffs Harbour currently owns the Cartoon Collection. The Rotary Club has written to Council indicating that it intends to 'gift' to Council, and therefore the Coffs Harbour community, the collection. Representatives from Rotary have indicated that it is intending to formally handover the collection in late August. The issues associated with this include: �� Insurance - For appropriate insurance coverage to be in place a full valuation should be

undertaken. The Gallery/Museum Director/Curator advises that this would be a very specialised field and costly to obtain. As an alternative and much less costly process, Council could opt to have the caricatures and award winning cartoons only valued. This is a much smaller number and then and an educated best guess could be made on the balance. At the moment Council has artworks insurance at the Bunker Cartoon Gallery for $92,000.

�� Cataloguing - A process has been commenced by the Bunker Gallery using trained

volunteers to catalogue, photograph (digitally) and report on the condition of the entire collection. This process will need to continue so as to ensure a complete and comprehensive record is developed of the collection.

�� Storage - Currently as the items are catalogued they are appropriately packaged and stored

in purpose built storage at the Bunker Cartoon Gallery. BUILDING Background Council's Property Manager advised that: "The original lease proposal was negotiated with John Champion (now deceased) and commenced as from 24 April 1996. The proposal was for a lease term of five years plus a five year option with rental to be $2 per annum.

Cont'd

Rotary Cartoon Collection Handover Documentation Page 19

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CITY SERVICES COMMITTEE 17 AUGUST 2006 - 55 -

S55 - Bunker Cartoon Gallery (Cont'd) Although we pursued the lessee to execute and return lease documentation, execution was never completed. Promises were made regarding execution of the documents but this never occurred. Community service obligation reasons during the original lease period and the renewal period meant that documents were never executed but the lessee was permitted to remain in occupation. As such the "lessee" organisation (Bunker Cartoon Gallery Inc) occupies the premises without any formal leasing agreement and therefore Council can regain possession of the premises. It was also originally intended that the lessee would be responsible for payment of Council rates. However, the lessee has not made such payments and therefore Council paid this outgoing. In addition, Council has, over the years, contributed significantly to the continuing operation of this facility. Apart from the subsidy payments made to assist with ongoing operational expenses, painting and lighting upgrade works, as well as a major rejuvenation of drainage and leak-proofing works to overcome water leakage problems have been undertaken." Issues Council's Property Manager also raised the following issue: "Housing the cartoon collection when Rotary formally hands it over to Council at the Bunker Cartoon Gallery makes sense. However, this would result in a similar situation that arose with control of artifacts, exhibits etc at the Coffs Harbour Museum. There would be a situation where community representatives/volunteers were left in control of a valuable Council (community) owned asset. It would appear that it will be necessary to ensure that there is a Council officer responsible for the collection, with the appropriate level of responsibility to ensure the security and integrity of the collection is fully maintained for the benefit of the community. Failure to ensure this level of management and protection for the collection could place Council in a position where it would likely suffer potential liability issues, as well as lose its standing of high integrity with regard to its custody of cultural items." The staffing requirements for the Bunker will, in the short term at least, be undertaken within existing staff allocations. A proposal has also been put forward that all current 'cultural' committees be disbanded and an alternative committee structure be considered by Council. This, along with other cultural matters, will be the subject of a future report to Council. This report is likely to recommend extensive community consultation regarding the proposals. It will also consider the most appropriate advisory structure for the Bunker. ROLE OF CURRENT BOARD It is proposed that prior to Council considering the cultural committee structure that the attached Roles and Responsibilities be adopted for the committee of the Bunker Cartoon Gallery. Implementation Date / Priority: It is proposed for Council to assume responsibility for the Bunker Cartoon Gallery from 1 September 2006.

Cont'd

Rotary Cartoon Collection Handover Documentation Page 20

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CITY SERVICES COMMITTEE 17 AUGUST 2006 - 56 -

S55 - Bunker Cartoon Gallery (Cont'd) The Rotary Club of Coffs Harbour plan to officially hand over the collection to Council at a function on 26 August 2006. Recommendation: 1. That Council assume responsibility for the Bunker Cartoon Gallery from 1 September

2006. 2. That Council accepts on behalf of the community the Bunker Cartoon Collection. 3. That the structure for community input for the future development of the facility be the

subject of a future report to Council. 4. That in the interim, the attached Roles & Responsibilities be adopted for an advisory

body. 5. That investigation into the costs associated with valuation of the collection be further

investigated. Geoff Newton Director of City Services (Acting)

Rotary Cartoon Collection Handover Documentation Page 21

- 57 -

Attachments:

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%./012(342566/(7488129(*:;<=629(36>><5511(((

POSSIBLE COMMITTEE ROLES AND RESPONSIBILITIES �� To act in an advisory body to Council on issues relating to the Bunker Cartoon Gallery. �� To advise on a strategic plan for the economic development including sources of funding for

the Bunker Cartoon Gallery and to provide ongoing advice on issues related to this economic development.

�� To facilitate communication between Council and the community in relation to the

development of the facility. �� To provide effective support to staff and general advice that ensures the continued success

of the Bunker Cartoon Gallery. �� To facilitate the provision of information as requested by Council. �� To advise Council on future capital works programs. �� Facilitate Annual Cartoon Competition in collaboration with Coffs City Rotary Club. �� Manage income from sources outside Coffs Harbour City Council (e.g., entry fees and

sponsorship) in accordance with Strategic Plan. �� Provide input to management of Coffee Shop. POSSIBLE COUNCIL ROLES AND RESPONSIBILITIES �� Day to day operations of the Bunker Cartoon Gallery. �� Maintain and repair Bunker Cartoon Gallery buildings. �� Own and maintain the Coffs Harbour City Rotary Club Cartoon Collection. �� To approve budget allocations and expenditure. �� To develop, with input from the Committee, long term strategic plan for the Bunker Cartoon

Gallery.

Rotary Cartoon Collection Handover Documentation Page 22

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Rotary Cartoon Collection Handover Documentation Page 1

14th June, 2005

Mr Henry LourensPresidentRotary Club of Coffs Harbour CityPO Box 570Coffs Harbour NSW 2450

Dear Henry

Re: Bunker Cartoon Gallery

The Board of the Bunker Cartoon Gallery is presently reviewing all aspects of its operations,including its relationships with Coffs Harbour City Council and Coffs Harbour City Rotary Club.

At the outset, I should indicate that the Board of the Gallery is appreciative of the supportoffered by the Rotary Club and wishes the relationship to continue and to prosper.

In the context of the relationship with the Rotary Club, and indeed the City Council, the futureownership of the Cartoon collection was discussed. The aunker Gallery Board is of the view thatmuch would be gained if the ownership of the collection were transferred to the Coffs HarbourCity CounCil and be administered and maintained through the Bunker Cartoon Gallery. If thecollection were in the Ownership of the City Council, it would facilitate the opportunity for theGallery to secure additional grant monies and establish the Gallery as an integral component inthe overall cultural development of the City.

The Board recognises that the Rotary Cartoon competition sponsored by your Club is a significantevent, and the collection built up over many years is a substantial asset, both in cultural andfinancial terms, to your Club. This would certainly be acknowledged in future negotiations.

The Board Is mindful, however, of the need to ensure that the Bunker Cartoon Gallery continuesto be a viable entity, and believes that the transfer of the collection is a key element in securingthe future of the Gallery. It also leaves open the opportunity for the competition to beadministered in the future through the Bunker Cartoon Gallery in collaboration with your Club.

The Board would, therefore, much appreciate your Club's consideration of this suggestion.would be happy to discuss personally with you and the Club, should you wish.

Yours sincerely

Warren Grimshaw AMPresidentBunker Cartoon Gallery Board

Rotary Cartoon Collection Handover Documentation Page 2

Rotary Cartoon Collection.

The members of the committee appointed to consider the suggestion from thePresident of the Bunker Cartoon Gallery (Warren Grimshaw) that the CartoonCollection be transferred to the City Council, to be administered andmaintained through the Bunker Cartoon Gallery, met with Warren on the 15th

July 2005.

Warren outlined in detail the reasons for the suggestion. Basically it is theneed for the Gallery to obtain additional funding in order to be able to continueoperating. The ownership by the City of the collection may qualify the Galleryfor access to Government Funding.

As a result of that meeting the committee will recommend to the Board :-

A meeting be held with the City Council and an offer be made to transfer theCartoon Collection to the Council, subject to certain provisions, these beingconsidered necessary to safeguard the Collection for the future.The provisions would include that the contribution of the Rotary Club of CoffsHarbour City Inc. to the Cartoon Collection should be perpetuated byrecognition at every possible opportunity.The property in the Cartoon Collection be passed on to the Council on theCouncils unequivocal undertaking that it will not part with that property andthat the collection and all additions to it will remain in Coffs Harbour, beavailable to the Rotary Club of Coffs Harbour City, and be available to theviewing public on reasonable conditions.If for any reason, whatsoever, the Council may no longer wish to own theCollection, the ownership shall revert to the Rotary Club of Coffs Harbour City.An appropriate document would be drawn up to incorporate the provisions.

It is intended that the Cartoon Competition, now in its seventeenth year,continue to be held and managed by the Club.The Club should engage the services of an appropriate consultant to preparea presentation for submission to possible major sponsors, in order to financethe continuation of the Cartoon Competition.

Bernard Dowling.Committee Chairperson.

16th July 2005

The Board of the Rotary Club held a Special Meeting 24/8/05 to furtherconsider this matter.

This recommendation was moved and adopted, but with the followingamendments,

Delete "remain in Coffs Harbour" and substitute" be based in Coffs Harbour"

Add" Council to implement an Asset Management Programme in respect tothe Cartoon Collection."

Rotary Cartoon Collection Handover Documentation Page 3

CELEBRATERQTARY

12 Augu'l 2005

ftUI GI Y L.IUIJ or·Coffs Harbour City Inc.ABN 92 963 118 216 Di.trict 9659

P.D. BOl( 570, Coffs Harbour NSW 2450 Australia

l1enry LourensPhone: 0NJ 02 6650 3300

(H) 02 6656 1970Fax: 02 6656 2177

Secretary: Geoff KnightPhOne: 0N) 02 6652 1088

(H) 0268523710FiilX: 026651 9008Email: realastateeas\@bi9Pond.com

The PresidentBunker Cartoon Gallery BoardCoff. Harbour

Atm Warren GriJnshaw

Door Wmen

Ik Bunker Cartoon Collection and Awards

Following the club's board meeting On 10" August I llm writing to inform you ofthe club'. position,

This is a sensitive issue inVolving ownership ofa considerable asset and one thot ooncerns many ofourmembets. We intend to fully investigate the future ofthe Awards and the cartoon collection and will bedoing this as a maller orpriority over ihe eomlng nlOnths.

We do not wish to lDlIke a futi, decioion without all avenues and oppOltllomeB to keep this as aclub pr<ijcct, ' ,

We wiII,notifY you .. Qurfinal position when it becomes clear.

:President'RC ofCom;Hlirbout City.' '..

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Rotary Cartoon Collection Handover Documentation Page 4

ROTARY CARTOON COMPETITION AND CARTOON COLLECTION.BOARiS-.----------

The intention of the Club was to conduct a Cartoon Competition in order toraise funds to be used for Rotarv Charitip's,promolp. B18r.k and \/\/hitR Art andacquire a cartoon collection Inat ultimately would be given to the City.

The Cartoon Competition was also the means to provide cartoons forexhibition in the Bunker Cartoon Gallery, The gallery, a derelict bUilding hadbeen a major restoration project by the Club.

Fund raising was achieved by touring the cartoons that had been entries inthe competition, to various shopping centres in all States, with the assistanceof other Rotary Clubs and free road and air transportation. Proof of thesuccess of this project is evidenced by the present financial position of theCartoon Accounts. Credit balance $36,900.

The cartoons have not been toured for some years due to the loss of the freeprovision of road and air transportation.

The Cartoon Competition has continued to be held,each year and this yearwill be its 1yth year. Financial sponsorship has been provided by Park BeachPlaza. Last year Park Beach Plaza reduced its sponsorship from $25,000 to$15,000 and advised that it would not continue to sponsor the competition.

The Club is not able to tour the cartoons and raise funds to the extent that thiswas done in tile past.

The cost of conducting the competition last year totalled $13,069.90. withsome administration costs being met by our sponsor. It is anticipated that thetotal cost to conduct the competition this year, without sponsorship will be$1"1,000. Sponsorship is being sought at present,locally, seeking an individualsponsor for each of the eight competition categories.

The Cartoon Collection is stored at thfJ Bunker Cartoon Gallery. The presentstorage provisions are not ideal but steps me being taken to rectify this. Forthe collection to be preserved for tile future, archival standard storage isnecessary There would be over 10,000 pieces in the collection and whilst allwould not be of value, a cartoonist would consider a cartoon to be worth about$200.

If the Board were to agree to the request from the Bunker Cartoon GalleryBoard, it is suggested that the agreement should be made with certainprovisions.Those provisions should refer to the following:-

The future of the Cartoon Competition. The maintenance of the WebPage, rental and name registratioll. Acknowledgement of the Club asthlc) sponsor

Rotary Cartoon Collection Handover Documentation Page 5

The provision of storage for equipment associated with exhibitions.

A satisfactory arrangement for a share in any income derived from cartoonsacquired from competitions. Such funds to be used for Hotary Charities.

Special publicity and a formal presentation of the Cartoon Collection to theCity.

The Silver Stanley Award, whilst remaining at the Gallery, be acknowledgedas the property of the Rotary Club.

There would be other matters to be dealt with. Possibly a small committee toarrange a satisfactory handover/takeover

Funds at present in the Rotary Cartoon accounts would be retained by Rotary.

Sale of items at present in storage but not required, proceeds to be retainedby Rotary.

The Rotary Club to have a representative on the Board of the Bunker CartoonGallery

Bernard Dowling.Cartoon Competition Organiser 2005.21/6/05

Rotary Cartoon Collection Handover Documentation Page 6

p.a. Box 670, Coffs Harbour l\ISVV 2t:]SO! ( ,

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,till September 20051111; III I n, !f )' Jl11 If, '; I'

I )ear a/Tell

The RrJlmy Club ot'Coll's Itarbolll City held and cXllUrJll..hnlllY bmHd nn :.>\11;lo reach a decision on the cartoon collection.

Ancr cldJ,tte, <.kcision ...... ('1$ taken that the coJJecJior: I::: Cuff,,! !;Hhuu! Cil'.' Cmlflc,iladministered and maintained through the Bunker (jaller\

The Board, by majorilY vote, Imsagrced to transfer the cartoon CO!lcC!lOl1 t h ;_: !hrboU'('oullci I with provisions to the collection 1(.)1' the Ji Iture ill ;!<T()['(I \ViI h Bl'rl1:ml I)(lwlill.!.! . :-: lcl I('Idated \(/1> July JOO."

By doing so, wc the board understand that this will assist the Gallery obluinill,\!; additional il;ndin[!continue viilble opcmtioll. Further, transfer of ownership ol'the collection to the city orCo!1s Ilarbour mavqualif\' the Gallery for to Government fimding

We wish YOll much succ.ess \Varren in fiJture endeavours This is womkr Ji.l! li.:t: ('olh I !,u buur ;wdthe Board and club mcmbers plcdge our support to cnsure that it COllliIlUCS.

Yours sincerely

/0-..

;=Ci(cg SlaterI>residcntRC ofCofls Harbour City

Rotary Cartoon Collection Handover Documentation Page 7

COftS 1I,\l\UOUH.N't'" U"O'\II\

10l" October, 2005

Mr Steve SawtellA/General ManagerCoffs Harbour City CouncilLocked Bag 155Coffs Harbour NSW 2450

Dear Steve

The Bunker Cartoon Gallery Inc.P.O. Box 2.7•. Coff. Harbour NSW 2.50

Phone: (066) 517343

Re: Future of the Bunker Cartoon Gallery

Thank you for your interest in the future development of the Bunker Cartoon Gallery. This ismuch appreciated.

You may remember that in discussions with you, the possibility of the Bunker Gallery becoming aCommittee of Council was canvassed, along with the possibility of the Director of the BunkerCartoon Gallery also undertaking duties in support of the Historical Museum. The issue of futurearrangements in relation to the Rotary Cartoon Collection was also canvassed.

In this regard, I enclose copy of correspondence from the President of the Rotary Club of CoffsHarbour City Inc., along with an attachment relating to the decisions of the Club in this regard.

This proposal was followed up with your officers at a meeting on 20th September, 2005. Thismeeting was a productive one, but a number of questions remained unanswered, including therole of the Bunker Cartoon Gallery Board under the proposed arrangements. Also, there was thequestion of ongoing administrative support to assist in the ongoing development of the Bunkerand the Historical Museum.

The Board of the Bunker Cartoon Gallery at its meeting of 6th October, 2005 indicated its wish topursue the matter, but was concerned about detail of arrangements that might result,particularly that in regard to the ongoing viability of the Bunker as a cultural entity ofsignificance in Coffs Harbour.

The Board believes that if the Bunker is to be successful in terms of its mission, its Board needsto have ongoing responsibilities as follows:

1. A capacity to advise the Gallery Director on the future development of the Bunker and toestablish appropriate accountabilities in this regard. This would include:

a. the overall exhibition program;b. relationship with outside organisations and with other galleries;c. the maintenance of the collection.

Rotary Cartoon Collection Handover Documentation Page 8

2. Responsibility for budget controls and the development of sources of funding to supportthe ongoing development of the Bunker Gallery.

3. The maintenance and appearance of the Gallery and potential future capital works.

In advancing this general statement for consideration, the Board is conscious that, as a Councilemployee, the Director would be responsible to the General Manager of the Council for the goodconduct of the Gallery and the overall funding of the Gallery by Council.

Another issue raised at the meeting relates to the ongoing support of the Historical Museum. Asindicated, the Board supports this initiative, but at the same time remains conscious of the needto have effective oversight of the volunteers, the ongoing work relating to the setup anddismantling of exhibitions, and the need to have effective communication services with theoutside world, particularly telephone, email, fax and the like.

An appointment of an administrative officer would seem to be an essential component of anynew arrangements involving the Historical Museum. This administrative officer could be sharedbetween the two institutions. For example, the administrative officer could be present at theBunker when the Director is at the Historical Museum, and vice versa

The Board believes that it is important to have an understanding of the future directions and theongoing funding support that will be forthcoming from Council. You will be aware of thesignificant overheads involved in the operation of the Gallery. These are detailed in thefinancial statements attached.

Finally, the Board needs to consider the future of the Annual Cartoon competition sponsored byCoffs Harbour City Rotary. This is a source of the continuing enhancement of the collection, anda significant event for the Coffs Harbour community. It may well be appropriate that in futureyears the competition be organised, funded and supported by the Bunker Cartoon Gallery Boardin collaboration with the Coffs Harbour City Rotary Club.

I trust this is helpful in your consideration of these important issues in what is a significantcultural asset to Coffs Harbour and the region.

I look forward to further pursuing this matter with you.

Yours sincerely

Warren Grimshaw AMPresidentBunker Cartoon Gallery Board

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Rotary Cartoon Collection Handover Documentation Page 10

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Rotary Cartoon Collection Handover Documentation Page 11

Rotary Cartoon Collection Handover Documentation Page 12

]\,"Uliat J '-...-iUJU VI2-1>8,,,\' Coffs Harbour City Inc.ABN 92 963 118216 District 9050

PO Box 570, Coffs Harbour NSW 2450 Australial-/ L! ,_

President Greg Slater.

President Elect Bill Wood.

s\21 June 2006.Mr Warren Grimshaw AM.PresidentBunker Cartoon Gallery Board.P.O.Box 2474Coffs Harbour NSW 2450.

Dear Warren,

Further to my letter 4th September 2005, wherein J advised you that

the Rotary Club had agreed to your suggestion, that the ownership of the

Cartoon Collection be transferred to the Coffs Harbour City Council, and be

administered and maintained through the Bunker Cartoon Gallery.

It is considered that an i(:eal occasion for this transfer to take place would be

at the Presentation of Awards function, for the IS"1 Cartoon Competition,

which is to be held on the 26\h August 2006 at the Gallery.

It would be appropriate for the Rotary Club to present the Collection to the

Mayor, who has accepted an invitation to be present.

It has also been decided that the Cartoon Competition, in future should be

administered through the Bunker Cartoon Gallery, in collaboration with our

Rotary Cartoon Collection Handover Documentation Page 13

Rotary Club.

We would appreciate your co-opcration to cnsure that our plans for the

transfer of this valuable asset to the City,can be achieved on the date,and in

the manner proposed.

Yours sincerely

Bill Wood.

President Elect.

Rotary Cartoon Collection Handover Documentation Page 14"';' . Cl, '£Oil. nth '13-c)

, J: J{' J)) \Ut 1nlk cc ;p'-'\\ / rat Ir (t lCD CCD ltll "J[ c& j "e IT"YAfJN 11 036390091

7 July 2006

The General ManagerCoffs Harbour City CouncilLocked Bag 155Coffs Harbour NSW 2450.

Dear Steve,

CHeeIndex' . .'-----INT REF No,----

10 JUl 2006cQF..fl.cr:r:.QJ2l::Y's.:' . ......-,---.----

-..

Bunker Cartoon Gallery

I refer to previous correspondence and discussions regarding:(a) the handover of the Rotary Club of Coffs Harbour's Cartoon COllection to theCity of Coffs Harbour, and(b) our Memorandum of Understanding relating to Coffs Harbour City Council'sassuming responsibility for the operation of the Bunker Cartoon Gallery to whichwe have received agreement in principle,

In relation to (a) above, the conditions of transfer as indicated by the Rotary Clubof Coffs Harbour City have been referred to you previously,

The Bunker Cartoon Gallery Board is anxious to conclude these matters,We seek your cooperation in resolving any outstanding issues.

To bring you up to date, I advise that the Board at its last meeting agreed toaccept the offer from The Rotary Club of Coffs Harbour City, that in future, theAnnual Cartoon Competition be administered through the Bunker CartoonGallery in collaboration with the Rotary Club. This is a positive step in the overalldevelopment of the Bunker and is consistent with the transfer of the Collection tothe City,

As you may be aware, the Awards ceremony for the annual Rotary InternationalCartoon Competition is scheduled for Saturday 26th August 2006. This is a veryprestigious ceremony attended by the "cream" of Australia's cartoonists andblack and white artists, as well, of course, by around 100 members of the CoffsHarbour community, We would like to nominate this Awards ceremony as thecelebratory occasion for the announcement of:

(a) the hand over of the cartoon collection to the City, and also(b) Coffs Harbour City Council's assuming responsibility for the Bunker

Cartoon Gallery,(c) This timing is also provides also prOVides the opportunity to celebrate the

10th Anniversary of the Bunker Gallery.

Web: www.bunkercartoongallery.com.auPhone: (02) 6651 734:;Fax: (02) 6650 0908

Email bunkergallerY@bS[;AN 1\1E0 PO Box 2474Coffs Harbour NSW 2450

Rotary Cartoon Collection Handover Documentation Page 15

As you will note from previous correspondence, one of the conditions of transferof the Collection is that the City assumes responsibility of the Bunker CartoonGallery. You may be assured of the Board's full co-operation in this regard. Weare available to discuss any outstanding issues at your convenience.I will be in touch with your office to arrange a suitable time for a meeting.

To assist your deliberations I enclose a copy of a revised MOU which might formthe basis of our discussions. We look forward to your early advice.We ask that you please progress these issues as a matter of urgency.

Yours sincerely,

.At;y,..<:- ./ A -..-u . - /ChairmanBunker Cartoon Gallery Board.

DataWorks Document Number: 1418654

Rotary Cartoon Collection Handover Documentation Page 16

POSSIBLE ROLES AND RESPONSIBILITIES

Bunker Gallery Advisol"y Committee

o To act in an advisory body to Council on issues relating to the BunkerGallery including necessary staffing requirements.

o To advise on a strategic plan for the economic development includingsourccs of funding for the Bunker Gallcry and to provide ongoing adviceon issues related to this economic development.

o To facilitate communication between Council and the community inrelation to the development of the Bunker Gallery.

o To provide effective support to staff and general advice that ensures thecontinued success of the Bunker Gallery

o To facilitate the provision of infonnation as requested by Council.o To advise Council on future capital works programs.o Conduct the Annual Cartoon Competition in collaboration with the Rotary

Club ofCoffs Harbour City.o Manage income from sources outside Coffs Harbour City Council ( ego

Entry fees and sponsorship) in accordance with Strategic Plan.o Facilitate management of Cafe.

POSSIBLE COUNCIL ROLES AND RESPONSIBILITIES

o

ooo

o

o

*

Day to day operations of the Bunker GalleryMaintain and repair the Bunker Gallery buildings.Own and maintain the Coffs Cartoon Collection.To approve budget allocations and expenditure.To develop, with input from the Committee, long term strategic plan forthe Bunker Gallery.Meet ongoing operational costs.

Establish an appropriate staffing profile in consultation with the Board.

Rotary Cartoon Collection Handover Documentation Page 17

Our Ref. I/R 145894924 August, 2006

The Board of ManagementThe Bunker Cartoon Gallery IncPO Box 2474COFFS HARBOUR NSW 2450

Dear Board Members,

Assuming Responsibility of the Bunker Cartoon Gallery by Council

Council at it's meeting of the 17 August, 2006 resolved:

"1. That Council assume responsibility for the Bunker Ca/toon Gallery from 1 September,2006.

2. That Council accepts on behalf of the community the Bunker Carioon collection.

3. That the structure for community input for tfle future development of the facility be thesUbject of a future reporl to Council.

4. That in the interim, the attached Roles and Responsibilities be adopted for an advisorybody.

5. That investigation into the costs associated with valuation of the Collection be furlherinvestigated. "

A full copy of the report is attached for your information along with the Interim Roles andResponsibilities referred to in point 4 above. In addition, Council Officers meet with Shellie Kellietoday to discuss the handover and discussed with her a Checklist of items which will ensure theprocess runs smoothly. The Checklist is also provided for your information.

There is one remaining matter which Council requires the Board's advice on to facilitate thehandover on 1 September that is clarification as to the Board's intention on the future of theincorporated body.

Council's Cultural Development Officer, Mr Malcolm McLeod, had intended on being present atyour next Board meeting to discuss these matters in person unfortunately he is not available.Consequently he has spoken to Warren Grimshaw to advise him that this letter would beforwarded through Carol Lockett for tabling and discussion at your meeting.

Please contact Malcolm on 6648 4840 after next Wednesday to arrange his attendance at yournext meeting.

Yours faithfully

Jenni EakinsManager Community ServicesJME:sgc. Encl.

! !

CITY SERVICES COMMITTEE 17 AUGUST 2006 - 53 -

S55 BUNKER CARTOON GALLERY

Purpose: To report to Council on the Bunker Cartoon Gallery and the permanent cartoon collection. Description of Item: In December 2005 Council resolved that:

1. Council agrees in principle to assuming the responsibility and operations of the Bunker Cartoon Gallery, its contents and its permanent collection.

2. A report be presented to Council which outlines the specific details of this proposal

including legal actions required, staffing implications and timeframes for this changeover. 3. Council agrees in principle to the establishment of one body to advise on the future

development of the Bunker Cartoon Gallery and the Museum and the report referred to in recommendation 2 will include a proposal as to the nature, make up, roles and responsibilities and functions of this committee.

A number of events occurred after this which need to be addressed by Council. They include that the Regional Gallery Director left the employment of Council very unexpectedly soon after this time. A decision was taken to replace this position with a position which has responsibility for the Regional Gallery, the Museum and the Bunker Cartoon Gallery. That position has now been filled and the issues regarding the Bunker Gallery are able to be addressed. Sustainability Assessment: �� Environment

This proposal has no environmental impacts.

�� Social Council assuming responsibility for the Bunker Cartoon Gallery and Cartoon collection further advances Council's new vision of the healthy city, the smart city, the cultural city.

�� Economic

Broader Economic Implications Council assuming responsibility will ensure the ongoing operations of a valuable community, cultural facility. Management Plan Implications At this stage the management plan implication is not fully known. However, there is likely to be additional funds required for valuing the collections. This issue is addressed later in the report.

Cont'd

Rotary Cartoon Collection Handover Documentation Page 18

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CITY SERVICES COMMITTEE 17 AUGUST 2006 - 54 -

S55 - Bunker Cartoon Gallery (Cont'd) Consultation: Consultation has occurred with the current Board of the Bunker Cartoon Gallery, the Rotary Club of Coffs Harbour who currently own the collection and various Council staff. Related Policy and / or Precedents: There are no specific policies or precedents related to this matter although Council has in the past assumed responsibilities for community based facilities like the Cartoon Gallery. Statutory Requirements: There are no specific statutory requirements in regard to this proposal. Issues: COLLECTION The Rotary Club of Coffs Harbour currently owns the Cartoon Collection. The Rotary Club has written to Council indicating that it intends to 'gift' to Council, and therefore the Coffs Harbour community, the collection. Representatives from Rotary have indicated that it is intending to formally handover the collection in late August. The issues associated with this include: �� Insurance - For appropriate insurance coverage to be in place a full valuation should be

undertaken. The Gallery/Museum Director/Curator advises that this would be a very specialised field and costly to obtain. As an alternative and much less costly process, Council could opt to have the caricatures and award winning cartoons only valued. This is a much smaller number and then and an educated best guess could be made on the balance. At the moment Council has artworks insurance at the Bunker Cartoon Gallery for $92,000.

�� Cataloguing - A process has been commenced by the Bunker Gallery using trained

volunteers to catalogue, photograph (digitally) and report on the condition of the entire collection. This process will need to continue so as to ensure a complete and comprehensive record is developed of the collection.

�� Storage - Currently as the items are catalogued they are appropriately packaged and stored

in purpose built storage at the Bunker Cartoon Gallery. BUILDING Background Council's Property Manager advised that: "The original lease proposal was negotiated with John Champion (now deceased) and commenced as from 24 April 1996. The proposal was for a lease term of five years plus a five year option with rental to be $2 per annum.

Cont'd

Rotary Cartoon Collection Handover Documentation Page 19

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CITY SERVICES COMMITTEE 17 AUGUST 2006 - 55 -

S55 - Bunker Cartoon Gallery (Cont'd) Although we pursued the lessee to execute and return lease documentation, execution was never completed. Promises were made regarding execution of the documents but this never occurred. Community service obligation reasons during the original lease period and the renewal period meant that documents were never executed but the lessee was permitted to remain in occupation. As such the "lessee" organisation (Bunker Cartoon Gallery Inc) occupies the premises without any formal leasing agreement and therefore Council can regain possession of the premises. It was also originally intended that the lessee would be responsible for payment of Council rates. However, the lessee has not made such payments and therefore Council paid this outgoing. In addition, Council has, over the years, contributed significantly to the continuing operation of this facility. Apart from the subsidy payments made to assist with ongoing operational expenses, painting and lighting upgrade works, as well as a major rejuvenation of drainage and leak-proofing works to overcome water leakage problems have been undertaken." Issues Council's Property Manager also raised the following issue: "Housing the cartoon collection when Rotary formally hands it over to Council at the Bunker Cartoon Gallery makes sense. However, this would result in a similar situation that arose with control of artifacts, exhibits etc at the Coffs Harbour Museum. There would be a situation where community representatives/volunteers were left in control of a valuable Council (community) owned asset. It would appear that it will be necessary to ensure that there is a Council officer responsible for the collection, with the appropriate level of responsibility to ensure the security and integrity of the collection is fully maintained for the benefit of the community. Failure to ensure this level of management and protection for the collection could place Council in a position where it would likely suffer potential liability issues, as well as lose its standing of high integrity with regard to its custody of cultural items." The staffing requirements for the Bunker will, in the short term at least, be undertaken within existing staff allocations. A proposal has also been put forward that all current 'cultural' committees be disbanded and an alternative committee structure be considered by Council. This, along with other cultural matters, will be the subject of a future report to Council. This report is likely to recommend extensive community consultation regarding the proposals. It will also consider the most appropriate advisory structure for the Bunker. ROLE OF CURRENT BOARD It is proposed that prior to Council considering the cultural committee structure that the attached Roles and Responsibilities be adopted for the committee of the Bunker Cartoon Gallery. Implementation Date / Priority: It is proposed for Council to assume responsibility for the Bunker Cartoon Gallery from 1 September 2006.

Cont'd

Rotary Cartoon Collection Handover Documentation Page 20

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CITY SERVICES COMMITTEE 17 AUGUST 2006 - 56 -

S55 - Bunker Cartoon Gallery (Cont'd) The Rotary Club of Coffs Harbour plan to officially hand over the collection to Council at a function on 26 August 2006. Recommendation: 1. That Council assume responsibility for the Bunker Cartoon Gallery from 1 September

2006. 2. That Council accepts on behalf of the community the Bunker Cartoon Collection. 3. That the structure for community input for the future development of the facility be the

subject of a future report to Council. 4. That in the interim, the attached Roles & Responsibilities be adopted for an advisory

body. 5. That investigation into the costs associated with valuation of the collection be further

investigated. Geoff Newton Director of City Services (Acting)

Rotary Cartoon Collection Handover Documentation Page 21

- 57 -

Attachments:

!"##$%&'()"&'#(*+,()'#!"+#$%$&$-$'#((

%./012(342566/(7488129(*:;<=629(36>><5511(((

POSSIBLE COMMITTEE ROLES AND RESPONSIBILITIES �� To act in an advisory body to Council on issues relating to the Bunker Cartoon Gallery. �� To advise on a strategic plan for the economic development including sources of funding for

the Bunker Cartoon Gallery and to provide ongoing advice on issues related to this economic development.

�� To facilitate communication between Council and the community in relation to the

development of the facility. �� To provide effective support to staff and general advice that ensures the continued success

of the Bunker Cartoon Gallery. �� To facilitate the provision of information as requested by Council. �� To advise Council on future capital works programs. �� Facilitate Annual Cartoon Competition in collaboration with Coffs City Rotary Club. �� Manage income from sources outside Coffs Harbour City Council (e.g., entry fees and

sponsorship) in accordance with Strategic Plan. �� Provide input to management of Coffee Shop. POSSIBLE COUNCIL ROLES AND RESPONSIBILITIES �� Day to day operations of the Bunker Cartoon Gallery. �� Maintain and repair Bunker Cartoon Gallery buildings. �� Own and maintain the Coffs Harbour City Rotary Club Cartoon Collection. �� To approve budget allocations and expenditure. �� To develop, with input from the Committee, long term strategic plan for the Bunker Cartoon

Gallery.

Rotary Cartoon Collection Handover Documentation Page 22

Rotary Cartoon Collection Handover Documentation Page 23Cofts Harbour City Council - 17 Aug 2006 - City Acquires Bunker Cartoon Gallery Page I or 1

17 Aug 2006 - City Acquires Bunker Cartoon Gallery

Responsibility for the running of the Bunker Cartoon Gallery and the care of its permanent collection has beentaken over by Coffs Harbour City Council.

liThe Bunker Cartoon Gallery is a unique facility in Australia and Council, by taking over the maintenance ofthe building, is ensuring that the city retains a very valuable community cultural asset," said Councillor GavinSmithers, Chair of Council's City Services Committee.

"It is extremely generous of the Rotary Club of Coffs Harbour City to gift the Cartoon Collection, which formsthe core of the Gallery, to the community.

"As well as the Cartoon Collection, the Gallery also provides additional exhibition space for travelling shows tocomplement those staged at the City Gallery," he said,

HiS words were echoed by Councillor lan Hogbin who said this acquisition was a great step forward.

"I'm looking forward to Coffs Harbour developing a strategy to promote the cultural activities of the city," hesaid.

The Bunker Cartoon Gallery is a converted, underground World War 11 bunker that houses a collectionnumbering 10,000 works. It regularly hosts exhibitions drawn from its own collection as well as touringshows. The Gallery is also the venue for the Rotary Cartoon Awards, which judges the best national andinternational cartoons every year.

The recently-appointed City Gallery and Museum Curator, Or Leigh Summers, will assume the responsibilityfor the Bunker Cartoon Gallery. Before taking up her current post, she was previously the curator at theBunker Gallery,

"Having one Curator to oversee the running of the City Gallery, Museum and Bunker Gallery will make surethat there is a cohesion to the events and facilities we can offer the community and visitors to the area," saidCr Smithers.

"Ultimately, this move will greatly benefit the city and its residents," he said.

Council will formally assume responsibility for the Bunker Cartoon Gallery on 1 September.

Further Information:

Sara Hinds, Media Officer, 6648 4093/0407 227818

htlp://www.cotTsharbour.nsw.goY.au/www/htmI/21 08-17-allg-2006---city-acqllires-bll". 18/08/2006

bernard

From:Sent:To:Subject:

Jenni Eakins Uenni.eakins@chcc.nsw.gov.au]Friday, 18 August 200610:20 AMbdow7159@bigpond.net.auResolution by Council regarding Bunker and Cartoon Collection

MC)rrlirlq furt:her 1:0 0\1Y' (jiSC:llssion this rnornirl<j fc)11c)wirlg is t:he resol.l1tioll l)yCouncil at.: last niqht'.'3 Counci.l lfl('ctinq (1"1 l\uqu.';l: 7.00Cl)

Lved:

1. That Council assume resporJ,';ibi liLy for thc: Bunker Cartoon (;allery fn)J[l 1.c;epLcrnbe[" ?006.7. That Council <:lCCCpl:.'3 on behalf of Lhc: communiLy Lhe Bunker CarLoon Collection.j. That the sLrucLure Jor comlllunity input.: for the future dC'vc:lopmcnt.: of thc:fac i 1 i.Ly the subject.: or (l future report to Counci 1.4. That.: in inLcrilfI, thc: i.lLt.d(:hcd Ft HC,';POWiihi I iLl(;.'3 be ;HlopLcd ror anadvi 50ry body.S. 'I'hdl invc.'il.i_CJdl ion illLo !.hc: cos!.s a;,;sociatcd with valuation o! the collecLion befurther' invcsLiqdL(;d.

We look f"orvJdni to workinq wi.Lh FoLillY ,md Lt\(; Boanl ill LCUH.'; 01 l.hi::; cflCHlqc; over- dndyou ror yOUl LiIIlC; dlld 'l.c;::;i.c;LdnC(; ]"(;q;-lnJilltj Llli,,; dnd ,-llso for Lilc vc't·y qc[")c;rOll.':;

.lOfldl.ioTl of tflr' collect.ion. Wc'll be.' in touch in the.' ne>:t I while Lo work 0\1\the pr-dct.icc.lliLic;:-=; of Lhi::; deci:.=;jorJ

,JC'llfl.L 1;:dk.i.TlsCOmmll!liLy Scrvic(;s ManaclPI-Coffs llarhour Ci Ly CO\JlH:i I02 h6 ,lH4H:-)O

Rotary Cartoon Collection Handover Documentation Page 24

bernard

From:Sent:To:Subject:

Jenni Eakins Uenni.eakins@chcc.nsw.gov.au]Friday, 18 August 2006 10:20 AMbdow7159@bigpond.netauResolution by Council regarding Bunker and Cartoon Collection

MorniIICj Ilc;rnard, [url.hcr to our' thi,o mornirHJ follocvinq IS the rrcsoluti.on byCouncil al Idc;l niqhl' s Counci.l. HI(·eLi.nq (1) l\uqu;;t ?()(lCi)

Hosol.vcd:

1. That: COUl1c.l.l assume rr-.'spow;ibi li Ly for' th(.' 13unkc.'1 C,JrtOOlt (;,lllcry fnllfl 1/'006.

? Tlwt Counc:il dcc:c:pL:; on behalf or the communiLy the l3unKc:r CarLoon Collec\.1011.J. That the: strucLlue: for community input for the future devc;JopHlent of Uw[aei lil.y be Lhc subj(;cl. of Cl futuYe report to COUl1C1 I.4. ThaL in the inl.c::rim, Ul(; dttdchcd I{olc.':o & Hcc;pon:;ibiliti(".; be iJdopLed ror dnadvi :30ry body.S. '!'lldl inve:;licjdl lOll Irdo Lhc; costs wiLh vdluat ion 01 the collection bCef 11 r I. her' i fl V C s L i q d L c; d .

We lOOK fontJard to w(H'kinq wiLh [{OLlfY ,me! the, !loilnl ill Lcrm.'i of Uti,,; c:hdnqc: uver' andyou lor youl l.il11(; dlld drld ;-1150 lor l.hc; vl'r'y qellCrOll."

JO!ldlioll 01' Uw collccl.iun. Wc' I1 ill touch ill the ne>:!. I illlc: wh'llc 1..0 work 011\the pr"lcl.iccl! i of. ilTlplernrent inq Ihi,'; deci";jon

thi.1nks i

cl (; t 1ll .l LJ k j tl 5

Cornrnun i. t Y [vi I'

Cofis liar-hOllY Ci I.y COIJnci.l02 (,(, L1H4H\O

Rotary Cartoon Collection Handover Documentation Page 25

("OFFS CITY COUNCIL

Our Rei 14642921 September 2006

Mr B WoodPresidentRotary Club of Coffs Harbour City IncPO Box 570COFFS HARBOUR NSW 2450

Dear Bill

Transfer of Rotary Cartoon Collection

Reference is made to correspondence dated 31 August 2006 regarding the above Issues.

This letter is to confirm that Council gratefully accepts, on behalf of the committee, thegenerous transfer of the Cartoon Collection from the Rotary Club of Coffs Harbour City Inc.This transfer is with Council's agreement to the following provisions·

• That the contribution of the Rotary Club of Coffs Harbour City Inc to the CartoonCollection should be perpetuated by recognition at every possible opportunity

• The property in the Cartoon Collection be passed on to the Council on the Council'suneqUivocal undertaking that it will not part with that property and that the collection andall additions to it will be based in Coffs Harbour, be available to the Rotary Club of CoffsHarbour City Inc and be available to the viewing public on reasonable conditions.

• If, for any reason, whatsoever, the Council may no longer Wish to own the Collection, theownership shall revert to the Rotary Club of Coffs Harbour City Inc An appropriatedocument would be drawn up to incorporate the proviSions.

• That Council Implement an Asset Management Program In respecl to the CartoonCollection

Thank you to your Club for the work and development to this wonderful collection. Councillooks forward to the continuing success of the annual Cartoon Competition managed by yourClub. Should you require any further information please contact me on 6648 4830.

Yours faithfullyI "'

(1(·///tj!/"(

. ., \, ( .) ( . ;',C:)

J.lmni Eakms·Community Services Manager

J.MEaJk

\111I{f: 1(JO(, 19';6COf-j-S flAR[30lW Sf-m,'/-: 1'):,(, - j')fjn

cnlTS 11I\IWOU!i CITY COUNCII_ 1WW ){J06

Rotary Cartoon Collection Handover Documentation Page 26

President Bill Wood.You asked 101' some notes on this subject for your next Board Meeting.

ROTARY CARTOON AWAlmS ---- BACKGROUND INFORMATION

AND ANTICIPATED FUTURE INVOLVEMENT OF THE CLUB.

Thc tlrst cartoon competition was held in 1989. The aim ofour Rotary Club was toraise money to nlll the competition annually, to further Black and White Art and tofund Rotary Charities.

Rothmans sponsored the competition I()r the seeond and third years and met the costsof presentation of awards nights that were held in Sydney. Our Club Membersprepared exhibition boards for touring the cartoons.These were exhibited in variousshopping centres,for a charge, from Brisbane to Melbourne.Rotary Charities benetltedfrom an injection of cash, and half the funds raised were set aside to ensure that wehad at least one years sponsorship in hand.

After three years some eartoonists objected to the sponsorship of Rothmans on ethicalgrounds, resulting in the Club ending its association with Rothmans and so, losing itsmajor sponsor.From then on till 2004 the owners of Park Beach Plaza covered thecosts associated with the competition.ln 2004 they reduced their financial sponsorshipand advised that they would not continue to sponsor the competition.This necessitatedsome monies from our reserves bcing used.

During 2005 a request was received from the board of the Bunker Cartoon Galleryasking that the cartoon collection be donated to the ColTs I larbour City Council.Thiswas agrced to and the Council accepted the collection, now totaling ovcr 13,000cartoons.Council also at this time agrced to assume responsibility for the BunkerCartoon Gallery.

The 17th and 18th Cartoon Competitions were held using monies from our reserves.EfTorts had bcen made to obtain financial sponsorship, but without success.Thc Clubs decision to transfer the collection, and the Councils decision to assumeresponsibility for the Gallery was announccd at the Presentation Night.

A Director has bcen appointed by Council to oversee the management of the BunkerCartoon Gallery, the Regional Gallery and the Museum.It is proposed by the Board of the Bunker Cartoon Gallery that the 19th AnnualCartoon Competition be held in conjunction with the Buskers Festival and thePresentation Night be on 29th September 2007.Although it may well be appropriate that in future years the competition beorganized,funded and supported by the Bunker Cartoon Gallery Board, the Clubmembers will still be required to assist with the planning.Whilst ever there are monies available in the Cartoon account the Club may considermaking some financial contribution towards the Annual Cartoon Competition.TheGallery has made a request to Couneil, in its budget, for funding for this yearsCompetition.

Rotary Cartoon Collection Handover Documentation Page 27

The future involvement of the Club:-

The competitions must continue because they are essential to providc new material forthe Gallery.The Presentation of Awards is Rotarys contribution to a signiticant event for the CofTsHarbour Community.The Rotary Name should be maintained in association with the Competition.Our Club needs to maintain a close association with the Australian CartoonistsAssociation and the Federation of Cartoonists Organisation.( The ACA will considcrholding the 2008 Stanleys in ColTs Harbour in conjunction with the 20lh AnnualCartoon Competition).We require representation on the Bunker Cartoon Gallery Board to safeguard ourinterest in the Cartoon Collection.It was thc efforts of our Club members that made thc Gallery possible.Wc mustcontinue to give it our support.In the foreseeable future it should be possible for the Gallery to raise funds f1'om thesale of cartoons. Rotary charitics could share in the proceeds.The Cartoon Collection and the Gallery have no equal. One day this will receive thesignificance it deserves.- Rotary Projects.

I think the Club is able to participate in the future of the Competition and thc Galleryto the extcnt that membcrs wish to bc involvcd.At prcscnt there is littlc intercst, but it necds to bc encouragcd.A small committce will be essential to undcrtake the tasks for this years competition.

I hope this is of some usc in your delibcrations.

Bernard.i h Feh 2007.

Rotary Cartoon Collection Handover Documentation Page 28

bernard

From: William Wood [bwbill@bigpond.com]Sent: Thursday, 15 February 2007 10:48 AMTo: Brian LeiperCc: Bernard Dowling; Trevor Brentnall; Rob Groot; Warren GrimshawSubject: letter to Mayor & G.M.

GentlemenThe attachment is the letter I will post this morning.RegardsBill

15/02/2007

Page 1 of I

Rotary Cartoon Collection Handover Documentation Page 29

Cr. Keith RhoadesMayorcons Harbour City CouncilLocked bag 155cons Harbour NSW 2450

Dear Keith

15 February 2007

ROTARY CARTOON AWARDSIn Augusl 20061he Rotary Cartoon Awards, along with the Cartoon Collection, weredonated to the City Council. The Council also agreed to accept responsibility for theoperation of the l3unker Cartoon Gallery.The Rotary Cartoon Awards have been held since 1989 and this year will be thenineteenth anniversary of the competition which, at the request of the l3unker CartoonGallery 130ard, is to be held in conjunction wilh the l3uskers Festival.Our Club is very pleased for the two events to be run concurrently as the Clubinitiated the l3uskers Festival in 1989 and successfully ran the Buskers for some liveyears: wc also believe the two events will make a much more marketable occasion lorthe City to promote.

The Club is committed to assisting Council in cnsuring the continuation of theCartoon Awards. To achieve this goal there is a need lor the material support ofCouncil as the Club is not able to finance the Awards. Ilowever, the Club willmaintain a close association with the Australian Cartoonists Association and theFederation of Cartoonists Organisation.

To facilitate planning the Club has formed a ROlary Cartoon Awards Group to liaisewilh Council in assisting with the organisation of the Awards; the group members arcl3ernard Dowling, Trevor Brentnall, Rob DeGroot and Warren Grimshaw.As soon as it is convenient the Group and I would like to arrange a meeting withyoursel I' and the General Manager to discuss some matters relevant to the Awards.

In order that the timing for Awards this year be met it will be necessary to finalise thecompetition conditions by the first of April 2007.The Club considers it is a matter of primary importance that Council establish in the2007-2008 Management Plan sullieient funds for the successful operation of theAwards. Wc are seeking your concurrence with us in this conviction.

There is no doubt that operating under the aegis of Council the Rotary CartoonAwards will reach its full potential to become a Ilagship event for the City.This letter is also being sent to the General Manager.

Yours sincerely

IliII WoodPresident (el1lail bwbill@bigpond.eom; phone 66512953)

Rotary Cartoon Collection Handover Documentation Page 30

I do not consider that Item 4 corrcctly records thc intention of the Board.

Money raised from the sale of copies of cartoons should be deposited in the BunkerCartoon Gallery Account to be used for the purposes specified in Para 8 Rules andEntry Conditions for the Awards, which states:-

"The cartoons may be exhibited and reproduced in a catalogue or similar, onto postcards and copied,at the Rotary Club's discretion, at any time in the future, for salethrough the Bunker Cartoon Gallery"

In General Information for the Awards it statcs:-

"The Rotary Cartoon Awards arc sponsorcd by the Rotary Club ofCoff.s Harbour Cityto raise fWlds for various Rotary Charities and to promote cartooning through theBunker Cartoon Gallery."

In previous years, when money was raised by The Rotary Club through the CartoonAwards,It was considered that 50% would be for Rotary Charities and 50% !()r the furtheranceof Black and White Art.

It is recommended that these conditions should be confirmed and maintained.

IIIBernard Dowling.30/5/07

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Dated 2006

Charitable Trust Deed

Pittwater Environmental Trust

The Council of Pittwater(“Settlor”)

Pittwater Environmental Foundation(“Trustee”)

14

Contents

1 Interpretation 1

2 Establishment of the Trust 3

3 Objects 4

4 Control of the Trust 5

5 Trustee 5

6 Investments 6

7 Powers of the Trustee 6

8 Public Fund 8

9 Non-profit 9

10 Expenses 10

11 Indemnity of Trustee 10

12 Accounts and audit 10

13 Power of alteration 11

14 Winding up of Trust 11

15 Endorsement of the Trust as a Deductible Gift Recipient 12

16 Advisory Committees 12

17 Patrons 12

18 Governing law 12

1

@bcl@2c037370.doc 15 02 06

Charitable Trust Deed

Date: 2006

Parties: The Council of Pittwater, a local council constituted under the Local Government Act 1993 (New South Wales) (“Settlor”)

Pittwater Environmental Foundation of Level 60, 1 Farrer Place, Sydney NSW 2000 (“Trustee”)

Recitals:A. The Settlor desires to establish a trust to be called the “Pittwater

Environmental Trust” (“Trust”) for public charitable purposes.

B. The Trust will maintain a public fund called the “Pittwater Environmental Foundation Fund” (“Fund”) to receive gifts from the public to be applied for the same public charitable purposes as the Trust.

C. The Settlor has agreed to pay to the Trustee as an original endowment the sum of $100 to be held by the Trustee on the Trusts declared in this Deed.

D. The Trustee has consented to act as Trustee of the Trust and will hold the settled sum together with such further sums of money, investments and other property paid, given or transferred to the Trustee by way of addition to the Trust, on the trusts contained in this deed.

E. Nothing in this Deed will be construed as limiting in any way the Ongoing Settlor’s discretion under the Environmental Planning and Assessment Act 1979 (NSW) or the Local Government Act 1997 (NSW), or any other relevant legislation.

Operative provisions:

1 Interpretation1.1 The following words have these meanings in this deed unless the

contrary intention appears.

Act means the Income Tax Assessment Act 1997 (Cth).

Approved Institution means a fund, authority or institution which at the time of gift falls within the description of an item in any of the tables in Subdivision 30-B of the Act, which has been established for charitable purposes.

Corporations Act means the Corporations Act 2001 (Cth).

Deductible Gift Recipient has the meaning given by the Act.

Department means the Commonwealth Department of the Environment and Heritage.

2Director means a director of the Trustee or any other company for the time being trustee of the Trust Fund.

Fund means the Pittwater Environmental Foundation Fund established pursuant to this Deed.

Objects means the objects described in Clause 3 of this Deed.

Ongoing Settlor means the Council of Pittwater, a local council constituted under the Local Government Act 1993 (NSW) or any other local government body which succeeds the Council of Pittwater. In the event that the boundaries of the Council of Pittwater are modified, Ongoing Settlor means the local government body responsible for the majority of the land comprising the Council of Pittwater as at the date of this Deed.

Qualified Person means a person who at the time of the first appointment as a director of the Trust is a person who due to the tenure of some public office or position or activity in the community may be expected to have a high degree of responsibility to the public and including, but without limiting the generality of the foregoing, a person who is:

(a) a member of the Commonwealth or a State parliament;

(b) a judge of a superior court in Australia;

(c) a member of the council or governing body of an Australian university;

(e) a senior academic or professor of an Australian University;

(f) a barrister or solicitor of the Supreme Court of an Australian State or Territory;

(g) a member of a professional body having a code of ethics or rules of conduct;

(i) a person who is officially charged with spiritual functions by a religious institution

(j) a Justice of the Peace

(k) a councillor of a local government authority

(l) a general manager of a local government authority

(m) a recipient of the Order of Australia or Governmental award for services to the public or community.

Responsible Person means a person who is assessed by the Department to be a “responsible person”, and includes:

(a) a Qualified Person;

(b) a public servant with more than five years service;

3(c) a director of a large public companies (with responsibilities

under the companies code);

(d) an academic or teacher with more than five years experience;

(e) a trustee or board member of a not-for-profit school or college;

(f) a person who holds (or has held) a public position; or

(g) a past or present office holder of a community organisation (eg P&C association, Lions, Rotary).

this Deed means this deed including all amendments, additions, deletions or replacements lawfully made to this Deed.

Trust means the Pittwater Environmental Trust established pursuant to this Deed and includes the Fund.

Trustee means Pittwater Environmental Foundation or any other trustee for the time being of the Trust.

Trust Property includes the original endowment paid by the Settlor under clause 2.1 of this Deed and the moneys, investments and property for the time being subject to the trusts of this Deed.

1.2 In this Deed unless the contrary intention appears:

(a) a reference to a clause or schedule is a reference to a clause of or schedule to this Deed and references to this Deed include any recital or schedule;

(b) a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them;

(c) the singular includes the plural and vice versa;

(d) the word person includes a firm, a body corporate, an unincorporated association or an authority; and

(e) a reference to a person includes a reference to the person’s executors, administrators, successors, substitutes (including, but not limited to, persons taking by novation) and assigns.

1.3 Headings are inserted for convenience and do not affect the interpretation of this Deed.

2 Establishment of the Trust2.1 The Settlor has upon the execution of this Deed transferred to the

Trustee the sum of $100 (the “Initial Endowment”) and directs that the Trustee is to, and the Trustee hereby declares that it will:

(a) act as Trustee of the Trust; and

4(b) hold the Initial Endowment on trust for the purpose of

attaining the Objects set out in clause 3 of this Deed.

To achieve the Objects, it is intended that money will be raised from members of the public, which, together with any additional property, and all investments and property representing that money and property and any accretions or additions to it from time to time shall be held by the Trustee and applied in all accordance with the terms of this Deed.

2.2 The Trust will be known as the Pittwater Environmental Trust.

2.3 In managing and conducting the affairs of the Trust, the Trustee shall direct its efforts towards furthering the Objects.

3 Objects3.1 The Trust is established and must be maintained exclusively for public

charitable purposes in Australia, being the purposes of providing money, property or benefits for:

(a) the conservation, protection, restoration, creation, expansion and enhancement of the natural environment, or a significant aspect of these, within the Pittwater local government area;

(b) the provision of access and associated infrastructure to ensure the enjoyment and use of the natural environment by the community;

(c) the carrying on of research about the natural environment or a significant aspect of the natural environment;

(d) promoting and encouraging knowledge, understanding and enjoyment of the natural environment, and public participation and interest in sustainability action which, without limiting the foregoing, includes:

(i) the provision of information or education about the natural environment or a significant aspect of the natural environment;

(ii) facilitating the conduct of schools, lectures, courses, seminars or other forms of education regarding the natural environment and/or education for sustainability;

(iii) facilitating the teaching, training and instruction of persons and the promotion of education and research in respect of the natural environment and/or education for sustainability;

(iv) providing or assisting in providing premises, equipment and expertise for the presentation of information or research relating to any aspect of the natural environment and/or education for sustainability

5and/or research into any aspect of the natural environment; and

(v) the development, construction, use, operation, maintenance and promotion of land or premises used to further education, information provision and/or research in respect of education for sustainability and conservation of the natural environment; and

(e) the acquisition and restoration of environmentally sensitive land.

3.2 The Trustee may apply capital as well as income of the Trust for the objects referred to in this clause.

4 Control of the Trust4.1 To ensure that the Trust is controlled and administered by persons who

because of their tenure of some public office or position or some activity in the community may be expected to have a high degree of responsibility to the public in exercising that control or administration, the Trustee must be a company in relation to which the following provisions apply:

(a) the majority of its Directors must be Qualified Persons;

(b) the number of Directors for the time being in office must not be less than three; and

(c) if the number of Directors in office falls below three the Trustee may not act in the affairs of the Trust until that number is filled by the election or appointment of further Directors.

4.2 The elected council of the Ongoing Settlor has the sole power to determine, appoint and remove the Directors of the Trustee.

4.3 Pittwater Environmental Foundation is the first Trustee of the Trust.

5 Trustee5.1 The Trustee may retire on not less than one month’s written notice to

the Ongoing Settlor.

5.2 If the Trustee defaults in the observance or performance of any of its obligations or duties under this Deed, the Ongoing Settlor may by a written notice to the Trustee remove the Trustee from office.

5.3 The Ongoing Settlor must use its reasonable endeavours to ensure that if the Trustee retires or is removed, a successor Trustee agrees to become Trustee with effect from such retirement or removal becoming effective.

5.4 Any successor Trustee must execute a deed by which it covenants to be bound by this Deed as if it had been originally party to it.

65.5 When it retires or is removed, the outgoing Trustee is released from all

obligations in relation to the Trust arising after the time it retires or is removed. The outgoing Trustee must execute and deliver any documents and do every other thing, which is necessary or desirable to effect the appointment of the successor Trustee.

5.6 The Ongoing Settlor and its delegates and the Trustee are bound by the Pittwater Council Code of Conduct and must act honestly and exercise a reasonable degree of care and diligence.

6 Investments6.1 The Trust Property may be invested solely in or on any investments or

securities authorised by the law for the time being of the Commonwealth of Australia or any Australian State or Territory for the investment of trust money with power to vary or transpose those investments or securities from time to time and at any time.

6.2 Except for any investment or security in accordance with clause 6.1 no part of the capital or income of the Trust may be lent to or deposited with any person.

7 Powers of the Trustee7.1 In addition to the powers conferred on the Trustee by law or which are

otherwise conferred on it by this Deed, the Trustee has, subject always to clause 6 and 8, the following powers and discretions:

(a) to solicit donations, gifts, bequests and other forms of financial assistance to, or for the benefit of, the objects described in clause 3.1, including by conducting fundraising initiatives and participating in workplace giving without derogating from the generality of the objects described in clause 3.1;

(b) to accumulate any unpaid or unapplied income of the Trust by investing it and the resulting income and by holding the accumulations in augmentation of and on the same trusts and conditions as are applicable to capital;

(c) to exercise all rights and privileges and perform all duties pertaining to any bonds, shares, stock or debentures for the time being forming part of the Trust with liberty to assent to any arrangements modifying those rights, privileges or duties;

(d) to agree to any scheme or arrangement for the reconstruction of or the increase or reduction of the capital of any company and for any such purpose to deposit, surrender and exchange any such shares or stock or the title to them and to pay any calls or contributions or other necessary expenses in connection with any shares, stock or the title to them;

(e) if at any time the Trust Property comprises real property or any interest in real property:

7(i) to manage, use and let it or any part of it;

(ii) to erect, pull down, rebuild and repair buildings and erections;

(iii) to carry out improvements of any nature;

(iv) to make allowances to and arrangement with tenants;

(v) to grant or acquire easements or other rights, to partition or subdivide or join in the partition or subdivision of it; or

(vi) generally to deal with that property or interest or to join in dealing with it as if beneficially entitled to it without being responsible for loss;

(f) to retain any property donated to the Trust without considering the question of sale, calling in or conversion for as long as the Trustee thinks fit;

(g) to commence and carry out legal proceedings of any kind and in any court to enforce a contract entered into by the Trustee and to recover damages for breach of such a contract;

(h) to cancel, terminate or accept surrenders of leases, to institute and prosecute legal proceedings of any kind and in any court to oust tenants and recover possession of any part of a property, to sue for and recover rent and damages for breach of a lease, to sue and prosecute trespassers or other persons for damage to any part of the property and to settle, abandon, compromise and release any such actions or suits when expedient;

(i) to repair, renovate, decorate and maintain chattels personal or land including fittings, fixtures, furnishings, furniture and equipment and grounds;

(j) to employ, engage or appoint any secretary, manager, solicitor, accountant or agent or any other person, to transact any business required to be done under the trusts established by this Deed, including the receipt or payment of money and the acquisition of property of any kind on behalf of the Trustee, and the Trustee may decide the amount of the remuneration and expenses to be paid to any such person;

(k) to acquire any investment on terms that require the investment to be paid for by more than one instalment or that the instalments or the residue of purchase money bear interest as the Trustee thinks fit;

(l) to raise money which the Trustee thinks expedient for any purpose in relation to the execution of the trusts and powers conferred on the Trustee by this Deed with or without security or by mortgaging or charging with or without power of sale any part of the Trust;

8(m) to pay out of the capital or income of the Trust the costs of and

incidental to the establishment of the Trust and all expenses and outgoings that may be incurred in relation to the trusts of this Deed including all administration expenses;

(n) to invite persons to make gifts to the Trust and to refuse any gift of property where the Trustee reasonably considers that any expenses associated with or likely to arise in relation to the gift of property would cause the gift of property to be onerous or uneconomic to maintain;

(o) to make a gift to an Approved Institution for a specific purpose as identified in the relevant provisions of Subdivision 30-B of the Act, and to provide the money, property or benefit to or for the Approved Institution only for the specified purpose;

(p) to conduct activities for the raising of funds from the public, pay reasonable expenses relating to the conducting of those activities, and to apply the net proceeds pursuant to the Objects;

(q) to take and act on the opinion of any counsel or solicitor practising in the Supreme Court of any Australian State or Territory whether in relation to the interpretation of this Deed or any other document or statute or as to the administration of the trusts of this Deed without being liable to any one in respect of any act done or not done by it in accordance with that opinion, but this clause does not oblige the Trustee to act in accordance with any such opinion nor prohibit the Trustee from applying to any court as it thinks fit;

(r) to do any act or thing which in the opinion of the Trustee is necessary for the proper and efficient management and development of any property forming part of the Trust; and

(s) to carry out any of the foregoing powers by or through an agent and to appoint and authorise the agent to carry out all or any of the foregoing powers.

(t) to establish and maintain commercial contracts, fund raising schemes, appropriate sponsorships and other arrangements for the purpose of the above objects.

8 Public Fund8.1 All other provisions of this Deed are subject to this clause 8.

8.2 The Trustee must establish and maintain a public fund to be called “The Pittwater Environmental Foundation Fund” (“the Fund”) for the specific purpose of supporting the Objects set out in clause 3 of this Deed. The Public Fund is established to receive all gifts of money or property for this purpose and any money received because of such gifts must be credited to its bank account. The Fund must not receive any other money or property into its account and it must comply with subdivision 30-E of the Act.

98.3 The Fund must operate in accordance with the following rules:

(a) The purpose of the Fund is to support the Objects;

(b) Members of the public are to be invited to make gifts of money or property to the Fund for the attainment of the Objects;

(c) Money from interest on donations, income derived from donated property, and money from the realisation of such property is to be deposited into the Fund;

(d) A separate bank account is to be opened to deposit money donated to the Fund, including interest accruing thereon, and gifts to it are to be kept separate from other funds of the Trust;

(e) Receipts are to be issued in the name of the Fund and proper accounting records and procedures are to be kept and used for the Fund;

(f) The Fund will be operated on a not-for-profit basis; and

(g) A committee of management of no fewer than three persons will administer the Fund. The committee will be appointed by the Trustees. A majority of the members of the committee are required to be “Responsible Persons” as defined by the Guidelines to the Register of Environmental Organisations.

8.4 The Trustee agrees to comply with any rules that the Treasurer and the Minister with responsibility for the environment may make to ensure that gifts made to the Fund are only used for its principal purpose.

8.5 The Trustee must inform the Commonwealth Department of the Environment and Heritage as soon as possible if:

(a) there is any change to the name of the Trust or the Fund; or

(b) there is any change to the membership of the management committee of the Fund; or

(c) there has been any departure from the model rules for public funds located in the Guidelines to the Register of Environmental Organisations.

8.6 Notwithstanding any other provision in this Deed, in the case of the winding-up of the Fund, any surplus assets are to be transferred to another fund with similar objectives that is on the Register of Environmental Organisations.

9 Non-profit 9.1 The income and property of the Trust shall be used and applied solely

in promotion of its Objects and no portion shall be distributed, paid or transferred directly or indirectly to the Trustee except as bona fide compensation for services rendered or expenses incurred on behalf of the Trust.

109.2 Any allocation of funds or property by the Trust to other persons or

organisations will be made in accordance with the Objects and will not be influenced by the preference of the donor of those funds or property.

10 Expenses10.1 The Trustee is entitled to reimbursement of all expenses in connection

with the administration of the Trust, and those expenses may be charged against the income of the Trust. If the income of the Trust is insufficient for that purpose, then to the extent of such insufficiency such expenses will be charged against the capital of the Trust or so much of it as may be required to meet the shortfall.

11 Indemnity of Trustee11.1 The Trustee is indemnified against all liabilities incurred by it through

any act or omission in the exercise or bona fide intended or purported exercise of the powers, duties and discretions under this Deed and has a lien on the Trust for that indemnity.

11.2 Except where due to the Trustee’s own dishonesty or wilfully or reckless failure or knowingly being a party to a breach of trust, theTrustee is not liable for any:

(a) act or default done or omitted to be done in the exercise or bona fide intended or purported exercise of those powers, duties and discretions; or

(b) loss or expenses incurred by the Trust through the insufficiency of any security in or on which any of the money of the Trust are invested; or

(c) loss or damage arising from the bankruptcy, insolvency or tortious acts of any person with whom money or securities are deposited; or

(d) other loss, damage or misfortune whatsoever.

11.3 References in this clause to the Trustee include a Director and delegates appointed by it under this Deed.

12 Accounts and audit12.1 The Trustee must:

(a) cause proper accounts to be kept by the person appointed by the Trustee for the purpose with respect to all sums of money received and expended by the Trust, the matters in respect of which the receipt and expenditure takes place and the assets and liabilities of the Trust; and

(b) cause a balance sheet and statement of income and expenditure to be drawn up as at 30 June each year and make available to

11the person appointed by the Trustee for that purpose such documents and information as that person requires to fulfil this task.

12.2 The accounts must be kept at the place which the Trustee determines and be open to inspection by any Director.

12.3 Statistical information requested by the Department on donations to the Fund will be provided within four months of the end of the financial year or as required from time to time by the Department or under the Act.

12.4 An audited financial statement for the Trust (separately showing details of the Fund) will be supplied with the annual statistical return. The statement will provide information on the expenditure of monies from the Trust and the management of assets of the Trust, in all cases separately identifying these details for the Fund.

13 Power of alteration13.1 The Trustee may by deed alter, amend, add to, delete or replace any of

the trusts, powers and provisions of this Deed, including this clause, in any manner provided that:

(a) no part of the Trust becomes subject to any trusts other than trusts for public charitable purposes; and

(b) counsel or solicitor referred to in clause 7(q) certifies that in counsel’s opinion the alterations, amendments, additions, deletions or replacements are within this power.

14 Winding up of Trust14.1 If on the winding up or dissolution of the Trust there remains after

satisfaction of all its debts and liabilities any property, the property must be given or transferred to an Approved Institution which:

(a) is maintained exclusively for or covenants to use the property exclusively for charitable purposes; and

(b) prohibits the distribution of its income and property among its beneficiaries or members to an extent at least as great as is imposed on the Trust.

The Approved Institution is to be determined by the Trustee at or before the time of dissolution or, failing such a determination, by a court of law.

14.2 An Approved Institution referred to in clause 14.1 includes any fund, authority or institution of which the Settlor, Ongoing Settlor or a Director is the settlor or a trustee or director or in respect of which the Settlor, Ongoing Settlor or a Director is a director of its trustee.

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15 Endorsement of the Trust as a Deductible Gift Recipient15.1 If the Trust is endorsed by the Commissioner of Taxation as a

Deductible Gift Recipient:

(a) the Trustee must not act or fail to act in such a way as to cause the Commissioner of Taxation to revoke the endorsement of the Trustee as a Deductible Gift Recipient under Division 30-BA of the Act;

(b) the Trustee must advise the Commissioner of Taxation in writing before, or as soon as practicable after, the Trust ceases to be entitled to be endorsed as a Deductible Gift Recipient; and

(c) in the event that the Commissioner of Taxation revokes that endorsement all moneys, properties and benefits held by the Trustee as Trustee of the Trust must be transferred to an Approved Institution.

16 Advisory Committees16.1 The Trustee may establish Advisory Committees and appoint and

remove, or make provision for the appointment and removal of, members of Advisory Committees.

16.2 Each Advisory Committee may consist of a single individual or the number of individuals that the Trustee decides.

16.3 The Trustee may specify:

(a) the manner in which proceedings of each Advisory Committee are to be conducted;

(b) the matters which the Advisory Committee must have regard to in carrying out its functions; and

(c) any other matters concerning the Advisory Committee or its functions that the Trustee decides.

17 PatronsThe Trustee may appoint any person or persons they think fit as patron or patrons of the Trust.

18 Governing lawThis Deed is governed by the law in force in New South Wales.

EXECUTED as a deed

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Execution Page

SIGNED SEALED AND DELIVERED for and on behalf of THE COUNCIL OF PITTWATER by its duly authorised representative in the presence of:

...................................................................................................Signature of witness

...................................................................................................Name of witness (block letters)

...................................................................................................Occupation of witness (block letters)

)))))))))))

........................................................................................................Signature of Mark Ferguson GENERAL MANAGER

EXECUTED by PITTWATER ENVIRONMENTAL FOUNDATION in accordance with section 127(1) of the Corporations Act 2001 (Cth) by authority of its directors

...................................................................................................Signature of director

...................................................................................................Name of Director (block letters)

))))))))))))

........................................................................................................Signature of director/secretary*

........................................................................................................Name of director/secretary * (block letters)

*delete whichever is inapplicable