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185 Sports, Arts, Culture & Community Services Committee 21 August 2008 Grant of Financial Assistance Agreement Between Cair 185 SPORTS, ARTS, CULTURE & COMMUNITY SERVICES COMMITTEE 11 21 AUGUST 2008 GRANT OF FINANCIAL ASSISTANCE AGREEMENT BETWEEN CAIRNS REGIONAL COUNCIL AND THE DUYFKEN 1606 REPLICA FOUNDATION – PROGRESS REPORT Ian Lowth: 10/25/1-05: #1782715 RECOMMENDATION: That Council note the report received from the Duyfken 1606 Replica Foundation for the period January to June 2008. INTRODUCTION: This report provides Council with a) details of a Financial Agreement between Council and The Duyfken 1606 Replica Foundation (The Foundation) and b) a copy of a periodic progress report as submitted by the Foundation under the terms of the Agreement. BACKGROUND: The history of the Duyfken commenced in 1606 when the small ship of that name, owned by the Dutch East India Company and stationed in the East Indies, made a voyage of exploration looking for "east and south lands" which took it to Australia's Cape York Peninsula. That voyage is the first historically recorded voyage to Australia. As part of bringing Australian history to life, the Duyfken replica was built in Fremantle and completed in 1999. A community foundation constructed the ship at a cost of $3.7 million, of which the Queensland Government contributed $0.5 million. In 2000, the replica of the Duyfken left Fremantle Harbour and began her voyage of re- enactment, which culminated nine months later in Brisbane. Then in 2006 the ship completed an impressive journey to commemorate the 400th anniversary of that first voyage to Australia, visiting 25 ports around Australia. The replica of the Duyfken is the property of and managed by the Duyfken 1606 Replica Foundation. At a Special Meeting of Cairns City Council on 14 June 2007 it was resolved that: Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 186 1. Council delegate to the Mayor and Chief Executive Officer the authority to negotiate and make on behalf of Council, with The Duyfken 1606 Replica Foundation, the State of Queensland and the Cairns Port Authority, a contract for funding costs of relocating the ship to Cairns, marketing, promoting and operating and ship as an educational and tourist attraction conditional upon the State and the Port Authority making and maintaining funding commitments and otherwise containing the provisions the Chief Executive Officer considers prudent to protect Council’s interests. 2. The budget for this activity be administered by Council’s Corporate Services Division with the proviso that the cost to Council not exceed $75,000 per six months. 3. the Community Relations Branch prepare a marketing and promotional strategy, once the vessel is accommodated in Cairns. The Duyfken replica sailed into Cairns at the end of June 2007 to commence the "Duyfken in Queensland 2007-2010" Project. Grant Agreements between the Foundation and Council (and the Foundation and the State) currently specify that the vessel will sail from Cairns to Fremantle at the completion of the project in 2010. At a subsequent Finance & Administration Meeting of Cairns City Council on 10 December 2007 it was resolved: 1. That Council note the establishment of the Cairns Duyfken Foundation. 2. That Council give the Mayor and the Chief Executive Officer delegated authority to finalise the Deed of Agreement between Cairns City Council and the Cairns Duyfken Foundation and to authorise six monthly sponsorship payments of $75,000 for the period up to 30 June 2010. 3. That Council note that the Cairns Duyfken Foundation will be required under the Deed to provide six monthly status reports to Cairns City Council. Most recently, Cairns City Council was presented with a status report on matters relating to the Duyfken at its Finance and Administration meeting of 18 February 2008. The Duyfken replica is currently moored at the Marlin Marina in Trinity Inlet. COMMENT: Progress Report January to June 2008 The Foundation has now submitted a progress report to Council along with an invoice for the third milestone payment (Attachment A refers). The main variation to the generic program for the Duyfken, as listed in the Funding Agreements with Council and the State, was the decision for the ship to remain in Cairns during the early months of 2008 rather than for it to sail to Brisbane for exhibition at the Queensland Maritime Museum. This occurred primarily due to delays in the transfer of the operations of the Foundation from Fremantle to Cairns. A cyclone contingency plan was developed to ensure the safety of the ship and its crew in the event of a cyclone during this period. Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 187 Other than the variation mentioned above, the report indicates activity in line with the generic program for the ship. Activities of The Duyfken 1606 Replica Foundation The Foundation has relocated its operations from Fremantle to Cairns. This transition has seen a change in Board membership with a significant number of Cairns-based members being added to replace a number of Fremantle members. Mr Kevin Byrne is the Chair of the Foundation and Mr Bruce Peden, the Treasurer. The last page of the Report at Attachment A provides further details regarding Board membership. A Cairns-based Board meeting is yet to take place but the Chair has advised that it is expected to take place by the end of September 2008. While a Board meeting is yet to have taken place in Cairns, a Management Committee Meeting occurred on 30 June 2008. A copy of the Minutes of the Meeting including copies of Financial Reports (unaudited) can be found at Attachment B. The minutes indicate intent to have an audit of the Financial Statements undertaken by the next meeting. Proposed Schedule of Activities A proposed schedule covering the period March 2008 to September 2009 is attached (refer Attachment C). Please note however that the Chair of the Foundation has advised that there is significant doubt over the proposed Sydney visit at the end of the year. Given sailing costs are approximately $2,500 per day and speed of the ship is slow, this trip will not go ahead unless major sponsorship can be secured. Inspection of the Ship Council officers inspected the ship at its berth in Marlin Marina on 1 August. While not a technical inspection, no issues were evident with the presentation of the ship. CONSIDERATIONS: Corporate and Operational Plans: Responsibility for managing arrangements between Council and the Duyfken Foundation transferred from The Office of the Mayor and Administration Services Branch of Cairns City Council to Cultural Services and Facilities Branch of Cairns Regional Council post Council amalgamation on 15 March 2008. Statutory: There is no statutory obligation for Council to be involved in supporting this project. Policy: Cairns City Council agreed to support the project in June 2007, in partnership with the State Government and the Cairns Port Authority, on the basis that it offered the potential to be a significant educational and tourist attraction for the City. Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 188 Financial and Risk: The Duyfken Foundation is supported financially as follows: Support provided by : Period of Agreement Annual Grant (ex GST) Cairns Regional Council 1 July 2007 to 30 June 2010 $150,000 x 3 years Department of Premier and 1 July 2007 to 30 June 2010 $100,000 x 3 years Cabinet Cairns Port Authority $50,000 (in kind) Under the Grant Agreement, Council is required to pay instalments of $75,000 ex GST, on the Foundation delivering six monthly milestone deliverables to the satisfaction of Council. Milestone Deliverable/ Due Date Date Paid by Council Supply to be provided to Council 1. Arrival Cairns 01/07/07 01/08/07 2. Mid-term 07-08 generic 01/01/08 07/04/08 program 3. Completion of 07-08 generic 01/07/08 Invoice received program 4. Mid term 08-09 generic 01/01/09 - program 5. Completion of 08-09 generic 01/07/09 - program 6. Mid term 09-10 generic 01/01/10 - program Council's third instalment is due now, conditional on its assessment of the progress report. Based on the Report submitted, payment will now be processed. Council should also note that a signed copy of the Agreement between Council and the Foundation has not been located. While activity that has already occurred is sufficient to conclude a contract is in existence, arrangements will now be put in place to have another copy of the Agreement signed. Sustainability: The support of the "Duyfken in Queensland" Project is intended to broaden the cultural and tourism base of the City. CONSULTATION: Personal Assistant to the Mayor – previously secretary to the Foundation Board Manager Cultural Services and Facilities Manager Administration Services Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 189 OPTIONS: Options available to Council are to: 1. Note the report as provided; or 2. Note the report as provided and seek additional information from the Foundation as identified by Council; or 3. Reject the report and seek a replacement. CONCLUSION: It is recommended that Council note the report as presented. ATTACHMENTS: Attachment A: Progress report for the period January to June 2008 Attachment B: Minutes and Financial Statements (unaudited) arising out of the Foundation's Management Committee meeting of 30 June 2008 Attachment C: Proposed Schedule of Activity for the Duyfken March 2008 to Sept 2009 Ian Lowth General Manager Community and Cultural Services Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 190 Attachment A Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 191 Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 192 Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 193 Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 194 Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 195 Agenda – Sports, Arts, Culture & Community Services Committee 21/8/08 - #1783244 196 Attachment B DUYFKEN REPLICA FOUNDATION (INC) MINUTES OF MANAGEMENT COMMITTEE MEETING DATE 30TH JUNE 2008 LOCATION CAIRNS REGIONAL GALLERY BOARD ROOM, CAIRNS PRESENT Messrs.
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