FIVE board members of a company set up by Frankston Council to manage the Peninsula Aquatic Recreation Centre are collectively paid $116,149 each year.
Frankston mayor Cr Brian Cunial confirmed last week in response to questions from The Times that Peninsula Leisure Pty Ltd chair Roseanne Healy receives $33,185 and four directors sitting on the board are paid $20,741 annually.
Frankston councillors voted 5-3 at last month’s public council meeting to instruct Peninsula Leisure directors “not to enter into or tender for projects outside their core obligation, that being the management of PARC and the Pines pool”.
Peninsula Leisure was established in 2012 to manage PARC and council subsequently handed the company responsibility for managing the Pines Forest Aquatic Centre in Frankston North.
“The board of Peninsula Leisure has strategically guided PARC to ensure it has achieved its financial sustainability target two years ahead of schedule,” Cr Cunial said in a statement.
“As the primary shareholder of Peninsula Leisure, Frankston Council appointed an expert board of directors with extensive experience and astute strategic intent to establish the best management of our sporting, recreational and leisure municipal facilities for the long-term benefit of our community and to enhance the local experience.”
The mayor said councillors had voted to limit Peninsula Leisure’s “in response to assertions made recently that Peninsula Leisure has been in negotiations with a neighbouring municipality over management of leisure centres”.
The Times reported last month that Peninsula Leisure had been talking to Mornington Peninsula Shire council last year about possibly taking over management of some shire sports and recreation centres (“Sports ‘in the swim’”, The Times 15/5/17).
Peninsula Leisure CEO Tim Gledhill said the board of directors is scheduled to meet 11 times this year.
“Other board meetings will be considered based on the strategic needs of the business,” Mr Gledhill said.
The CEO said board meetings minutes are not publicly available “for commercial in confidence reasons”.
Cr Cunial said council had pegged Peninsula Leisure board members’ remuneration at “70 pre cent of the councillor allowance, with the chair paid a supplement of 60 per cent of this amount”.
The directors’ pay is “indexed against councillor allowances which have been set until November 2020”, the mayor said.
Frankston’s mayor of the day sits on the company’s board as a non-voting “observer” during each 12-month mayoral term.
The directors of Peninsula Leisure are – chair Roseanne Healy who is also a director on many South Australia company boards; remuneration and reward committee chair Barbara Crook; strategy and marketing committee chair David Shilbury; audit and risk committee chair Simon Allatson and Phillip Johnson who is also chief financial officer of South East Water.
The financials for Peninsula Leisure Pty Ltd, with 300,000 shares wholly owned by council according to ASIC records, are included within council’s annual budget.
PARC won the statewide Aquatic Recreation Victoria Facility Management Award last year and there are about 850,000 visitors to the sports, swimming and recreation centre each year according to council figures.