2021-03-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                 15 MARCH 2021


   This tender was then evaluated using the following price and non-price criteria:

   •       Price
   •       Capability and resourcing
   •       Contract experience and capacity
   •       Methodology
   •       Quality
   •       Health & safety
   •       Environment and sustainability
   •       Contribution to local economy

    Whilst Poolside NAC supplied the only confirming tender response, the panel was pleased
    with the quality of the submission and felt it was a very competitive response.

    Poolside NAC has significant local hospitality industry experience, including as a business
    operator, and is well prepared and equipped to deliver a quality café service at the NAC.
    Poolside NAC demonstrated a clear understanding of the unique contract requirements at
    the NAC and put significant thought into how best to meet the needs of patrons and Council
    alike.

    A comprehensive operations and business plan was included with the submission and this
    gave the evaluation panel a level of comfort regarding Poolside NAC’s preparedness for
    operating the café in a safe, compliant and financially sustainable manner. Given that
    Poolside NAC currently operates the NAC café under a management rights agreement, the
    transition across to become lessee will be seamless and will not result in any level of
    disruption to patrons or Council.

    Previous Council Consideration
    Nil.

    Finance
    Following award of the tender, a lease will be established for an initial term of two (2) years,
    commencing 1 April 2021 at a rate of $45,000 p.a. ex GST and increasing to $50,000 p.a. ex
    GST in year 2, with an option to extend for a further three (3) periods of twelve (12) months
    each at a rate of $55,000 p.a. ex GST in year 3 with CPI increases to be applicable in years
    4 and 5, if the options are triggered. The options to extend will be at Council’s discretion and
    subject to the Contractor’s demonstrated ability to meet the requirements of the lease
    agreement.

    The level of financial return proposed for Council is acceptable and is reflective of some
    continued uncertainty regarding the ability for the NAC to operate in an undisrupted manner
    during the life of the contract (because of potential Covid-19 restrictions).

    Risks & Opportunities
    A formal lease agreement will be established in order to provide clarity for all parties
    regarding contract expectations and obligations. NAC staff will manage the contract in
    accordance with normal management practices to ensure the contract is delivered in a
    manner acceptable to Council for the life of the agreement.

    Council will retain a bank guarantee for an amount equal to three (3) monthly rent instalments
    ($11,250 ex GST) in order to mitigate financial risk.

    The risk of not awarding tender T000031 is that the NAC will be left without a café operator
    beyond 31 March 2021.

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