2020-11-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                              10 NOVEMBER 2020


2                        NOOSA RIVER HOLIDAY PARK - PROPOSED INTERIM MANAGEMENT AGREEMENT
DOCUMENT INFORM AT ION




Author                              Property Advisor – Commercial Property, Robyn Mercer
                                    Corporate Services Department

Index                               ECM/ Subject /8.03; Noosa Holiday Parks Admin

Attachments                         Nil



EXECUTIVE SUMMARY
Not applicable

RECOMMENDATION
That Council note the report by the Property Advisor Commercial Property to the Services &
Organisation Committee Meeting dated 10 November 2020 and authorise the CEO to enter into
an interim management agreement for the Noosa River Holiday Park for 11 months commencing
1 June 2021.


REPORT
The current management agreement for the Noosa River Holiday Park (the Holiday Park)
commenced on 1 June 2017 and is due to expire on 31 May 2021, including the 1 year option
period. Given the economic impact of the Covid-19 pandemic, particularly the restricted
operation period from March 2020 to June 2020 and the loss of key international and interstate
markets, the managers have requested Council consider an extension to the current
management agreement to allow their business an opportunity for financial recovery.
The Covid-19 pandemic has had a significant commercial and operational impact at the Holiday
Park, including extended disruption to the annually recurring bookings, loss of the international
market and a decrease in a significant portion of the existing and repeat customer base, a large
percentage of which reside in New South Wales and Victoria and are unable to travel into
Queensland.
The proposed extension will also provide business continuity during the COVID-19 recovery
period and an opportunity for Council to review industry management models to inform a new
tender process for management services which will commence after the 2021-2022 Christmas
holiday period.
Accordingly, this report seeks Council approval to extend the current interim management
agreement for a further 11 months commencing 1 June 2021.

Previous Council Consideration
Ordinary Meeting Minutes, 20 April 2017, Item 5, Page 6
That Council note the report by the Property Officer to the Services & Organisation Committee
Meeting dated 11 April 2017 and:
A.                        Award contract 1516T078 to Anvera Pty Ltd trading as Dineen Tourism Management for
                          the Noosa River Holiday Park Management Services for an initial three (3) year period
                          commencing 1 June 2017; and
B.                        Authorise the Chief Executive Officer to exercise future options to extend the contract for
                          a further one (1) year period subject to satisfactory performance.

                                                                                                     Page 11 of 131