2019-04-09 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                     9 APRIL 2019


3                       NOOSA NORTH SHORE FERRY SERVICE REVIEW AND LEASE EXTENSION
OCUMENT INFORM AT ION




Author                             Property Advisor, Denis Wallace
                                   Corporate Services Department

Index                              ECM/ Applications / LEAS13/0040/ 59.05 Noosa River Ferry Services

Attachments                        Nil



EXECUTIVE SUMMARY
Council operates the Noosa North Shore Ferry service via a commercial lease agreement
currently held by Noosa North Shore Ferries Pty Ltd. The service provides the primary vehicle
access to residents, workers and visitors to the Noosa North Shore and is one of the busiest
vehicle ferries in Australia. The current lease is due to expire in June 2019 and includes
provision for one 5-year extension only, which the ferry operator seeks to exercise. Council’s
primary options are to agree to extend the existing agreement or proceed to a public tender for a
new lease.
To assist consideration of the options and in response to resident feedback, a review of the
service was undertaken, which concludes:
                      Hours of operation should be maintained at current levels;
                      A change to service levels to mandate operation of two ferries at set times would be likely
                        to be costly, deliver only limited queuing efficiencies and require significant Council
                        subsidisation;
                      Whilst the current cash ticketing system provides a simple and robust system, customers
                        will increasingly expect digital payment options and opportunities should continue to be
                        explored;
                      There is opportunity for simplification and improvement of the current concession system
                        which could benefit ferry users, the operator and Council. Staff should continue to explore
                        opportunities to improve this system;
                      Creation of priority slip lanes is not supported due to concerns with efficacy, safety,
                        vegetation removal and cost.
Based on the service review findings and the good track record of Noosa North Shore Ferries in
operating the service continually for 20 years, it is recommended Council agrees to extend the
existing lease.

RECOMMENDATION
That Council note the report by the Property Advisor to the Services & Organisation Committee
Meeting dated 9 April 2019 and
A.                      Agree to extend the existing ferry lease for 5 years from 1 July 2019 to 30 June 2024;
B.                      Request staff further investigate opportunities for a simplified concession system, as
                        outlined in the report;
C.                      Note that opportunities for digital technology introduction will continue to be explored but
                        any material changes to service levels are to be addressed in a future tender process.




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