2021-08-10 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                 10 AUGUST 2021


recognition and tags, continues to be investigated but to date appears cost prohibitive. Council
has investigated online ticketing and payment products and, together with NNSF, progressed an
option currently used by The J. Desktop testing of its processes indicated that administration of
the system on-board the ferries would slow their existing loading process and introduce significant
new administrative burdens.
Council staff are of the view that a serviceable ferry operation is likely to be limited to only 2
payment options out of cash, eftpos and online payments (rather than all 3, which would be overly
complex for ferry staff). NNSF conducted eftpos trials in October 2020 and March 2021.
4.   Legal Advice
Given recent community commentary regarding the ferry service’s lack of digital payment options,
independent legal advice was sought from King and Company solicitors regarding Council’s
options for introducing new payment methods under the existing lease agreement. The advice
confirmed there are no existing mechanisms under the lease allowing Council to mandate the
introduction of eftpos or other payment platforms as Council has not reserved an entitlement in the
lease to direct the adoption of such payment methods.
King and Company provided further advice regarding the potential for Council to use the ferry
service to control visitors to Teewah Beach (such as via a booking platform or QPWS permit
verification system), as this has previously been raised as a possible means of reducing impacts
from visitor over use. The legal advice is Council would derogate from the grant of rights provided
to NNSF by significantly restricting ferry usage and materially reducing lessee income and could
not do so under the current contract. King and Company also raise significant concerns with the
practicality and efficacy of using the ferry service in this way given Council does not have the
operational power under the lease to reduce general ferry custom by implementing a booking
system. Under the contract, the booking function is an express condition reserved to the lessee.
5.   Independent Review and Proposed Operating Models
Given the current lease conditions and operating model have been in place since 2009, Council
has commissioned economic consultants AEC Group to undertake a review of the ferry service,
including benchmarking against other operations in Australia, market sounding, potential operating
models and recommendations to inform Council’s upcoming tender process. Completion of AEC’s
review is expected in late 2021.
The AEC review will consider a range of different operating models including:
    Full outsource model - Council outsources asset ownership and management of the service
     (current practice);
    Hybrid model - Council owns the assets and outsources management of the service; and
    In house model - Council owns the assets and operates the ferry service.
Once the AEC review is complete, it is proposed a further report be prepared for Council to consider
the identified operating models, contractual arrangements and the upcoming tender process for
the ferry service.
6.   Tender and New Ferry Service Operation Timelines
Preparation of tender documentation will require significant background work (levering from the
AEC report outcomes) noting the new tender will provide the appropriate means for Council to
specify technology and service level improvements and to field proposals from interested parties.
Proposed tender and new ferry service operation timelines are outlined below:
    Early 2022 - development of tender documentation.
    Mid-2022 – tender release.
    Last quarter of 2022 - appointment of new operator.
    End of 2022/early 2023 - operator commissions and builds new vehicle ferries, noting the
     new operator historically has required approximately 12–18 months to complete this work.


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