2021-08-10 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                   10 AUGUST 2021


The proposed 2 year lease extension period extending the lease expiry to 30 June 2024, will allow
continuity of the current service and also the required lead time for tendering and new contract
commission for a new ferry operation to commence on 1 July 2024.

7.      Next steps
The following two primary options are available to Council with respect to the current agreement.

Option 1 – Award Remaining Lease Extension
This option involves awarding the remaining lease extension provided for under the contract and
continuing lead in work for preparation of the upcoming tender.
Opportunities
       Allows time for completion of the independent review currently underway to inform a new
        tender process and tender lead-time to allow potential for commissioning of new vessels
        under the next contract.
       Allows NNSF and Council staff to work collaboratively and in good faith to progress long-
        term trial of eftpos payments.
       Defers potential for impacts on ratepayers that may stem from a new contract reducing
        Council’s financial return.
       Avoids potential contractual dispute by Council forcing eftpos onto NNSF when there is no
        current contractual basis for doing so.
Risks
       May not meet expectations of some community members seeking increased levels of service
        and/or a change in service provider in the short term.

Option 2 – Not Award Remaining Lease Extension
This option involves not awarding the remaining lease extension provided for under the contract
and proceeding straight to a new tender.
Opportunities
       Brings forward the opportunity to enter a new contract that will allow an increase in levels of
        service, such as technology advances and new vessel procurement.
Risks
       Does not realistically allow sufficient lead-time necessary for award of a contract to a new
        service provider.
       Does not allow sufficient time for detailed analysis and preparation of new tender documents.
Given the need for a substantial lead-time for the new ferry service tender and the independent
review underway to inform that process, it is recommended Council proceeds with Option 1 and
grants the remaining 2-year lease extension to NNSF.
NNSF has indicated it is considering further trials of technology such as eftpos and Council staff
will continue to work with the operator to aid the introduction of that payment option.
Previous Council Consideration
Ordinary Meeting Minutes, 18 April 2019, Item 4, Page 11
That Council note the report by the Property Advisor to the Services & Organisation Committee
Meeting dated 9 April 2019 and:
A.      Note the operator’s request for a 5-year extension to the existing ferry lease;
B.      Subject to obtaining the operator’s agreement, agree to only extend the lease for 3 years

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