2017-10-13 Special Meeting

SPECIAL MEETING AGENDA                                                           13 OCTOBER 2017


At its Ordinary meeting on 21 September 2017, Council resolved to:

Note the report by the Economic Development Manager to the General Committee Meeting dated
18 September 2017 regarding tender 1617T130 for the provision of Management Services –
Peregian Beach Digital Hub: and:
A.    Notify tender submitters that a decision on tender 1617T130 is on hold while Noosa Council
      further considers the business case of the Peregian Digital Hub project; and
B.    Request the CEO to arrange for advice to be provided to Council on strategies to meet
      Council’s broad intentions for the Peregian Digital Hub.

Following this decision and discussions with Councillors at a workshop on the 22 September 2017,
staff sought independent legal advice with regard to the tender process undertaken to date. Based
on this advice from King and Co Solicitors, the lack of any return on its investment and the different
management and financial models proposed by the tenderers, it is recommended that Council not
award tender 1617T130 and cease the [current] tender process. Section 228 (8) of the Local
Government Regulation 2012 and Conditions of Tender clause 14.1 allows Council to take this
approach.

Ceasing the tender process at this point will also enable Council to consider the business case and
to clarify and confirm its intentions for the Digital Hub.

Next Steps
Pending Council approval of the recommendation included in this report, the suggested next steps
are to:
1.    Notify all Tenderers of the decision;
2.    Further consider the business case and management models to meet Council’s intentions
      for the Digital Hub; and
3.    Communicate with all interested parties these next steps.

Previous Council Consideration

Ordinary Meeting Minutes, 21 September 2017, Item 7, Page 18
That Council note the report by the Economic Development Manager to the General Committee
Meeting dated 18 September 2017 regarding tender 1617T130 for the provision of Management
Services – Peregian Beach Digital Hub; and
A.    Notify tender submitters that a decision on tender 1617T130 is on hold while Noosa Council
      further considers the business case of the Peregian Digital Hub project; and
B.    Request the CEO to arrange for advice to be provided to Council on strategies to meet
      Council’s broad intentions for the Peregian Digital Hub.

Finance & Risk
Finance
The recent tender process tested the market and Council’s business case for the management of
the Digital Hub, with the outcomes of the tender responses indicating a different financial outcome
than originally anticipated by Council. Given this outcome, it is considered prudent and practical
for Council to not award this tender and further consider the business case and strategies to more
closely align to Council’s intentions for the Hub.




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