2019-04-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   15 APRIL 2019


Scoring within the criteria included an appropriate weighting on financial viability and
demonstrated business acumen given the value of the contract and the associated risk. As part
of the evaluation, external support was engaged by Council to conduct a financial analysis of the
budget figures (and their proposed operational cost base) and commission percentage submitted
by each tenderer. The results of the financial analysis were presented to the evaluation panel
and were used to inform the scores given to each tenderer. Financial viability via NPV analysis,
sensibility and sensitivity testing of tendered financial estimates was undertaken to support the
financial scoring assessment.

Following the initial tender evaluation, all the tenderers were asked to submit further information
or clarification via the Notice to Tender process, coordinated by Council’s Procurement staff. This
information and/or clarification was subsequently provided to Council, allowing for a well informed
and comprehensive evaluation process to be completed.

The preferred tender was submitted by 1Eight Pty Ltd. Their tender scored highly for track record
experience, capacity and methodology which are critical criterion (to ensure business continuity).
A three (3) year contract is recommended commencing on 1 May 2019 with an option to extend
for an additional 2 x 1 years at Council’s sole discretion.


Previous Council Consideration
Ordinary Meeting Minutes, 21 March 2019, Item 2, Page 7
That Council note the report by the Property Manager to the Services & Organisation Committee
Meeting dated 12 March 2019 and authorise the Chief Executive Officer to enter into an interim
management agreement for the Boreen Point Campground with Crimmins Enterprises Pty Ltd for
the period 7 April 2019 to 30 April 2019 inclusive.


Ordinary Meeting Minutes, 3 April 2014, Item 9, Page 8
That Council note the report by the Property Officer, Property and Land Management to the
Planning & Organisation Committee dated 25 March 2014 and:
A.   Award contact 1314T001 to Crimmins Enterprises Pty Ltd for the Boreen Point
     Campground Management Service Agreement for an initial three year period commencing
     7 April 2014 and expiring 6 April 2017, and
B.   Authorise Property and Land Management to exercise future options to extend the contract
     for a further two (2) periods by twelve (12) months subject to satisfactory performance.

Finance
The preferred tenderer’s submission results in a $19,000 additional cost to Council’s net
operating position compared to the 2018/19 budget. This is expected to be offset by a
professional commercial operation (with the experience of currently operating two other holiday
parks) and marketing campaigns to increase occupancy levels and overall revenue at the site.
The new management agreement model also reduces staff administration effort including
devolving Council of operational supply responsibilities. This staff effort will be redirected to
higher value commercial opportunities.
Financial returns from the Holiday Parks business activity (comprising one holiday park and two
campgrounds (2018/19 budget $900,000)) are utilised to offset the cost of general rate funded
Council activities, which avoids the need for higher general rating levels to comply with Council
financial sustainability policy requirements.




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