2019-04-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                 15 APRIL 2019


The Boreen Point Campground is located at 1 The Esplanade, Boreen Point. The campground is
a business activity of Council and is operated on a commercial basis to ensure that competitive
neutrality principles required under the Local Government Act 2009 are complied with. The
campground has extensive lake frontage on the shores of Lake Cootharaba and offers powered
and unpowered accommodation options for tents and caravans. It offers a more remote and
nature based experience for customers. The campground has priced peak and off peak and
periods throughout each year, with Council determining the fees for each site type at the site,
which differ according to the period. The rationale is to charge slightly higher fees during peak
occupancy periods, and lower fees during off peak and periods to maximise occupancy levels.

The current management agreement has been in place since 2014. Council appointed on-site
managers to operate within the parameters of the current management agreement and
undertake the majority of operational and day-to-day activities. The current management
agreement structure includes compensation via a fixed price arrangement with an incentive
program from revenue generated by the Campground.

Council also currently undertakes various operational and asset management activities at the
campground, with key functions for Council including capital works and maintenance, contract
administration, provision of supplies as required by the terms and conditions of the management
agreement, and environmental and asset management responsibilities.

The current management agreement is due to expire on 6 April 2019. The 2 x 1 year options
have been exercised under the current agreement with a recent extension granted by Council to
the current managers to 30 April 2019.

2.   Invitation to Tender

In February 2019, Council issued invitations to tender for the management of the campground.
The tender was posted on VendorPanel and advertised in the Sunshine Coast Daily on 16
February 2019 and the Noosa News on 19 February 2019.

Respondents were invited to submit applications through VendorPanel, Council’s e-tender portal,
with applications closing on 12 March 2019. There were 31 downloads by parties/businesses
from the e-portal. A total of five businesses applied to manage the campground in accordance
with the conditions of tender.

Consistent with Council’s tender processes, the following documents were available to
respondents via the e-portal:
 Invitation to Tender – general information for respondents;
 Tender Response Form – enabled respondents to respond to evaluation criteria via response
   schedules;
 Management Agreement – identified management agreement conditions to perform the
   contract and specifically a three year contract commencing on 1 May 2019 with an option to
   extend for an additional 2 x 1 years at Council’s sole discretion;
 Conditions of Tender – Detailed acceptable conduct and obligations of respondents and
   Council and included further detailed information for respondents; and
 Proposed budget - enabled respondents to detail revenue and expense items to manage the
   campground in accordance with the management agreement contract

Specifically, in relation to the proposed budget, tenderers were required to submit a commission
percentage (of the earned revenue of the caravan and camping sites) as the proposed annual
management fee (payable to the tenderer).



                                                                                   Page 9 of 63