2019-11-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                         12 NOVEMBER 2019


12                       NOOSA NORTH SHORE CAMPGROUND - FEES AND CHARGES AND INTERIM
                         MANAGEMENT AGREEMENT
DOCUMENT INFORM AT ION




Author                             Property Advisor – Commercial Property, Robyn Mercer
                                   Corporate Services Department

Index                              ECM/ Subject /8.03; Noosa Holiday Parks Admin

Attachments                        Nil



EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Property Advisor Commercial Property to the Services &
Organisation Committee Meeting dated 12 November 2019 and:
A.                       Amend Noosa North Shore Campground fees and charges in Council’s 2019-20 Schedule
                         of Fees and Charges; and
B.                       Set fees and charges for Noosa North Shore Campground for the period 1 January 2020 -
                         11 July 2021 inclusive as detailed in the tables contained within the report; and
C.                       Authorise the CEO to enter into an interim management agreement for the Noosa North
                         Shore Campground with Beachfront Caravan Park Pty Ltd for 3 months commencing 1
                         April 2020.



REPORT
1.                       Background

In April 2019, the Noosa North Shore Campground (the Campground) was closed for renovation
and refurbishment. Stage 1 works commenced in June 2019 and the tender was awarded for
Stage 2 works in October 2019. All works are due to be completed in January 2020. Forward
bookings for the Campground were suspended in April 2019 due to the site closure.

The purpose of this report is to propose the adoption of fees and charges for the Campground
reopening for the period 1 January 2020 – 11 July 2021 and to extend the current management
agreement. This will enable business continuity and campground operations to continue until a
new tender process is undertaken for the provision of campground management services after
the 2019-2020 Christmas school holiday period.

2.                       Proposed Fees and Charges for adoption

In 2016, AEC Group Pty Ltd was commissioned to prepare a comprehensive financial
assessment of the proposed campground upgrade, considering forward financial projections,
capital costs, operational costs, revenues and customer demand forecasts. With market
comparison pricing also now completed and redevelopment capital costs finalised, forward
financial projections have been revised to inform fee levels required to meet full cost pricing
requirements. All Council business activities are required to operate on a full cost pricing basis to
ensure the competitive neutrality principle is complied with.

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