2019-11-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                               12 NOVEMBER 2019


Since 1 August 2017, due to uncertainty regarding the timing of the site redevelopment,
successive interim management agreements have been agreed by Council to enable business
continuity and for operations to continue during the redevelopment with the current interim
agreement due to expire 31 March 2020.

Accordingly, this report seeks Council approval to extend the current interim management
agreement for a further three months commencing 1 April 2020. This timeframe is suggested for
the following reasons:
 It will allow campground management to continue operations during the immediate post-
    redevelopment phase without a break in business continuity.
 Council will benefit from the existing business relationship with campground management for
    any necessary troubleshooting during the immediate post-redevelopment phase.
 It will allow Council adequate time to undertake the tender process for the provision of
    campground management services after the 2019-2020 Christmas school holiday period.

The incumbent has satisfactorily discharged its obligations in relation to the current agreement to
date.

Previous Council Consideration
Ordinary Meeting Minutes, 20 June 2019, Item 16, Page16

That Council note the report by the Manager Financial Services to the Services and Organisation
Committee Meeting dated 11 June 2019 and pursuant to sections 97, 98 and 262(3)(c) of the
Local Government Act 2009, fix, for the 2019/20 financial year the cost-recovery fees and
commercial charges provided as Attachment 1 to the report.

Ordinary Meeting Minutes, 19 April 2018, Item 2, Page 7

That Council note the report by the Property Manager to the Services & Organisation Committee
Meeting dated 10 April 2018 and authorise the Chief Executive Officer to enter into an extension
to the current agreement with Beachfront Caravan Park Pty Ltd for 11 months commencing 1
June 2018.

Finance
Reduced profitability due to closure of the Campground during the period of renovation and
refurbishment will be offset by longer term revenue opportunities arising from improved and more
attractive facilities, improved site layout and lower wastewater disposal costs.

With the redevelopment capital cost now finalised, fees and charges have been revised to meet
full cost pricing requirements. Market comparison pricing has also been undertaken against
other comparable facilities to ensure appropriate pricing to meet competitive neutrality
requirements.

Risks & Opportunities
Risks
1. Failure to apply the competition neutrality principle via full cost pricing is a breach of the Local
   Government Act 2009, and could also potentially result in competitive neutrality complaints.
2. Failure to extend the fees and charges period exposes Council to a reduction in forward
   bookings and negatively impacts Council’s financial position.




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