2017-04-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                      11 APRIL 2017


5                        NOOSA RIVER HOLIDAY PARK MANAGEMENT SERVICES CONTRACT - TENDER
                         1516T078
DOCUMENT INFORM AT ION




Author                              Property Officer, Michelle Stirling
                                    Corporate Services Department

Index                               ECM: Subject/ 8.1 Noosa Holiday Parks Admin

Attachments                         1.    Tender Evaluation Matrix


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Property Officer to the Services & Organisation Committee
Meeting dated 11 April 2017 and:
A.                       Award contract 1516T078 to Anvera Pty Ltd trading as Dineen Tourism Management for the
                         Noosa River Holiday Park Management Services for an initial three (3) year period
                         commencing 1 June 2017; and
B.                       Authorise the Chief Executive Officer to exercise future options to extend the contract for a
                         further one (1) year period subject to satisfactory performance.



REPORT
1                        Background

Council operates one holiday park and two campgrounds, Noosa River Holiday Park, Boreen Point
Campground and North Shore Beach Campground as Council business activities, which offer a
variety of unique experiences for visitors.

The Noosa River Holiday Park is located at 4 Russell Street, Noosaville. The park is a business
activity of Council and is operated on a commercial basis to ensure the competitive neutrality
principles required under the Local Government Act 2009 are complied with. The site has extensive
river frontage and offers a range of short and long stay powered and unpowered accommodation
options for tents and caravans. The park has an annual powered site average occupancy level of
99% and an average patronage of 300 people / night. It is reasonably described as a high intensity
accommodation site.

The park has priced peak, off peak and shoulder periods throughout each year, with each period
experiencing only a slight variance in occupancy levels, and therefore revenue. Council determines
the fees for each site type at the park, which differ according to period. The rationale is to charge
slightly higher fees during peak occupancy periods, and lower fees during off peak and shoulder
periods to maximise occupancy levels.

The current management agreement has been in place since 2010. Sunshine Coast Regional
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 commission based management
fees based on a percentage of earned revenue (exclusive of GST).


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