2017-04-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                   11 APRIL 2017


Council also currently undertakes various operational and asset management activities at the park,
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 expiry of the current management agreement has presented an opportunity to review the
current delivery model in place to address identified contractual and administrative inefficiencies.
The new agreement proposes to transfer a number of financial and operational responsibilities to
the managers to create a more contractually and administratively efficient management
environment for both the managers and Council staff. This revised management agreement
prepared and finalised prior to the tender, was provided as part of the invitation to tender
documentation.

The current management agreement is due to expire on 31 May 2017. The option for extension
under the current agreement has been exercised by Council, in addition to several further approved
extensions to allow time for appropriate asset management planning to occur, and for the
development of the new management agreement to address the current contractual and
administrative inefficiencies.

2    Invitation to Tender

In January 2017, Council issued invitations to tender for the management of the park. The tender
was advertised through LG Tenderbox (Queensland Wide), the Noosa News and the Sunshine
Coast Daily.

Prospective tenderers were invited to attend an industry briefing and site inspection on 13 February
2017 at the Noosa River Holiday Park. They were given the opportunity to inspect the facilities,
including plant rooms and the residence, in addition to asking questions and seeking clarification
from Council representatives.

Tenderers were also provided a copy of the new management services agreement which proposes
a three (3) year contract commencing on 1 June 2017 with an option to extend for an additional
one (1) year at Council’s absolute discretion. The tenderers were asked to submit a commission
percentage (of the earned revenue of the caravan and camping sites) as the proposed annual
management fee. The intent of this approach was to allow tenderers to demonstrate their
understanding of the site’s operational cost base, their expectations around earnings and to exhibit
their business and financial acumen.

The tender documentation noted that there is no applicable rise and fall provision, with the
commission percentage to remain fixed for the entire duration of the contract. Tenderers were also
asked to complete a proposed budget with estimated annual revenues and operational costs for
the initial three year management period, and the option extension period.

3    Submissions

The tender closed on 24 February 2017, with Council receiving five (5) conforming submissions as
follows:
1.    Anvera Pty Ltd trading as Dineen Tourism Management;
2.    BA & SK Management;
3.    Village National Facilities Management Pty Ltd;
4.    Australian Tourist Park Management Pty Limited; and
5.    Flair Hotel Group Pty Ltd.




                                                                                     Page 52 of 71