2018-01-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                               15 JANUARY 2018


REPORT
1.   Background
The purpose of this report is to provide the results of a recent Expression of Interest (EOI)
process for management services for Council’s Cooroy RV Stopover facility.
Council operates the Cooroy RV Stopover on freehold community land at 17 Mary River Road,
Cooroy. The facility was established in 2015 to address an identified need for RV travellers in
the Noosa hinterland. It was intended the facility would operate for a two year trial period and be
subject to a review.
The development approval obtained for the facility allows it to accommodate up to 40 fully self-
contained Recreational Vehicles (RV’s), subject to conditions that include:
   Maximum of 4 night stays;
   Requirement for an on-site caretaker;
   Disaster management requirements; and
   No on-site release of grey water or waste permitted.
Visitors are currently charged $10 per night per RV. Site improvements include a public waste
dump point, signage, access gates and access controls. Amenities are available on-site for the
caretaker only and all visiting RV’s must be fully self-contained. The facility is managed under a
third-party management agreement, the manager’s primary responsibilities are:
   Day-to-day operation of the facility in accordance with the development conditions and
     workplace health and safety requirements;
   Management of bookings and visitor fees;
   Appointment of on-site caretakers (for periods not exceeding 3 months);
   Providing summary reporting to Council on visitor numbers; and
   Enacting disaster management plan requirements (mainly in relation to rainfall events, as
     the site is within Cooroy Creek’s flood plain).
A report reviewing the performance of the RV Stopover was considered at Council’s August 2017
round of meetings. The report noted the facility:
   Achieves modest patronage, with 1,607 visitor nights recorded for FY2016/17 at an
     average of 5 RV’s per day;
   Operated at a loss of approximately $19k in 2016/17;
   Would require significant patronage increases to achieve cost neutrality under the current
     model; and
   Now competes with an alternate private facility established on the outskirts of Cooroy,
     known as the Cooroy No Worries RV Stop.
The report identified the current third-party management services arrangement, which involves
remuneration of $18,250 per annum plus 50% of visitor fees, as the facility’s primary cost. In
accordance with the report recommendation, Council resolved to explore ways to reduce the cost
of the management services via a new expression of interest (EOI) process.




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