2017-08-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                 8 AUGUST 2017


Based on the 2016/17FY figures the stopover’s overall trading position is:

Income
   Visitor fees (1,607 nights at $10/night)                 $16,070
Expenses
   Managers’ retainer                                       -$18,250
   Manager’s commission (50% of visitor fees)               -$ 8,035
   Running costs                                            -$ 8,800
Total Profit/Loss                                             -$19,015

The facility is currently trading at a significant loss and the existing management agreement is a
poor financial outcome for ratepayers. Under the current model cost neutrality requires an
additional 3,803 visitor nights (at a net income of $5/night), which would be an increase of 237%
on current patronage. It is prudent Council investigate ways to reduce its costs – particularly for
the major expense of the management agreement.

Management Options

As previously noted, the current management agreement for the site expires in December 2017,
with an option to extend by mutual agreement. In order for Council to consider alternate
management options and the facility’s sustainability more broadly, it is recommended market
interest in running the site be tested through a new expression of interest (EOI) process. It is
recommended EOI’s be sought to manage and market the site, strictly in accordance with the
facilities development approval. It is proposed EOI submitters will nominate the following:
      Proposed management model (e.g. lease or provision of management services)
      Proposed financial offer/fee
      Proposed share of visitor fee
      Qualifications, experience and capacity
      Proposed management and marketing proposals and tools.

The following assessment criteria and weightings are recommended:
     Price and commercial terms – 50%
     Track record and experience – 30%
     Capacity – 10%
     Environmental sustainability and emissions reduction measures – 10%.

A number of potential submitters have been identified and would be directly notified of the EOI.
A further report on the EOI results and future options for the Cooroy RV Stopover would be
presented to Council before the December expiry of the current management agreement.




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