2022-10-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            11 OCTOBER 2022


REPORT
1.    Purpose
The purpose of this report is to provide the results of the Noosa North Shore ferry service tender
process and seek Council endorsement to enter a new contract for the provision of the Noosa
North Shore ferry service from 1 July 2024.
2.    Background
Council operates the Noosa North Shore ferry service via a commercial service agreement. The
service provides the primary vehicle access to residents, workers and visitors to the Noosa
North Shore. The current contract commenced in 2009 and is in its final option term, ending on
30 June 2024.
To inform the tender process Council undertook independent reviews of the ferry in 2019 and
2021, with the latter undertaken by AEC Group economic consultants. AEC’s review included
assessment of operating model options, risks analyses, available technologies and financial
viability. AEC also undertook stakeholder consultation and market sounding to identify potential
service providers.
Council agreed to proceed to tender for a fully outsourced service model at its March 2022
Ordinary Meeting.
3.    Contract Scope and Pricing Structure
The requirements for this tender outlined the full provision and operation of a cable-operated
ferry service meeting minimum ferry design specifications and including: a minimum of 2 x 10
vehicle capacity vessels; a minimum vehicle handling capacity of 240 vehicles per hour (vph)
for peak directional demand; electronic payment systems; and minimum insurances.
Council’s tender documents comprised:
     Invitation to Tender
     Procurement Conditions
     Scope
     Response Schedules
     WH&S Questionnaire
     Environment & Sustainability Questionnaire
     Historic Annual Ferry Crossing Data
     Monthly Ferry Crossing Data
     Ferry Crossing Adopted Fees and Charges
     Operational Procedures for Concessions and Prepaid Vouchers
     Holland Traffic Consulting Technical Note Re Demand, Vehicle Handling and Queue
      Management
     Council Report Re Noosa North Shore Ferry and Proposed Tender, March 2022
     Locality and Site Plan
     Site Infrastructure Plan
     Draft Service Agreement by King and Co. (draft contract)
Further Queensland Parks and Wildlife vehicle and camping permit data was also provided
during the tender period.
Respondents were invited to submit prices comprising of two components:
     An annual fixed fee; and
     A revenue share percentage, for revenue exceeding the annual fixed fee.
This fee structure was previously identified in the independent service review as optimal to
provide certainty for funding of the minimum fixed cost of a service contract, with a revenue
share component that provides both a performance incentive to the market as well as shared
risk mitigation in the event of future fluctuations or reductions in customer demand. Council

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