Services & Organisation Committee Meeting, 8 August 2023
Date: Tuesday, 8 August 2023 at 1:30PM
Location: Noosa Shire Council Chambers , 9 Pelican Street , Tewantin , QLD 4565 , Australia
Organiser: Noosa Shire Council
Duration: 00:38:17
Synopsis: Capital program and resourcing shortfalls reviewed, Asset data gaps prioritised, Holiday Parks strong results and surplus use unresolved, Governance and sustainability updates, Meeting rescheduling to Oct.
Meeting Attendees
Committee Members
Amelia Lorentson Joe Jurisevic Clare Stewart Frank Wilkie Non-Committee Members
Executive Officers
Acting Chief Executive Officer Larry Sengstock Acting Director Infrastructure Services Shaun Walsh AI-Generated Meeting Insight
Key Decisions & Discussions Larry Sengstock: Sought and received unanimous support to defer October General Committee and Ordinary Meeting dates due to LGAQ Conference attendance; new dates 23 and 26 Oct (Item 5.1) (01:57; 5.1). Amelia Lorentson: Managed proceedings and confirmed no deputations; all items carried unanimously (opening; Items 5–6). Melissa Sheppard: Reported 2022/23 Capital Program budget $54.1m with 79% expenditure to 30 June; Infrastructure Services controlled ~$49m, ICT/fleet ~$4.3m (04:15; 6.1). Melissa Sheppard: Clarified road reseal budget is $6.8m with $6.2m spent; corrected internal inconsistencies between pages (04:15–06:16; 6.1). Shaun Walsh: Noted carryover projects and uncertainties tied to resourcing and community consultation around election timelines; detailed briefing scheduled (06:51; 6.1). Shaun Walsh: Identified asset data confidence strong for roads/paths and improving for stormwater, but weak for parks/buildings; prioritising comprehensive asset management (07:55–09:10; 6.1). Shaun Walsh: Stated Infrastructure Planning/Design/Delivery resourcing runs ~2.7% of CWP vs ~5% industry standard; two critical vacancies (design coordinator, transport/traffic) being filled/reclassified (10:55–13:54; 6.1). Shaun Walsh: Committed to provide multi-year data on emergent works value and impacts; consider dedicated emergent-works budget line (15:35–15:54; 6.1). Shaun Walsh: Tender prices generally fixed to expected delivery within ~12 months; procurement specifics to be confirmed by procurement team as needed (16:13–16:41; 6.1). Melissa Sheppard: Strengthening Project Initiation Documents to evidence cost-estimate provenance and recent validation; regular “lessons learned” across large projects (18:02–19:39; 6.1). Robyn Mercer: Holiday Parks delivered $4.2m revenue (+$480k, +12.7%), $1.2m operational surplus (beat budget by ~$470k), 61,219 visitors and 83,240 nights; forward bookings $2.5m (20:53–24:59; 6.2). Robyn Mercer: Reported $25m GDP contribution and 202 FTE using Caravan Industry Association input-output model; Noosa parks performing at top end regionally (25:40–26:47; 6.2). Robyn Mercer: TripAdvisor Travellers’ Choice awards for all three parks; integrated facilities management improved presentation, reduced complaints, and lifted returns (31:40–33:17; 6.2). Robyn Mercer: Metered power heads installed at Noosa River but charging not yet implemented; exploring price/incentive mechanisms to curb electricity/water use (28:34–29:45; 6.2). Robyn Mercer: Considering cabins at Boreen Point subject to comparative analysis of price point vs occupancy; RV market currently served by Cooroy stopovers and self-contained caravans at parks (33:24–37:06; 6.2). Contentious / Transparency Matters Recording accuracy: Transcript shows Brian Stockwell actively questioning and commenting, but minutes list only Cr Wegener as non-committee attendee; ensure attendance records reconcile (07:17–35:18; Minutes 1. Attendance). Report integrity: Internal inconsistencies in reseal program budget/expenditure were acknowledged and corrected on record; underscores need for tighter version control (04:15–06:16; 6.1). Remote participation: Tom Wegener flagged intent to Zoom into an Ordinary Meeting while overseas; clarity needed on permissible participation/voting rules (02:59–03:57; Item 5.1 context). Use of surplus: Holiday Parks surplus destination unclear; suggestion it offsets general rates was discussed but not confirmed—finance to clarify (30:12–31:04; 6.2). Economic impact claims: GDP/FTE figures derived from industry calculator; appropriate for advocacy but should be contextualised as modelled impacts, not direct employment (25:40–26:26; 6.2). Legal / Risk Meeting rescheduling: Acting CEO stated changes are permitted under standing orders; ensure publication and statutory notice requirements under the Local Government Regulation 2012 are met (01:57–02:55; 5.1). Participation by audio-visual link: If councillors attend remotely, confirm compliance with Council’s Meeting Procedures and Queensland legislative settings on quorum, decision-making, and public access (02:59–03:57). Procurement/tender validity: Fixed pricing tied to delivery windows mitigates escalation risk; ensure contract conditions address CPI/escalation and supply-chain volatility (16:13–16:41; 6.1). Asset risk: Gaps in condition data for parks/buildings elevate failure/emergent works risk; prioritise asset management plans and lifecycle funding to meet s.104 LGA principles of sound asset management (07:55–09:10; 6.1). Resourcing adequacy: Delivery team at ~2.7% of program vs ~5% industry poses delivery risk and potential probity pressure; role reclassification and recruitment are mitigating steps (10:55–13:54; 6.1). Holiday Parks: Performance, Strategy, Revenue Use Robyn Mercer: Strong operator performance and integrated management credited for revenue/surplus growth and elevated brand/visitor experience (22:53–23:56; 6.2). Frank Wilkie/Brian Stockwell: Discussed whether $1.2m surplus contributes to general fund and offsets rates; formal position to be confirmed by finance (30:12–31:04; 6.2). Joe Jurisevic: Sought benchmarking against other councils; advised Noosa is at the top end for visitation/occupancy with product differentiation across parks (26:26–27:26; 6.2). Sustainability levers: Considering metered charging/incentives to curb energy/water use and guest behaviours (28:34–29:45; 6.2). Growth options: Exploring cabins at Boreen Point and broader expansion opportunities; RV market currently deemed sufficiently served (33:24–37:06; 6.2). Capital Program Delivery, Asset Management & Emergent Works Road reseals: $6.2m delivered of $6.8m; savings linked to David Low Way emergent funding coming in under budget, not under-delivery (09:10–10:34; 6.1). Pricing rigour: PID enhancements will require recent estimates (e.g., QS) and CPI allowances, reducing reliance on outdated figures (18:02–19:28; 6.1). Emergent works planning: Multi-year quantification requested to inform potential dedicated budget allocation, smoothing delivery and resourcing (15:35–15:54; 6.1). Talent strategy: Near-final hire of a design coordinator with strong precinct/architecture background; transport/traffic coordinator to be reclassified to attract candidates (12:27–13:54; 6.1). Environmental & ESG Considerations Holiday Parks ESG: Next focus is reducing electricity/water usage through metering, pricing, and incentives without dampening visitation (28:34–29:45; 6.2). Operational efficiency: Centralised facilities management has improved asset presentation and reduced complaints, supporting environmental and economic outcomes (32:32–33:17; 6.2).
Official Meeting Minutes
MINUTES Services & Organisation Committee Meeting Tuesday, 8 August 2023 1:30 PM Council Chambers, 9 Pelican Street, Tewantin Committee: Crs Amelia Lorentson (Chair), Joe Jurisevic , Clare Stewart, Frank Wilkie “Noosa Shire – different by nature” SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 8 AUGUST 2023 1. ATTENDANCE & APOLOGIES COMMITTEE MEMBERS Councillor Amelia Lorentson (Chair) Councillor Joe Jurisevic Councillor Clare Stewart Councillor Frank Wilkie NON COMMITTEE MEMBERS Councillor Tom Wegener EXECUTIVE Acting Chief Executive Officer Larry Sengstock Acting Director Infrastructure Services Shaun Walsh APOLOGIES Nil 2. CONFIRMATION OF MINUTES Committee Resolution Moved: Cr Joe Jurisevic Seconded: Cr Frank Wilkie The Minutes of the Services & Organisation Committee Meeting held on 11 July 2023 be received and confirmed. Carried unanimously. 3. PRESENTATIONS Nil 4. DEPUTATIONS Nil 5. REPORTS FOR CONSIDERATION OF THE COMMITTEE 5.1. AMENDMENT OF GENERAL COMMITTEE & ORDINARY MEETING DATES OCTOBER 2023 Committee Recommendation Moved: Cr Joe Jurisevic Seconded: Cr Frank Wilkie SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 8 AUGUST 2023 That Council note the report by the Chief Executive Officer (Acting) to the Services & Organisation Committee Meeting dated 8 August 2023 and request the Chief Executive Officer: A. Defer the date of the General Committee from 16 October 2023 to 23 October 2023 B. Defer the date of the Ordinary Meeting from 19 October 2023 to 26 October 2023 Carried unanimously. 6. REPORTS FOR NOTING BY THE COMMITTEE 6.1. CAPITAL PROGRAM 2022/23 DELIVERY STATUS Committee Recommendation Moved: Cr Joe Jurisevic Seconded: Cr Clare Stewart That Council note the report by the Infrastructure Planning, Design & Delivery Manager to the Services & Organisation Committee Meeting dated 8 August 2023 providing an update on the delivery of the 2022/2023 Capital Program as at 30 June 2023. Carried unanimously. 6.2. NOOSA HOLIDAY PARKS UPDATE Committee Recommendation Moved: Cr Frank Wilkie Seconded: Cr Clare Stewart That Council note the report by the Property Advisor – Commercial Property to the Services & Organisation Committee Meeting dated 8 August 2023 providing an update on operations of the Noosa Holiday Park Business Activity for the 2022/23 financial year. Carried unanimously. 7. CONFIDENTIAL SESSION Nil 8. MEETING CLOSURE The meeting closed at 2:09 PM
Meeting Transcript
Amelia Lorentson 00:04.482
Good afternoon and welcome to the Services & Organisation Committee Meeting today, Tuesday August 8th, I declare the meeting open. First want to begin by an Acknowledgement to Country. I would like to respectfully acknowledge the Kabi Kabi People as the Traditional Custodians of the lands and waters that form the region we call Noosa. Council pays its respect. Elders past, present and emerging and welcomes the ongoing role that the Indigenous people play within the Noosa community. Start by attendance and apologies. DeRosa. Have we have no apologies, Councillor Jurisevic welcome, Councillor Wilkie welcome and Mayor Stewart welcome. I note Councillor Tom Wegener is in attendance in the gallery and that Councillor Finzel is absent. You know, your can I please request before. Commencing the meeting that everyone has their phones on silent or turned off. Start with confirmation of minutes. Can I have a mover? Thank you, Councillor Joe. And a seconder, please. Thank you, Councillor Wilkie. No discussion, all in favour? Thank you. We'll now go to presentations and deputations. There are no presentations and there are no deputations. Reports for consideration of the Committee. We'll move to item number five. Item number 5.1, amendment of General Committee and Ordinary Meeting dates, October 2023, and I'll refer. This to acting this to Acting CEO, Larry Sengstock. Welcome. Can you please give us an overview of the report? Larry Sengstock 01:57.521
This is just a request to data. To change the date of a meeting for our next round, given that a number of um that a number us including myself will be attending the LGAQ conference in Gladstone. It's a very important conference. I think it's something that we get a lot from in terms of a Council and being part of that. So it coincides with the dates. So it's in October. So we're looking to defer the date of the General Committee Meeting from the 16th of October to the and 23rd. And then the Ordinary Meeting which backs onto that from the 19th, defer that to the 26th. So the dates would be 23 and 26 October. So it's really just a formal or formality in terms of we're able to do this. It's within our Standing Orders to do it. And so we're just requesting that we have that put in process. Move, Madam Chair. I'll second it. Amelia Lorentson 02:54.101
Thank you. All I'm done. In favour, aye. Right. Thanks a lot. Well, you got it. Oh, excuse me. We have a question in. Oh, sorry, Tom, that was. Can we. Tom Wegener 03:07.531
I'm not going to change anything, but I just. It's just so ironic that I booked my holiday to Mexico leaving the 23rd, so it's okay because the majority of rules, again, you guys, are definitely more important and I'll still be able to zoom into the Ordinary Meeting on Thursday if at all possible, but it'll be a very awkward time. Adios, muchacha. Gracias. Amelia Lorentson 03:37.141
Thank you, Councillor Wegener. We'll now move on to number six, reports for noting bites. The committee, 6.1, capital program 2022-23, delivery status. And a welcome to the desk. Shaun Walsh 03:55.825
I'd like to introduce shepard. Melissa Sheppard. She's our infrastructure planning officer. Amelia Lorentson 04:02.830
Thank you, Shaun, because I had a bit of a blank as you probably could tell. I appreciate that. And I'm going to actually ask Melissa to present this report and answer Melissa Sheppard 04:15.744
No worries, so I'll just provide a summary on the report to start off with. So the status update of the capital works program as at the 30th of June 2023 reports on our spend of the 22-23 financial year budget for the capital works program, which was $54.1 million. $49.8 million of that was in direct control of the infrastructure services team and the remaining $4.3 million consists of different ICT projects and fleet management. As at the 30th of June 2023, we had expended 79% of that budget. The road reseal program has expended $6.2 million of the $6.8 million budget for the financial or so. Year also. The design services team continued. To support 56 different projects and their own design services projects for implementation with a design and construction value of approximately $16.7 million. And the planning team supporting key master plan initiatives with an estimated future project investment value of $15 million plus. On top of that I would just like to clarify an inconsistency that has been noted within the report. So so on the front page, point four of the executive summary the road reseal budget states six point eight million which is correct but on page three roughly halfway down the page it states a five point seven million dollar budget. I was going to eat. So just to clarify that inconsistency and apologies for that but the statement on the first page in point four is correct at six point eight million. Shaun Walsh 05:52.581
I think you noted that when this report was drafted the expenditure amount was five point nine million but that's now been since corrected in the financials to actually be six point two million of the six point eight million budget. Joe Jurisevic 06:06.498
Yeah, that's correct. The other inconsistency there though is that it says the budget was five point seven million in one page. And it was six point eight million. Melissa Sheppard 06:15.115
Yes, that's correct. So six point eight million is the correct budget value. Six point eight. Amelia Lorentson 06:20.068
And on page twelve just talking about an inconsistency percentage of CWP that's at such a hundred and one percent. Okay, no worries. We get extra here. That's great. 19.1% is the inconsistency. They're overachieving again. That's right. They've all been rounded up. I'm going to throw it to the table, Councillors, do you have any questions please? Joe Jurisevic 06:46.850
Most significant projects that we've got on the agenda that will be carried over as a result of. Shaun Walsh 06:51.760
Yes, Councillors, we've scheduled a workshop or a briefing with you on Thursday of this week to go through the projects which have been carried over and the new projects and to give confidence of the projects that we think we can deliver. There's some uncertainties about the program moving forward due to both resources and also consultation programs in and around the election dates that to ensure the councils are fully across. Thank you. Frank Wilkie 07:17.830
Thank you for the excellent report. I have a question around the emergent works that occur during the 2022/23 financial year. There's a detailed wondering list there, but I'm strategy what strategies you've got in place to help avoid having so many emergent works, and does the increased asset condition reporting, including more detailed components. And componentisation of assets, help us better plan for these, to get in front of these issues before they emerge? Shaun Walsh 07:55.539
Yeah, certainly. Every asset should have a program maintenance period and an end-of-life, you know, expectation date, and that renewal sets up your scheduled. Maintenance program, and then also sets up expectations of when you actually replace the asset. And the more we get to know about our assets, and from the presentation we had from Brian O'Connor last week to Councillor, you know, that's so that have we have confidence with our roads and pathway assets, we have confidence or increasing confidence with our stormwater assets, but we don't have much confidence with our park assets nor our building and facilities assets, and then the next priority. So so that's the first thing. So ideally, we would have a very comprehensive asset management plan, and we can forecast that in coming years, there'll be a lot more accuracy with those asset classes. But then we have to remember that there's always go wrong, you know, whether it's a disaster, and you know, usually they're funded by other agencies, but sometimes we do have to pick up the bill. And also assets don't always perform to their, you know, expected end of life. You know, we've all bought a refrigerator or some appliance which is, you know, meant to last five years or ten years, and it's broken down after two. So, you know, I can't guarantee that there will always be, you know, no emerging asset things. But certainly a better investment in our asset management system would actually help reduce emergent works. Emergent loads. Frank Wilkie 09:14.300
Yeah. The other question was about the $6.2 million expenditure of the $6.8 million Reseal Program. This is really a proactive program, isn't it? So it's not to say that there's $600,000 worth of trouble out there. Like out there, but the roads are was still in pretty good condition. Are any roads suffering as a result of that underspend Melissa Sheppard 09:41.314
Is what I'm saying. I can clarify that one slightly. So the increase in the budget from the $5.7 million that was documented on page three was in regard to the David Low Way works which did come through Council as well for emergent funding that work came in significantly less than what it was budgeted for so there was a short there was sorry a savings made on that additional budget that we had applied for so there was a bit of a savings there which wasn't allocated to a project that didn't progress but instead I suppose a good news story that we were able to undertake the works a little bit Frank Wilkie 10:15.667
So you're I'm going to take the schedule works for this. Just the understandings of the indication of under delivery of the planned works it's a saving. Yes. Well so and well that's a very important distinction. Amelia Lorentson 10:28.536
Well done. And, well, Councillor, directors. Doris. You're the me. I'm raising my hand. Just in terms of human resource capability, I note on page 14 there's reference to staffing shortages in a heated construction market. Do we have currently the capability to manage all these projects and tenders. Shaun Walsh 10:54.181
So that would be the subject of a Council briefing on Thursday to give the Council a lot more information about our current resourcing model. Some of the challenges we have is that as an example which would be subject to a full briefing on Thursday is that our resourcing model runs at about 2.7% of the capital works program with industry standards about five. So we're actually not and when we look at the forecast of the program moving forward particularly with waste projects coming on board but we're more than likely under coming-resourced. So and if you look at the extent of delivery with our resources, we're actually hitting well above the mark. Our ratepayers are actually getting very very good value in terms of the programs we're delivering with available resources. So that's the first area. The other one is about attracting suitable talent that actually is up to the challenges of the projects that we're up to because increasingly these projects which are retrofitting into existing areas of Noosa, whether it's Noosa River foreshore infrastructure or Noosa Junction streetscape, are really complex. Even if we're in Brisbane or Sydney these are very very complex projects and we need to ensure that we've got the right talent to actually lead those. We've got two current critical vacancies within infrastructure planning design and delivery which is the design coordinator role and also transport and traffic coordination so which leads such things as a parking the Transport Strategy so we need to make sure that we've recruited a key talent in those roles to actually confidently lead the programs. Amelia Lorentson 12:22.816
In terms of recruitment, do we outsource that or is that done in-house? Shaun Walsh 12:27.902
We deal with it's supported it in-house so it supported by HR business support. I find the recruitment processes here to be quite efficient so I don't find them to be a hindrance so I've used external consultants in the past and you've got to remember that usually you'd use external consultants for you know Director or CEO levels at this manager or coordinator support to get the right talent is more than sufficient to get the right talent. We're in final negotiations with a candidate for the design coordinator position. I've just got one final referee check to perform. Is that candidate is of quite a different skill set to what we've done previously. It's actually an architect who actually specialises in precinct development yeah also a very large commercial property sector background. So in terms of that sort of talent mix, working with stakeholders of places like Noosa Heads and Noosa Junction should be a really, really good fit. So and used to coordinating all the different disciplines of civil design, may also have architect you know planners to actually deliver a cohesive policy. We're recording for or sort of sourcing a different talent mix to deal with the challenges moving forward. The transport and traffic coordinator that's a very hotly contested skill set at the moment and you'll note that you know we're regularly losing staff to TMR who are trying to resource up their skill sets. So for that role we're actually working with our HR department to have a role reclassification to offer a high level remuneration. And hopefully go out to market because our current recruitment process did not bring forward any candidates that could actually achieve the job so it's Amelia Lorentson 14:01.175
So commendable so we've just been proactive in that space for the criteria yeah to change I think it just gets back to Shaun Walsh 14:10.536
It to ensuring that we've got the right people to lead our community. Through these quite interesting and challenging design exercises Amelia Lorentson 14:21.496
Fantastic. Any other questions? Joe Jurisevic 14:26.276
Report, having the emergent works of the financial year listed in this way I think is something we haven't really seen before. I think it's an important distinction to have that there and make us aware of the level of emergent works that pop up through the year and that obviously has an impact on resourcing capacity to function and deliver on the anticipated capital works program that we started at the beginning of the budget process. I'd be interested to know the value of those emergent works for the workshops coming up. Just as a total, but also as a percentage of the original program, how that impacts, and maybe look back for a couple of years and see how much impact emergent works have had, and maybe get a dollar value or a percentage of the original program, and maybe look at our made me as having work. An emergent works allocation, sitting there ready to go, being part of the overall capital works program, but helping to take that impact off staff, perhaps recognising that we're going to have emergent works coming up, we'll need to be resourced and ready for it. Are it's not a full price Shaun Walsh 15:36.212
I'd be happy to take that request for information on notice, Councillor, and distribute it to the Councillors. I think it would be a Joe Jurisevic 15:41.296
Bit of an art going back for a few years to see what emergent works have popped up and what the impact on the agape Roy program would be. I think that would better inform us as to how we go forward in the budget process. Shaun Walsh 15:50.405
We'll take that on notice and distribute that information to the Councillors. Amelia Lorentson 15:53.327
I have a question in terms of the tender submissions, a little bit of a broader questions. When we go out to tender, do we request prices for six months, 12 months, 18 months? Does that work? Shaun Walsh 16:13.963
So when we go out to tender, we do ask for a time period that the relevancy of the price, which matches when we expect the project to be delivered by. It can vary a little bit and I'd probably prefer if I had someone from procurement. I'd vakuma team me to answer team to answer the question specifically, but there is a forecast that actually assumes that the works will be completed within 12 months and the guaranteed prices has to be delivered within that program. So it's a fixed price for that length of time. Amelia Lorentson 16:42.682
And in terms of deep dives, is there any appetite to have a look at just current blowouts with increased materials and supplies? Are we looking at happened and what we can do better next time round, or are we looking at, you know, things from documentation? If the documentation wasn't adequate, time delays, material costs, et cetera, are you looking at what's happened over the last couple of years to get an idea? How we just don't go back down that space again. Shaun Walsh 17:17.301
Yeah, so there's a couple of things. Firstly, we've been looking at overall market conditions. So material supply seems to be coming down. It seems to be, you know, settling. But labour costs are still going through the roof. So there's still a lot of volatility in this space in terms of capital works. So that's the first thing, understanding what's happening in the industry trends and what the overall proportion increases are. And then second increases had actually had a workshop this morning about the project bid process for the next financial year and also for intimate works. And actually we want a whole new field whereby the project initiators actually describe how they've actually come up with the project cost estimate. And what sort of allowances they've made for do you want to talk more about that Mel, about talking what we were about? Melissa Sheppard 18:02.998
Yeah absolutely. So the current PID has a detailed cost breakdown in regard to internal and external costs but it doesn't provide the initiator the ability to describe where the costs have been obtained, whether they have consulted with different people within the Council such as building and facilities or plumbing or something like that to gain a realistic cost estimate and providing that ability to describe where the pricing has come from and give managers and directors also reassurance to sign off on the project brief to know that they've done that legwork I think will also help and be an opportunity to look back on potential missing items previously that's taken place where we can improve moving forward Shaun Walsh 18:47.994
So it really flags the directors and then you know Council that were put as project initiation but there's a field that says this was a this is pricing in 2018 well that's a flag for all of us that is an inappropriate pricing mechanism you know ideally that field should say this is based on quantity survey estimates obtained last month you know so with a um allowance an factor you know that assumes you know two years of CPI blah blah blah so so it gives you confidence that the budget sum is appropriate. Joe Jurisevic 19:18.275
Yeah because as long as it's been in the drawer for a few years we should then revise the estimates of the project at today's cost. Shaun Walsh 19:28.892
There's more scrutiny that, you know, someone's just not writing a figure that they've pulled out of an old report. A lot more confidence in, you know, a lot more rigour associated with getting the pricing. Melissa Sheppard 19:40.819
Just to Sean. Add on that as well, Shaun, also the design and delivery teams regularly undertake lessons learnt workshops where they sit down and they go through large projects that they've undertaken and completed and reflect on different opportunities. They can improve moving forward as well, so as a group. Amelia Lorentson 20:00.143
More that? Any more questions on the table before we move on? I'll second it, I was just going to second it. Yeah. No more discussion, all in favour please. Thank you. Well done, thank you. Shaun for those amazing words. Mel does all the work. She's so impressive. Thank you. Ashley Sawyer 20:27.855
All right. So we're now moving to holiday parks and a welcome to the table, Robyn. Mercer. Excuse me. Hi, I'm Ashley Sawyer, welcome. Robyn, can I ask if you can just give us a summary of the report in front of us. Thank you. Robyn Mercer 20:53.240
Certainly. So the report in front of you today is providing. An update on the Noosa Holiday Parks Business Activity with a period from 1 July 2022 to 30 June 2023. The report covers off on financial aspects, business outcomes, operational activities, capital works and the economic overall the holiday packs program has performed really well in the financial year just gone. We achieved a revenue of $4.2 million, which was an increase of $480,000 from the previous financial year, representing an increase of 12.7%. We achieved an operational surplus of $1.2 million, exceeding budget expectations by $470,000. Next news of packs. The Noosa Holiday Parks are land designated by state for the purpose of caravanning and camping and recreational enjoyment so it's important that we also measure things like visitation to make sure we're fulfilling that responsibility. In the financial year just gone we accommodated just over 60,000 visitors representing an overall economic contribution of 25 million to GDP. And an employment contribution of over 200 FTE jobs Australia-wide. Looking forward we have secured forward bookings for the current financial year of 2.5 five million already so we've got our eyes on the economy and the health of the economy in terms of people pulling back on discretionary spend but the current position is that I think we're well suited to continue to perform strong. Perform strongly Amelia Lorentson 22:32.991
Thank you I've got a question yes what's your secret I mean these are great numbers you know like financial year increased your funding your revenue increased 23%.3%. We've exceeded budget expectations by $472,000. Hundred and seventy two thousand I mean what's what are you doing to get these great numbers Robyn Mercer 22:53.775
I think we're probably seeing the culmination of three years of work plus a whole lot of activities before that it's never down to one thing it's been collective effort so broadly speaking I think we've got a great operator in place so having a strong contractor ultimately learned is that everything we've got good rules and government governance in place around credits and refunds, things like having a pizza van, our management operator on the ground delivers a really sharp operation and we've been able to get there through our contractual environment I think it's a combination yeah definitely being congratulations yeah it's definitely been a return to that post COVID so I talk quite frequently with the industry association and broadly across Queensland and Australia the industry is certainly heading that way do know parks and areas where they're not seeing that this level of occupancy so I do think we've been able to elevate our product and really create a brand and a destination and a drive tourism destination but definitely the industry is headed that way Joe Jurisevic 24:32.733
Thank you. Paragraph in the summary it's really caught my eye 61,219 visitors not stays. How many nights of stays have we had? Something you can. Robyn Mercer 24:46.862
Yeah, I think nights stayed is. Joe Jurisevic 24:48.745
For some people to stay two nights, three nights a week. Correct. I'm sure I've got that metric. That'll be a figure that'll be interesting to see. Year on, out, how many nights of stays we get in each of those facilities. Robyn Mercer 25:00.300
So overall the night stage, for the financial year spawn were 83,240. Joe Jurisevic 25:04.960
So on average one and a half nights per person roughly. The other interesting thing there, overall economic contribution of 25 million GDP and an economic, sorry employment contribution of 202 full-time jobs. Now we wouldn't have employed 202 people full-time in three caravanning, camping facilities. Nor would we have generated 25 million dollars in GDP. So how do those, how are those figures generated and how are those, how is that. Was how was for that employment contribution calculated? Robyn Mercer 25:39.040
Yeah, so the caravanning industry association of Australia has a research body and they have an online calculator that enables you to put in the number of nights sold the total revenue and from there they have a background calculation that does input-output modelling to say, well, if you look through the entire supply chain from the point of someone selling a caravan through to the point of someone cleaning an amenity block, if you've got this much visitation and revenue, what's the total value of that through the supply Joe Jurisevic 26:09.101
Chain? So it's formula driven? Robyn Mercer 26:11.164
Yes, formula driven, yeah. They have a very robust and comprehensive research team. For the Australia-wide program. So that's a GDP, that's a gross domestic product contribution and an Australia-wide employment contribution. Joe Jurisevic 26:27.111
And out of the number of nights and visitors that we have, how would we compare with other parts can pay I mean, are we high visitation, low visitation, medium visitation? How do we compare? That would be interesting to see how Noosa is a destination for a caravaning and camping locale that compares to other locales. Is that something that can be readily. Robyn Mercer 26:48.637
Sure, so a lot of these statistics are driven from the booking system. I know from speaking with my counterpart at Sunshine Coast Council that their parts enjoy a high level of visitation. They run similar to the Noosa River model where you get the sort of four to six week stay so their occupancy is often exceeding 90%. Boreen Point and North Shore are a different product. They're a regional location and that hybrid camping and caravanning destination. I know from talking with counterparts at Fraser Coast or Rockhampton and Livingstone that we're performing at the top end. Amelia Lorentson 27:27.360
In terms of localised data, do we have the any understanding of contribution to our own local economy and do you work with Tourism Noosa in scraping that data? Robyn Mercer 27:44.822
Yeah, so so there's a couple of the people at Tourism Noosa I've sat down with their data officer so we catch up every now and again and I keep an eye on their, as the Noosa Holiday Parks we have a membership with Tourism Noosa so I jump on and have a look at their statistics. Think I the of our regional contribution the caravanning association of Australia did used to have a regional calculator but I think it got difficult for them to input all the background that was each area last time that calculator was operational their regional contribution was 15 million yeah. Joe Jurisevic 28:26.174
One other question, Robyn we weren't were talking about the powerheads and that being installed. Have we finished installing those yet? Are they in place and working or? Robyn Mercer 28:35.272
Yeah so um a couple of years ago we installed metered powerheads um at the Noosa River Holiday Park with the intent to charge for electricity and drive down consumption um influencing it through a price point. COVID sort of stepped in um and from there we've also focused on other areas of the parks and building them up to get to this point of revenue and surplus. Our next focus is around sustainability how do we drive down our water usage? How do we drive down our electricity usage? Really taking that ESG look over the whole program and part of that will be how do we encourage our guests to not leave their aircon air con on while they go go to the beach for five hours and those types of things and one of those mechanisms is to encourage that with a price or a cost but there might also be an incentive mechanism whereby they're incentivized to reduce their usage so there's a couple of drivers so that we need to explore there and we'll bring those to a workshop to. Joe Jurisevic 29:38.198
I thought we already sourced and installed those powerheads. They're installed and they're ready to go. We haven't implemented them yet. Robyn Mercer 29:47.460
Because the implementation requires an interaction with our guests as the key stakeholder and we've got to balance that out with visitation and appetite for wanting to come to the park. So we've really had to try and take a balanced approach I'm comfortable where we've got to as a business operation now that we can take that next step. Frank Wilkie 30:14.622
You very much. Robin, I see this one.23 million surplus is it going to the general fund or are you able to, is your department able to handle that for reinvestment back into the holiday parks? Robyn Mercer 30:30.802
I would probably defer the detail of that to Trent for an answer. I do know that typically it's been a general rate contribution. I think they might be moving towards that. Yeah, I might leave that with Trent because there may be a different approach Frank Wilkie 30:45.466
In that space. Well, in that case, that amount accounts for, is the equivalent of about 2.5% rates increase that we didn't need to impose on ratepayers. That's right. So that shows the value to ratepayers for real investment in these holiday parks. Absolutely. Not only does it provide an affordable holiday option for families and residents in Noosa Shire, like you say, rishishah, it's. That's the culmination of a lot of great work over many years, moving towards the integrated management model. We've got one operator and a consistent management approach to all three holiday parks. We've got record visitation overall, record. Returns. What is the significance of the Tripadvisor award that you got there? What is that? And how significant is it? Robyn Mercer 31:40.650
Yes, the last year in 2022, all three parks received the traveller's choice award. That's fantastic. Significance-wise, I guess it's semantics. The metric of how you're perceived within the consumer industry. So, to get an award across all three parks is not something that we'd achieved before. Noosa River's always performed strongly in that space, but for me, the significance is getting those awards for our regional areas, which are maybe not so well known, but offer a really unique and wonderful, you know, visit or tourist experience to our region and something different to the main hub. It was really pleasing to receive those. Frank Wilkie 32:22.224
And you've increased the revenue not only by record visitation, but also really environmentally and economically responsible practices in terms of managing your expenditure. Which is fantastic. Robyn Mercer 32:37.456
We've been able to drive savings through an integrated facilities model whereby we package up all the works for our facilities management and engage all those activities through a centralised approach. So we're able to get value for money. Resources can be deployed more effectively across a range of activities and it delivers multiple things. It's driven down. Customer compliance. Complaints, it's driven up revenue, it's contributed to the overall look and feel. I know going to the parks now they just look sharp and well presented. Frank Wilkie 33:17.732
Is it true you've made a difference? True you may be considering cabins for Boreen Point? Or is that just a loose, some loose talk when I look at it? Robyn Mercer 33:25.513
Oh look, I'm always considering ways of improving the commercial return, but I guess the way up is if you convert a camping site that's, say, being occupied at 80% and then you invest into a cabin that might have a higher price point but then a lower occupancy because it might just be a weekend, you really need to do that comparative analysis about where you'll end up and where's the right place to do that. And that'll give you an indication of what people want as well. Correct. Frank Wilkie 33:57.728
Apart from saying this is a report you ought to frame because it's a beautiful set of numbers and. Something you can really be proud of because it is a combination of a lot of work over many years. It's very team player of you. My only question, and it's not a negative, is the only holiday park that has fewer visitors than the previous years, is the Noosa River Holiday Park. Do you have any sense of what might be going on there and why the numbers are stronger in other areas, in other parks? And they haven't surpassed their previous levels. Robyn Mercer 34:43.078
So I think in terms of visitor numbers, it can depend on the customer segmentation. So there might be less families where there's four within the visitation. For that night and down to a couple that might be- yes. Yes, so I haven't put occupancy in largely because occupancy is driven by the number of sites and that's changed over time. So it's been difficult. For a true measure. So I would say with Noosa River our revenues are high and the occupancy is high. We just might have less visitors because our visitor groups may not have more couples than families. Joe Jurisevic 35:19.063
Yeah, that's it. Besides that, be you ought to buy a boat. Occupied for the same number of nights but if there's four people in a site space and two people in a site with a caravan, based on family, the visitor numbers appear down but the visitation percentage of occupancy is probably as high. That's right. Don't move this one. Amelia Lorentson 35:36.220
I'll see. I've got another question before I ask the reviewer. In terms of expansion of existing holiday parks and opportunity for new holiday parks, we've already been in discussion about Johns Landing. My question is the RV market. That's a huge market. And when you're talking before about cabins and the cost of having cabins, RV markets don't have all that- they don't need toilets because the toilets are already built in there. Um it's a totally different model. Has there been any consideration in exploring opportunities with RVs? Robyn Mercer 36:14.198
Yeah, so within our region there's two RV stopover parks currently located in Cooroy. And one is on Council land and it's coordinated by the chamber of commerce there. In terms of demand for more, we're not. I looked at the numbers for Cooroy RV a couple of weeks ago and I think there's more space still to take up more it was needed. It is an interesting space in that they are self-contained. I think we need to remember, for example, at Boreen Point campground, we do have a lot of caravans that are self-contained. Themselves and they use their own facilities. So in a way, we do have that market. It's just not labelled as an RV market. Joe Jurisevic 36:58.001
We've got camping spots available. You've got camping spots and power sites and service sites, you know, sites that all of these, you know, can facilitate, depending on the services that they require. Robyn Mercer 37:07.943
But in terms of expansion, I think we definitely, the demand and the uptake of our sites is starting to provide a compelling case for expansion into other areas and now building our program into other locations. Amelia Lorentson 37:21.826
Thank you. Can I have a word of Council? Yes, Madam Chair. I'll second that. Ms Stewart, no more discussion? No, just congratulations and thank you. Absolutely. Clare Stewart 37:32.971
Big team effort. Yeah, well done. And to the team, Robin, thank you. But you worked so hard. Thank you. That's amazing. Thank you very much. Thank you. Amelia Lorentson 37:40.671
Thank you, Councillors. All in favour? Please. Great. Unanimous, thank you. There's no confidential matters to be discussed today. Know so I note that this meeting is closed at the time 2:10 this past 2:00 and the next meeting will be the General Committee next Monday. Thank you, Councillors. Well done, Madam Chair. Thank you, Madam Chair. And welcome again. Well, see you. Thank you. The session is now closed. Related Noosa Council Meetings
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