Services & Organisation Committee Meeting - December 2023
Date: Tuesday, 5 December 2023 at 1:30PM
Location: Noosa Shire Council Chambers , 9 Pelican Street , Tewantin , QLD 4565 , Australia
Organiser: Noosa Shire Council
Duration: 00:19:18
Synopsis: Contract Award: Boreen Point to 1EIGHT on 5-yr term w/ 2-yr option, Value: single tender justified, Oversight: fixed-fee revenue share, Pre-caretaker approval, Environment: wastewater costs rise.
Meeting Attendees
Committee Members
Amelia Lorentson Joe Jurisevic Clare Stewart Frank Wilkie Executive Officers
Acting Chief Executive Officer Larry Sengstock AI-Generated Meeting Insight
Key Decisions & Discussions Joe Jurisevic: Appointed Acting Chair as the Chair attended remotely; carried unanimously, with confirmation that the remote councillor did not vote on the chair motion (00:43–01:15; Item 1). Joe Jurisevic: Moved approval for Amelia Lorentson to attend via Microsoft Teams per Local Government Regulation s 254K; carried unanimously (01:18–01:41; Item 1). Committee: Confirmed minutes of 7 Nov 2023 meeting; unanimous (01:46–01:58; Item 2). Committee: Awarded CN00459 Boreen Point Campground Management Services to 1EIGHT Pty Ltd for 5 years from 1 May 2024, with a 1×2-year extension at CEO’s discretion subject to performance; unanimous (18:56–19:07; Item 5.1). Robyn Mercer: Only one tender received (incumbent 1EIGHT) after a 5-week open tender; trend toward regional consolidation of park managers cited (02:27–04:03; 08:55–10:08; Item 5.1). Robyn Mercer: New contract model introduces fixed fee plus revenue share (prior was revenue-share only) to cover baseline services regardless of occupancy (04:27–05:18; Item 5.1). Robyn Mercer: Scope expands outsourced operational tasks (facility management, R&M) reflecting growth of Holiday Parks program since 2019 (04:27–05:57; Item 5.1). Joe Jurisevic: Queried oversight; Mercer outlined cloud-based activity schedule (400–800 tasks per park), monthly maintenance reports, and quarterly site inspections by Council (05:57–06:59; Item 5.1). Robyn Mercer: 1EIGHT’s performance described as “exceptionally well,” with improved visitation, product quality, and collaborative operations (07:12–08:26; Item 5.1). Amelia Lorentson: Probed value-for-money given single bid; Mercer justified ~7% increase (about $48k–$50k) amid 5%–24% input inflation; $90k relates to new fixed-fee portion (10:48–12:22; Item 5.1). Robyn Mercer: Revenues and profits have risen under 1EIGHT; next phase aims to maintain revenue while reducing costs via targeted micro business cases (e.g., asphalt vs road base) (12:22–13:11; 15:23–16:19; Item 5.1). Amelia Lorentson: Raised accessible tourism opportunities; Year of Accessible Tourism grants not available to local government, limiting external funding paths (13:11–14:24; Item 5.1). Robyn Mercer: Accessibility status: flat topography generally, concrete paths (except at Boreen Point), and disabled amenities at all campgrounds (14:24–14:37; Item 5.1). Councillors: Linked campground upgrades to Destination Management Plan and nature-based experience markets; emphasis on first-class facilities (16:19–18:05; Item 5.1). Robyn Mercer: Noted timing to award prior to local government caretaker period (02:27–03:45; Item 5.1). Contentious / Transparency Matters Committee: Proceeded to award despite receiving only one conforming tender; transparency addressed via explanation of market consolidation and open 5-week tender period (08:55–10:08; Item 5.1). Amelia Lorentson: Challenged value-for-money basis amid single bid; Mercer provided inflation benchmarking and cost-base evidence, including detailed commercial inputs from 1EIGHT (10:48–12:22; Item 5.1). Joe Jurisevic: Sought clarity on contract changes and operational controls; Council oversight framework and KPI verification processes were detailed on record (04:03–06:59; Item 5.1). Chair & CEO: Strict adherence to standing orders for in-room chair and separate vote to allow remote attendance under s 254K (00:09–01:41; Item 1). Committee: No deputations or public submissions noted; all items carried unanimously, limiting visible dissent (Items 4, 5.1). Legal / Risk Process compliance: Remote attendance approval cited explicitly under Local Government Regulation s 254K; chair physically present per standing orders (00:09–01:41; Item 1). Procurement probity: Open tender with single response; evaluation emphasized value-for-money, budget compliance, and criteria scoring; risk mitigated by documented industry consolidation rationale (02:27–04:03; 08:55–10:08; Item 5.1). Contract structure risk: Shift to fixed-fee plus revenue share reallocates baseline service risk, stabilizing service delivery during low occupancy; monitor for margin creep against KPIs (04:27–05:18; Item 5.1). Performance oversight: Cloud task registry, monthly reports, and quarterly inspections create auditable trail; maintains accountability for outsourced R&M (05:57–06:59; Item 5.1). Caretaker sensitivity: Award timed ahead of caretaker period, reducing risk of prohibited decisions during election-related constraints (02:27–03:45; Item 5.1). Financial exposure: Cost inflation (5%–24%) and utilities/wastewater variable costs tracked; strategy to offset via operational efficiencies and micro capex choices (12:22–13:11; 15:23–16:19; Item 5.1). Environmental Concerns Robyn Mercer: Boreen Point’s regional setting necessitates wastewater disposal logistics and greater cartage, affecting operating costs and future profitability focus (15:23–16:19; Item 5.1). Councillors: Nature-based tourism positioning tied to trails and campground standards, aiming at low-impact, experience-led visitation (16:19–18:05; Item 5.1). Short Term Accommodation / Holiday Parks Operations Market structure: Regional dominance by single operators noted across Fraser Coast, Sunshine Coast, and Moreton Bay; aligns with Noosa’s consolidation under 1EIGHT for multiple parks (08:55–10:08; Item 5.1). Accessibility: Existing accessible amenities in parks; external Year of Accessible Tourism grants not available to Council, constraining immediate upgrades (13:11–14:37; Item 5.1). Revenue strategy: Past period focused on revenue growth; next phase targets cost-base efficiency while sustaining income streams (12:22–13:11; Item 5.1). KPI regime: 400–800-task schedules per park embedded in cloud platform to systematize maintenance and compliance (06:08–06:38; Item 5.1).
Official Meeting Minutes
MINUTES Services & Organisation Committee Meeting Tuesday, 5 December 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 5 DECEMBER 2023 1. ATTENDANCE & APOLOGIES COMMITTEE MEMBERS Cr Amelia Lorentson (Chair) Cr Joe Jurisevic Cr Clare Stewart Cr Frank Wilkie NON COMMITTEE MEMBERS Nil EXECUTIVE Acting Chief Executive Officer Larry Sengstock APOLOGIES Nil Committee Resolution Moved: Cr Clare Stewart Seconded: Cr Frank Wilkie That Cr Jurisevic be appointed as Acting Chairperson of the meeting due to Cr Lorentson attending via Microsoft Teams. Carried unanimously. Cr Lorentson did not vote in the above motion. Committee Resolution Moved: Cr Joe Jurisevic Seconded: Cr Frank Wilkie That in accordance with Section 254K of the Local Government Regulation, Cr Lorentson is approved to attend the Meeting dated 05 December 2023 via Microsoft Teams. Carried unanimously. 2. CONFIRMATION OF MINUTES Committee Resolution Moved: Cr Frank Wilkie Seconded: Cr Clare Stewart That the Minutes of the Services & Organisation Committee Meeting held on 7 November 2023 be received and confirmed. Carried unanimously. SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 5 DECEMBER 2023 3. PRESENTATIONS Nil. 4. DEPUTATIONS Nil. 5. REPORTS FOR CONSIDERATION OF THE COMMITTEE 5.1. BOREEN POINT CAMPGROUND MANAGEMENT SERVICES TENDER 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 5 December 2023 and A. Award contract CN00459 to 1EIGHT Pty Ltd for the Boreen Point Campground Management Services for an initial five (5) year period commencing 1 May 2024; and B. Authorise the Chief Executive Officer to exercise future options to extend the contract for a further 1 x 2 year period subject to satisfactory performance at Council's sole discretion. Carried unanimously. 6. REPORTS FOR NOTING BY THE COMMITTEE Nil. 7. CONFIDENTIAL SESSION Nil. 8. MEETING CLOSURE The meeting closed at 1.48pm.
Meeting Transcript
Larry Sengstock 00:02.840
Okay. Good to go? Okay. Welcome everybody. As the CEO, I'm opening the meeting because our elected Chair for this meeting is operating online today. So we'll with go through the process of that, but before we do that, I'd like to acknowledge the land on which we meet, the Kabi Kabi People, and pay our respects to their elders, past, present, and emerging. Going forward, I would like to see if we can get a nomination for a Chair. We need to have a Chair who's actually in the room with us as part of our Standing Orders Clare Stewart 00:43.124
So. I'll nominate Councillor Jurisevic. I'll second that. Do I have a choice? No. the Q oh, sorry. She's all right. To allow Amelia to attend so she can vote on this? No, we can do this and then we'll bring Amelia in. So she can't vote on this then? Larry Sengstock 01:03.759
No. So Amelia, you don't vote on this one. We've got a quorum in here to vote for a Chair. All the time, that's unanimous, now over to you, Chair. And we just need to bring Councillor Lorentson into the meeting. Joe Jurisevic 01:29.027
Washington is approved to attend the meeting. I'll move that resolution. Can I have a seconder? All in favour? Carried unanimously. So welcome to the meeting via Teams, Councillor Lorentson. Thank you. Pleasure to be here. Sunny Melbourne, as we understand it. Mm-hmm. So we'll get through the items. One, attendance and apologies. We're all in attendance with Councillor Lorentson now online. Confirmation of minutes from the previous meeting. Can I have a mover? Second. Councillor Wilkie is seconded. Councillor Stewart. Discussion, all in favour? Yes. Councillor Lorentson, that's unanimous. No presentation the deputations, I understand. Today, so we'll move straight on to item 5. Reports of consideration. There is only one report before us today, and that is the Boreen Point campground management services tender. And we have our commercial property officer, Robyn Mercer. Would you like to give us an overview on the tender for the new contract for Boreen Point gathering. Robyn Mercer 02:27.067
Certainly. Good afternoon all. The report presented to you today is for the award of contract CN00459 for management services at Boreen Point contract. The is a five year with a two year extension option. The current contract for management services has been in place since April 2019. The new contract will commence in April 2024 and is being awarded at to the upcoming local government caretaker election period between July and October this year we undertook an open tender process for the contract. The tender was open for submissions for a period of five weeks. One submission was received from the incumbent management contractor 1EIGHT Pty Ltd. 1EIGHT has performed strongly as the management contractor since 2019. The required tender evaluation process was followed with a focus on ensuring submission offered value for money, was budget compliant and scored well against evaluation criteria, particularly in light of there being a single submission to the tender. Overall, the submission demonstrated a thorough understanding of the contract requirements. The evaluation panel concluded that the submission from 1EIGHT offers an advantageous and sound outcome for Council to safeguard the campgrounds operation and financial viability into the future. On this basis, the report recommends award of contract CN00459 to 1EIGHT Pty Ltd. Joe Jurisevic 04:02.662
Thank you Robyn. My understanding from our discussion is that, from what you've written here, it's the same contract that we've had for the last five years but there's a difference in the format of this contract. Can you outline a little bit of the changes that have happened? In relation to the contract and how this will impact on the operations of the tenderer and the returns to Council on the voucher? Robyn Mercer 04:27.789
Certainly. So since 2019, broadly the Noosa Holiday Parks Business Activity has grown in the way that we approach things operationally and contractually. A lot of the operational activities that were managed in-house are now outsourced within our contracting scope of services. So the contract now is different from the one currently in or the contract to be awarded is quite in place based largely on the scale and range of services that we're asking management contractor to provide. In terms of the pricing and how we pay fees for management services the existing contract is a revenue share only within the new contract we introduce a fixed portion in addition to revenue share. Joe Jurisevic 05:19.217
Fixed that portion is based on the level of services now we're asking to deliver? Robyn Mercer 05:24.984
It recognises that regardless of the revenue level we're asking the management contractor to deliver services that need to be done so what sort of services are we talking about? Joe Jurisevic 05:37.931
Things like facility management, repairs and maintenance and they were previously done or arranged by staff in house? Yes contract the previous split off from the iteration of the contract. Off some activities within the management scope of services and now we've got the next iteration where shifts a lot more. So what oversight will Council have in regards to how well those repairs, for example, repairs are undertaken to the standard that we've had previously? Robyn Mercer 06:08.660
Yeah, so we have this approach in place now at all three parks and Boreen Point's the last one to fall in line. We have a really comprehensive list of activities within an Excel activity schedule basically that is between four and eight hundred activities per park. Then, and they have a free. Frequency and a time frame in which they need to be done. We plug them into a cloud-based platform and then the management contractor ticks those off as they're completed and uploads any documents Joe Jurisevic 06:38.434
That's fine, but who's overseeing to ensure that it's actually being done to the level that we require? I oversee that. Okay, so you'll be doing periodic Robyn Mercer 06:47.434
Yes, so we do quarterly inspections. Each month we receive a maintenance report that outlines all the activities that have been done. So I do a reconciliation that the scope of services has been executed. Okay, thank you. Any further questions, Catherine? Frank Wilkie 07:03.958
Just a quick question, what can you say about the track record of this tender? Robyn Mercer 07:11.020
Overall, 1EIGHT performs exceptionally well. We have an excellent contract partnership. I can't hear anything. Has that just happened? Sorry? That's, I can hear now, Thank you. I'll start again. So the growth of Boreen Point Campground over the last five years has been actually quite special to be involved in. The visitation has grown, the product that we have there has grown and 1/8th played a huge role in facilitating that on the ground in terms of guest management, the facility management work, make sure that the product looks sharp and that guests have a high quality tourism product enjoy. Operationally they're collaborative, open to solutions and have a really strong system-based approach within their organisation that means they can deliver quite high-quality services. Not for me, Joe Jurisevic 08:22.440
Thank you. Councillor Lorentson, I believe you might have a question, a hand raised. Amelia Lorentson 08:27.939
Terms of the permissions. The Council only received one conforming submission and you mentioned that there was a five-week advertising period we advertised in the news today. Is it unusual that we've tender? Attender and has anything changed in terms of the evaluation criteria which seems to be quite detailed. Robyn Mercer 08:54.818
Sure, so I guess from a pure procurement perspective it's always pleasing to see competition and multiple options come in from private enterprise but what we're seeing within local government campground and holiday park environments is that it's becoming the trend to have one management operator within a region. So for example at Fraser Coast their four beachfront caravan parks all have separate contractors but the same management contractor. Similarly at Sunshine Coast Council, they have six parks, five of those are managed by across different contracts. And Moreton Bay and others are trending in that direction as well. And of course, that's where Noosa has moved also. So, in that vein, I wasn't surprised to receive one submission. I also would note that Boreen Point campground is our smallest operation. So if another management contractor is wanting to, I guess you call it, have a crack at region, it's probably not their entry point that they would select to do that. Joe Jurisevic 10:08.510
That seems to be indicative of what's happening around the industry. We have these larger operatives that manage a large cohort of parks under their banner. Councils have typically done that in the past too where they self-meditise goes inside correct. Robyn Mercer 10:24.389
And you do get advantages in value for money because a management operator can distribute their overheads and workforce across multiple operations as well. Joe Jurisevic 10:36.810
One website. On okay. What we'll get from cool. Criteria, so I'll be happy to can understand how it's happening. Anything further, Councillor Lorentson? Amelia Lorentson 10:48.628
Yep, I've got a couple more questions. In terms of value for money, there has been an increase in $90,000 I understand from the report is an increase of about 7.14. That's in line with CPIs and how do we ascertain whether, given again we've only had one submission, that we are getting bang for that. Robyn Mercer 11:12.173
Certainly, so just to clarify the $90,000 is the introduction of a fixed fee portion, it doesn't correlate, that's not the 7% value, I think is somewhere here between $48,000 and $50,000 from memory. So overall a 7% increase to our management services was considered reasonable in the current inflationary environment. Council's cost base for Noosa Holiday Parks is experiencing cost increases from about 5 to 21% across our expense base. The submission provided, the submission from 1EIGHT provided really detailed commercial insight into the inflationary pressures that they're experiencing as a way of explaining their pricing and their submission and similarly they are experiencing inflation across their cost base from 5 up to about 24 so in it with that all being considered 7 which is not far off CPI was considered fairly reasonable. We've returned to Council over the last five years has been on the increase year out has it not? Correct we've seen our revenue increase over time our business strategy been to build our revenue but to do that we've had to build up costs to cause that. Moving forward our goal is to maintain revenue but look at how we can do our cost base better so that's the next phase. We yeah that have we can run a number of micro business cases across for example instead of buying 80 cubic metres of road base we can put in an asphalt road so there's we can look at as levers. To improve our cost base Amelia Lorentson 13:07.637
If anyone wants to ask a question I have got one more Councillor Jurisevic you're the only one to with you want to do one? Questions has any questions no worries methodology revenue generation on page 12 of the report the african that you demonstrate or should I say identify opportunities for innovation and improvement my question is have they identified the opportunity in accessible tourism and funding opportunities that are open in that area Robyn Mercer 13:47.461
Yes so this is the Year of Accessible Tourism some of the Year of Accessible Tourism funding that came through as part of the year of accessible tourism we did look at rolling out that program across the Noosa Holiday Parks earlier in the year but the funding isn't for local government so it gets tricky with a contract partner obtaining funding and then Council actually funding it so it's definitely something that we look at it's on the radar but without funding at the moment we haven't progressed any planning in that space it's definitely a topic of conversation though. So just out of curiosity Robin, are there any sites or accessible sites existing already at any broadly speaking the topography at all the campgrounds is flat. With the exception of Boreen Point the other sites have concrete pathways with sufficient widths for wheelchair or other access. We disabled have toilet and shower facilities at all our campgrounds now so in that regard we are ticking some boxes thank you very much you. Frank Wilkie 15:10.057
Just to re-attribute a question, Robin, before you said that revenue has increased and that also the costs have increased, have the profits, what's the trend of profits over the last under this particular operator? Robyn Mercer 15:23.009
Robin before so overall, our profits have grown and the report I put through in August demonstrated that, yeah, and that's across the aggregate as well. Boreen Point and North Shore do offer bigger challenges in maintaining a good level of privacy profitability into the future just because they're more regional and we have to, we have wastewater that dispose of water supply and a lot more trucking and cartage involved operations but overall profit has grown and the cost base when I talk about increasing those are our variable costs so water wastewater electricity gas use all increase as the revenue increases because it's driven by a higher occupancy and visitation I'll say just want to Amelia Lorentson 16:21.103
Thank Robin she does such a great job and we see really great work but you know these are great revenue income streams for Council and I want to thank you because there's so much work behind all of this and you know all the compliance and due diligence so Thank you Robyn because I think everything you touch it turns to gold quite literally so thank you Robyn Mercer 16:40.485
Very much a team effort hi, Amelia Lorentson 16:45.308
Can I just add, I hope Robin that you'll be partaking in our Destination Management Plan. I see our caravan parks as a really great opportunity and leader in sort of experience sort of development I and think I that's the direction I think we need to take as our Council in these sort of transformational type experiences, so I hope that we'll be collaborating with procurement and yourself in this paper. Space, and thank you for all your great work, Robin. Joe Jurisevic 17:21.614
Thank you I'll confirm with the comments around the table. We've certainly seen some enhancements and improvements since you've joined the team with regard to the holiday parks and services in that area in particular. Just come back from New Zealand I saw the benefit of campgrounds and things with when you've got opportunities of experiencing nature in the way that they do there, their tracks and trails are brilliant. As we enhance our I've imagined we'll capture a whole new market. And the opportunities going forward and so yeah, working on these facilities and having these facilities at first class levels will be critical in making sure that those sort of things are accommodated in the future. So thank you for all the effort that you've put in. Robyn Mercer 18:06.143
I think moving forward it's the expansion phase is what we need to consider and how we grow the program. That we because you can clearly, and I've clearly seen from going to these areas frequently that a coffee shop might be able to stay open longer than it normally would have or there's an increased level of service for that community that's driven by having more economic activity within the region so now it's looking at how we do that across more of our Shire which of course brings in land use availability planning constraints and those sorts of considerations the more important sort of struggles to achieve that coffee shop out and that's probably a. It's always open now because I get my front black, yep. Joe Jurisevic 18:54.589
Here's to looking at god's way. Alright, if there's nothing further, I'll put the motion to a vote. All in favour? Carried unanimously. Thank you, Robyn. You very much. Thank you. I'm on a convoy. Thank you all for your attendance. Thank Robyn. Frank Wilkie 19:14.920
You. Thank you. Thanks, Jane. Related Noosa Council Meetings
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