Services & Organisation Committee Meeting, 5 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 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 00:03.541
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 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 so. I'll nominate Councillor Jurisevic. Unidentified Speaker 00:45.080
I'll second that. Joe Jurisevic 00:47.163
Do I have a choice? No. Amelia Lorentson 00:50.499
The Q&A. Oh, sorry. She's all right. Larry Sengstock 00:56.283
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? No. So Amelia, you don't vote on this one. We've got a quorum in here to vote for a Chair. So all in favour? No votes, yep. That's unanimous, now over to you, Chair. And we just need to bring Councillor Lorentson into the meeting. Joe Jurisevic 01:29.228
That Cr Lorentson 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. Amelia Lorentson 01:41.794
Thank you. Pleasure to be here. Joe Jurisevic 01:43.189
Sunny Melbourne, as we understand it. Mm-hmm. Uh so we'll get go 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. Presentation no of deputations, as I understand it today. So we'll go straight on to item five. 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. Robyn, would you like to give us an overview on the tender for the new contract for Boreen Point gathering. Robyn Mercer 02:27.457
Certainly. Good afternoon all. The report presented to you today is for the award of contract CN00459 for management services at Boreen Point. For management services has been in place since April 2019. Awarded at this time due 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 campground's operation and financial viability into the future. On this basis the report recommends award of contract CN00459 to 1EIGHT Pty Ltd. Thank you. Joe Jurisevic 04:04.063
My understanding from our discussion says, from what you've written here, that 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 04:28.090
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 quite different from the one currently in or the contract to be awarded is quite different from the one in place based largely on the scale and range of services that we're asking management 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 a revenue share. Joe Jurisevic 05:19.744
That fixed portion is based on the level of services now we're asking to deliver? Robyn Mercer 05:25.365
It recognises that regardless of the revenue level we're asking the management contractor to deliver services that need to be done regardless of occupancy levels. So what sort services are we talking about? Things like facility management, repairs and maintenance Joe Jurisevic 05:42.241
And they were previously done or arranged by staff in house? Robyn Mercer 05:46.348
Yes the previous iteration of the contract split off some activities within the management scope of services and now we've got the next iteration where it shifts a lot more. Joe Jurisevic 05:58.272
So what over cycle Council have in regards to how well those repairs, for example, repairs are undertaken to the standard that we've had previously. Robyn Mercer 06:09.206
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. We then, and they have a frequency in 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 06:39.006
That's fine, but who's overseeing this? Who ensures that it's actually being done to the level that we require it? Robyn Mercer 06:44.431
I oversee that. Okay, so you'll be doing periodic inspections? 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 any further questions Councillors? Frank Wilkie 07:04.679
Just a quick question, what can you say about the track record of this tender? Robyn Mercer 07:12.971
Overall 1EIGHT performs exceptionally well we have an excellent contract partnership hear anything that just happened sorry start again overall 1EIGHT performs exceptionally well 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 and one-eighths 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-quality tourism product to 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. Joe Jurisevic 08:21.581
Not for me. Thank you, Chair. Councillor Lorentson, I believe you might have a question. A hand raised. Amelia Lorentson 08:26.140
Yeah. Robyn. Terms of the submissions, 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 only received one conforming tender? Attender and has anything changed in terms of the evaluation criteria, which seems to be quite detailed. Robyn Mercer 08:55.980
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 Sunshine Coast at Council, they have six parks, five of those are managed by the same management contractor 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 the region, it's probably not their entry point that they would select to do that. Joe Jurisevic 10:09.013
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. Yeah, that's right. And councils have typically done that in the past too where they self-meditise goes correct. Robyn Mercer 10:23.442
Inside 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 10:36.451
I won't find a website on what we'll get from criteria itself. You can understand how it's happened. Anything further, Councillor Lorentson? Amelia Lorentson 10:49.055
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 CPI's and how do we ascertain whether, given again we've only had one submission, that we are getting bang for that? Robyn Mercer 11:13.310
Certainly, so just clarify, the $90,000 is the introduction of a fixed fee portion. It doesn't correlate, that's not the 7% value. I think the 7% value 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. 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. 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 with that all being considered. 7%, percent which is not far off CPI, was considered fairly reasonable. Joe Jurisevic 12:23.416
The return to Council over the last five years has been on the increase. Year in, out, has it not? Robyn Mercer 12:28.416
Correct. We've seen our revenue increase over time. Our business strategy has 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. One lever that we have. 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 a number of micro business cases we can look at as levers to improve our cost base. Anything further, Councillor Lorentson? Amelia Lorentson 13:12.224
Oh, I don't have enough. If anyone wants to ask a question, I have got one more, Councillor Joe. You're the only one still with questions. Nobody else has any questions. No worries. Methodology, revenue, generation on page 12 of the report. The applicant had to 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 13:48.862
Yes, so this is the YOKE, some of the YOKE 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. Amelia Lorentson 14:25.732
So just out of curiosity, Robyn, are there any sites or accessible sites existing already at any of our caravan parks? Punks? Robyn Mercer 14:37.689
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 have disabled toilet and shower facilities at all our campgrounds now. So in that regard, we are ticking some boxes. Frank Wilkie 15:10.120
We should get a triggered question, Robyn, 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 few years under this particular operator? Robyn Mercer 15:23.728
So overall, our profits have grown. 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 profitability. Into the future, just because they're more regional and we have to, we have wastewater that we have to dispose of, and we have water supply and a lot more trucking and cartage involved operations. But overall, profit has grown. And the cost base, when I talk about the cost base 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. Frank Wilkie 16:13.288
Thank you. Happy to read it Mr Chair. Clare Stewart 16:14.585
I'll second it. I'll say, I just want to thank Robyn. She does such a great job and we see really great rubric, these and 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 16:40.964
It's very much a team effort. Clare Stewart 16:42.689
I know. We'll always make a team. Amelia Lorentson 16:43.968
Can I just add, I hope Robyn 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 I think that's the direction I think we need to take as our Council in these sort of transformationalist type experiences. So I hope that we'll be collaborating with procurement and yourself in this paper. Space, and you for all your great work, Robyn. Joe Jurisevic 17:22.495
I'll confirm with the comments around the table. We've certainly seen some enhancements and improvements since you joined the team, Robyn, with regard to the holiday parks and services in that area in particular. Having 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 tracks and trails, eventually we'll capture a whole new market. The is opportunity going forward. 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. 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 land 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 18:53.630
And 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? Yes. Carried unanimously. Thank you, Robert. Thank you very much. Thank you. I'm on a convoy. I was on a convoy. Thank you all for your attendance. Thank you. Robyn. Thank you. Related Noosa Council Meetings
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