Agenda - Byron Shire Council - NSW Government

BYRON SHIRE COUNCIL
ORDINARY MEETING 9 MAY 2013 (83)
Where to From Here
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In light of all the above, it is recommended that the current direct negotiations with the PCYC be
terminated and that Council test the market again with a fresh selective tender process involving
different options not just a single whole-of-facility approach.
Due to interest Council has received, for example in medium term arrangements for management
of the well-equipped Commercial Kitchen, it might be preferable to test the market on a number of
different options such as management of:
- the entire Facility;
- the facility excluding particular areas (such as meeting rooms or Commercial Kitchen); and/or
- just particular areas of the facility.
Seeking interest on variable bases would enable Council to directly compare and assess the
different potential management options. To enable this to occur, it is proposed that delegation be
granted to enable the specifications to be prepared, expressions of interest to be called and
selected applicant invited to tender. The ‘selective tendering’ approach is therefore recommended
and, as with all tenders, the results would be reported to Council for final determination.
In the meantime, it is recommended that Council continue to directly manage the facility and try to
increase the promotion and marketing of the facility. While this will have short term financial
implications for next financial year, it is considered prudent to ensure that Council’s long term
financial position with regard to this significant asset is not prejudiced, as well as to ensure that the
use of this important regional community facility is maximised for the benefit of the whole
community.
Financial Implications
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There is currently no provision in Council’s draft 2013/14 Budget to continue the current Council
direct interim management arrangements for the Multi Purpose Facility.
A draft budget, based on the current year's operations has been developed. An expenditure
budget of $148,475 is required, with an offset of $40,000 income (net cost $108,475).
A reduced version of that budget would be required also if Council were to continue with
negotiations with the PCYC because it is unlikely that negotiations could be concluded, and the
requirements for notification of the proposed lease, and potentially for Minister’s consent, satisfied
before 1 July 2013.
In accordance with Resolution 13-137 the following information is provided to Council in all reports
prepared for the 9 May, 13 and 27 June 2013 Ordinary Meetings:
The estimated staff hours for the preparation of this report was approximately 10 hours.
Statutory and Policy Compliance Implications
Relevant provisions of the Local Government Act and Regulations governing tenders apply and
need to be complied with. Refer to confidential legal advice.
In addition, provisions in relation to management of Community Land also apply and must be
followed, including s47 (Leases, licences and other estates in respect of community land – terms
greater than 5 years) and s47A (terms less than 5 years) must be complied with, which require at a
minimum all proposed leases be placed on public exhibition.
The Local Government Act can be accessed at
http://www.legislation.nsw.gov.au/fullhtml/inforce/act+30+1993+CD+0+N .
Ordinary Meeting Agenda 09/05/13