16-037: RVCP Caravan Site Proposals & Business Case Review

Descriptions

Rother Valley Country Park is the largest managed green space in Rotherham. It has an established reputation for providing high quality affordable outdoor recreation for local people, as well as attracting visitors to Rotherham from further afield. It is a substantial business, with an annual turnover of around £880K. The park operates very efficiently. The net running cost has decreased significantly over recent years, largely through income growth from a series of (small scale) capital investments. Income-related budget savings of £80K and £120K for 2015-16 and 2016-17 respectively were agreed in 2014. The £80K saving has been achieved, but the £120K saving for 2016-17 was predicated on the development of a caravan site in the park, as research had indicated significant business growth potential from such a scheme. Further savings of £169K, also for 2016-17, were agreed as part of the latest budget review. These comprise both staff reductions and an increased car park income target. Together with the previously agreed saving, this makes a total budget saving of £289K for 2016-17 which removes the Council's subsidy and replaces it with a profit target of around £50K. Following development of designs and financial projections for a touring caravan site, a Strategic Outline Case was submitted in 2015 for consideration within the Council's new Capital Projects process. However, this was rejected during the 2016-17 budget setting process, even though the associated savings remain in place. It is therefore unlikely that the budget that has been set for the park will be achievable in the foreseeable future, unless the case for the Council developing a caravan site is considered again. It has therefore been agreed that the business case and associated financial projections should be subjected to independent assessment to establish whether they are sound and can therefore be used to support a decision by the Council to undertake the project. The intention is to award to a single supplier. All suppliers who wish to be considered for this quotation must register on the YORtender system and electronically complete and upload the quotation documents onto the system no later than no later than 12 noon on Monday 20th June 2016. All Requests for Quotation must be returned through the YORtender system and will not be accepted by any other means. The details set out in this RFQ are given in good faith and believed to be correct. However, RMBC does not warrant the accuracy of those details and each bidder should make its own appropriate enquiries.