Wollongong City Council has opened up a bidding war at the city’s beaches and parks, asking fitness companies to nominate how much they are willing to pay for the privilege of training clients at the picturesque spots.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
For the first time, the council has put its controversial fitness training licenses out to public tender, inviting operators to name a price to secure their pick of the city’s 42 fitness training sites for the next four and a half years.
In the past, the council has set its own costs for these licences, dividing parks and reserves into three zones and charging different fees depending on the number of people being trained.
Foreshore and inner city reserves – like Stuart Park, Lang Park and Flagstaff Hill – attracted the biggest premium, while sites in outer suburbs could be secured for a cheaper price.
Under this system, the most expensive licences cost $5,806 in the 2015/16 financial year. Licences for smaller groups in outer suburbs cost $1,425.
However, the open tender system means there is no upper limit.
Documents on the council’s website provide no indication about the value of each site, however the council says it reserves the right to set a minimum fee.
The decision over how to award each tender will be almost entirely based on how much each company is willing to pay, with the “proposed annual feel to be paid to council” to make up 80 per cent of the assessment criteria.
Companies will also also be assessed on previous experience in the fitness industry, evidence of work health and safety systems and “demonstrated strengthening of local economic capacity”.
“Licensees will only be allocated one site per reserve and will be limited to three sites in total within the Wollongong local government area,” the documents say.
As well as their nominated site fee, successful applicants will be charged $274 for the “preparation” of each licence and will have to front a 25 per cent security bond.
The new contracts will allow successful tenderers to train from July 1 until December 2020.
Trainers will have to comply with the council’s outdoor training policy, which bans then from conducting combat training, using excessive amplified music, and playing organised ball sports and competitions. Additionally, they can not use trees, seating, picnic tables or any other park infrastructure as part of their exercise training.
The council has previously come under fire from fitness operators for hiking up their fees, with trainers saying they would be forced to raise rates if they had to pay more.
The tenders close on Tuesday at 10am.
