Kiama councillors to decide Blue Haven's fate on Monday

Mayor Neil Reilly has called an extraordinary meeting on Monday night to discuss an offer from the preferred tenderer for the Blue Haven Bonaira site.

However, it would be discussed in a confidential session and the name of the tenderer and perhaps the price only made public at the end should the councillors vote to accept the offer.

Cr Reilly said the council was not able to make the identity of the tenderer public before the meeting.

"The decision to make that public is not mine," Cr Reilly said.

"It's the Local Government Act, I can't change the Local Government Act with regard to tenders. It's very explicit."

The act recommends confidential discussion of commercial matters "that would, if disclosed, confer a commercial advantage on a person with whom the council is conducting (or proposes to conduct) business."

However, the council is required to make public any decisions made in confidential session, which occurs at the end of the meeting.

Cr Reilly said CEO Jane Stroud had been negotiating with the preferred tenderer "for some time".

"We have received a highest and best offer from that person and the meeting on Monday is to determine whether we accept that offer or not," Cr Reilly said.

"I can't pre-empt what the councillors are going to do, but, for my money, I think that we should accept.

"It seems to me to be within a reasonable range of price and it won't affect our long-term financial plan at all."

Labor councillors Imogen Draisma and Stuart Larkins released a joint statement that the sale of Blue Haven Bonaira should go through to ensure the council meets its obligations under the performance improvement order issued by NSW Local Government Minister Ron Hoenig.

"Should the sale of Blue Haven Bonaira and the services delivered from the site proceed following the decision of council, Cr Larkins and myself will continue to ensure that council and the new owner of the facility work effectively to transition the workforce and maintain the high quality of services," Cr Draisma said.

Cr Larkins said they would only support the sale "to a tenderer with the highest expertise in the delivery of independent living units and aged care services".

The Labor councillors' joint statement said it was "imperative" their fellow councillors voted in a way that would "ensure that we do not leave a legacy of continued poor financial management to the next term of councillors".