Kiama Council has resolved to begin direct negotiations with its preferred tenderer to purchase Blue Haven Bonaira amid a chaotic night at Kiama Council Chambers.

The preferred tenderer remains confidential for now but will likely be announced towards the end of the negotiation process, which is expected to take five weeks. Council must still vote on any draft contracts put forward by the preferred tenderer before a deal is finalised.

Council decided to enter direct negations with the preferred tenderer as it was satisfied the preferred tenderer can meet the requirements set out in Council’s Request For Tender (RFT).

Council noted that none of the tenders could be accepted at the end of the RFT but said there were reasonable prospects it can achieve a better outcome through direct negotiations.

Council also resolved not to include Community Transport, a shuttle service for Blue Haven residents, in the tender as Transport NSW is providing its own preferred tenders for the asset.

Kiama Council Chief Executive Officer Jane Stroud was authorised to directly negotiate with the preferred tenderer and must ensure that for a period of five years, current terms and conditions of employment be transferred to the new employer.

“While Blue Haven is in Kiama Council’s ownership, we will continue to provide the high levels of quality care we have always delivered,” Stroud said in a press release. “In the meantime, I will be working hard on negotiations with the preferred tenderer to finalise the details of the contract so it can return to Council in five weeks.”

Mayor Neil Reilly said it was one of the biggest decisions Kiama Council has ever made and has not been taken lightly.

“I can honestly say this is the best outcome for Blue Haven residents and loved ones, our community and for Kiama Council. The divestment of Blue Haven Bonaira to the preferred tenderer, who is a registered Aged Care provider, will mean that Council can refocus on the core business of providing local government services, while knowing that we have retained this much loved and valued asset within our community.”

Before Council made its resolution in a confidential session, Council was expected to debate a Notice of Motion submitted by Councillor Kathy Rice that would have called for the sales process to be paused and investigated by the NSW Minister for Local Government Ron Hoenig.

However, at the beginning of the meeting, Mayor Reilly made a procedural motion, ruling that it was impossible to work the Notice of Motion to be lawful and enforceable, and that it should instead be tabled as a petition rather than be debated as a Notice of Motion.

Closing moments of the meeting

Councillor Rice declined and moved a motion of dissent so it could be debated, saying that she had taken advice from the CEO and adjusted the Notice of Motion that morning. She said that nothing had been communicated to her that her latest revised Notice of Motion was still considered unlawful, and asked CEO Jane Stroud to apologise for claims she made in her response that it was only put forward for political purposes.

Councillor Rice’s revised Notice of Motion has not been made public.

Councillor Rice also attempted to raise a point of order during Mayor Reilly’s response, claiming he had misrepresented her after saying, “We are being asked by this letter, and by the third iteration of [this motion] to go back two years and provide the whole reported framework that we have put together.” Her point of order was dismissed.

The procedural motion was upheld and voted in favour by Deputy Mayor Imogen Draisma, Councillors Stuart Larkins, Warren Steel, Mark Croxford and Mayor Neil Reilly.

Immediately following the vote, Mayor Reilly attempted to move the meeting into a confidential session but was interrupted by citizens and members of the United Services Union, who opposed the sale. Police were called to remove the protestors, who were peacefully escorted outside approximately 20 minutes later.