2021-10-12 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                    12 OCTOBER 2021


lease with what was originally envisaged and agreed to upon (i.e. semi-commercial) at inception,
when the commercial viability and performance of community radio stations was generally much
stronger than it is today. To be clear, Council would only consider such a review should Noosa FM’s
operational performance increase markedly.
If adopted, this recommendation will provide Noosa FM with long-term rental security and allow them
to confidently plan for a future at The J, with a potential maximum lease expiry of 2030 (four years
beyond the maximum tenure of the original lease). It also provides both parties with some flexibility
should Noosa FM’s operational position change.
It should be noted that the proposed tenure fits within the maximum permissible term (10 years)
under Council’s Community Purpose Land and Infrastructure Tenure Policy.

Previous Council Consideration
Ordinary Meeting Minutes, 20 December 2018, Item 5, Page 16.
That Council note the report by the Community Facilities Manager to the Services & Organisation
Committee Meeting dated 11 December 2018 and agree to:
A.    Extinguish the current Noosa FM lease at The J and replace it with a new 2 year lease (based
      on Council’s standard lease terms and conditions) with the option of further three x 1-year
      terms at Council’s discretion and an annual rental of $6,000 pa (plus CPI increases);
B.    Apply the exception to the requirement for the tendering of the lease under Section 236 (1) (b)
      (ii) of the Local Government Regulation 2012, as the lease is to a community organisation;
C.    Consider any financial implications of this new lease arrangement in BR3, and
D.    Reconsider Council’s position of providing both a rental subsidy and a Community Alliance
      grant to Noosa FM, when Noosa FM’s 3-year Community Alliance funding comes up for
      renewal in the 2019/20 community grants round.

Finance
It is prudent to note that in real terms, Council has typically provided a rental subsidy of approximately
$46,000 p.a. to Noosa FM ($52,000 commercial value of the site less the roughly $6,000 annual
payments received most years through to 2021). In addition, Council also currently provides
approximately $8,000 p.a. to Noosa FM via a Community Alliance grant. The resultant outcome
under this scenario is that Council provides total cash and in-kind support to Noosa FM to the value
of approximately $54,000 p.a.
This is a significant level of financial support and is a matter that should be fully understood prior to
Council endorsement of this report’s recommendation.
The financial outcomes of the recommendation are already factored into current and forecast
operational budgets and will therefore not have any impact on the team’s future performance against
budget.

Risks & Opportunities
From Council’s perspective, not having a viable lease in place with Noosa FM presents a heightened
level of operational risk in comparison to having such an agreement in place. In addition, continued
uncertainty around Noosa FM’s tenure at The J makes it somewhat difficult to plan for the future and
regular and recurring discussions on this matter distract management from the achievement of other
priorities at the venue.
Security of tenure is often a requirement of government agencies’ grant programs which community
organisations such as Noosa FM regularly seek to access. Noosa FM may potentially be overlooked
for such funding opportunities for projects and programs which improve facilities and build
community capacity if secure tenure arrangements are not in place.


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