2018-10-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                 15 OCTOBER 2018


6                        NOOSA GYMNASTICS CLUB CAPITAL CONTRIBUTION PAYMENT AND NEW LEASE
DOCUMENT INFORM AT ION




Author                              Community Facilities Manager, Ash Saward
                                    Community Services Department

Index                               ECM/ Subject/ 72.01 – The J

Attachments                         Nil.



EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Community Facilities Manager to the General Committee
Meeting dated 15 October 2018 and:
A.                       Authorise a one-off capital contribution payment of $100,000 to Noosa Gymnastics Club to
                         assist with the unexpected cost of rectifying the non-compliant fire booster pump at the
                         Bicentennial Community Centre.
B.                       Authorise the Chief Executive Officer to enter into a new lease with Noosa Gymnastics
                         Club for the expanded main hall with an initial term of 10 years and two further options of
                         five years each.
C.                       Apply the exception to the requirement for tendering of this lease under Section 236 (1) (b)
                         (ii) of the Local Government Regulation 2012, as the site will be leased to a community
                         organisation.



REPORT
In January 2015, Noosa Gymnastics Club entered into a 10-year lease with Council for use of the
main hall at Bicentennial Community Centre (BCC). The Club has continued to grow in strength
and numbers since shifting their operations to BCC and are nearing completion of a $1.025m
extension of the hall using the Club’s funds and a State government grant (50-50 split).

The extension project has recently encountered an issue with the onsite fire booster pump which
requires prompt rectification in order for the building to receive final certification. Unfortunately
the current incoming water flow rate is insufficient to feed the pump at the required level, despite
initial testing of onsite flow rates suggesting they would be adequate.

This issue has arisen at the final stages of construction and presents an unexpected challenge
for the Club. The most viable way to rectify the issue is to install two 44,000L fire tanks and
plumb the fire booster pump to be fed by these. The cost of the tanks and associated site and
plumbing works is significant and totals $130k.

The Club does not have sufficient cash reserves to fund this unexpected cost. If compelled to find
a way to fund the cost of the works, the Club would be left without sufficient working capital to
maintain their operations and finalise fit out of the new area.




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