2019-02-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                  12 FEBRUARY 2019



REPORTS FOR CONSIDERATION OF THE COMMITTEE
1                      FURTHER REPORT - PROPOSED TELECOMMUNICATIONS LEASE AT COOYAR
                       STREET, NOOSA HEADS
CUMENT INF ORM ATION




Author                            Property Advisor, Denis Wallace
                                  Corporate Services Department

Index                             ECM/Subject: 46.01 Lease/Application/LEAS19/0001

Attachments                       Nil

EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note further report by the Property Advisor to the Services and Organisation
Committee Meeting dated 12 February 2019 regarding the telecommunications lease on Council
premises at Cooyar Street, Noosa Heads and:
A.                     Repeal Council’s resolution dated 17 January 2019 titled ‘Proposed Telecommunications
                       Lease at Cooyar Street, Noosa Heads;
B.                     Apply the exception to the need for a tender process prior to leasing the land, in
                       accordance with provisions of Section 236 (1) (c) (vi) of the Local Government Regulation
                       2012, given the lease is for telecommunication tower purposes; and
C.                     Agree to enter a commercial lease of the premises to Optus Mobile Pty Ltd as outlined in
                       the report.

REPORT
Council, at its January round of meetings, considered a report on a new telecommunications
lease with Optus Mobile Pty Ltd. The proposed lease of Council owned land at Cooyar Street,
Noosa Heads was described as 18m2 (6m x 3m) to provide Optus with a ground lease to allow it
to co-locate its transmission equipment on the site’s existing telecommunications tower.
Subsequent to the Ordinary Meeting dated 17 January 2019, Optus submitted its finalised lease
document and survey plan and staff noted the lease survey was conducted for a 24m2 (6m x 4m)
area. Optus acknowledged the discrepancy and confirmed the area will contain a 6m x 3m
equipment compound only. This variation from the previously reported area is considered minor
and does not raise any significant staff concerns. Rather than conduct another survey at
substantial cost, this further report provides updated lease details, as follows:
         Lease Provision                           Proposal
         Premises:                                 Part of Lot 15 SP1177649
         Annual Rent:                              $17,000 plus GST
         Nett Lettable Area:                       18m2 24m2
         Indicative Commencement Date:             1 July 2019
         Initial Lease Terms:                      4 years 4months 12days (to align with associated tower lease)
         Options to Extend:                        Nil
         Market Rent Reviews:                      Fixed increases at 3% annually.
         Permitted Use:                            Telecommunications compound
                                                   (to allow co-location on existing Telstra tower)

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