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Lease Fees Update 2011 - 2012

Posted: 30th July 2011

Letter from City of Cockburn to Shack Owners

The Naval Base Holiday Accommodation (site) Memorandum of Agreements are currently
considered for renewal every twelve months. As the Naval Base Shacks Community
Reference Group (NBSCRG) are working through many issues related to a future more
robust lease agreement the City has decided that it will offer the lessees, who have paid in
full their 10/11 lease fees and are not considered to be in default, a further twelve months
under the current twelve month renewal regime.
Please find enclosed the standard Memorandum of Agreement for your signature and
return to this office prior to 31 August 2011. This is similar to documents signed in previous

A condition of your tenancy is that you complete (in full), sign and have witnessed the
attached Memorandum of Agreement agreeing to the terms and conditions of the tenancy.
Your witness can be any person over the age of 18 years. Please ensure that you are
aware of all of the Conditions in your Agreement prior to signing.
In February 2010 a rental valuation was carried out which confirmed that the rental that was
previously charged was significantly below the current market value. The market rental
charge that was recommended was $45.00 per week. The City previously advised that the
lease fee would increase over three years as per the below table:

Lease Fee
Year 10/11 - $2,170.35
Year 11 /12 - $2,945.00
Year 12/1 3 - $3451.54

Council at its meeting June 9 2011 resolved as below:
"MOVED Deputy Mayor K Allen SECONDED Clr S Limbert Council amend the
Schedule of Fees and Charges - Naval Base Leaseholders Fees by deleting the
proposed 2011/12 fees and replacing them with the fees charged for 2010/11.

Reason for Decision
Fees and Charges for this prominent location should be dealt with at the same time
as Council resolve the issue of the lease, currently being discussed by theBased on the above decision the lease fee for 2011/12 will be $2,199.00 detailed as follows:
(Note: the Rubbish, Security and FESA Fees have been increased in accordance with the
budget; these fees are common to all ratepayers and lease holders within the City of
Cockburn and cannot be charged at a different rate to any other ratepayer for the 2011/2012

NAVAL BASE CHARGES for this year.
Lease Fee Inc GST - $1,134.00 (No increase to Lease Fee Portion)
Rubbish Inc GST - $365.00
Special Levy Inc GST - $600.00
Total Lease Fee - $2,099.00
Security Fee - $50.00
FESA Fee - $50.00
TOTAL - $2,199.00

All of the funds generated from the lease fee charges are held in a reserve account and will
generally be used to maintain and upgrade facilities at Reserve 24308.
An invoice for the amount of $2,199.00 is enclosed; payment is required prior to 31
August 2011 (the due date on the invoice is an automated date and the City does not
require payment until 31 August 2011). The City is prepared to receive your lease fee via a
payment plan of three equal instalments of $733.00 with total amount to be paid in full by 31
December 2011. You must apply in writing prior to the due date to Mr Paul Mendes, City
of Cockburn PO Box 1215, Bibra Lake WA 6965. A $20 payment plan administration fee
will be debited to your account which will require payment with your first installment.

Lessees that fail to request a payment plan arrangement in writing or have not paid in full by
close of business 31 August 2011 will be considered to no longer have a valid lease and the
City will commence the process of requiring the former lessee to vacate the site. Following
the vacation of the site the City will require that former lessee to remove any existing
structures and all chattels within 28 days of being notified. At the end of 28 days if the site
is not vacated the structure and all chattels will be forfeited and will become the property of
the City.

When the draft new more robust lease agreement for the individual lease sites is prepared,
it will be presented to the NBSCRG for their comments and possible amendments.
Following the discussions with the NBSCRG it is proposed that the final draft of the lease
will be circulated to all lessees prior to a determination being made by Council. The new
lease will then be offered to ail those lessees who have fulfilled their conditions and are not
in default of their Memorandum of Agreement at the commencement of next year's lease
Yours faithfully
Daniel Arndt
Enc: Memorandum of Agreement
Community Reference Group, and other issues associated with the Naval Base