How did the City come to the rental value of the new lease?
An independent licensed property valuer has provided the City with a market valuation. Licensed valuers are bound under the Land Valuers Licensing Act 1978 and they operate under a stringent framework. A land valuer determines market value of land which is based on current market evidence. This opinion is recognised as an expert opinion by financial institutions, state and local government departments.What is the breakdown of the lease fee? What does it cover?
Why has the cost of the leases and the demolition levy gone up so much?
The lease fee is used to cover the following costs associated with the Naval Base Shacks:
- General maintenance to facilities
- Capital improvements
- Utilities – water and electricity
- CCTV and security
- Waste removal
- Emergency Service Levy
The lease fee does not include Council Rates. The shack owners do not pay Council Rates.
The City has only increased the cost of the lease twice in 10 years and the market has risen during that time. The proposed fee increase equates to $27 per day for the 120 permitted days.What is the demolition levy?
The demolition levy has been increased by Consumer Price Index only so that the fee is in line with inflated costs should demolition be required.
The demolition levy was introduced in 2010-11 to cover the City’s costs in instances where a shack had to be removed and the leaseholder does not pay for its removal. This was implemented so that the City would not have to resort to expensive civil litigation to recover any outstanding debt. The City quarantines these funds. At the end of a lease, if the owner removes their shack and makes good they receive the total of the levy they have paid back. Otherwise, the City will use the levy for the demolition of shacks.I’ve paid the demolition levy for 10 years, why do I need to keep paying it?
The costs of any works continue to increase each year in line with inflation, supply and demand. The payment of an annual demolition levy ensures that the funds the City holds in quarantine for the purpose of demolition (if required) will adequately cover costs incurred.Is the Naval Base Shacks Management Plan being updated as well?
Why are we limited to using our Shacks for only 120 days of the year?
Yes. This will be submitted to Council for approval.
The proposed changes in the Management Plan include administrative changes and inclusions to the sites history as well as the new lease details.
The Plan also details potential items for upgrades or development including:
- Street lighting
- Beach Access
- Laundry building demolition; and
- Redeveloped ablution buildings
A draft of the updated Management Plan will be included in the item to Council in May 2023. The Agenda will be published on the City’s website 4th
May 2023. The Council agenda and attachments are available on the City's website
Kwinana is the State‘s major heavy industrial area. Many of these industries are located in Kwinana because they are potentially dangerous and they could not be located anywhere else in/near Perth. The recommended (by EPA) buffer from residences to a typical heavy industry is 1km to 5km. This is to provide protection to the residents by ensuring that any emissions are able to be diluted in the atmosphere before they reach the residential areas. It is also to provide some protection to these major industries of state and sometimes national significance so that they are not required to invest significant funds in excessive emission control and operational safety systems. The City's requirement is that the Shack is to be used for 120 days in any year no matter who is staying in the shack. The City is not supportive of some lessees using their shack for longer than 120 days in any year whatsoever, based on public health reasons.Is any redevelopment of the ablution amenities planned?
Redevelopment of the northern and southern ablution blocks is planned and will be assessed for financial year 2023/2024.Will the future port impact any future lease?
The Department of Planning, Lands and Heritage and Westport have indicated that there is currently no impact of Westport to the Shacks site.Will portable toilets be allowed?
There are no dumping facilities for portable toilets at Naval Base Shacks. There have been incidents of inappropriate dumping of portable toilet contents on site and as a result, portable toilets will not be approved.Why are sprinklers now included in the lease?
Abiding to sprinkler days set by the Water Corporation have always been a condition of the Naval Base Shack leases as it’s a statutory obligation.I can’t be at my shack on the days sprinklers are allowed, how do I water my lawn?
The reason they have now been included in the lease under their own section is to make clear tenants obligations when it comes to using Sprinklers.
The water usage at the Naval Shacks has been excessive with a total of 19,222,000 being used in the last 12 months (equal to 8 Olympic swimming pools). Sprinkler usage outside of the boundaries of approved watering days has contributed to that usage.
Like any ownership of holiday accommodation, you will need to make arrangements to maintain the surrounding area of your shack within the boundaries of the lease conditions.I can’t get my hose to connect to the tap so why should I get in trouble for it leaking?
The City understands that there are taps on site that are aged and it’s hard to find hose connections that fit and do not leak. The City is working through replacing and updating taps.What is a persistent breach?
A persistent breach means that if you break the conditions of your lease three times and receive a breach notice from the City for breaking the lease conditions. Three breaches provides the City with the option of terminating the lease if it is considered in the best interests of the site and community as a whole.In what circumstances can the City terminate my lease?
If you are continually breaching the conditions of your lease and those actions are causing damage to the site or hardship to other tenants then the City will consider terminating the Lease.Are all shack owners getting new leases?
A breach of lease can include breaking of any condition of your lease, such as failing to pay your lease fee and demolition levy; not annually providing public liability or other insurance documents and breaking of any other condition in your lease.
No. Shack Owners who have not maintained a compliant profile (such as failing to pay their lease fees or provide their annual insurance documents) will not be offered new leases.What sort of insurance do I require?
Under the conditions of the new lease Shack Owners will be required to have Public Liability; building and contents insurance for holiday accommodation.I already have Public Liability Insurance, do I need to update to include the other requirements when my lease starts?
Most providers do offer these three insurances in a package for holiday accommodation.
Yes. Shack Owners will need to update their insurance to include building and contents insurance if they do not already have that coverage in their insurance. They will then need to provide an updated Certificate of Currency for their insurance to the City. Insurance providers can provide further guidance if required.What happens if I didn’t provide my Public Liability Insurance? Can I still get a lease?
All Shack Owners should be aware of their obligation under the lease to provide annual insurance documents to the City. If a Shack Owner has failed to do this then a new lease will not be offered. The City has attempted to assist Shack Owners in this regard by requesting that a copy of their Public Liability insurance be provided. If the City has not received a copy of your current Public Liability insurance, then a new lease will not be offered. What will happen to shacks where leases are terminated?
In order to ensure that as many Shack Owners are offered a lease as possible, the City has extended the deadline for Public Liability documents one final time until 28 March 2023. This will not be extended.
If a lease is terminated the Shack Owner will be required to remove their shack from the site as required under the lease conditions. If the Shack Owner does not remove their shack the City will use the demolition levy to demolish the shack and make good the landWhy can’t the City keep an owners shack and sell it instead of demolishing it?
The City has sought legal advice regarding this which has determined that the Shacks belong to the Shack Owners and are not the City’s property to keep and sell regardless of a lease being terminated.The City’s Local Planning Policy 4.5 (LPP 4.5) states that the shacks have heritage character, how does that affect shacks being demolished?
The intention of LPP4.5 is to protect the heritage nature of the whole the shacks at Naval Base Holiday Park with regard to their uniformity of scale that creates a unique landscape, and gives the place significant aesthetic appeal, especially when combined with the coastal setting. LPP4.5 does not remove or minimise the need to manage the site with regards to demolishing unleased shacks.What will happen with vacant land cause by demolished shack?
The Naval Base Management Plan will include consideration of engaging an independent planning consultant to advise the most appropriate use of vacant shack sites.How do I sign my new lease?
The outcome could provide advice on what sites could be considered for releasing as well as potential alternate uses that are suitable and consistent with the use of the whole site.
When will the lease go to Council for approval? Can I see a copy of the report to Council?
If you have supplied your email address to the City then you will receive a digital version of your lease to sign. Once you sign the document City Officers will be able to finalise and you will then receive a fully signed copy.
The City is using this method of signing leases to make sure you get your lease as quickly as possible once fully signed and to minimise the use of paper.
We will be offering hard copy paper leases to those who prefer to sign the document in this way. Please contact us at [email protected]
to advise if you want a paper copy of your lease.
At this stage we plan to have a report go to Council on 11 May 2024.Why was my name and shack number in the City’s public notice that was advertised?
You will be able to access a copy of the report and Council agenda via the City's website
The City is required to publicly advertise when it is entering into a lease with a third party for City managed land. This requirement is part of section 3.58 of the Local Government Act 1995.Why didn’t I get any letters or correspondence from the City regarding the new lease delay?
The public advertisement must include the names of all parties concerned, the fees, the agreement length, and address of the property.
Can I sell my shack now?
The City has been in contact with Shacks Owners regarding the new lease with 4 letters/emails sent to all Shack Owners over the last 12 months. The correspondence has been sent by post and email.
If you have not received any correspondence with the City it is possible that the contact details the City has on file are not up to date.
Please contact us at [email protected]
with your updated address, email address and phone number.
What am I supposed to do every year with my lease?
Council’s decision has resulted in a delay in finalising the lease until the City undertakes the outlined actions from the council meeting. While there is a delay in transfers being permitted as a general rule, exceptions are able to be made on a case-by-case basis.
Upon request, If there is reason to permit a transfer as a one-off case we will work with you to achieve this. However, in order to do so we will need to understand the reason for the urgency to sell/transfer.
Please send through any details regarding your need to undertake a transfer (specifics are not necessary, but if we have an understanding of the reason for the urgency/for an exception to be made then we can see what can be done to accommodate you).
Can I just come in to the City and speak to someone?
Shack Owners do have certain obligations and tasks under their lease that they are required to do each year. While the City will remind Shack Owners when possible, we encourage Shack Owners to take responsibility for these obligations without the City having to follow it up.
The annual obligations will include:
- Payment of lease fee and demolition levy
- Providing a copy of current Public Liability, Building and Contents insurance
What if I don’t agree to the new lease conditions?
Property Services Officers are available by appointment. To make an appointment please email [email protected]
We discourage you attending the City without an appointment as its likely that an Officer won’t be available to meet with you without advance notice.
Why did someone get a new lease when they have unapproved works?
If you do not agree with the new lease conditions we encourage you to email [email protected]
with your concerns so we can discuss them with you.
The City has prioritized the completion of the new lease for 2023 to prevent any further delay and to ensure that Shack Owners feel secure in their tenure. Due to resourcing, a comprehensive analysis of each shack and their additions was not possible but will be undertaken in the future. The City encourages all Shack Owners who have undertaken unapproved works at the site to seek retrospective Planning and Building Approval to ensure that their lease is not jeopardized when such works are uncovered in due course.What is retrospective approval?
Why can’t I use my generator at the Shacks?
Retrospective approval is when you submit an application for approval of your works after they have been completed. This means you will need to submit an development application and/or building permit application for approval of the works you have completed.
The outcome of retrospective approvals could require additional works requested for approval to be granted. It is also possible that approval is not granted and you will be required to remove any additions that have been made without approval.
It is a common requirement at holiday sites where users are located in a close proximity to one another that generator use be limited as it affects the enjoyment of the site by others. The restriction on the generators was agreed to during consultation with the original Naval Base Shack Community Reference Group (NBSCRG) as it was recommended by the group that the noise level was intolerable due to the close proximity of the shacks. Alternative power sources (solar and wind) that do not affect the enjoyment of the site by others are permitted.Who do I talk to if I don’t know what to do?
What was decided at the Ordinary Council Meeting on 11 May 2023?
If you have any questions about lease conditions or what you need to do please email [email protected]
and a Property Services Officer will assist you with your questions.
What does the alternative recommendation mean?
Council endorsed the following alternative recommendation:
- DEFERS endorsing the lease agreement for the Naval Base Shacks to a future Ordinary Council Meeting, once the following has been completed:
- Development of indicative costings for capital upgrades at the site and the impact each project would have on the required rental fee.
- Feedback from shack owners on which capital upgrades, and the subsequent impact on required rental values, are supported by shack owners.
- Investigates splitting lease fees into operational expenditure and capital expenditure
- Schedules a meeting with interested shack owners, City officers and Elected Members.
The alternative recommendation means that a lease agreement between the Shack Lessees and the City will not be finalised until the City has undertaken the outlined in the alternative recommendation. What will the actions from the alternative recommendation achieve?
What does ‘capital expenditure’ mean?
The formula which the City proposed to use to determine the lease fee ($3250) was a Market Valuation. This formulation was not supported in the submissions received from the Naval Base Shack Owners.
The actions outlined in Council’s alternative recommendation will allow a lease fee to be proposed which will be based on
- the operational costs of running the site; and
- the costs for delivering Capital Works projects that the Naval Base Shack Lessees wish to be delivered at the site.
Capital expenditure means the cost involved in upgrading the site and/or delivering projects. This cost would include but is not limited to developing a scope of works; planning; seeking relevant approvals; any required consultation; labour; materials; site works and formulating future asset management/maintenance. What does ‘operational expenditure’ mean?
Operational expenditure means the cost involved in managing and maintaining the Naval Base Shack site. This includes but is not limited to the cost of reactive maintenance to assets; preventative/scheduled maintenance to assets; utility consumption; site and contractor management; Emergency Services Levy; waste services; daily cleaning of facilities and administration of the site.What is the difference between ‘capital expenditure’ and ‘operational expenditure’?
Operational expenditure is the ‘day to day’ costs to keep the site; while ‘capital expenditure’ is the cost to improve or add to the site. Will the meeting between the Shack Owners, City Officers and Elected Members be mandatory?
All Naval Base Shack Lessees will be welcome to attend meetings regarding the site. However, your attendance is not mandatory. Will the moratorium on selling my Shack continue until the City completes the actions and presents the lease to Council again?
How long will it be until the new lease can be signed?
The moratorium was put in place to allow the City to facilitate the smooth transition from the existing lease to a new lease. If a Shack Owner is able to demonstrate a legitimate or urgent need to undertake a transfer prior to the new lease being finalised, it will be considered by the City on a case-by-case basis.
In all other instances the moratorium will remain in place, as removing it (and allowing transfers) has the potential to further delay the lease being finalised, as it requires resourcing that could otherwise be dedicated to finalising the lease.
The City will update the timeline on the website when it is available. What should I do if I don’t agree with the projects that are proposed to be undertaken at the Shacks? Why should I have to pay a lease fee to cover upgrades that I don’t want?
Given the number of stakeholders on the site, it is not possible for everyone to agree on every outcome. Individual Naval Base Shack Lessees are welcome to submit their feedback regarding capital expenditure projects when invited to do so by the City’s Officers. Each suggested project will be discussed as a separate agenda item during meetings between the City, the Shack Lessees and Elected Members at which point you can voice your support or aversion to a particular project. What happens next?
Will the City need to advertise the lease again?
The City will continue to develop a timeline for the delivery of the items in the alternative recommendation. Any changes to the timeline will be communicated to Shack Lessees when finalised.
Once the items in the alternative recommendation have been completed, the lease will go to Council to seek endorsement.
Once the lease is endorsed, the City will consult the Minister for Lands to seek consent from the State; advertise the lease and arrange for the new lease to be signed by the Shack Lessees.
Yes – the lease fee needs to be included in advertising, so this will need to be undertaken again when a new figure is proposed. What lease fee do I have to pay between now and the new lease being signed?
The lease is holding over on the same terms as are currently agreed ($2500 annually). Please ensure that you are up to date with your payments and do not fall into arrears, as this may impact your eligibility to be offered a new lease. What are my obligations until the new lease is signed?
The lease is holding over on the same terms as are currently agreed. You must continue to provide your public liability insurance documents annually (within 14 days of expiry); remain up to date with your lease fee payments; occupy the Shacks for less than 120 days per calendar year and otherwise comply with the terms in the lease. Can I keep using my Shack until the new lease is signed?
Yes.Can I undertake repair works to my Shack before the new lease is signed?
Yes. Please refer to the documents on the Naval Base Shack website on applications to carry out works. Will selling my Shack give the new owner the same rights as me to a new lease?
In instances where a Shack Owner demonstrates a genuine urgent need to sell their Shack prior to the new lease being finalised, this can be considered by the City. However, the City is not able to warrant that a new lease will be available, or the terms of a new lease. The new lease requires the consent of the State, and endorsement by Council. As such, while the City can assign the current lease over to a new Shack Owner, it is not able to guarantee that they will be given a new lease, and the terms of any subsequent lease arrangement.