�The Town is seeking a solution in negotiations with Indiana management that would see a renovation of the change room and toilet area to provide better and bigger facilities with more space, light and air,� Mr Askew said.
After last week�s meeting, he defended the council�s position following ratepayers� group SOS Cottesloe asking the restaurant be sent a breach of its lease with the council for allegedly dirty, broken toilets and fixtures, prompting continuing public complaints.
This month, northern suburbs resident Richard Kreider separately complained to this newspaper about the women�s toilets used by his wife and his visiting daughter.
Mr Askew said defects from twice-weekly council inspections reported to the Indiana had been addressed in a �timely manner�, there been fewer problems compared to previous summers and residents and SOS members had made negative comments about plans for new toilets, causing the project�s withdrawal three years ago.
Indiana Tea House Pty Ltd has a lease until 2041 and Mr Askew said its terms were �not ideal� because it made the company responsible for the toilets and stopped the council from taking direct action, setting cleaning rules and opening times.
�With regard to SOS� request for a notice of default, under the terms of the lease, a default requires the lessee to have not acted on an issue and this is simply not the case,� Mr Askew said.
The council believed a breach would jeopardise negotiations �proceeding well and in a co-operative manner� with the Indiana.
However, Cottesloe Resident and Ratepayer Association chair John Hammond said campaigning would continue for the restaurant to be served a breach about the toilets.
Indiana Tea House Pty Ltd would not comment.
n Smithy�s View page 8.