Moyne Shire Council voted in April this year to see public responses on a new 21-year lease as the former lease expired five years ago.

However, the club questioned the annual cost of the lease - $4650.

The council then proposed a licence agreement be drafted instead of a lease, but the club was strongly opposed to this.

Yacht club member Peter Young told councillors at Tuesday night's meeting this would strip the club of about $10,000 income and would only last for three years.

He said it was "extraordinary" the council had not advertised a new lease seven months after that directive was made.

But council's infrastructure and environment director Trev Greenberger said the process had been delayed by a number of factors, including the dispute over the proposed lease amount.

Mr Young submitted a petition signed by 370 people to the meeting.

He said the community wanted to retain control of the yacht club.

"The community are outraged that they are not being consulted," he said.

Mr Young said the club had been advised by other yacht clubs, including Warrnambool, that a licence agreement was not workable.

"Licences only last three years and beyond that there are no guarantees," he said.

"Once a club loses control of a facility they have to compete for use of it like everyone else."

A number of councillors asked questions about how often the facility was used.

Mr Young said it was used every day of the week, with functions held most weekends.

Councillor Jordan Lockett said it had been frustrating concerns about the process were raised during a caretaker period.

He said there was some misinformation spread about the issue.

Cr Lockett said he supported the motion to seek public feedback on a proposed new lease.

"We need to clear things up and and then move forward and get the best outcome for all the user groups," he said.

Cr Karen Foster also supported the motion.

"I think it's the right thing to do - to put this out for public consultation so everyone gets a say," she said.

But Cr Jim Doukas foreshadowed a motion that a licence agreement instead be drafted.

He said this would allow all user groups to have guaranteed tenure, not just the yacht club.

Cr James Purcell supported the motion, saying seeking public feedback was the best thing to do.

"I think the right thing to do here is put a line under what has happened and start anew," he said.

"We need to go to our community and ask what is going on. I think this is the only way to do that."

The motion was passed 4-3, with Crs Doukas, mayor Daniel Meade and Cr Damien Gleeson voting against it.

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