Geelong Council Finalises Princess Street Drysdale special charge scheme for footpaths

In Tuesday's agenda for the City of Greater Geelong council meeting there is an agenda item for the finalisation of the Princess Street, Drysdale special charge for footpath and kerb and channel in Princess Street, Drysdale between Eversley Street and Newcombe Street.

Below is an extract from the Agenda:

Princess Street, Drysdale - SRC 325 - Finalisation of Scheme

Portfolio: Infrastructure - Cr Richards
Source: City Services - Engineering Services
General Manager: Gary Van Driel

Index Reference: Special Rates and Charges; Princess Street, Drysdale

Summary

• This report relates to the finalisation of a Special Charge Scheme for construction of footpath and kerb and channel in Princess Street, Drysdale between Eversley Street and Newcombe Street.

• Council declared the charge for this scheme on 10 August 2010.

• The scheme involves 8 property owners and the works were a combination of both footpath and kerb and channel. Council undertook pavement works and drainage.

• The cost to be distributed to owners which matches the estimated cost was $38,461 and owners costs vary between $2,977 and $10,464. Council constructed additional pavement and drainage works as part of the project at a cost of $90,808. • The scheme has been prepared in accordance with the Special Rates and Charges provisions of the Local Government Act along with Council's Special Rates and Charges Policy.

• The report seeks a resolution by Council to confirm the special charge for the works to finalise the Princess Street, Drysdale Special Charge Scheme. The process is shown in Attachment 7-1 – Process Chart.

Recommendation

That Council having declared a special charge on 10 August 2010 for the purposes of defraying the expenses in relation to the construction of footpath, kerb and channel and road widening in Princess Street Drysdale, west side between Eversley Street and Newcombe Street, Drysdale (Appendix 7-2 – Plan) in accordance with Section 163 of the Local Government Act 1989 (the Act) resolves that:

1) the special charge as declared be confirmed in accordance with actual costs incurred on the project as required by Section 166 of the Act as shown in Schedule A – Appendix 7-1;

2) the General Manager of Corporate Services is authorised to levy and recover the special charges by sending notices to the persons who are liable to pay in accordance with Section 166 of the Act and the Regulations; and;

3) in accordance with Section 172, the rate of interest which is payable on the special charges which have not been paid by the specified date is set at Council's overdraft rate, reviewed every three months (provided that it shall not exceed the rate fixed by the Governor in Council by Order for the purposes of Section 172 2A in which case the rate of interest shall be the maximum fate fixed by the Governor in Council by Order for the purposes of the Section). The interest is to be calculated from the date the special charge is due, with a six months interest free period, providing those persons who choose to pay by instalments adhere to their repayment plan.

The complete report is available from the Geelong Council Agenda - 10 July 2012 - in pdf format (1374kb). (This document requires the use of Adobe Acrobat Reader).

Geelong Council consulting on sealing Newcombe Street Drysdale

The City of Greater Geelong has received enquiries about sealing the road in Newcombe Street, Drysdale, between Princess Street and The Glen. The consultation will run from 7 June 2012 to 7 July 2012

"The construction of a sealed road provides an opportunity to review and address many issues residents have with current condition and operation of the street.

For new sealed road construction, it is Council policy to fund the works via a special charge scheme whereby property owners meet the cost of the construction work.

Future maintenance costs are provided by municipal rates revenue and not individual streets or property owners.

Having received advice that there is general support from property owners for the construction and sealing of Newcombe Street, from Princess Street to The Glen, the City has decided to engage with all property owners in Newcombe Street regarding street construction.

The survey has been broken into two independent sections as part of this consultation: Newcombe St - Princess St to The Glen Newcombe St - The Glen to Road End..."

More information is available from the Geelong Council. This is an opportunity for you to have your say.

Central Road Drysdale Residents not supported by VCAT

VCAT has handed down their decision on the Central Road retirement village drainage case.

The residents lost. Geelong Council's Special charge has been confirmed. The residents must pay the special charge for drainage.

We put up a valiant fight

The case took a whole day and it was very tiring. The amount of preparation that goes into fighting a case like this is huge.

We had a fair hearing. Our case was heard by Judge MF Macnamara, Vice President. He dismissed both our applications under Section 185 and 185AA of the Local Government Act 1989.

The Judge was sympathetic to our grounds for a hearing. However he said

"... success by an applicant for review requires demonstration that no benefit at all will accrue from the relevant work.  It is not sufficient to demonstrate for instance that the special benefit to accrue does not really justify the size of the rate or charge levied on the ratepayer...

I am inclined to think that viewed from the point of view of either of these ratepayers, the benefit held out by these works is simply not worth what they are being charged.  Nevertheless, that fact in itself, if it be accepted as a fact, is not sufficient to make out the relevant ground.  To the extent that these applications are based on this ground for review the applications must fail."

$77,935 and $73,352 is a lot of money for pensioners to pay.

What makes it worse is that even though Geelong Council has enabled the deferment of this payment, it comes at a cost. Specifically 5% compounding interest for the first five years and then subsequently according to present interest rates at a rate of between 9 - 10% thereafter.

That translates to a huge sum of money if payment is deferred for a reasonable amount of time.

This is payment for a drain these residents will not use in their life time.

The issue however, is that special benefit accrues to the land not to the people resident on the land. The land at some stage will be subdivided but probably not for a long period of time. In the mean time any residential development work that involves, drainage and other infrastructure development that, perceivably the land may benefit from, in the future, even before it has been subdivided, to which Geelong Council is a party to, will result in additional charges to the relevant landholders.

So if you live on a road which is unmade, has little drainage and no footpaths - beware! At some stage in the future, Geelong Council will come knocking on your door with their hands out saying you will pay and you will pay in the thousands for this infrastructure whether you personally want it, whether you will use it, or not. It is not about you, it is about the land, and it is ultimately what this Council wants to do with the land. The fact that you own it and have your own wants and needs and no capacity to pay is immaterial.

Geelong Council proposes new "Policy Special Rates and Charges."

Geelong Council has reviewed its special rates and charges process and will be recommending at its meeting to be held on Tuesday October 25, 2011 the adoption of the Policy Special Rates and Charges.
The policy defines what Council sees as a "Special Benefit" enjoyed by ratepayers who are levied with a special rate or charge for roads, drainage, footpaths, carparks and streetscapes.
Below is an extract from the Council Agenda 25 October 2011 (pdf format - 23.65mb) which includes the special rates policy and guidelines.

17. SPECIAL RATES AND CHARGES - REVIEW AND ADOPTION OF POLICY

Portfolio: Infrastructure - Cr Richards
Source: City Services - Engineering Services
General Manager: Gary Van Driel
Index Reference: Subject: Special Rates and Charges
Council Reports 2011

Summary

• A review of the special rate and charge process has been undertaken.
• A new Special Rates and Charges policy is presented to Council and this supersedes the relevant section of the currently used, Comprehensive Infrastructure Funding Policy.
• Council has in place Management Procedure, Debt Management – Special Rates and Charges, which addresses the issue of financial hardship.
• Part of the review process involved contact with all Councils in Victoria regarding the use of special rates and charges. Approximately two-thirds of Councils utilise the process.
• The special charge process has been particularly useful in facilitating a project forming part of the Geelong Ring Road Employment Precinct (GREP) and another major scheme is currently in the planning stage. It is doubtful whether those projects could proceed without the use of the special charge process.
• There are improvements which can be made in the community consultation phase along with the administration and particularly decision making and timing.
• There is scope within the existing administrative arrangements to evaluate and identify community benefit and apply this to schemes.

Recommendation

That Council adopt the Policy Special Rates and Charges (Appendix 17-1) and the attachment - Contribution Guidelines.

COUNCIL POLICY

1. PURPOSE

To set out the principles for the use of special rates and charges by Council, for the provision of infrastructure or services and their application in a fair, equitable and consistent manner.

2. SCOPE

This policy applies to the provision of "first up" infrastructure where it can be demonstrated that special benefit applies to those properties included in the scheme. The policy also covers the provision of on-going services to properties or a group of properties which also must satisfy the special benefit test.
The special rate and charge process broadly includes the following:

• Community consultation.
• The special benefit test.
• The relevant legislation and precedent.
• Scheme preparation and apportionment.
• Council processes leading to the scheme determination.

3. REFERENCES

• The Local Government Act 1989
• Special Rates and Charges Ministerial Guidelines – September 2004
• Planning and Environment Act 1987
• Various determinations by the Victorian Civil and Administrative Tribunal and other Courts.
• Council Policy – "Community Consultation" CPL 10.2
• Council Management Procedure – Debt Management – Special Rates and Charges" MPR510.2.1.1

4. DEFINITIONS

"Special benefit" – is a benefit received by those owners included in the scheme that is over and above that received by others who are not the subject of the scheme.

5. COUNCIL POLICY

This Council has utilised the special rate and charge provision since amalgamation in 1993. Some of the former member Council's also used private street scheme and drainage provisions of the Local Government Act 1958 from a period of around 1960 onwards.
Financial resources available, in most cases do not enable the construction of new infrastructure or if it can be programmed it would be significantly delayed. Council will continue with its special rate and charge program in order to provide new, up-front infrastructure and provide services. In the preparation, administration and execution of special rate and charge schemes, Council shall consider fairness, equity and consistency as fundamental principles.
The initiation of a special rate or charge scheme will generally come from the property owners themselves however there may be instances where for public safety or reasonable amenity, Council may promote a scheme. Council will attempt to provide obvious in-fill infrastructure through the special rate and charge process where applicable.
Drainage systems may be provided via the process and unless otherwise specified will be undertaken on the basis of alleviating public health issues, utilising Section 163B(1) of the Act.
As each special rate or charge scheme is unique, a consultation program shall be tailored to suit specific needs. Council policy CPL 10.2 shall be used as a guide. All property owners shall be given the opportunity to provide feedback to Council and discuss issues with Council Officers.
The preparation of special rate or charge schemes shall be undertaken by experienced Council Officers. The precedent created by reviewing bodies such as the Victorian Civil and Administrative Tribunal, Courts and Review Courts shall be taken into consideration when formulating schemes.
In every instance, special benefit to properties and owners, shall be evaluated and schemes will only proceed where this can be established.
The preparation and administration of special rate and charge schemes shall be in accordance with the Act and the Ministerial Guidelines, September 2004. The attachment to this policy "Contribution Guidelines" provides guidance. As schemes are generally unique there is no set method of apportioning costs, however, the Unit Cost method is preferred.
The basic, relevant infrastructure shall be included in a special charge scheme. Any works outside the scope or re-working of existing infrastructure shall be funded by Council.
In providing infrastructure, Council shall apply the standard which is used for other non-scheme projects. References used may be standard drawings, specifications, current practice and the application of reasonable standards and practice. In instances where property owners request a standard of infrastructure over and above the standard referred to above, the full cost attributed to the higher standard shall be funded by the property owners.
Where required, a Submissions Panel Hearing will take place, affording property owners the opportunity to address Councillors in a relatively informal setting. The Panel will formulate their recommendation as quickly as is practicable and this will form the basis for the recommendation to Council.
From time to time, Council may receive, or provide from its own range of funding streams, ex-gratia contributions to special rate or charge schemes. These funds are to be applied to offset the overall cost of the project and not specific components. Council may consider schemes from time to time, of a particular and special nature. For reasons unique to a particular scheme Council may resolve to apply a funding arrangement which differs to that shown in the attached "Contribution Guidelines". This shall be project specific, only.
Council, in considering a scheme, may elect to adopt, abandon or modify a project. The Victorian Civil and Administrative Tribunal may review a scheme on owners request. Council Officers will represent Council's decision including reasons why the scheme should proceed.
Where an infrastructure Scheme is adopted, with or without review, a public tender process shall be used to appoint a suitable contractor. Council's Supervising Engineer shall manage the project including any further discussions and negotiations with property owners.
Once the project has reached final completion and all costs have been aggregated, a finalisation report will be presented to Council. Any cost adjustments will be in accordance with requirements of the Act.

6. QUALITY RECORDS

Quality Records shall be retained for at least the period shown below.

Record Retention/Disposal	Responsibility	Retention Period	Location
Council Reports	Corporate Records	Ongoing	DataWorks
Minutes	Engineering Services	7 years	DataWorks
Scheme details, working documents	Engineering Services	7 years	EngineeringServices

7. ATTACHMENTS

CONTRIBUTION GUIDELINES

The following provides a guide for Council regarding financial contribution arrangements for the various types of special rate and charge schemes.

1. Road Infrastructure

Property owners, where special benefit can be established, pay for full cost of works as base case. In certain circumstances a contribution to a scheme, by Council or other parties is warranted and this includes:

• Council owned land abutting the works.
• Land owned by the Crown or other Authority which is unable to be joined in the scheme.
• A standard road pavement width of 7.5m for residential areas and 10.0m for industrial areas shall be used as a benchmark and any width greater than this is to be funded from sources other than property owners.
• Community benefit shall be assessed on each project and the cost attributable to this benefit, paid for by Council.
• Footpaths shall be funded on the basis of 50% Council and 50% property owners. Owners contribution may be reduced subject to community benefit analysis.
• Rural roads will be assessed for charging purposes on a 6.0m road pavement and a maximum charge of $15,000 applied to property owners. This will be the subject of CPI increases commencing 1 July 2012.

2. Drainage Infrastructure

• Easement drainage over private property shall be fully funded by benefiting owners.
• Main drainage shall be considered on a catchment basis and funded by benefiting owners.

3. Carparks and Streetscapes

• Generally to be the subject of consideration by Council on an individual basis.

4. Marketing, Promotion and Business Development

• Program to be fully funded by business / commercial owners within the specified catchment.
• Properties used exclusively for residential purpose to be exempted.

Update 7 November 2011 - Council adopted / passed the recommendations on 25 October 2011. The minutes are available in pdf format (23mb)

Drysdale Duke Street Residents Protest Geelong Council Footpath Charges

The residents of the area bounded by Duke Street, Granville Street, Princess Street and Palmerston Street in Drysdale are up in arms over the Geelong Council's charges for footpath construction. They don't see why they should have to pay for something they did not ask for, do not want and believe is already covered by the rates they pay every year.

The residents were interviewed on A Current Affair on Wednesday 1 September - watch the video.

The Geelong Council Minutes of 27 July 2010 ( in pdf format) show that the Council agreed to the following:

That Council having declared a special charge on 11 March, 2008 for the purposes of defraying the expenses in relation to the construction of Duke Street between Wyndham Street and Newcombe Street, Granville Street, Palmerston Street and High Street, Drysdale (Appendix 13-2 – Plan) in accordance with Section 163 of the Local Government Act 1989 (the Act) resolves that:

1) the special charges as declared be varied in accordance with actual costs incurred on the project as required by Section 166 of the Act as shown in Schedule A – Appendix 13-1;

2) the General Manager of Corporate Services is authorised to levy and recover the special charges by sending notices to the persons who are liable to pay in accordance with Section 166 of the Act and the Regulations; and

3) in accordance with Section 172, the rate of interest which is payable on the special charges which have not been paid by the specified date is set at Council’s overdraft rate, reviewed every three months (provided that it shall not exceed the rate fixed by the Governor in Council by Order for the purposes of Section 172 2A in which case the rate of interest shall be the maximum rate fixed by the Governor in Council by Order for the purposes of the Section). The interest is to be calculated from the date the special charge is due, with a six months interest free period, providing those persons who choose to pay by instalments adhere to their repayment plan.

See my previous article for more information.

Special Charge for Princess Street, Drysdale, Footpath confirmed - Minutes from Council meeting held 10 August 2010

The Geelong Council have confirmed the declaration of a special charge to cover the cost of the proposed footpath and kerb and channel construction in Princess Street.

Specifically that:

1) the following declaration of a Special Charge be confirmed:

a) a special charge be declared for the period until the work has been completed and the scheme finalized.

b) the special charge be declared for the purpose of defraying anyexpenses incurred by Council in relation to the construction of footpath and kerb & channel and road pavement in Princess Street, Drysdale, west side between Newcombe Street and Eversley Street which project:

b1) will provide proper pedestrian access, proper sealed road access, kerb & channel, improved nature strips and enhancement to the general amenity for each of the properties included in the scheme;

b2) Council considers is or will be a special benefit to those persons required to pay the special charge (and who are described in succeeding parts of this Resolution); and

b3) arises out of Council’s function of planning for and providing infrastructure for property owners.

c) The:

c1) cost of performing the function described in Part 1 (b) of this Resolution based on estimated cost, be recorded as $114,181.

c2) total amount of the special charge to be levied, as based on estimated cost, be recorded as $38,461.

d) It be recorded that, for the purposes of Section 163 (2A) of the Local Government Act 1989, the special charge proceeds will not exceed the amount calculated in accordance with the prescribed formula (R x C =S), the:

d1) ‘benefit ratio’ (R) being calculated at 100%, and representing the total benefits of the special charge scheme that will accrue as special benefits to all persons liable to pay the special charge; and

d2) ‘community benefit’ (C) being assumed as zero for kerb & channel and road pavement and 50% for footpath in Princess Street, Drysdale.

e) the following be specified as the area for which the special rate is so declared:

e1) the area within municipal district of Council highlighted in the plan attached to this Resolution (“the area”).

f) the following be specified as the land in relation to which the special charge so declared:

f1) land within the area shown on the plan.

g) the following be specified as the criteria which form the basis of the special charge so declared:

g1) ownership of any land described in Part 1(e) of this Resolution.

h) the following be specified as the manner in which the special charge so declared will be assessed and levied:

h1) the frontage of lots abutting the works shall be used to calculate the individual cost to a lot.

h2) in the case of Unit development the cost allocated to each Unit shall be based on the schedule of entitlements and liabilities as shown on the plan of subdivision.

h3) the special charge will be levied by sending a notice to the person who is liable to pay, pursuant to section 163(4) of the Local Government Act 1989.

i) having regard to the preceding parts of this Resolution but subject to Section 166 (1) of the Local Government Act 1989, it be recorded that, subject to any further Resolution of Council, the special charge will be due and payable on the date(s) fixed under Section 167 of the Local Government Act 1989 as the date or dates on or by which Council’s general rates are due.

2) there are no incentives declared as incentives to be given by Council for the payment of the special charge before the date(s) specified for its payment under Section 167 (3) of the Local Government Act 1989.

3) Council’s Chief Executive Officer be authorised to levy the Special Charge in accordance with Section 163 (4) of the Local Government Act 1989.

More information is available from Greater Geelong City Council, Minutes of Ordinary Meeting, 10 August 2010 - in pdf format (1916kb)

Special Charge for Princess Street, Drysdale, Footpath

The City of Greater Geelong is levying a special charge on residents in Princess Street (west side between Newcombe Street and Eversley Street) for footpath construction - below is an extract from the agenda for the Council meeting for tomorrow night (10 August)

PRINCESS STREET, DRYSDALE - PROPOSED FOOTPATH AND KERB & CHANNEL CONSTRUCTION - SRC 292 - DECLARATION OF CHARGE

Portfolio: Transport and Infrastructure - Cr Richards

Source: City Services - Engineering Services

General Manager: Gary Van Driel

Index Reference: Subject: Special Rates and Charges

Street: Princess Street, Drysdale

Summary

• This report relates to a proposed special charge scheme for construction of footpath and kerb & channel in Princess Street, Drysdale west side between Newcombe Street and Eversley Street as shown on plan - Appendix 5-3.
• The section of footpath and road services a residential area and is in close proximity to the main street and shopping area.
• Both footpath and kerb & channel are in place on both the north and south sides of this block.
• Council has received complaints and enquiries regarding the provision of footpath in particular.
• There are eight property owners and the estimated cost for footpath and kerb and channel varies from $2,977 to $10,464.
• The Council contribution to the scheme is $75,719 being half cost of the footpath, drainage works and additional pavement works.
• There were three objections received regarding the scheme and these were considered by the Submissions Review Panel. The Panel sought a review for one property and on this basis recommend Council proceed with the scheme.
• The scheme has been prepared in accordance with the special rate and charge provisions of the Local Government Act, along with Council’s Comprehensive Infrastructure Funding Policy.
• This report seeks a resolution by Council to “Declare the Charges” for road construction in Princess Street, Drysdale in accordance with the Special Charge Scheme process.

Recommendation

That:

1) the following declaration of a Special Charge be confirmed:

a) a special charge be declared for the period until the work has been completed and the scheme finalized.

b) the special charge be declared for the purpose of defraying any expenses incurred by Council in relation to the construction of footpath and kerb & channel and road pavement in Princess Street, Drysdale, west side between Newcombe Street and Eversley Street which project:

b1) will provide proper pedestrian access, proper sealed road access, kerb & channel, improved nature strips and enhancement to the general amenity for each of the properties included in the scheme;

b2) Council considers is or will be a special benefit to those persons required to pay the special charge (and who are described in succeeding parts of this Resolution); and

b3) arises out of Council’s function of planning for and providing infrastructure for property owners.

c) The:

c1) cost of performing the function described in Part 1 (b) of this Resolution based on estimated cost, be recorded as $114,181.

c2) total amount of the special charge to be levied, as based on estimated cost, be recorded as $38,461.

d) It be recorded that, for the purposes of Section 163 (2A) of the Local Government Act 1989, the special charge proceeds will not exceed the amount calculated in accordance with the prescribed formula (R x C =S), the:

d1) ‘benefit ratio’ (R) being calculated at 100%, and representing the total benefits of the special charge scheme that will accrue as special benefits to all persons liable to pay the special charge;

and

d2) ‘community benefit’ (C) being assumed as zero for kerb & channel and road pavement and 50% for footpath in Princess Street, Drysdale.

e) the following be specified as the area for which the special rate is so declared:

e1) the area within municipal district of Council highlighted in the plan attached to this Resolution (“the area”).

f) the following be specified as the land in relation to which the special charge so declared:

f1) land within the area shown on the plan.

g) the following be specified as the criteria which form the basis of the special charge so declared:

g1) ownership of any land described in Part 1(e) of this Resolution.

h) the following be specified as the manner in which the special charge so declared will be assessed and levied:

h1) the frontage of lots abutting the works shall be used to calculate the individual cost to a lot.

h2) in the case of Unit development the cost allocated to each Unit shall be based on the schedule of entitlements and liabilities as shown on the plan of subdivision.

h3) the special charge will be levied by sending a notice to the person who is liable to pay, pursuant to section 163(4) of the Local Government Act 1989.

i) having regard to the preceding parts of this Resolution but subject to Section 166 (1) of the Local Government Act 1989, it be recorded that, subject to any further Resolution of Council, the special charge will be due and payable on the date(s) fixed under Section 167 of the Local Government Act 1989 as the date or dates on or by which Council’s general rates are due.

2) there are no incentives declared as incentives to be given by Council for the payment of the special charge before the date(s) specified for its payment under Section 167 (3) of the Local Government Act 1989.

3) Council’s Chief Executive Officer be authorised to levy the Special Charge in accordance with Section 163 (4) of the Local Government Act 1989.

More information is available in the Geelong Council's Meeting Agenda for Tuesday 10 August 2010 (pdf format - 4349kb)

Update to: Finalisation of a Special Charge Scheme for construction of Duke Street, Granville Street, Palmerston Street and part of High Street, Drysdale

The mintues of the Geelong Council meeting of July 27, 2010 have now been published. The finalisation of the Duke Street special charge has been moved by Cr Ricahrds, seconded by Cr Granger and carried by the Council. Details below - you can read the July 27, 2010 minutes in full in pdf format on the Geelong Council's website.

DUKE STREET GROUP OF STREETS, DRYSDALE - SRC 296 - FINALIZATION OF SCHEME

Portfolio: Transport & Infrastructure - Cr Richards

Source: City Services - Engineering Services

General Manager: Gary Van Driel

Index Reference: Subject: Special Rates and Charges

Street: Duke Street


Summary

• This report relates to the finalisation of a Special Charge Scheme for construction of Duke Street, Granville Street, Palmerston Street and part of High Street, Drysdale, known as the Duke Street group of streets as shown in the attached plan – Appendix 13-2.
• Council declared a special charge for the scheme on 11 March 2008.
• The scheme involved 58 properties as shown on Plan – Appendix 13-2.
• The scheme has been prepared in accordance with the Special Rates and Charges provisions of the Local Government Act along with Council’s Comprehensive Infrastructure Funding Policy.
• The report seeks a resolution by Council to ‘vary’ the special charge for the works to finalise the Duke Street Group of Streets, Drysdale Special Charge Scheme.

Cr Richards moved, Cr Granger seconded - That Council having declared a special charge on 11 March, 2008 for the purposes of defraying the expenses in relation to the construction of Duke Street
between Wyndham Street and Newcombe Street, Granville Street, Palmerston Street and High Street, Drysdale (Appendix 13-2 – Plan) in accordance with Section 163 of the Local Government Act 1989 (the Act) resolves that:
1) the special charges as declared be varied in accordance with actual costs incurred on the project as required by Section 166 of the Act as shown in Schedule A – Appendix 13-1;
2) the General Manager of Corporate Services is authorised to levy and recover the special charges by sending notices to the persons who are liable to pay in accordance with Section 166 of the Act and the Regulations; and
3) in accordance with Section 172, the rate of interest which is payable on the special charges which have not been paid by the specified date is set at Council’s overdraft rate, reviewed every three months (provided that it shall not exceed the rate fixed by the Governor in Council by Order for the purposes of Section 172 2A in which case the rate of interest shall be the maximum rate fixed by the Governor in Council by Order for the purposes of the Section). The interest is to be calculated from the date the special charge is due, with a six months interest free period, providing those persons who choose to pay by instalments adhere to their repayment plan.
Carried.
Background
This project involved the construction of:

• Duke Street from Wyndham Street to Newcombe Street;
• Granville Street from Newcombe Street to High Street;
• Palmerston Street from Newcombe Street to Granville Street; and
• High Street – completion of kerb and channel in front of 56 High Street and 18 Granville Street.

All these roads required different forms of construction to bring them up to an acceptable standard.

• Duke Street required road pavement, kerb and channel, sealing and drainage;
• Granville Street required kerb and channel only as does High Street; and
  Palmerston Street required sealing of existing pavement only (already road pavement and kerb and channel).
  The works have now been completed.

Discussion
This special charge scheme is, in fact, four individual schemes combined into one. The cost apportionment of each of the sub sections has been done individually and the finalization of cost has been done in a similar manner. 

The overall cost of the project was approximately 20% below the estimate. This cost reduction applies to three of the four sub sections with Palmerston Street the exception. In the case of Palmerston Street the treatment specified was to add minimal pavement material, surface preparation seal and seal. Kerb and channel was already in place. 

During the course of preparation it was discovered that in some locations very little pavement existed and therefore excavation and additional pavement became a variation. This was despite the fact that sub surface investigations had been undertaken. 

This excavation increased the cost of this component of the works from an estimated $44,811 to $55,147. In accordance with a recent amendment to the special rate and charge provisions of the Local Government Act, Council can only charge up to 10% above the estimate, for contract variations. Therefore an amount of $49,292 has been allocated to the Palmerston Street properties or 10% above the estimate. 

Environmental Implications
There are no environmental implications including sustainability, energy use, water use or alternative material use, in Council’s decision to finalise this scheme. The process is an administrative matter only. 

Financial Implications
The costs associated with the sub sections and the totals of the project are as follows: 

The Council contribution for Duke Street takes into account the Reserve which is Crown Land managed by Council with the Department of Sustainability and Environment the land owners. Council cannot recover a special charge from the Department therefore must fund the works attributable to this Crown Land frontage. 

Policy/Legal/Statutory Implications
The scheme has been administered in accordance with the special rate and charge provisions of the Local Government Act as well as Council Comprehensive Infrastructure Funding Policy. There are no issues regarding the Human Rights Charter. 

Officer Direct or Indirect Interest
No Council Officer involved with this process has any direct or indirect interest in the properties. 

Risk Assessment
There are no risk assessment issues involved with Council proceeding to finalize the scheme. 

Social Considerations
The provision of a sealed road provides greater safety and improves the general amenity of the area and generally adds to the social well being of the local community. 

Communication
Communication with property owners has taken place during the course of the project.
Owners will be advised of Council’s decision and the final cost.

Finalisation of a Special Charge Scheme for construction of Duke Street, Granville Street, Palmerston Street and part of High Street, Drysdale

The Agenda for the Geelong Council meeting scheduled for Tuesday 27 July 2010 has been published on the City of Greater Geelong website. Of interest to Drysdale / Clifton Springs residents is the finalisation of a special charge scheme for the construction of Duke Street, Granville Street, Palmerston Street and part of High Street, Drysdale - commly referred to as the Duke Street group. Below is an extract from the agenda:
DUKE STREET GROUP OF STREETS, DRYSDALE - SRC 296 - FINALIZATION OF SCHEME
Portfolio: Transport & Infrastructure - Cr Richards
Source: City Services - Engineering Services
General Manager: Gary Van Driel
Index Reference: Subject: Special Rates and Charges
Street: Duke Street

Summary

• This report relates to the finalisation of a Special Charge Scheme for construction
  of Duke Street, Granville Street, Palmerston Street and part of High Street, Drysdale, known as the Duke Street group of streets as shown in the attached plan – Appendix 13-2.
• Council declared a special charge for the scheme on 11 March 2008.
• The scheme involved 58 properties as shown on Plan – Appendix 13-2.
• The scheme has been prepared in accordance with the Special Rates and Charges provisions of the Local Government Act along with Council’s Comprehensive Infrastructure Funding Policy.
• The report seeks a resolution by Council to ‘vary’ the special charge for the works to finalise the Duke Street Group of Streets, Drysdale Special Charge Scheme. The process is shown in Attachment 13-1 – Process Chart.

Recommendation
That Council having declared a special charge on 11 March, 2008 for the purposes of defraying the expenses in relation to the construction of Duke Street between Wyndham Street and Newcombe Street, Granville Street, Palmerston Street and High Street, Drysdale (Appendix 13-2 – Plan) in accordance with Section 163 of the Local Government Act 1989 (the Act) resolves that:
1) the special charges as declared be varied in accordance with actual costs incurred on the project as required by Section 166 of the Act as shown in Schedule A – Appendix 13-1;
2) the General Manager of Corporate Services is authorised to levy and recover the special charges by sending notices to the persons who are liable to pay in accordance with Section 166 of the Act and the Regulations; and
3) in accordance with Section 172, the rate of interest which is payable on the special charges which have not been paid by the specified date is set at Council’s overdraft rate, reviewed every three months (provided that it shall not exceed the rate fixed by the Governor in Council by Order for the purposes of Section 172 2A in which case the rate of interest shall be the maximum rate fixed by the Governor in Council by Order for the purposes of the Section). The interest is to be calculated from the date the special charge is due, with a six months interest free period, providing those persons who choose to pay by instalments adhere to their repayment plan.

A plan of the affect properties is reproduced below:

More information is available from the Geelong council Agenda for 27 July 2010 - in pdf format (6280kb).