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.