HUME CITY COUNCIL
POLICY
SPECIAL CHARGE SCHEME POLICY- ROADS AND DRAINS
Policy Ref. No:
CP2007/06/75
Date Adoption:
12 June 2007
Date Amended:
12 June 2007
Date of Review:
12 months after adoption
Responsible Officer:
Manager Infrastructure Planning
Department:
Infrastructure Planning
1.
INTRODUCTION
1.1
The Special Charge Scheme Policy is an essential policy for Councils
that undertake road and drainage works under the Special Charge
Scheme Provisions of the Local Government Act (LGA).
1.2
Hume City Council has a number of locations within the municipality
where owners wish to have the state of their existing roads and
drainage assets upgraded to the standards typically provided in new
urban subdivisions.
1.3
Many of these locations are industrial, rural or semi rural settings
where the land was developed with gravel roads, without underground
drainage and the owners wish to improve the infrastructure.
1.4
Where infrastructure works provide benefit to owners the cost of such
works can be passed to those owners under the Special Charge
Scheme provisions of the LGA.
1.5
The Special Charge provisions of the LGA are difficult to follow for
many people and stipulate minimum requirements to meet the
legislation. A Special Charge Scheme Policy provides a more
concise, easy to read process that is tailored to describe Hume City
Council’s process in dealing with such schemes.
1.6
The policy will be of significant benefit to owners looking to participate
in a Special Charge Scheme and provides support for the defence of
Schemes when challenged at the Victorian Civil and Administrative
Tribunal (VCAT).
1.7
The Hume Policy has been derived from the LGA, with reference to
other Council’s and their Special Charge Scheme policies and from
legal publications on the topic.
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 1 of 8
Infrastructure
2.
POLICY STATEMENT
2.1
3.
It is Council’s policy to provide a fair, informative and legislative basis
to the implementation of Special Charge Schemes in accordance with
this policy.
POLICY IMPLEMENTATION
3.1
Initiation
3.1.1 A special charge scheme for the purpose of road or drainage
construction will be initiated by Council generally in response to
a petition or joint letter from rate payers or a report from
Council Officers.
3.1.2
Those Council officers dealing with a request will ensure the
procedure is implemented in accordance with this policy.
3.1.3
The Special Charge Scheme Procedure within this Policy will
be provided to owners involved in schemes to help them
understand the steps to have their road or drain upgraded.
3.1.4
Upon receipt of an initiating document, Council Officers will
prepare a preliminary report to Council. This preliminary report
will address the following:
a)
Scope of works.
b)
Whether the works are within the powers and functions of
Council.
c)
Whether the works will be of special benefit to the persons
required to pay a potential special charge for this
purpose.
d)
The need for the works taking into account matters of
health, safety and amenity.
e)
Identification of the likely beneficiaries of the works (refer
to Section 4.0).
f)
A preliminary cost which provides a broad indication of
costs per affected property.
g)
Council shall then determine whether or not to proceed
with a process of preliminary consultation.
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 2 of 8
Infrastructure
3.2
Preliminary Consultation
3.2.1 The Council will advise the likely beneficiaries of the content of
the preliminary report and undertake a survey of the
beneficiaries.
3.2.2 The survey shall clearly outline what the proposed works
involve and provide an indication of the cost that would be
incurred and the options for payment that are available. This
consultation shall aim to determine whether there is support for
the proposed works.
3.3
Report on the Consideration of a Special Charge
3.3.1
Council Officers will then provide a report to Council on the
outcome of this survey and consultation. Included in the report
will be a recommendation that Council either take no further
action or proceed with the preparation of a special charge
scheme.
3.3.2
If there is a recommendation for a special charge scheme, the
report will contain the following:
a)
The consideration of a special charge.
b)
The beneficiaries of a potential special charge.
c)
Design plans or other information sufficient to determine
the beneficiaries of a potential special charge.
d)
Estimate of costs.
e)
The criteria used to determine the special benefit and the
degree of special benefit to beneficiaries (refer to Sections
4 & 5).
f)
The distribution of the costs.
g)
The period for which a potential special charge remains in
force.
h)
Council contribution (if any).
i)
Council will resolve to abandon, alter or give public notice
of its intention to make declaration of a special charge.
The potential beneficiaries will be advised of Council’s
decision.
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 3 of 8
Infrastructure
j)
3.4
If Council decides to give public notice of its intention to
make declaration of a special charge, the procedure
detailed in Section 163 of the Local Government
(Democratic Reform) Act 2003 will be followed. Section
163 of the Local Government (Democratic Reform) Act
2003 has provisions for formal submissions from affected
property owners to Council and also to the Victorian Civil
and Administrative Tribunal. Details of the proposal will be
made available for inspection throughout this process.
Criteria to Determine Special Benefit
3.4.1 Road Construction
a)
The criteria is whether the Road construction provides a
special benefit to owners of lands that abut the road and
therefore use the road as direct access to their property.
b)
Council can only declare a special charge on land which is
rateable, as provided under Section 155 of the Local
Government Act 1989.
3.4.2 Drainage Services
A drain shall provide a special benefit to lands which have the
following characteristics:
3.5
a)
Abutting the said drain on the high side which are able to
direct water to the drain.
b)
Abutting the said drain on the low side which receive
protection by virtue of the drain.
c)
Abutting the said drain which is part of a kerb and channel
protection of properties on the low side and receiving the
benefit of the kerb and channel works.
d)
The contour of the land shall be used to determine a), b)
and c) above. The existence or evidence of any private
stormwater discharge away from the proposed drain shall
bear no relevance in determining the lands which derive a
special benefit.
Criteria to Determine Degree of Special Benefit
3.5.1 Road Construction
a)
The criteria to determine the degree of special benefit that
the Road construction provides will generally be based on
frontage (the width of the frontage abutting the road).
Corner properties will contribute 100% of the frontage cost
and 30% of the side frontage that abuts the road.
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 4 of 8
Infrastructure
b)
c)
However this criteria will not always be equitable if
properties in the scheme have varying frontages and
varying depths. In order to achieve a fair outcome, it may
be necessary to use other methods to determine the most
appropriate cost apportionment per property. Other
methods may include:

Contribution based on the area of each property.

Contribution based on equal contributions (i.e. the
total cost is divided equally between the beneficiaries
and they all contribute the same amount).

Contribution based on land value.

Contributions based on frontage and area.

Combinations of the above.
The criteria to be adopted to determine the degree of
special benefit will be recommended to Council by Council
Officers.
3.5.2 Drainage Services
The criteria to determine the degree of special benefit the drain
provides shall be:
a)
Both higher and lower lands share liability equally and
costs are based on the area of each individual allotment
rationalised to consider the flow path of surface water to
the drain and rationalised to consider the extent of
protection by virtue of the drain.
b)
The percentage ratio of impermeable to permeable surface
contained within an allotment shall bear no relevance other
than the flow path of surface water in determining such
liability for each individual allotment.
c)
Council is required to consider the total special benefits
derived from the construction of a road or drain to every
party that would derive benefit from such construction.
This could include special benefits to those that are not to
be included in the scheme, or community benefits.
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 5 of 8
Infrastructure
3.6
Design Criteria for Road or Drain Construction
3.6.1 Council will utilise Council’s standard specifications for the
construction of roads and drains and relevant Australian
Standards for the purpose of this policy. However, Council’s
standard specification may be modified or altered where
necessary.
3.7
Private Assets contained within the Drain Alignment
3.7.1 In the event of the proposed alignment of the drain being
obstructed by vegetation, buildings or other permanent or
temporary assets and there being no other suitable alternative
alignment for the drain, the cost associated with the removal
and/or relocation of such obstructions shall form a component
of the costs associated with the special charge.
3.8
Council Contribution
3.8.1 Council will contribute towards the cost of the works
constructed under this policy under the following
circumstances:
3.9
a)
Where Council owned land abuts the unmade road.
b)
If Council determines it appropriate for Council to
contribute to the construction of the road or drain.
c)
Where it has been determined that there will be a special
benefit as a result of the construction to parties that are not
to be included in the scheme or there will be a benefit to
the wider community (community benefit), Council is
required to contribute an amount proportional to the benefit
derived.
d)
Where Council considers that the size of the drain should
be increased to provide stormwater other than for the
benefiting properties, Council shall contribute the
additional cost associated with the provision of such
drainage.
Appointment of Contractor
The tender process for the works will be in accordance with Council
policy.
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 6 of 8
Infrastructure
3.10
Connection to drain constructed under Special Charge
3.10.1 The connection of premises to the drain is an owner’s
responsibility.
3.10.2 Upon completion of the drain Council shall notify that fact to
owners of the land to be drained and require them to connect
their premises (at their cost) to the drain within one month of
this request.
3.10.3 Drains within properties less than 2.0 metres from the
alignment of the drain will be considered part of the works
associated with the special charge. Such drains shall be
connected by the appointed contractor at no extra charge to the
property owner.
3.11
Administration Costs
3.11.1 Council will recover administration costs of 7.5% of the actual
total cost of the works. This administration cost is to be funded
from the special charge and is to recover costs incurred in the
design, supervision and administration of the works.
3.12
Variation from the Estimated Cost
3.12.1 Once the works have been completed, owners who are liable
must be advised of the actual cost of the works. If the cost of
the special charge results in a material increase of 15% or more
above the estimated amount, Council is required to give public
notice and consider public submissions in accordance with
Section 223 of the Local Government (Democratic Reform) Act.
3.12.2 If the cost of the actual works is below the estimated cost, all
benefiting owners will be refunded proportionately.
3.13
Payment
3.13.1 Payment of a special charge will be made in a lump sum
payable within one month of commencement of the work or by
40 quarterly instalments over 10 years commencing within one
month of commencement of the work. The interest payment on
the instalment option will be 7%. Late payments will be
charged at the prevailing penalty interest as provided in the
Penalty Interest Rates Act 1983.
3.14
Variation to Policy
3.14.1 Variations to this policy shall only be by Council resolution. The
policy will be reviewed after the first 12 months of operation to
ensure it is dealing fairly and legally with affected owners. It
will be reviewed at least every two years from that time on.
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 7 of 8
Infrastructure
4.
RELATED DOCUMENTS
4.1
Local Government (Democratic Reform) Act 2003
4.2
Ministerial notes in relation to Special Charge Schemes
Adopted by Council on: 12/06/07
Review Date:
Cease Date:
June 2008
Responsible Department:
Planning
Revision No.
Page 8 of 8
Infrastructure