|
OrdinaryMeeting Notice and Agenda
An Ordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Biamanga Room Bega Valley Commemorative Civic Centre
Bega on Supplementary Agenda
|
|
OrdinaryMeeting Notice and Agenda
An Ordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Biamanga Room Bega Valley Commemorative Civic Centre
Bega on Supplementary Agenda
|
Council 28 August 2019
In accordance with the resolution of Council 20 September 2017, this section of the agenda will be chaired by the Mayor
11.6 Driftwood Village request to connect to Council's reticulated sewer.................................... 4.
Council |
28 August 2019 |
11.6 Driftwood Village request to connect to Council's reticulated sewer.................. 4
|
Council 28 August 2019 |
Item 11.6 |
At its meeting of 27 April 2004 Council resolved to provide reticulated sewerage to Acacia Ponds (Acacia) and Kalorama Caravan Park (Driftwood) on a user-pays basis. This report seeks a Council Resolution regarding acceptance of a reduced financial contribution from Driftwood to allow connection of their premises to Council’s sewerage system.
Director Assets and Operations
Executive Summary
Merimbula Lake has significant environmental value and supports vibrant aquaculture and tourism industries. Intensive development of Acacia and Driftwood land in the Millingandi area was historically constrained because of the inherent limitations of onsite sewage management.
Approximately 20 years ago Acacia and Driftwood developers approached Council seeking connection to the reticulated sewer system. At its meeting of 27 April 2004, Council resolved to provide in principle agreement for construction of reticulated sewerage on a user-pays basis.
On 30 June 2005 Council and Acacia executed a Heads of Agreement to allow construction of a reticulated sewerage system. At a later stage in the process, Driftwood representatives advised Council they would be unable to contribute to the construction costs. They are not currently connected to the sewerage system.
Representatives of the Driftwood company have expressed a renewed interest in a connection and have made a reduced offer of $500,000 as their contribution towards historical construction costs incurred by Council.
Background
On 27 April 2004 Council resolved to build a sewer pump station and rising main to allow Acacia and Driftwood to connect to sewerage and enable further development. (Attachment 1)
The parks were to contribute, on a user pays basis, towards the tendered construction cost of the sewer pump station and rising main with Section 64 contributions to be apportioned across the two properties, based on current and potential development. It should be noted the Section 64 charges are not relevant to this report due to recent policy changes.
On 30 September 2010, Acacia signed a Heads of Agreement (Attachment 2) and paid both Section 64 and construction contributions to Council. On 4 March 2011 Driftwood withdrew their interest in a connection in association with a withdrawal of a Development Application. (Attachment 3)
Council engaged contractors, Poonindie Pty Ltd (Attachment 4), to build the sewer pump station and rising main for $1.7 million based on the maximum capacity both parks would place on the system with future possible development. The works were completed in 2011.
On 17 March 2011 representatives from Driftwood met with Council officers to discuss options to connect. On 4 April 2011 Council’s General Manager advised Driftwood of an agreeable reduced contribution proposal for construction costs and Section 64 contributions. (Attachment 5)
On 13 March 2019, representatives of Driftwood again approached Council with a commercial offer for connection to the sewer system. (Attachment 6) It should be noted the offer is significantly lower than the original apportioned contribution cost as detailed in Council’s letter of 4 April 2011.
Options
The following options are available for Council consideration
· Accept the $500,000 offer.
· Reject the $500,000 offer and advise Driftwood the terms of the 4 April 2011 letter still apply.
· Reject the $500,000 offer and seek a revised increased offer from Driftwood.
Financial and resource considerations
Construction works have been completed for a tendered sum of $1.7 million. Connection of Driftwood would allow some recouping of the capital funds expended.
Legal /Policy
The construction of the pump station and rising main, resulted in Council involvement in private sector developer works. This is not a policy position that would be supported by Council unless there is extenuating circumstances, noting in this case the importance of protecting the integrity of the Merimbula Lake.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
The constructed works benefit two private entities and have little strategic alignment with Council core business in Sewerage Services although it should be noted that having one consolidated sewerage system rather than onsite solutions does have potential to minimise environmental failure points.
Environmental / Sustainability
The pump station and rising main works have allowed development in Millingandi to take place in an environmentally sustainable manner. By having the existing development connected to the reticulated sewer system, that has capacity to cater for that demand, it is likely that environmental risks will be reduced.
Economic
The constructed works provided direct economic benefit to the Acacia and Driftwood developments. Aquaculture and tourism industries are indirect economic beneficiaries.
Risk
Currently, Council would not ordinarily enter into arrangements with developers to facilitate infrastructure construction supporting their development, unless identified in an adopted servicing strategy. It should be noted that consideration of this report relates to historical decisions of Council, and it would not be recommended that Council consider entering into any similar arrangements for new infrastructure.
Given that the existing system has the capacity to take the proposed loads, it is not expected there would be any infrastructure related issues, should Council support connection of the Driftwood development.
1⇩. 2004.04.27 Council meeting resolution report Driftwood Village
2⇩. Signed deed of agreement for sewerage services between Acacia Ponds and Bega Valley Shire Council
3⇩. 2011.03.04 Email from Chairman of Driftwood Village P/L Wayne Matthews advising withdrawal of a Development Application
4⇩. 2010.09.21 Council report and tender acceptance for Stringybark Place Sewage Pump Station
5⇩. 2011.04.04 Peter Tegart letter to Driftwood Village Pty Ltd
6⇩. 2019.03.13 Email from Chairman of Driftwood Village P/L Wayne Matthews - Commercial offer for connection to the sewer system
|
Council |
28 August 2019 |
|
Item 11.6 - Attachment 1 |
2004.04.27 Council meeting resolution report Driftwood Village |
|
28 August 2019 |
|
|
Item 11.6 - Attachment 2 |
Signed deed of agreement for sewerage services between Acacia Ponds and Bega Valley Shire Council |
|
28 August 2019 |
|
|
Item 11.6 - Attachment 3 |
2011.03.04 Email from Chairman of Driftwood Village P/L Wayne Matthews advising withdrawal of a Development Application |
|
28 August 2019 |
|
|
Item 11.6 - Attachment 4 |
2010.09.21 Council report and tender acceptance for Stringybark Place Sewage Pump Station |
|
28 August 2019 |
|
|
Item 11.6 - Attachment 5 |
2011.04.04 Peter Tegart letter to Driftwood Village Pty Ltd |
|
28 August 2019 |
|
|
Item 11.6 - Attachment 6 |
2019.03.13 Email from Chairman of Driftwood Village P/L Wayne Matthews - Commercial offer for connection to the sewer system |
