A PLANNED road and drainage upgrade project in Crib Point has blown out by at least $1m – and costs could keep rising as unresolved issues with property owners and authorities delay progress.
The Mornington Peninsula Shire originally budgeted for $795,000 to undertake the works at Creswell St (stopping at Denman St) and Cooma St in Crib Point which were rezoned from industrial to residential in 2019. But the project is now forecast to cost the council at least $1.8m, which was based on estimates in late 2023 when a revised Development Contributions Plan (DCP) to fund the works was adopted by the shire.
The DCP is a planning tool that legally mandates landowners to contribute towards the costs of infrastructure that a council must then deliver. The total cost of the project, including sealing of road reserves and improving drainage infrastructure to reduce flooding risks, is expected to cost about $5.5m.
Council-hired consultants discovered the higher-than-expected costs after conducting a review of the former DCP which “identified several issues and risks”, with a shire report noting, the “current infrastructure construction costs far exceed those estimated in the original DCP”.
Under the revised DCP, landowners are to contribute 70 per cent of the total costs while council would contribute 30 per cent. Sixty-four property owners will need to contribute with nine owners having already paid, totalling $227,576.15. But under the “rules” of the DCP, these owners cannot pay any further contributions “even if the revised DCP is approved and gazetted”.
Construction is yet to begin and is likely to be delayed as a proposed amendment (known as C295morn) to the shire’s planning scheme must be approved first to undertake the project. This means costs for landowners who haven’t paid their contribution could also go up. Landowner contributions are calculated based on linear metre of lot frontage and indexed according to the consumer price index on a quarterly basis to account for inflation.
The amendment was discussed at the council’s 20 May meeting in which Councillor David Gill questioned how the council got “into this situation” with a “probable cost blowout” which he guessed to be between $1m and $2m. He said it was money that could have otherwise been spent on vital capital works projects in the community.
Gill won the support of councillors in calling for the shire to conduct a formal investigation into the cost blowout, which had created a “large financial risk to council and ratepayers”. “We might think that this is done and bad luck, but it shouldn’t happen again,” Gill said. “I’m not trying to blame people, by the way. I just want to know that the process that happened is resolved so that we don’t do it again.”
The amendment received five objections after it was publicly exhibited from last October to December.
Among the concerns from three landowners was that sealing the roads would increase traffic and noise, as well as safety issues including school children using the local bus stop. The submissions also believed the revised DCP did not “acknowledge existing service connections for properties proposed to be added, and the supporting vegetation removal plan shows a tree that has already been removed”. Some said they were not consulted on the revised DCP, and that it was “inconsistent” with the Crib Point Township Plan Refresh (2021) regarding environmental protection and township character.
The Department of Energy, Environment and Climate Action also made an objection due to full biodiversity impacts of native vegetation removal “and that further opportunities likely exist to avoid and minimise impacts on native vegetation”.
Because the issues from all seven submissions remain unresolved, councillors decided to refer them to a state government-appointed independent panel, which is expected to take place in the week beginning 11 August.
The panel will prepare a report with recommendations for council, which councillors would consider before deciding whether to adopt the amendment. If council adopts the amendment, it must submit the amendment to Planning Minister Sonya Kilkenny for approval and gazettal.
Councillors also endorsed for the council to prepare a planning permit application to remove native and non-native vegetation required to accommodate the infrastructure works.
First published in the Mornington News – 3 June 2023
