2019-07-15 General Committee Agenda

GENERAL COMMITTEE MEETING REPORT                                                              15 JULY 2019

For instance, the Hilton Terrace Corridor Upgrade project has been delayed and incurred more
than $1,100,000 in expenses related to utility relocations. While Council has attempted to mitigate
the impacts, it is largely at the mercy of the utility companies with regards to costs and timing of
required works. Below is a summary of a recent enquiry to Energex related to the relocation of
100m of sub-surface electrical supply.

 Initial request date:     29 Jan 2019

 Design cost estimate:     $20,308.04
                           “Energex costs will be reconciled upon the completion of works and any
                           variance invoiced or refunded accordingly” i.e. there is no notice of variation
                           or cost escalation.

 Design time estimate:     14 weeks


 Design complete date:     20 Jun 2019 (20 weeks from request date)
                           A single drawing was produced.

 Construction cost         $163,625.39
 estimate:
                           For electrical related services (pulling and joining new cable only). Excludes
                           the civil construction costs related to new pits, trenching/drilling for conduits,
                           etc. estimated at circa $200,000.

 Mandated design:          7 conduits vs. existing 4 conduits, a 42% greater capacity than existing
                           infrastructure

There is anecdotal evidence that the billed costs for design and construction works undertaken by
utility owners are substantially inflated (by a factor of two) to make profits rather than cover actual
costs. In addition, utility providers reserve the right to modify quoted costs with little or no prior
notice, further adding pressure to project budget management.
The basis of this proposed motion to the LGAQ is that Local Government should be able to enter
into a cost sharing arrangement with utility providers, particularly when upgrades are mandated
during relocation costs. Similar cost sharing arrangements have been ratified with State
departments such as the Department of Transport and Main Roads.
Specifically, this proposed motion to the LGAQ conference seeks support to advocate to the
relevant State agency to achieve the objectives of the Act of achieving its social outcomes through
improved efficiency and effectiveness by improving their accountability.

Previous Council Consideration
Nil

Finance
There are no direct financial implications as a result of this report.

Risks & Opportunities
As outlined above, Council currently has limited ability to mitigate the impact of utility relocation
or installation costs related to its public infrastructure projects. The authority sits with the State
and Federal Governments while Council is treated as a “developer” for the purposes of utility
modifications. This situation impacts capital works budgets and ultimately the Council’s ability to
deliver civil infrastructure.




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