KI flooded roads – How much exactly did Council spend on addressing the issue ? QoNs Cr Liu 2014.01.22

Many roads on Kangaroo Island are still closed to trafic by Council following the rains of last winter, making life hard for residents. Addressing or not the problem, and how, is an engineering, budgetary and political matter. First, of course, for any genuine debate on the matter, the island rate-payers must be informed about what has been done, what cannot be done, what is planned to be done. — Webmaster

Submitted by councillor Liu, 2014.01.10:

Questions on Notice, by Councillor Ken Liu:

Att. Mr Boardman, Kangaroo Island CEO

I would like to ask the following ‘questions on notice’ at the January 2014 meeting, after reading the transcript of the transcript of Mayor Bates’ interview on ABC radio afternoon talkback program on 7 January 2014 KI_Flooded_roads_Bates_interview_014-01-07, a copy of which is attached for your perusal.

Question 1:

How much money from Council’s unsealed road maintenance budget has been spent on repairing the flooded roads in the areas of MacGillivray and Haines so far this financial year, excluding erection of warning signs and associated administrative costs?

Answer
As discussed in the Finance Committee Meeting, 29 November 2013, item 6.1- Council made provision to reduce the capital expenditure budget by $335,772 and transfer this sum to Unsealed Road Maintenance accounts to offset the storm damage remediation work carried out to that point. This represented the accumulated costs to date specifically created by the impact of the storm damage and subsequent flooding inMacGillivray/ Haines and for
damage associated with storm events in other areas of the Island.

Question 2:

What is the envisaged cost to repair these damaged roads once the ground has dried out, and does Council have sufficient funds allocated in this year’s budget to undertake these works?

Answer
Cost estimates have been received by Administration following the independent consultant engineer’s assessment of the damage created by storms and also by subsequent inundation – including an assessment made of the likely work (and cost) associated with restoring roads currently still flooded. The assessed cost (pending some clarification) is a significant
seven-figure sum and Council does not have the funds to undertake the works in this year’s budget.
Discussions with the State Government around the National Disaster Relief and Recovery Arrangements (NDDRA) compensation process are advanced and works are being undertaken at this time to package priority works for public tender such that the estimated costs may be validated (or otherwise) through the procurement process. Once this process is completed and Treasury are comfortable that costs are valid then Council will be able to
award the works and receive reimbursement for the works associated with full repair to 2013 standards. It should be noted that whilst no upgrade of infrastructure is permitted within the scope of the project (i.e. 5m existing road widened to 6m or similar); a full repair to current 2013 specification / standard for a particular infrastructure type is accounted for (i.e. a 5m C3 Class Road will be repaired to current specification for this roadtype).
Council will be required to contribute towards these costs and, whilst ostensibly the NDDRA contribution process is formulaic in its approach, recognition of the capacity to pay for small Councils is enshrined within the protocol. The confirmation of the actual contribution required will be part of the process. It is worth noting that our current allocation of circa $335,772 exceeds the notional threshold of contribution under the old scheme parameters.
It is also worth noting that not all works will be physically able to be completed in the balance of this year’s road construction season (now until end of April +/-). This is a product of volume of work v time available plus the fact that there are a number of roads yet to “surface”. It is likely therefore that full reinstatement works will be phased over two, possibly three years (depending on winter rains and the current inundation disappearing). We will therefore prioritise works to optimise access for the Community in the affected areas as well ensure that these roads are “future-proofed” to some degree by attention to drainage works in particular.
The phasing of these reinstatement works is likely to result in some additional R&M spend during winter on those roads that do not receive work in phase 1–this is recognised by the NDDRA process and should be recoverable in future reinstatement phases.

Question 3:

Will this additional road maintenance expenditure be taken into consideration during the current budget review process?

Answer
There should be no additional road maintenance expenditure in these areas going forward in this financial year (over and above the funds that would normally be allocated to the area in the remainder of this year). The funds committed to date have been replaced through deferral of capital budget items as advised at the Finance Committee Meeting (29 November 2013) and transfer of these funds to the unsealed road maintenance accounts. It is not
envisaged that further transfer will be required provided that the tender and award process is not unreasonably delayed over the next month.

Question 4:

Will the expenditure on non-urgent services and luxury items allocated in the budget, such as the remaining unspent ‘community infrastructure grants’ and the costs associated with changing house numbers in Kingscote be put on hold for the purpose of reallocating the necessary funds for repairing the roads?

Answer
It is not considered that any sum in the Council budget could be considered a “luxury” item.
In the case of the Community Capital Infrastructure Program, the value-add for Council funds obtained through leveraging Community / Council / third party funds and Community hands-on involvement is considerable and widely acknowledged by most.
Capital Expenditure items deferred at the November Finance Committee Meeting will be advanced for priority inclusion in the 2014-15 budget.
Council may chose to postpone expenditure on any planned item if that is their desire but at this stage it is envisaged that the priority works that will be undertaken will be fully reimbursable from Treasury through the NDDRA process.

Question 5:

Has Council given any consideration to long term solutions for the flooding problems in this area, rather than just waiting for the water to evaporate?  If so, what are these solutions?

Answer
This is being assessed at this time by Council in consultation with the Community and other on-Island Agencies. A range of options, principally drainage orientated, are being looked at.

Question 6:

Since this area is subject to inundation, has Council looked at a long term option of creating a series of wetlands or lagoons by realigning the flooded roads to address these problems?

Answer
As per above – if expert opinion is that these are viable, cost effective options then they will receive detailed consideration.

Question 7:

How will Council assist the residents and ratepayers of the some 160 affected properties in this area other than postponing the rate payments and relying on State Government’s help?

Answer
The appointment of the Local Disaster Recovery Coordinator in late December was in response to Community calls for a detailed impact assessment that will identify the direct and indirect costs of the disaster to each resident that participates. Principally any major expenditure that may be proposed to stop or limit the possibility of this area being so affected in future events will require a cost / benefit analysis conducted and it is vital to have
a detailed knowledge of the direct, relatively visible costs as well as the less visible (or even easily quantifiable indirect / ongoing / yet to realise future costs associated perhaps with death of vegetation, reduction in livestock carrying capacity, reduction in cropping capacity, inability to access home / school / tourism business etc. This, and other outreach, communication and coordination work will be conducted as a result of the allocation of funds
by the Premier thorough the State Recovery Department.
As previously reported, there are nodirect funding allocations available for affected residents / ratepayers. This position is unlikely to change in the future.
Council’s ability to directly assist residents and ratepayers is more limited and is currently the provision of a facility to post-pone rate payments / enter a payment plan and crediting residents for the portion of the annual waste collection charge allocated for the first six months whilst services were significantly disrupted. This is in addition to the significant allocation of works resources and funds to re-establishing and maintaining basic access
where this has been possible.
The outcome of the impact assessments may lead to Council / State considering other options if this is appropriate.

Question 8:

When will a formal report on the issues raised in the above questions be brought to the full Council for proper consideration?

Answer
Until such time as the NDDRA process is completed–and we will be the first Council in South Australia to go through this new process–it is difficult to report on this element in any finite sense. Any decision requiring a resolution of Council will be brought to Council with all supporting information as is current practice. Decisions made to date have been operational in the most part and therefore have not required decision of Council. The unbudgeted for,
emergency works conducted in the first six months of this year were done with full knowledge of Council and the decision to defer capital works to replace these funds in the unsealed road maintenance accounts was made by Committee of Council and endorsed by full Council by accepting the minutes of the Finance Committee Meeting at the December 2013 Meeting of Council. To this end we have formally reported to Council as much as is necessary for the proper conduction of business.
With the appointment of the Local Disaster Recovery Coordinator we will have a raft of activities underway and we will provide a report to Council on these activities in February and March Council Agendas. Once infrastructure reinstatement planning and funding is confirmed then this too will be reported to Council.

Cr Ken Liu
Kangaroo Island Council
P O Box 80, KINGSCOTE  SA  5223
Ph: (08) 8553 2823   Mobile: 0428 322 005
Email: ken.liu@bigpond.com

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