Local Road Construction (Full Or Partial E.G. Kerb and Channel)

Local Road Construction (Full Or Partial E.G. Kerb and Channel)

PURPOSE / This policy is a tool that will assist Council and residents to develop a built environment that meets the community’s needs for access, ecological protection, amenity and safety.
This policy operates in a legislative environment that recognizes there is a responsibility on those living on an unmade road or partly serviced roads to pay for its development at least once. Council’s role is to maintain it, after it has been built to appropriate standards. Similar principals can be applied to other infrastructure works.
SCOPE / The policy relates to infrastructure provision within the urban growth boundary within the Shire.
This policy, together with referenced documents, covers contributory schemes for:
  • local road construction (full or partial e.g. kerb and channel),
  • footpath construction,
  • drainage works, and
  • car park construction in commercial centres.

OUTCOMES / Working towards a Sustainable Peninsula this policy will enable Council to help the community to develop appropriate local access infrastructure to suit the community’s specific and foreseeable needs.
Some key outcomes of the adopted processes will be to minimize community conflict and to be open and transparent in a manner that is fair to all.
Development of this infrastructure will match land owner costs to function and need and help Council to manage its’ maintenance responsibilities.

policy objectives

  • To manage the contributory scheme process in an effective manner that is fair to all.
  • To ensure the solutions developed are cost effective and affordable.
  • To maximize support for schemes and manage any conflicts associated with these schemes.


/ A Contributory Scheme shall be in accordance with the Special Rate and Special Charge provisions of the Local Government Act, 1989 (Section 163).
CONSULTATION PROCEDURE / Community consultation shall be undertaken in accordance with the Peninsula Way values and be appropriate for the works being undertaken. Where a more detailed strategy or process exists this should be followed.
Consultation in accordance with the Statutory Procedure set out in Figures 1 of this policy must be followed as a minimum for all schemes. In most situations additional consultation should be undertaken prior to commencement of the Statutory Procedures.


/ The Statutory Procedures for a Contributory Scheme are set out in Section 163 of the Local Government Act 1989 and summarised in Figure 1 attached.
A.Apportionment of Costs
/ The Local Government Act 1989 does not provide details on how costs are to be apportioned. It only requires that a property must receive benefit from works before a cost can be levied. It is therefore up to Council to determine an appropriate method of apportionment keeping in mind that the underlying requirement is to be fair, reasonable and equitable.
To ensure the method is appropriate, the apportionment should generally be in line with previous determinations of the Victorian and Civil Administrative Tribunal.

COUNCIL Contribution

/ Council may contribute to the construction costs of Schemes:
  • local road construction - in accordance with attached Contributory Schemes Strategy for Road Construction in Urban Areas.
  • footpath construction – in accordance with Footpath Construction Strategy
  • drainage works – as determined
  • car park construction in commercial centres – as determined

TENDERING OF WORKS / Public tenders shall be called for the construction of the works.
Following acceptance of a tender by Council, the community is to be advised that works will be undertaken, including details of the approximate timing of works, contact details for the Contractor and Council’s Officer supervising the works.
NOTICE OF REQUIREMENT FOR PAYMENT / Following the decision of Council to proceed with the Scheme and its implementation through the Tender Process, a Notice of Requirement for Payment will be served on all contributors indicating all of the relevant details.
The notice shall clearly indicate that this request for payment is based on the estimated scheme total cost.
At the same time the property database should be updated so that all new Land Information Certificates show the potential for a further charge on the property after finalization.
PAYMENT / Council shall allow contributors to pay their contributory charges in quarterly installments including interest charged at Council’s adopted current rate.
Owners with a demonstrated genuine financial hardship are to be considered on a case by case basis in accordance with the Council’s Hardship Policy.
FINALISATION OF SCHEME AND CONTRIBUTOR COSTS / Schemes shall be finalized and reconciled within 3 months of Practical Completion of the scheme contract works.
A report to Council immediately upon scheme reconciliation shall include the following:
  • that the works are complete and the costs are finalized
  • that the final apportioned costs are presented for adoption by Council
  • where any variation has occurred between the original estimate and the final apportioned cost, the detail of such variation
  • Council shall bear all costs of the variation in excess of 5% of the total scheme estimated cost apportioned to the contributors.
In any case where the Special Rate or Charge is varied by any amount, notice is required to be given to all affected parties pursuant to Section 166 (2) of the Local Government Act 1989.


/ Council’s Sustainable Infrastructure Group is responsible for :-
  • ensuring the policy and procedures are implemented and maintained.
  • reporting to Council requests for the implementation of Contributory Schemes for infrastructure works.
  • determining the program of Contributory Schemes and ensuring the overall integrity and purpose of the policy is maintained.
  • supervising the operation of the policy and procedures

  • Local Government Act 1989.
  • Council’s Road Classifications – adopted 2 Aug 2004
  • Unmade Roads Construction Strategy – adopted 10 April 2006
  • Footpath Construction Strategy – adopted on 7 Nov 2007

ATTACHMENTS / Figure 1: Statutory Procedure
REVIEW / This policy shall take effect for five (5) years from the date of Council adoption.
Note: This Policy was adopted by Council on 31 January 2011.

Contributory Schemes Policy for Infrastructure Works.docPage1


Contributory Schemes Policy for Infrastructure Works.docPage1


Mornington Peninsula Shire Council -1-