Blow-out leaves $85,000 hole

By Paul Dunlop
A BLOW-OUT on the cost of newly sealed streets in Cockatoo has left an $85,000 hole in Cardinia Shire Council’s finances.
Construction of roads and drainage in Devon Avenue, Belgrave Avenue and Cockatoo Avenue were originally forecast to cost $505,716 but the end result was $591,450.
The blow-out was revealed last week to the dismay of councillors at what was the final meeting of their current three-year term.
The council agreed to foot the bill, but was concerned that such a shortfall could have happened.
Councillor Helen Ward said a blow-out of any order, let alone $85,000, was unacceptable.
“Council is picking up the tab but that (money) has to come from somewhere else,” she said.
“It’s unacceptable, but what is equally unacceptable is that the community should be asked to put up its hand or write a cheque.”
The extra costs were said to be the result of unexpected poor sub-grade road-making materials that required special treatment, as well as additional sections of asphalt at roundabouts, slow points and intersections.
Cardinia general manager of assets and development services Michael Ellis said the council also had to conduct additional design work.
The works in Cockatoo were carried out as part of a special charge scheme involving council and residents living in the three streets.
On a brighter note, the council was told at its meeting that a similar project in Emerald was completed considerably under budget.
A road and drainage construction scheme in Majestic Drive, Boundary Road and Bellbird Crescent cost $570,504 compared with an original estimate of $655,711.
Mr Ellis said the savings came through coordinating the two schemes to achieve economies of scale.
The move will save council at least $30,000 but, as Cr Doug Hamilton pointed out, the benefits will be muted by the Cockatoo situation.
Special charge schemes generally see property owners put in 70 per cent of the estimated project cost with council contributing the rest.