Review of LGAQ-TMR cost sharing agreement

Review of LGAQ-TMR cost sharing agreement

Review of LGAQ-TMR cost sharing agreement
Date: 29-Jun-2017

In 2000, the LGAQ and the then Department of Main Roads entered into a protocol agreement for ‘cost sharing based on responsibilities within State-controlled roads’. The LGAQ and Department of Transport and Main Roads (TMR) agreed in mid-2015 that a review of the protocol was warranted.

A Steering Committee and Technical Working Group was established to guide the project. With oversight from the Steering Committee, the project has progressed the development of a Memorandum of Understanding (MOU) that reflects more contemporary arrangements. The draft MOU places emphasis on relevant parties – i.e. a council and its relevant TMR District – collaborating to identify, agree and document cost-sharing arrangements that are relevant to local circumstances.  Of particular interest to water and sewerage services are proposed changes to the way main replacement is funded:

2000 version:

  • States the LG should contribute to the costs of the main relocation when the main is nearing its serviceable life.

Draft 2016:

  • Has TMR responsible for the full costs of the main replacement irrespective of age;
  • Has LG co‐funding the works if:
    • The main has been laid in the wrong alignment;
    • If the LG requires an upgrade of the main capacity;
    • There are future plans by the LG to replace the main.

More information is in a LGAQ circular sent out recently. To obtain a copy of the draft MOU and Modules and to provide feedback, please email Morgyn Goodale at LGAQ – morgyn_goodale@lgaq.asn.au

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