Council Agenda - Kangaroo Island Council - SA.Gov.au

The current costs for this scheme and location are as follows:
LGA CWMS Committee Option
Subsidy $3,003,282
Council
Contribution
$746,718
Total Capital Cost $3,950,000
This is therefore the default position of the LGA CWMS Committee for funding contribution –
a subsidy of circa $3.0M. This is not anticipated to change unless the costs of construction
of the scheme change either up / down during the process of tender and physical
construction. It should be noted that any capital construction cost increase of this approved
scheme would be absorbed by the subsidy as the final calculation is done at practical
completion of the construction phase.
It is worth noting at this point that it would be beyond Council’s / Community’s financial
capacity to consider funding, as part of the initial scheme above, any extension to the actual
collection network over and above the area highlighted as A in the plan above. These
areas are delineated as areas x, y & z in the plan above (noting z actually refers to the area
up the Hog Bay Road to the Cemetery area).
However, in assessment of the identified issues of this scheme two other options for the
location of the WWTP / Lagoon have been identified and assessed from a cost / practicality
perspective. Both options would incur additional cost to Council over and above the scheme
costs shown in “1” above due to additional costs of land acquisition and also capital cost of
construction in terms of civil works etc.
The first alternate option involves the relocation of the WWTP/Lagoon to the south of the
Golf Course. This would then sit on land that is zoned commercial and residential currently
and the land area required to be purchased for physical infrastructure and compensated
(through the Land Management Agreement process) for buffer zone area is deemed to be
cost prohibitive. It still also has a visual amenity issue and reduces the size of the
Commercial zoned land block (the only vacant zoned block of this type in Penneshaw
township boundaries) to an area that effectively nullifies any commercial possibilities.
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Kangaroo Island Council – 10 July 2013 Agenda 18