Attachments: 1. Supporting Attachment 2. Review of Overhead Protection and Hoarding Permits

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Management report to Council Agenda item 6.3 Review of fees for Overhead Protection and Hoarding Permits Council Presenter: Angela Meinke, Manager Planning and Building 26 May 2015

Purpose and background

1. The purpose of this report is to seek Council’s endorsement of the recommendations in the attached Review of Overhead Protection and Hoarding permit fees.

2. The fees were last reviewed in 2009.

Key issues

3. With ongoing development activity in the City of Melbourne there has been a marked increase in the size, duration and level of site infrastructure in the form of gantries and hoardings being placed in the public realm, often to the significant detriment to the amenity of the area.

4. A review of fees for overhead protection and hoardings has confirmed that the City of Melbourne’s schedule of fees is not in line with industry standards and does not reflect the cost of issuing these permits. Attachment 2 contains the findings and recommendations of the review.

5. Hoardings and overhead protection are to ensure the safety of the public utilising the surrounding area. The proposed amendment to the current fees and administrative practices listed below are aimed at minimising the impact on amenity, encouraging the reduced length of time public space is occupied and to ensure that Council is recuperating the costs associated with displacement of land. In all considerations, site and public safety remain paramount.

6. It is anticipated, based on current permits issued, that Council has the potential to increase revenue by approximately $830,000 per year whilst at the same time improving control and governance measures over the erection, use and prompt removal of gantries and hoarding structures in the municipality. The behaviour of builders in response cannot be fully anticipated, as the increased fees are a deterrent for longer occupation which may accordingly result in a reduction of income. That is, if the deterrent works, revenue will be reduced.

Recommendation from management

7. That Council endorse the Review of fees for Overhead Protection and Hoarding Permits attached to this report and incorporate the revised fees into the 2015-16 Budget to be considered for adoption by Council.

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Supporting Attachment

Legal

1. The charging of fees in relation to Hoardings and Gantries is pursuant to the Council’s Activities Local Law 2009.

Finance

2. It is anticipated, based on current level of permits issued, that Council would have the potential to increase revenue by approximately $830,000 per year.

Conflict of interest

3. No member of Council staff, or other person engaged under a contract, involved in advising on or preparing this report has declared a direct or indirect interest in relation to the matter of the report.

Stakeholder consultation

4. No external consultation has been undertaken

Relation to Council policy

5. The recommendations within this report align with priorities and goals as identified in the Council Plan 2013-17 (Goal 1 – A City for People).

6. The report is in relation to the Activities Local Laws 2009, Code of Practice for Building and Construction and the Road Encroachment Operational Guidelines.

Environmental sustainability

7. There is no significant impact on environmental sustainability.

Attachment 1 Agenda item 6.3

Council 26 May 2015

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Review of fees for Overhead Protection and Hoarding Permits

Date: 27 April 2015

Attachment 2Agenda item 6.3

Council 26 May 2015

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Scope

This paper has been prepared in consultation with Site Services, Legal Services, Finance and Property Services for the purpose of evaluating the Overhead Protection and Hoarding permit fees.

Definitions

‘Authorised Officer’ Refers to a member of Council staff or an agent of Council, authorised either generally or in a particular case for the purpose of local laws or building regulations.

‘Barrier’ Refers to a fence, hoarding, rail, traffic cone, pedestrian control sign or barricade erected for the exclusion of the public and/or the control of noise, dust or debris.

‘Building works’ Refers to works, activities, events and practices for or in connection with construction, alteration, renovation, demolition or removal of a building and associated works.

‘Construction Zone’ Refers to the platform which is attached to a scaffold or perimeter of a building to contain unintentional falling debris, as well as a contained area for deliveries and lifting apparatus.

‘Construction Site’ Refers to a site where building work is proposed to be carried out, or is being carried out.

‘Crane’ Refers to any lifting or hoisting device including tower cranes, mobile cranes, travel towers, cherry pickers or the like.

‘Council Land’ Refers to roads and land vested in Council or owned by Council or under the care and management of Council that are not set out on Crown Land.

‘Crown Land’ Land not alienated (transferred as title) by the Crown. Section 138A of the Land Act 1958 was introduced in 1990 and concerns Crown Land in stratum. It is administered by the Department of Sustainability and Environment (DSE). Section 138A provides for the licensing of air rights and below ground level rights over Crown Land, including roads on Crown land.

‘Engineer’ Means a registered building practitioner in the category of Civil Engineer

‘Gantry’ A gantry is the predominant temporary structure used for overhead protection of pedestrians. A hoarding or perimeter scaffolding is normally used in conjunction with a gantry for side protection, and on the carriageway side. Barricades, kent-ledges and skid boards provide protection from impact from vehicles or hoisting operations.

‘Hoarding’ A hoarding refers to a high temporary fence or structure enclosing a demolition or a building site during building works to restrict access and provide protection to the public.

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‘Kent Ledge’ Means a counterweight designed to provide stability to a temporary structure.

‘Kerb’ Means the raised rigid border at the end of a carriageway or footpath.

‘Perimeter Scaffold’ Means a temporary structure specifically erected to support access platforms or working platforms and to provide overhead and side protection around a building.

‘Road’ Has the same meaning as in the Local Government Act and includes a Street as defined in the Building Regulations 1994.

‘Temporary Structure’ Means a removable structure that has been erected for a limited period of time only at an authorised location to provide protection for the public and enable the safe carrying out of building works.

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Contents1  Purpose ........................................................................................................................................ 5 

2  Background .................................................................................................................................. 5 

2.1  What is Overhead Protection or Hoarding? .......................................................................... 5 

2.2  Council Requirements ........................................................................................................... 6 

2.3  When permits are required ................................................................................................... 7 

2.4  Current Schedule of Fees at the City of Melbourne .............................................................. 7 

2.5  Current Industry Practice ...................................................................................................... 7 

3  Key Issues.................................................................................................................................... 8 

3.1  Impact of hoardings, gantries and site sheds on amenity ..................................................... 8 

4  Recommendations ....................................................................................................................... 9 

4.1  Recommendation 1 – Space Occupation Fee ...................................................................... 9 

4.2  Recommendation 2 – Application Fees ................................................................................ 9 

4.3  Recommendation 3 – Hoarding Application Fees ................................................................. 9 

4.4  Recommendation 4 – Introduction of mandatory inspection fees ......................................... 9 

4.5  Recommendation 5 – Consideration of alternatives ........................................................... 10 

4.6  Recommendation 6 – Additional permit condition ............................................................... 10 

4.7  Recommendation 7 – Additional permit condition ............................................................... 10 

4.8  Recommendation 8 – Hoarding appearance ...................................................................... 10 

5  Budget Impact ............................................................................................................................ 10 

Appendix A – Fee Comparison ......................................................................................................... 12 

Appendix B – Proposed Fees 2015/2016 .......................................................................................... 13 

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1 Purpose

This report:

Provides a snapshot of the current state of Hoarding and Overhead Protection Permits with comparable cities.

Proposes options for the City of Melbourne schedule of fees pertaining to Hoarding and Overhead Protection.

2 Background

2.1 What is Overhead Protection or Hoarding?

An Overhead Protection or Hoarding refers to a hoarding, gantry or coverway that serves to protect the public from noise, debris, and / or dust relating to a construction zone. The type and scale of these structures is depended on the construction zone and the level of public protection determined necessary during the permit evaluation process.

Example of a Gantry / Coverway

Example of Hoardings

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2.2 Council Requirements

2.2.1 Building Regulation 2006 Requirements

Under the Building Regulations 2006, Regulation 604 Protection of the Public stipulates that;

(1) Precautions must be taken before and during building work to protect the safety of the public if required by the relevant building surveyor.

(2) The precautions must be approved by the relevant building surveyor before building work is commenced.

(3) Before and during the carrying out of building work all excavations must be fenced or otherwise guarded against being a danger to life or property.

(4) The report and consent of the relevant council must be obtained to an application for a building permit relating to the erection of precautions over the street alignment unless a local law requires the taking of precautions and the precautions comply with the local law.

Under Building Regulations it is the relevant building surveyor who is responsible to decide when precautions are required through a construction project, seek details of precautions from the designer / builder, approve suitability of precautions, and give details of any precautions projecting the street alignment to Council for consent and report before issuing any building permits.

2.2.2 Activities Local Laws requirements

Pursuant to Council’s local laws a person must not without first obtaining a permit from the

Council:

Erect a hoarding, gantry, scaffolding or site shed on or over a road

Install a temporary or permanent crossing

Occupy or fence off part of a road

Operate a crane, hoist, lift or tackle on or above a road

Make a hole in or adjacent to a road or public space

Carry out building works outside permitted hours

Part 12 and 13 of Activities Local Law 2009 stipulates that:

‘A person must not allow any vegetation, building or thing to protrude from premises so as to obstruct or interfere with the passage of pedestrians or vehicular traffic in or on a public place.’

‘The Council may grant a permit subject to such conditions as it thinks fit.’

Accordingly, Council can charge a fee for the occupation. It is considered appropriate that fees should be calculated based on actual costs incurred through the administration of the permits. Previously, a fee has been charged for the area occupied by hoardings, calculated on a m2 basis. An occupation fee has not previously been charged for gantries.

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2.2.3 Code of Good Practice for Building and Construction – Public Safety and Amenity

The City of Melbourne has compiled a Code of Practice for Building and Construction to ensure adequate levels of public safety and amenity are maintained whilst building activity occurs on site.

2.2.4 Road Encroachment Operational Guidelines

Road Encroachment Operational Guidelines outline that;

‘Council has the responsibility to ensure the health, safety and amenity of the public in public spaces. It is Council’s responsibility therefore, to preserve these spaces for present and future public use, and ensure that these amenities are not diminished by the installation of private improvements, encroachments or obstructions.’

2.3 When permits are required

Hoarding and Overhead Protective Measure permits are required in conjunction with construction works that protrude onto Council Land. These permits are evaluated and issued by the Site Services team at the City of Melbourne.

2.4 Current Schedule of Fees at the City of Melbourne

Hoardings

If a hoarding is located wholly within the property boundary, then a hoarding permit is not required.

If a hoarding is located on or overhangs Council land, then a permit is required. The current application fee is $126.00 and a space occupation rate of $4.00 m2/ week (includes GST) is currently charged with a minimum charge of $126 per week (Note that this will increase in the 2015/16 financial year to $4.10 m2/ week due to CPI increase). Conditions on any approval include requests to specify a wood panel hoarding with no advertising permitted without a necessary planning approval.

Gantry / Coverway / Site Sheds

A Gantry or Coverway application fee is $126.30 and a Space occupation fee of $4.00 m2/ week (includes GST) is charged only during the erection and disassembly of the gantry or coverway. There is no charge applied for the ongoing occupation of the space for the duration of the works. If additional features, such as site sheds/storage or scaffolding are incorporated into the gantry then a Space Occupation fee of $4.00 m2 per week is included into the space occupation cost.

2.5 Current Industry Practice

A review of fees charged by the Cities of Sydney, Brisbane and Perth was undertaken. A schedule of their fees can be found at Appendix A.

2.5.1 City of Sydney

City of Sydney, has recorded in their Schedule of Fees 2014-15, charge an application fee of $303 per application. The City of Sydney’s Guidelines for Hoardings and Scaffolding identify two types of Hoarding, Type A and B.

Type A is a fence (i.e. equivalent to the City of Melbourne Hoarding) located on a public road being generally of plywood attached to a timber or steel frame having a height of at least 2

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metres that encloses or separates a construction site or work area; with or without scaffolding; from the public road.

Type B is a steel framed structure (i.e. equivalent to the City of Melbourne Gantry) that provides overhead protection to the public road and that also encloses or separates the work area from the public road by a site fence incorporated in the temporary structure. The structure allows pedestrian or vehicular movement below the hoarding deck. This structure is equivalent to the City of Melbourne Gantry.

City of Sydney, as recorded in Schedule of Fees 2014-15, charges a rental fee (lineal m/week) according to Zones that isolate the General CBD from surrounding villages.

2.5.2 City of Brisbane

City of Brisbane charges a ‘Permit fee for hoarding and gantry’ and a ‘permit fee for other footway uses’ according to Zone 1 – 3. Fees are calculated similarly to the City of Melbourne by calculating the ‘square metre of space utilised’ and multiplying by the time ‘per month’. The fees range from $19.50 in Zone 1 to $3.60 in Zone 3.

2.5.3 City of Perth

City of Perth charge a non-refundable ‘Hoarding / Gantry/ Scaffolding Application fee’ of $90.00 (GST included), to be paid at lodgement with an additional space occupation fee of $1.00 per m 2 /month

A separate permit is required should the road/footpath/verge be obstructed during assembly/dismantling of the hoarding. A ‘Road and footpath obstruction permit’ application fee range from $80 for a standard fee, to $150 for permits that require a road closure.

3 Key Issues

3.1 Impact of hoardings, gantries and site sheds on amenity

3.1.1 Advertising on hoardings

City of Melbourne currently requests the use of 2.4m solid timber hoarding types. Occurrences of advertising without a planning permit exist and it is considered that they often negatively impact on the surrounding amenity. Enforcement action is taken against any signage without necessary approvals.

Under the Activities Local Law the penalty for failing to comply with the Local Law and the Code of Good Practice for Building and Construction is up to $2,000 and, in the case of continuing failure, up to $200 per day for each day after a conviction. The Activities Local Law also allows an authorised officer to issue a Notice of Infringement carrying a penalty of $1,000 and / or issue a Notice to Comply (directing a person to comply with the aforementioned code).

Occurrences of advertising without a planning permit continue to occur in the presence of the current enforceable action.

3.1.2 Inaccessible footpath

While the footpath remains generally accessible for foot traffic, gantries can remain in place for several years. Use of the footpath is often interrupted throughout this time due to construction requirements and any civil works in their proximity is affected.

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The Road Encroachment Guidelines seek to ensure that:

‘Council has the responsibility to ensure the health, safety and amenity of the public in public spaces. It is Council’s responsibility therefore, to preserve these spaces for present and future public use, and ensure that these amenities are not diminished by the installation of private improvements, encroachments or obstructions.’

3.1.3 Extended gantry placement

As there are no ongoing fees for gantries, there are many occurrences of gantries remaining longer than they are required for public protection. This extended placement impacts on the amenity of the area and impacts on adjoining and nearby businesses due to reduced visibility and surrounding area appearing as a construction zone.

3.1.4 Site Sheds

The City of Melbourne only allows the erection of site sheds or storage on gantries or coverways if an alternative commercial site is not available. The rental fee that is associated with this option is less than the commercial rate for office space rental or land rental in the nearby locality.

4 Recommendations

Hoardings and Overhead protection are to ensure the safety of the public utilising the surrounding area. The proposed amendment to the current fees and administrative practices listed below are aimed at minimising the impact on amenity, encouraging the reduced length of time public space is occupied and to ensure that the municipality is recuperating the costs associated with displacement of land. However, it is important that in all considerations, site and public safety remain paramount.

Fees

Having reviewed the actual cost to administer the issuing and inspection of permits the following changes to the existing fees are recommended.

4.1 Recommendation 1 – Space Occupation Fee

A space occupation fee be charged for the occupation of the ground and air space for the duration of a gantry placement, not just for erection and demolition.

4.2 Recommendation 2 – Application feesA variation of application fee for gantries will be initiated to ensure that the cost of evaluation of applications is covered.

4.3 Recommendation 3 – Hoarding application fees

At this stage it is recommended that hoarding application fees be maintained at current rate with CPI adjustment. This element requires further detailed analysis of the cost to council to consider these applications.

4.4 Recommendation 4 – Introduction of mandatory inspection fees

The inclusion of a mandatory inspection fee for the inspection post-erection of Hoardings and Overhead protections. This fee will reflect the cost of average salary and time it would take to inspect the structure.

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This inspection is restricted to monitoring the conditions outlined by the permit, and does not encompass the Building Surveyor function of determining the structural elements of the gantry.

Administration

In undertaking the fee review it became apparent that there was opportunity to improve the current administration of the permits issued for Hoardings and Gantries. The items below have been identified initially, with further work to be undertaken by the Planning and Building Branch – to be incorporated into the permit assessment and issuing procedures.

4.5 Recommendation 5 – Consideration of alternatives

In considering an application to place a site office / amenities atop a gantry, permit applicants will need to demonstrate that no alternative location for these can be found in close proximity to the construction site.

Where a gantry is to be used as the location for a site shed or storage, a fee rate that is proportionate to market value for commercial office space will be incorporated into the fees structure.

The fee that is recommended has been struck based on the standard rates per square metre for a 600 metre square lot (as of 1 January 2014) for the various areas of the CBD.

The application of a standard base rate of land for each area (refer Appendix B) within the central city area is recommended to be adopted and multiplied by an appropriate ground or airspace percentage. The percentages have been derived from an analysis of site rental evidence of land used for container storage. It is recommended that 10 per cent of the respective “rental” be charged for gantry level space and 20 per cent of the respective “rental” be applied, where the gantry area is utilised for storage or other construction purposes.

Annual review of the base rates would occur at the commencement of each financial year to take into consideration the land value movements across the central city area.

4.6 Recommendation 6 – Additional permit conditionConditional requirements for hoarding structures will be modified to include the application of ‘Chicken Wire’ fencing to deter the application of illegal advertising materials.

4.7 Recommendation 7 – Additional permit condition

Condition requiring removal of hoardings and gantries, at direction of City of Melbourne, unless the builder can demonstrate an ongoing need for infrastructure on Council land be included.

4.8 Recommendation 8 – Hoarding appearance

The appearance of hoardings and gantries can vary significantly between building sites, with some sites seeking approval of advertising signage and other types of appearance improvement whereas some sites make no or very little attempt. It is recommended that this matter be further investigated by officers of the Planning and Building Branch.

5 Budget Impact

It is anticipated, based on current permits issued, that Council has the potential to increase revenue by approximately $830,000 per year whilst at the same time improving control and governance measures over the erection, use and prompt removal of gantries and hoarding structures in the municipality. It is

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important to remember that we cannot anticipate the behaviour of builders should the rental rate be increased as is proposed, as the increased fees are likely to be a deterrent for longer occupation which may accordingly result in a reduction of income. That is, if the deterrent works, revenue will be reduced.

It is recommended that this proposal be run for the first year and reviewed in preparation for the following financial year.

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Appendix A – Fee Comparison

Hoarding Fee Comparison Current City of

Melbourne City of Sydney City of

Brisbane City of Perth Proposed

Fees

Application fees $126.30 $ 303.00 $130 $90 $126.30

Inspection Fees - $ 303.00 per inspection

- - $63.50 per hour (minimum of 2 hours)

Hoarding fee $4.00/m2 per week (includes GST) or part thereof (min. $126 per week)*

$9.47 per lineal m / week

$19.50 per square metre / month

$1.00 per square metre / month

$4.10/m2 per week (includes GST) or part thereof (min. $126 per week)*

Gantry Fee Comparison Current City of

Melbourne City of Sydney City of

Brisbane City of Perth Proposed

Fees

Application fees (Simple)

$123.00 $ 303.00 $130 $90 $123.00

Application fees (Complex)

$123.00 $ 303.00 $130 $90 $184.50 (50% increase)

Inspection Fees - $ 303.00 per inspection

- - $63.50 per hour (minimum of 3hrs)

Gantry - $13.25 per lineal m / week

$19.50 per square metre / month

$1.00 per square metre / month

Fee based on Zone 1 - 3

Gantry with Site Shed

$4.00/m2 per week (includes GST) or part thereof (min. $126 per week)

$13.25 per lineal m / week

- - Fee based on Commercial rental rates (refer appendix B)

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Appendix B – Proposed Fees 2015/2016

There are three proposed zones for the charging of fees. These are set out in Table 1 below. Table 1 then directs officers to the relevant fee table for the calculation of fees.

Table 1 – Zoning Zone Area Gantry Only (per m2 /

week) Gantry with Site Shed (per m2 / week)

1 Commercial (CBD) Refer to Table 2 and 3 Refer to Table 2 and 3 2 Commercial (not CBD) Refer Table 4 Refer Table 4 3 Residential (single occupancy) (not

CBD) Refer Table 4 Refer Table 4

Table 2 - Valuation Ground / Air Space Rental Matrix – Commercial CBD

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Table 3 – Commercial (CBD) Fee structure

Area* Gantry Only (per m2 / week) at 10% rate

Gantry with Site Shed (per m2 / week) a 20% rate

East $ 12.30 $ 24.60

North $ 11.90 $ 23.80

Retail $ 14.40 $ 28.80

Central $ 12.90 $ 25.80

Legal $ 11.90 $ 23.80

Collins $ 12.10 $ 31.50

South $ 11.50 $ 23.00

West $ 11.70 $ 23.40

West Melbourne $ 9.20 $ 18.40

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Table 4 – Commercial and Residential (single occupancy, not CBD) Fee structure

Gantry Only (per m2 / week) at 10% rate

Gantry with Site Shed (per m2 / week) a 20% rate

Carlton Mixed Use Zone $ 6.92 $ 13.84

North and West Melbourne Mixed Use Zone $ 6.74 $13.48

Kensington Mixed Use Zone $ 5.60 $ 11.20

West Parkville Mixed Use Zone $ 1.92 $ 3.84

Carlton Commercial $ 6.44 $12.88

Kensington Commercial (B1Z) $ 2.56 $5.12

Kensington Commercial (B3Z) $ 2.20 $4.40

North and West Melbourne Commercial $ 4.24 $8.48

Parkville Commercial $ 5.76 $11.52

South Yarra Commercial $ 8.84 $17.68

Carlton Residential development potential $ 6.92 $13.84

East Melbourne Residential development potential $ 7.54 $15.08

Kensington Residential development potential $ 3.98 $7.96

North and West Melbourne Residential development potential $ 6.74 $13.48

Parkville Residential development potential $ 7.94 $15.88

South Yarra Residential development potential $ 10.74 $21.48

West Parkville Residential development potential $ 3.98 $7.96

Carlton Residential single house site $ 5.64 $11.28

East Melbourne Residential single house site $ 7.22 $14.44

Kensington Residential single house site $ 2.64 $5.28

North and West Melbourne Residential single house site $ 3.94 $7.88

Parkville Residential single house site $ 6.38 $12.76

South Yarra Residential single house site $ 9.62 $19.24

West Parkville Residential single house site $ 2.78 $5.56

Docklands Docklands Zoning $ 2.88 $5.76

Southbank Capital City $ 11.54 $23.08

St Kilda Road Commercial 1 $ 9.62 $19.24

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