Archived decisions

Contact: Dave Veal, tel 01329 824366 email: [email protected]

1. Summary

1.1 As a result of the recently commissioned Consultants (Pharos) Report, which considered the efficiencies of the Highways and Transport Services, one of the outcomes was that the County Council should consider increasing Section 38 fees to bring charging in line with other local authorities. It is proposed that the level of fees be increased for all new works covered by Section 38 Agreements which will ensure that all County Council costs will be adequately covered and new estate roads are designed and constructed safely.

2. Recommendations

2.1 That approval be given to design check/inspection fees associated with the construction of new estate roads covered by Agreements under Section 38 of the Highways Act 1980 being increased from 7.5% to 10% with effect from 1 June 2008.

2.2 That the level of fees be reviewed after 12 months.

2.3 That delegated authority be given to the Director of Environment to agree any exceptions to fee level in special circumstances.

3. Background

3.1 Following the review of district agency functions in 2001, the responsibility for the supervision/inspection of the construction of new estate roads covered by Section 38 Agreements reverted to the County Council. At this time, the level of inspection fees was set at 7.5%.

3.2 This fee covers the carrying out of detailed design checks of new roads being offered for adoption together with the inspection of the works during construction by developers and is based on works costs. It also includes the necessary negotiations with developers in respect to agreement and adoption procedures. Legal fees are charged separately.

3.3 Since 2001 the time required to carry out the various aspects of Section 38 Agreements has significantly increased. National guidance over a number of years encourages developers to pursue innovative designs in respect of estate roads layouts, the use of non-conventional materials and use of sustainable drainage systems. The latest guidance is Manual for Streets which is also promoting a quality team approach to design. As a result there are a greater number of more complex sites which require a higher level of input into design checks and on-site supervision.

3.4 The extra time spent on both design checks and on-site supervision is essential to ensure that new roads are built to County Council standards and also do not result in a higher level of maintenance being required by the Highway Authority.

3.5 The County Council's level of fees is less than those charged by some other authorities and this has been confirmed through the South East Authorities Service Improvement Group that the majority of neighbouring authorities are now charging a higher figure. Details of fees charged by adjoining authorities are detailed below:

Buckinghamshire 12%

Dorset 5%

East Sussex 9%

Isle of Wight 7.5%

Kent 8%

Surrey 12%

West Sussex 9%

3.6 An analysis of income collected from Section 38 fees against outturn costs for work over recent years is shown below:

INCOME COSTS

2004/05 £732,043 £740,528

2005/06 £912,763 £794,049

2006/07 £377,555 £672,055

2007/08 £571,000* £602,000*

(* These figures are for the first 10 months of the current financial year.)

It can be seen that in 2006/07 financial year there was a considerable deficit and for the financial year 2007/08 there is also predicted to be a deficit. This reinforces the view that fees should be increased to ensure that the full burden of costs falling on the County Council is recovered.

4. Impact Assessments

4.1 Assessment of the Race Relations (Amendment) Act has been considered in the development of this proposal. No adverse impact has been identified in terms of race, creed or gender.

5. Conclusion

5.1 As a result of additional work required for design checks and on-site supervision of works covered by Section 38 agreements it is proposed that the level of inspection fees increase to 10%.

1612Rpt/DV