3.5 SUPP Kardinya South Project New Commercial Letter Survey Facts Sheet 11.9.2020.pdf

11 September 2020

«Owner»
«Mailing_Address1»
Kardinya South
«Mailing_Address2»
Underground Power Project
Property Owner Survey
Property Address:
McWhae
«PROP_Addr1», «PROP_Addr2»

Thank you to all the residents who contributed to previous surveys regarding the proposed
Kardinya South State Underground Power Program Project.  We are sorry for the delay in
responding  to  you  with  the  results  of  the  second  survey  as  we  hav
- Keith
e  been  working  with
Western Power on the implications for the project.
The purpose of this letter is to:
1.
Advise  the  residents  on  the  results  and  implications  of  the  second  survey  on  the
Kardinya South Underground Power Project
2.
Inform residents of the revised proposal from Western Power
3.
Complete a third and final survey to residents
- 20200040
on the acceptability of holding the price
from 2016 (average cost of $4,424 per property)

The  second  survey  results  indicated  that  residents  did  not  support  the  project  at  a  higher
average cost, with 53% (378) response rate, 39% (146) of property owners supporting the
project and 61% (232) of property owners not suppo
Melville  rting the project.
Due to the survey results the project
of  was at risk of being cancelled.  This would result in the
overhead power lines remaining in place and significantly reduce the likelihood and viability
of  this  area  being  considered  for  underground  power  in  the  future.    Further  to  this,  a
significant amount of overhead network renewal works wil  need to be undertaken.
- City
In  recognition  of  this  cancellation  scenario  and  Kardinya  South  not  having  the  option  of
underground  power  in  the  future,  Western  Power  reviewed  project  costing  and  examined
other  opportunities  to  reduce  costs  to  the  project  in  order  to  bring  them  in  line  with  the
average annual costs per property supported in the September 2016 survey.
In  response  to  the  State  Government’s  commitment  to  provide  funding  toward  stimulus
Release
projects that could be implemented in the short term to provide jobs, support the construction
industry and boost the economy, Western Power has agreed to provide additional funding for
the Kardinya South Underground Power Project to enable the project to be constructed at the
FOI
same  average  cost  as  the  original  survey  in  2016  of  $4,424  per  property  which  received
majority support.
The enclosed project facts sheet provides background information and a breakdown of the
estimated charges for different houses and connection types.

Please  complete  this  third  and  final  survey  by  returning  the  survey  sheet  and  reply  paid
envelope enclosed by Friday, 2 October 2020.

If the final survey results contain more than 50% of respondents agreeing, the project  wil
start during this financial year 2020-2021.  Properties wil  not be charged until the following
financial year.  It wil  be included as an item in your 2021-2022 rates notice and a relaxed
payment plan can be arranged for those with financial constraints.

We look forward to receiving your completed survey by 2 October 2020 and wil  advise you
of the outcome as soon as possible.

If you have any queries on this matter please contact the City of Melvil e on 1300 635 845 |
9364 0666 or email melinfo@melvil e.wa.gov.au.

Yours sincerely
McWhae

Mick McCarthy
- Keith
Director Technical Services

- 20200040
Melville
of
- City
Release
FOI

Kardinya South Underground Power Project
Property Owner Third and Final Survey

Please tick the box indicating your choice;

I Do Support
The proposed Kardinya South Underground Power Project

I Do Not Support
McWhae
The proposed Kardinya South Underground Power Project

- Keith
Property Owner:  «Owner»
Property Address:  «PROP_Addr1», «PROP_Addr2»
- 20200040
Melville
of
- City
Release
FOI

Kardinya South Underground Power Project – Facts Sheet

What is Underground Power?
Underground power involves removing existing overhead power lines and poles and taking
them underground.  Some of the benefits are:

Improved security and reliability of your power supply

Improved and more efficient street lighting

Safer environment

Safer roads

Improved street view

Improved property values

McWhae
Western Power installs the new underground cabling and  streetlights along street verges,
connecting each home to the new system.  Then, existing lines and poles are removed and
recycled if possible.

- Keith
Background of Kardinya South Underground Power Project
First Survey (September 2016)
In  September  2016  the  State  Government,  through  the  Public  Utilities  Office,  invited  all
affected residents in Kardinya South to take part in a survey to determine the level of support
from property owners for underground power to be installed in the area.
- 20200040
The survey September 2016 survey results indicated that 59.5% of respondents supported
the project, which enabled the project to progress into the detailed design phase.
In the first survey the cost to the property owner was quoted to be an average total cost of
Melville
$4,424 per property, which at the time was the best estimate based on available information.
Fol owing Western Power’s completio
of  n of the detailed design work, the cost of the project
had increased by 24.5% to an average of $5,508 total cost per property.
For  this  reason,  the  City  of  Melvil e  in  conjunction  with  the  State  Underground  Power
Program  Steering  Comm
- City
ittee  consisting  of representatives from, Western  Power, WALGA
and  the  State  Government  commenced  a  second  survey  in  November  2019,  which
concluded on 18 December 2019.
Second Survey (December 2019)
The  second  survey  resu
Release   lts indicated that residents did not support the project, with 53%
(378) response rate, 39% (146) of property owners supporting the project and 61% (232) of
property owners not supporting the project.
FOI
Due to the survey results the project was at risk of being cancelled.  This would result in the
overhead power lines remaining in place and reduce the likelihood and viability of this area
being considered for underground power in the future.  Further to this, a significant amount
of overhead network renewal works wil  need to be undertaken in the near future.

Current Situation

Third and Final Survey
In  response  to  the  State  Government’s  commitment  to  provide  funding  toward  stimulus
projects that could be implemented in the short term to provide jobs, support the construction
industry and boost the economy, Western Power has agreed to provide additional funding
for the Kardinya South Underground Power Project to enable the project to be constructed at
the same average cost as the original survey in 2016 of $4,424 per property which received
majority support.

Due  to  timeframes  and  the  revised  average  cost  we  wil   be  surveying  Kardinya  South
residents for the third and final time.

If the result is more than 50% of respondents supporting underground power the project wil
go ahead.
McWhae

Estimated Charges ($4,424 average cost)
In establishing the estimated charges, the City has considered the following factors:
- Keith

Property density

kVA requirements as advised by Western Power

The City’s existing differential rating methodology for commercial properties

Any existing infrastructure in-situ
The charges to be levied against a property comprise of two components. These are:

Contribution  to  works  external  to  the  property  which  includes  the  new  underground
- 20200040
cabling,  removal  of  the  existing  overhead  powerlines,  installation  of  the  new  street
lighting  system  and  installation  of  the  ground  mounted  transformer  and  switchgear
cabinets.  This is identified as the Network Service Charge.

Contribution to the installation of a green dome and the underground cable from the
green  dome  to  the  meter  box  where  requi
Melville  red.  This is identified as the Network
Connection Fee.
of
The final charges to be levied for each individual property are dependant on the number of
dwel ings on the lot and the type of connection required at the time the project commences.
The estimated underground power charges applicable to different property requirements are
- City
shown below:

Network Service Charge
Properties included in the Kardinya South Underground Power Project wil  each be charged
an estimated network service charge per dwelling as follows:
Release
Residential properties up to 2 dwellings

$4,397
Residential properties 3 - 10 dwellings

$3,396
FOI
Residential properties 11+ dwellings

$2,879
Commercial properties with an estimated 15kVA rating
$10,801
Commercial properties with an estimated 35kVA rating
$21,365

Network Connection Fee
Properties included in the Kardinya South Underground Power Scheme which do not already
have a green dome and an underground connection from their meter box to that dome wil
each be charged a full or modified network connection charge per dwelling (as required) as
follows:
Ful  Network Connection
Up to 2 dwellings
$1,048
3 - 10 dwellings
$838
11+ dwellings
$681

Modified Network Connection
Up to 2 dwellings
$838
3 - 10 dwellings
$681
McWhae

Commercial Connection Fee

Standard Installation
$1,185
- Keith

When and How would I be Charged?
If the final survey results show 50% or more of residents support the project it wil  commence
during  this  financial  year  2020-2021.    However  properties  wil   not  be  charged  until  the
following year and included as an item in your 2021-2022 rates notice.

Please  note  that  pensioners  and  seniors  who  are  eligible  for  a  State Government funded
- 20200040
Pensioner  Rebate  may  receive  a  rebate  on  the  above  charges  or  defer  payment  in
accordance with the provisions of the State Government’s Rates and Charges (Rebates and
Deferments)  Act  1992.    The  City  wil   also  work  closely  with  residents  to  help  develop
payment plans that match individual financial circumstances.

Melville
Payment can be made in instalments over an extended period of time, incurring a minimal
of
interest  charge  (currently  2%)  which  is  determined  each  year  by  Council.    If  you  are
interested  in  an  extended  payment  plan  please  contact  the  City’s  Rates  Department  on
1300  635  845  |  9364  0666  or  melinfo@melvil e.wa.gov.au  when  you  receive  your
2021-2022 rates notice. - City
Release
FOI