Fee waiver wanted for dementia facility

Gosford Council has agreed to look into waiving fees for Development Applications (DAs) and Building Applications (BAs) for a non-profit organisation to build an aged-care facility in Railway St, Woy Woy.

A representative for the developer, Hammond Care Group, said that the facility would create 50 jobs on the Peninsula and that admission of patients would be based on need, not ability to pay.

The group representative said that Hammond has no State or Federal funding for their operation.

The developer had requested council waive water and sewer contributions for an approved dementia specific aged care facility on the site.

Cr Lynne Bockholt said: "We could waive fees on the BAs and DAs, but I don't think we can on the water."

Mayor Cr Robert Bell commented on the organisation having no government funding.

"What are we paying our GST for? Hammond should be seeking grants," Cr Bell said.

The council agenda stated: "Council's policy for collection of contributions for water and sewerage infrastructure, in accordance with the Water Management Act 2000, does not discriminate between ownership or the merits of the proposed use of developments.

"As previously stated in council's letter to Hammond Care Group dated March 29, 2000, concerning a similar facility at Terrigal Drive, contributions for headworks and augmentation are based on the assessed demand a development places on Council's water and sewerage system.

"In not charging the identified contributions, Council would set a precedent whereby future developers may claim a reduction in contributions due to either the intent of a development or the substantial costs associated with construction of a development.

"Further, if contributions from one customer group are waived as requested, other customers would then be required to fund this donation.

"This situation would result in various customers of council subsidising the development proposals of others.

"Cross subsidy by different customer groups is discouraged and the Independent Pricing and Regulatory Tribunal which reviews council's pricing of services also discourages cross subsidies between customer groups.

"Further, where donations are provided to assist groups these donations should occur as part of council's role in meeting broader community service obligations.

"The waiving of Section 307 contributions does not align with any current community service obligation of council nor would it appear to align with any future community service obligation of council.

"The same cross subsidy issues would apply in the case of General Fund providing a community service obligation in the form of a donation to assist with payment of the Section 307 contributions.

"It is noted that the applicant's previous request for waiving of section 307 contributions for the dementia specific aged care facility on Terrigal Drive, Erina, was rejected by Council at its meeting of May 2, 2000."

Jonathan Reichard, council agenda WS.005, June 24