MID-WESTERN REGIONAL COUNCIL ORDINARY MEETING - 16 SEPTEMBER 2020 306 REPORT 10.4 10.4 Road Reclassification and Transfer REPORT BY THE DIRECTOR OPERATIONS TO 16 SEPTEMBER 2020 ORDINARY MEETING GOV400087, ROA100080 Recommendation That Council: 1. receive the report by the Director Operations on the Road Reclassification and Transfer; 2. make a submission to the independent Panel regarding the Road Reclassification Review and Transfer nominating; 2.1 Bylong Valley Way be reclassified from a Regional Road to a State Road; 2.2 No additional Regional Roads be transferred to State management; 2.3 Cudgegong Road be reclassified from a Local Road to a Regional Road; and 3. consider a further report in the future following feedback from the Independent Panel. Executive summary The State Government is currently undertaking a review of road classifications and also investigating the transfer of Regional Roads to State Government management. An independent panel has been engaged to undertake the review, however funding implications are not part of the review process. This makes it very difficult for Councils to make decisions regarding transfer or reclassification of roads as the financial impacts are unknown. It is recommended Council make a submission nominating Bylong Valley Way be considered for reclassification from a Regional Road to a State Road and Cudgegong Road be considered for reclassification from a Local Road to a Regional Road. It is proposed no other Regional Roads be transferred from Council to State Government management. Disclosure of Interest NIL Detailed report In February 2019 the Deputy Premier announced the initiation of a Road Classification Review and the transfer of up to 15,000 km of Council owned and managed roads to State management. An Independent Panel, chaired by Ms Wendy Machin has been established to make recommendations for consideration by NSW Government. The Road Classification Review has been initiated because: • An issue has been identified in some council areas with the cost of maintaining regional roads or with the standard of maintenance of some regional roads MID-WESTERN REGIONAL COUNCIL ORDINARY MEETING - 16 SEPTEMBER 2020 REPORT 10.4 307 • A review of existing road classification should occur on a regular basis to ensure the road network supports road user needs and • To make adjustments to individual road classifications to align with State and national frameworks The current review by the State Government has two elements: • Road Classification Review and • Regional Road Transfers Council is being asked to submit nominations for reclassification or transfer by 25 September 2020. Current Regional and State Roads Mid-Western Regional Council is responsible for 330km of Regional Roads as shown below. Road Number Road Name / Description Length Km MR 208 Wollar Rd / Bylong Valley Way (Sandy Hollow to Mudgee) 94.51 MR 214 Ulan Rd (Cassillis to Mudgee) 53.16 MR 215 Bylong Valley Way (Ilford to Bylong) 78.35 MR 216 Hill End Rd (Sofala to Mudgee via Hill End) 61.82 MR 598 Cope Rd (Guntawang to Ulan) 32.09 RR 7512 Gollan Rd (Ballimore to Goolma) 10.16 TOTAL 330.10 Existing State Roads within the Local Government Area include: • Castlereagh Hwy • Guntawang Rd • Goolma Rd and • Ilford – Sofala Rd Roads for Transfer It is not proposed to transfer any Regional Roads to State Government management as Council has the local knowledge, skills and resources to manage the Regional Road network. Roads for Reclassification. Several roads have been considered for reclassification. Staff have held discussions with neighbouring Councils including Warrumbungles (Tucklan Road), Muswellbrook (Bylong Valley Way), Dubbo (Gollan Rd) and Upper Hunter (Ulan Rd). However no neighbouring Councils have taken a report to the elected Council at this stage. Regional to State - It is proposed to nominate Bylong Valley Way to be reclassified as a State Road. It links Muswellbrook and Scone to the Bathurst region and locations south. It also provides access to Lithgow and the Blue Mountains region. Muswellbrook staff strongly support this proposal. MID-WESTERN REGIONAL COUNCIL ORDINARY MEETING - 16 SEPTEMBER 2020 308 REPORT 10.4 There will be a likely decrease in our current Block Grant funding of 30% representing approximately 100 km of our current 330 km of regional road network, but it is anticipated this will be outweighed by State Road funding, all be it at the control of State Government. Local to Regional – It is proposed to nominate Cudgegong Road as a Regional Road. It links Rylstone to the State network (Castlereagh Hwy). Other Roads Considered – Gollan Road is the most direct route between the major centres of Mudgee and Dubbo. However it duplicates the existing State network - Goolma Rd to Wellington and Mitchell Hwy from Wellington to Dubbo. Following discussions with Dubbo Regional Council staff this was not supported as this may lead to Goolma Road being declassified to a Regional or Local Road. Wollar Road now that it is sealed for its full length is the most direct route between Mudgee and the Newcastle area. It duplicates the existing Ulan Rd / Golden Hwy route, however it is not as suitable for freight traffic. Therefore it was not supported to be reclassified from a Regional Road to a State Road. Ulan Road is a major connector from Mudgee to the Newcastle area and is heavily used for the transport of goods and services to the mine. Upper Hunter Council maintain only 6km of Ulan Road and are happy for it to be transferred to a State classification. However we have only recently completed upgrade of Ulan Road to the mines and have an ongoing arrangement for continued maintenance funding over the next 20 years. There is also the possibility of the remaining section north of the mines being upgraded for a future wind farm development. At this stage it is recommended Ulan Road remain under Council management. Lue Road is a Local Road. It is the major link between Mudgee and Rylstone/ Kandos however it parallels the existing Castlereagh Hwy, and it was judged Cudgegong Road would be more likely to be reclassified. Henry Lawson is a Local Road but carries significant traffic. However it parallels the Castlereagh Hwy between Mudgee and Gulgong and is not recommended to be reclassified. Tucklan Road is a local unsealed road within MWRC however it is sealed in the Warrumbungles section. It provides the most direct route between Mudgee and Dunedoo. However it parallels the existing State network and would require substantial investment to bring up to a satisfactory standard. Reclassification was not supported by Warrumbungles staff and is not recommended. Community Plan implications Theme Connecting Our Region Goal High quality road network that is safe and efficient Strategy Provide a roads network that balances asset conditions with available resources and community needs Strategic implications Council Strategies Council’s Toward 2030 Community Plan identifies the important and vital role roads play in connecting our community Council Policies Not applicable MID-WESTERN REGIONAL COUNCIL ORDINARY MEETING - 16 SEPTEMBER 2020 REPORT 10.4 309 Legislation The Roads Act and Local Government Act make reference to the authority of State Government and Local Governments. Financial implications Current Management and Funding Arrangements Currently Council is responsible for the funding and management of Regional Roads. State Government makes a contribution toward the maintenance and upgrade of Regional Roads of approximately $1.0M and $1.5M per year, respectively. Council has traditionally not contributed revenue funding into Regional Roads, although we have been quite successful obtaining Grants and contributions for Regional Roads including; the Ulan Road Strategy (3 mines contributed approximately $40M over 20 years to the upgrade and maintain Ulan Rd), Resources for Regions funding (Wollar Road Upgrade - $14M to upgrade to seal standard 17km, Bylong Valley Way Rehab - $7M over 7 years, Wollar Road Munghorn widening $3.5M over 3 years) Given the above funding arrangements Council has sufficient resources to manage and maintain the Regional Road network in reasonable condition. The State network is managed and funded by State Government. Council undertakes works directed by Transport for NSW under a ‘Road Maintenance Council Contract’ (RMCC). Under the contract agreement administration requirements are onerous. However, Council is skilled and resourced to undertake work in accordance with the contract. Future Funding Arrangements Funding levels will determine the standard of road and ongoing level of service provided to road users. Generally the higher the road classification the more funding is allocated to the road. That is State Roads should be funded to a higher level than Regional Roads which should receive more funding than local roads. However there is no guarantee from the Government of future funding levels following this review. The level of funding is outside the Terms of Reference for the Independent Panel and will be a matter for the State Government. This makes it very difficult for Councils to make decisions regarding transfer of roads as the financial impacts are unknown. Associated Risks There is a risk that the recommended changes may lead to a reduction in funding however it is more probable that they will lead to an increase in funding. GARRY HEMSWORTH DIRECTOR OPERATIONS 2 September 2020 Attachments: Nil APPROVED FOR SUBMISSION: BRAD CAM GENERAL MANAGER .