39TH ANNUAL FLOODPLAIN MANAGEMENT CONFERENCE, MAY 1999

MINIMISING LEGAL LIABILITY RISKS WHEN DISSEMINATING FLOOD DATA

Pat Romano, Liverpool City Council

Paul Grech, Don Fox Planning Pty Ltd

Drew Bewsher, Bewsher Consulting Pty Ltd


SUMMARY

The comprehensive and orderly dissemination of flood data to the public should be an important consideration for local government for two reasons. Firstly because of a council's exposure to potential liability claims, and secondly because the dissemination of flood data is a valuable means of raising a community's flood awareness and has been demonstrated to significantly mitigate flood damages.

Many councils have developed policies for release of flood data which do not adequately reflect either of these two objectives. Further, many councils are unaware of the deficiencies in their existing practices relating to the dissemination of flood data.

The paper presents details of a model policy for the release for flood data that has been prepared for Liverpool City Council. The policy has also been adopted by the Western Sydney Regional Organisation of Councils (WESROC) and the Westpool insurance group. The policy seeks to minimise a council's exposure to potential liability claims arising out of inappropriate release of flood information, whilst facilitating the provision of comprehensive and easily understood flood data, to the public and other council officers.

1. ACTING "IN GOOD FAITH"

The State Government Flood Policy and the 1986 Floodplain Development Manual (FPDM) establish a basis for ensuring exemption from liability as provided for by Section 733 of the Local Government Act, 1993 (LG Act).

Section 733 of the LG Act provides that councils do not incur any liability in respect of advice furnished or anything done or omitted to be done in good faith by council which relates to the nature and extent of flooding provided that council acts in good faith. Unless the contrary is proved, council is taken to have acted in good faith if it has acted substantially in accordance with the FPDM.

Section 3.1 of the FPDM outlines the specific areas of responsibility of councils in regard to floodplain management, which include:

The release of accurate, comprehensive and consistent flood data, between different council officers, to other government authorities, to the general public and to consultants and developers, is essential in exercising council's duties as specified by the FPDM in a manner which limits liability.

 

2. LEGAL ISSUES

In a recent court case involving Mid Density Development Pty Ltd -v- Rockdale MC (1993) 81 LGERA 104, the concept of acting in good faith when releasing flood data was examined in detail. The responsible officer, in completing Section 149 Certificates had relied on his own knowledge and had not searched Council's records which would have revealed that the property was subject to the risk of flooding. The Court concluded that the lack of personal dishonesty was not determinative of action in good faith as provided for by Section 733 of the LG Act. The Court also held that in the circumstances, the disclaimer on the Certificate was not sufficient to absolve the Council of liability for its negligence. As a result Council was found liable for damages exceeding $1 million.

Recent legal advice provided in association with the preparation of other Floodplain Management Plans revealed two important considerations:

The comprehensive and orderly dissemination of accurate flood data, is important both because of its implications for council's legal liability, and as an important flood awareness tool to mitigate the impacts of flood hazards, which could have a number of consequences including:

Accordingly, there are clear benefits in seeking to streamline and safeguard the flood data process which overall contributes to a council's risk management responsibilities.

 

3. PREPARATION OF A MODEL POLICY

The remainder of this paper discusses the development of a model policy for Liverpool to address the above issues. The policy is in a form which allows wider application to other councils and indeed, the WESROC and Westpool insurance groups have adopted Liverpool's policy, and a number of other councils and authorities are currently examining the policy.

3.1 Objectives

 

3.2 Process for the Maintenance of Information and Responding to Information Requests

Figure 1 represents the process to be followed in regard to the receipt of information requests, the maintenance of the information system, and the release of information.

There are two levels of flood related information to be made available, being:

Relevant staff are authorised to provide standardised flood data referred to in their specification of duties. The Flood Investigation Engineers only are authorised to provide non-standardised flood data.

Staff involved in the release of flood data are to be trained in regard to relevant procedures and processes on a regular basis, and in particular on commencement of their duties with Council and upon any significant change to relevant processes and procedures.

3.3 Ownership of Data

3.4 Updating of Information

 

3.5 Access to and Use of Information

The overall responsibility for the compilation, management and release of flood data will be vested with the Flood Investigation Engineers. Flood Investigation Engineers will be responsible for setting up various mechanisms to allow release of standardised information without their involvement, which would include:

The availability of standardised information will increase efficiencies and consistency of data released and should be continually monitored and reviewed with the objective of minimising the involvement required of Flood Investigation Engineers in satisfying individual flood related information requests. However, where limited information outputs are not sufficient to handle the specific nature of a flood related question, then this question must be referred onto the Flood Investigation Engineers.

Those staff within Council involved in the dissemination of flood related information are to exercise their duties in regard to the extent of authority and responsibility specified within the written summary of duties and responsibilities.

Flood Investigation Engineers will be responsible for the provision of comments and advice in regard to all development proposals on flood prone land (i.e. up to the Probable Maximum Flood if defined). Notwithstanding, Flood Investigation Engineers may delegate authority to other personnel within Council to deal with certain classes of development proposals within the flood plain and may nominate standardised conditions of consent which would apply in such cases.

3.6 Means of Information Release

Information to be provided by way of standardised material only by authorised personnel:

Section 149 certificates;

Counter enquiries (refer to Question and Answer booklet and other standardised material only);

Telephone enquiries;

Standard conditions of consent where Flood Investigation Engineers have delegated their authority.

Non Standardised information to be provided by Flood Investigation Engineers only:

Interim flood policy/floodplain management plans;

Written/fax/e-mail enquiries;

Flood reports and flood certificates (normal format and extended format);

Flood brochure;

Other components of Council's Flood Awareness Programs;

DA referrals and other internal advices;

DA approvals and conditions;

Telephone enquiries.

3.7 Monitoring and Review of Policy

 

4. CASE STUDY

A hypothetical case study has been prepared to demonstrate the players involved in requesting and disseminating flood information and how the recommended responses may be provided. This example is drawn from the case study described in the corresponding paper presented at the 1999 Flood Conference entitled "Towards Better Floodplain Planning", prepared by the same authors.

4.1 Site Description

The subject site is relatively large (approx. 1 hectare) and is located adjacent to a main creek with a smaller tributary creek traversing the site. The site was previously used for agriculture and is relatively clear except for riparian vegetation within a 10 metre corridor along the creek. Illustrations 6B9 in the towards Better Floodplain Planning paper provide a diagrammatic representation of the site and its characteristics. The site is located within an urban release area and has the potential for residential flat development. The owner is retiring from agricultural pursuits and wishes to sell the property to developers for residential flats.

4.2 Information Requests from the Owner

The owner makes only the information requests legally required in order to place the property on the market. Accordingly, the owner's solicitor requests a Section 149 Certificate to attach to the Sale Contract. As required by the Environmental Planning Assessment Legislation, the Section 149 Certificate advised that Council had a Floodplain Management Policy/DCP which potentially affected the development potential of the land. The owner was neither interested nor required by legislation to obtain or investigate further the restrictions imposed by the Policy.

4.3 Developer

The developer interested in purchasing the land rings Council and enquires as to the relevant issues which may affect its development potential. Knowing that the site is located adjacent to a major creek the developer enquires as to whether the site is flood affected. The developer is advised that such information can not be provided over the telephone, but is advised that Section 149 Certificates and Flood Certificates can provide this information or the developer may visit Council and inspect the flood maps and relevant documents. The forwarding of a Flood Information Brochure to the applicant advising the processes and the various forms of information available is offered.

The developer obtains a Sale Contract with the attached Section 149 Certificate. The Section 149 Certificate advised that the subject land was "flood affected" (which could mean that the land was potentially inundated anywhere up to the PMF) and was partially zoned 7(a) Environmental Protection. One of the objectives of the 7(a) zone was to restrict development on land located within the high hazard floodway.

The Section 149 Certificate was also accompanied by a Flood Information Brochure prepared by Council which recommended the obtaining of a Flood Certificate to confirm ground levels that ascertain the level of flood affectation. The developer subsequently made application and obtained a Flood Certificate from Council confirming the level of flood affectation.

The developer also investigated all other issues relevant to the development of the property and eventually decides to purchase the property conditional upon development approval. A consultant team is then engaged by the developer to prepare the necessary development application, and includes an hydraulic engineer.

4.4 Consultants

A multi-disciplinary consultant team was commissioned by the developer to deal with all issues relating to the proposed development, project managed by a town planning consultant. A pre-development application (DA) lodgement meeting is arranged with Council officers to discuss all issues including those relating to flooding. The pre-DA meeting was held, convened by Council's town planners, to discuss all issues. In regard to the issue of flooding, Council's planners were able to advise as follows: