Planning Scheme Policies Development Industry Information Session 10 November 2009

Planning Scheme Policies Caboolture PSP 21B – Council Trunk Roads and Pathways PSP 21C – Open Space and Community Purposes PSP 21D – Sewerage PSP 21E – Stormwater PSP 21F – Water Supply PSP 21G – Administration Pine Rivers PSP 21 – Administration PSP 22 – Water Supply PSP 23 – Sewerage PSP 24 – Stormwater PSP 25 – Council Trunk Roads PSP 26 – Open Space PSP 27 – Bikeways Redcliffe PSP – Administration PSP – Open Space & Community Facilities PSP – Water Supply PSP – Sewerage PSP – Transport PSP – Stormwater

Topics to be Covered Definitions / Acronyms Context Application of policies Structure of policies Content of the policies Steps to determine contributions Capping Infrastructure Agreements and Credits Infrastructure Charges Advice / Notice process Further information

PSP Acronyms PSP – Planning Scheme Policies PIP – Priority Infrastructure Plan DISA – Designated Infrastructure Service Area This is the same as the Priority Infrastructure Area (PIA) under the Priority Infrastructure Plan PFTI – Plan for Trunk Infrastructure DSS – Desired Standards of Service NPV – Net Present Value IC Advice – Infrastructure Charges Advice IC Notice – Infrastructure Charges Notice ICR – Infrastructure Charges Register

Definitions: What is “Development Infrastructure”? Under IPA, ‘development infrastructure’ is land/works for: 1.Urban and rural residential Water Cycle management - water supply, sewerage, stream management, flood mitigation 2.Transport - roads, traffic control devices, cycle ways 3.Public Parks - playground equipment, playing fields, courts and picnic facilities 4.Local Community Facilities - land for community halls, public recreation centres, libraries

Definitions: Trunk vs Non-Trunk Infrastructure Under IPA, ‘development infrastructure’ is further categorised as either: 1.Trunk infrastructure (higher order, servicing multiple developments and specifically identified in the PIP as ‘trunk infrastructure’); or 2.Non-trunk infrastructure (any other infrastructure) The above categorisation determines the mechanism available under the Act for acquiring development infrastructure through the development assessment process. Once a PIP is in place, Council cannot impose conditions in relation to Trunk Infrastructure, only levy a charge. Prior to the introductions of a PIP, these restrictions do not yet apply and Council can still impose reasonable and relevant conditions based on the PSPs.

Context: The Priority Infrastructure Plan Council is required to have a PIP in place by 30 June 2010 IPA and the current guideline 1/04 (and draft 1/08) provide for the following approach to developing a PIP 1.Determine the Planning Assumptions (timing and densities) 2.Set the Priority Infrastructure Area (PIA) – the area of the LGA in which Council plans to support development within the planning horizon. 3.Determine the Trunk Infrastructure Networks 4.Determine the Desired Standards of Service (DSS) for the Trunk Networks 5.Determine the infrastructure required to provide those DSS in line with the Planning Assumptions 6.Allocate Capital Costs to this infrastructure 7.Determine the Charge Rates (‘user pays’ approach)

Context: The PSPs and the PIP The three former Councils of Caboolture, Pine Rivers and Redcliffe commenced work on the background studies to inform the Priority Infrastructure Plan. This work has now informed the PSPs. The PSPs are an interim measure until the PIP comes into effect. The PSPs are structured to mimic as much as possible the future Infrastructure Charges Regime under the PIP. The PSPs were compiled for Caboolture, Redcliffe and Pine in early 2009 and went through a Schedule 1 Consultation process under the IPA.

Application of Policies The 2009 PSPs will apply to all decisions on development applications made by Council from 29 October The next slide shows how they fit into the assessment process under IDAS.

Content of Policies Administration 1.Assumptions 2.Application 3.Calculation of contributions 4.Credits 5.Infrastructure Agreements 6.Capping 7.Financial management 8.Definitions Network Policies 1.Background reference documents 2.Methodology 3.Plans for Trunk Infrastructure 4.Contribution rates 5.Service Catchment maps 6.Network Asset maps 7.Desired Standards of Service

Structure of Network Policies The general set out for each of the network policies is: Section 1 - Scope Section 2 - Background Section 3 - Methodology Section 4 - Plan for Trunk Infrastructure Schedule A - Demand Factors Schedule B - Infrastructure Contribution Rates Schedule C - Service Catchments Schedule D - Network Assets Schedule E - Desired Standards of Service Note: For Redcliffe, Service Catchments and Network Assets are contained in the same Schedule.

Networks The networks covered are: 1.Water Supply 2.Sewerage 3.Roads 4.Pathways / Bikeways 5.Stormwater (Quantity and Quality) 6.Open Space (parks, sporting facilities, recreation trails & community facilities land)

Desired Standards of Service (DSS) The DSS express the desired capacity and performance of the relevant network. The Desired Standards of Service (DSS) for each network were developed by taking into consideration: Existing standards of service Relevant legislation and guidelines (for example: Australian Standards, EPP (Water) etc) Community expectations The DSS are found in Schedule E of each network policy.

Planning Assumptions The planning assumptions are the location, type, scale and timing of future development on which the PIP is based. For residential growth this is expressed in population and dwellings. For non residential growth this is expressed in GFA and employees The Planning Assumptions are found in Section 3 of the Administration Policies.

Network Demand The planning assumptions are assessed and for each network converted to demand on the network. The concept of a ‘standard’ demand unit is used. For example: EP Equivalent Person (Water - Sewer - Open Space) ET Equivalent Tenement (Open Space) ECA Equivalent Contributing Area (Stormwater) CTE Chargeable Trip End (Roads – Pathways) ResDU Residential Demand Unit (Roads – Bikeways)

Network Demand continued Why do we use ‘Demand Units’? They remain constant over time. The contribution can be calculated from ‘unit’ rates per demand unit. This allows efficient adjustment of contributions for inflation. Payments made are recorded in terms of demand units as an entitlement against the applicable lots, independent of the amount paid.

Service Catchments Service Catchments reflect the common benefits a group of users receive from the delivery of a relevant trunk network. Users are grouped into ‘catchments’, where the cost of the infrastructure supplied to service the catchment is apportioned to the users within the catchment (“user pays” principle). It follows that charges vary between catchments depending on servicing costs.

Service Catchments continued Typical service catchments for each network are: Traffic zones – transport Areas of similar development patterns – open space Topographical features – stormwater Water supply zones Treatment plants – sewerage The service catchments are shown on the maps in Schedule C.

Plans for Trunk Infrastructure Plans for Trunk Infrastructure (PFTI) identify the infrastructure to be provided to meet the DSS – this includes land and constructed works. The trunk infrastructure items listed in the PFTI are shown on the maps in Schedule D. (Schedule C for Redcliffe) The PFTIs then inform Council’s capital works program but also show existing infrastructure and allow identification of infrastructure which may be provided by development proponents.

Contribution Rates The cost of trunk infrastructure, grouped by service catchments, is allocated to the users in the service catchments. The users can be existing or future. The cost is to be equitably shared across all users and development only pays for its fair share. This cost allocation results in the contribution rates per service catchment per demand unit ($ICR/demand unit). The contribution rates are shown in Schedule B of the network policies.

Steps to Determine Contributions Step 1 – check the relevant network service catchments where the property is located Step 2 – determine applicable trunk networks Step 3 – determine what you are proposing (land use) Step 4 – determine the total demand your proposal will generate Step 5 – determine existing demand on the site Step 6 – calculate contributions based on the increase in demand Step 7 – other (capping, credits, remissions, IAs )

Step 1 – Determine Service Catchments Schedule C of network policies contain the service catchment maps. PD Online – available soon Development > PD Online

Step 2 – Applicable Trunk Networks Are you in a Service Catchment? Eg Sewerage

Step 3 – what are you proposing? Are you proposing a Material Change of Use or Reconfiguring a Lot? MCU – are for the defined uses in the planning scheme – see Schedule A - Demand Factors for MCUs RAL – by planning scheme zone – see Schedule A - Demand Factors for RALs Schedule A of each Network Policy

Step 4 – Total Demand For each network, this is the total network demand that will be generated once the development is completed. NOTE: The total demand will need to be compared with the planning assumptions for the site. The higher will apply for the purposes of calculating contributions. Section 5.2 Administration Policy & Schedule A in each Network Policy (Demand Factors).

Step 5 – Existing Demand Existing demand is the demand for each network a development proponent has already paid for in the past or is entitled to by way of existing use rights on the subject land. 1.Existing demand recorded in Council’s ICR 2.The demand on which previously paid infrastructure contributions were based 3.The equivalent demand of each lawful use undertaken on the land prior to the application being made Section 5.3 Administration Policy & Schedule A in each Network Policy (Demand Factors)

Step 6 – Calculate Contributions For each network Contribution = (A – B – C) x D x E where A=(PxF) + Administration Where: P = Demand Parameter (the size/scale of the proposal) F = Demand Factor (listed in Schedule A of the relevant network policy) A = Total demand of the proposal (expressed in Demand Units) B = any existing demand for the site (expressed in Demand Units) C = any Infrastructure Credits (expressed in Demand Units) D = Infrastructure contribution rate E = Escalation Factor Contribution = (Total Proposed Demand – Existing Demand) x Contribution Rate ∑For all network components & administration

Step 7 Capping Infrastructure Agreements & Credits

Capping The capping scheme applies to Residential development only. The current capping rates are as follows: - Pine Rivers:Res Lots $29,455 and Units $23,564 -Caboolture:Res Lots $25,000 and Units $20,000 -Redcliffe:Res Lots $20,000 and Units $16,000 The Administration Policy for all three districts contains the Capping Methodology in Section 5.7.

Infrastructure Agreements When are they required? 1.For any item of Trunk Infrastructure contributed by a developer. 2.Transfer of land. 3.To specify payment terms and any refund arrangements. An IA must define the developer contributed Trunk Asset by: 1.The project identifier in the PFTI. 2.The value of the item as outlined in the PFTI. 3.The credit specified Demand Units.

Credits A Credit is the amount (measured in demand units) credited by Council to a development proponent for the construction or donation of Trunk Infrastructure identified in the PFTI, and which can be used to offset the monetary contribution by the development proponent for the network. Council’s policy arrangements for credits are outlined in Section 6.6 of the Administration Policies. Credits are issued for Trunk Infrastructure. Provision of Trunk Infrastructure by a development proponent requires an Infrastructure Agreement be entered into. Arrangements in relation to credits are detailed in said Infrastructure Agreement.

Credits continued Basically, the determination of the Credit is as follows: 1.Identify the Item of Trunk Infrastructure in the PFTIs. 2.Determine the value of the Trunk Infrastructure. 3.Find the contribution rate in the relevant service catchment. 4.Divide the value of the Trunk Infrastructure by the contribution rate and obtain the Credit in Demand Units.

Infrastructure Charges Advice / Notice Process

Information Required with DA Lodgement To enable IC Advices to be issued with decision notices, the following information will be required with the lodgement of an application: 1.Existing demand entitlements for each trunk network 2.Proposed total demand for each trunk network expressed in the relevant demand factors

Additional Information Infrastructure Contributions page Development > Infrastructure Contributions Contains Fact sheets Will shortly have a Fee Estimation Tool available