City of Swan June 2011 DEVELOPMENT CONTRIBUTIONS PLAN …€¦ · · 2011-07-07City of Swan June 2011 DEVELOPMENT CONTRIBUTIONS PLAN DCA 2 – Dayton (West Swan East)

City of Swan

June 2011

DEVELOPMENT CONTRIBUTIONS PLAN

DCA 2 – Dayton (West Swan East)

Client

Document Name

Client Number

File Location

Date

Project Manager

Document Status

��

City of Swan Development Contributions Plan – DCA

0803-1

M:\0803-1 Swan - DCP\Work\Word\110125_COS_Draft_for_Consultation_DCP_West_Swan_East.docx

June 2011

Jason Natoli

Author

Prelim. JN

Draft

JN

Draft Final JN

Revision

Philip Mann

Draft for Consultation

Philip Mann

�� Final

Philip Mann

Document Control


110125_COS_Draft_for_Consultation_DCP_West_Swan_East.docx

Signature Reviewer

SB

SB

NC

Jason Natoli

Jason Natoli

Jason Natoli

Document Control

110125_COS_Draft_for_Consultation_DCP_West_Swan_East.docx

Signature

Swan Urban Growth Corridor Development Contributions Plan


June 2011 City of Swan i M:\0803-1 Swan - DCP\Work\Word\110617_COS_Final_DCP_West_Swan_East.docx



June 2011 City of Swan ii M:\0803-1 Swan - DCP\Work\Word\110617_COS_Final_DCP_West_Swan_East.docx

Table of Contents

PART 1 – DCA 2 – DAYTON (WEST SWAN EAST) STATUTORY AMENDMENT......................................... 1

PART 2 - DCP REPORT ............................................................................................................................................. 5

1.0 PRELIMINARY .............................................................................................................................................. 5

1.1 COMMENCEMENT ........................................................................................................................................... 5

1.2 PERIOD OF OPERATION .................................................................................................................................. 5

1.3 REVIEW OF DCP ASSUMPTIONS ..................................................................................................................... 5

1.4 POSITION STATEMENT ................................................................................................................................... 5

1.5 APPLICATION ................................................................................................................................................. 6

2.0 METHOD OF COST APPORTIONMENT .................................................................................................. 6

3.0 INFRASTRUCTURE ...................................................................................................................................... 7

3.1 INFRASTRUCTURE ITEMS THAT WILL BE FUNDED ........................................................................................... 7

3.2 PROPORTION OF ADMINISTRATIVE AND INFRASTRUCTURE COSTS FUNDED BY COST CONTRIBUTIONS........ 10

3.3 COST OF INFRASTRUCTURE .......................................................................................................................... 10

3.3.1 Preparing, Maintaining and Implementing the DCP .............................................................................. 10

3.3.2 Design and Construction of Infrastructure ............................................................................................. 11

3.3.3 Land Costs .............................................................................................................................................. 11

4.0 REVIEW OF COST CONTRIBUTIONS ................................................................................................... 11

5.0 CALCULATION AND PAYMENT OF COST CONTRIBUTIONS ....................................................... 12

5.1 METHOD OF CALCULATING THE COST CONTRIBUTION ................................................................................ 12

5.2 PAYMENT OF THE CONTRIBUTIONS............................................................................................................... 12

5.3 ALTERNATIVES TO PAYING COST CONTRIBUTIONS ..................................................................................... 12

5.4 GST ............................................................................................................................................................. 13

6.0 INFRASTRUCTURE AGREEMENTS ....................................................................................................... 13

7.0 REGISTER OF COST CONTRIBUTIONS AND INFRASTRUCTURE AGREEMENTS................... 13

ANNEXURE 1 – DEVELOPMENT CONTRIBUTION AREA AND INFRASTRUCTURE DEMAND .......... 15

ANNEXURE 2 – INFRASTRUCTURE PLANS ..................................................................................................... 17

ANNEXURE 3 – INFRASTRUCTURE COST SCHEDULES ............................................................................... 19

PART 3 - COST APPORTIONMENT SCHEDULE............................................................................................... 21

1.0 SCHEDULE OF COST CONTRIBUTION RATES .................................................................................. 21

2.0 INDEXATION ............................................................................................................................................... 21

3.0 TOTAL APPORTIONED DCP INFRASTRUCTURE COSTS ............................................................... 21



June 2011 City of Swan 1 M:\0803-1 Swan - DCP\Work\Word\110617_COS_Final_DCP_West_Swan_East.docx

PART 1 – DCA 2 – DAYTON (WEST SWAN EAST) STATUTORY AMENDMENT

This part is the Development Contribution Plan required by Clause 5A.2.5.1 of the Local Planning Scheme 17 (LPS17) and may be incorporated in Schedule 13 of the Scheme or as part of a Structure Plan in accordance with Clause 5A.2.6.1 of LPS17. ____________________________ DCA 2 – Dayton (West Swan East)

1. The Development Contribution Area (DCA) comprises all the land referred to as Dayton (West Swan East) and identified by scheme maps as DCA 2.

2. The Development Contribution Plan generally conforms to the following endorsed plans: • The Swan Urban Growth Corridor Sub-Regional Structure Plan,

• The Urban Growth Corridor- Sub Regional Planning Community Facilities

Analysis, 2008 (CFA);

• The West Swan East District Structure Plan (Including associated

Appendices); and

• The Capital Expenditure Plan for the Urban Growth Corridor.

3. The Infrastructure and Administrative Costs to be funded through this DCP comprise the following networks of Infrastructure:

Standard Infrastructure Natural Gas Additions to the natural gas mains required to service the Development Contribution Area. Specifically: • The construction of a Pressure Reduction Station along Marshall Road.

Transport Construction and/or upgrade of the following existing and future roads which are required to service the Development Contribution Area: • Upgrade/construction of Marshall Road between Lord Street and the future Henley

Brook Avenue. • Construction of Henley Brook Avenue between Reid Highway and Harrow Street. • Upgrade/Construction of Lord Street from the Northern extent of the ‘Bushland

Forever’ Site through to Marshall Road East and the intersection with St. Leonards Boulevard deviation.

• Upgrade/Construction of Arthur Street between Cranleigh Street and the Reid Highway.

• Upgrade/Construction of Cranleigh Street between Lord Street and Arthur Street. • Relocation of Services at:

� Arthur Street between Cranleigh Street and the Reid Highway; � Marshall Road between Lord Street and Arthur Street; � Cranleigh Street between Lord Street and Arthur Street; � Intersection of Arthur Street and Marshall Road.

• Land Resumptions necessary to accommodate the proposed designs for all DCP Roads as previously listed, where not already provided in existing reserves.

• Intersection Treatments at:




� Henley Brook Avenue and Marshall Road Extension; � Henley Brook Avenue and Harrow Street; � Henley Brook Avenue and Victoria Road; � Arthur Street and St. Leonards Boulevard; � Marshall Rd Extension and Future Link (South); � Lord Street and Harrow Street; � Marshall Road and Arthur Street; � Marshall Road (East) and Lord Street; � Arthur Street and Cranleigh Street; � Lord Street and Cranleigh Street; � Marshall Road and Future Link (North); � Arthur Street and Victoria Road; � Marshall Road (West) and Lord Street.

• Land Resumptions necessary to accommodate the proposed designs for all DCP Intersections as previously listed, where not already provided in existing reserves.

• Pathways providing connection to the Swan Valley Bike Path at West Swan Road from Malvern Street and Henley Brook Avenue.

Land for Public Open Space and Community Facilities Acquire land for Public Open Space and Local Community centre at the general locations and quantity identified by the West Swan East District Structure Plan.

The West Swan East District Structure Plan proposes the Land for District Open Space will serve a local function to the Dayton (West Swan East) DCA. As a result, the associated land acquisition costs shall be funded entirely by Dayton (West Swan East) through contributions toward Land for Public Open Space and Community Facilities. Acquire land for two separate Wetlands (1.69ha and 2.12ha) at the locations identified by the West Swan East District Structure Plan.

Community Infrastructure Sub Regional Community Infrastructure Land for and construction of community facilities identified by the “Urban Growth Corridor – Sub Regional Planning Community Facilities Analysis, 2008” (CFA). Specifically: • Provision of playing fields, pavilions and other associated facilities in Dayton (West

Swan East) to provide district facilities identified by the CFA. • Acquisition of land in Brabham (Albion) to support provision of a district community

centre as identified by the CFA. • Construction of a district community centre in Brabham (Albion) as identified by the

CFA. Local Community Infrastructure Construction of Community Infrastructure identified by the West Swan East Community and Economic Development Plan (CEDP) and the West Swan East District Structure Plan. Specifically: • Construction of a playing field and associated infrastructure to provide

Neighbourhood Active Public Open Space; • Construction of fifteen (15) Local Passive Public Open Spaces; • Construction of a local community centre; and • Rehabilitation of wetlands.

Administrative Items Administrative Items permitted by definition under Clause 5A.2.3 and identified in more detail in the Developers Contribution Plan Report.




4. The amount of an owner’s Cost Contribution will be determined by the proportional share

of Infrastructure Demand that the proposed development generates in accordance with the Cost Apportionment Schedule.

a. The DCP Report and Cost Apportionment Schedule shall define units of

Infrastructure Demand used to calculate a Cost Contribution.

b. The DCP Report shall estimate the Infrastructure Demand and both the Administrative and Infrastructure Cost for each network of Infrastructure to calculate the Infrastructure Contribution Rate expressed in $/unit of Infrastructure Demand.

c. The Cost Apportionment Schedule shall report the Infrastructure Contribution Rates for each network of Infrastructure.

d. The Cost Contribution applicable to development for each network of

Infrastructure will be calculated in accordance with the general method outlined:

C = [ID x CR] x I

Where

C = Cost Contribution (for a chosen network, e.g. Transport)

ID = Infrastructure Demand, calculated using the Cost Apportionment Schedule

CR = Contribution Rate as set out in the Cost Apportionment Schedule; and

I = Indexation factor set out in the Cost Apportionment Schedule to take into account inflation and other matters relevant to the capital cost of infrastructure.

5. This Development Contribution Plan (DCP) shall operate until such time as all land within

the DCA has made contribution toward DCP infrastructure or for a period of 10 years from the date of incorporation into Schedule 13 of LPS17, pursuant to Clause 5A.2.6, at which time the period may be extended.

6. The detailed scope and cost of each infrastructure network shall be described in the Development Contribution Plan Report which shall outline the assumptions necessary to determine Infrastructure Contribution Rates and inform the Cost Apportionment Schedules.

7. The Cost Apportionment Schedule and Development Contribution Plan Report shall in

accordance with Clause 5A.2.13.2, be reviewed at least annually to reflect revised infrastructure scope, cost estimates and total infrastructure demand.







PART 2 - DCP REPORT

1.0 Preliminary

1.1 Commencement

The Dayton (West Swan East) Development Contributions Plan (Dayton (West Swan East) DCP) is given effect by the provisions of Section 5A.2 and Schedule 13 of Local Planning Scheme No.17 This Development Contributions Plan Report (DCP Report) provides additional analysis necessary to implement the DCP. This report has been adopted by the City of Swan (CoS) on 25 May 2011 and is to be known as “Development Contributions Plan Report for DCA 2 – Dayton (West Swan East)”. This report commences upon incorporation of DCP2 into Schedule 13 of LPS17, in accordance with Clause 5.A.2.6.1 (the Commencement Date).

1.2 Period of Operation

It is intended that the DCP retains its force and effect until the completion of the development of all englobo land holdings within the Development Contribution Area (DCA) to ensure that appropriate funds are recovered from the entire area to recover and share the cost of infrastructure provision. The initial Period of Operation shall be 10 years from the Commencement Date at which time the remaining land holdings shall be reviewed and a new horizon set to ensure the efficacy of the DCP.

1.3 Review of DCP Assumptions

Notwithstanding the Period of Operation, the DCP shall be subject to review, at least annually, of cost estimates and assumptions which determine the Infrastructure Contribution rates. The annual review of Infrastructure Contribution Rates is stated in Section 4.0. At the end of the Period of Operation, or earlier if determined necessary by Council, the scope of infrastructure and contribution catchments shall be reviewed. Both outstanding funding along with the likely revenue opportunities are analysed to determine an appropriate, equitable and transparent method to ensure adequate funds are generated by the DCP.

1.4 Position Statement

The Dayton (West Swan East) DCP has been developed to facilitate orderly development in the Development Contribution Area, providing a mechanism to ensure provision of Infrastructure in an equitable manner. The DCP has been prepared in accordance with Planning and Development Act 2005 (“Act”) (and associated amendments), the State Planning Policy 3.6 ‘Development Contributions for Infrastructure’ and the City of Swan Local Planning Scheme 17. The statutory provisions of the DCP are contained within Schedule 13 of Local Planning Scheme 17. This report does not form part of the Scheme and is subject to review as outlined in section 4.0. The DCP is based generally on the outcomes of draft Local Planning Policy Pol-TP-138 (Swan Urban Growth Corridor - Infrastructure Strategy for Development Contributions) February 2010 while taking into consideration the more refined outcomes of Structure Plans




prepared for the DCA and ongoing negotiations and deeds struck between Council and the development proponents.

1.5 Application

This DCP applies to all development outlined in Clause 5A.2.15.2 of LPS17 requiring the consent or recommendation of Council that:

• is located in the Development Contribution Area; and • is determined under this Development Contributions Plan to be serviced with

Infrastructure.

Such a determination will be made by Council during the development assessment process and specified as a specific condition of a relevant approval made under the Act.

2.0 Method of Cost Apportionment Apportionment of infrastructure costs shall be based on the estimated Infrastructure Demand of the development. Infrastructure Demand (ID) is a unit defined for the DCP which allows equitable apportionment based on the specific development outcomes. For the Dayton (West Swan East) DCP costs are apportioned using a ‘Cost Contribution Area’ which represents the area of a development site which is free of known encumbrances and allows for future development. The Cost Contribution Area (CCA) is defined as follows:

��

� �� 2 � �� 2

� �� 2 In order to determine the Infrastructure Contribution Rate the Infrastructure Demand is estimated via an assessment of the land use outcomes envisaged under the West Swan East Structure Plan. The CCA has been derived to prudently account for development constraints by excluding known areas that cannot be developed as outlined in Liveable Neighbourhoods. These constraints were identified in the Sub-regional Structure Plan and the District Structure Plan. The assumed development demands are tabled in Annexure 1. For the purpose of this DCP Report 'Infrastructure Contribution Rate' and 'Infrastructure Demand' will have the following meaning:

'Infrastructure Contribution Rate' means the cost per unit of demand; and 'Infrastructure Demand' means the Infrastructure required to accommodate a specific land use, expressed as a unit of demand, equally weighted against the Infrastructure required by other land uses.

The total Infrastructure Demand forms the basis of the cost apportionment in Annexure 3 to derive Infrastructure Contribution Rates for each network of Infrastructure. These demand assumptions shall be reviewed throughout the period of operation to ensure fairness and equity in cost contributions applied through the development process, particularly the area of development achieved and its relationship to demand.




3.0 Infrastructure

3.1 Infrastructure Items that will be funded

The infrastructure networks and items to be provided under this Development Contribution Plan are for the provision of:

• Standard Infrastructure networks to cover the general requirements for

developments to provide infrastructure. For the Dayton (West Swan East) DCP this

includes selected natural gas infrastructure, selected roads and intersection

upgrades, pathways and land for conservation areas, public open space and

community facilities; and

• Community Infrastructure networks to provide the structures, systems and

capacities which are necessary to help the community to function effectively. For the

Dayton (West Swan East) DCP this includes local and district sporting facilities and

community centres.

The West Swan East District Structure Plan has concluded that the other network of infrastructure addressed by Council's draft Policy Pol-TP-138 being Main Drainage can be delivered equitably through conditions on development without cost sharing through the DCP. Consequently, Main Drainage will not form part of the contributions arrangements. The scope of Infrastructure is described below and defined in Annexures 2 and 3. Infrastructure Contribution Rates for each network are calculated by the Infrastructure Cost Schedules in Annexure 3 and presented in the Cost Apportionment Schedule. Whilst efforts are being made, the City of Swan cannot guarantee that government grants or contributions referred to in this DCP will ultimately be received. Standard Infrastructure Natural Gas It is necessary to undertake significant works to provide a domestic gas supply to the area. WA Gas Networks have identified infrastructure that would be required to provide a service to the entire DCA. Council considers that it is appropriate for the following infrastructure to be included in the Dayton (West Swan East) DCP. • The construction of a Pressure Reduction Station adjacent to Marshall Road. Transport Construction of and/or upgrades to roads, intersections and pathways that have been identified through the West Swan East District Structure Plan as being necessary for access and connectivity. Council has identified the need to share the cost of the following infrastructure through the DCP. • Marshall Road to be upgraded and/or constructed to an urban standard between Lord

Street and the future Henley Brook Avenue. The West Swan East District Structure Plan identifies an indicative cross section for this road. Given the existing services, a determined amount for service relocation between Lord Street and Arthur Street has been included in the DCP.




• Henley Brook Avenue to be constructed between Reid Highway and Harrow Road. The Infrastructure comprises the earthworks for the ultimate dual carriageway and construction of the first stage road works (single carriageway). Construction of the second carriageway does not form part of the contributions arrangements and will be undertaken by the City when traffic volumes justify an increase in capacity.

• Lord Street. Lord Street from the northern extent of the ‘Bushland Forever’ site through

to Marshall Road and the intersection with St. Leonards Boulevard deviation is to be upgraded and/or constructed to an urban standard. The West Swan East District Structure Plan identifies indicative cross sections and alignment for Lord Street.

• Arthur Street to be upgraded and/or constructed to an urban standard between Cranleigh Street and the Reid Highway. The West Swan East District Structure Plan identifies an indicative cross section for this road. Given the existing services, a determined amount for service relocation along the full length described has been included in the DCP.

• Cranleigh Street to be upgraded and/or constructed to an urban standard between Lord Street and Arthur Street. The West Swan East District Structure Plan identifies an indicative cross section for this road. Given the existing services, a determined amount for service relocation along the full length described has been included in the DCP.

• Land Resumptions necessary to accommodate the proposed designs for all DCP Roads as previously listed, where not already provided in existing reserves. The City has been seeking a formal commitment from the State Government to acquire land for Henley Brook Avenue in a timely manner. At the time of the last review of the DCP arrangements no such commitment has been forthcoming. As such, the City shall seek contributions from Dayton (West Swan East) towards outstanding land acquisition required to accommodate Henley Brook Avenue.

• Intersection Treatments to be provided at key locations within the area to facilitate access onto and between those roads identified above. The West Swan East District Structure Plan provides an indication of intersection type but limited detail on design;

� Henley Brook Avenue and Marshall Road extension; signalised intersection; � Arthur Street and St. Leonards Boulevard; channelised T intersection; � Marshall Rd and Future Link (South); channelised T intersection; � Lord Street and Harrow Street; channelised T intersection; � Henley Brook Avenue and Harrow Street; channelised T intersection; � Henley Brook Avenue and Victoria Road; channelised T intersection; � Marshall Road and Arthur Street; roundabout (including a determined amount

for service relocation costs); � Marshall Road (East) and Lord Street; roundabout; � Arthur Street and Cranleigh Street; roundabout; � Lord Street and Cranleigh Street; roundabout; � Marshall Road and Future Link (North); roundabout; � Arthur Street and Victoria Road; roundabout; � Marshall Road (West) and Lord Street; roundabout.

• Land Resumptions necessary to accommodate the proposed designs for all DCP Intersections as previously listed, where not already provided in existing reserves.

• Paths are to be constructed along the following Streets, so as to provide the

connections to the Swan Valley Bike Path at West Swan Road. � Harrow Road – from Malvern Street to West Swan Road; and,




� Coast Road – from Henley Brook Avenue to West Swan Road. Land for Public Open Space and Community Facilities Provision of specific areas of Land for Public Open Space and Local Community Facilities to provide local and district access to active playing fields. The West Swan East District Structure Plan identifies the general location of active and passive open space.

• Acquire land for fifteen (15) separate Local Passive Spaces (23.15ha in total) at the

locations identified by the West Swan East District Structure Plan. • Acquire land for the Neighbourhood Active Space (2.63ha) at the location identified by

the West Swan East District Structure Plan. • Acquire land for the District Active Space (11.23ha) at the location identified by the

West Swan East District Structure Plan. • Acquire land for the Local Community Centre (0.3ha) at the location identified by the

West Swan East District Structure Plan.

Provision of specific areas of Land for Resource Enhancement Wetlands as identified by the State Government. The West Swan East District Structure Plan identifies the general location of Wetlands. It is the City’s view that the State Government should acquire the land for Resource Enhancement Wetlands or compensate landowners appropriately. The City will seek contributions for Resource Enhancement Wetlands in Dayton (WSE), to compensate landowners in the event that state money is not available, specifically: • Acquire land for two separate Wetlands (1.69ha and 2.12ha) at the locations identified

by the West Swan East District Structure Plan. • Rehabilitation of wetlands.

Community Infrastructure Sub Regional Community Infrastructure The need for Sub Regional Community Infrastructure has been identified by the Swan Urban Growth Corridor - Sub Regional Structure Plan (SRSP). Specifically, through analysis of community need included in the “Urban Growth Corridor – Sub Regional Planning Community Facilities Analysis, 2008” (CFA). Analysis of implementation and cost sharing is guided by Council’s draft LPP "Swan Urban Growth Corridor Infrastructure Strategy for Development Contributions" which identifies contributions by all landowners in the "growth corridor" toward land and construction of district facilities, specifically:

• Provision of playing fields, pavilions and other associated facilities in Dayton (West

Swan East) to provide district level facilities identified by the CFA. • Acquisition of Land in Brabham (Albion) to support provision of a district community

centre. • Construction of a district community centre in Brabham (Albion) as identified by the

CFA. The West Swan East District Structure Plan proposes the Land for District Open Space will serve a local function to the Dayton (West Swan East) DCA. As a result, the associated land acquisitions costs shall be funded by Dayton (West Swan East) through contributions toward Land for Public Open Space and Community Facilities.

Local Community Infrastructure The need for Local Community Infrastructure was initially identified by the SRSP and has been analysed further by the West Swan East Community and Economic Development




Plan (CEDP) and West Swan East District Structure Plan. The City has concluded that it is necessary to share the following infrastructure as part of the Dayton (West Swan East) DCP:

• Construction of a playing field and small pavilion to provide Neighbourhood Active

Public Open Space in accordance with the West Swan East CEDP and DSP. • Construction of fifteen (15) Local Passive Public Open Spaces in accordance with the

West Swan East CEDP and DSP. • Construction of a local community centre in accordance with the West Swan East

CEDP and DSP.

3.2 Proportion of Administrative and Infrastructure Costs funded by Cost Contributions

Cost contributions are generally levied on a full cost recovery basis. Where other sources of funding have been identified to subsidise the cost of infrastructure, the funding source has been accounted for in the cost estimates. A specific column in the Infrastructure Cost Schedules in Annexure 3 defines the extent of subsidy for each Infrastructure item.

3.3 Cost of Infrastructure

Costs for Infrastructure comprise of: a) The Administrative Cost – the cost of preparing, maintaining and implementing

the Development Contribution Plan as described more specifically in the definitions of “administrative costs” and “administrative items” in LPS17;

b) The Infrastructure Cost – i. all costs associated with the design and construction of the

infrastructure including acquisition of land associated with the infrastructure; and

ii. relevant contingencies to accommodate the accuracy of the planning and design that has been undertaken.

as more specifically described in the definition of “Infrastructure Cost” in LPS17.

For clarity, the calculations undertaken for the DCP Cost Contributions do not include an explicit allowance for financing costs. A nominal inclusion for the ‘time value of money’ has been provided through the Net Present Value (NPV) analysis used to derive the Infrastructure Contribution Rate This emulates the impact of delays between making an expenditure on the infrastructure network and then gathering revenues to reconcile these investments. In the case of the DCP the primary responsibility for financing will be that of the developer and their assessment of risk and return on investment made in Infrastructure contained within the DCP. The NPV Equation used in the model is a - Nominal Value Analysis (Escalate Capex at Escalation Rate, Charges at CPI).

The model inputs utilised to achieve the NPV analysis, and hence calculate the Infrastructure Contribution Rate are:

• Escalation Rate: 4.5%; • Nominal WACC: 8%; • Inflation Rate (CPI): 3%; and • Real WACC: 4.85%.

3.3.1 Preparing, Maintaining and Implementing the DCP

In accordance with Council's Local Planning Policy (Pol-TP-138) the Administrative Cost shall be levied from all development within the DCA as Part of the Infrastructure Cost. The




cost has been determined through an analysis of internal and external costs to create, maintain and administer the day to day operation of the DCP. These costs are contained within Infrastructure Cost Schedules in Annexure 3.

3.3.2 Design and Construction of Infrastructure

All costs associated with the design and construction of infrastructure shall be included as part of the Infrastructure Cost. The cost associated with acquisition of land will also be recovered (see 3.3.3). Construction costs shall be estimated using the best available information to the City and shall include cost indexation and contingencies appropriate to the timing of provision and certainty of design. The DCP Infrastructure Plans and Infrastructure Cost Schedules present the assumptions in regards to cost and scope which are used to determine the contribution rates.

3.3.3 Land Costs

Where land is a contribution item or required to accommodate Infrastructure, the land costs are identified in the Infrastructure Cost Schedules as either separate items or as part of the infrastructure items (e.g. additional land required for road widening purposes included within the total road upgrade cost). To determine the cost contribution, land must be attributed a cost by the DCP. A valuation has been undertaken to determine a unit rate for land within the DCA and where entire parcels are required these have been specifically valued. This valuation shall be reviewed at least annually during review of the DCP. The cost of land within the DCP shall reflect the unit rate or, where the Council determines it is necessary, individual valuation of parcels. Where land is ceded as a condition of subdivision, credit toward cost contributions shall be consistent with the valuation of the land used in the DCP. Where land is not part of a development application and is required for Infrastructure, the land shall be acquired in accordance with the Land and Administration Act 1997 (LAA). Valuation of land under the DCP shall not limit the City in regards to its obligations under the LAA which specified its own process for the determination of the compensation value under the Act.

4.0 Review of Cost Contributions Cost estimates for Infrastructure and assumptions of Infrastructure Demand to determine the Infrastructure Contribution Rates shall be reviewed as set out below to ensure the currency of the Cost Apportionment Schedule. Council shall review this DCP Report and its assumptions on an annual basis and adjust the Contribution Rates accordingly. Such a review will include the following actions: • Where project costs have been determined or the infrastructure scope and estimates

refined – changes to scope shall be reflected in the DCP Infrastructure Plans, revised costs shall be reflected in the Infrastructure Cost Schedules and the new contribution rates shall be determined.

• Where cost estimates include funds for ceding or acquisition of land then those

estimates shall be reviewed at least annually.




• Where revised costs are not available, the Contribution Rates in Schedule 2 and project cost estimates shall be indexed by a published indexation rate relevant to the escalation of costs for Infrastructure.

• The assumptions used in Annexure 1, to calculate Total Equivalent Demand shall be

reviewed to ensure fairness and equity in cost contributions applied throughout the development process.

5.0 Calculation and Payment of Cost Contributions

5.1 Method of calculating the Cost Contribution

The cost contribution applicable to development for each network of Infrastructure will be calculated in accordance with the general method outlined: C = [ID x CR] x I Where

C = Cost Contribution (for a chosen network, e.g. Transport)

ID = Infrastructure Demand, calculated using the Cost Apportionment Schedule

CR = Contribution Rate as set out in the Cost Apportionment Schedule; and

I = Indexation factor set out in the Cost Apportionment Schedule.

The Indexation factor uses a base year which determines the timing of the infrastructure cost estimate. Indexation shall be calculated at the relevant quarterly reporting interval to take into account inflation and other matters relevant to the capital cost of infrastructure. The difference from the base year to the time of the payment can then be determined as a factor to apply to the base year Infrastructure Contribution Rate.

5.2 Payment of the contributions

The liability of an Owner to pay cost contributions is outlined in clause 5A.2.15 of Local Planning Scheme 17. Payment of cost contributions shall be in accordance with Clause 5A.2.16.1 of LPS17 unless otherwise outlined in an Infrastructure Agreement or conditions of a development approval as described in Section 5.3. Payment by an Owner of the Cost Contribution, including a Cost Contribution based upon estimated Infrastructure Costs in a manner acceptable to the City, constitutes full and final discharge of the Owner’s liability under the DCP. This discharge is limited to the area of land subject to development and the quantum of Infrastructure Demand (i.e Cost Contribution Area) upon which calculations of Cost Contributions have been made. The City shall provide certification in writing to the Owner of such discharge, or partial discharge as the case maybe, upon request of the Owner.

5.3 Alternatives to Paying Cost Contributions

Council may in accordance with Clause 5A.2.16.1(d) consider alternatives to paying cost contributions including carrying out the capital works for which the cost contribution was determined, or dedication of land in exchange for a reduction in cost contributions. Council’s draft Pol-TP-138 provides additional guidance on alternatives to paying contributions. Where alternatives to paying contributions are agreed, the details shall be outlined in an Infrastructure Agreement or as conditions of a development approval.




5.4 GST

As at December 2010, the position of the Australian Taxation Office (ATO) is that payment of development contributions made under the Planning and Development Act 2005 is exempt from Goods & Services Tax (GST). Items in this Development Plan have been calculated excluding GST. If, for any reason the development contributions are not exempt from GST, the developer agrees to pay an amount equal to the GST that applies and the City of Swan agrees to issue a tax invoice for that amount.

6.0 Infrastructure Agreements At the discretion of Council an Infrastructure Agreement with the developer may be struck under the following situations and subject to the provisions as defined in Section 5.3 of this DCP Report:

• Infrastructure is being provided in lieu of a cost contribution; • Alternative Infrastructure is provided to meet the desired standards of service; • Infrastructure (unplanned) is provided and is not identified in the Development

Contribution Plan but deemed to have met the need of Infrastructure that was planned in the DCP;

• Value of Infrastructure being provided is in excess of a Cost Contribution, resulting in a potential reimbursement via a refund agreement or the holding of Cost Contribution credits for future development determined between Council and the developer; or

• Cost Contribution is made at a different time to that stated in the contributions condition and/or is proposed to be paid in instalments.

An Infrastructure Agreement will be in writing and prepared by the Council at the developer’s cost. (Refer to COS Pre-funding Agreement Template)

7.0 Register of Cost Contributions and Infrastructure Agreements Council will maintain a register of Cost Contributions and Infrastructure Agreements for public inspection. The register will contain the following:

• real property description of land to which the cost contribution or infrastructure agreement applies;

• development approval reference number; • the amount of the cost contribution levied; and • the amount of the cost contribution unpaid.







Annexure 1 – Development Contribution Area and Infrastructure Demand [Annexure 1 depicts the Development Contribution Area – Dayton (West Swan East), and assumptions to determine the Total Infrastructure Demand] DCA 2 – Dayton (West Swan East) Total Infrastructure Demand Table

Calculation of Gross Subdivisible Area (GSA)

Based on West Swan East DSP June 2010

Gross Subdivisible Area (GSA)

Deductions from Site Area in Hectares

Total Hectares

Site Area 256

Less

None Applicable 0

Total 0

Net site area 256

Deductions

Primary School (Public and Private) 7.80

Local / Neighbourhood Centre 2.00

Service / Commercial 7.00

Powerline / Infrastructure Corridor 8.00

Possible Sub-Station site 2.00

MRS Road Reserves 1.00

Total Deductions 28

Gross Subdivisible Area (GSA) 228

Note: Gross subdivisible area includes house lots, access roads, and any land incidental to the subdivision. The gross subdivisible area does not include areas for schools, shopping centres, infrastructure (e.g. land required for sewer pump stations), dedicated drainage sites not having a recreational function and land set aside for arterial roads and other non-residential uses.

Calculation of Cost Contribution Area (CCA)

Cost Contribution Area (CCA) Deductions from / Additions to GSA in

Hectares Total Hectares

Gross Subdivisible Area (GSA) 228

Less

Public Open Space Provision 40.59

Total 41

Additions

Local / Neighbourhood Centres 2.00

Service / Commercial 7.00

Total Additions 9

Cost Contribution Area (CCA) 196







Annexure 2 – Infrastructure Plans [Annexure 2 depicts the Infrastructure networks.]







Annexure 3 – Infrastructure Cost Schedules [Annexure 3 details each item of the planned future Infrastructure network and the estimated cost and timing of its provision.]







PART 3 - COST APPORTIONMENT SCHEDULE

1.0 Schedule of Cost Contribution Rates Cost Contribution rates outlined below are set at June 2010 values, and indexation of these rates shall be undertaken annually using the relevant quarterly reporting intervals of the ABS Consumer Price Index from that date (Refer to Section 2.0).

Infrastructure Network DCA 2 – June 2010 Contribution Rate ($/CCA ha)

Natural Gas $1,044 / CCA ha

Transport $198,560 / CCA ha

Land for Public Open Space and Community Facilities $184,976 / CCA ha

Local Community Infrastructure $73,200 / CCA ha

Sub Regional Community Infrastructure $17,980 / CCA ha

Subtotal $475,760 / CCA ha

Administration Charge $5,035 / CCA ha

Total $480,795/ CCA ha

2.0 Indexation

Indexation Rate Source

I = % Change in Index since June 2010

Australian Bureau of Statistics (ABS) Consumer Price Index - Catalogue 6401 Table 1 (Perth All Groups)

3.0 Total Apportioned DCP Infrastructure Costs

Network Total Apportioned DCP Infrastructure Costs

(Dayton (West Swan East) only)

Natural Gas $144,536

Transport $32,745,144

Land for Public Open Space and Community Facilities $29,631,420

Local Community Infrastructure $12,042,060

Sub Regional Community Infrastructure $3,359,340

Administration $887,928

Total $78,810,428

In determination of the Cost Contributions, a discounted cash flow methodology has been used. These costs reflect the current day (June 2010) value of the infrastructure without net present value calculations applied.




Documents

City of Swan June 2011 DEVELOPMENT CONTRIBUTIONS PLAN …€¦ · · 2011-07-07City of Swan June 2011 DEVELOPMENT CONTRIBUTIONS PLAN DCA 2 – Dayton (West Swan East)