SUPPLEMENTARY
BUSINESS PAPER
General Meeting
Wednesday 10 November 2021
at 6:30PM
SUPPLEMENTARY
BUSINESS PAPER
General Meeting
Wednesday 10 November 2021
at 6:30PM
Hornsby Shire Council Table of Contents
Page 0
SUPPLEMENTARY ITEMS
Item 8 LM10/21 Exhibition of Peat Island Planning Proposal.................................................... 1
Item 13 PC22/21 Exhibition of Infrastructure Contributions Reform Package............................. 27
Planning and Compliance Division
Date of Meeting: 10/11/2021
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ITEM 8 |
PC17/21 - Exhibition of the Peat Island Planning Proposal |
Additional information with CHANGE to Recommendation
Following the briefing, Councillors suggested that in addition to matters identified in the draft submission attached to PC17/21, further issues concerning design excellence and sustainability should be raised in Council’s submission. Additional comments with respect to the marina carpark and active transport have also been included in the attached submission in response to Councillor feedback.
Design Excellence
Given the unique scenic values of area, future development in the precinct should be designed and constructed to be sympathetic to the natural area. Although a site specific DCP has been included with the exhibition documents, the DCP controls could be strengthened to include design excellence criteria including appropriate controls for design, materials and finishes for development to be integrated into the natural landscape and appropriate for the heritage context. Further, LEP provisions should be considered to ensure development applications are required to address design excellence criteria and demonstrate appropriate built form outcomes.
Recommendation:
It is recommended that Council’s submission raise concern that the Planning Proposal does not address design excellence principles. Council’s submission should request the planning proposal include details, whether though LEP clauses or DCP controls, to ensure future development within the precinct exhibits design excellence.
The Central Coast Local Strategic Planning Statement and the Central Coast Community Strategic Plan outline objectives and strategies to achieve ‘land use planning and development that is sustainable and environmentally sound’ and to ‘create a sustainable region’. The proposal only generally addresses these strategic measures by presenting adaptive re-use of historical buildings and sympathetic in-fill as appropriate solution. Although the Planning Proposal document prepared by Urbis, dated 23 August 2021, makes several references throughout to ‘sustainability’ and ‘sustainable development’, no details of the measures to achieve sustainable development within the precinct are provided.
The Peat Island Planning Proposal provides an excellent opportunity to provide a sustainable carbon neutral precinct. Further details should be submitted as part of the planning proposal to detail sustainability measures and planning controls to be implemented and address options for the creation a net zero precinct.
Recommendation:
It is recommended that Council’s submission raise concern that the planning proposal does not address sustainability principles and request that the proposal address options for the creation of a net zero carbon precinct.
Marina Carpark
It is understood that a 100-space carpark is proposed in the RE2 Private Recreation zoned area of the subject site. Concern is raised that this amount of parking would not cater for the demand generated by the development, including visitors accessing the parklands and foreshore. Council’s experiences in areas such as Brooklyn and Berowra Waters indicate that a significantly greater quantity of car parking would be required, especially on weekends.
Recommendation:
It is recommended that Council’s submission raise concern that the 100-space carpark would not be suitable to cater for the demand generated by the development.
Active Transport
It is essential that a clear pedestrian and cycle connection be provided between the proposed development and Brooklyn town centre.
Recommendation:
It is recommended that Council’s submission reiterate the request for a clear pedestrian and cycle path from the Proposal site to the Brooklyn Town Centre.
The attached submission has been updated to include the additional matter raised by Councillors. It is recommended that Council endorse the submission attached to this Late Item Information Memo Report for forwarding to Central Coast Council, to advocate for amendments to the Planning Proposal.
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THAT the submission regarding the Peat Island Planning Proposal attached to Late Item Information Memo No. LM10/21 be forwarded to Central Coast Council to advocate for amendments to the Planning Proposal and further detailed analysis of issues including potential impacts on Brooklyn. |
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Katherine Vickery Manager - Strategic Landuse Planning Planning and Compliance Division |
James Farrington Director - Planning and Compliance Planning and Compliance Division |
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1.⇩ |
Submission - Peat Island Mooney Mooney Planning Proposal - Public Exhibition - Late Memo Copy |
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2.⇩ |
Peat Island Mooney Mooney Planning Proposal - Indicative Concept Plan |
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File Reference: F2021/00030
Document Number: D08286666
Director's Report No. PC22/21
Planning and Compliance Division
Date of Meeting: 10/11/2021
13 EXHIBITION OF INFRASTRUCTURE CONTRIBUTIONS REFORM PACKAGE
EXECUTIVE SUMMARY
· In June 2021, the Bill to progress reforms to the infrastructure contributions system (the Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill 2021) was referred for an Upper House Committee inquiry.
· At its meeting on 14 July 2021, Council resolved to make a submission to the Inquiry raising concerns about the potential adverse financial impacts of the proposed Bill for Hornsby Shire.
· In response to the Parliamentary Inquiry and advocacy by councils, amendments and further information including directions and draft regulations are being exhibited as part of a Contributions Reform package. The Independent Pricing and Regulatory Tribunal (IPART) has also released a draft report on the review of the essential works list and standardised benchmark infrastructure costs.
· DPIE has advised that there will be two stages of feedback and advice that can be submitted, including a technical submission from Council staff due by 10 December 2021 and a Council endorsed submission due one week after the first meeting of new councils in early 2022.
· Council officers are currently reviewing the large volume of material on exhibition, the implications for Hornsby Shire and how the material addresses the issues raised in Council’s previous submission. Council is also working with the Northern Sydney Region Organisation of Councils (NSROC) to refine the modelling recently undertaken to determine the financial implications of the amended proposal.
· It is recommended that the General Manager be delegated authority to make technical submissions on the DPIE Infrastructure Reform package and on the IPART draft report currently on exhibition. The new Council would be briefed, and a formal position sought at the first meeting of the new Council in 2022.
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THAT the General Manager be delegated authority to make submissions on the Department of Planning, Infrastructure and Environment’s Infrastructure Reform Package and the draft report from the Independent Pricing and Regulatory Tribunal, which are currently on exhibition. |
PURPOSE
The purpose of this Report is to seek Council endorsement to make a submission on the Infrastructure Contributions Reforms currently on public exhibition.
BACKGROUND
In 2020, the NSW Productivity Commission undertook a holistic review of the Local Contributions System in NSW. The final report on the review was released in November 2020, with a package of reforms which impact on local councils’ capacity to fund local infrastructure and collect contributions.
The Commission noted that NSW will face a constrained budgetary position as the recovery from the COVID-19 pandemic progresses, asset recycling winds down, and pressures from a growing and ageing population increase. All levels of government will need to reconcile the need for fiscal repair with increasing demands for infrastructure.
In March 2021, the NSW Government confirmed it had accepted all 29 recommendations of the final report. To progress the reforms to the infrastructure contributions system, the Government introduced the Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill 2021 to Parliament on 22 June 2021. However, due to extensive concerns raised about the impacts of the Bill, it was separated from the other State budget bills and referred to an Upper House Committee for further inquiry.
At its meeting on 14 July 2021, Council considered Director’s Report No. PC14/21 concerning the implications of the proposed Infrastructure Contributions Bill for Hornsby Shire and resolved that:
1. Council make a submission to the Parliamentary Inquiry into the Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill 2021 in accordance with the contents of Director’s Report No. PC14/21 and raising matters including the following:
a) The reforms appear to be inconsistent with Government objectives for jobs creation by reducing the capacity for Council to fund the delivery of community infrastructure with associated construction jobs.
b) The issue of rate reform should be uncoupled from the review of development contributions to ensure the cost of providing new facilities to meet the needs of a growing population is not shifted to the existing community.
c) Implementation of the recommendations will potentially have far reaching financial implications for councils and communities requiring further detailed modelling by the State Government at the individual council level.
d) Clarification is required concerning the definition of “development contingent infrastructure” and what infrastructure will be retained on the Essential Works List.
e) Recognising that Section 7.12 levies for alterations and additions to residential dwellings in infill areas is an appropriate method of funding the provision of community infrastructure.
f) The point at which payment of developer contributions is made should be maintained at the submission of construction certificates.
2. The General Manager be delegated to carry out further actions to support raising the matter with the State Government during the caretaker period for the upcoming local government elections.
3. A copy of Council’s submission be forwarded to local State Members of Parliament and be made publicly available.
In accordance with Council’s resolution, a submission was made to the Parliamentary Inquiry and a copy sent to local State Members of Parliament.
On 10 August 2021, the Committee overseeing the Inquiry made a single recommendation that the Bill not proceed until the associated draft regulations have been developed and released for consultation and the reviews into the rate pegging system, benchmarking and the essential works list have been published by the Independent Pricing and Regulatory Tribunal. The recommendation of the Inquiry was generally consistent with Council’s submission that, although some aspects of the reforms may have merit, further detail was required to determine an informed position about the extent of the implications of the changes.
In response to the recommendation, a suite of documents has been released by the State Government for community consultation.
DISCUSSION
In response to the Parliamentary Inquiry and advocacy by individual councils, Local Government NSW (LGNSW) and NSROC, changes have been made with endorsement from the Productivity Commission, including:
· Deferral of the application of an essential works list for Section 7.11 contributions plans for 3 years.
· Differential Section 7.12 rates to apply based on geographical boundaries.
· Section 7.12 contributions will apply to residential and non-residential alterations and additions with separate rates proposed.
· Section 7.12 rates to be levied based on beds or rooms for uses such as boarding houses, group homes, motels, residential care facilities and the like.
· Regional Infrastructure Contribution Rates for regions outside Greater Sydney adjusted.
On 28 October 2021, DPIE released the Infrastructure Contributions Reform package for public exhibition. On 29 October 2021, IPART released a draft report on the review of the essential works list and benchmark infrastructure costs. This report provides an outline of the information currently on exhibition. However, a detailed evaluation of the material is ongoing and has not been completed by Council officers.
1. DPIE Exhibition Documents
There is a large volume of material currently on exhibition, split into 3 main parts.
Regional Infrastructure Contributions (RIC)
The new RIC framework seeks to create a regional infrastructure contributions system across Council boundaries. The material on exhibition for the new framework includes:
· Discussion Paper.
· Explanation of Intended Effects.
· Infrastructure Delivery Agreements.
· Investment Prioritisation Guidelines.
· Guidelines for State Planning Agreements.
· Contributions Reform - Feasibility Analysis.
In summary, the framework for regional contributions includes the following:
· Introduction of a RIC that would apply a broad-based State contribution system to 4 regions within NSW to meet the cost of regional infrastructure provided by the State Government, such as major roads, schools and regional parklands.
· A proposed State Environmental Planning Policy (Regional Infrastructure Contributions) 2021 will identify 4 regions of NSW – Greater Sydney, Lower Hunter, Illawarra-Shoalhaven and Central Coast – where regional infrastructure contributions will be payable.
· The RIC will be determined by the property type and the region in which the development in proposed. Hornsby is located within the Greater Sydney Region and proposed rates include $12,000 for dwellings and $30 per m2 for new commercial or retail development. This contribution would be in addition to any local development contribution increasing development costs.
· Contributions will be made to the RIC Fund, which will provide funding to State agencies through the budget process to plan and deliver infrastructure in the regions where contributions revenue is collected. The approach to expenditure is inconsistent with Council’s submission that funding should be spent within the District in which it is collected.
· Local councils will be required to formally nominate regional infrastructure projects for RIC funding including the case for change, project benefits, economic justification, value for money and alignment to the RIC Funding objectives. This process raises concerns as it is understood that Treasury will be responsible for considering the allocation of funds. However, projects should be progressed on the basis of nexus to development.
Local Contributions
The proposed changes to local infrastructure contributions on exhibition include:
· Practice Note Review Policy Paper and 9 practice note modules.
· Land Value Contributions Exhibition Paper (to require owners benefitting from land that is rezoned for development to contribute towards the provision of land for local infrastructure when the land is either sold or developed).
· Amendments to the Environmental Planning and Assessment Regulation to implement the changes.
In summary, the framework for local contributions includes the following:
· Require contributions plans approved before 1 July 2022 to be reviewed and re-made prior to 1 July 2024 but councils may apply for an extension to the 1 July 2024 deadline.
· Section 7.11 of the Act has been redrafted but operates in a similar way to how it does now. Section 7.11 contributions have been renamed ‘local infrastructure conditions”.
· Section 7.12 has been renamed “levy condition rates” for named development types by area (generally based on Greater Sydney region boundaries).
· The amendments in the Bill will allow local levy conditions to be set more broadly than a percentage of development cost. Under the new system, the regulations will specify a per dwelling basis for residential development and a per square metre basis for non-residential development.
· Hornsby Shire is located within the Greater Sydney East and proposed rates include $15,000 for dwellings (including knock down/rebuild) and $50 per m2 for new commercial development. Alteration and additions including an extra bedroom would attract a contribution of $6,000 per bedroom. This is likely to raise uncertainty in the assessment process to determining where an additional room constitutes a bedroom.
· Include requirements about the manner and timing of exhibition of draft planning agreements on the NSW planning portal.
· Require councils to keep and make public an affordable housing contribution register and report expenditure of affordable housing contributions by project in their annual reports.
· Exclude specified development from local infrastructure contributions including, affordable housing or seniors housing carried out by or on behalf of a social housing provider, Crown development for the purposes of schools, health services facilities, emergency services facilities, public administration buildings. This is generally consistent with the exemptions in Council’s existing contributions plans.
Land Use Planning
The proposed changes to land use planning on exhibition include the way land use contributions are made and involve:
· Directions that Contribution Plans are to be prepared upfront (when needed) and exhibited at the same time as the rezoning proposal; and
· Directions about opportunities for dual use and shared use of open space. This includes considering measures to share use of publicly owned land and facilities to enable more than one public amenity or public service (whether local or State) to be provided on that land or in that facility.
DPIE has advised that there will be two stages of feedback and advice that can be submitted.
A six-week consultation period from the start of the exhibition with technical submissions from council staff due at the end of this period (due by 10 December 2021).
Council endorsed submissions due one week after the first meeting of the new Councils in early 2022.
2. IPART Exhibition Documents
The Independent Pricing and Regulator Tribunal (IPART) is developing a standardised set of benchmark costs and advice on efficient design. Councils will need to use these benchmarked costs unless a specific efficient cost estimate has been prepared or actual costs based on efficient design are determined following construction. The draft report released by IPART includes the essential works list (EWL) and standardised benchmark costs.
Of note, the terms of reference for the IPART review specify that the EWL must not expand beyond the current parameters and community facilities works must not be included. However, councils including Hornsby, have previously submitted that community facilities are essential for their communities and that excluding these capital costs from the EWL may mean they cannot afford them from rates revenue.
A public hearing is anticipated in November 2021 and submissions on the draft report close on 26 November 2021.
3. Review and Submission
Council officers are currently reviewing the large volume of material on exhibition, the implications for Hornsby Shire and how the material compares to the issues raised in the previous submission. Council is also working with NSROC to refine the modelling recently undertaken and review the financial implications of the amended proposal.
As discussed above, technical submissions from Council staff are due on 10 December, with a further opportunity for new Councils to be briefed after the election and a second stage of submissions prepared.
It is recommended that the General Manager be delegated authority to make technical submissions on the DPIE Infrastructure Reform package and IPART draft report which are currently on exhibition. The new Council would be briefed, and a formal position sought at the first meeting of the new Council in 2022.
BUDGET
There are no budgetary implications associated with this Report.
POLICY
Should the proposed changes for the preparation of Development Contributions Plans, reporting and monitoring be implemented in legislation, they would be required to be implemented by Council and appropriate resources allocated in future budgets and operational plans.
CONCLUSION
Council has advocated in support for reform of the development contribution system in NSW for many years with the aim of reducing complexity, improving transparency and equity and releasing the financial burden placed on councils to provide local infrastructure to support population growth.
It is pleasing that changes appear to have been made in response to extensive advocacy by Councils and industry groups. However, there is a large volume of material on exhibition which Council staff are still reviewing. It is recommended that the General Manager be delegated authority to make technical submissions on the DPIE Infrastructure Reform package and IPART draft report which are currently on exhibition.
RESPONSIBLE OFFICER
The officers responsible for the preparation of this Report are James Farrington, Director Planning and Compliance and Katherine Vickery, Manager Strategic Landuse Planning. Mr Farrington can be contacted on 9847 6750.
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Katherine Vickery Manager - Strategic Landuse Planning Planning and Compliance Division |
James Farrington Director - Planning and Compliance Planning and Compliance Division |
There are no attachments for this report.
File Reference: F2010/00015-04
