2017-09-12 Planning & Environment Committee Agenda

PLANNING & ENVIRONMENT COMMITTEE MEETING AGENDA                               12 SEPTEMBER 2017


REPORT
This report presents the staff review of the remaining requirements to complete the Schedule of
Works (SOW) model for the LGIP in relation to:
1.   Determining the establishment costs of existing trunk infrastructure items including uniform
     land costs for determining the existing and future parkland values;
2.   Minor amendment to the Schedule of Works (SOW) future items for the Public Parks &
     Land for Community Facilities Network previously approved on 18 May 2017; and
3.   Infrastructure Network Demands for the Stormwater, Transport and Public Parks & Land for
     Community Facilities networks service catchments.


1.   Establishment Costs
In accordance with the legislation, ‘establishment cost’ of trunk infrastructure means the
following:
   for existing infrastructure:
       i.    the value of infrastructure is the current replacement cost as reflected in the relevant
             local government’s asset register; and
       ii.   the current value of the land acquired for the infrastructure;
   for future infrastructure - all costs of land acquisition, financing costs and design and
     construction, for the infrastructure.
The existing and future trunk infrastructure network maps and base costs for the future trunk
infrastructure items have previously been reported and approved by Council on 18 May and 20
July 2017.
For determining the existing trunk infrastructure components and costs for use in the SOW
model, staff have utilised the following methodology:
   The individual existing trunk infrastructure components for each network’s Plans for Trunk
     Infrastructure (PFTI) have been extracted using Council’s GIS system; and
   These itemised details have then been linked to Council’s Financial Asset Register to
     extract the respective replacement costs at the LGIP base date where available.
For determining land costs, Council’s Financial Asset Register does not contain sufficient or
consistent information to enable all costs of land to be determined.
Therefore, an alternative method is proposed in accordance with the Statutory Guideline 03/14
and Appendix C “SOW User Manual” that allows use of a simplified “broad brush” approach to be
used. The SOW model provides three options for the input of the average acquisition cost per
square metre of land ($/m2) as follows:
   an average land cost for the entire local government area (option 1);
   land cost by location (e.g. suburbs or catchments) within the local government area (option
     2); and
   land cost as defined by the local government (e.g. land use zoning or physical constraints
     such as flooding) (option 3).
In 2012, the Sunshine Coast Regional Council (which at that time included the Noosa area)
engaged CBRE Valuations Pty Limited to undertake generic land valuations across the whole
region by Divisions, Locality and Land Use categories for the purpose of developing a PIP for a
new Sunshine Coast Planning Scheme. The generic land valuations is provided in Attachment
1 where the unit rate for parkland greater than 5,000m2 in the Northern Division relating to all
localities of the Noosa Plan = $40/m2 at February 2012.

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