REPORT TO MUNICIPAL WORKSHOP 31 OCTOBER 2013

Presentation by: Alwyn Laubscher Pr. Eng. Pr. CPM

PURPOSE OF THE PRESENTATION

• To explain the process previously followed at Swartland Municipality • To highlight the lessons learnt through applying the system

CONTENTS

• Introduction • Process to determine DC’s • Growth Model • Bulk Services • Implementation • Lessons Learnt • Questions

INTRODUCTION

•

It is the Government responsibility to pro-actively of plan Local growth and development of their town.

for

•

First it should determine the potential for growth, and then the required bulk services to serve such growth.

•

And to establish sources of funding for such services.

PROCESS TO DETERMINE DC’S

Need for Local Government to stimulate economic development Need to pro-actively plan for growth and development of City/Town Development of a long term Growth Model for the Area Compilation of master plans for bulk services to serve Growth Model

PROCESS TO DETERMINE DC’S

Calculate the cost of each of the bulk services Determine the contribution from each development opportunity to pay for bulk infrastructure Negotiate with Developer to provide bulk services in lieu of DC’s, where applicable Pay DC’s into a dedicated account (per service) to be used in future for the provision of bulk infrastructure

GROWTH MODEL

• Plan for estimated growth for different scenario’s (5; 10; 20 years) • Assumed zoning; land use; and densities • Brown Fields (densification) and Green Fields (new developments) • Compile Excel Model for easy manipulation of

What If

questions

GROWTH MODEL - MALMESBURY 20 JAAR

GROWTH MODEL - 20 YEAR

BULK ROAD NETWORK

BULK ROAD NETWORK

WATER NETWORK NETWERK

SEWERAGE NETWORK

BULK WATER & SEWERAGE PLANNING

STORMWATER NETWORK

STORMWATER

Ondersoek

(Aanvaarding R30 000 per 500m lengte van rivier)

Vloedlynstudie

(Aanvaarding R15 000 per 100m rivier)

EIA

(Aanvaarding R500 000)

Opgradering/Rehabilitering

(Aanvaarding gebaseer op vorige projekte)

Sub totaal Onvoorsiene Uitgawes BTW (14%) Totaal

R 1,020,000 R 1,500,000 R 500,000 R50,000,000 R53,020,000 R 5,302,000 R 8,165,080 R66,487,080

ELECTRICITY

DESCRIPTION DENSITY OR COVER AGE ADMD kVA AT 132/11 kV SUBSTATION LEVEL RATE PER kVA FOR 132/11 kV SUB STATION “GREEN FIELDS” CONTRI BUTION ADD “BROWN FIELDS” PRIMARY AND SECONDARY 11 Kv INFRA STRUCTURE R2 526-32 per unit TOTAL RATE FOR BULK ELECTRICITY CONTRIBUTIONS (VAT EXCLUDED) Low Density 4 u/ha 4 kVA per unit R1 405-00 R5 620-00 R8 146-32 per unit Single Residential 15 u/ha 3 kVA per unit R1 405-00 R4 215-00 R2 526-32 per unit R6 741-32 per unit Medium Density Residential High Density Residential Affordable Housing Subsidised 20 –25 u/ha 30 –60 u/ha 30 –40 u/ha 30 –40 u/ha 2.5 kVA per unit 2.5 kVA per unit 1.5 kVA per unit 1.0 kVA per unit R1 405-00 R1 405-00 R1 405-00 R1 405-00 R3 512-50 R3 512-50 R2 107-50 R1 405-00 R2 526-32 per unit R2 526-32 per unit R1 263-16 per unit R0-00 per unit R6 038-82 per unit R6 038-82 per unit R3 370-66 per unit R1 405-00 per unit Industrial and Commercial Varies On Application R351-25 R1 405-00 R157-90 per kVA R509-15 per kVA of Applied for Maximum Demand

Co-incidence factor of 25% used between Non-Residential and Residential peak loads Direct connection costs such as mini-substations, metering, 11 kV secondary cables etc., excluded Credit will be given for 11 kV secondary cables installed on Municipality’s behalf and in accordance with the Electricity Master Plan

Land Use

WASTE WATER TREATMENT WORKS

UWD* m³/unit/day m³/ha/day % of UWD*** USF* m³/unit/day m³/ha/day Res Low Density 1.0

55 0.55

Res Single Res Medium Density Res High Density Res Subsidy Housing Industrial 0.7

0.6

0.5

0.3

20.0

Commercial Retail 20.0

Commercial Offices 15.0

WWTW = R94m for 10 000m ³/day (10/12/2007) Upgrade adds 4 600 m³/day 60 60 65 70 60 60 60 0.42

0.36

0.325

0.21

12 12 9 Total Capital for refurbishment of existing WWTW = R30m Total Cost for 4 600m³/day = R94m – R30m = R64m Unit Cost = R64m/4 600m³/day = R13 894.57/m³/day UWD*= Unit Water Demand/ USF**-Unit Sewer Flow/% of UWD***-UH + 5% (infiltration)

SOCIAL INFRASTRUCTURE

Principles: • Responsible Planning • Everybody must contribute • Based on land value

• • • • • • Liaise with Developers Approve as Council Policy Advertise with Tariffs Training of officials Guideline external) document (internal Implementation across the board and

QUESTIONS

REPORT TO MUNICIPAL WORKSHOP 31 OCTOBER 2013

Presentation by Alwyn Laubscher Pr. Eng. Pr. CPM

PURPOSE OF THE PRESENTATION

• To share the considered key elements of such a policy • To highlight the alignment between SDF; IDP; MTREF; and DC’s

LESSONS LEARNT - LEGISLATION

• LUPO provides for charging clear in its definitions DC’s but is not very • • • …

include conditions in relation to the cession of land or the payment of money which is directly related to the requirements resulting from the said authorisation, exemption, application or appeal in respect of the provision of necessary services or amenities to the land concerned.

This lead charged to court cases around the quantum Electricity has less of a problem - legislation allows them to charge DC’s as a tariff It is therefore important how LUPA will deal with DC’s

• • • • •

LESSONS LEARNT - FINANCIAL

Plan

for growth of Town and see an additional source of revenue DC’s as This is not just planning exercise another Do not hand it over to Treasury tax it is a Quantum and When it is payable must be known upfront by Developers - certainty Follow proper process of collecting big numbers at stake DC’s –

LESSONS LEARNT - ECONOMY

• • • • Be aware not to scare investors away - you are in the business of selling your town and draw investors Approach DC’s as a partnership with Private Sector Mitigate impact on job creation through subsidies – DC’s on Commercial and Industrial developments are high.

LUPO requires regard to

the various rates and levies paid in the past or to be paid in the future by the owner of the land concerned - WWTW

• • • •

KEY ELEMENTS OF DC POLICY

Must find a balance between need to stimulate economy and job creation; and funding the growth of the town Private Sector is running huge risks with low margins need support and certainty (look at number of entities that left development) Beware of line departments treating cow DC’s as a cash – delivery of service for which money was collected must take place Proper system and policy is required for administration big amounts at stake

• • • • • • •

ALIGNMENT BETWEEN SDF; IDP; MTREF; & DC’S

Planning for the future is responsible management In terms of the IDP it is a legal requirement In terms of MFMA a Medium Term Revenue and Expenditure Framework (MTREF) is a requirement Determination of your Spatial Development Framework is the starting point for compiling a Growth Model Engineers need to plan ahead for all bulk services (part of IDP): they can only do so if they have a Growth Model Planning by the Engineers must be budgeted for – back to MTREF MTREF relies on various sources of income - i.e.

DC’s

QUESTIONS