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Development Servicing Plan 2017
Oran Park and Turner Road
Recycled Water System
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 1
Table of Contents
Executive Summary ........................................................................................................... 3
Oran Park & Turner Road recycled water system developer charge ......................................... 3
1 Development Servicing Plan methodology ................................................................ 5
1.1 Introduction .............................................................................................................................. 5
1.1.1 Developer charges and Development Servicing Plans ..................................................... 5
1.1.2 Regulation of developer charges ....................................................................................... 5
1.1.3 Payment of a recycled water developer charge ................................................................ 5
1.1.4 Dispute resolution .............................................................................................................. 6
1.1.5 Disclaimer .......................................................................................................................... 6
1.2 Regulation - principles and calculation method .................................................................. 6
1.2.1 Principles of the regulation ................................................................................................ 6
1.2.2 The 2006 Determination .................................................................................................... 6
1.2.3 Preparation of DSPs .......................................................................................................... 8
1.2.4 Consultation and review of the DSP and developer charges ............................................ 8
1.3 Forecasting urban development rates .................................................................................. 8
1.3.1 Existing development ........................................................................................................ 8
1.3.2 Forecasting residential development ................................................................................. 8
1.3.3 Forecasting non-residential development ......................................................................... 9
1.4 Forecasting system demand .................................................................................................. 9
1.4.1 Forecasting system demand ............................................................................................. 9
1.4.2 Defining an Equivalent Tenement ..................................................................................... 9
1.5 Determining relevant assets .................................................................................................. 9
1.5.1 Existing assets ................................................................................................................... 9
1.5.2 Future assets ...................................................................................................................10
1.5.3 Standards of service ........................................................................................................10
1.6 Asset valuation ......................................................................................................................10
1.6.1 Valuation of existing assets .............................................................................................10
1.6.2 Valuation of future assets ................................................................................................10
1.7 Operating result .....................................................................................................................11
1.7.1 Revenue ..........................................................................................................................11
1.7.2 Operating and maintenance costs ...................................................................................11
1.8 Cost offsets (avoided costs) ................................................................................................11
2 Oran Park & Turner Road Recycled Water Scheme ................................................. 13
2.1 Oran Park & Turner Road Recycled Water DSP .................................................................13
2.1.1 History of the Oran Park and Turner Road recycled water supply scheme ....................13
2.1.2 Boundaries ......................................................................................................................14
2.1.3 Recycled water infrastructure ..........................................................................................14
2.2 Development rates and demand rates ................................................................................15
2.3 Assets .....................................................................................................................................19
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 2
2.3.1 Existing assets .................................................................................................................19
2.3.2 Future assets ...................................................................................................................19
2.4 Plan of the network system ..................................................................................................24
3 Developer charge calculation .................................................................................... 25
3.1 Key assumptions and inputs ...............................................................................................25
3.2 Developer charge ..................................................................................................................30
Figures
Figure 2-1 - Recycled water infrastructure ......................................................................................... 24
Tables
Table 0-1 – Proposed developer charges for different development types ......................................... 4
Table 2-1 - Description of Oran Park and Turner Road Recycled Water DSP Area ......................... 14
Table 2-2 - Development rates – Oran Park and Turner Road Recycled Water System .................. 15
Table 2-3 - Demand rates (average ET) – Oran Park & Turner Rd Recycled Water System ........... 17
Table 2-4 - Recycled water gravity pipelines ..................................................................................... 20
Table 2-5 - Recycled water pressure pipelines .................................................................................. 22
Table 2-6 - Recycled water treatment plant works ............................................................................. 23
Table 2-7 - Recycled water pumping stations .................................................................................... 23
Table 2-8 - Recycled water reservoirs................................................................................................ 23
Table 3-1 - Inputs to the developer charge calculation model ........................................................... 25
Table 3-2 - Annual capital expenditure............................................................................................... 26
Table 3-3 - Capital charge .................................................................................................................. 27
Table 3-4 - Forecast revenue ............................................................................................................. 28
Table 3-5 - Net operating result .......................................................................................................... 29
Table 3-6 - Net Operating Result ....................................................................................................... 30
Table 3-7 - Components of the developer charge .............................................................................. 30
Table 3-8 - Schedule of proposed developer charges ....................................................................... 31
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 3
Executive Summary
Oran Park & Turner Road recycled water system developer charge
This draft Development Servicing Plan (DSP) is for recycled water developer charges in the
Oran Park and Turner Road recycled water supply scheme service area. It has been
prepared in accordance with the Independent Pricing and Regulatory Tribunal’s (IPART)
Recycled Water Developer Charges, Determination No 8, 2006 (the 2006 Determination).
In previous DSPs, Sydney Water levied non-residential developer charges based on the
area of the development. In 2008, Sydney Water changed this approach to offer
developers the option of having developer charges calculated on the basis of projected
flows for non-residential development.
In this draft DSP, the charges for non-residential and multi-residential development will be
determined on a flows basis. A single residential dwelling will be charged as one Equivalent
Tenement (ET) in line with the 2006 Determination.
Using the methodology in the 2006 Determination, the developer charge for the Oran Park
and Turner Road recycled water system is $17,018 ($2016–17) dollars per ET. However,
Sydney Water does not believe that this rate supports the supply of new, affordable homes
in south west Sydney, as it is not a reasonable equivalent to the lowest cost to the
community to meet BASIX. In accordance with section 18(2) of the Independent Pricing
and Regulatory Tribunal Act 1992 (the IPART Act), the NSW Treasurer approved Sydney
Water to set a price below the maximum price calculated using the 2006 Determination.
Sydney Water proposes set the developer charge for the Oran Park and Turner Road
recycled water system at $7,205 in 2016-17 dollars per ET. This is considered to be
equivalent to the provision of a rainwater tank to meet BASIX. Table 0-1 below provides the
proposed developer charge for different development types including multi-unit residential
and non-residential development.
Once the DSP is registered, Sydney Water will apply the Colebee Recycled Water
Developer Charge to all developments that connect to this system.
Written submissions in response to this draft DSP must be provided to Sydney Water by
5 pm Friday 9 June 2017 to:
Email: [email protected] or
Post: Oran Park & Turner Road Developer Charge
Kate Wild, Senior Analyst
Sydney Water
PO Box 399
Parramatta NSW 2124
In finalising the DSP, Sydney Water will consider all public submissions received in
response to this draft. Sydney Water will then forward the finalised DSP to IPART for
registration. The final charge will be subject to an annual adjustment in line with
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 4
movements in the Consumer Price Index. The quantum of each adjustment is determined
by IPART. The first adjustment will take effect from 1 July 2017
Table 0-1 – Proposed developer charges for different development types
Proposed Capped Developer Charge ($ 2016-17)
Development Density Charge
$/dwelling
Residential
(dwellings per pure net hectare1)
0 – 20 $7,205
21 – 35 $5,476
36 – 50 $3,674
51 – 65 $3,027
66 – 81 $2,593
82 – 95 $2,450
96 – 125 $2,161
126 – 155 $1,945
> 155 $1,585
Non-Residential $7,205 /ET based on assessed flows
1 The per pure net hectare is the actual size of a development site taking into account land use considerations
such as:
• Battleaxe handle where the handle forms part of the allotment (excluded if it is a right of way)
• Car parking and landscaping
• Dedicated public reserve areas are generally excluded. However, unless recycled water services are required for irrigation or amenities block etc then it is charged on a flow basis
• Drainage easements are excluded on the basis that the land is sterile. If piped, and land is usable, then it is included in the area calculation
• Environmentally constrained land (flood prone/land slip/foreshore protection/heritage/riparian zones) is excluded unless development is permitted (such as a dwelling), in which case it may be appropriate to include the building envelope area
• Land affected by transmission line easements is generally excluded unless the land has the ability to draw a recycled water demand (eg irrigation for landscaping, wash down for trucks etc)
• Generally excludes public open space and roads etc.
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 5
1 Development Servicing Plan methodology
Part 1 of this draft Development Servicing Plan (DSP) outlines the regulation of developer
charges and explains the way in which charges are calculated.
1.1 Introduction
1.1.1 Developer charges and Development Servicing Plans
The Sydney Water Act 1994 (the Act) allows the Sydney Water Corporation (Sydney
Water) to levy charges on developments that will make use of the services it provides.
These developer charges are a means by which Sydney Water can recover the cost of
providing infrastructure to service urban development. The information used to calculate
developer charges is set out in this draft DSP.
Sydney Water levies developer charges for recycled water services in accordance with the
Independent Pricing and Regulatory Tribunal of NSW’s (IPART) Recycled Water Developer
Charges, Determination No. 8, 2006 (the 2006 Determination).
1.1.2 Regulation of developer charges
IPART is an independent authority that regulates the pricing of declared government
monopoly services. This includes setting prices for water, wastewater and stormwater
services.
IPART’s Determination 2006 specifies the methodology to be applied by Sydney Water
when preparing the recycled water developer charge. For the purposes of a full and
transparent preparation of the Oran Park and Turner Road recycled water developer
charge, Sydney Water has prepared this document in accordance with the 2006
Determination.
A maximum price will be calculated using the 2006 Determination. In accordance with
section 18(2) of the IPART Act, Sydney Water obtained approval from the NSW Treasurer
to set a price below the maximum price.
While IPART does not set the recycled usage charges for the Oran Park and Turner Road
scheme, it has endorsed that our prices are reasonable. The recycled water usage charge
and the drinking water charge used in this review are those contained in the Sydney Water
Corporation - Maximum prices for water, sewerage, stormwater drainage and other
services from 1 July 2016, Determination No. 5, 2016, (the 2016 Determination). There is
no recycled water service charge for the Oran Park and Turner Road scheme.
1.1.3 Payment of a recycled water developer charge
As a condition of development consent, the consent authority (usually council) requires a
developer to make satisfactory arrangements with Sydney Water for the provision of water
services to a new development. To identify the necessary arrangements, a developer must
submit an application for a Section 73 Compliance Certificate to Sydney Water.
Upon receiving the application for a Compliance Certificate, Sydney Water investigates the
impact of the proposed development on its systems. Sydney Water then issues a Notice of
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Requirements under s74 of the Act. This sets out the conditions that must be met before
Sydney Water will issue a Section 73 Compliance Certificate. For areas with recycled water
services, the Notice of Requirements will include the developer charges payable and/or
works that a developer must construct before the services are made available.
1.1.4 Dispute resolution
The dispute process is set out in section 31 of the IPART Act. (Note, the regulation may
exclude some determinations from this process).
A developer who is dissatisfied with Sydney Water’s application of IPART’s determination
methodology may lodge a complaint with us. If a developer is still dissatisfied with the
outcome of the review, a request to have the matter reviewed by way of arbitration can be
made. An arbitrator is to be appointed by agreement between the developer and Sydney
Water and the costs of the arbitration are to be borne equally.
1.1.5 Disclaimer
This draft DSP and the developer charge it contains has been prepared by Sydney Water
to meet the requirements of the 2006 Determination using the latest available information.
1.2 Regulation - principles and calculation method
1.2.1 Principles of the regulation
In the 2006 Determination, IPART set a methodology for fixing the maximum price of
recycled water developer charges. The principles underlying the methodology are that
developer charges should:
• enable the full recovery of relevant costs
• reflect variations in the costs of servicing different developments
• result in new development areas meeting the costs of constructing the services provided
• cover only infrastructure expenditures on recycled water assets that can be clearly
linked to development.
In order to support development in south west Sydney, Sydney Water will seek approval
from the NSW Treasurer to set a price below that determined using the 2006
Determination, in accordance with s18(2) of the IPART Act.
1.2.2 The 2006 Determination
The 2006 Determination requires developer charges to be calculated for one Equivalent
Tenement (ET) of development by applying Net Present Value (NPV) principles. IPART
defines an ET as the recycled water consumption of an average residential dwelling.
Sydney Water has taken this definition to mean the average water consumption by a
freestanding or semi-detached residential property.
A developer charge is calculated by:
• taking the present value of the capital costs of the assets used to service the DSP area
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 7
• deducting the present value of the future net operating result expected to be incurred by
providing the services to the DSP area
• deducting the present value of the cost offsets associated with the recycled water
scheme
• dividing by the present value of the number of the benefiting ETs in the DSP area.
IPART’s formula for calculating developer charges is shown below.
RWDC =
2....n 1, years ifor 21
L
COiPV
L
CiRiNPV
L
K
L
K
Where:
RWDC - Recycled Water Developer Charge per Equivalent Tenement
K1 - Capital Charge for Pre 2007 Assets which will serve the DSP Area
calculated on a NPV basis discounted at rate r
K2 - Capital Charge for Post 2007 Commissioned Assets and/or Post 2007
Uncommissioned Assets which will serve the DSP Area calculated on an
NPV basis discounted at rate r
L - the Present Value of the number of Equivalent Tenements in the DSP
Area and the Present Value of the number of Equivalent Tenements to be
developed in the DSP Area, calculated at discount rate r
Ri - future Operating Revenues in each year i
Ci - future Operating Costs in each year i
r - the Discount Rate
n - the forecast period for the assessment of expected revenues and costs
and is 30 years from the date of calculating the RWDC
CO - cost offset in each year i, calculated as follows:
GDDCACSCO iii
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Where:
S - any subsidy received in each year i by a Water Agency for the
provision of Recycled Water Developer Services to a Development
AC - Avoided Costs in each year i
DC - Deferred Costs in each year i
GD - costs associated with a Government Directive
1.2.3 Preparation of DSPs
The 2006 Determination identifies the minimum level of information to be included in each
DSP. The information requirements relate to the description of the DSP area, demographic
and planning assumptions, the standards of service provided, descriptions of assets and
the calculation of a developer charge. We have prepared this draft DSP in accordance with
these requirements.
1.2.4 Consultation and review of the DSP and developer charges
The draft DSP will be placed on public exhibition for a period of 30 working days. Sydney
Water will consider and respond to submissions received during the public exhibition
period. The DSP will then be sent to IPART for registration. Sydney Water will inform the
Tribunal of its responses to any submissions made. Once registered, the DSP and
developer charge must be reviewed once in each five-year period.
The final developer charge will be subject to an annual adjustment in line with movements
in the Consumer Price Index. The quantum of each adjustment is determined by IPART.
The first adjustment will take effect from 1 July 2017.
1.3 Forecasting urban development rates
Developer charges are influenced by existing and forecast development that use up the
capacity of assets, and the timing of future capital works to service growth. In addition, the
operating revenue will vary over time based on periodic pricing determinations.
1.3.1 Existing development
Sydney Water has used its corporate billing and geographic information systems to
determine the extent and type of existing development in the DSP area.
1.3.2 Forecasting residential development
Sydney Water has applied the latest Department of Planning and Environment and
developer information to forecast the population and residential development in the DSP
area. Residential population growth is projected to increase from 686 dwellings in 2016 to
925 dwellings by 2046.
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1.3.3 Forecasting non-residential development
Commercial and industrial development forecasts have been based upon development
trends in the DSP area over the last ten years.
1.4 Forecasting system demand
1.4.1 Forecasting system demand
The growth forecasts for the Oran Park and Turner Road Recycled Water Scheme
development area have been used to estimate future demand on the recycled water
system. System design allowances have been applied to identify infrastructure
requirements to meet growth and ensure standards of service are met. Demand has been
expressed in terms of average day demand.
1.4.2 Defining an Equivalent Tenement
The 2006 Determination requires developer charges to be expressed in terms of an ET.
IPART defines an ET as a measure of recycled water consumption for an average
residential dwelling equal to 110 kL per year.
For the purpose of calculating developer charges it is assumed that an average residential
dwelling is a single detached dwelling with one 20 mm recycled water meter. As such, the
design allowances for a single detached dwelling represent the demand of one ET.
All other residential development types are equated to a number of ET based upon the
relative design allowances for that development type. For example, if the design allowance
for a high density residential flat is half that of a single detached dwelling, then the flat is
considered to be 0.5 ET. All demands are equated to an ET for the purpose of calculating a
developer charge.
Non-residential properties, including commercial and industrial developments and special
uses such as schools and parks, are equated to a number of ET based upon the relative
design allowances for that development type. It is assumed for the DSP calculations that
the commercial and industrial development demand is 913 kL per hectare per year (or 2.5
kL per hectare per day).
1.5 Determining relevant assets
The developer charge calculation includes all recycled water assets that Sydney Water has
funded or will fund to provide services to new development.
1.5.1 Existing assets
Sydney Water’s financial, developer and geographic information systems were used to
identify works that have been constructed to provide a benefit to future development. The
recycled water infrastructure includes:
• major works (include large diameter recycled water distribution mains)
• reticulation mains (required to deliver recycled water services within the Oran Park and
Turner Road Recycled Water Scheme)
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 10
1.5.2 Future assets
The 2006 Determination allows Sydney Water to recover the cost of assets that are yet to
be constructed and which are identified as being necessary to service future development.
Future recycled water infrastructure within the network is identified in the Oran Park and
Turner Road Recycled Water Scheme Options Report (AAJV, 2016).
1.5.3 Standards of service
The standards for recycled water supply are set out in the Sydney Water Customer
Contract. These standards may vary over time with the renewal of the Operating Licence.
Sydney Water s is required to ensure recycled water supplied to customers complies with
the Australian Guidelines for Water Recycling 2006 except to the extent otherwise specified
by NSW Health.
1.6 Asset valuation
The 2006 Determination identifies the methods of asset valuation that are to be adopted in
the calculation of developer charges. Assets existing at the time of the review are to be
valued on a Modern Engineering Equivalent Replacement Asset (MEERA) basis. Proposed
assets are to be valued at estimated efficient costs.
1.6.1 Valuation of existing assets
The valuation of existing assets was calculated from actual capital expenditure obtained
from Sydney Water’s financial information system and indexed to 2016 dollars based on
the historical construction index. Sydney Water has applied updated estimates of MEERA
values for existing assets.
1.6.2 Valuation of future assets
Capital expenditure for future works included in the calculation of developer charges has
been based on Sydney Water’s Cost Estimating Tool, and where applicable from recently
completed projects.
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 11
1.7 Operating result
The operating result equals the operating revenue from future development less the
operating and maintenance costs associated with servicing this development. The forecast
operating result is based on the expected urban development in the recycled water DSP
area over the next 30 years.
1.7.1 Revenue
The operating revenue forecasts are based upon the 2016 IPART determinations for
drinking and recycled water pricing. Beyond the price path, the current service and usage
charges have been assumed to remain constant in real terms. That is, the charges only
change by the inflation rate. The operating revenues are based on average usage of 110
kL per year by a single detached dwelling as required in the 2006 Determination.
1.7.2 Operating and maintenance costs
The future operating and maintenance costs for the Oran Park and Turner Road Recycled
Water Scheme are based on actual and estimated costs for Oran Park and Turner Road
systems. The method of calculating costs identifies:
• the processes and activities required to produce the recycled water (eg treatment,
distribution)
• the cost driver for each process/activity (eg electricity, chemicals)
• fixed or variable (cost per kilolitre) costs for each process/activity.
Many operating and maintenance cost components are constant and do not vary with
throughput. Some operating cost components (e.g energy and chemical use) are variable
and depend on throughput. Volume dependent components (energy and chemical
consumption) of the operating costs are based on actual costs.
Total operating costs for the recycled water schemes are forecast to increase in line with
development forecasts and an assumed usage of 110 kL per ET.
Replacement costs for the recycled water infrastructure such as pumps, mixers, diffusers
and meters have been based on similar costs across the Sydney Water network. The
average lifetime of each element has also been factored into the calculations.
1.8 Cost offsets (avoided costs)
The 2006 Determination established a framework for recycled water charges that includes
consideration of avoided or deferred costs. IPART defines an avoided cost as the expected
change in the present value of a water agency’s operating costs and capital expenditure
resulting from the permanent deferral of water or sewerage system augmentation2. In other
words, cost savings made in water and wastewater systems due to the provision of
recycled water services can be deducted or offset against recycled water developer
2 IPART Report Nos 8 and 9, 2006, Appendix C Guideline for the Calculation and Treatment of avoided and Deferred Costs of Recycled Water
Draft Development Servicing Plan 2017 | Oran Park & Turner Road Recycled Water System Page | 12
charges. These avoided costs are then recoverable under general water or wastewater
pricing.
No avoided costs were included in the calculations for the Oran Park and Turner Road
Recycled Water Scheme as none were applicable to the scheme.
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2 Oran Park & Turner Road Recycled Water Scheme
This section provides information about the area served by the Oran Park and Turner Road
Recycled Water Scheme and the infrastructure relating to this DSP. The development and
demand rates used in the calculation of the developer charge are also detailed.
2.1 Oran Park & Turner Road Recycled Water DSP
2.1.1 History of the Oran Park and Turner Road recycled water supply scheme
In 2003, the NSW Government announced that all new residential developments must
achieve drinking water savings of at least 40% commencing July 2004. Oran Park and
Turner Road recycled water scheme was identified as a scheme to enable the achievement
of drinking water savings in new release areas. In 2009, a water servicing strategy was
developed for the South West Priority Growth Area (SWPGA).
In response to this, Sydney Water engaged consultants to investigate options to minimise
drinking water demand. Their report concluded that dual reticulation via a recycled water
scheme was the preferred option. Sydney Water commenced construction of the scheme
based on the rate of growth forecasted at the time by the Department of Planning and
Environment.
In 2010, Sydney Water undertook financial analysis of the proposed dual reticulation
strategy. The strategy was found to be economically unviable, which led to the Sydney
Water Board’s decision to not proceed further with dual reticulation in this area.
Prior to the decision to move away from a recycled water strategy, Sydney Water had
considered supplying recycled water to some areas within Oran Park and Turner Road
(SWPGA) through issue of Section 74s Notice of Requirements. These areas have been
developed with dual reticulation; however the customers are currently receiving drinking
water through the dual reticulation network via cross-connections to the drinking water
supply.
The dual reticulation area within Oran Park and Turner Road includes approximately 686
dwellings.
The recycled water network within Oran Park and Turner Road is currently cross-connected
to the Narellan South Water Supply Zone (WSZ).
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2.1.2 Boundaries
Boundaries of Oran Park and Turner Road DSP are defined by existing recycled water
infrastructure servicing the area. The recycled water scheme area is shown in Figure 2-1
(see Section 2.4)
Table 2-1 details the area covered by the Oran Park and Turner Road DSP, the LGAs and
estimated population in 2016 and 2046 projected population.
Table 2-1 - Description of Oran Park and Turner Road Recycled Water DSP Area
Area (hectares) 78 ha
Local Government Area Camden Council
Estimated Population 2016 2058
Projected Population 2046 2775
2.1.3 Recycled water infrastructure
The existing and proposed recycled water infrastructure includes:
• headworks (requires a membrane bioreactor sewage treatment)
• major works (the recycled water delivery pumping station, drinking water top-up
services, service reservoirs and large diameter recycled water distribution mains)
• lead-in works (linking developer areas to the existing system)
• reticulation mains (required to deliver recycled water services within the Oran Park and
Turner Road Recycled water dual reticulation area).
Recycled water will be provided to the dual reticulation areas in Oran Park and Turner
Road via sewer mining at SP1156. A new treatment facility will be located adjacent to
SP1156 within the existing lot.
A new pumping station will also be required to boost the recycled water to customers in
Oran Park and Turner Road.
All additional infrastructure are outlined in Table 2-4 to Table 2-8.
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2.2 Development rates and demand rates
Table 2-1 details the actual and forecast development within the Oran Park and Turner
Road Recycled Water System based on residential dwellings and non-residential flows
(kL). These rates are based on the method outlined in Section 1.2.4.
Note: There is only a small amount of future growth expected in Oran Park/Turner Road
scheme for around 50 lots that front a recycled water main.
Table 2-2 - Development rates – Oran Park and Turner Road Recycled Water System
Financial Year
Single Residential
Dwelling
Multi Residential
Dwelling
Non-Residential
kL
2007-08 0 0 0.0
2008-09 10 0 0.0
2009-10 19 0 0.0
2010-11 218 0 2,874
2011-12 255 15 1,825
2012-13 51 5 2,363
2013-14 9 2 1,214
2014-15 9 0 1,142
2015-16 93 0 1,142
2016-17 121 0 251
2017-18 91 0 753
2018-19 27 0 1,004
2019-20 0 0 0
2020-21 0 0 0
2021-22 0 0 0
2022-23 0 0 0
2023-24 0 0 0
2024-25 0 0 0
2025-26 0 0 0
2026-27 0 0 0
2027-28 0 0 0
2028-29 0 0 0
2029-30 0 0 0
2030-31 0 0 0
2031-32 0 0 0
2032-33 0 0 0
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3 Financial yearly totals have been rounded in table, however total values calculated are based on exact values.
2033-34 0 0 0
2034-35 0 0 0
2035-36 0 0 0
2036-37 0 0 0
2037-38 0 0 0
2038-39 0 0 0
2039-40 0 0 0
2040-41 0 0 0
2041-42 0 0 0
2042-43 0 0 0
2043-44 0 0 0
2044-45 0 0 0
2045-46 0 0 0
TOTAL3 903 22 12, 568
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Table 2-3 details the actual and forecast demand within the Oran Park and Turner Road
Recycled Water System based on ETs. These rates are based on the method outlined in
Section 1.4.
Table 2-3 - Demand rates (average ET) – Oran Park & Turner Rd Recycled Water System
Financial Year
Single Residential
Growth ET
Multi Residential
Growth ET
Non-Residential
Growth ET
2007-08 0 0 0
2008-09 10 0 0
2009-10 19 0 0
2010-11 218 0 26
2011-12 255 9 17
2012-13 51 3 21
2013-14 9 1 11
2014-15 9 0 10
2015-16 93 0 10
2016-17 121 0 2
2017-18 91 0 7
2018-19 27 0 9
2019-20 0 0 0
2020-21 0 0 0
2021-22 0 0 0
2022-23 0 0 0
2023-24 0 0 0
2024-25 0 0 0
2025-26 0 0 0
2026-27 0 0 0
2027-28 0 0 0
2028-29 0 0 0
2029-30 0 0 0
2030-31 0 0 0
2031-32 0 0 0
2032-33 0 0 0
2033-34 0 0 0
2034-35 0 0 0
2035-36 0 0 0
2036-37 0 0 0
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Financial Year
Single Residential
Growth ET
Multi Residential
Growth ET
Non-Residential
Growth ET
2037-38 0 0 0
2038-39 0 0 0
2039-40 0 0 0
2040-41 0 0 0
2041-42 0 0 0
2042-43 0 0 0
2043-44 0 0 0
2044-45 0 0 0
2045-46 0 0 0
TOTAL3 903 13 113
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2.3 Assets
The assets included in the calculation of the Oran Park and Turner Road Recycled Water
DSP have been identified and valued in accordance with the method described in sections
1.5 and 1.6. The assets are provided in Table 2-4 to Table 2-8.
2.3.1 Existing assets
The majority of the Oran Park and Turner Road Recycled Water Scheme trunk
infrastructure has been constructed. All post 2007 constructed assets are operational. Pre
2007 assets have been commissioned in line with the 2006 IPART Determination
methodology.
Proposed assets are to be valued at estimated efficient costs.
Existing trunk infrastructure in the Oran Park and Turner Road Recycled Water Scheme
includes:
• Sewage Pumping Station in Turner Road (SP1156) – source for sewer mining and
localised treatment
• Oran Park recycled water mains
• Turner Road recycled water mains
2.3.2 Future assets
Planned future assets included in the developer charge are detailed in Table 2-4 to Table
2-8. The proposed timing of commissioning of future assets is also identified in the tables.
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Table 2-4 - Recycled water gravity pipelines
Financial Year
proposed Description Purpose
Length (m)
Diameter (mm)
Modern Material
% Growth
Value in DSP
($2016-17)
2010-11 Peter Brock Drive, Oran Park To serve growth in Oran Park Precinct 158 250 oPVC 100% $49,690
2011-12 Oran Park Drive, Oran Park Outside of committed scheme area 1 150 oPVC 0% $0
2011-12 Oran Park Drive, Oran Park To serve growth in Oran Park Precinct 14 250 oPVC 100% $4,413
2011-12 Oran Park Drive, Oran Park To serve growth in Oran Park Precinct 35 250 SCL 100% $18,782
2011-12 Oran Park Drive, Oran Park To serve growth in Oran Park Precinct 16 375 mPVC 100% $14,340
2011-12 Oran Park Drive, Oran Park To serve growth in Oran Park Precinct 8 375 SCL 100% $12,056
2011-12 Oran Park Drive, Oran Park Outside of committed scheme area 133 450 DICL 0% $0
2011-12 Oran Park Drive, Oran Park Outside of committed scheme area 40 450 SCL 0% $0
2011-12 Peter Brock Drive, Oran Park To serve growth in Oran Park Precinct 18 150 oPVC 100% $850
2011-12 Peter Brock Drive, Oran Park To serve growth in Oran Park Precinct 350 200 oPVC 100% $66,234
2011-12 Peter Brock Drive, Oran Park To serve growth in Oran Park Precinct 96 250 oPVC 100% $30,284
2012-13 South Circuit, Oran Park To serve growth in Oran Park Precinct 715 150 oPVC 100% $32,883
2011-12 South Circuit, Oran Park To serve growth in Oran Park Precinct 5 150 SCL 100% $466
2011-12 South Circuit and Grice Street, Oran
Park
To serve growth in Oran Park Precinct 663 150 oPVC 100% $30,483
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Financial Year
proposed Description Purpose
Length (m)
Diameter (mm)
Modern Material
% Growth
Value in DSP
($2016-17)
2011-12 Central Avenue, Oran Park To serve growth in Oran Park Precinct 303 200 oPVC 100% $57,306
2012-13 South Circuit, Oran Park To serve growth in Oran Park Precinct 364 150 oPVC 100% $16,719
2011-12 Peter Brock Drive, Oran Park To serve growth in Oran Park Precinct 189 150 oPVC 100% $8,704
2011-12 Gregory Hills Drive, Gregory Hills To serve growth in Turner Road Precinct 74 150 oPVC 100% $36,114
2011-12 Gregory Hills Drive, Gregory Hills To serve growth in Turner Road Precinct 2 200 oPVC 100% $1,453
2011-12 Gregory Hills Drive, Gregory Hills To serve growth in Turner Road Precinct 19 200 oPVC 100% $11,303
2011-12 Gregory Hills Drive, Gregory Hills To serve growth in Turner Road Precinct 33 375 mPVC 100% $30,276
2011-12 Gregory Hills Drive, Gregory Hills To serve growth in Turner Road Precinct 1,151 375 mPVC 100% $1,042,358
2010-11 Donovan Boulevard and McKenzie
Boulevard, Gregory Hills
To serve growth in Turner Road Precinct 437 150 oPVC 100% $20,084
2010-11 Lead-in Mains Donovan Boulevard and
McKenzie Boulevard, Gregory Hills
To serve growth in Turner Road Precinct 70 150 oPVC 100% $34,020
2010-11 Lead-in Mains Donovan Boulevard,
Gregory Hills
To serve growth in Turner Road Precinct 49 150 SCL 100% $38,248
2010-11 Healy Avenue, Gregory Hills To serve growth in Turner Road Precinct 62 250 oPVC 100% $19,506
2011-12 Fairbank Drive, Gledswood Hills To serve growth in Turner Road Precinct 124 150 oPVC 100% $5,714
2011-12 Fairbank Drive, Gledswood Hills To serve growth in Turner Road Precinct 55 200 oPVC 100% $10,347
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Financial Year
proposed Description Purpose
Length (m)
Diameter (mm)
Modern Material
% Growth
Value in DSP
($2016-17)
2011-12 Healy Avenue, Gregory Hills To serve growth in Turner Road Precinct 105 250 oPVC 100% $33,169
2013-14 Donovan Boulevard and McKenzie
Boulevard, Gregory Hills
To serve growth in Turner Road Precinct 157 150 oPVC 100% $7,230
2013-14 Donovan Boulevard, Gregory Hills To serve growth in Turner Road Precinct 113 200 oPVC 100% $21,392
2013-14 Healy Avenue, Gregory Hills To serve growth in Turner Road Precinct 395 250 oPVC 100% $124,540
2019-20 Camden Valley Way, Gledswood Hills To serve Turner Road Precinct 500 150 PVC 100% $1,273,817
2019-20 Oran Park Drive, Oran Park To serve Oran Park Precinct 820 300 PVC 100% $546,897
2019-20 Oran Park Drive, Oran Park Trunk main to Oran Park Precinct 2,700 300 PVC 100% $4,194,273
2019-20 Camden Valley Way, Gledswood Hills Potable water top-up 50 200 DICL 100% $57,649
Table 2-5 - Recycled water pressure pipelines
Financial Year
proposed
Description Purpose Length (m)
Diameter (mm)
Modern Material
% Growth
Value in DSP
($2016-17)
2019-20 Outlet Mains Boost pressure to Oran Park and Turner Road
Precincts
50 300 PVC
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Table 2-6 - Recycled water treatment plant works
Financial Year
proposed
Description Purpose Type Size (ML)
% Growth
Value in DSP ($2016-17)
2019-20 Recycled Water Treatment Plant To serve Oran Park and Turner Road Precincts MBR 0.19 100% $11,225,075
Table 2-7 - Recycled water pumping stations
Financial
Year
proposed
Description Purpose Power
(kW)
Flows
(L/s)
Head
(m)
%
Growt
h
Value in
DSP
($2016-17)
2019-20 Recycled Water Pumping Station To serve Oran Park and Turner Road Precincts 21 32 42 100%
Table 2-8 - Recycled water reservoirs
Financial
Year
proposed
Description Purpose Type Size
(ML)
%
Growth
Value in
DSP
($2016-17)
2019-20 Recycled Water Reservoir (included in treatment
costs)
-- -- -- -- $0
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2.4 Plan of the network system
Figure 2-1 - Recycled water infrastructure
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3 Developer charge calculation
3.1 Key assumptions and inputs
This section sets out key assumptions in the calculation of developer charge and financial inputs
including capital expenditure and future operating expenditure and revenues.
Table 3-1 - Inputs to the developer charge calculation model
Recycled Water Scheme Oran Park & Turner Rd
Present Year for Evaluation 2016-17
Real Pre-tax Rate of Return 5.9%
Recycled Water Charges
2016-17
Service Charge (20mm, $/year) 0
Usage Charge ($/kL) 1.79
Recycled Water Average Consumption
ET Consumption (kL/year) 110
Multi Residential (kL/dwelling/year) 69
Non Residential (per dwelling) 913
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Table 3-2 - Annual capital expenditure
Financial Year CAPEX
($2016-17)
Present Value of CAPEX
Average ET Growth
2007-08 $0 $0 0
2008-09 $0 $0 16
2009-10 $0 $0 28
2010-11 $161,547 $227,863 344
2011-12 $1,414,651 $1,884,210 374
2012-13 $49,602 $62,386 95
2013-14 $153,162 $181,902 25
2014-15 $0 $0 22
2015-16 $0 $0 109
2016-17 $0 $0 123
2017-18 $0 $0 92
2018-19 $0 $0 32
2019-20 $18,413,394 $15,504,078 0
2020-46 $0 $0 0
2020-21 $0 $0 0
2021-22 $0 $0 0
2022-23 $0 $0 0
2023-24 $0 $0 0
2024-25 $0 $0 0
2025-26 $0 $0 0
2026-27 $0 $0 0
2027-28 $0 $0 0
2028-29 $0 $0 0
2029-30 $0 $0 0
2030-31 $0 $0 0
2031-32 $0 $0 0
2032-33 $0 $0 0
2033-34 $0 $0 0
2034-35 $0 $0 0
2035-36 $0 $0 0
2036-37 $0 $0 0
2037-38 $0 $0 0
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Financial Year CAPEX
($2016-17)
Present Value of CAPEX
Average ET Growth
2038-39 $0 $0 0
2039-40 $0 $0 0
2040-41 0
2041-42 0
2042-43 0
2043-44 0
2044-45 0
2045-46 0
Total4 $20, 192,356 $17, 860, 440 1262
Table 3-3 - Capital charge
Description Present Value $ per ET
Capital charge 2007-08 to 2015-16 $1,867
Capital charge 2016-17 to 2045-46 $12,282
4 Financial yearly totals have been rounded in table, however total values calculated are based on exact values.
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Table 3-4 - Forecast revenue
Financial Year
Usage Revenue
Total Revenue Single
Residential Multi-unit
Residential Non-Residential
2016-17 $130,742 $2,717 $23,913 $157,372
2017-18 $154,567 $2,717 $24,363 $181,646
2018-19 $172,484 $2,717 $25,710 $200,912
2019-20 $177,801 $2,717 $27,507 $208,025
2020-21 $177,801 $2,717 $27,507 $208,025
2021-22 $177,801 $2,717 $27,507 $208,025
2022-23 $177,801 $2,717 $27,507 $208,025
2023-24 $177,801 $2,717 $27,507 $208,025
2024-25 $177,801 $2,717 $27,507 $208,025
2025-26 $177,801 $2,717 $27,507 $208,025
2026-27 $177,801 $2,717 $27,507 $208,025
2027-28 $177,801 $2,717 $27,507 $208,025
2028-29 $177,801 $2,717 $27,507 $208,025
2029-30 $177,801 $2,717 $27,507 $208,025
2030-31 $177,801 $2,717 $27,507 $208,025
2031-32 $177,801 $2,717 $27,507 $208,025
2032-33 $177,801 $2,717 $27,507 $208,025
2033-34 $177,801 $2,717 $27,507 $208,025
2034-35 $177,801 $2,717 $27,507 $208,025
2035-36 $177,801 $2,717 $27,507 $208,025
2036-37 $177,801 $2,717 $27,507 $208,025
2037-38 $177,801 $2,717 $27,507 $208,025
2038-39 $177,801 $2,717 $27,507 $208,025
2039-40 $177,801 $2,717 $27,507 $208,025
2040-41 $177,801 $2,717 $27,507 $208,025
2041-42 $177,801 $2,717 $27,507 $208,025
2042-43 $177,801 $2,717 $27,507 $208,025
2043-44 $177,801 $2,717 $27,507 $208,025
2044-45 $177,801 $2,717 $27,507 $208,025
2045-46 $177,801 $2,717 $27,507 $208,025
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Table 3-5 - Net operating result
Financial Year Total Revenue O & M Costs
Net Operating Result
Present Value Net Operating Result
2016-17 $157,372 $210,482 -$53,110 -$53,110
2017-18 $181,646 $237,869 -$56,223 -$53,090
2018-19 $200,912 $258,470 -$57,558 -$51,323
2019-20 $208,025 $582,849 -$374,824 -$315,602
2020-21 $208,025 $492,849 -$284,824 -$226,460
2021-22 $208,025 $492,849 -$284,824 -$213,844
2022-23 $208,025 $492,849 -$284,824 -$201,930
2023-24 $208,025 $492,849 -$284,824 -$190,680
2024-25 $208,025 $492,849 -$284,824 -$180,056
2025-26 $208,025 $492,849 -$284,824 -$170,025
2026-27 $208,025 $492,849 -$284,824 -$160,552
2027-28 $208,025 $492,849 -$284,824 -$151,607
2028-29 $208,025 $492,849 -$284,824 -$143,161
2029-30 $208,025 $492,849 -$284,824 -$135,185
2030-31 $208,025 $492,849 -$284,824 -$127,654
2031-32 $208,025 $492,849 -$284,824 -$120,542
2032-33 $208,025 $492,849 -$284,824 -$113,826
2033-34 $208,025 $492,849 -$284,824 -$107,484
2034-35 $208,025 $492,849 -$284,824 -$101,496
2035-36 $208,025 $492,849 -$284,824 -$95,841
2036-37 $208,025 $492,849 -$284,824 -$90,502
2037-38 $208,025 $492,849 -$284,824 -$85,460
2038-39 $208,025 $492,849 -$284,824 -$80,698
2039-40 $208,025 $492,849 -$284,824 -$76,202
2040-41 $208,025 $492,849 -$284,824 -$71,957
2041-42 $208,025 $492,849 -$284,824 -$67,948
2042-43 $208,025 $492,849 -$284,824 -$64,162
2043-44 $208,025 $492,849 -$284,824 -$60,588
2044-45 $208,025 $492,849 -$284,824 -$57,212
2045-46 $208,025 $492,849 -$284,824 -$54,025
Total4 $6,156,599 $14,103,730 -$7,947,131 -$3,622,223
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Table 3-6 - Net Operating Result
Description Present Value $ per ET
Net Operating Result
-$2,869
3.2 Developer charge
The following table details the components of the proposed developer charge calculation.
Table 3-7 - Components of the developer charge
Year Capital
Charge 2007-
08 to 2015-16
Capital
Charge 2016-
17 to 2045-46
Net Operating
Result
Avoided
Costs
Proposed
Developer
Charge
2016-17 $1,867 $12,282 -$2,869 $0 $17,018
While the above calculation shows a proposed developer charge of $17,018 per ET ($2016–17),
Sydney Water proposes to cap the developer charge at $7,205 per ET ($2016–17), which is
considered equivalent to the provision of a rainwater tank. The capped charged has been
approved by the NSW Treasurer in accordance with section 18(2) of the IPART Act. Accordingly,
the table below provides the proposed developer charge for different development types including
multi-unit residential and non-residential development.
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Table 3-8 - Schedule of proposed developer charges
Proposed Capped developer charge ($ 2016-17)
Development Density Charge
$/dwelling
Residential
(dwellings per pure net hectare5)
0 – 20 $7,205
21 – 35 $5,476
36 – 50 $3,674
51 – 65 $3,027
66 – 81 $2,593
82 – 95 $2,450
96 – 125 $2,161
126 – 155 $1,945
> 155 $1,585
Non-Residential $7,205 /ET based on assessed flows
5 The per pure net hectare is the actual size of a development site taking into account land use considerations such as:
• Battleaxe handle where the handle forms part of the allotment (excluded if it is a right of way)
• Car parking and landscaping
• Dedicated public reserve areas are generally excluded. However, unless recycled water services are required for irrigation or amenities block etc then it is charged on a flow basis
• Drainage easements are excluded on the basis that the land is sterile. If piped, and land is usable, then it is included in the area calculation
• Environmentally constrained land (flood prone/land slip/foreshore protection/heritage/riparian zones) is excluded unless development is permitted (such as a dwelling), in which case it may be appropriate to include the building envelope area
• Land affected by transmission line easements is generally excluded unless the land has the ability to draw a recycled water demand (eg irrigation for landscaping, wash down for trucks etc)
• Generally excludes public open space and roads etc.
SW204 04/17 - © Sydney Water. All rights reserved.