AGENDA ITEM 9 BOROUGH OF POOLE

COUNCIL

7 APRIL 2009

SOUTH EAST DORSET TRANSPORT CONTRIBUTIONS: REPORT OF THE PORTFOLIO HOLDER FOR DEVELOPING A DYNAMIC ECONOMY

PART OF THE PUBLISHED FORWARD PLAN YES/NO

STATUS (Strategic, Service Delivery Information)

1. PURPOSE

1.1 To bring before Council the South East Dorset Transport Contributions Supplementary Planning Guidance (SPG) and governance arrangements.

2. DECISION(S) REQUIRED

2.1 That Council agree: i. the adoption of the South East Dorset Transport Contributions Supplementary Planning Guidance with minor changes delegated to the Head of Transportation Services in consultation with the Economy Portfolio Holder. ii. the establishment of the Transport Contributions Executive operating as a joint arrangement iii. the governance arrangements for the implementation of the guidance

3. BACKGROUND/INFORMATION

3.1 The South East Dorset Strategic Planning and Transportation Committee considered a joint contributions scheme to be essential to local delivery of the Regional Spatial Strategy and the Transport Strategy for South East Dorset as set out in the Local Transport Plan. As a consequence the local authorities of Poole, Bournemouth, Christchurch and East Dorset as well as Dorset County Council agreed to the joint production of a policy covering the Unitary/district authority areas (Dorset County Council is the highway authority for Christchurch and East Dorset). Purbeck District Council already operates a similar scheme so is not part of this proposed arrangement.

3.2 A draft scheme was approved for consultation in the autumn of 2008 that proposed a tariff system based on trip rates by development type for all new development (net gain). Bournemouth and Poole currently operate an interim transport tariff system for new housing development. Dorset County Council administered the consultation and over 300 agents/developers and other organisations were contacted.

1 3.3 The consultation elicited an exceptionally low response of 28 representations. The introduction of a contributions policy tends to be an emotive issue and therefore the low level of response is difficult to explain. However, the established Purbeck scheme and the interim schemes in Poole and Bournemouth may have dealt with the issues for most consultees. The common issues raised through the consultation are set out in Appendix A and the full report on consultation is at Appendix B. Appendix B is available on the Council’s website and copies are available in the Members’ group rooms.

3.4 The report on consultation was presented at Economy Overview and Scrutiny Committee on 5 March. The text to the guidance has been revised to clarify the common issues raised and to address the concerns of the Overview and Scrutiny committee. The developer contributions collected towards transport infrastructure secured through this guidance will only be spent improving transport in South East Dorset as a consequence of the additional growth proposed through the Regional Spatial Strategy.

3.5 The draft South East Dorset Transport Contributions Supplementary Planning Guidance is attached as Appendix C, and Members’ attention is drawn to the Executive Summary and the examples given in Appendix E of the SPG. The tariff now proposed is 11% lower in real terms than it was at the consultation stage. The costs represent the additional transport schemes required due to the increase in journeys from the new development across South East Dorset, excluding Purbeck. Journeys include goods vehicle trips, passenger trips in public transport, and two-wheeled vehicle trips, as facilities for all modes of transport will need to be improved.

3.6 The total package of mitigation represents the identified transportation projects which are currently needed and those required to mitigate the additional development up to 2026. The total cost of the mitigation package is estimated at £471m and the anticipated income from the contributions scheme is £166m. The package contains both significant strategic projects, such as Twin Sails Bridge, and smaller scale schemes in the Local Transport Plan. The contributions are concentrated on the improvement of the existing network to allow public transport to function more efficiently and a place shaping approach to enhance conditions for pedestrians and cyclists.

3.7 In introducing a South East Dorset contributions scheme the appropriate governance arrangements need to be put in place to ensure transparency of how decisions are made about project priorities. The workings of the Dorset Heathland Executive Group provide an existing sub regional governance arrangement and it is proposed that a similar approach is adopted for transport contributions with the same scrutiny arrangements. The detail of governance arrangements is attached at Appendix D. It is to be noted that Councillor representation and substitutes to the Transport Contributions Executive will require appointment at the Annual Council in May.

2 4. FINANCIAL IMPLICATIONS

4.1. The individual local planning authorities will undertake the collection of transport contributions. Poole, as is the case with Heathland contributions, will administer the overall account i.e. collating contributions from the other authorities and ultimately authorising through the Head of Financial Services the available contributions for the Transport Contributions Executive to allocate.

4.2. The package of mitigation comprises transport schemes across South East Dorset and, for example, includes Twin Sails Bridge and its associated road network. It is therefore expected that contributions from the scheme will make a contribution to the repayment of the Regional Infrastructure Fund (RIF) loan from the South West Regional Development Agency.

5. LEGAL IMPLICATIONS

5.1 There are no additional legal requirements over and above those associated with the introduction of a contributions scheme.

6. RISK MANAGEMENT IMPLICATIONS

6.1 There is a risk around the non-agreement of the partner authorities to the implementation of the scheme. The scheme needs to be operating by mid September to enable the Council to demonstrate that repayment methodology of the RIF loan is viable. To mitigate this possibility it is open to the Council to introduce the SPG and operate the scheme independently, and continue to work with partners on the wider introduction of the scheme.

7. EQUALITIES IMPLICATIONS

7.1 Transport schemes impact on equalities issues particularly around accessibility. The introduction of the scheme is cascaded down from the regional level where EQIA was undertaken on the Regional Spatial Strategy. There is no further requirement for EQIA around this scheme but there may be the need for more detailed EQIA of specific schemes as part of the design.

8. CONCLUSIONS

8.1The scheme will enable transport contributions to be collected towards mitigating the impact of additional growth across South East Dorset. In Poole the contributions will partially fund key transport and regeneration projects such as the Twin Sails Bridge and the rest of the Regeneration Area transport network.

8.2The governance arrangements will ensure that there is transparency over how much contribution has been collected and where it is being spent.

3 8.3 Improvements to the consultative draft scheme were made as a result of advice from Economy Overview and Scrutiny Committee. Thus, it is likely that further minor changes to the SPG text will result from the scrutiny and adoption process of the other four authorities. It is suggested that this process is delegated to the Head of Transportation Services in consultation with the Economy Portfolio Holder.

Report Author: Councillor Ron Parker, Economy Portfolio Holder

Contact officers: Chris Francombe (01202 262040) and Nigel Jacobs (01202 633328)

Background Papers: Report to 5 March Economy Overview and Scrutiny Committee

Appendix A - Summary of main points from consultation Appendix B - Full Report on Autumn 2008 Public Consultation (not attached to report, see Council website) under Economy Overview and Scrutiny Committee, 5th March 2009 Appendix C - South East Dorset Transport Contributions SPG Appendix D - Governance Arrangements for the Transport Contributions Executive

4 APPENDIX A Summary of main points from consultation

1. The common issues raised by those making representations to the proposed guidance were:

 that the guidance was not in accordance with the 5 requirements as set out in Circular 05/2005 paragraph B5  up-front payment of contribution not widely supported  15 years period of repayment is too long and should be either 5 or 10 year period  possible double-counting issue between conurbation-wide and site specific contributions  Section 106 agreements should state exactly where contributions will be spent  ‘Traffic credit’ scheme is unclear and needs further clarification’  Contributions should be calculated on a different basis for affordable housing and health care facilities  Greater emphasis on developing Travel Plans and encouraging modal shift away from the private car  Emerging RSS, Poole Core Strategy, SEDMMTS and LTP3 guidance should be taken into consideration in final guidance  Most reps are unsupportive of Purbeck’s approach to contributions in that they don’t consider household extensions to be relevant  Is the location of site taken into consideration or just the size  when calculating the contribution? Has the sustainability of the site location been considered (i.e. green field rural, or brown field urban in- fill)? Further clarification required.

5 APPENDIX B Full Report on Autumn 2008 Public Consultation (not attached to report, see Council website) Economy Overview and Scrutiny Committee – 5th March 2009

6 APPENDIX C

South East Dorset Transport Contributions Supplementary Planning Guidance - Attached

7 APPENDIX D

Governance Arrangements for the South East Dorset Transport Contributions Executive Group

1. Operational Arrangements

1.1 The arrangements of the South East Dorset Transport Contributions Executive Group should be approved by each of the local authorities that form part of the joint arrangements.

1.2 Each local authority that is a member of the joint arrangement confirms its agreement to make all “Transport Contributions” received under the terms of the supplementary planning guidance available to the decision making of the joint arrangement on the basis of the details set out.

1.3 The joint arrangement will be known locally by its short title, the Transport Contributions Executive, or TCE.

Terms of Reference

1.4 The terms of reference of the TCE will be to:

i) Agree an annual programme of projects ensuring that there is appropriate balance across SE Dorset (excluding the Purbeck District Council area), to provide mitigation where an increase in transport demand is expected. ii) Monitor and review income from developer contributions and their appropriate management. iii) Develop and approve plans for the mitigation of the impact of development and implement solutions. iv) Receive reports and recommendations to enable individual projects to be prioritised. v) Exercise decision making powers to prioritise and approve funding allocation to individual projects, within the overall funds allocated towards the work of the TCE. vi) Ensure that the actions of the partnership are commensurate with the framework and standards of the local authorities that form part of the partnership. vii) Receive reports on progress of transport schemes at all stages and hold delivery partners to account for performance. viii) Provide the focal point for liaison and communication on issues relevant to the work of the TCE.

1.5 For the avoidance of doubt, the TCE cannot exercise any of the functions of a Local Planning Authority.

Governance Arrangements

8 1.6 Members of the TCE will be drawn from the following organisations:

i) One elected member from each strategic authority: Bournemouth Borough Council, The Borough of Poole and Dorset County Council; ii) One elected member from each of East Dorset and Christchurch Councils; iii) One representative from the Home Builder’s Federation; i) One representative from the Highway Agency; ii) One representative from local bus operators and iii) One representative for the Regional Development Agency

1.7 Decisions of the TCE will be recorded appropriately as a public record.

1.8 The quorum for the TCE will comprise at least four representatives and these must include at least two representing the strategic authorities, one from amongst the Dorset Districts and one from the non local authority organisations.

1.9 The Chairmanship of the TCE will be an elected member, normally of the authority hosting the meeting. Each local authority will take its turn to Chair the meeting, taking precedence over the hosting arrangements.

1.10 Each member of the TCE will have a vote.

1.11 In regard to the decision making for funding allocation, only an elected member will be entitled to vote. The Chairman if necessary shall have a second or casting vote.

1.12 Non local authority members of the TCE will be entitled to participate in decision making on non financial matters.

2. Financial & Project Management Arrangements

2.1 The developer contributions collected by each local authority will be identified and made available to the TCE on a regular basis (at least 4 times per year). The Chief Financial Officer of each of the constituent partner authorities will confirm arrangements are in place to authorise the level of contributions received (including interest and after deduction of the agreed administrative fee) and available for distribution by the Group. It will be for each local authority to determine the funds available for distribution. Once funds have been made available to the Executive Group they cannot be refunded.

2.2 Only contributions made available for distribution will be allocated towards mitigation projects by the TCE.

2.3 Mitigation projects should be submitted to the TCE for approval of a funding allocation. Each project submitted for approval should be supported by a Project Definition Report (PDF) (standard form). This will cover:

. Sponsoring Authority (lead/management authority)

9 . Description of Scheme . Project Brief . Project Responsibilities . Business Case  Funding arrangements o Capital, Revenue, Whole life Costs . Management Reporting Arrangements . Risk Management Assessment . Milestones . Post Completion Review (completed at end of scheme)

2.4 The “sponsoring” authority “Business Case” for each project should be signed off by the Chief Financial Officer of the “sponsoring” authority who will confirm arrangements are in place to deliver the project over its whole life.

2.5 Following project approval, contributions will be made available to the project to enable delivery of the mitigation strategy. Allocations will be made pro rata to total contributions available at the point of project approval.

2.6 It is proposed that Borough of Poole, as is the case for the Dorset Heathlands Executive Group , will be responsible for ensuring that the agreed financial arrangements are appropriately implemented on behalf of the TCE.

2.7 Example of Financial Arrangements Reporting to TCE

Contributions Received

The current level of contributions that have been received and are available for distribution by the TCE at (given date) are:

£ £ £ EXAMPLE FORM Received Not yet Available Inc. Available For ONLY Interest (+) For Distribution & Admin (-) Distribution Borough of Poole Bournemouth Borough Council Christchurch Borough Council East Dorset District Council Dorset District Council

23 March 2009

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