Agenda of Parks and Recreation Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Parks and Recreation Committee Meeting

Page 7

16/6/2022

REPORT TITLE: Review of Council Tree Compensation Policy

REPORT PROVIDED BY: Program Leader Arboriculture & Nursery

Manager Bushland Biodiversity and Waterways

Director City Life

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to review the Council Tree Compensation Policy, to ensure that it balances the need to maintain significant tree coverage with the need for additional housing development, and to ensure it remains consistent with community expectation.

1.1.1. This review actions a motion in the Council meeting of 6 December 2021.

1.1.2. The current framework for the charging of a compensation fee was approved by Council on 18 February 2019.

2. Report Summary

2.1. A review of the 26 developments that have proposed the removal of Council tree/s for the benefit of private development since the implementation of the strategy was undertaken.

2.2. The results indicate that the impact of the policy is largely positive and solutions that retain trees rather than remove them, while also progressing the development, are being achieved.

2.3. The average amenity value of trees that have been approved for removal is $2,820.

2.4. Trees that have been retained through design changes have a combined value of $291,356.

2.5. The results of the review of the applications to remove tree/s are described below.

Outcome	Number of applications	Cost
Removal permitted (no changes to design required)	10	Total of 15 trees across the 10 applications, with an average amenity value of $2820 per tree
Designs changed to allow retention of all trees, or the retention of higher valued trees	8	Total of 9 trees approved for removal to allow for higher valued trees to be retained with an average amenity value of $2100 per tree. Selective design changes to allow retention of significant trees has allowed for the retention of $291,356 in tree amenity
Not progressed due to non-tree related issues	5	No cost
Tree removed by Council due to storm damage	1	No cost

2.6. The review confirmed earlier investigations that identified a small number of methodologies being used nationally and internationally to determine an amenity value for existing trees.

2.7. The review of current policies adopted in Australian Councils demonstrates that the current City of Hobart tree compensation policy is commonplace in jurisdictions of a similar scale and with similar tree stock values.

2.8. Assigning a real value to trees in an urban setting ensures that best design practices are applied in initial development considerations so that the need to remove existing trees is avoided at the earliest consideration.

2.9. The policy and the tree valuation methodology provides a consistent and transparent methodology to calculate the intrinsic value of trees, with a primary aim of preventing tree removal by encouraging alternative design solutions.

2.10. In most cases an alternative design can be found, and the removal of the tree is no longer required.

2.11. Where there are no option and removal is justified, the amenity value provides a mechanism for the Council to be fairly compensated for the loss. This fee is then directed into the Councils tree planting budget.

2.12. The methodology used by Hobart City Council to calculate the amenity fee (City of Melbourne method) is the most commonly and widely used across Australia, and is consistent with methodologies used internationally.

2.13. The review of current best practice indicates that it is now best practice to apply an ‘ecosystem service’ fee to be payable on top of an amenity fee - this fee is generally calculated using an application using the model iTree-eco.

i-Tree eco is a model that uses tree measurements and other data to estimate the economic value of the ecosystem services provided by a tree such as pollution reduction, carbon, public health impacts, rainfall capture to reduce storm runoff and solar energy impacts and maintaining thermal balancing in an urban setting.

3. Recommendation

That:

1. The City of Hobart Tree Compensation Policy be retained as best practice tool for the incorporation of the value of trees to the City and to the environment.

2. The City convene regular forums for professional associations such as architects, designers, engineers and urban designers to explain the policy to ensure it is considered early in the design process.

3. An i-Tree Eco fee be calculated, that defines the value of the ecosystem services that a tree provides for any tree that is approved for removal.

4. Background

4.1. Street and park trees are essential public assets that require public funds to install and maintain. Unlike most other public assets, the value of an established tree is greater than the cost to purchase and install a replacement tree. A large tree provides significantly more amenity and value to the community than the tree that would be planted to replace it as it may have been growing in the landscape for decades.

4.2. Existing trees in public spaces, particularly large canopy trees will play an increasingly important role with further infill development and intensification of urban and suburban areas as this type of development significantly reduces the space on private land for trees.

4.3. An analysis of the use of tree amenity valuation in other Australian Councils shows that at least 22 other Councils apply a Tree Amenity Value fee, with the majority (13) using the City of Melbourne methodology (Attachment 1).

4.4. Trees provide many social, economic and ecological service benefits- they play a significant role in providing shade, reducing stormwater runoff, reducing energy use, ameliorating the urban heat island effect, reducing wind speed, carbon capture and storage and habitat provision.

4.5. The objective of greening the City of Hobart relies upon a strong policy of tree canopy retention as well as investment in tree planting.

Figure 1: Environmental, social and economic benefits of healthy urban trees (extract from: ACT Government, Transport Canberra and City Services Directorate, ‘Social, economic and environmental values of street trees in the urban environment’, April 2020

4.6. Trees provide amenity that enhances the image of the city and the experience of the community. They provide a sense of place, and can be key landmarks that are valued over generations.

4.7. Private development that wishes to remove trees are a trade-off between private benefit and community assets. An amenity value allows for the proper recognition of trees in the design and decision making process.

4.8. The City of Hobart Street Tree Strategy 2017 outlines that the City should require remuneration for the removal of a public tree of a monetary value that includes both the estimated amenity value of the tree and the cost of the replacement planting (Section 7.4.3).

4.9. The City of Hobart tree compensation framework was adopted unanimously in a Council meeting on 18 February 2019

4.10. This policy recognises that the value to the community of a tree cannot be adequately compensated for by the purchase and installation costs of the replacement tree alone.

4.11. There have been previous attempts to establish a single methodology for tree amenity valuations for use throughout Australia. In 2006 Standards Australia issued a draft for industry comment that included the Burnley, Thyer and City of Melbourne methods and sought guidance from the industry on selecting a single standard methodology from amongst these.

4.12. Current industry practice is moving towards having a number of established and accepted methods (eg. City of Melbourne, Burnley and Thyer), with local authorities determining which method is most appropriate for their local context. An assessment of the four most commonly used methodologies can be found in Attachment 2. This assessment determined that the City of Melbourne Methodology is the preferred methodology for the City of Hobart. This is consistent with the City of Hobart Street Tree Strategy which also specified this methodology. A Minimum Industry Standard on Tree Valuations is currently under development by Arboriculture Australia and is due to be released this year.

4.13. A review of the 26 developments that have proposed the removal of Council tree/s for the benefit of private development since the implementation of the strategy is found below

Outcome	Number of applications	Cost
Removal permitted (no changes to design required)	10	Total of 15 trees across the 10 applications, with an average amenity value of $2820 per tree
Designs changed to allow retention of all trees, or the retention of higher valued trees	8	Total of 9 trees approved for removal to allow for higher valued trees to be retained with an average amenity value of $2100 per tree. Selective design changes to allow retention of significant trees has allowed for the retention of $291,356 in tree amenity
Not progressed due to non-tree related issues	5	No cost
Tree removed by Council due to storm damage	1	No cost

5. Proposal and Implementation

5.1. If an applicant wishes to remove a Council tree, they must acquire a By-Laws permit under Section 23 of the Public Spaces By-Law:

5.1.1. The Arboricultural Services Program Area assesses the application and provides advice to the Director City Amenity on whether the tree should be approved for removal.

5.1.2. A tree compensation fee is calculated by a suitably qualified City Officer or an arborist engaged by the City using the City of Hobart Tree Amenity Formula.

5.1.3. If Council is satisfied that there is no other practical or feasible alternative, and the tree is approved for removal this fee is communicated to the applicant, providing the applicant with the opportunity and an incentive to re-design the proposal so that it does not impact on a public tree asset.

5.1.4. The Tree Amenity Fee and a replacement and replanting fee will be included as a condition on the By-Laws Permit.

5.1.5. If an applicant wishes to remove a Council tree as part of a planning application for private development they must acquire General Manager’s consent to submit the application for it to be valid (Section 52 of the Land Use Planning and Approvals Act 1993). Council will undertake the above assessment as part of the General Manager Consent Process.

Should the substantive development application be approved, the applicant will also be required to get a Public Spaces By-laws permit to remove the tree.

6. Strategic Planning and Policy Considerations

6.1. Vision:

The community vision describes what people love and value about Hobart and how they want it to evolve. Its vision statement reads:

· Hobart breathes.
Connections between nature, history, culture, businesses and each other are the heart of our city.
We are brave and caring.
We resist mediocrity and sameness.
As we grow, we remember what makes this place special.
We walk in the fresh air between all the best things in life.

The document includes eight pillars that represent the major parts of Hobart life. The sixth pillar is the Natural Environment:

We are a city whose people see ourselves as part of a beautiful and unique natural environment, from the mountain to the river, which embrace us and shape our identity. We are proud custodians and advocates, ensuring resources are appreciated rather than wasted, supporting biodiverse ecosystems in honour of past, current and future generations.

6.2. Capital City Strategic Plan 2019-2029

Pillar 6.1.5: Enhance urban forests, tree canopy cover and greenery throughout Hobart

6.3. City of Hobart Street Tree Strategy

Section 7.4.3 Protection During Construction

Trees and their root zones may occupy a substantial part of a development site and can, therefore, have a major influence on use and development of a site. Despite the value large trees may bring to a development, they are seen as a nuisance by some developers or their contractors. At worst, this leads to wilful removal or damage or, less maliciously, to a lack of protection of trees from damage during construction.

Developers should be compelled to give sufficient curtilage around existing trees (above and below ground) to eliminate impacts and allow the ongoing health of a tree because trees find it difficult or impossible to recover from damage to tree root zones. Early identification of protection measures to eliminate or mitigate against damage is, therefore, essential and should be required throughout the development process.

In particular, the City should require application of the principles and techniques of AS 4970 Protection of Trees on Development Sites for protection of all trees greater than 5m tall or 150mm DBH in proximity to a development site.

Application of AS 4970 will likely increase the cost to the developer but the benefits that will accrue for the ‘greater good’ of the community are worth the investment. Acceptance and acknowledgement of the constraints, costs and ensuing benefits is required for successful application of the AS 4970.

To regulate application of the AS 4970, the City should impose, as a condition of approval, a bond for the protection of all public trees that may be impacted by a proposed development. The condition should note that failure to conduct works in accordance with AS 4970 will result in the loss of all or a portion of the bond. The size of the bond should be based on:

• the estimated value of the tree (see Section 7.1.3); and
• the cost of a replacement tree;
• of an advanced size (say a 200L bagged tree or equivalent);
• of a species that will attain the mature height expected from the tree to be removed; and
• installed in line with the City’s planting procedures.

In determining any discretion to allow removal of an established tree, the City should require replacement, as above, in a suitable location and/or remuneration for the value of the tree. In no case should the City allow removal of trees for the construction of site hoardings.

Section 7.1.3. Evidence Base

The City of Melbourne has adopted a method for calculating the value of its trees based on a number of variables. In Hobart, the data has been collected and used to substantiate the monetary value of the trees in the City’s streets and parks. Being able to estimate this value gives great weight to the decision making processes around management of the street tree asset.

6.4. Protecting our Wild Heart: An Action Plan for Hobart’s Bushlands

Page 19: The City of Hobart is committed to working with the local community to retain, promote and enhance these natural values for the long-term environmental, social and economic benefit of the community.

The number 1 threat identified for the City of Hobart was:

Habitat fragmentation and degradation:

Habitat loss, degradation and fragmentation is viewed as the largest cause of biodiversity loss and the primary factor resulting in species being listed as threatened or endangered. Direct causes of habitat loss include the clearing of native vegetation and the cumulative effects of human activities such as:

• small scale incremental loss of vegetation
• degradation of habitat remnants and loss of connectivity
• nutrient run-off

6.5. Sustainable Hobart Action Plan 2020-2025

RESI-01: Habitat extension and restoration- Helping our bushland teams develop a more resilient landscape.

As bushfires increase in frequency and urban development continues, the loss of vegetation, hollow logs, dead trees and other crucial habitat is increasingly stressing native animals, insects and birds.

Resi-07: Urban cooling vegetation program- Planting more trees in more streets and in waterway corridors.

Urban heat islands are built areas that are significantly warmer than surrounding areas due to human infrastructure and activities.

Buildings and paved areas store more heat, resulting in heat stress-related negative health outcomes for residents. These trends are set to intensify with climate change.

Smart data collection will identify heat islands, helping to prioritise areas for street tree planting. This initiative will include evidence based communications about the benefits of green infrastructure, trees and nature in urban spaces, as well as a review of which species are planted, to ensure they will be tolerant to the future climate. This initiative will support the City’s goal of reaching 40% canopy cover by 2046.

6.6. Central Hobart Precincts Plan Discussion Paper

Idea seven: Greening the City

Cities worldwide are recognising trees and green spaces as critical urban infrastructure, as they provide clean air and shade, and cool the atmosphere during periods of heat.

Beyond benefits to human wellbeing, urban greening promotes biodiversity, can reduce pressure on stormwater infrastructure and aids in carbon capture…

…As the climate warms, urban heat will become an increasing stress in the city centre, exacerbated by the high percentage of hard surfaces (roadway and roofs) compared with green space and canopy. This is called the urban heat island effect. Increasing the amount of greenery and tree canopy in the city will have a cooling effect but also provide benefits for economic activity, city amenity and health and wellbeing. Greening is a strategy that cities worldwide are adopting to enhance the resilience of cities to climate change impacts.

6.7. City of Hobart Transport Strategy:

Our streets are part of where we live, not just roads for cars. There is strong desire within the Hobart community to take a more holistic view of our place and manage and develop our streets for people. Ensuring that the city’s character, scale and connections to people, places and nature are maintained in unobtrusive, place sensitive ways was a priority that emerged in the Vision engagement.

6.8. Greener Spaces Better Places:

The City of Hobart is a partner organisation to Greener Spaces Better Places. Greener Spaces Better Places is a national initiative that brings together government, universities, businesses and industry to make our urban areas greener. It is funded in part by the Australian Government.

The presence of green spaces can enhance the health and wellbeing of people living and working in cities, they provide oxygen and limit carbon in the atmosphere. They reduce air pollution, provide food and shelter for wildlife, minimise erosion and maintain healthy soil, increase rainfall, and absorb sunlight as energy. Simply put, we can’t survive without it: greener spaces make better places.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Any revenue generated will continue to be directed to the City’s tree planting budget.

7.2. Impact on Future Years’ Financial Result

7.2.1. Any revenue generated will continue to be directed to the City’s tree planting budget.

7.3. Asset Related Implications

7.3.1. If City tree assets are approved for removal as part of private development the asset will be retired from City’s asset management system. The applicant will be responsible for the removal of the subject tree, all associated costs and for acquiring all required permits.

8. Legal, Risk and Legislative Considerations

8.1. Council’s Legal Officer has previously sought external advice and has reviewed the matter and is of the view that the imposition of a condition on a By-Law permit issued for the removal of a tree that requires payment of a sum, the value of which is determined in consideration of one or more industry standard valuation methodologies, is a lawful exercise of the discretion afforded to the General Manager (or their delegate) pursuant to the provisions of the Local Government Act 1993 and the Public Spaces By-Law.

8.2. The Public Spaces By-Law Section 23 states:

A person must not, by any act, wherever performed, cut, prune, pluck, destroy, remove or injure any tree, shrub, flower or other vegetation growing in a public space unless authorised to do so by permit.

This provides the head of power to require applicants to obtain a By-Laws permit with conditions governing the removal of the tree.

8.3. Part 7 of the By-Law governs the process of applying for, and the granting of, permits under the By-Law and includes the following:

(a) cl.86 which sets out the matters to which the General Manager is to have regard when considering applications for permits; and

(b) cl.87 which provides that a permit “may be granted under such terms and conditions as the General Manager consider appropriate”.

The framework in Part 7 of the By-Law is both lawful and commonplace in Tasmania; the Local Government Act 1993 authorises any council to make by-laws prescribing the purposes for which, and the conditions on which, permits may be granted for a wide range of matters.

8.4. It is proposed that the applicant will be responsible for all works and costs associated with the removal of the City tree. This presents a public liability risk to the Council.

8.4.1. It is accordingly required that the applicant obtain a Permit To Open Up and Temporarily Occupy a Highway and a Traffic Management Permit if required. These permits require Public Liability insurance of $10,000,000.

8.4.2. The provision of a Public Spaces By-Laws permits can also require the works be undertaken by suitably qualified and experienced persons. This ensures the potential risks to the local community and the City are mitigated and controlled.

9. Environmental Considerations

9.1. Trees provide a range of essential environmental benefits:

· Biodiversity protection, providing important habitat and corridors for birds and animals

· Heat mitigation through transpiration, shade and passive cooling

· Energy efficiency by reducing the need for air conditioning in offices and homes

· Improved air quality Water absorption capturing stormwater and reducing peak flows and improved water quality

· Noise reduction

9.2. The tree compensation fee framework provides a monetary incentive for developers to design their proposal around established trees.

10. Social and Customer Considerations

10.1. Providing a framework for valuing street trees incentivises the retention of public trees or provides adequate compensation for the loss of public trees that can be used for increased tree planting.

10.2. A healthy and abundant tree population has many proven benefits to the wider community including improved health and well-being, environmental services benefits, increased connection to nature and increased physical activity.

11. Marketing and Media

11.1. The City of Hobart website can be updated to include further information on the tree compensation fee, when and why it is required and how it is calculated. This promotes a transparent system that demonstrates that the fee is consistently applied to a set standard.

12. Community and Stakeholder Engagement

12.1. Community engagement was undertaken as part of the development of the current City of Hobart Street Tree Strategy.

12.2. It is proposed that the City convene regular forums for professional associations such as architects, designers, engineers and urban designers to explain the policy to ensure it is considered early in the design process.

12.3. An information booklet that details the value of the City’s trees can be produced and distributed to relevant stakeholders and put on the Councils website.

13. Delegation

13.1. The matter is delegated to the Council.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Ruby Wilson

Program Leader Arboriculture & Nursery

John Fisher

Manager Bushland Biodiversity and Waterways

Neil Noye

Director City Life

Date: 6 June 2022

File Reference: F22/2563

Attachment a: List of Australian councils that change an amenity fee ⇩

Attachment b: Comparison of valuation methodologies ⇩

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