2021-10-12 P&E Agenda - Item 2 - Attachment 6 - Cost Benefit Analysis

COST BENEFIT ASSESSMENT – PROPOSED LOCAL LAW AMENDMENT: SHORT STAY
LETTING & HOME HOSTED ACCOMMODATION


3.            ESTIMATED COSTS
3.1           COUNCIL COSTS
Council has identified the resources required to implement the local law, and manage the ongoing administration
of, and compliance with, the local law.

The first three years of implementation is anticipated to generate the largest workload to support application
processing for existing short stay accommodation premises. The resourcing effort required thereafter will include
the processing of incremental premise applications associated with growth and change in land use, in addition to
services engaged to manage and operate a complaints hotline accessible 24 hours a day / 7 days a week to receive
calls, notify responsible contact persons and engage security services to attend properties where there is no
response from responsible contact persons.

The estimated annual costs associated with implementing and administering the local law over the first five years
are outlined below. These costs exclude cost indexation and as such are in real (i.e., current day) dollar terms.

Table 3.1. Local Law Implementation and Administration Council Costs, First 5 Years (real terms)
    Cost Type                           2022         2023         2024          2025        2026
    Labour                           $374,653    $400,694     $244,452     $166,331     $166,331
    Materials and Services / Other   $305,708    $294,854     $215,666     $147,519     $147,519
    Total                            $680,362    $695,547     $460,118     $313,850     $313,850
Source: Council.



    IMPACT SUMMARY:

    Council will incur and pass on initial and ongoing application processing costs for existing short stay letting and
    home hosted accommodation providers, plus it will also incur ongoing administration costs associated with the
    proposal local law, with the costs totalling $0.68 million in 2022, $0.70 million in 2023, $0.46 million in 2024
    and $0.31 million thereafter.



3.2           ACCOMMODATION PROVIDER COSTS

3.2.1         Application and Renewal Costs
Under the proposed local law, short stay letting and home hosted accommodation properties will require an initial
approval unless identified as exempt. Approval is required if the premises is short stay let on a permanent basis,
or a principal place of residence which is let for no more than four times and 60 days per calendar year.

Applications must include the following information:

•      A site plan and floor plan of the premises.

•      Confirmation that the premises can be lawfully used for short stay letting, either by a development approval or
       via existing use rights which comply with development approval conditions.

•      Written confirmation that the premises is in good condition, will not be used as a party house and appropriate
       safety certification has been obtained.

•      Contact person information who will be responsible for the premises and be available at all times, including
       addressing complaints and visitor queries.

Section 4 of Council’s draft Implementation Plan outlines the following application fees:

•      $300 per dwelling house and $100 per duplex or unit for Non-Principal Place of Residence premises (short
       stay letting of entire dwelling).




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