2019-02-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                     12 FEBRUARY 2019


6. Cost Recovery

Under the Local Government Act 2009 cost recovery fees can only be applied to the following:

       Renewal of a license, permit, registration or other approval under a Local Government Act
         (application fee)
       Recording change of ownership of land
       Giving information kept under a Local Government Act
       Seizing property or animals
       Performing responsibilities under the Building or Plumbing and Drainage Acts

The initial annual inspection option to use the local law to ‘license’ industrial activities and
subsequently inspect those activities, would have allowed for a cost recovery fee to be charged.
Legal advice has confirmed a cost recovery fee under a local law is not an option.

OPTION 2 Special Charge

In February 2018, a presentation was made to Council detailing the option to use a Special
Charge to recover the cost of an industrial premises inspection program.

AEC Group were commissioned to look at cost recovery options, in response to our limited cost
recovery options under the Local Government Act. The report from AEC Group was presented to
Council during previous reporting.

A summary from this report on the various cost recovery options available is presented below in
Table E.1: Summary Assessment of Inspection Program Cost Recovery Options.


 Table E.1: Summary Assessment of Inspection Program Cost Recovery Options
     Cost Recovery           Viable      Levied     Administration    Implications
     Option                 Option?       On            Cost
     General Rates             Yes        Owner           Nil          Ratepayers subsidise the inspection program in place
                                                                        to ensure compliance by the targeted ≈150 properties
                                                                       Lack of transparency
     Environment Levy          Yes        Owner           Nil          Ratepayers subsidise the inspection program in place
                                                                        to ensure compliance by the targeted ≈150 properties
                                                                       Some degree of transparency given environmental
                                                                        benefits
                                                                       Would require a policy change
     Special Charge            Yes        Owner       Initial: Low     Promotes equity (polluter pays) in that the targeted
                                                     Ongoing: Low       properties rather than ratepayers fund the program
                                                                       Need for effective communication strategy
     Voluntary Take-up +    Not Really   Occupier Initial: Moderate    Likely to only capture those doing the right thing rather
     Service Fee                                   Ongoing: Low         than those that need to be monitored
                                                                       Unlikely to produce a net benefit for the community
                                                                        (and environment)
     Local Law +               No
     Cost Recovery Fee
     Alignment with Trade      No
     Waste
 Source: AEC




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