To: Mayor and Council, Bowen Island Municipality

From: Economic Development Committee

Date: EDC DRAFT FOR DISCUSSION MEETING Nov 10 Meeting Date: November 27, 2017

Subject: Business Licensing Feasibility Report

RECOMMENDATION That Council direct staff to review the “Business Licensing Feasibility Report” presented at its meeting of November 27, 2017, and identify next steps and resources required for the implementation of a business licensing program; and

That Council consider the implementation of a business licensing program as a priority under Strategic Pillar F – Robust and Resilient Local Economy in Island Plan 2018.

PURPOSE To provide Council with background information and recommendations regarding the feasibility of a business licensing program for Bowen Island.

DIRECTION FROM COUNCIL This report responds to Council Resolution #16-249 (July 25, 2016): That Council direct the Economic Development Committee to include in its 2017 work plan the feasibility of implementing municipal business licensing and report back to Council with those recommendations by April 2017.

The April 2017 due date was revised, given turnover in the membership of the Economic Development Committee and a delay in establishing the Business Licensing Task Force.

BACKGROUND The Community Charter gives a municipal council the ability to adopt a bylaw that requires business licensing within its jurisdiction. Business licensing programs are generally intended to • help ensure public health and safety • help ensure businesses are accountable for their actions • increase knowledge and understanding of the economy and businesses in a community • help provide adequate data for planning purposes, and • enable business networking and promotion

According to 2016 statistics from the then Ministry of Community, Sport and Cultural Development, there are 162 municipalities in British Columbia and almost all require business licences. Within the 21 municipalities included in Metro Vancouver, only two (Bowen Island and Lions Bay) lack a business licensing program.

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Bowen Island Land Use Bylaw (LUB) Section 3.40 requires that “Each business and home occupation shall have a valid business licence issued by the Municipality prior to commencement.” All businesses and home occupations on Bowen Island are therefore in contravention of the LUB, through no fault of their own, because Bowen Island Municipality has not established a business licensing program.

Municipal staff completed a significant amount of work on business licensing in 2004 (see Attachment 1); however, Council did not direct staff to proceed with the development of a business licensing policy and bylaw.

No staff work appears to have been undertaken in the intervening years.

SCOPE OF WORK The Business Licensing Task Force limited its scope of work to providing sufficient background information for Council so that Council can decide whether municipal staff should be directed to complete further work on a business licensing program.

This report does not assess in detail the impacts on BIM staff and other resources because those impacts would be related to the breadth of the business licensing program and degree of enforcement; therefore, resource impacts are considerations at the implementation stage.

The report also does not address in depth issues related to short-term rentals (for example, the use of platforms such as Airbnb or VRBO to market accommodation that is not designated as a B&B, Commercial Guest House, or Guest House); however, municipalities typically rely on business licensing, among other tools, to begin to address these issues.

METHODOLOGY To conduct this feasibility study, the Economic Development Committee established a Business Licensing Task Force in February 2017. Task Force members are EDC Co-Chair Chris Corrigan, Rod Marsh, Councillor Maureen Nicholson, Barry Pynn, and Shana Richmond. The Task Force met on six occasions (February 23, March 16, April 13, August 14, September 1, and October 23) to discuss its purpose, set direction for its work, assign tasks, review findings, and draft recommendations for this report.

The report also reflects input from the Economic Development Committee as a whole.

The following activities inform this feasibility study:

A. A presentation on and discussion of business licensing at the EDC Business Summit (Oct 18, 2016) B. A structured review of online information related to business licensing programs in 16 Comparator Communities (May–July 2017) C. A telephone interview with a representative of BizPaL, an online business permit and licence information system (Aug) D. Follow-up telephone interviews with senior staff in five selected Comparator Communities (Aug–Sept) E. A telephone interview with the District of North Vancouver Property Use/Business Licence Coordinator (Oct)

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F. Email and telephone consultation with the mayors and some senior staff of Anmore, Belcarra, and Lions Bay (Aug) G. A short online survey of local contractors (Sept) H. Ongoing liaison regarding the proposed Metro Vancouver regional licensing program for contractors and film production (Sept) I. Email consultation with various inspection agencies (Oct)

SUMMARY OF FINDINGS BY RESEARCH TOOL

Part A: A presentation on and discussion of business licensing

The EDC-sponsored Business Summit (October 18, 2016, at the Bowen Island Lodge) brought together more than 75 community members for presentations on branding and business licensing (see Attachment 2 for the PowerPoint “Licensing for Bowen Island Business”). Staff prepared a summary of the small-group discussions on business licensing (see Attachment 3, “EDC Summit Meeting,” pp. 5-7), excerpts from which follow:

Key insights/advantages: The timing is right. Better information about business in the community. Leveling the playing field with off-island contractors. Improved networking and collaboration. Greater safety.

Key concerns: Irreversible decision. Slippery slope of over-regulation. Limiting entrepreneurship. Added bureaucracy. Confidentiality concerns. Definition of a “business.”

A commitment was made to bring back any proposed business licensing program for further community feedback.

Part B: A structured review of online information

The Business Licensing Task Force began with a list of 16 “Comparator Communities” to review how other communities present their business licensing program to the public. The communities are Gibsons, Golden, Grand Forks, Lake Cowichan, Lantzville, Metchosin, Oliver, Osoyoos, Peachland, Pemberton, Rossland, Sechelt, Sooke, Sparwood, Tofino, and Ucluelet. These communities are similar to Bowen Island in size, budget, average home price, degree of isolation, and proximity to urban centres. The list is used within Bowen Island Municipality for a number of purposes, including setting appropriate levels for municipal salaries.

Of the 16 communities, all but one (Lantzville) require business licences. Lantzville intends to introduce a business licensing program in the near future.

Summary of comparator communities: Attachment 4, “Comparator Communities,” summarizes the results of the review of online information regarding business licensing. In some instances, the information is incomplete but represents what is available to the public.

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Review questions and basic findings: 1. How many licences are issued annually? Generally, not clear from municipal websites. 2. Are any businesses exempt? In about 40% of the Comparator Communities, non-profit organizations do not require a business licence. Otherwise everyone conducting business, broadly defined, is required to obtain a licence. 3. What is the range of annual fees? Broad range from $35 to $800+. Based on type of business and sometimes on number of employees. Not based on annual revenue. 4. Is your community part of a mobile licensing system? Seven communities are part of a mobile/intermunicipal system. 5. How many mobile licences are issued? Unclear. 6. Are you anticipating any changes to your business licensing program? Only in Ucluelet and Tofino. 7. Do secondary suites require a business licence in your community? No in 15 communities; unclear in 1. 8. Do short-term rentals require a business licence? Yes in 14 of the 16 communities. 9. How do you respond to non-compliance? Suspension of business licence and fines up to $10K. 10. Does business use of home require a licence? Yes in 13 of 16 communities. 11. Do you know the percentage in compliance for business use of home? Unknown. 12. What is the range of fines you apply? Zero to $10K. 13. What are your enforcement methods? Suspension, cancellation, fines. 14. Do you use an online system for licensing? Yes in five communities through the provincial government’s BizPaL; otherwise a printable form. 15. Who developed this system? Province, if anyone. 16. Do you have a standalone licensing department? One community has a Licensing Department. Unclear in most cases; otherwise Planning, Admin, Bylaw, or Inspector. 17. How are revenue and costs allocated? Appears to be to General Revenue and Admin.

Part C: BizPaL interview

Task Force member Maureen Nicholson contacted BizPaL to discuss its potential for use by Bowen Island Municipality. Policy analyst Kimberley Garside provided a thorough introduction to the Canadian online portal which provides access to information about business permits, licences, and other requirements for establishing, operating, and growing a business. See Attachment 5, “BizPaL Introduction.”

Five of our Comparator Communities use BizPaL.

This service can be provided free of charge to the Municipality and launched quickly. The steps involved include: 1. Sign a letter of intent (a nonbinding agreement that clarifies roles, tasks, and timelines). See Attachment 6 for a sample LOI. 2. Collect permits and licence information. 3. Upload to BizPaL database. 4. Connect with the national database (optional, depending on need). 5. Within 14 days, soft-launch and test. 6. Within a month, formal launch with a joint news release from the three levels of government.

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Benefits to the Municipality include provision of an annual report, inclusion of building and other permit information in the system, and easy access to any federal or provincial permitting or licensing information.

BizPal functionality does not include an online payment system. This option was one of the primary reasons for investigating BizPaL. Payment is made through traditional paper-and-pay systems or, in the larger municipalities, through proprietary or off-the-shelf software such as Muniware.

In discussion with BIM staff, we determined that the current BIM financial management system, Municipal Accounting Information System (MAIS), offers a module for online payment of business licences.

Part D: Follow-up telephone interviews Business Licensing Task Force members Barry Pynn and Shana Richmond made follow-up calls to senior staff in Gibsons, Lantzville, Pemberton, Sechelt, and Ucluelet.

Follow-up questions: 1. What benefits has business licensing provided to your community? 2. What are some of the more common issues that arise with business licensing? Follow up: How have you been able to address these issues? 3. What types of enforcement issues have you had to deal with and how were you made aware of them? 4. What is the general opinion of the business owners around licensing? 5. What percentage (if part of mobile licensing program) of the businesses operate in other municipalities and have there been any issues around that? 6. (If applicable) Could you tell us about your experience using BizPaL? Would you recommend we consider using it, too? 7. How are costs allocated? For example, if a fire inspection is performed, does part of that cost get allocated to licensing? (Are fees/costs required to be neutral?) Can you give some examples of how costs are allocated and what other departments are typically involved? 8. What areas (if any) of the licensing program could be improved in your opinion?

Key findings:

Town of Gibsons Sue Booth, Bylaw Officer

1. What benefits has business licensing provided to your community? • When licensing was first set up, a portion of the funds went to the Chamber of Commerce. Now the funds go into general revenue and helps funds bylaw enforcement in general. • It is a way of monitoring what businesses are operating in the community. • Provides a list of businesses (on the muni website) operating in the community making services easier to access.

2. What are some of the more common issues that arise with business licensing? (Follow up: How have you been able to address these issues?) • Not too many issues. They don’t actively look for infractions.

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• Zoning issues. Businesses setting up in areas not zoned for. • Possibly too many categories of licences. They may be reducing the numbers. • Business licensing is handled by one person who also does Bylaws and Animal Control, so there is not a lot extra time to track down non-compliance.

3. What types of enforcement issues have you had to deal with and how were you made aware of them? • Businesses that don’t renew and they have to then follow up until they pay. Issue fines if they don’t pay. Time consuming. Fines sometimes not collected. • If a business (trades was the example) from another area comes to the town hall to get a one-time small job licence, they usually don’t make them get one. General contractors would be required to have them.

4. What is the general opinion of the business owners around licensing? • Part of doing business and what is in it for me.

5. What percentage (if part of mobile licensing program) of the businesses operate in other municipalities and have there been any issues around that? • One year into an agreement with Sechelt. Small in number at this time and haven’t compared notes with Sechelt, so they are not sure of the exact number but don’t think it is significant. They were concerned at first that businesses (especially mobile ones) might get their licence from Sechelt as they charge less.

6. (If applicable) Could you tell us about your experience using BizPaL? Would you recommend we consider using it, too? • No and they do not accept credit cards or online payments.

7. How are costs allocated? For example, if a fire inspection is performed, does part of that cost get allocated to licensing? (Are Fees/costs required to be neutral?). Can you give some examples of how costs are allocated and what other departments are typically involved? • No special allocation. Fees go into General Bylaw Admin revenue and costs are put against the Bylaw department. No other costs (for example, fire inspections) are allocated to Bylaw. No requirement to be revenue neutral and overall offsets costs of the general Bylaw operations.

8. What areas (if any) of the licensing program could be improved in your opinion? • Access to business information when the Bylaw officer is out and about. They have to come back to the office to access information.

Other points covered: • Six hundred annual renewals with 40 to 50 expected to not renew for various reasons. Approximately 40 of these are B&B type operations. $97K in fees. Banks pay $600. • There are no special or active methods to search out new businesses. Facebook is sometimes reviewed as are Airbnb website listings. Most of the new licensees come in on their own or they hear about them through complaints from the general public or other businesses.

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District of Sechelt Mark Dalaire, Planner

1. What benefits has business licensing provided to your community? • Identifying businesses that are non-compliant with zoning regulations. • Knowing what types of businesses are operating in the community.

2. What are some of the more common issues that arise with business licensing? (Follow up: How have you been able to address these issues? • Businesses operating in areas not zoned. In one case the business was required to be moved to an area zoned for that type of business.

3. What types of enforcement issues have you had to deal with and how were you made aware of them? • Have not been many issues. Parking issues around B&Bs. • One event where someone’s incubator business had grown and changed (storing chemicals) and operating in a residential neighbourhood. Complaint from neighbour.

4. What is the general opinion of the business owners around licensing? • Just another cost of doing business. • Sometimes there are additional costs incurred coming from getting a business licence. For example, signage has to be compliant and a conforming sign is an additional cost to the business.

5. What percentage (if part of mobile licensing program) of the businesses operate in other municipalities and have there been any issues around that? • TBD but not a large number.

6. (If applicable) Could you tell us about your experience using BizPaL? Would you recommend we consider using it, too? • Not used. Occasionally they receive an application through BizPaL or One Stop but this usually results in duplication as the application is not the same as the municipality’s.

7. How are costs allocated? For example, if a fire inspection is performed, does part of that cost get allocated to licensing? (Are Fees/costs required to be neutral?). Can you give some examples of how costs are allocated and what other departments are typically involved? • Fees are allocated to Bylaws revenue and there is no specific cost allocation to different departments.

8. What areas (if any) of the licensing program could be improved in your opinion? • Would like license fees be scaled in some form to the size and type of business. Right now a large business pays the same fee as a small business. • Zoning/Bylaws stipulate that there are different requirements for short-term stay rentals vs. B&B operations. Right now no inspections required for short-term stay rentals, but there are for B&Bs. • Sometimes there may be two businesses operating in the same space, but right now they only require one licence. In the future they may charge for each business.

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Other points covered: • Flat $125 business license fee regardless of the size of the business. +$50 for intermunicipal. • Identification of businesses operating without a licence is largely complaint-driven. Sometimes they see a new business advertising in the local paper, and they will follow up if the business doesn’t come to them. • Not concerned with small home-based businesses (for example, online sales on a small scale). • Accept credit cards for payments but no e-transfers. • Not concerned with trades, for example, coming into the community to do short-term day jobs. • There Is some work done in conjunction with Vancouver Coastal Health for health-related inspections. • The planner was not sure if the Fire Department was charging for inspections or not.

Village of Pemberton Suzanne Belanger, Chief Administrative Officer

1. What benefits has business licensing provided to your community? • Planner uses license list to monitor B&Bs and other businesses to ensure zoning restrictions are adhered to. • Beneficial to the health and safety of the community. • Enables them to more easily review utility use/rate (water, septic) when they know there is a business operating at the address. • Cheapest advertising a business can get. (Businesses listed on the municipal website.)

2. What are some of the more common issues that arise with business licensing? (Follow up: How have you been able to address these issues?) • Collection of fees. Requires monitoring including businesses no longer operating. They use an aged receivables list to follow up. • Levels of fees and classification of the businesses. For example, registered massage therapists require medical certification and have a different fee charged. • Number of parking spaces for the type of business licensed. • Health/Fire inspections. They fire-inspect B&Bs. • As the community is growing fairly rapidly, businesses are opening at a faster rate as well. Airbnb is becoming a much bigger issue. • Identifying home-based businesses. Still rely a lot on word of mouth. • Can’t always identify when contractors come from other areas. Rely on the contractor to get a licence.

3. What types of enforcement issues have you had to deal with and how were you made aware of them? • Enforcement hasn’t been a large issue and respond on a complaint basis. Staffing an issue. • Parking is a common issue around business licensing and bylaws. • Work with Vancouver Coastal Health to ensure certain businesses are inspected and adhere to their guidelines (for example, registered massage therapists and tattoos). • Penalty for not paying license renewal on time (100% after a certain date).

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4. What is the general opinion of the business owners around licensing? • Another tax. Most understand the need for it. The advertising via listing on the website has helped the attitude towards licensing.

5. What percentage (if part of mobile licensing program) of the businesses operate in other municipalities and have there been any issues around that? • Not currently doing, but they are reviewing it.

6. (If applicable) Could you tell us about your experience using BizPaL? Would you recommend we consider using it, too? • No.

7. How are costs allocated? For example, if a fire inspection is performed, does part of that cost get allocated to licensing? (Are Fees/costs required to be neutral?). Can you give some examples of how costs are allocated and what other departments are typically involved? • They separate out business licensing fees and record hours spent on licensing but do not allocate costs against that. If there is fire/building Inspection, the business pays a fee for that ($50).

8. What areas (if any) of the licensing program could be improved in your opinion? • Trying to streamline their process and ensure that all departments are aware of issues arising.

Other points covered: • If a business operates out of a strata or rental location, a letter from the strata or owner is required. • BC One Stop (Service Canada) provides an email list of businesses that have registered with them in the Sea-to-Sky corridor. • Currently allow five mobile food vendors to operate in Pemberton. • 325 business licences issued; population is 2700. • They use Facebook to help identify new businesses operating in the area. • Outside contractors pay the same fee whether they come in for one day or multiple times in a year. • Airbnb is a growing issue and they feel they haven’t identified all of them. • Farmers’ market pays double the licensing rate which includes the vendors and it is the markets responsibility to ensure that Vancouver Coastal Health and Fire Department regulations are adhered to.

District of Lantzville Ron Campbell, Chief Administrative Officer Lantzville does not have a business licensing program, but the CAO intends to introduce one shortly. He has never worked in a community that lacks licensing and believes its absence is not in the best interests of the community.

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Town of Ucluelet Caroline Bidwell, Chief Financial Officer

1. What benefits has business licensing provided to your community? • Indirectly identifies accommodation businesses (including Airbnb) which are charged an accommodation tax (similar to a hotel tax) MRDT. • Helps to ensure the safety of the community. • Pays for bylaw staff.

2. What are some of the more common issues that arise with business licensing? (Follow up: How have you been able to address these issues?) • Zoning bylaw issues/parking • Transparency around fees. Sometimes questions how they come up with different level of fees • They are reviewing fees and the different categories they have. • They have issues with businesses coming in from other areas and operating there (for example, tour boat operators). Deal with it by identifying them on bylaw outings. • Fee collection. letters, fines. • Payment methods are not ideal, as there is no credit card payment and e-transfer payments are expensive (fees paid by the licensee and the municipality).

3. What types of enforcement issues have you had to deal with and how were you made aware of them? • Not too many direct but there may be some such as parking issues around businesses

4. What is the general opinion of the business owners around licensing? • Just generally accepted as a part of doing business. • B&Bs give them some kickback as to why they have to pay for a business licence.

5. What percentage (if part of mobile licensing program) of the businesses operate in other municipalities and have there been any issues around that? • No mobile or intercommunity licensing program but are considering it.

6. (If applicable) Could you tell us about your experience using BizPaL? Would you recommend we consider using it, too? • No. Weren’t aware of it.

7. How are costs allocated? For example, if a fire inspection is performed does part of that cost get allocated to licensing? (Are Fees/costs required to be neutral?). Can you give some examples of how costs are allocated and what other depts. are typically involved? • No allocation done. Fees go into general revenue and costs are part of bylaw enforcement. They are researching new accounting systems at this time and may consider more detailed breakdown of licensing revenues and costs once those systems are in place.

8. What areas (if any) of the licensing program could be improved in your opinion? • Improve the application • Explore intermunicipal (mobile) licensing

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• Ensure all municipal staff understand the role business licensing program plays in the community.

Other points covered: • Criminal record checks required where businesses are dealing with children or seniors. • Actively seeks out businesses requiring a licence, especially accommodation businesses which are a large part of their approximately 400 business licences. • They use Facebook and Airbnb sites. The local post office also contacts them any time a business wants to set up a PO box to ensure the business is legitimate. • Garbage collection notes suites and passes information along to bylaw. Utility usage is also monitored for unusual usage levels. • They attempt to collect business licence fees from online businesses that sell into Ucluelet.

Part E: Telephone interview with District of North Vancouver Property Use/Business Licence Coordinator Task Force member Maureen Nicholson interviewed DNV Property Use/Business Licence Coordinator Zdenka Novakovic, who has more than 12 years’ experience in her position. The District works with a bylaw established in 1974 that has been amended over the years.

Key points:

• DNV issues over 5,000 business licences each year. Companies are listed online on the DNV website. • All businesses are required to have a licence, with the exception of federal or provincial government or agency offices, and BC Hydro and Terasen workers. • Non-profits must apply for a licence and provide a copy of their incorporation papers. No fee is charged. The purpose of the application is to ensure safety. • Fees range from $141 to $4,574.80. The highest fees are charged for companies with many employees and for companies such as escort services. • Best not to copy DNV’s bylaw and fee schedule. It is based in part on type of business and the number of employees, which can be underreported in order to reduce the licence fee. • DNV is currently looking at alternatives for its fee structure: collapsing the categories, using a base rate for all businesses, and then using square footage rather than number of employees as the factor to escalate the licence fee. • Other communities (for example, Burnaby) charge a higher rate in the first year given inspections required and then drop the rate in subsequent years. • Has strong reservations about a regional licensing program with concerns relating to fair distribution of funds and enforcement (the activity level required and costs). • Unclear about the number of non-resident businesses operating in DNV. Difficult to determine. • Will not issue licences for marijuana and related businesses. Uses high fees to discourage some types of businesses, but these also often face constraints from the RCMP, Vancouver Coastal Health, and the Liquor Control Board. • Reviews all applications for consistency with the Land Use Bylaw. Planning review comes first. • Secondary suites do not require a business licence, but they must be registered and pay extra utility fees charged as part of property tax.

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• “Airbnb” is not a permitted use, though they do exist. There is an upcoming council workshop to help address the issue. • B&Bs require a business licence, as does business use of home (restrictions include square footage, number of employees, parking). The business must be conducted by a resident of the home and they require proof of residency. • For paper applications, a clerk inputs information. Applicant must pay at time of application. • Non-residents can apply by email or online. • Function is now part of Planning, Permits and Licensing. Originally was part of the Building Department. • Completed a microanalysis a few years ago to ensure cost recovery, revenue neutrality. • Recommended that if we find we underestimate fees, recoup costs over a five-year period, if necessary, rather than introducing any large adjustments to fees. • Don’t make it onerous for people and staff: Keep things simple. It is also difficult to take a system online if too many categories, fees, etc., are used. • Promote the resources of Small Business BC to business owners to help with start-ups and business retention.

Part F: Consultation with mayors Metro Director Maureen Nicholson contacted the mayors of the three other small Metro Vancouver municipalities regarding business licensing programs.

Anmore: Mayor John McEwan confirmed that Anmore requires business licensing through the Village of Anmore Bylaw No. 26, 1999: A bylaw to provide for the licensing and regulating of businesses. This bylaw is exemplary in its brevity and clarity. See Attachment 7.

Belcarra: Mayor Ralph Drew confirmed that Belcarra requires business licensing through the Village of Belcarra Business Licence Bylaw No. 227, 1995. CAO Lorna Dysart confirmed that the village issues approximately 25 business licences annually, mostly to contractors and film production companies. The primary means of bylaw enforcement for contractors is through the building inspector, who informs contractors on site when a licence is required. CAO Dysart does not consider business licensing to be an administrative burden.

Lions Bay: Mayor Karl Buhr confirmed that Lions Bay does not require business licensing. Mayor Buhr believes that the administrative and enforcement effort is not worth the added revenue and control. There are apparently home-based businesses in Lions Bay, but there is no clear understanding of the number and type, or of their contribution to the local economy. Lions Bay has introduced Temporary Use Permits for short-term rentals and B&Bs, but no business licensing as such.

All three mayors are following the Metro Vancouver regional licensing program initiative with interest.

Part G: Survey of local contractors Using Survey Monkey and recommended contacts from Task Force member Rod Marsh, staff issued an invitation to 66 local contractors to participate in a two-question survey on intermunicipal business licences. Twenty-three responses (35%) were received.

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Q1: Do you currently No: 14 (61%) have business licences to Yes: 9 (39%) work in other municipalities? If yes, which District of North Vancouver (4), City of North Vancouver (3), West communities? Vancouver (1), Squamish (2), Vancouver (2) (Note: Some respondents hold licences in multiple communities.) Q2: Would you be No: 16 (70%) interested in Yes: 7 (30%) intermunicipal business licences? Why? • We work all over the Lower Mainland without one now. We would be interested only if it was very inexpensive. • I don't need to purchase business licenses because my work is considered to be a professional consultation service. • Because business licences are mostly just a municipal tax grab. I think licensing for specific types of business that need regulation is useful at times to control certain industries. • I work in various jurisdictions… some, but not all, require me to have a business licence. • I only work on Bowen. • North van West van Bowen Easier to work and licence probably cheaper if part of all the North Shore municipalities. • I think it would be much fairer if a trade or company would pay only where they may be working. In the overall analysis I think you would find most trades would work only within one municipality. • Costs kill my ability to run my business. • Main business is in Vancouver, by far.

Part H: Metro Vancouver regional licensing program Work has been underway for more than a year on a business licensing program for all of Metro Vancouver (21 municipalities, 1 electoral district, and a treaty First Nation) as part of a Regional Prosperity Initiative led by Board Chair Greg Moore. This program would be in addition to the existing suite of intermunicipal (or mobile) licences offered in specific subregions (see https://www2.gov.bc.ca/gov/content/employment-business/business/small-business/mobile-business- licence-program).

The regional licensing program is intended for contractors and film production. It is still in the formative stages, with a yet-to-be determined launch. Both Metro Director Maureen Nicholson and BIM Senior Bylaw Officer Bonny Brokenshire have participated in planning meetings and will continue to do so.

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Part I: Inspection agencies The Business Licensing Task Force contacted the following for input on this study: • Bowen Island Fire Department • Vancouver Coastal Health • Workers Compensation Board The Fire Department and Vancouver Coastal Health expressed support for a business licensing program. See Attachments 8 and 9. The Workers Compensation Board did not respond.

BUSINESS LICENSING TASK FORCE RECOMMENDATIONS

1. Include business licensing implementation as a strategic priority related to economic development in Island Plan 2018. 2. If business licensing is supported after further study by staff, implement the business licensing program in July 2018. Alternatively, implement the program for calendar year 2019. 3. House the licensing function in the Planning Department, with support from Communications, Finance, and Bylaw.

4. Require all businesses to obtain a business licence. 5. Require non-profit organizations to register but waive the licensing fee. 6. Require non-resident businesses operating on Bowen Island to obtain a business licence. 7. Require B&Bs, Commercial Guest Accommodation, and Guest Houses to obtain a business licence. 8. Require a business licence for an attached or a detached secondary suite if the owner of the property is non-resident.

9. In principle, keep the fee schedule simple, the categories few, and the fees low, commensurate with the small scale of our community. 10. Investigate the Municipal Accounting Information System (MAIS) module for online payment. 11. Do not pursue BizPaL as an option for licensing applications.

12. Convey the rationale for business licensing clearly to the community, emphasizing the ease and simplicity of obtaining a licence. 13. Develop a communications strategy for business licensing, including the production of an informational brochure, a dedicated web page that outlines benefits to business and the community, an online form/downloadable PDF, an online publicly accessible database of business names, and options for payment including e-transfers. 14. Update the community on business licensing at the EDC Business Summit in January 2018.

15. Develop an education and enforcement strategy for business licensing, including raising awareness regarding appropriate land use. 16. Use the business licensing program to begin to address issues related to short-term rentals.

17. Defer discussion with the North Shore municipalities regarding participation in an intermunicipal licensing agreement. 18. Continue to monitor the progress of the Metro Vancouver work on a regional licensing program for contractors and film production.

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FINANCIAL IMPLICATIONS Business licensing must be revenue neutral and cost recovery. If Council approves proceeding with licensing, start-up costs will primarily be for staff time and the legal review of draft bylaws. Once the licensing program is operational, costs can be monitored and fees adjusted if required.

COMMUNICATION STRATEGY Information will be communicated to the public through the usual municipal communication tools (municipal website, Island Page, social media) as well as through council meeting agendas and minutes during the development of required bylaw(s) and fee schedule. Materials will be developed as needed through the Communications Team. The EDC Business Summit planned for January 23, 2018, offers an opportunity for face-to-face communication about a business licensing program.

OTHER IMPLICATIONS If Council does not approve proceeding with business licensing, then it could consider deleting the requirement for a business licence stated in the Land Use Bylaw Section 3.40. Alternatively, Council could allow the section to remain and choose to continue to not enforce the section.

CONCLUSION Introducing a business licensing program would complete an initiative that began in 2004 and stalled. Such a program would help us better understand the economy of our community, allow for better planning, and enable support for Bowen businesses. While significant work would be required to establish business licensing for Bowen Island, once in place the program would be a routine part of our municipal operations, as it is in almost all municipalities in British Columbia.

ALTERNATIVES 1. That Council direct the Economic Development Committee to address specific issues and concerns related to business licensing identified at the Council meeting of November 27, 2017, and to submit a revised feasibility report to Council to allow for the potential inclusion of a business licensing strategic priority in Island Plan 2018. 2. Other direction as provided by Council.

Attachments: Attachment 1: Council report dated July 12, 2016, from Councillor Maureen Nicholson regarding “Business Licensing Recommendations from the Economic Development Committee,” including Council report dated September 15, 2004, from Bylaw Enforcement Officer Chris Buchanan to CAO Isabell Hadford, “Business Licensing on Bowen Island” Attachment 2: PowerPoint from October 18, 2016, EDC Business Summit, “Licensing for Bowen Island Business” Attachment 3: Summary from October 18, 2016, “EDC Summit Meeting” Attachment 4: “Comparator Communities” Attachment 5: BizPaL informational PowerPoint

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Attachment 6: BizPaL, Sample Letter of Intent Attachment 7: Village of Anmore Bylaw No. 26, 1999: A bylaw to provide for the licensing and regulation of businesses Attachment 8: Letter dated October 17, 2017, from Acting Manager Health Protection Mark Ritson, Vancouver Coastal Health Attachment 9: Email dated October 19, 2017, from Fire Chief Ian Thompson, Bowen Island Fire Department

SUBMITTED BY:

__{ORIGINAL SIGNED} ____

Councillor Maureen Nicholson for the Business Licensing Task Force Economic Development Committee

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