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171110 Business Licensing Feasibility Report DRAFT

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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. Business Licence Feasibility Report EDC DRAFT November 10, 2017 Page 1 of 16 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) Business Licensing Feasibility Report EDC DRAFT November 10, 2017 Page 2 of 16 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. Business Licensing Feasibility Report EDC DRAFT November 10, 2017 Page 3 of 16 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
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