Members Present: Mayor Milt McIver, Deputy Mayor Debbie Myles, Councillor Laurie (Smokey) Golden, Councillor James Mielhausen, Councillor Megan Myles
Staff Present: Cathy Addison, Clerk, Tessa Swanton, Deputy Clerk, Peggy Van Mierlo-West, Chief Administrative Officer, Teresa Shearer, Treasurer, Kara Smith, GIS/IT Coordinator
Others Present: Nil
Note: Members of Council and staff were present in the Municipal Office Council Chamber and the meeting was held via zoom, an electronic platform, for members of the public to attend.
Note: In the absence of the ability to vote by a show of hands, in accordance with By-law No. 2021-08, Section 3- 64.3, Council votes will be recorded for resolutions presented at electronic Council meetings.
Disclosure of Pecuniary Interest and General Nature Thereof
Mayor McIver called the meeting to order at 9:02 a.m. and Council members were reminded to disclose any pecuniary interest and the general nature thereof that may arise during the meeting.
Councillor Myles declared a pecuniary interest with respect to Agenda Item #1 “on STA regulations because I own a hostel/B&B in the Municipality (tourist accommodation).
Councillor Mielhausen declared a pecuniary interest with respect to Agenda Item #1 as “I am in a partnership with my wife in a STA operation”.
Approval of the Agenda
Resolution #21-01-2021, Moved by L. Golden, Seconded by D. Myles
That the content of the agenda be approved as printed. Carried
Having declared pecuniary interests, Councillor Myles, and Councillor Mielhausen did not participate in the following portion of the meeting.
Consideration of Agenda Items
1. Chief Administrative Officer Report No. CAO 21-24
Re: STA Bylaw (Draft)
Peggy Van Mierlo-West, CAO, informed that the meeting will include a Council review of the draft STA By-law including information on other municipal STA regulations. She requested direction regarding the by-law in terms of administrative costs, Municipal Accommodation Tax (MAT), zoning, classifications, implementation approach, complaint process, and operations. The CAO advised that next steps include a 30-day notice for public comments, a public meeting, and approval of the by-law and applicable fees and penalties.
The CAO further explained that the consultant, Skelton Brumwell and Associates Inc., will be involved in the public meeting process. The public will have an opportunity to review the proposed by-law and provide written comments to the Clerk. A public meeting will then be held for additional comments.
Council proceeded to review the CAO’s Short Term Accommodations report. Discussion was noted as follows:
• Separate Class A and B rentals are needed (smaller rental accommodations); recognize these differences in fees, etc.
• Larger Class C STAs should be grandfathered and permitted; new Class C STAs should be permitted in certain zones only
• When someone purchases a property for the purposes of creating an STA, our communities are affected
• Give a discounted fee to rentals that obtain a licence early
• Administering STA classifications would be difficult
• Limit the number of guests in STAs
• Higher licensing fees for Class C STAs
• Some disincentives for large STAs; higher licensing fees
• Some municipalities have implemented 2 guests per bedroom and 10 guests maximum per STA
• A parking management plan ensures sufficient area for vehicles
• Each STA needs to be registered with a reputable company in the area
• Majority of STAs in Northern Bruce Peninsula (NBP) fall within a Class B in terms of operations
• There is a difference between Class A and B; some rent their property only a few times each year and some purchase properties for rental purposes only
• Renters pay higher Municipal Accommodation Tax (MAT) based on the size of the property they are renting; classifications may not be needed
• Consider a smaller licensing fee for all STAs
• Classifications are needed to implement various policies and regulations in the future; different types of renters
• Make the program as easy as possible to administer
• STA By-law objectives are correct
• NBP recommending a similar process to Ottawa; involving Building and Planning Departments; the Health Unit; and sewage system, water, and fire inspections
• Review sewage system records for each property including capacity sizes; owners are responsible to provide records if no records are available at the Municipal Office
• Building Department will complete a visual inspection of each sewage system
• Avoiding a classification system would make administration easier
• Oversized STAs should require a commercial zone; a zoning amendment may be required
• Large STAs must comply with Class C regulations if they wish to obtain a licence
• Reputable online platform register; communicate to Airbnb the maximum number of guests permitted per property
• Request each STA to provide a property manager and supply contact information
• A Holding Zone will be placed on larger developments that have greater than 10-12 guests per property and owners could apply for a zoning amendment (commercial zone)
• Do not permit renting accessory buildings; principle residence only
The CAO proceeded to summarize direction as follows:
• Accessory buildings are not permitted in the STA By-law to be rented as an STA
• Sewage system capacity information and compliance is a requirement to obtain an STA licence
• Class C STAs will have a Holding Zone placed on the property
• Proposed Class A and B STAs will now be combined into one category as per the direction of the majority of Council
Discussion continued:
• Graduated implementation approach
• Reduced rates available for 6 months; as of January 1, 2022 begin the full licensing process
• Agree with proposed compliant process
• Share MAT revenues with Tobermory and District Chamber of Commerce
• STAs permitted in R1 and R2 zones only
• A licence issuer is defined as the proposed Director of Legislative Services and Development, Clerk, or CAO
• A “person” within the by-law definitions includes an infant
• Tax certificates will indicate changes in ownership and STA licences will be cancelled on the closing date of the property
• Licences shall include an owner name (or corporation name) and property manager contact information
• A local property manager is required if you are not living in the area to avoid absentee landlords
• Council is designated as the appeal body, which may change to the Senior Management Team in the future if directed by Council
• The STA licence will be posted inside the house and a public registry will be available online for public viewing
• Schedule A to the by-law will be a map outlining permitted STA areas
• Class A/B has a maximum of one rental unit per property
• Initial proposed licensing fees were the highest in the Province
• $500 for initial licensing fee and a $500 annual renewal fee with MAT for Class A/B
• $1500 initial licensing fee for Class C STAs and $1500 renewal fee
• STA inspection fee is $500 for required inspections in addition to the $500 licensing fee for Class A/B and $1500 for Class C
• Some STA owners may express that they were unaware of STA licensing regulations
• STA regulations will be posted on the website, in the newspaper, and in a local flyer and tax notice
• Ontario Building Code inspections will also be a licensing requirement
• One parking space is required per bedroom
• The majority of STAs are single ownerships; 5% of current STA inventory have multiple ownerships; consider a separate classification for multiple ownerships
There was a break in the meeting at 10:30 a.m.
The meeting reconvened at 10:39 a.m.
• Make MAT applicable to STAs only and consider hotels and motels in the future
• MAT is a 4% tax that is added onto the cost of accommodations paid by the visitor and remitted to the Municipality
• Have yet to provide requests for comments on MAT to providers; other municipalities have online platforms collect the tax and remit on a quarterly basis
• Request audited statements to verify validity of MAT remittance
• Owner will remit the MAT to the Municipality and staff will compare the remittance to data on software; have to be a registered provider with the Municipality
• The proposed software provider is a Canadian company (outside of Toronto) with a live customer service and complaint process
• Other municipalities that have STAs recommend this company to manage STAs; an online portal
• The software provider can identify properties that are operating STAs without a licence
• Municipalities own the data collected by the company
• A Director of Legislative Services, Building and Economic Development and an Administrative Assistant will be hired to oversee the STA licensing process and MAT revenue will be used to cover applicable salaries
The CAO will bring back a report to Council recommending approval to purchase the services of HAMARI STR and authorization to sign the service agreement.
Resolution #21-02-2021, Moved by L. Golden, Seconded by D. Myles
THAT Council receives the report titled STA Bylaw (Draft);
AND THAT Council provides direction regarding the Northern Bruce Peninsula STA Bylaw. Carried
Councillor Myles and Councillor Mielhausen resumed participation in the meeting at this time.
Other Business
Nil
Reading of By-Laws
Resolution #21-03-2021, Moved by D. Myles, Seconded by L. Golden
By-law No. 2021-69
Being a By-Law to Confirm the Proceedings of the Special Council Meeting of The Corporation of The Municipality of Northern Bruce Peninsula Held Monday, June 28, 2021
That the listed by-law(s) be given 1st, 2nd, and 3rd reading, and enacted. Carried
Adjournment
Resolution #21-04-2021, Moved by L. Golden, Seconded by D. Myles
That the meeting adjourns at 10:56 a.m.
