Item - 2020.EX15.12

The Executive Committee recommends that:

1.  City Council grant authority to the Director, Revenue Services to exercise the option to renew the agreement (Contract Number 47021814) with the Greater Toronto Hotel Association for the collection and remittance of the Municipal Accommodation Tax from hotels for an additional year effective from April 1, 2020 to March 31, 2021.

This report seeks Council's authority to amend Purchase Order Number 47021814 to extend the contract with the Greater Toronto Hotel Association to provide collection of the Municipal Accommodation Tax - Hotel on behalf of the City of Toronto.  Revenue Services is requesting an amendment to this contract to exercise a one-year optional extension of the term as permitted under the contract, and to add funds of $391,037 inclusive of HST and third party audit fees associated with this agreement.

The closure of Revenue Services' operations and reduced IT capacity due to the COVID-19 pandemic has delayed the development of an internal collection system for Municipal Accommodation Tax – Hotel Tax remittances directly from hotel operators. An amendment to this purchase order and extension to this contract will provide the additional time and resources required to complete the development, testing and implementation of the remittance and payment system with Technology Services. The contract with the Greater Toronto Hotel Association can be cancelled upon completion of the internal system, upon 60 days notice to the Greater Toronto Hotel Association.

The original agreement specified a term of two years, ending on March 31, 2020, but allows the option for the City to renew for up to two (2) additional one-year terms. Exercising the option to renew for one year would extend the agreement from April 1, 2020 to March 31, 2021 on the same terms. Recognizing that the cancellation of Committee and Council meetings as a result of the pandemic precluded extension of the agreement before the March 31, 2020 date, the Greater Toronto Hotel Association has continued to provide services under the contract in good faith since April 1, 2020 to the present.