Item - 2021.EX24.7

The Executive Committee recommends that:

1. City Council authorize the Director, Revenue Services to exercise the option to renew the agreement (Contract 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, 2021 to March 31, 2022.

This report seeks Council's authority to amend Contract No. 47021814 to exercise the City's option to extend the contract with the Greater Toronto Hotel Association (GTHA) 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 the second 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 at the beginning of the COVID-19 pandemic delayed the development of an internal collection system for Municipal Accommodation Tax – Hotel Tax (MAT) 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 City's remittance and payment portal by Technology Services, and the transition of this service from the GTHA to the City. The contract with the GTHA can be cancelled upon implementation of the internal system, upon 60 days notice to the GTHA.

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 a second one-year term would extend the agreement from April 1, 2021 to March 31, 2022 on the same terms. The GTHA has continued to provide services under the contract in good faith since April 1, 2021 to the present.