ADMINISTRATIVE REPORT

Date: November 27, 2000
Author/Local: K.Oehlschlager/7726
RTS No. 01767
CC File: 1203
Council: December 5, 2000

TO: Vancouver City Council

FROM: General Manager of Corporate Services

SUBJECT: Renewal of Musqueam Service Agreement

RECOMMENDATION

A. THAT Council approve the renewal of the Musqueam Service Agreement (which expires on December 31, 2000) on the same terms and conditions for a three-year term (January 1, 2001 - December 31, 2003) as an interim measure until such time as negotiation of a long-term service agreement can be achieved.

B. THAT Council authorize the Director of Legal Services to approve and execute the renewal agreement on behalf of the City.

COUNCIL POLICY

City Council is the approval authority for the service agreements entered into between the City and the Musqueam Band.

PURPOSE

This report recommends an extension of the existing service agreement between the City and the Musqueam Band as an interim measure until such time as negotiation of a long-term service agreement can be achieved.

BACKGROUND

Federal and provincial legislation permits Indian Bands to levy taxes on occupiers of their lands to the exclusion of municipal taxation. The Musqueam Band, whose lands are located within the official boundaries of the City of Vancouver, opted to levy taxes under thislegislation commencing in 1991. That action necessitated the replacement of the City's prior service agreements for the two residential subdivisions located on Musqueam Indian Reserve #2. (These prior agreements had provided for all normal city services in return for payment of all taxes levied and billed by the City.)

Starting with a letter of understanding in 1991, the City and the Band eventually negotiated a new service agreement which was signed in 1994. Under the letter of understanding, initially, and later on, under the 1994 service agreement, normal city services have been provided to the Reserve in return for payments "in lieu of taxes" by the Band. The 1994 service agreement has been renewed continuously since then on an annual and bi-annual basis pending the development of a long-term agreement.

A copy of the current service agreement, without the site schedules, is on file in the City Clerk's Office.

At the request of the Band's legal counsel, the City's legal counsel has drafted and forwarded a three-year extension agreement to the Band which has been placed on the Band Council's agenda for consideration and approval at the Band's next Council meeting on December 4, 2000.

DISCUSSION

Both the Musqueam Band as well as the leasehold property owners have expressed a preference for a long-term service agreement between the City and the Musqueam Band. However, over the last few years, the many significant events involving first nations in general and the Musqueam Band in particular have made it difficult for the Band to enter into, let alone conclude, such negotiations with the City.

A long-term service agreement (on appropriate terms and conditions) would also be beneficial to the City. Such an agreement would reflect a more permanent and seamless relationship between the parties based on mechanisms to handle cost sharing and pricing of services, new development and growth/capacity issues around the maintenance, replacement and expansion of the present infrastructure (streets, sewer, water, street lighting, signage, etc.) servicing the Reserve properties, among a number of other common interests.

On the other hand, negotiating a long-term service agreement is complicated and involves a significant investment of resources. Moreover, there are currently many contingencies which may be (at least partially) resolved within the next few years such as (1) the possible adoption of a Land Code under the First Nation Land Management Act by the Musqueam Band, (2) the possible effects of the Delgamuuk decision on the City's relationship with the Musqueam Band, (3) the possibility of a settlement treaty being signed by the Musqueam Band, and (4) the outcome of the Celtic Shipyards litigation.

Staff on both sides believe the current service agreement embodies principles which can be applied to deal with specific matters on a case-by-case basis and could, over time, serve as the basis for a long-term agreement. Some steps towards this end have already been taken with the signing of the Lower Musqueam Subdivision Sewer System Connection Agreement in 1997 and with another similar agreement currently under discussion (for the Band's new Hum Lu Sum Pump Station). Each such "stand-alone" agreement applies and extends the principles embodied in the current service agreement while at the same time addressing new issues on a case-by-case basis.

City staff recommend that the current agreement be extended for an additional term of three years, in order to maintain the benefits/protections afforded by the existing agreement as well as to facilitate the ongoing work towards a permanent long-term service agreement.

RELATED ISSUES

It should also be noted that the Celtic Shipyard properties, which are located outside of the boundaries of the Musqueam Indian Reserve #2, will not be included in any service agreement, given the recent British Columbia Court of Appeal decision and the ongoing litigation over this matter.

CONCLUSION

The current service agreement between the City and the Musqueam Band covering both the Village and leasehold properties located on the Musqueam Indian Reserve #2 needs to be renewed prior to its expiry on December 31, 2000. City staff are proposing that this service agreement be renewed for a further three-year period in order that the protections/benefits contained in the current agreement may be maintained while at the same time facilitating the ongoing negotiations towards specific amendments on an issue by issue basis with a view to eventually negotiating a permanent long-term agreement.

The recommendations of this report support that position and are submitted to Council for consideration and approval.

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(c) 1998 City of Vancouver