ADMINISTRATIVE REPORT

Date: January 11, 2001
Author/Local: T.Hammel

RTS No. 01821

CC File No. 3253

Council: January 23, 2001

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	FCM Funding Request for the Municipal Rights-of-Way Defense Fund

RECOMMENDATION

THAT Council approve the request of the Federation of Canadian Municipalities (FCM) for a contribution from the City of Vancouver in the amount of $15,420 for the FCM's Municipal Rights-of-Way Defense Fund to be funded as a one-time addition to the 2001 Operating Budget.

GENERAL MANAGER'S COMMENTS

The General Manager RECOMMENDS approval of the foregoing.

POLICY

There is no applicable Council policy.

PURPOSE

This report recommends that the City provide a funding contribution to the FCM's Municipal Rights-of-Way Defense Fund to assist the FCM in defending the rights of municipal governments to set terms and conditions for use and occupation of their rights-of-way.

BACKGROUND

In 1997, the Federation of Canadian Municipalities (FCM) established the Municipal Rights-of-Way Defence Fund to fund the intensive legal and economic research required to take a "test case" before the Courts or the Canadian Radiotelevision and Telecommunications Commission (CRTC). At that time, City Council approved a grant of $14,155 toward thatfund which raised a total of $287,000.

The FCM has used funds contributed by the City and other municipal governments to present its case to the CRTC on behalf of all Canadian municipalities. Their work has complemented the City of Vancouver's work as the central party involved in the current CRTC proceeding. To date, the City of Vancouver's legal costs have been funded by the GVRD.

DISCUSSION

The CRTC is expected to make a decision on Vancouver's case in January, 2001. It is likely that the telecommunications companies, or the FCM and municipal governments if necessary, will appeal any decision that is not in their favour. The FCM intends to see this dispute through to a successful conclusion and requires additional resources to do this.

The FCM advises that it requires $75,000 to meet the financial obligations for the initial proceeding and between $50,000 and $275,000 for a possible appeal. To raise the funds, the FCM has proposed that the major Canadian cities contribute $0.03/capita with smaller municipalities contributing $0.02/capita and regional governments contributing $0.01/capita. On this basis the City of Vancouver's contribution would be $15,420.

The FCM's work in this area is of vital importance to municipal governments across Canada and accordingly, staff recommend that this funding request be approved.

Staff will report back to Council with a recommendation on city action, if any, after the CRTC has made a ruling in the current dispute.

FINANCIAL IMPLICATIONS

It is recommended that the proposed contribution of $15,420 be funded as a one-time addition to the 2001 Operating Budget. While there is no direct offset, it should be noted that revenue generated from agreements signed with telecommunications companies has grown significantly over the past few years. In 2000, the budget for these revenues was approximately $500,000 and this will be increased significantly in the 2001 budget given current projections and known agreements.

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(c) 1998 City of Vancouver