SUPPORTS ITEM NO. 4
CS&B COMMITTEE AGENDA
JULY 25, 1996
ADMINISTRATIVE REPORT
Date: July 2, 1996
TO: Standing Committee on City Services and Budgets
FROM: General Manager of Corporate Services
SUBJECT: Renewal of Musqueam Service Agreement
RECOMMENDATION
A. THAT Council approve the renewal and extension of the
recently expired Musqueam Service Agreement for a subsequent
one year term (January 1, 1996 to December 31, 1996) on the
same terms and conditions, pending completion of
negotiations between City staff and the Musqueam Band on the
content of a longer-term service agreement, and authorize
the Director of Legal Services to sign the extended
agreement on behalf of the City.
B. THAT staff be instructed to report back to Council later
this year on the terms and conditions negotiated and
embodied in a longer-term service agreement between the City
and the Musqueam Band for consideration and approval.
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 a one year extension of the recently expired
service agreement between the City and the Musqueam Band pending
completion of the current negotiations on a longer-term service
agreement.
BACKGROUND
Federal and provincial legislation now 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, has opted to levy taxes
under this legislation, commencing in 1991. That action necessitated
the replacement of the City's service agreements respecting the two
residential subdivisions located on Musqueam Indian Reserve #2, which
provided for all normal city services in return for payment of all
taxes levied and billed by the City.
The Directors of Legal Services and Finance have been involved with
service agreement discussions with representatives of the Musqueam
Band and the leasehold residents on the Reserve since the fall of
1990, leading up to the present service agreement which expired on
December 31, 1995. In approving the recently expired service
agreement, Council resolved:
- that the draft Agreement dated June 16, 1994, be approved,
subject to the amendments as set out in the letter dated
July 27, 1994, from Mr. Lawrence Fast, General Counsel,
Musqueam Indian Band, to the Director of Finance; and,
- that the City provide notice of its intent to phase out
cost-sharing of administrative costs associated with the
separate tax system, in future agreements.
The service agreement was amended as instructed and signed by the City
on August 10, 1994. A copy of that agreement without the site
schedules is appended to this report for information.
DISCUSSION
Given the nature of negotiating a longer-term service agreement, both
parties, the City and the Musqueam Band, wish to ensure that all
salient matters be appropriately reflected in the discussions. Staff
were hopeful that the negotiations could be concluded with a new
service agreement in place before now, but that objective will not be
met. We will soon have a working draft of a replacement service
agreement, which will reflect both party's interests. These interests
will then be fine-tuned over the next several months at the staff
level and then be submitted in the form of a final draft to both
Councils (City and the Band) for consideration and approval.
In the meantime, it is necessary to provide for the payment of city
services delivered to the Reserve (both leasehold and Village
properties) in 1996. Payment under the former service agreements was
due and payable on or before the last working day in July of the
current tax year and, in my opinion, it would be appropriate to carry
forward the same arrangement this year.
I have discussed the matter with city staff (Engineering and Law) and
with Band Counsel, recognizing that the year is all but half over, and
we agree that the recently expired service agreement could be renewed
for a further one year term, on the same terms and conditions, pending
completion of negotiations on a longer-term service agreement. I also
note for Council that the Celtic shipyard properties, which are
located outside of the boundaries of Musqueam Indian Reserve #2, will
not be included in any service agreement unless and until there is an
ultimate negative outcome in the appeal concerning the decision of the
assessment Court of Revision to remove these properties from the
City's assessment roll.
The new service agreement would likely be for a term of ten years
(with similar term renewal options), would embody the basic principles
of the recently expired agreement, would cover-off the cost-sharing of
administrative costs referenced in the Council resolution mentioned
above, and would provide mechanisms to handle new development and
growth/capacity issues relating to the present infrastructure
(streets, sewer and water mains, street lighting, etc.) servicing the
Reserve properties, among a number of other common interests.
CONCLUSION
Staff on both sides of the negotiation process believe it would be
appropriate to renew the recently expired service agreement between
the City and the Musqueam Band for a further one year term, pending
completion of the negotiations on a new service agreement.
The recommendations of this report reflect that position and are
submitted to Council for consideration and approval.
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