SUPPORTS ITEM NO. 1 CS&B AGENDA JANUARY 9, 1997 ADMINISTRATIVE REPORT Date: December 27, 1996 TO: Standing Committee on City Services & Budgets FROM: City Treasurer & Collector and the General Manager of Engineering Services SUBJECT: Local Improvement Charges - Akali Singh Sikh Temple INFORMATION AND CONSIDERATION The City Treasurer and General Manager of Engineering Services submit this report for INFORMATION. GENERAL MANAGER'S COMMENTS The General Manager of Corporate Services notes that this report is submitted for information. In order to assist Council in arriving at a conclusion to this matter, after hearing the delegation from the Akali Singh Sikh Society, I submit the following actions for Council CONSIDERATION: A1. THAT Council advise staff to continue to bill the Akali Singh Sikh Society for the annual local improvement charges in the amount of $10,764.56, representing the Pavement, Curb, Tree and Sidewalk work completed in 1994 as described in this report, in accordance with the terms agreed to at the outset. These terms commit the Society to pay the entire cost of these projects on behalf of all the benefitting property owners. OR A2. THAT Council advise staff to bill the Akali Singh Sikh Society in accordance to what their share ($9,502.16) of the annual local improvement charges would have been had the projects received the appropriate approvals to proceed with the Pavement, Curb, Tree and Sidewalk work completed in 1994, with the balance of the annual costs being absorbed as a City cost. OR A3. THAT Council absorb all of the annual local improvement charges in the amount $10,764.65 for the Pavement, Curb, Tree and Sidewalk work completed in 1994 as a City cost, recognizing that this amount would otherwise accrue to the account of the Akali Singh Sikh Society. B. THAT Council take no action on the local improvement charges payable by the Akali Singh Sikh Society for the pavement and curb work added to the tax roll in 1987 in the annual amount of $211.09, and that the City continue to bill those charges to the Society for the remainder of the 15 year term which expires in the year 2001. I RECOMMEND approval of A1. and B. COUNCIL POLICY Policies governing the local improvement process are set out in the Vancouver Charter and Local Improvements Procedures By-law. Specifically, charitable societies or non-profit groups whose properties are exempt from property taxes under Section 396 still remain assessable for local improvement charges. Council does not have a policy or practice of giving grants in the amount of local improvement charges. PURPOSE A sub-committee of the Akali Singh Sikh Temple management committee has requested to appear as a delegation regarding the outstanding and future years' local improvement charges that are levied against the Temple property at 1890 Skeena Street. This report outlines the history of these local improvements and charges assessed for curbing, pavement and trees and a second project for sidewalk reconstruction on Skeena Street adjacent to the Akali Singh Sikh Temple. DISCUSSION In 1993, the Akali Singh Sikh Society which owns the property on the east side of Skeena Street from 2nd Avenue to 5th Avenue, requested that the street be improved with curbing, pavement and trees. This project was petitioned for in the normal manner. However, the single family residential property owners on the west side of the project were not willing to contribute towards the local improvement. Normally the project would not proceed however, the Akali Singh Sikh Society stated that it was willing to contribute funding for the property owners' share on the west side of the project, also, in order for this work to proceed. This funding would be in addition to funding for their property on the east side of the project. The property owners on the west side of the project were notified of this arrangement and no objections were received. In order for the property owned by the Akali Singh Sikh Society to be assessed for the full property owner's share of this project, it was necessary that Council formally deem it to be the sole benefitting property. A letter was requested and received (copy attached) from the secretary of the Akali Singh Sikh Society on May 12, 1993, confirming that the Society was willing to pay the cost on behalf of all the property owners on this project. On this basis, Council approved on May 18, 1993, that this project be brought before a Court of Revision. At the Court of Revision held on June 22, 1993, no objection or comment was received from the Akali Singh Sikh Society and the project was approved for construction. The Akali Singh Sikh Society also petitioned for a sidewalk improvement along the same section of Skeena Street adjacent to their property. This project also went to the Court of Revision and was approved. The Society was informed that their estimated share of the pavement, curb and tree installation project cost was estimated to be $58,025.18 and that their share of the sidewalk project cost was estimated to be $30,323.00. It was noted that these were estimates and that their final costs would not exceed these estimates by more than ten percent. Construction commenced in 1993, but due to poor soils conditions along the section of Skeena Street, the work was not completed until 1994. The street and sidewalk was certified as complete in 1994 and the Akali Singh Sikh Society was billed for the work in early 1995. A comparison of the estimated and actual costs billed are, as follows: Estimated Cost Actual Cost Billed Pavement/Curb/Trees $58,025.18 $59,653.63 Sidewalk 30,323.00 24,613.91 TOTAL $88,348.18 $84,267.54 When local improvement project costs are originally billed, the property owner may commute (ie. pay) the actual cost at that time. If the deadline expires without payment, then the costs are transferred to the tax roll for the term of the Local Improvement Bylaw. In this case, since no payment was received from the Society, the charges were added to the 1995 tax roll and financed over a 15 year term ending in 2009, in the following amounts: Pavement, Curbs & Trees $ 7,620.38 annually Sidewalk 3,144.27 annually TOTAL $10,764.65 These annual charges were added to the tax roll in 1995 and no payment has been received from the Society. These amounts are now outstanding along with penalty and interest charges. In addition, the Society has been paying for another pavement and curbs assessment, the annual amount of $211.09 was added to the tax roll in 1987 with a 15 year term to the year 2001. This local improvement charge is also outstanding since 1995. The total outstanding amount on the tax account is currently $24,693.64. The Akali Singh Sikh Society is exempt from property taxes per Section 396 (1)(c)(iv) of the Vancouver Charter, but is assessable for Local Improvement charges per Section 504. Once these charges are added to the tax roll, they are subject to the same penalty and interest charges as property taxes until payment is received. Council does not have a policy or practice of giving grants in the amount of local improvement charges. Over the past year, staff have been in contact with the Society at various times to discuss details about the outstanding charges on the tax account, including the mailing addresses, penalty dates, any grant procedures, etc. with the intent of assisting the Society meet its financial obligation to the City. The Society now wish as a delegation to meet with Council regarding the outstanding and subsequent future years' local improvement charges. These outstanding charges will eventually go to tax sale for collection. * * *