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.
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