Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Corporate Services

SUBJECT:

Renewal of Musqueam Service Agreement

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

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 agreement and approvals are reached on the content of a long-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, opted to levy taxes under this legislation 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.

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. A long-term service agreement (on appropriate terms and conditions) would also be beneficial to the City.

A copy of the current service agreement, without the site schedules, is appended to this report for information.

DISCUSSION

Negotiating a long-term service agreement is a complicated process. Both parties to the agreement, the City and the Musqueam Band, wish to ensure that all policy matters are included in the discussions.

A new 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.

As always, there are many future contingencies to consider and address in such an agreement 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 during the currency of a long-term service agreement.

Staff on both sides believe the current service agreement embodies the terms and conditions that reflect the principles of a service contract which, over time, could be amended to develop a long-term agreement. Work towards this end has already started and further meetings will be conducted over the near term to reach agreement and approval of amendments to the interim service agreement on an issue-by-issue basis.

Our recommendation is to extend the current agreement for an additional term of two 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 Supreme Court decision that such property is not reserve land and remains subject to taxation by the City.

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, 1998. We are proposing that this service agreement be renewed for a further two-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 a mutually preferable arrangement, namely a permanent long-term agreement.

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

ATTACHMENTS THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ONFILE IN THE CITY CLERK'S OFFICE

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