Powell River has found a pipeline to a new and sustainable revenue stream.
At City of Powell River Council’s Thursday, October 2, meeting, Mac Fraser, chief administrative officer, said 25 years ago, in the name of facilitating the installation of natural gas to Vancouver Island and the Upper Sunshine Coast, the provincial government of the day directed that Centra Gas be exempt from all costs and taxation in all of the city’s rights-of-way and roads. That agreement expired three years ago and FortisBC, as the successor to Centra Gas, has been involved in negotiations with the Association of Vancouver Island and Coastal Communities (AVICC) municipalities, he said.
“Now we are in a position where you could consider approving this operating agreement for Powell River to restore your right to taxation by way of an annual fee associated with the volume of gas sold,” he said. “I can give you high confidence that this is a good operating agreement for working with Fortis about how to install and cooperate with natural gas lines in the roadways and rights of way. In addition, Fortis has said that it offers three per cent of the volume that’s consumed in each community, which is $108,000 in Powell River.”
Fraser said this is new revenue and due revenue, where some 20 years ago the city lost its taxation right to roads and rights of way.
“It’s my recommendation that you enter into this operating agreement because it starts a new revenue source of approximately $108,000,” Fraser said. “It will start to be collected in March 2015, and paid out in March 2016.”
Fraser said he is confident the revenue will remain constant or be higher in future years.
Council carried a recommendation to concur with the recommendation of AVICC and approve the model gas operating agreement with FortisBC, and that the mayor and chief administrative officer be authorized to sign the agreement on behalf of the city.
