Not wanting to set a precedent, City of Powell River councillors are unwilling to reimburse qathet Museum and Archives Society for costs associated with asbestos abatement.
At the March 19 committee of the whole meeting, councillors considered a staff recommendation to deny reimbursing the museum $6,342 for asbestos abatement required for a shelving project.
Callie Matthews, city manager of properties, partnerships and public relations, said the museum’s board of directors had been engaged in conversations with city staff since the end of 2022 in relation to the shelving project and presence of asbestos-containing material.
“The museum board asked the city to pay for the asbestos abatement required for the installation of their shelving system, and staff have explained that in accordance with the lease agreement between the city and the museum, asbestos abatement is the responsibility of the tenant for discretionary projects,” said Matthews. “At council’s regular meeting held February 15, representatives from the museum’s board appeared as a delegation to council in response to council’s motion that staff be directed to prepare a report explaining the options and potential implications to support the museum society. This report is being brought forward.”
Matthews said the museum was one of 55 tenants leasing property from the city in comparable circumstances. She said the city’s buildings were constructed pre-1990, which is a time where asbestos was used extensively. She said left undisturbed, it poses minimal risk.
The museum currently leases three buildings from the city. Matthews said the museum elected to proceed with the shelving project at a cost of around $150,000 that was under the city’s building maintenance repair obligation under the lease.
“This is a discretionary project under section 5.2 of the lease, which clearly states, with the prior written consent of the city, the museum could choose to undertake improvements, construction or renovations of the lease area at the museum’s sole expense,” said Matthews. “One of the city’s conditions is that asbestos abatement is carried out by a certified, licenced professional in accordance with WorkSafeBC regulations.”
Matthews said the museum’s requested expenditure was not considered in the city’s five-year financial plan, and has not been budgeted. She said if the members of the committee decided to reimburse the museum for asbestos abatement work, this has the potential to set a precedent for all the city’s leaseholders to make the same request from council.
“Given that all the city’s leasehold properties predate 1990, there is a significant impact that this may have on the 55 leased properties,” said Matthews. “Applying the same analysis to the 55 properties, if each of the 55 properties were to cost $6,342, the result would be approximately $350,000 to the city, or a 1.5 per cent property tax increase. This would be a very conservative estimate.”
Matthews said the city has obligations to pay for its own asbestos abatement and has set aside $35,000 for special projects in the city’s buildings and infrastructure.
Matthews added that the city already provides extensive funding to qathet Museum and Archives, providing $137,011 in direct funding and $142,454 indirectly through qathet Regional District, for a total of $279,466 on an annual basis. Additionally, the museum receives $54,898 in in-kind lease expenses for the three buildings and $30,000 in utility expenses, for an in-kind contribution of $84,898. There is also a permissive tax exemption granted to the museum, projected at $41,117 in 2024, according to Matthews.
The committee voted to direct staff to advise qathet Museum and Archives Society that its request for reimbursement of the costs associated with asbestos abatement relating to the museum’s shelving project be denied. Councillors George Doubt and Trina Isakson voted against the motion.
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