Effective Jan. 1, the city will no longer be part of the regional economic service. Now, the remaining East End participants are seeking a new service contract, minus Trail’s $78,000+ annual contribution. (Trail Times file photo)

Montrose delays decision on economic service

Trail has its own contract for an economic development service through the LCIC

With Trail out, six regional partners are looking to stay in.

Effective Jan. 1, the city will no longer be part of the regional economic service. Now, the remaining East End participants are seeking a new service contract, minus Trail’s $78,000+ annual contribution.

The first step for any new agreement between Rossland, Warfield, Montrose, Fruitvale and Areas A and B, begins with striking Trail’s name from the current service bylaw. That process, required by legislation, was up for discussion at the Montrose council table Monday night.

Before they sign anything, village leaders agreed that further clarification is needed about Trail’s new contract for economic development with the LCCDTS (Lower Columbia Community Development Team Society) and Lower Columbia Initiatives Corporation (LCIC).

“We haven’t agreed,” Montrose Mayor Joe Danchuk told the Trail Times. “And the LCCDTS/LCIC haven’t signed the contract with Trail yet, so we moved it over to the next meeting because we want to talk to other communities … Montrose council feels the agreement we have is good, working well and starting to get some traction,” he added.

“We don’t agree with Trail going on its own and after reading their contract, we are disappointed … we need to get some more clarification and meet with Trail before we make a decision.”

Mayor Danchuk previously questioned a section of the city’s contract which pertains to the name of the service. “Within the first six months of this agreement, develop and execute a process for the purpose of reviewing the name of the organization providing the service (Lower Columbia Initiatives Corporation) to ensure that there is appropriate external name recognition that maximizes the opportunity to fulfill the Society’s obligations as described in the Agreement,” the contract cites. “And do such other things reasonably connected or associated with the Services that may be requested from time to time by the City.”

“And if you read Trail’s contract they are saying they want a storefront manned during working hours, and we already have that,” Danchuk concluded. “At this stage, Montrose council needs more information before we agree to move the bylaw forward leaving Trail out and before we are prepared to sign off on it.”

Without Trail funding about 40 per cent of service, at this point, the regional budget stands at $111,000. Area A would contribute $34,000; Rossland $32,340; Area B $19,810; Fruitvale $10,448; Warfield $8,600; and Montrose $5,800.

“The city has provided the RDKB with notice to withdraw from the regional service,” Chief Administrative Officer David Perehudoff explained. “This paved the way for the City of Trail to enter into an agreement directly with the LCIC/LCCDTS.”

(The contract for service is between the regional district and the LCCDTS, and flows through to the LCIC, or Lower Columbia Initiatives Corporation)

Perehudoff confirmed a new agreement has been approved and signed by Trail city council and takes effect on January 1, 2018.

The RKDB has advanced a service amending bylaw to exclude Trail from the service, which city council will approve at the next council meeting, he added.

“The remaining East End participants will be in a position to negotiate directly with the LCCDTS/LCIC and this has nothing to do with the city, who no longer will be a member to the regional service.”

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