ADMINISTRATIVE REPORT

Date: February 8, 1999
Author/Local:R.Chan/8-7792

RTS No. 00518

CC File No. 4161

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and General Manager of Community Services
SUBJECT:	Van for Carnegie Community Centre

RECOMMENDATION

THAT Council approve a loan of $22,000 from the Truck Plant Account for the purchase of a van for the Seniors Committee of the Carnegie Community Centre Association on the following conditions:
- the loan to be repaid over a seven year period at the rate of $340/month, and

- the Carnegie Association be responsible for the operating and replacement costs of the van.

COUNCIL POLICY

Council approves all increases in service levels, including the addition of trucks to the fleet.

Council approves expenditures from Reserves, including the Truck Plant Account.

DISCUSSION

The Carnegie Centre currently rents a van through June, July and August to provide transportation for day trips for seniors and for other programs within Carnegie, including the Learning Centre, Volunteer Program, Recreation Program, Oppenheimer Park and others. The Centre has access to other vans, including the Evelyne Saller Centre van and the Central Recreation Blue Bus; however, these are seldom available. There is a growing need for a van year around.

- 2 -

Since February, 1998, the Seniors Committee of the Carnegie Community Centre Association have been fundraising to purchase and operate their own van. To date, the Association has raised enough to support ongoing operating costs. As well, the Senior's Lottery Foundation have confirmed a donation of $10,000 towards the purchase of this van. The Association has approached the City to assist with financing for the balance of the purchase.

FINANCIAL IMPLICATIONS

Cannwest Bus Sales have offered a fully equipped used 15 passenger van to the Association for $29,000 plus taxes, a total cost estimated at $32,000. With the $10,000 Senior's Lottery Foundation grant, funding of $22,000 is required to purchase the van. The General Manager of Community Services and General Manager of Engineering Services propose that the $22,000 balance required be loaned from the Truck Plant Account with repayment over seven years at an estimated $340/month. At the end of seven years, the Seniors Committee of the Carnegie Community Centre Association would own the van outright.

With the grant and with spreading the payments over seven years, the Seniors Committee of the Carnegie Community Centre Association will be able to provide sufficient funding for both the purchase and operating costs of the vehicle. The payback to the Plant Account includes interests at the same rate as for fleet purchases of about 7%.

Accordingly, we recommend that Council approve a loan from the Truck Plant Account for $22,000 for the purchase of a van for the Seniors Committee of the Carnegie Community Centre Association.

* * * * *

(c) 1998 City of Vancouver