CITY OF VANCOUVER

ADMINISTRATIVE REPORT

 

Date:

August 26, 2003

 

Author:

Sue Harvey

 

Phone No.:

604-871-6001

 

RTS No.:

3264

 

CC File No.:

5104

 

Meeting Date:

September 11, 2003
 

TO:

Standing Committee on City Services and Budgets

FROM:

Directors, Office of Cultural Affairs and Social Planning, in conjunction with the Directors of Legal Services, Real Estate, Facilities Design and Management and Risk and Emergency Management

SUBJECT:

Lease/Sublease/License of City-Owned Capital Assets to Non-Profit Organizations.

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

The General Managers of Community and Corporate Services RECOMMEND approval of A through G.

COUNCIL POLICY

In June, 1993, Council directed that City-owned properties occupied by non-profit organizations be held as assets in the Capital Fund and be charged a nominal rental rate. The lease/sublease/license of City assets below market value constitutes a grant and as such requires eight affirmative votes.

PURPOSE

This report seeks Council's approval to conclude new agreements between the City and twenty-seven (27) non-profit organizations occupying City-owned buildings or on City-owned land as tenants.

BACKGROUND

For many years the City has leased buildings to non-profit organizations providing public programs and services. The City also leases land to non-profit organizations and leases land and buildings from others, which are then subleased to non-profit organizations. Each asset was leased over the years under slightly differing terms and conditions and, consequently, the leases address issues of maintenance, insurance, term and rent in several ways. Some facilities' leases have expired; others have never had formal lease agreements.

There are in total seventy-two (72) non-profit organizations as tenants in City-owned capital asset buildings or on City-owned land. This report deals with nineteen (19) non-profit childcare and eight (8) social service, community and cultural organizations only. A list of the subject non-profit childcare tenants is attached to this report as Appendix "A" and the subject non-profit social service and cultural tenants is attached to this report as Appendix "B". The balance of the forty-five (45) non-profit organizations are not dealt with in this report because many of them are subject to existing agreements with the City which have not yet expired. Others are in fairly unique situations which require individual treatment and will be dealt with on a case by case basis.

In this report, staff are proposing to enter into new and consistent agreements with the identified parties to rationalize the terms and provide comparable relationships among like non-profit organizations occupying City-owned buildings and lands. The goal is to document these relationships through standardized legal agreements which clarify responsibilities and are fair, equitable, and easy to administer. As old agreements come up for renewal over time, staff shall endeavour to ensure that the new agreements shall be, to the extent possible, consistent with the terms set out in this report.

DISCUSSION

The terms of the proposed agreements vary slightly between the categories depending on the use, whether the facility is a stand alone building or a unit in a strata corporation, and on ownership of the lands - either by the City, the Park Board or the School Board. Some are to be leases, some subleases and some license agreements and, in most cases, they will also include operating agreements. For clarity, this report will refer to these agreements collectively as "agreements". Staff have developed draft terms for these agreements in the following categories:

  1. Childcare Facilities (City owns/leases building and land)
  2. Social Service and Cultural Facilities (City owns/leases building and land)
  3. Social Service, Childcare and Cultural Facilities (City owns/leases a strata lot and has a legal interest in the common property of a strata corporation)
  4. Social Service, Childcare and Cultural Facilities (City owns/leases land/Society owns building)

Draft terms are attached to this report as Appendix "C". These proposed new terms vary from past practise in several ways:

Rent:

In 1993 Council directed that City-owned facilities leased to non-profit organizations be held as Capital Assets and, as a result, properties previously held in the Property Endowment Fund, which were leased to non-profit tenants, were transferred to Capital Assets. PEF leases prior to 1993 required the payment of market rent. When the properties were transferred to Capital Assets, the Grants Budgets and each Society's annual operating grant were reduced by an amount equal to the rent previously charged but the leases were not revised to reflect this change. It is proposed that all new agreements with non-profit societies be at nominal rates.

Public Service Mandate:

As part of the new agreements, staff are proposing that each Society articulate and include as part of the agreement, its mandate, mission, objectives, and rental policies which Social Planning or Cultural Affairs staff will monitor on an annual basis to ensure that the public benefits continue over the term of the agreement.

Maintenance and Repairs:

Staff propose to clarify responsibilities between the City and the tenant for maintenance and repairs in City-owned buildings by appending detailed Maintenance Service Agreements to each agreement. The amount and type of service would vary by the type of relationship but, in general, staff are proposing that the City take a more proactive and consistent approach to preventative maintenance in City-owned buildings. In some cases, the City shall assume more responsibilities (e.g. City-owned childcare) and, in other cases, the City's proposed responsibilities shall be limited to an annual site inspection.

Insurance:

All previous leases handled insurance differently. Staff are proposing that the City assume responsibility for property insurance for all City owned or leased buildings, but tenants shall be required to carry property insurance for their contents, including any tenants' improvements installed for them before, on or after their occupancies. If the tenants own the buildings or trailers or other structural improvements located on City-owned land, the tenants must carry adequate property insurance for these buildings, trailers or structural improvements including all their contents and tenants' improvements. In all cases, the tenants shall be required to carry adequate commercial liability insurance (if appropriate) and other forms of insurance coverage that are deemed to be necessary by and are to the satisfaction of the Director of Risk and Emergency Management.

Capital Repairs:

While many agreements placed the responsibility for capital or structural repairs on the City, most buildings were not included in the upgrading and capital replacement programs in previous Capital Plans. When repairs were needed, they were done on an emergency basis by deferring other planned capital projects. To prevent this challenging situation from occurring in the future, staff propose to include these Capital Assets in the City's ongoing capital replacement and upgrading programs.

SPECIAL COUNCIL ADVISORY COMMITTEE COMMENTS

While past lease agreements have generally included a general clause requiring City tenants to observe and comply with all Federal, Provincial and Municipal laws and by-laws, the Special Advisory Committee on Cultural Communities, in consultation with staff, recommend that more explicit language be included in all Capital Asset leases with respect to the Human Rights Code, which prohibits discrimination in many areas, including in publications, which are likely to expose a person or a group or class of persons to hatred or contempt because of the race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, sex, sexual orientation or age of that person or that group or class of persons. Staff have included this in the draft lease terms.

FINANCIAL IMPLICATIONS

Operating Budget:

As part of the review of the non-profit leases and relationships, staff undertook a detailed budget review of the total City expenditures on maintenance and insurance. Building Management staff then developed a preventative maintenance program and budget for each building. Risk and Emergency Management staff provided budget estimates for property insurance. This analysis highlighted the inconsistency in support among the non-profit organizations.

The realignment of insurance and maintenance responsibilities outlined in this report will require an increase of $55,500 to the Building Management's Facilities Maintenance budget (Recommendation E). This is somewhat higher than originally anticipated because of the significant increase in insurance costs over the past 18 months. However, staff believe that with the recommended budget increase, adequate resources can be allocated to the preventative maintenance and insurance proposals outlined in this report.

The rationalization of these properties between the PEF and Capital Assets results in a loss of $38,000 in property taxes; an overall net loss of $0 to the City.

Capital Budget:

Facilities staff also reviewed the cost implications of including all these Capital Assets in the City's capital replacement and upgrading programs. To include these properties would require an increase of $330,000 for roof replacements and $750,000 for major maintenance per three-year capital plan. While this full amount may not be feasible within budget constraints, Recommendation G seeks Council direction to include these buildings in the City's structural and physical plant upgrading programs in future capital plans so that they may be prioritised for repairs as funds are available.

NEXT STEPS

Staff involvement in the agreements between the City and the non-profits is a partnership between Corporate, Community and Legal Services. Community Services staff will continue to have the responsibility for the programmatic relationships with the tenants including these initial existing agreements, renewals, agreements for new facilities and the annual review of public services. Corporate Services will be responsible for facility maintenance and insurance, as well as for asset management. The use of a computerized asset management system will significantly improve staff's ability to implement and monitor these responsibilities.

CONCLUSION

The lease of City capital assets is one of the most effective means of supporting the non-profit sector. It provides security of tenure for the non-profit occupants and helps to maintain the organizational infrastructure. Staff believe that the reorganization and rationalization of these agreements will provide more consistent, fair and efficient services to our non-profit occupants.

* * * * *

APPENDIX A
PAGE 1 OF 1

 

Childcare

Address

Land

Bldg.

Operator

Lease Category

1

Beach YMCA Childcare

1475 Burrard Street

City

City

YMCA of Greater Vancouver

1

2

Collingwood Daycare

2708 Duke Street

City

City

Collingwood Neighbourhood House

1

3

Dorothy Lam Children's Centre

188 Drake Street

City

City

Vancouver Society of Children's Centres

1

4

Kids Care Preschool (Bobolink)

7715 Muirfield Drive

City

City

Vancouver Life Skills Society

1

5

Playhouse Child Care Centre

4107 Brant Street

City

City

Developmental Disabilities Assoc.

1

6

South Vancouver Family Place

7710 Nanaimo Street

City

City

Vancouver Life Skills Society

1

      7

Champlain Child Centre

7760 Stikine

VPB

City

Developmental Disabilities Assoc.

1

      8

Grandview Terrace Child Care

2075 Woodlands Drive

VSB

City

Britannia Community Services Society

1

9

Mt. Pleasant Family Centre

2910 St. George St.

VPB

VPB

Mt. Pleasant Family Centre Society

1

10

Strathcona Preschool

601 Keefer Street

VSB

City

Strathcona Community Centre Assoc.

1

11

Thunderbird After School Care

2311 Cassiar Street

VSB

City

Thunderbird Neighbourhood House

1

12

City Hall Childcare Centre

2685 Cambie Street

City

City

City Hall Childcare Centre Society

3

13

Creekview Tiny Tots

1483 Lamey's Mill Road

Strata

Strata

Creekview Tiny Tots Society

3

14

False Creek YMCA Child Care

102-1399 Fountain Way

Strata

Strata

YMCA of Greater Vancouver

3

15

Library Square Children's Centre'

301 - 345 Robson St.

City

City

Vancouver Society of Children's Centres

3

16

Quayside Children's Centre

1011 Marinaside Cresc.

Strata

Strata

Vancouver Society of Children's Centres

3

17

Shannon Daycare

290-1200 W 73rd Ave.

Strata

Strata

Shannon Daycare Society

3

18

YWCA Citygate Childcare Centre

1192 Quebec Street

Strata

Strata

YWCA

3

19

Mt. Pleasant Child Care Centre

960 East 7th Avenue

City

Society

Mt. Pleasant Child Care Centre Society

4

APPENDIX B
PAGE 1 OF 1

 

Facility

Address

Operator

Lease Category

1

Boy Scout Hall

703 West 70th Street

Scouts Canada

2

2

Firehall Arts Centre

280 East Cordova Street

Firehall Theatre Society

2

3

Heritage Hall

3102 Main Street

Main Source Management Society

2

4

4 Hodson Manor

1254 West 7th Avenue

Vcr Multicultural Soc./Vcr Chamber Choir/Vcr Cantata Singers/Early Music Vcr

2

5

Mt. Pleasant Neighbourhood House

800 East Broadway

Association of Neighbourhood Houses

2

6

Vancouver East Cultural Centre

1885-1895 Venables Street

Vancouver East Cultural Centre Society

2

7

Victoria Drive Community Hall

2026 East 43rd Avenue

Victoria Drive Community Hall Association

2

8

Pacific Cinecentre

1131 Howe Street

Pacific Cinematheque Society/Cineworks Society

3

Category 1: Childcare Facilities (City owns/leases building and land)

Agreement between the City of Vancouver (the "City")
and
______________________ (the "Society")

DRAFT TERMS

Term: Five years commencing _______________renewable for two further five year terms.

Rent: $10.00 payable in advance

Premises: ____________________________________

Lease/Sublease/License:
The City to grant:
· a lease/sublease/license of the Premises as shown on plans to be appended to the Agreement, such plans to be provided by the _________________for the purposes set out in the Use section below.
· the Agreement will not be registered in the Land Title Office.

Use:
The permitted use of the Premises is restricted to:
· the operation of a licensed childcare/ child development facility (the "Facility") within the Mandate and Public Service Objectives established by the Society appended to the Agreement as a schedule and approved by the City (see below); and
· purposes necessarily incidental to the operation of a Facility and permitted within the applicable zoning.

Public Service Objectives:
As part of the Agreement, the Society's Mandate and Public Service Objectives (draft to be provided by the Society for City approval) shall be included and used by the City as annual and periodic performance measures. The Society may amend the Mandate and Public Service Objectives from time to time with prior written City approval.

The Agreement shall identify Public Service Objectives including:
· hours of operation;
· licensed capacity and numbers of children to be served by age on both full time and, if applicable, part time basis;
· type and range of childcare and child development services;
· process for parental input;
· administrative capacity;
· financial accountability;
· financial viability with evidence of diversified revenue sources; and
· quality, accessibility and affordability.

Laws, Regulations and Requirements
The Society shall comply with all laws and regulations relating to its operation of a Facility and shall provide evidence with such compliance on request by the City. The Society shall also comply with any requirements imposed on the Society by the City as Landlord in connection with the Society's operation of the Facility on the Premises including the obligation to comply with all federal, provincial and municipal laws and by-laws including the British Columbia Human Rights Code which prohibits discrimination in many areas including in publications which are likely to expose a person or a group or class of persons to hatred or contempt because of the race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, sex, sexual orientation or age of that person or that group or class of persons. If there is a head lease, the Society shall be obliged to observe and comply with the applicable terms of the head lease in order that the City is not in default under the head lease.

Rentals:
The Society may contract with third parties for occasional use of the Premises periodically as set out in an Occasional Third Party Use Policy that shall form part of the Agreement and shall be subject to City approval, unless prohibited by the head lease, if any. All such rentals will be required to be appropriate to, and support the Mandate of the Society. The Society may not assign or sublet any portion of the Premises without the City's prior written permission.

Insurance:
The City will insure the building against fire, vandalism etc. as determined by the City's Director of Risk and Emergency Management. The Society shall be responsible for insuring all equipment, fixtures and furniture and shall be required to maintain comprehensive general liability insurance as well as all risk broad form tenant's legal liability insurance in the amounts and types to the satisfaction of the City's Director of Risk and Emergency Management.

Utilities, Janitorial, Maintenance and Repairs:
A Service Agreement shall form a Schedule to the Agreement and shall itemize both City and Society obligations for utilities, security systems, telephone, janitorial, maintenance and repairs.

In general, the Society shall be responsible for all utilities, security systems, janitorial services, minor maintenance and repairs such as lighting and appliance replacement and repairs, etc. and the City, subject to the availability of resources, shall be responsible for preventative maintenance and major capital repairs such as roof replacement, building envelope repairs, foundations, infrastructure services (water, sewage, power) and building systems (excluding security systems). The City reserves the right to not rebuild in the event of substantial destruction of the Premises or of the building housing the Premises.

The Society shall be required to set aside an adequate maintenance reserve within its annual operating budget to meet the obligations in the Agreement.

Improvements:
Prior to the Society making any alterations, erections or modifications (hereinafter collectively referred to as "Improvements") to the Premises, the Society shall obtain the City's written consent. In giving its consent, the City may such attach conditions or deadlines as it sees fit and the Society shall be responsible for all cost of Improvements, and claims or liabilities of any kind arising from the Improvements.

Reporting to the City:
On or before December 31 of each year, or at any time requested by the City, the Society will provide to the City the following:
· Board-approved financial statements for the previous year, prepared at the Society's expense by an accounting professional. Such statements shall include all operating, capital, maintenance reserve and special purpose funds and shall itemize administrative and program costs;
1. · a balanced annual budget including an estimate of all revenues and expenditures;
· a summary of activities for the past year demonstrating how the Society has fulfilled its Public Service Objectives;
· evidence of a functioning/governing Board of Directors; and
· a summary of planned activities for the coming year. Further, if requested by the City, the Society shall submit to the City minutes of all Board meetings.

Indemnification:
The Society shall indemnify the City for any costs, losses, suits, or expenses incurred by the City arising as a result of the Society's use and occupation of the Premises and related City property.

Early Termination:
The City may terminate the Agreement prior to the end of the Term on the happening of any one or more of the following events:
· the Society is in default on any payments owed to the City following 30 days notice;
· termination of the head lease, if any;
· the Society defaults in performing any other provision of the Agreement, including, without limiting the generality of the foregoing, failure to comply with any laws or regulations relating to its operation of a childcare/child development facility;
· the Premises are not operated as a childcare/child development facility for more than 30 days without the City's prior written consent;
· the Premises are not used in the operation of a childcare/child development facility to the satisfaction of the City;
· the Society becomes bankrupt, is wound up or dissolved;
· by mutual consent; and/or
· substantial destruction of the Premises or the building in which the Premises are situated

Options to Renew:
The Society may only exercise its options to renew if it is in good standing under the Agreement.

Additional Provisions and Qualifications:
The Agreement shall contain such other terms and conditions as may be satisfactory to the City's Directors of Legal Services, Real Estate, Facilities Design & Development, Social Planning and Risk and Emergency Management, it being noted that no rights or obligations hereby arise or take effect until the Agreement has been executed by both the City and the Society. The foregoing represents typical terms and provisions. The City reserves the right to vary such terms and provisions in its sole discretion depending upon the individual tenant as well as the individual premises that are being leased/subleased/licensed.

Category 2: Social Service and Cultural Facilities
(City owns leases building & land)

Agreement between the City of Vancouver (the "City")
and
______________________ (the "Society")

DRAFT TERMS

Term: Five years commencing _______________renewable for two further five-year terms.

Rent: $10.00 payable in advance

Premises: ____________________________________

Lease/Sublease/License:
The City to grant:

Use:
The permitted use of the Premises is restricted to:

Public Service Objectives:
As part of the Agreement, the Society's Mandate and Public Service Objectives (draft to be provided by the Society for City approval) shall be included and used by the City as annual and periodic performance measures. The Society may amend the Mandate and Public Service Objectives from time to time with prior written City approval.

The Agreement shall identify Public Service Objectives including:

Laws, Regulations and Requirements
The Society shall comply with all laws and regulations relating to its operation of a Facility and shall provide evidence with such compliance on request by the City. The Society shall also comply with any requirements imposed on the Society by the City as Landlord in connection with the Society's operation of the Facility on the Premises including the obligation to comply with all federal, provincial and municipal laws and by-laws including the British Columbia Human Rights Code which prohibits discrimination in many areas including in publications which are likely to expose a person or a group or class of persons to hatred or contempt because of the race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, sex, sexual orientation or age of that person or that group or class of persons. If there is a head lease, the Society shall be obliged to observe and comply with the applicable terms of the head lease in order that the City is not in default under the head lease.

Rentals:
The Society may contract with third parties for occasional use of the Premises periodically as set out in an Occasional Third Party Use Policy that shall form part of the Agreement and shall be subject to City approval, unless prohibited by the head lease, if any. All such rentals will be required to be appropriate to, and support the Mandate of the Society. The Society may not assign or sublet any portion of the Premises without the City's prior written permission.

Insurance:
The City will insure the building against fire, vandalism etc. as determined by the City's Director of Risk and Emergency Management. The Society shall be responsible for insuring all equipment, fixtures and furniture and shall be required to maintain comprehensive general liability insurance as well as all risk broad form tenant's legal liability insurance in the amounts and types to the satisfaction of the City's Director of Risk and Emergency and Emergency Management.

Utilities, Janitorial, Maintenance and Repairs:
A Service Agreement shall form a Schedule to the Agreement and shall itemize both City and Society obligations for utilities, security systems, telephone, janitorial, maintenance and repairs.

In general, the Society shall be responsible for all utilities, security systems, janitorial services, minor and preventative maintenance, landscaping, repairs such as lighting and appliance replacement and repairs, etc. and the City, subject to the availability of resources, shall be responsible for major capital repairs such as roof replacement, building envelope repairs, foundations, infrastructure services (water, sewage, power) and building systems (excluding security systems). The City reserves the right to not rebuild in the event of substantial destruction of the Premises or of the building housing the Premises.

The Society shall be required to set aside an adequate maintenance reserve within its annual operating budget to meet the obligations in the Agreement.

Improvements:
Prior to the Society making any alterations, erections or modifications (hereinafter collectively referred to as "Improvements") to the Premises, the Society shall obtain the City's written consent. In giving its consent, the City may such attach conditions or deadlines as it sees fit and the Society shall be responsible for all cost of Improvements, and claims or liabilities of any kind arising from the Improvements.

Reporting to the City:
On or before December 31 of each year, or at any time requested by the City, the Society will provide to the City the following:

Indemnification:
The Society shall indemnify the City for any costs, losses, suits, or expenses incurred by the City arising as a result of the Society's use and occupation of the Premises and related City property.

Early Termination:
The City may terminate the Agreement prior to the end of the Term on the happening of any one or more of the following events:

Options to Renew:
The Society may only exercise its options to renew if it is in good standing under the Agreement.

Additional Provisions and Qualifications:
The Agreement shall contain such other terms and conditions as may be satisfactory to the City's Directors of Legal Services, Real Estate, Facilities Design & Development, Social Planning and Risk and Emergency Management, it being noted that no rights or obligations hereby arise or take effect until the Agreement has been executed by both the City and the Society. The foregoing represents typical terms and provisions. The City reserves the right to vary such terms and provisions in its sole discretion depending upon the individual tenant as well as the individual premises that are being leased/sublease/licensed.

Category 3: Social Service, Childcare and Cultural Facilities (City owns or leases a strata lot)

Agreement between the City of Vancouver (the "City")
and
______________________ (the "Society")

DRAFT TERMS

Term: Five years commencing _______________renewable for two further five-year terms.

Rent: $10.00 payable in advance

Premises: ____________________________________

Lease/Sublease:
The City to grant:
· a lease/sublease/license of the Premises as shown on plans to be appended to the Agreement for the purposes set out in the Use section below.
· the Agreement will not be registered in the Land Title Office.

Use:
The permitted use of the Premises is restricted to:
· the operation of a ______________________facility (the "Facility") within the Mandate and Public Service Objectives established by the Society appended to the Agreement as a schedule and approved by the City (see below); and
· purposes necessarily incidental to the operation of a Facility and permitted within the applicable zoning.

Public Service Objectives:
As part of the Agreement, the Society's Mandate and Public Service Objectives (draft to be provided by the Society for City approval) shall be included and used by the City as annual and periodic performance measures. The Society may amend the Mandate and Public Service Objectives from time to time with prior written City approval.

The Agreement shall identify Public Service Objectives including:
· hours of operation;
· programs and other public services;
· process for community input;
· administrative capacity;
· financial accountability;
· financial viability with evidence of diversified revenue sources; and
· quality, accessibility and affordability of services and programs.

Laws, Regulations and Requirements
The Society shall comply with all laws and regulations relating to its operation of a Facility and shall provide evidence with such compliance on request by the City. The Society shall also comply with any requirements imposed on the Society by the City as Landlord in connection with the Society's operation of the Facility on the Premises including the obligation to comply with all federal, provincial and municipal laws and by-laws including the British Columbia Human Rights Code which prohibits discrimination in many areas including in publications which are likely to expose a person or a group or class of persons to hatred or contempt because of the race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, sex, sexual orientation or age of that person or that group or class of persons. The Society shall also comply with all bylaws and rules of the Strata Corporation. If there is a head lease, the Society shall be obliged to observe and comply with the applicable terms of the head lease in order that the City is not in default under the head lease.

Rentals:
The Society may contract with third parties for occasional use of the Premises periodically as set out in an Occasional Third Party Use Policy that shall form part of the Agreement and shall be subject to City approval unless prohibited by the Head Lease, if any. All such rentals will be required to be appropriate to, and support the Mandate of the Society. The Society may not assign or sublet any portion of the Premises.

Insurance:
The Society shall be responsible for insuring all equipment, fixtures and furniture and shall be required to maintain comprehensive general liability insurance as well as all risks broad form tenant's legal liability insurance in the amounts and types to the satisfaction of the City's Director of Risk and Emergency Management.

As the Premises are a strata lot, the strata corporation shall be responsible for insuring the building against fire and certain other perils. The City shall be responsible for paying the portion of the strata fee, if any, attributable to property insurance on the building.

Utilities, Janitorial, Maintenance and Repairs:
A Service Agreement shall form a Schedule to the Agreement and shall itemize the responsibilities of the Strata Corporation, the City and the Society. In general, the Society shall be responsible for all utilities, security systems, janitorial services, maintenance and repairs such as lighting and appliance replacement and repairs. Major capital repairs such as special assessment for roof replacement, building envelope repairs, foundations, infrastructure services (water, sewage, power) and building systems (excluding security systems) shall typically be the responsibility of the Strata Corporation. To the extent that these costs are passed on through to the City, the City will, within available resources, contribute to special assessments for major capital repairs.

The Society shall be responsible for paying the portion of the strata fees, if any, attributable to common area costs (excluding those costs attributable to property insurance on the building as the City will be paying those).

The Society shall be required to budget for an adequate maintenance reserve within its annual operating budget to meet its obligations in the Agreement.

Improvements:
Prior to the Society making any alterations, erections or modifications (hereinafter collectively referred to as "Improvements") to the Premises, the Society shall obtain the City's prior written consent. In giving its consent, the City may such attach conditions or deadlines as it sees fit and the Society shall be responsible for all cost of Improvements, and claims or liabilities of any kind arising from the Improvements.

Reporting to the City:
On or before December 31 of each year, or at any time requested by the City, the Society will provide to the City the following:
· Board-approved financial statements for the previous year, prepared at the Society's expense by an accounting professional. Such statements shall include all operating, capital, maintenance reserve and special purpose funds and shall itemize administrative and program costs;
· a balanced annual budget including an estimate of all revenues and expenditures;
· a summary of activities for the past year demonstrating how the Society has fulfilled its Public Service Objectives;
· evidence of a functioning/governing Board of Directors; and
· a summary of planned activities for the coming year. Further, if requested by the City, the Society shall submit to the City minutes of all Board meetings.

Indemnification:
The Society shall indemnify the City for any costs, losses, suits, or expenses incurred by the City arising as a result of the Society's use and occupation of the Premises and related City property.

Early Termination:
The City may terminate the Agreement prior to the end of the Term on the happening of any one or more of the following events:
· the Society is in default on any payments owed to the City following 30 days notice;
· termination of the head lease, if any;
· the Society defaults in performing any other provision of the Agreement, including, without limiting the generality of the foregoing, failure to comply with any laws or regulations relating to its operation of a __________________ facility;
· the Premises are not operated as a ___________________ facility for more than 30 days without the City's prior written consent;
· the Premises are not used in the operation of a _____________________ facility to the satisfaction of the City;
· the Society becomes bankrupt, is wound up or dissolved;
· by mutual consent; and/or
· substantial destruction of the Premises or the building in which the Premises are situated

Options to Renew:
The Society may only exercise its options to renew if it is in good standing under the Agreement.

Additional Provisions and Qualifications:
The Agreement shall contain such other terms and conditions as may be satisfactory to the City's Directors of Legal Services, Real Estate, Facilities Design & Development, Social Planning and Risk and Emergency Management, it being noted that no rights or obligations hereby arise or take effect until the Agreement has been executed by both the City and the Society. The foregoing represents typical terms and provisions. The City reserves the right to vary such terms and provisions in its sole discretion depending upon the individual tenant as well as the individual premises that are being leased/subleased/licensed.

Category 4: Social Service, Childcare, Cultural Facilities (Society owns building, City owns or leases land)

Agreement between the City of Vancouver (the "City")
and
______________________ (the "Society")

DRAFT TERMS

Term: Five years commencing _______________renewable for two further five-year terms.

Rent: $10.00 payable in advance

Land: ____________________________________

Building: The building(s) situated on the Land.

Lease/sublease/license:
The City to grant:
· a lease/sublease/license of the Land as shown on plans to be appended to the Lease for the purposes set out in the Use section below.
· the Agreement will not be registered in the Land Title Office.

Use:
The permitted use of the Land is restricted to:
· the operation of a __________________________facility (the "Facility") within the Mandate and Public Service Objectives established by the Society appended to the Agreement as a schedule and approved by the City (see below); and
· purposes necessarily incidental to the operation of a Facility and permitted within the applicable zoning.

Public Service Objectives:
As part of the Agreement, the Society's Mandate and Public Service Objectives (draft to be provided by the Society for City approval) shall be included and used by the City as annual and periodic performance measures. The Society may amend the Mandate and Public Service Objectives from time to time with prior written City approval.

The Agreement shall identify Public Service Objectives including:
· hours of operation;
· type and range of services;
· process for community input;
· administrative capacity;
· financial accountability;
· financial viability with evidence of diversified revenue sources; and
· quality, accessibility and affordability or programs and services.

Laws, Regulations and Requirements
The Society shall comply with all laws and regulations relating to its operation of a Facility and shall provide evidence with such compliance on request by the City. The Society shall also comply with any requirements imposed on the Society by the City as Landlord in connection with the Society's operation of the Facility on the Land including the obligation to comply with all federal, provincial and municipal laws and by-laws including the British Columbia Human Rights Code which prohibits discrimination in many areas including in publications which are likely to expose a person or a group or class of persons to hatred or contempt because of the race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, sex, sexual orientation or age of that person or that group or class of persons. If there is a head lease, the Society shall be obliged to observe and comply with the applicable terms of the head lease in order that the City is not in default under the head lease.

No Assignment or Subletting:
The Society may not assign or sublet any portion of the Building(s) and/or Land without the City's prior written permission.

Insurance:
The Society shall also be responsible for insuring the building against fire and vandalism; all equipment, fixtures and furniture and shall be required to maintain comprehensive general liability insurance as well as all risk broad form tenant's legal liability insurance in the amounts and types to the satisfaction of the City's Director of Risk and Emergency Management.

Utilities, Janitorial, Maintenance and Repairs:
A Service Agreement shall form a Schedule to the Agreement and shall itemize both City and Society obligations for utilities, security systems, telephone, janitorial, maintenance and repairs.

In general, the Society shall be responsible for all utilities, security systems, janitorial services, landscaping, snow removal, all maintenance and repairs including major capital repairs such as roof replacement, building envelope repairs, foundations, infrastructure services (water, sewage, power) and building systems.

The Society shall be required to set aside an adequate maintenance reserve within its annual operating budget to meet the obligations in the Agreement.

Improvements:
Prior to the Society making any alterations, erections or modifications (hereinafter collectively referred to as "Improvements") to the Building and/or Land, the Society shall obtain the City's written consent. In giving its consent, the City may such attach conditions or deadlines as it sees fit and the Society shall be responsible for all cost of Improvements, and claims or liabilities of any kind arising from the Improvements.

Reporting to the City:
On or before December 31 of each year, or at any time requested by the City, the Society will provide to the City the following:
· Board-approved financial statements for the previous year, prepared at the Society's expense by an accounting professional. Such statements shall include all operating, capital, maintenance reserve and special purpose funds and shall itemize administrative and program costs;
· a balanced annual budget including an estimate of all revenues and expenditures;
· a summary of activities for the past year demonstrating how the Society has fulfilled its Public Service Objectives;
· evidence of a functioning/governing Board of Directors; and
· a summary of planned activities for the coming year. Further, if requested by the City, the Society shall submit to the City minutes of all Board meetings.

Indemnification:
The Society shall indemnify the City for any costs, losses, suits, or expenses incurred by the City arising as a result of the Society's use and occupation of the Land and related City property.

Early Termination:
The City may terminate the Agreement prior to the end of the Term on the happening of any one or more of the following events:
· the Society is in default on any payments owed to the City following 30 days notice;
· termination of the head lease, if any;
· the Society defaults in performing any other provision of the Agreement, including, without limiting the generality of the foregoing, failure to comply with any laws or regulations relating to its operation of a _________________facility;
· the Building and/or Land are not operated as a ______________________facility for more than 30 days without the City's prior written consent;
· the Building and/or Land are not used in the operation of a ______________________facility to the satisfaction of the City;
· the Society becomes bankrupt, is wound up or dissolved;
· by mutual consent; and/or
· substantial destruction of the Building and/or Land.

Options to Renew:
The Society may only exercise its options to renew if it is in good standing under the Agreement.

Additional Provisions and Qualifications:
The Agreement shall contain such other terms and conditions as may be satisfactory to the City's Directors of Legal Services, Real Estate, Facilities Design & Development, Social Planning and Risk and Emergency Management, it being noted that no rights or obligations hereby arise or take effect until the Agreement has been executed by both the City and the Society. The foregoing represents typical terms and provisions. The City reserves the right to vary such terms and provisions in its sole discretion depending upon the individual tenant as well as the individual building and/or lands that are being leased/subleased/licensed.

cs20030911.htm

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