SUPPORTS ITEM NO. 4
CS&B COMMITTEE AGENDA
OCTOBER 26, 1995
ADMINISTRATIVE REPORT
Date: October 17, 1995
TO: Standing Committee on City Services and Budgets
FROM: Director of Legal Services, in consultation with the
Manager of Facilities Development
SUBJECT: Legal Services - Relocation to VanCity Building
RECOMMENDATION
A. THAT Council approve the move of the Legal Services Office to
VanCity Building, and authorize an additional $15,000 for
renovation work for a total capital budget of $175,000; the
source of funds to be the existing allocation for the City
Hall Precinct in the 1995 Capital Budget.
B. THAT Council approve an increase in the annual Legal Services
operating budget of $152,000 for rent and operating costs for
the space leased from the Property Endowment Fund; the source
of funds for the 1995 portion ($25,000) to be provided from
Contingency Reserve.
C. THAT Council approve a one-time expenditure of $160,000 to
provide data and telephone cabling from City Hall to the
VanCity Building to service the office of Legal Services and
future City offices; the source of funding to be the Property
Endowment Fund and recovery from monthly rents.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of A, B and C.
COUNCIL POLICY
As part of the 1994-1996 Budget Management Program, Council instructed
that all requests for new program or staff expenditures should be
offset by equivalent expenditure reductions or appropriate revenue
increases.
PURPOSE
The purpose of this report is to recommend that the office of Legal
Services be relocated to the fourth floor, VanCity Building, into
space recently vacated by VanCity, and to report on the capital and
operating costs for the new offices.
BACKGROUND
In June 1995, Council approved an automation project for Legal
Services and funding of $160,000 for office renovations in the East
Wing. Council also approved the recommendation of the Manager,
Facilities Development, that consideration be given to relocating
Legal Services to the VanCity Building, for report back on capital and
operating costs.
DISCUSSION
In the June 1995 report to Council, the City Manager reported that in
order to implement the proposed technological changes in the operation
of the Law Department significant physical changes were required to
the existing East Wing office space ($160,000), particularly in the
clerical area. Council was also advised that given the extent of the
proposed renovations and need for additional space by Community
Services (Planning and Permits & Licenses) in the East Wing,
consideration be given to relocating Legal Services into 7,400 SF of
the 45,000 SF space scheduled to be vacated by VanCity on October 15,
1995. A subsequent report will deal with the recommended use of the
remaining vacant space.
Capital and Operating Costs
A detailed design of the office space to be occupied by Legal Services
(see Appendix A) on the fourth floor of the VanCity Building has
indicated that renovation costs will be approximately $175,000. This
is only slightly higher than the cost anticipated in the original
renovation contemplated for the fourth floor of the East Wing. As the
move of Legal Services to VanCity will free up needed space in the
East Wing for use by Community Services, it is recommended that
Council approve the relocation despite the additional expense.
Funding for the renovation costs are available in the existing City
Hall Precinct allocation in the 1995 Capital Budget.
The move of Legal Services to the VanCity Building will require the
payment of rent and operating costs to the Property Endowment Fund.
The annual costs, based on $12.00 per square foot for rent and $8.50
per square foot for operating costs, is estimated at $152,000.
Funding for these costs will have to be added to the Operating Budget
beginning in 1996. The 1995 portion of the rent will be $25,000, with
funding recommended to be provided from Contingency Reserve.
Communication Costs
The second component of this project deals with the provision of voice
and data link to City Hall from the VanCity Building. In 1991,
Planning Department and Hastings Institute personnel in the VanCity
Building were connected to the switchboard and main frame computer in
City Hall. This was done using spare capacity in a cable that
connected City Hall to 456 West Broadway and the downtown area. Since
that time, staff from the Human Resources and Engineering Departments
have been relocated to the VanCity Building. This has used up all
available circuits in that cable and in order to accommodate telephone
and data transmission needs of additional staff at VanCity additional
circuits will have to be provided.
It is proposed that a 600 pair telephone cable and a fibre optic cable
for data be installed between City Hall and the VanCity Building.
While this installation is required to service the Legal Services
move, it will benefit future staff relocations. As a result, it is
proposed that the estimated cost of $160,000 be provided by the
Property Endowment Fund in-lieu of tenant improvement allowances
normally provided in commercial leases. These costs will then be
recovered by the PEF through rents.
* * * * *