A1 ADMINISTRATIVE REPORT Date: May 21, 1996 Dept. File No. TD TO: Vancouver City Council FROM: General Manager of Community Services, on behalf of the Selection Committee SUBJECT: Appointment of Development Consultant for the Southeast Shore of False Creek RECOMMENDATIONS A. THAT Council appoint Stanley Kwok Consultants Inc. as Development Consultant for the Southeast Shore of False Creek, subject to the identification of a Project Manager to the satisfaction of the Manager of Real Estate Services, and subject to a contractual agreement to the satisfaction of City Manager and the Director of Legal Services. B. THAT Council instruct that the Development Consultant report directly to the Property Endowment Fund Steering Committee, rather than through an intermediary. COUNCIL POLICY City Council must approve consultant contracts in excess of $30,000. BACKGROUND In May 1995, Council did not approve a staff recommendation that Stanley Kwok Consultants Inc. be retained as the Development Consultant for the Southeast Shore of False Creek. Council instructed that a Selection Committee of two Council members and two staff members, not previously involved, be appointed to review the terms of references for a Request for Proposals and the proposals when submitted. The Selection Committee members are Councillor Clarke, Councillor Hemer, Mr. Droettboom (General Manager of Community Services), and Mr. Rudberg (General Manager of Engineering Services). DISCUSSION The Selection Committee received proposals from twenty individuals and firms. These proposals were evaluated against five principal criteria: 1. The proponent's ability to achieve public policy objectives in a land-use plan for the Lands while at the same time reconciling the City's financial responsibility as landowner; 2. The reputation, relevant experience and past performance of the proponent; 3. The proponent's scheduling of the services in relation to the Council-approved schedule for the SESFC planning process and the ability to complete the services within the timeframe required by the City; 4. The overall cost impact of the proposal, including the addition of all applicable taxes to the prices quoted, and the fee structure proposed; and 5. The best value to the City based solely on the City's assessment of the proposal. From the 20 proposals, the Committee selected a short list of five to be interviewed. These were: - Michael Geller and Associates Limited - The Hulbert Group International Inc. - Stanley Kwok Consultants Inc. - MTR Consultants Ltd. - The Spaxman Consulting Group Ltd. with TLELL Ventures Ltd. The Spaxman/TLELL partnership had to withdraw from the competition because of a competing assignment. The Committee interviewed the remaining four firms and selected one to recommend to Council. While all the interviewed firms are strong, the Committee is unanimous in concluding that Stanley Kwok Consultants Inc., in particular Mr. Kwok, offer the best combination of skills and experience for this assignment. Mr. Kwok has the most extensive background in successfully managing development on sites of similar size and complexity to the Southeast Shore of False Creek and has a good track record of working cooperatively with City staff. The Committee's recommendation to employ Mr. Kwok is, however, conditional on the clarification of two issues. The first issue concerns the Project Manager, whom Mr. Kwok proposes to assist him in the coordination of the development work. Mr. Kwok had suggested seconding an existing City member for this job. However, we have been informed that this staff member cannot be made available. Mr. Kwok will need to identify another Project Manager to the City's satisfaction. The second issue concerns Mr. Kwok's reporting relationship to the City's Property Endowment Fund (PEF), the owner of Southeast False Creek parcels. The original proposal for the organization of the project had the Development Consultant reporting to the PEF Steering Committee through a Project Director, the Deputy Manager of Real Estate Services. The Selection Committee, having regard to Mr. Kwok's successes with a more traditional direct reporting model, recommends that Mr. Kwok report directly and regularly to the Steering Committee. This will ensure unambiguous accountability for the project's progress. The consultant would, nonetheless, continue to coordinate his relationship with the City through the Real Estate Services Division, and that division would continue to provide independent staff advice to the PEF. That advice may include commentary on the consultant's program and recommendations. Mr. Kwok proposes to bill his personal time at $200/hour ($300/hour overtime rate) but to cap his annual billing at $150,000. The City will also be responsible for covering the cost of a Project Manager, estimated at $90,000/year, and project offices costs, including secretary, at an estimated $60,000/year. The total core consultant costs are, therefore, estimated at about $300,000 a year. The costs of sub-consultants (architects, engineers, and planners) are estimated to average $600,000/year over the projected two-year life of the planning program. Consistent with policy, these sub-consultants will be subject to Council approval. The project may be terminated after a six-month feasibility study phase if it is found to be uneconomic at this time. The consultant contract will be structured to allow for this possibility. * * *