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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.
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