A11 ADMINISTRATIVE REPORT Date: January 28, 1997 TO: Vancouver City Council FROM: Director of Civic Theatres SUBJECT: Asbestos Abatement - Queen Elizabeth Theatre/Vancouver Playhouse complex. RECOMMENDATION THAT Council approve capital funds not to exceed $580,000, in advance of approval of the 1997 Capital Plan Budget, for removal of asbestos impregnated materials in the Queen Elizabeth Theatre and Vancouver Playhouse Lobbies. Source of funds to be the 1997-1999 Capital Plan. CITY MANAGER'S COMMENTS The City Manager recommends approval of the foregoing. COUNCIL POLICY There is no policy directly related to this subject. The 1997-1999 Capital Plan includes funding for Civic Theatres of $850,000 which includes $500,000 for asbestos removal in the Queen Elizabeth Theatre and $350,000 for expansion of women s washroom facilities at the Orpheum. PURPOSE This report requests approval of capital funds in the amount of $390,000 for removal of asbestos-impregnated ceiling finishes from the Main and Mezzanine Lobbies of the QET and an additional $190,000 to remove the same kind of finishes from the Playhouse Main and Upper Lobbies. BACKGROUND The Queen Elizabeth Theatre was completed in 1959, the Vancouver Playhouse in 1962. Typically for that time, many of the ceilings in the complex were textured with a material that contains asbestos fibres. During 1993, 1994 and 1995 cracks and bubbles began to appear in some of ceilings, indicating delamination. In the QET upper lobby, some patches collapsed and were cosmetically repaired. The ceilings of two dressing rooms in the Playhouse collapsed - they were stripped and refinished. An area of one lower lobby in the QET collapsed - it was stripped and refinished. The ceiling of one of the star dressing rooms in the QET collapsed and all of the others were noted to be delaminating - they were stripped and refinished. As a result of the progressive failure of these ceilings, a specialist consultant was asked to advise on the situation. The analysis indicated that deterioration of the bond between the textured asbestos-containing layer and the plaster layer above it was underway. The upper lobby ceiling of the QET was deemed to be the highest risk. Accordingly, funds were allocated from Supplementary Capital and that ceiling was removed in the summer of 1995. DISCUSSION Queen Elizabeth Theatre A spontaneous collapse in a main public area of the theatre would trigger closure of the theatre until abatement and remedial work is completed. In such a case, liability is not limited to the cost of abatement, disposal of carpeting and the cost of remedial finishes. Closure of the theatre would catastrophically impact a Licensee with a show running. Gross ticket sales for a standard 8-performance week in the QET can exceed $1.2 million per week. Based on the 1995 upper lobby ceiling removal, the theatre would be closed for at least 3 weeks, even working around the clock. The Main and Mezzanine Lobbies are the most critical areas as all entrances to the auditorium open off these lobby areas. There are asbestos ceilings also in the Lower East and West Lobbies, but these areas are relatively self-contained and we believe that a collapse there could be contained without closing the theatre. Similarly, there is one remaining backstage room, the QET Rehearsal Hall, with an asbestos ceiling; this room can also be separately contained. The extent of the areas affected (12,500 sq. Ft.) and the height of many of the ceilings will require closing the theatre for an estimated period of 6 weeks, based on no scheduled overtime. There is time in the coming summer to complete the removal of the designated textured ceilings without impacting theatre bookings and without incurring premium labour rates. Advance bookings for 1998 and subsequent years may not offer such an opportunity for closure. Vancouver Playhouse Although the Capital Planning Team did not recommend the Playhouse Theatre project as part of the 1997-1999 Plan, the consultant advises that we should be equally concerned about spontaneous collapse of asbestos-containing ceiling finishes there and he has encouraged us to include the Playhouse in this application. The Playhouse has a number of areas with asbestos textured ceilings; the Main and Upper Lobbies, the Recital Hall and Green Room and all but two of the Dressing Rooms. As with the QET, only failure of the Lobby ceilings (6,000 sq. Ft.) would cause closure of the theatre. The other rooms can all be contained. Project Timing The project is estimated to require 6 weeks for removal and remedial work which is available in the QET from June 2 to July 20, 1997 and from July 7 in the Playhouse. FINANCIAL IMPACTS QET Main and Mezzanine Lobbies; removal and remedial work where necessary including electrical, mechanical and life-safety systems: $390,000 Playhouse Main and Upper Lobbies: $190,000 TOTAL for both: $580,000 Although there are always unknowns involved in renovations, we believe these estimates allow adequate contingency and are conservative. To the extent that the final cost exceeds the $500,000 budgeted in the Capital Plan, it is recommended to fund the excess from the $350,000 budgeted for the Orpheum washroom expansion. CONCLUSION Capital funds are requested, in advance of budget approval, to remove delaminating asbestos-impregnated lobby ceiling finishes in the Queen Elizabeth Theatre/Vancouver Playhouse complex. The time needed is available in June and July 1997, without impacting bookings. Estimated cost of the project is: QET - $390,000; Playhouse - $190,000. * * * * *