A14
ADMINISTRATIVE REPORT
Date: March 10, 1997
Dept. File No. Rev 1
CC File No. 5558-1
TO: Vancouver City Council
FROM: General Manager of Engineering Services
SUBJECT: Interurban Car 1231 (B.C. Transit's Car in Victoria)
RECOMMENDATION
A. THAT Council approve the following final terms and conditions
for an agreement with British Columbia Transit, the owner of
Interurban Car 1231 (the "Car"):
1) Form of Agreement: Lease;
2) Term: 20 years;
3) Renewal: The City may renew for one additional 20 year
term (40 years total) provided that the City is not in
default of any terms of the agreement;
4) Fee: $100 for the first 20 year term and, if the lease
is renewed, $100 at the time of entering the second 20
year term;
5) Restoration: The City is to complete the restoration of
the Car up to a maximum cost of $80,000) to be spent by
July 31, 1997;
6) Storage: The City is obligated at its sole cost to
provide secure, ventilated storage in a leak-proof
building for the Car as of July 31, 1997;
7) Termination: The City may terminate the agreement on 6
months notice. The owner may only terminate the
agreement if the City is in default;
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8) Decision Powers: Decisions relating to the operation, if
the City obtains the necessary power and authority to
operate the Car, and the display of the Car are at the
City's sole discretion, except for decisions relating to
any work or improvements to the Car and the storage of
the Car;
9) Transport: The City shall be responsible for all
transportation costs related to the Car, including
bringing the Car to Vancouver from Victoria and the
eventual return of the Car to BC Transit's Surrey yard at
the end of the term. This is in addition to the $80,000
obligation of the City to restore the Car and the cost of
moving the Car to Vancouver will be incurred by no later
than July 31, 1997;
10) Insurance: The City shall be responsible to insure the
Car against loss or damage from all causes. The
Agreement shall bear the entire risk of loss, theft and
damage to the Car from every cause whatsoever until the
termination of the Agreement;
11) Indemnity: Transit is requiring that the City indemnify
and save harmless British Columbia Transit against all
liability related to Car 1231 and all liability and
damages to any persons or property, including death and
personal injury relating to the Car or the use or
operation of the Car while in the custody of the City and
all actions or omissions of the City in connection with
the lease and the restoration, transporta-tion,
possession, repair or maintenance of the Car; and
12) Additional Terms: Such further and other arrangements as
seem appropriate to the General Manager of Engineering
Services and the Director of Legal Services.
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B. THAT Council authorize the General Manager of Engineering
Services and/or the director of Legal Services to execute the
necessary documents to effect the above recommendations. No
legal obligation shall arise until the document is fully
executed.
COUNCIL POLICY
Council has established transportation priorities which emphasize
encouraging transit.
Council supports preserving and promoting street car heritage.
PURPOSE
The purpose of this report is to seek Council approval of the final
terms and conditions for the lease of Interurban Car 1231.
BACKGROUND
The City has now entered into a lease for Interurban Car 1207 which has
now been moved to the 6th Avenue and Moberly site. However, the lease
of Car 1207 is only for 5 1/2 years, with no certainty of any extension.
To secure Vancouver's heritage beyond this time, on July 30, 1996
Council authorized staff to explore opportunities with BC Transit to
secure a second car, Interurban Car 1231, which is owned by BC Transit
and is currently in their Victoria yard.
BC Transit requested proposals from parties interested in Car 1231. The
City was successful in winning the proposal. In response to this, on
October 7, 1996, Council authorized staff to negotiate the details of a
lease with BC Transit to secure Interurban Car 1231.
This report identifies the proposed terms for the lease of Car 1231.
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DISCUSSION
Staff have been negotiating with BC Transit terms consistent with
Council's October 7, 1996 approval. The proposed terms are outlined in
Recommendation A and further detailed below.
Term: Car 1231 is to provide the City with long term tenure of a street
car and has a lease term of up to 40 years. The lease term is 20 years
with an option to renew for a further 20 years. This gives the City the
long term security it needs to preserve Vancouver heritage and to
warrant completing the restoration.
Funding/Restoration: Council has previously authorized the funding
($110,000) required to complete the restoration and to move the Car from
Victoria to Vancouver. BC Transit has spent approximately $300,000 to
date restoring the Car. As a condition of the lease, the City is to
complete the restoration (to a maximum cost of $80,000). This funding
expenditure is consistent with the funding approved by Council on
October 7, 1996. The restoration will be completed to the greatest
extent possible in Victoria with the assistance of the volunteers that
have done the restorations to date.
Indemnity: BC Transit requires an indemnification from the City to
protect them from any claims related to the Car and any damages,
including death and personal injury and property damage to any third
parties relating to the Car.
Storage: The final location for display and/or operation is not yet
determined and will be reported to Council. The display building may be
costly unless incorporated into a facility used by operating trolley
system
CONCLUSION
With the finalization of this lease, the City has preserved a unique
piece of Vancouver heritage.
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