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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