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; - 2 - 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. - 3 - 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. - 4 - 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. * * * * *