SUPPORTS ITEM NO. 4 T&T COMMITTEE AGENDA MARCH 25, 1997 ADMINISTRATIVE REPORT Date: March 11, 1997 Dept. File No. H193-34 CC File No. 1203-1 TO: Standing Committee on Transportation and Traffic FROM: General Manager of Engineering Services SUBJECT: The Vancouver Trolley Company - Renewal of Licence Agreement RECOMMENDATION A. THAT Council approve a five year licence agreement between the City of Vancouver and the Vancouver Trolley Company (1996) Ltd. permitting the Company to operate a sightseeing tour bus enterprise in the City of Vancouver. B. THAT Council authorize the General Manager of Engineering Services to negotiate and conclude a licence agreement with the Company on the terms and conditions set out in this report and others satisfactory to the General Manager and the Director of Legal Services, it being understood that no legal relations are created and none shall arise until an agreement drawn to the satisfaction of the Director of Legal Services is executed by her on behalf of the City. COUNCIL POLICY Previous Council resolution permitted a lease agreement with the Vancouver Trolley Company for the placement of the kiosk and identification signs on City street allowance. - 2 - PURPOSE The purpose of this report is: - to report back to Council as instructed in April 1992; - to review the placement of the Vancouver Trolley Company ticket information kiosk on City street allowance; - to review the installation of Trolley Company identification signs at designated locations; - to review operational concerns and proposed route changes; and - to recommend renewal of the licence agreement for a five-year term, with the General Manager of Engineering Services having the right to terminate the agreement at any time. BACKGROUND In 1991, Council approved the operation of the Vancouver Trolley Co. for a one year trial period. The approval included the designation of tour routes and stops, and the placement of a ticket/information kiosk on City street allowance at the intersection of Water/Cordova/Richards. On March 31, 1992, Council approved a recommendation to enter a licence agreement with the Vancouver Trolley Company to continue operation for a further five years. This agreement which gave permission for the installation of a kiosk and Vancouver Trolley Company identifica-tion signs on City street allowance expired on January 31, l997. The Motor Carrier Commission is the regulatory body which approves applications for a motor carrier licence, and can give route approval for scheduled services. The City, as owner of its streets, and Park Board, through control of the Parks, can determine where the trolleys and other vehicles are permitted to travel. DISCUSSION Past Performance The Vancouver Trolley Co. has been operating in the city for the past six years. There have been some issues related to stop locations, routes, frequency, and noise which have been discussed among staff, residents, and the Company. - 3 - New Ownership Ownership of the Company changed in November, 1996, and Jim and Karen Storey became the sole owners and operators. The new owners have consulted with City staff and have been helpful in resolving these issues. Kiosk The Trolley Company kiosk, which is installed at the beginning of each season, on the south side of Water Street east of Richards Street, is used to sell tickets and distribute information. As the Trolley Co. does not operate during the winter months, the kiosk must be removed from the street as a condition of the lease agreement. Annual installation and removal has been effected in a timely manner. The kiosk has been well maintained and is an addition to the Gastown streetscape. Identification Signs The Trolley Company identification signs are installed annually in the spring by City crews and are removed at the end of the Trolley Company's operating season, normally in late October. The installation and removal of these signs is done at the expense of the Trolley Company, and there have been no problems to date with this arrangement. Routes The only requests for changes to the operation of the Vancouver Trolley Company have come from members of the Kitsilano Point Residents Association. The Residents Association concerns in the past focused on: - the trolley coach stopping on Ogden Street; and - the ringing of the on-board bell at the Maritime Museum trolley stop. These issues were resolved by: - moving the stop inside the Maritime Museum parking lot; and - requesting that the drivers not ring their bell when they arrived at a designated stop. - 4 - More recently, additional concerns were raised about: - transmission noise from two of the trolley vehicles, particularly when exiting the Maritime Museum Parking Lot; - the frequency of the trolley vehicles in Kitsilano Point; and - vehicle occupancy levels when inside the Kits Point area. The Kitsilano Point Residents Association has requested that: - the trolley vehicles travel only to the Pacific Space Centre; and - the trolley vehicles exit via the same route travelled to the Pacific Space Centre and Vancouver Museum, which is Chestnut Street, Greer Street and Cypress Street. This routing would eliminate the Maritime Museum stop and avoid passing Kitsilano Beach. Jim Storey, following discussions with City staff, has indicated: - that the transmission problems which caused the residents concerns over engine noise have been repaired; and - that the issue over frequency involves overflow buses which the Vancouver Trolley Company is permitted to use by the Motor Carrier Commission at times of heavy loading; - that attempts would be made to combine the passengers from an overflow trolley with that of a regular scheduled trolley before entering the Kits Point area; - that the proposed route service to the Maritime Museum was being dropped and this service would be provided at the Pacific Space Centre and Vancouver Museum; and - that the elimination of Ogden Street and Arbutus Street in favour of the same route in and out via Cypress, Greer and Chestnut Streets can be accommodated. Mr. Storey remains committed to operating a first-class tour bus operation while respecting the wishes of residents in areas his company operates vehicles, and he has demonstrated a high degree of responsibility in responding to requests from City staff. The Vancouver Trolley Company has made application to the Motor Carrier Commission for approval to operate a revised route and for an increase in fees for their Vancouver Attractions Tour for 1997. - 5 - Annual Lease Payment The annual lease payment for the kiosk over the past five years was $1,000. This amount was based on fees for other types of street use such as street vending and sidewalk cafes. The area used by the kiosk is approximately triple the area used by a street vendor. Since 1991, fees for street vending have increased. For example, a dry goods vendor paid $300 per year in 1991 and pays $450 in 1997. Based on this increase, it is recommended that the lease payment for the Trolley Co. kiosk be increased to $1,400 annually plus GST for a further five-year term. LICENCE AGREEMENT The Director of Legal Services will prepare a licence agreement between the City of Vancouver and the Vancouver Trolley Company (1996) Ltd. for a period of five years ending January 31, 2002, and that the General Manager of Engineering Services has the right to terminate at any time. The basic terms upon which the General Manager of Engineering Services would grant a licence to the Vancouver Trolley Company (1996) Ltd. are as follows: 1. THAT the placement of the ticket information kiosk and the installation of the Vancouver Trolley Company identification signs be subject to the approval of the General Manager of Engineering Services. 2. THAT all signs and kiosk installation and removal costs be the responsibility of the Vancouver Trolley Company (1996) Ltd. 3. THAT the Vancouver Trolley Company (1996) Ltd. signs be allowed in conjunction with the City's regulatory signing. 4. THAT the kiosk and identification signs be removed from City street allowance when the Company is not in operation. 5. THAT the Vancouver Trolley Company (1996) Ltd. be required to carry public liability insurance satisfactory to the Director of Risk Management. 6. THAT the Vancouver Trolley Company (1996) Ltd. enter into a lease agreement with the City of Vancouver. 7. THAT a fixed annual lease payment of $1400 plus GST be charged for the placement of the kiosk for the term of the agreement. - 6 - CONCLUSION Based upon the successful operation of the Vancouver Trolley Company to date, and the willingness of new company management to work with City staff in addressing both City and residents' concerns with the Trolley operation, the General Manager of Engineering Services recommends annual renewal of a revised licence agreement which constitutes approval of: - continued annual placement and removal of the kiosk on the south side of Water Street, East of Richards Street; - an increase in the annual lease payment for placement of kiosk on City street allowance from $1000 to $1400; and - continued annual installation and removal of Vancouver Trolley Company identification signs on City street allowance. * * * * *