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.













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   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.










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   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.    

    










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   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. 







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   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.






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   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.




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