CITY OF VANCOUVER
REGULAR COUNCIL MEETING MINUTES
STANDING COMMITTEE OF COUNCIL ON
CITY SERVICES AND BUDGETS
JUNE 26, 1997
A Regular Meeting of the Council of the City of Vancouver was held
on Thursday, June 26, 1997 at approximately 6:30 p.m., in Committee
No.1, Third Floor, City Hall, following the Standing Committee on City
Services and Budgets meeting, to consider the recommendations of the
Committee.
PRESENT: Mayor Philip Owen
Councillor Don Bellamy
Councillor Alan Herbert
Councillor Lynne Kennedy
Councillor Daniel Lee
Councillor Don Lee
Councillor Gordon Price
Councillor George Puil
Councillor Sam Sullivan
ABSENT: Councillor Nancy A. Chiavario (Leave of
Absence)
Councillor Jennifer Clarke (Leave of Absence)
CLERK TO THE
COUNCIL: Allisen Croft
COMMITTEE OF THE WHOLE
MOVED by Cllr. Puil,
SECONDED by Cllr. Bellamy,
THAT this Council resolve itself into Committee of the Whole, Mayor
Owen in the chair.
- CARRIED UNANIMOUSLY
COMMITTEE REPORTS
Report of Standing Committee on City Services and Budgets
June 26, 1997
Council considered the recommendations of the Committee, as
contained in the following clauses of the attached report:
Cl. 1: Brockton Totem Poles Concession/Visitor Centre
Cl. 2: Budget Approval and Financing Plan for the New Asphalt
Plant, Aggregate Handling Facility, and Testing
Laboratory
Cl. 3: New Operating Agreement - Parking Corporation of
Vancouver
Clauses 1, 2 and 3
MOVED by Cllr. Puil,
THAT the recommendations of the Committee, as contained in Clauses
1- 3 of the attached report, be approved.
- CARRIED UNANIMOUSLY
(Councillors Sullivan and Puil were opposed to Recommendations A and B
of Clause 3; and Councillors Kennedy and Daniel Lee and
the Mayor were opposed to Recommendation C of Clause 3)
RISE FROM COMMITTEE OF THE WHOLE
MOVED by Cllr. Bellamy,
THAT the Committee of the Whole rise and report.
- CARRIED UNANIMOUSLY
ADOPT REPORT OF COMMITTEE OF THE WHOLE
MOVED by Cllr. Puil,
SECONDED by Cllr. Bellamy,
THAT the report of the Committee of the Whole be adopted.
- CARRIED UNANIMOUSLY
The Council adjourned at 6:35 p.m
* * * * *
REPORT TO COUNCIL
STANDING COMMITTEE OF COUNCIL
ON CITY SERVICES AND BUDGETS
JUNE 26, 1997
A Regular Meeting of the Standing Committee of Council on City
Services and Budgets was held on Thursday, June 26, 1997 at
approximately 2:10 p.m. in Committee Room No. 1, Third Floor, City Hall.
PRESENT: Councillor George Puil, Chair
Mayor Philip Owen
Councillor Don Bellamy
Councillor Alan Herbert
Councillor Lynne Kennedy (Clause 3)
Councillor Daniel Lee
Councillor Don Lee
Councillor Gordon Price
Councillor Sam Sullivan
ABSENT: Councillor Nancy A. Chiavario (Leave of
Absence)
Councillor Jennifer Clarke (Leave of Absence)
CLERK TO THE
COMMITTEE: Allisen Croft
ADOPTION OF MINUTES
The Minutes of the Standing Committee on May 15, 1997 were
adopted.
RECOMMENDATION
1. Brockton Totem Poles Concession/Visitor Centre File: 4155
The Committee had before it an Administrative Report dated May 14,
1997 (on file), in which the General Manager of Parks and Recreation
recommended that funding for the proposed Visitor Centre at the Brockton
Totem Poles Site in Stanley Park be approved. The Director of Finance
has noted the Park Board also is requesting that Council provide project
financing. It is being funded outside the Park Board Capital Plan
because the project demonstrates a reasonable business plan with a
payback period within acceptable range. The Board proposes to repay the
loan from the incremental net revenues that the project will generate,
without further City participation. Under current financing terms, the
loan will be repaid within eight years at the City s current financing
rate.
The Chair emphasized that the Committee is being asked only to
approve the request from the Park Board to borrow $500,000 from the
Property Endowment Fund (which is separate from tax monies and has
nothing to do with the City s regular budget) and will not address the
decision of the Park Board on May 5, 1997 approving the concept for the
Visitor Centre.
Philip Josephs, Director of Administration and Revenue Services for
the Park Board, provided background information and responded to
questions.
The following speakers were opposed to provision of the requested
funding:
George Frankel, Operator of the Prospect Point Cafe
(brief on file)
Eleanor Hadley, West End Resident
Alan Hawkins, Financial Advisor to Mr. Frankel (brief on
file)
Renee Jensen, West End Resident
Jim Neal, Friends of Stanley Park and
Fraserview Residents Association
Gerome Ziskrout, Legal Advisor to Mr. Frankel
A summary of the key issues raised by Eleanor Hadley, Renee Jensen
and Jim Neal, relating to environmental concerns, taxes and use of
Stanley Park by local residents, follows:
City Council should not consider such a proposal when no policy
guidelines have been established. Furthermore, $500,000 should not
be spent on a project that was previously rejected by taxpayers,
when they are so many other areas in Stanley Park that require
attention.
There is strong opposition to taxpayers' money being used for this
purpose and the process should be open to public scrutiny and
inspection. In essence, the money will be utilized to expand
commercial interests in Stanley Park.
The proposal is based on the needs of tourists and tour bus
operators, rather than those of local residents. We should not
encourage more tour buses when local residents already are exposed
to pollution from diesel fuel fumes. There are enough washrooms in
the Park now - why install more in the Totem Pole area just for the
convenience of tour bus patrons, most of whom stop only for a few
minutes?
Many tour buses have their own toilets, so extra washrooms are not
needed in the Totem Pole area. An expenditure of $500,000 for a
hot dog stand and toilets is unnecessary. They are four good
restaurants and eight concession stands in the Park now. It would
appear that Stanley Park is rapidly being commercialized.
A compendium of the points raised by George Frankel, Alan Hawkins
and Gerome Ziskrout objecting to the proposed funding, on the grounds it
would negatively impact on the Prospect Point Cafe operation, follows:
A lease agreement was recently concluded between the Lessee of the
Prospect Point Cafe and the Park Board, whereby the former
committed to an investment in the neighbourhood of $1 million to
upgrade the facility, as a condition of the lease. Now the Park
Board is seeking to fund a 2,400 sq. ft. commercial pavilion at the
Brockton Point Totem Pole area. As that location will be the first
stop on tour bus routes, the landlord will be in direct competition
with the recently-enlarged gift shop and take-out stand at the
Prospect Point Cafe. In light of the debt incurred to comply with
construction requirements of the new lease, there is doubt whether
the Prospect Point Cafe operation can remain economically viable.
The issue is essentially a question of commercial morality and
fairness.
No tenant would invest a large amount of money in an operation
knowing that there will be direct competition from the landlord, at
a venue accessed in advance of the leased site. In this instance,
the tenant was not apprised of the proposed Visitor Centre until
after his investment was made. City Council should not approve
financing to a landlord - who pays neither rent nor utilities --
that takes steps which may destroy the investment and livelihood of
a tenant with a record of over a decade of fair dealings with the
Park Board.
The Lessee of the Prospect Point Cafe did not object to the
original proposal for a small push cart selling ice cream and
popcorn. However, this small concession has since escalated to two
mobile units. The Visitor Centre concession will start small only
to become larger, resulting in the projected revenue being
understated.
The City should consider that: (i) revenue generated by the Visitor
Centre will have almost a dollar-for-dollar negative effect on
revenue generated by the Prospect Point facility, resulting in a
decline in rental income to the Park Board at 8% for every dollar
of revenue redirected to the new Centre; (ii) the impact on
profitability of the two competing sites - creating the possibility
of marginally profitable or even non-profitable facilities; (iii)
the potential imbalance between nature and human services, as yet
another development is commenced; and (iv) making a decision
without obtaining full financial details of the Board's proposals.
The Committee should defer the requested approval, pending receipt
of a business plan and full construction costing for the project,
so as to make an informed decision. The Board's proposal contains
virtually no supporting financial details for the capital cost
estimate, nor estimate of new operating returns from the facility.
It was suggested that a 2,400 sq. ft. pavilion, including take-out
and gift shop facility, interpretative centre and public washrooms,
would more likely cost double the Board's estimate of $500,000,
which could change the economics of the project significantly.
Debra Sparrow, representing the Musqueam Indian Band, expressed
support for the proposed Brockton Totem Poles Visitor Centre. It is
time for all parties to get together to ensure that everyone derives
benefits from the Park. The history, tradition and crafts of the First
Nation People, including those of the Coast Salish Nation, need to be
represented with integrity. The Native People will work with the Park
Board in planning the new Centre and are willing to work with Mr.
Frankel and other interested parties, as well. There are enough people
coming through the Park to benefit both facilities, and different routes
could be taken by visitors through the Park.
Vince Miele, BC Paraplegic Association, requested that the proposed
Centre have total wheelchair and disabled access throughout for local
visitors and tourists, and that public washrooms include male and female
stalls for the disabled, as well as a unisex stall so that disabled
persons with attendants of the opposite sex can use the facility. He
asked that disabled access be built in during the initial stages, rather
than as an afterthought; that plans for the new Centre be presented to
the Special Advisory Committee on Disability Issues; and, where
feasible, that employment opportunities be open to persons with
disabilities.
The Committee was sensitive to the concerns registered by Mr.
Frankel and his Financial and Legal Advisors and concerned that the Park
Board might be construed as competing with its tenant in this instance.
It was the consensus that the Park Board be encouraged to consult with
Mr. Frankel in developing a marketing strategy for the new concession
and reach compromise on the product mix and merchandise assortment to be
sold, in accordance with the Resolution (D) it adopted on May 5, 1997.
The following motion by the Mayor was put and carried. The
Committee, therefore,
RECOMMENDED
A. THAT funding for the proposed Visitor Centre at the Brockton
Totem Poles Site in Stanley Park, as proposed in Appendix A to
the Administrative Report, dated May 14, 1997, be approved
with financing to be provided by a loan from the Capital
Financing Fund, on terms satisfactory to the Director of
Finance, to be repaid from the Park Board Global Budget.
B. THAT the Park Board be requested to develop a marketing plan
in consultation with the Lessee of the Prospect Point Cafe on
the type of merchandise to be sold in the Visitor Centre.
- CARRIED UNANIMOUSLY
2. Budget Approval and Financing Plan for the New Asphalt Plant,
Aggregate Handling Facility, and Materials Testing Laboratory File
5801
Council had for consideration an Administrative Report dated June
3, 1997 (on file) in which the General Manager of Engineering Services
requested approval for the acquisition of a portion of 900 East Kent
Avenue in exchange for the estimated proceeds on the sale of existing
Engineering Services Assets, and development thereon of an
asphalt/aggregate facility at a cost of $13,306,000. In addition,
funding was recommended for the Consultant to proceed with final design;
general engineering and inspection services at a cost of $834,000; a
Materials Testing Laboratory at a cost of $1,190,000; and a Project
Manager. The report also requested Council approve a financing plan and
proposed the sale of Engineering land assets necessary to acquire the
land at 900 East Kent Avenue.
David Rudberg, General Manager of Engineering Services, with the
aid of an overhead slide presentation, reviewed the report and responded
to questions.
The following speakers opposed the recommendations of the Report:
John Schnablegger, B.C. Roadbuilders & Heavy Construction
Association, (brief on file) advised he represented the interests of
both the Industry (170 companies) and the City in suggesting that the
attenuated risks had not been taken into consideration. Not only would
the return on the investment of public funds be minimal, the proposal
also is fraught with risks that could easily transform a $500,000 annual
savings into a $1 million annual loss. The cost of aggregate, which has
doubled in the past five years, is the most obvious risk and
construction cost over-runs, environmental liability and overall
technological change represent further risks.
Ken Hiltchen, LaFarge Canada Inc., (brief on file) registered
concern that the City is working against the private sector in not
putting the supply of their aggregate requirements out to tender and
suggested this would work hardship on a number of local suppliers, as
well as the City s taxpayers.
Mr. Rudberg cited a number of errors in the assumptions put forward
by Mr. Schnablegger and stated that the City s Financial Department had
examined the proposal in
depth and was satisfied with the analysis.
The following motion by Councillor Price was put and carried. The
Committee, therefore,
RECOMMENDED
A. THAT Council approve an expenditure of up to $250,000 from the
Property Endowment Fund (PEF) for costs associated with the
purchase of the 900 East Kent Avenue Site (900 Kent). Once
the final costs are known, they will be added to the purchase
price and pro-rated to the PEF and Engineering Services.
B. THAT Council approve the purchase by Engineering Services of
approximately six acres of the western parcel, Block P, of 900
Kent at a cost of $4.1 million, with funding to be provided by
the sales of Sterling Shipyard and Commissioner Street Yard
($2.1 million) and of Stainsbury Yard ($2.0 million) to the
PEF.
C. THAT Council, based on the Preliminary Design and Class 'B'
Estimate, approve a project budget of $13,306,000 for the
construction and commissioning of an Aggregate Handling and
Asphalt Plant operation, at 900 Kent.
D. THAT Council, based on a Class 'D' Estimate, approve a budget
of $1,190,000 for a Materials Testing Laboratory, to be
constructed at 900 Kent.
E. THAT Council authorize the General Manager of Engineering
Services to instruct Westmar Consultants Inc., (the
Consultant), to proceed with Phases II and III of the
Consultant Services Contract - Final Design, General
Engineering, Inspection and Record Services, valued at
$834,000.
F. THAT Council approve funding of $152,000 for a temporary
Civil Engineer II to manage the design, construction and
commissioning of the project.
G. THAT Council approve financing for the Asphalt/Aggregate
Plant, including Consultant Services, Material Testing Lab and
Project Manager, as follows:
Capital Financing Fund Loan $ 11,282,000
Truck Plant Account 4,000,000
Streets Capital Budget 150,000
Waterworks (Fire Protection) Budget 50,000
H. THAT Council authorize the General Manager of Engineering
Services to call for proposals for a public/private
partnership for a waste concrete and asphalt
crushing/recycling pilot project.
- CARRIED UNANIMOUSLY
3. New Operating Agreement - Parking Corporation of Vancouver File
1203
The Committee had before it an Administrative Report dated May 5,
1997 (on file) in which the General Managers of Engineering and
Corporate Services requested approval for the Mission, Goals and
Operating Principles for the Parking Corporation of Vancouver (VPC) and
authorization to the Director of Legal Services to approve the new
operating agreement on behalf of the City, after it is deemed
satisfactory to the parties.
The City Manager provided comments on the report for the
information of the Committee and recommended approval of its
recommendations.
David Rudberg, General Manager of Engineering Services, reviewed
the Report and responded to questions. Proposals in the report broaden
the mandate of the VPC in a number of operating areas, which to date
have resided with City staff and Council. In the past, there has been a
fair amount of City control over VPC operations, which they feel has
hampered their ability to manage and make timely decisions. It is
recommended that the authority granted to VPC include the ability to
control, operate, maintain, enforce, facilitate on-site way finding and
carry out business in accordance with City policies and joint venture
partner agreements. While greater autonomy is proposed, there will also
be more accountability as demonstrated in the proposed Mission Statement
and Goals for the VPC.
It is proposed to assign all existing and future commercial,
off-street City parking facilities to VPC, with the exception of Park
Board off-street facilities and free community parking facilities such
as the Kerrisdale, Fraser Street and East Hastings lots. Management of
commercial off-street parking associated with joint ventures, such as
Library Square, between the City and its business partners would be
subject to negotiations and a possible public tender process.
A summary of speakers' presentations follows:
Rae Ackerman, Director of Civic Theatres, (Report to Council on
file) requested that the Queen Elizabeth Theatre Parking Garage be
excluded from the operating agreement on the grounds that the VPC would
not be able to maintain the level of customer service currently offered
by parking attendants. His position did not relate to VPC versus Metro
Parking , the current operator, but was adopted from a theatre
management viewpoint based on cost and quality control, customer service
and staffing. Core garage staff, many of whom are long-time employees,
have developed and fostered a special relationship with regular theatre
patrons over the years. Attendants have been able to tailor service to
various clientele, including Patrons, Donors and handicapped persons,
and were accorded an 85% approval rating in recent public surveys.
Dan Sawchuk, Imperial Parking Limited, (brief on file) stated that
the proposed transfer of 12 city-owned parking lots to VPC could
negatively affect revenues accruing to the City. Operation of those
lots by Impark has resulted in approximately $400,000 annual revenue for
the City, of which Impark is paid approximately 15% or $75,000 per
annum. Impark is investor-friendly and its gross revenues have
continued to grow at the rate of a 25% increase over the last five
years. Mr. Sawchuk refuted several widely-held misconceptions
concerning Impark and city parking, and concluded by stating that the
City would incur significant additional costs by transferring management
of its privately managed parking properties in-house and citing as
examples the estimated $100,000 cost of replacing Impark
credit-card/cash machines and supervision and collection costs.
Gerald Tottman, Metro Parking Ltd. (brief on file) concurred that
removal of the city-owned properties from private operators will not
result in any net revenue gain or increased customer service. He cited
the cost of providing administrative services as one of the key factors
affecting returns to the owner. Metro's costs for administrative
services average $25 per stall per year - running to less than $10 per
stall per year in the existing contract with Woodwards Parkade and
$18.64 per stall per year at the Queen Elizabeth parking garage. Mr.
Tottman urged the City to give careful consideration to the proposed
transfer.
The following speakers supported recommendations of the
Administrative Report:
Neil Bradbury, Representative, CUPE 1004
Ken Cameron, Manager of Strategic Planning, GVRD
Bruce Campbell, Parking Corporation of Vancouver
Alex Carruth, Downtown Vancouver Association
Marguerite Ford, Downtown Vancouver Association
Stuart MacKay, Management Consultant, KPMG
David Walker, Downtown Vancouver Association
A precis of these speakers pivotal comments follows in point
format:
VPC has been an asset to the City for many years. Its formation
arose out of the requirement for additional parking in downtown
Vancouver in the late 40s and 50s.
It is a public/private sector partnership between the business
community and the City, which promises a high standard of
management that will maximize not only the amount of revenues
accruing to the City but also operating efficiencies.
The City is well represented on the VPC Board and will be able to
exercise greater financial control and influence policies.
VPC will facilitate the City working with developers and in
planning related policies, and would be of assistance should the
City decide to build on or develop any of its parking properties.
VPC will facilitate greater input from the Tourism/Visitors sector
into the parking business in the City.
Through the VPC, the City will be able to set rates and effect
changes in enforcement policies, making them more equitable and
user-friendly.
The VPC will not compete for private control or manage private
parking facilities, confining itself to City-owned property or
property in which the City has an interest - and only then with the
consent of the City. At the same time, it will discourage
domination of the market by any one company.
VPC will offer more advantages through economy of scale and provide
its employees with security and fair wages.
VPC has the potential to assist and facilitate programs in the
City s best interests and the benefits flowing back to the City
will benefit the whole community.
The Committee was generally supportive of recommendations in the
Administrative Report. It was suggested that parking is more than just
a commodity or provision for shopping and commuters. Effective parking
management must be used as a tool to achieve broader goals including
traffic control, environmental protection, setting standards and
limitations, and projecting future requirements. To achieve maximum
efficiency, a strong relationship must exist among Council, City staff,
VPC, the private sector and the community as a whole.
Some Committee members felt that, as VPC has a long history with
the City and offers great potential for the future, it would make more
sense to assign all city-owned lots to the one operator. In the case of
the Queen Elizabeth Theatre Parking Garage, it is easy to understand the
history and loyalty that exists between Civic Theatres and Metro Parking
staff. However, there is no doubt the same level of service can be
maintained by VPC.
Other members questioned whether including the Queen Elizabeth
Parking Garage in the proposed agreement would affect its efficiency,
and referred to the human element and relationships established over the
years with regular theatre clientele. It was suggested that the degree
of service by attendants and daily, hands-on control exercised by Civic
Theatres management with the present operator, in instances such as care
and attention to handicapped persons and cooperation with GM and BC
Place on certain nights during large events, would be difficult to
duplicate, and that there would not be the same rapport. With a view to
maintaining the present standard of service and encouraging healthy
competition, it was recommended that the Queen Elizabeth Theatre parking
garage be excluded from the agreement.
The following motion by Councillor Kennedy was put and carried.
Therefore, the Committee
RECOMMENDED
A. THAT Council approve the Mission, Goals and Operating
Principles for the Parking Corporation of Vancouver (the
"VPC") as enumerated in the Administrative Report dated May 5,
1997 and direct staff to incorporate these guidelines in the
new operating agreement.
B. THAT the Director of Legal Services be authorized to approve
the new operating agreement on behalf of the City if approved
by the VPC and the General Managers of Engineering and
Corporate Services.
- CARRIED
(Councillors Sullivan and Puil opposed)
The following motion by Councillor Price was put and carried.
Therefore, the Committee
RECOMMENDED
C. THAT the Civic Theatres Parking Garage at the Queen Elizabeth
be excluded from the operating agreement with the VPC.
- CARRIED
(Councillors Kennedy and Daniel Lee and the Mayor opposed)
The Committee adjourned at 6:30 p.m.
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