ADMINISTRATIVE REPORT
Date: June 26, 1997
Dept. File No.
CC File No. 4251
TO: Vancouver City Council
FROM: Director of Civic Theatres and Manager of Facilities
Development, in consultation with the Director of Finance
SUBJECT: Civic Theatres Capital Plan - Phase II Design
RECOMMENDATION
THAT Council approve allocation of $600,000 for Schematic Design
and Design Development of the next phase of major capital upgrades
to the Queen Elizabeth Theatre, Vancouver Playhouse and Orpheum;
source of funds to be a loan from the Property Endowment Fund (PEF)
to be repaid from the income to the Civic Theatres Capital Reserve,
terms to be acceptable to the Director of Finance and Director of
Civic Theatres.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of the foregoing.
COUNCIL POLICY
Civic Theatres capital reserve funds are to be used for capital upgrades
of the Queen Elizabeth Theatre, Vancouver Playhouse and Orpheum.
PURPOSE
Civic Theatres Department requests approval of the allocation of
$600,000 for Schematic Design and Design Development of a group of
upgrade projects (Phase II) for the three theatres, including the
funding formula proposed by the Director of Finance.
BACKGROUND
From 1992 to 1994, Civic Theatres conducted a scope analysis and a
feasibility study of renovations and upgrades needed to preserve,
repair, improve and revitalize the three civic theatres. Many
presenters, including all of the resident performing arts companies,
were consulted extensively throughout the study. The resulting long
range capital plan was presented to Council in a workshop in September,
1994.
This capital plan is structured on a modular concept. Depending on
funding that becomes available from time to time, groups of projects can
be assembled for implementation in a progressive, coordinated manner.
When each project or block of projects is completed, the theatres are in
a fully operational state and ready for future work to be undertaken.
The need to close the theatres during reconstruction is minimized.
The first phase of capital projects based on the plan was implemented
from June 1995 to November 1996. The approved budget was $2.6 million;
on completion the final cost was just over $2 million. The projects
were funded from the civic theatres capital reserve which accumulates
revenues from the QET Parkade and from a ticket surcharge on all tickets
above $8.00 in value. Financing was arranged, with the assistance of
the Director of Finance, as a line of credit drawn on the PEF. Because
capital reserve income continued through the construction period, the
amount actually borrowed to finance this Phase was considerably less
than $2 million. Final pay down is expected to be made late this fall,
approximately 9 months earlier than originally estimated.
Projects completed were:
1. Orpheum; auditorium ceiling - acoustic upgrade.
2. Stage sound systems upgrade - Orpheum and QET.
3. QET; stage lighting system - code and capacity upgrade.
4. QET; Parkade and Lobby elevators.
The only operating costs resulting from these projects are the annual
license and maintenance costs for the new elevators at the QET.
DISCUSSION
In preparing for a second phase of upgrades, Civic Theatres met with a
group of users including resident performing arts companies and
commercial presenters. The group concurred that it was important to
focus on projects that will "improve the experience of the audience",
recognizing a new competitiveness in the environment.
On May 29, 1997, Council endorsed a number of City-initiated projects
for submission to the Enhanced Canada/B.C. Infrastructure Works Program
in the category of "soft" infrastructure. Included were two blocks of
projects at Civic Theatres, as follows;
Option #1; $5,125,000
1. QET auditorium reconfiguration - Phase 1.
2. Playhouse lobby expansion.
3. Salon/Meeting room addition.
4. Technical equipment replacements and upgrades.
Should this Option be unacceptable for any reason, a second Option has
been prepared.
Option #2; $3,500,000
1. Items #2, 3 & 4 from Option #1, plus
2. Orpheum and QET concessions stations code and equipment
upgrades.
3. Orpheum Smithe Street entrance re-design for traffic flow,
audience comfort, flexibility for loading in, improved
lighting, signage and safety.
4. QET canopy extension, lighting and signage upgrades and lobby
air conditioning.
5. Renovations to Parkade stairwells for patron security.
6. QET, Playhouse and Orpheum security systems.
Given the time lines imposed by the Infrastructure Program and the
delays that can be anticipated in awarding of grants, it is essential to
start the final design process now. Civic Theatres requests approval to
allocate $600,000 to contract the design and consulting team to proceed
with schematic design and design development for the projects listed.
These funds are part of the estimated total costs of the options as
noted above; they are not additional to the project costs estimated.
The design and consulting team for Civic Theatres capital upgrades
includes:
Architect Proscenium Architecture and Interiors
Theatre Design &
Architectural Lighting Doug Welch Design
Acoustics Aercoustics Engineering
Heritage Commonwealth Historic Resource Mngmnt.
Cost James Bush & Assoc.
Structural Read Jones Christoffersen
Electrical Schenke/Bawol Engineering
Mechanical Keen Engineering
Sound Systems Engineering Harmonics
Signage Gallop/Varley
Project Management is provided by Facilities Development.
FINANCIAL IMPLICATIONS
The cost of $600,000 can be funded from unexpended balances and
contingencies in previously approved projects that have been completed,
augmented by a line of credit from the PEF against continuing Civic
Theatres capital reserve income. The maximum loan would not exceed
$480,000. Based on past average revenues to the capital reserve, this
loan would be paid down by approximately fall 1998. In reality, because
money is only drawn when payments are made, the pay down should be
earlier. The loan is subject to interest in accordance with normal City
policy, based on the City s average rate of earnings for short-term
investments.
There will be minor increases in energy costs from air conditioning the
QET lobby and from some increases in exterior and public area lighting.
Concessions stations upgrades will result in some labour savings.
SOCIAL IMPLICATIONS
All of the projects in both options support the operations and health of
all of Civic Theatres users by improving the level of service to their
audiences - especially important in the more competitive environment now
prevailing. Some address code, security and safety issues.
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