ADMINISTRATIVE REPORT

Date:March 11, 1998

Author/Local: G. Spencer/665-3439

CC File No. 3601

TO:	Vancouver City Council
FROM:	Chief Constable
SUBJECT:	Revision to Project 222/Vancouver Jail Agreement

RECOMMENDATION

A.THAT Council authorize the Director of Legal Services and Chief Constable to execute and deliver to The Ministry of Attorney General an amendment to the August 1, 1997 Project 222/Vancouver Jail Agreement, on terms and conditions satisfactory to the Director of Legal Services and the Chief Constable, to:

(i)change the anticipated date for moving the jail from April 1, 1998 to April 1, 1999;

(ii)replace the City’s obligation to provide 12 police custodial guards with an obligation to provide 4 police sergeants;

(iii)(to offset the savings accruing to the City under (ii) above) replace the City’s obligation to make annual payments of $825,000 with an obligation to make annual payments of $1,391,000;

(iv)(to reflect the new anticipated date for moving the jail) make the annual payments referred to under (iii) above fixed until 2005 instead of 2004; and

B.THAT the resolution of Council dated July 30, 1996 "THAT interim financing for this arrangement be provided from the Capital Financing Fund (Solid Waste Capital Reserve) with a maximum loan of $1,522,695 in 1996 dollars to be repaid beginning in 1999 out of annual savings of$727,729 in operating costs" be rescinded and replaced with the following:

"THAT interim financing for this arrangement be provided from the Capital Financing Fund (Solid Waste Capital Reserve) with a maximum loan of $2,100,000 in 1998 dollars to be repaid beginning in 1999 out of annual savings of $725,000 in operating costs"

C.THAT no legal rights or obligations will be created by the adoption of these Recommendations and none will arise, except upon the execution and delivery of all necessary legal documents by the parties.

POLICY

The Procedure By-law requires that any Council resolution passed in the current term be rescinded by a vote of not less than two-thirds of the Council members present. However, because the resolution referenced in Recommendation B was passed in a previous term, only majority approval is required.

PURPOSE

The purpose of this report is to gain Council approval for amendments to the agreement signed by the Director of Legal Services and the Chief Constable on behalf of Council and the Vancouver Police Board on August 1, 1997, with The Ministry of Attorney General dealing with the transfer of the City’s jail function to B.C. Corrections.

BACKGROUND

On July 30, 1996, Council approved a plan to have the Vancouver Police Jail function transferred to the Provincial Corrections Branch and moved to Provincial facilities at 222 Main Street (Project 222). At that time council approved the following recommendations regarding the operation of the facility and the financing of the project:

A.THAT Council approve the move of the City’s jail as of April 1, 1998 to a new facility at 222 Main Street to be operated in partnership with the B.C. Corrections Branch (Project 222) ;

B.THAT until it is determined whether the new jail can be operated exclusively by Corrections staff, the City will provide 12 police custodial guards to fill three full time police positions at the booking desk at an annual cost of $855,324 ;

C.THAT the financial arrangement for Project 222 be as follows:

(i)a contribution of $1,665,847 as the City’s share of the start-up costs for the facility and technology upgrades to the jail in the Provincial Court building;

(ii)an annual payment of $825,000 to the province toward the on-going operating costs of the jail to be fixed until 2004 (with a 1% inflator applied) ; and

(iii)$750,000 for technology upgrades to the Vancouver Police Department’s information Systems to support the automated jail facility;

D.THAT interim financing for this arrangement be provided from the Capital Financing Fund (Solid Waste Capital Reserve) with a maximum loan of $1,522,695 in 1996 dollars to be repaid beginning in 1999 out of annual savings of $727,729 in operating costs;

E.THAT the Director of Legal Services be authorized enter into an agreement with the Ministry of the Attorney General confirming the financial and operating arrangements set out in this report; and

F.THAT no legal rights or obligations are created hereby and none shall arise, except upon execution of all necessary legal documents by the parties.

Pursuant to Council’s July 30, 1996 resolutions, the City as represented by the Vancouver Police Department and the Province as represented by The Ministry of Attorney General, settled the form of and executed and delivered a legal agreement incorporating Council’s resolutions (the "Project 222 Agreement").

Some of the terms of Project 222 Agreement related to the construction timing and expected opening date, while others dealt with the financial and operating agreements. Subsequent changes in the construction schedule and the operating agreement have necessitated some amendments to the Project 222 Agreement.

DISCUSSION

After some delays, Project 222 is now well underway with an opening day expected to be March 1, 1999. Construction is in progress and the operating model is being finalized. Two changes to the Project 222 Agreement are being proposed; one due to the delay in the start of construction and the other to a change in the operating model.

The first proposed change relates to the City’s obligation to make two payments to the Province totalling $1,665,847. The first was for $599,633, due March 1, 1997, and the second, for $1,066,214, was to be made March 1, 1998. Under the Project 222 Agreement, neither payment was due and payable until construction was actually underway. Therefore the March 1, 1997 payment has been held back. The variation in the schedule has impacted the Province’s budget calculation and the Province is now asking to vary the payment schedule slightly (the total amount of $1,665,847 remains unchanged). The request is for an initial payment of $709,914 on March 1,1998; with the remainder, $955,933 due March 1,1999.

The second proposed change relates to the City’s obligation to provide 12 police custodial guards. After much deliberation, the Project 222 Management Committee concluded that it would be too difficult to have Vancouver Police Department members working alongside Correctional Officers doing essentially the same work. As a result it was concluded that it would be beneficial to both parties if the Vancouver Jail were operated by BC Corrections, with one Vancouver Police position on site at all times as an "Officer in Charge" (OIC). It is a legislative requirement that an OIC be on site at all times in order to retain responsibility for pre-charge prisoners and for "OIC releases".

This proposed change would also be very beneficial to the Vancouver Police Department as it would eliminate the requirement for direct involvement in the daily operation of the jail. The OIC position would, in addition to having responsibility for pre-charge prisoners, be a link between front line police officers and Crown Counsel, reducing the time taken to submit prosecution reports, thereby allowing the officers to spend their time more productively. The change in the operating model requires the City to provide an annual operating contribution to the new jail. This contribution has been fixed at $1,391,900, equivalent to the cost of providing 12 custodial guards. This contribution will be subject to an annual 1% inflation adjustment and will extend to March 1, 2005, after which the agreement will be renegotiated.

FINANCIAL IMPLICATIONS

Although the timing of the project and the operating model have changed, the financial obligations of the City remain essentially the same. Prior to the opening of the new jail, the City will make a capital contribution to the Province of $1,665,847 in two installments payable in March 1998 and March 1999. In addition, the Police Department will be required to update its information systems to the standard to be utilized in the new jail at a cost of $750,000. Among other things, this upgrade will allow the police to submit Crown Counsel reports electronically as well as having automated photographs and fingerprints.

Council has approved interim financing for these costs from the Capital Financing Fund (Solid Waste Capital Reserve).

Once the new Vancouver Jail is opened in March 1999, the City will close its jail, saving approximately $2,550,000 annually. Under the project financing plan, these savings will be utilized to:

·320·provide the Officer-in-Charge at the new facility ($445,000 annually);·320

·320·pay ongoing operating costs to the Province ($1,391,300 annually subject to a 1% annual inflator);·320

·320·repay the interim financing.·320

The operating savings will begin to accrue in April 1999 and are expected to be approximately $725,000 annually. The payment to Province for the first year of operation will be due March 1, 2000. Based on the cashflow developed when the financing arrangement was approved, the loan from the CFF, which will not exceed $2,100,000, will be repaid in 2003. Once the loan is repaid, the ongoing savings will represent a reduction in the City’s Operating Budget.

CONCLUSION

The recommended amendments do not substantially alter the agreement made between the City and the Province. They would, however, benefit both parties and enhance the operation of the Vancouver Jail and the working relationship between BC Corrections and the Vancouver Police.

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(c) 1998 City of Vancouver