ADMINISTRATIVE REPORT

Date: May 5, 1998

Author/Local: Graham Johnsen(7540)

CC File No. 5807

TO:	Vancouver City Council
FROM:	Director of Legal Services and Manager of Real Estate Services
SUBJECT:	Vanier Park - Renewal of Right-of-Way in favour of BC Tel

RECOMMENDATION

A.THAT Council consent to a renewal of the Right-of-Way in favour of BC Tel for a further term of five (5) years commencing September 1, 1996, on the same terms and conditions as those governing the most recent relationship.

B.THAT the Director of Legal Services be given standing authority to execute on behalf of the City further renewals of this Right-of-Way in favour of BC Tel for successive five (5) year periods on the same general terms and conditions as those governing the instant renewal when she is:

(a)not aware of any subsisting breaches of the Right-of-Way; and

(b)of the opinion that the City’s security will not be impaired.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of A and B.

COUNCIL POLICY

The City agreed to renew this Right-of-Way in 1981, 1986 and 1991 for five (5) year terms. The last five (5) year term expired August 31, 1996.

The Director of Legal Services has the standing authority to consent to the assignment of commercial leases, certain long-term residential leases and certain Park Board leases. In addition, the Director of Legal Services has the standing authority to execute on behalf of the City consents to assignments and assumptions of contractual relations with the City.

PURPOSE

The purpose of this report is:

(a)to seek Council approval of the renewal of the Right-of-Way in favour of BC Tel for a further term of five (5) years on the same terms and conditions; and

(b)to request that Council authorize the Director of Legal Services to execute on behalf of the City future five (5) year renewals of the Right-of-Way in favour of BC Tel on the same terms and conditions, without further reporting to Council.

BACKGROUND

The City leases Vanier Park from the Federal Government. In 1975, the City subleased an existing building in Vanier Park to the Vancouver Academy of Music.

In order to provide telephone service to the Academy of Music, B.C. Telephone Company requested a Right-of-Way from the Federal Government. The Federal Government, with the City’s consent (resolution made November 23, 1976), granted a Right-of-Way to B.C. Telephone Company to install, operate and maintain undergound telephone equipment. The Right-of-Way, which was for a term of five (5) years, commencing September 1, 1976, contained the following provisions:

1.A covenant by the City not to interfere with or damage the telephone equipment;

2.An indemnity from B.C. Telephone Company in favour of the City of Vancouver; and

3.A right of renewal for further periods of five (5) years.

The Right-of-Way was renewed on each of September 1, 1981, September 1, 1986 and September 1, 1991, for a further five (5) year term, and it expired August 31, 1996.

On May 7, 1993, British Columbia Telephone Company changed its name to BC Tel.

DISCUSSION

By letter dated October 1, 1996, the Federal Government requested that the City consent to the renewal of the Right-of-Way in favour of BC Tel.

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(c) 1998 City of Vancouver