ADMINISTRATIVE REPORT

                                                         Date: June 1, 1995


   TO:       Vancouver City Council

   FROM:     General Manager, Engineering Services

   SUBJECT:  Agreement  between the  City of  Vancouver and  B.C. Telephone
             Company for Pay Telephones on City-Owned Streets and Property.


   RECOMMENDATION

        THAT the City  enter into  an agreement with  the British  Columbia
        Telephone  Company  for the  use of  `City  owned property  for pay
        phones,  on terms and conditions satisfactory  to the City Engineer
        and the Director  of Legal Services and that the  Director of Legal
        Services  be authorized to execute  such an agreement  on behalf of
        the City. 


   COUNCIL POLICY

   Renewal of  existing agreements with utility  companies requires Council
   approval.


   PURPOSE

   This  report seeks  Councils approval of  the updated  agreement between
   B.C. Telephone Company  and the  City of Vancouver  regarding B.C.  Tel.
   telephone booths on City-owned streets and property.


   DISCUSSION

   An agreement  regarding B.C. Telephone  booths located on  City property
   has been in effect since 1962.  The last agreement dated January 1, 1984
   expired on January  1, 1994.  The attached agreement  is essentially the
   same as the 1994 agreement with a few exceptions.

   "Charge A Call" which utilized a calling card to process calls no longer
   exists.  That system was superseded  by card reader phones which are not
   placed on  City streets and  property.   Paragraph "3" of  the agreement
   regarding verification  of  gross  revenues by  provision  of  an  audit
   certificate has  been added.   Schedule "A" has been  updated to reflect
   the current list of pay phones on City property.
   As in  the previous 1984 agreement, the 1994 agreement provides that the
   City receives 10%  of the  gross revenue collected  from each  telephone
   listed  in Schedule "A".   Staff comment that this  is a fair return for
   this use of City property and that the 1994 revenues were $31,807.27.  

   The term of the agreement is for  10 years, expiring on January 1, 2004,
   but  each party  may cancel  with 60  days notice.   All  telephones are
   located or  removed at the  discretion of the  City Engineer.   B.C. Tel
   indemnifies the  City  of all  responsibility  from claims,  costs,  and
   damages associated with the placement or removal of the pay phones.


   CONCLUSION

   The agreement  assures  protection of  City  interests and  allows  B.C.

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   Telephone Company to provide additional service to its customers.  It is
   therefore recommended  that the  City continue  its agreement with  B.C.
   Telephone with respect to pay phones located on City property.




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