ADMINISTRATIVE REPORT

                                                Date:  July 11, 1995
                                                Dept.  File No.

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Private Property Sewer Separation of Queen Elizabeth
             Theatre

   RECOMMENDATION

        THAT the City proceed with the private property sewer separation of
        the Queen Elizabeth Theatre at a cost of $120,000; source of funds
        to be in advance from revenue surplus to be repaid from 1996
        supplementary capital budget.

   COUNCIL POLICY

   In the early 1970's, Council approved the policy of separating sanitary
   and storm sewers, starting in the West End and Downtown areas.  This
   policy was reaffirmed in 1981 as part of the Sewers Long Range Capital
   Plan, along with the adoption of the 1% life cycle sewer replacement
   policy.  Both of these policies were reaffirmed in the 1991 Policy
   Report on standards for the sewer collection system.

   In 1978, the Private Property Separation Program was established by
   Council in order to achieve the pollution control benefits of a
   separated sewer system.  This program provides a $1000 grant for each
   property and a free sewer connection.

   PURPOSE

   This report requests  Council approval to proceed  with private property
   sewer  separation of  the  Queen Elizabeth  Theatre  and to  identify  a
   funding  source.    This work  will  finalize  sewer  separation in  the
   Yaletown  drainage basin  eliminating  sewage overflows  from the  Drake
   Street Outfall into False Creek.

   BACKGROUND

   Over the  past two decades, the  main sewer system in  the downtown core
   has been almost  entirely replaced with  a separated sewer  system.   To
   gain the  benefits of a separated  system, the new pipes  must extend to
   all  plumbing fixtures on private property.  The City's private property
   separation  program  provides  incentives  to property  owners  to  help
   achieve this goal.   One of the focusses of the  City's program has been
   the Yaletown basin (see attached map).   To date, over 400 properties in
   this   basin  have  separated   their  plumbing,   either  as   part  of
   redevelopment,  or  through the  City's  program.   The  Queen Elizabeth
   Theatre is the last remaining parcel requiring separation.  

                                     - 2 -

   Once all parcels have completed private property sewer separation in the
   Yaletown  basin,  modifications  can be  made  to  the  sewer system  to
   eliminate  all sewage overflows from  the Drake Street  outfall to False
   Creek.  This  would improve  water quality  in False  Creek, reduce  the
   pumping  costs  to the  Nelson  Pump Station  and  eliminate unnecessary
   treatment  of clean groundwater.  The reduction of treatment costs alone
   represent a potential savings of $30,000 per year in GVS&DD levies.  

   DISCUSSION

   Due to the complexity of existing plumbing on the Queen  Elizabeth Site,
   project  costs are  estimated  to  be  $120,000.    This  work  involves
   rerouting the plumbing within existing buildings, a 
   6-meter deep connection at  Georgia and Cambie, and a  50-meter sanitary
   line extension.  Three funding options have been identified:

   A.   Sewer Separation Program
        Funds  from the Sewer separation  program could pay  for the entire
        separation.   Typically, a $1000  grant and a  connection on public
        property are provided to assist property owners. This budget option
        is  not considered  appropriate for  funding separation  on private
        property and  would significantly reduce the  funding available for
        private property separation in  other areas of the city.   The cost
        of this project would represent almost 50% of the annual budget for
        this program.  

   B.   Civic Theatres Capital Reserve
        Funds  from Civic Theatres Capital Reserve are used for upgrades to
        the  Queen  Elizabeth  Theatre (as  well  as  the  Orpheum and  the
        Vancouver  Playhouse).    This  funding has  been  fully  committed
        through to 1998.

   C.   1996 Supplementary Capital Budget
        Funds  could  be  supplied  in advance  of  the  1996 supplementary
        capital budget with interim financing from revenue surplus.

   In order to  proceed in  a timely  fashion, and  to maintain  incentives
   under the sewer separation program, we recommend Option C.

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