CITY OF VANCOUVER REGULAR COUNCIL MEETING A Regular Meeting of the Council of the City of Vancouver was held on Thursday, January 11, 1996, at 11:15 a.m., in Committee Room No. 1, Third Floor, City Hall, following the Standing Committee on City Services and Budgets meeting, to consider the recommendations of the Committee. PRESENT: Deputy Mayor Clarke Councillors Bellamy, Chiavario, Hemer, Ip, Kwan, Price and Sullivan ABSENT: Mayor Owen (Civic Business) Councillor Kennedy(Leave of Absence) Councillor Puil (Leave of Absence) CITY MANAGER'S OFFICE: Judy Rogers, Assistant City Manager CLERK TO THE COUNCIL: Tarja Tuominen COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Hemer, THAT this Council resolve itself into Committee of the Whole, Deputy Mayor Clarke in the chair. - CARRIED UNANIMOUSLY COMMITTEE REPORTS Report of the Standing Committee on City Services and Budgets January 11, 1996 Council considered the recommendations of the Committee, as contained in the following clauses of the attached report: Cl. 1: Addition of the University Endowment Lands (UEL) and the University of British Columbia (UBC) to the Alarm Monitoring Coverage Area of Vancouver Fire & Rescue Services' (VF&RS) Central Station Cl. 2: Relocation of Asphalt Plant and Aggregate Handling Operations Addition of the University Endowment Lands (UEL) and the University of British Columbia (UBC) to the Alarm Monitoring Coverage Area of Vancouver Fire & Rescue Services' (VF&RS) Central Station Clause 1 MOVED by Cllr. Bellamy, THAT the recommendations of the Committee, as contained in Clause 1 of this report, be approved. - CARRIED UNANIMOUSLY Relocation of Asphalt Plant and Aggregate Handling Operations Clause 2 MOVED by Cllr. Clarke, THAT Council approve, in principle, the relocation of the Aggregate Handling and Asphalt Plant operation from the Cambie Yard to a new Yard on the Fraser River. - LOST (Councillors Bellamy, Chiavario, Hemer, Ip and Kwan opposed) MOVED by Cllr. Chiavario, THAT the recommendations of the Committee, as contained in Clause 2 of this report and quoted below, be approved. A. THAT Council approve the relocation of the Aggregate Handling and Asphalt Plant operation from the Cambie Yard to a new Yard on the Fraser River, subject to a report back as described in the following recommen-dations. B. THAT a new Works Yard design include a recycling facility for aggregate, asphalt, and concrete. C. THAT to cover the land cost of a new Fraser River site, Council approve the disposal of the Sterling Shipyard and Commissioner Yard. A shortfall, if any, would be funded from the aggregate/asphalt operations through a loan from the Solid Waste Fund. D. THAT a preliminary project budget, estimated at $13.3 million, be established for the design, construction and commissioning of the new Works Yard and the updated project budget and financing plan will be reported back to Council for approval after the preliminary design is completed. E. THAT Council approve $150,000 from the Project Budget and authorize the General Manager of Engineering Services to call for proposals and select consultants to carry out a preliminary design for the new Works Yard. - CARRIED (Councillor Kwan opposed to A) RISE FROM COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, THAT the Committee of the Whole rise and report. - CARRIED UNANIMOUSLY ADOPT REPORT OF THE COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Kwan, THAT the report of the Committee of the Whole be adopted. - CARRIED UNANIMOUSLY The Council adjourned at approximately 11:20 a.m. * * * * * REPORT TO COUNCIL STANDING COMMITTEE OF COUNCIL ON CITY SERVICES AND BUDGETS JANUARY 11, 1996 A Regular Meeting of the Standing Committee of Council on City Services and Budgets was held on Thursday, January 11, 1996, at 9:30 a.m., in Committee Room No. 1, Third Floor, City Hall. PRESENT: Councillor Bellamy, Chair Councillor Chiavario Councillor Clarke Councillor Hemer Councillor Ip Councillor Kwan Councillor Price Councillor Sullivan (Clause 2) ABSENT: Mayor Owen (Civic Business) Councillor Kennedy(Leave of Absence) Councillor Puil (Leave of Absence) CITY MANAGER'S OFFICE: Judy Rogers, Assistant City Manager CLERK: Tarja Tuominen Recorded Vote Unless otherwise indicated, votes of the Committee on all items are unanimous. Adoption of Minutes The Minutes of the Standing Committee on City Services & Budgets meeting of December 14, 1995, were adopted. RECOMMENDATION File: 3651-5 1. Addition of the University Endowment Lands (UEL) and the University of British Columbia (UBC) to the Alarm Monitoring Coverage Area of Vancouver Fire & Rescue Services' (VF&RS) Central Station The Committee had before it an Administrative Report dated December 1, 1995 (on file), in which the Assistant Chief (Communications), Vancouver Fire & Rescue Services, sought approval for inclusion of the University Endowment Lands (UEL) and the University of British Columbia (UBC) multiplex alarm system customers, Vancouver School Board properties on the UEL, and new customers in the UEL and UBC areas who meet the criteria (attached as Appendix 1 to the report) within the mandate of the Vancouver Fire & Rescue Services Central Monitoring Station. Mr. Glen Maddess, General Manager, Fire & Rescue Services, was present to answer questions. The following motions by Councillor Hemer were put and CARRIED. The Committee, therefore, RECOMMENDED A. THAT Council approve the inclusion of the University Endowment Lands (UEL) and University of British Columbia (UBC) in the coverage area of Vancouver Fire & Rescue Services' (VF&RS) central alarm monitoring station; allowing VF&RS to provide alarm monitoring services to the customers in these areas that meet the criteria defined in Appendix 1 (Revised) of the Administrative Report dated December 1, 1995. B. THAT Council authorize the Fire Chief to sign contracts for monitoring services with customers on the UEL and UBC after the form of the contract has been approved by the Director of Legal Services. 2. Relocation of Asphalt Plant and File: 5125 Aggregate Handling Operations The Committee had before it an Administrative Report dated November 30, 1995 (on file), in which the General Manager of Engineering Services reviewed a proposal for relocating City aggregate and asphalt plant operations and recommended a new aggregate and asphalt facility, with expanded recycling capabilities, be developed on a site on the Fraser River in order to realize short and long-term financial, technical and operational gains for the City. Mr. Dave Rudberg, General Manager, Engineering Services, noted the Committee received this date a revised Administrative Report, dated November 30, 1995, amending some of the calculations in the previously distributed report. With the aid of overhead slides, Mr. Rudberg presented an economic analysis supporting the proposal for a City-run aggregate handling and asphalt plant operation and construction of a material recycling facility. In 1995, the current asphalt plant was used 270 days of the year. The facility will not have a high labour component; only 3 persons are required. Some benefits of a City operation are: no delays at the plant; good access; flexibility with new products, scheduling and new procedures; and quality assurance. A recycling operation could provide annual savings of up to $1.1 million, and will mean the City will not have to buy new material, truck material or pay landfill charges. One other issue of concern is the consolidation of a number of asphalt plants in the Lower Mainland. There are a limited number of plants located in the Lower Mainland. A number of plants are being reduced, which reduces competition in the industry. Mr. Rudberg believes there may be a role for partnership with the private sector in financing the facility or marketing spare capacity. These issues will be explored further and reported back in March or April. Mr. Rudberg; Mr. Don Brynildsen, Assistant City Engineer, Streets Division; Mr. Ken Kaminski, Superintendent, Streets Operations; and Mr. Rowan Birch, Materials Engineer; responded to a number of questions, including environmental concerns, production of asphalt, and cost estimates. Mr. John Schubert, Vice-President, Columbia Bitulithic Ltd. (brief on file), questioned some of the cost and savings estimates given in the Administrative Report, and the feasibility of establishing a City-operated recycling facility. Mr. Schubert also presented two partnership proposals: joint ownership of an asphalt plant facility by Columbia Bitulithic Ltd. and the City of Vancouver, on City land; and sole owner-ship of an asphalt plant facility by Columbia Bitulithic Ltd. with shared production costs with the City. Columbia Bitulithic is also prepared to go into a partner-ship proposal with the City on the recycling of concrete and asphalt rubble. All of the proposals would be on a long-term basis. Mr. Ed Claggett, General Manager, Columbia Bitulithic Ltd. (brief filed), supported the partnership proposals put forward by Mr. Schubert. Columbia can assure a quality paving aggre-gate from the Pitt River Quarry. Columbia also already has a recycling facility, which the City could use for only a processing fee based on 200,000 tonnes of recyclable materials. Columbia would provide processed products to the City, thereby saving the City's taxpayers the cost of building a facility. Mr. Rudberg responded to the presentations, noting that the City would have to pay taxes when purchasing asphalt and aggregate; there were concerns about long-term stability issues with one company having the full market for the area; and the City will continue to use Columbia on contract jobs. Mr. Rudberg believed it was fundamental for the City to retain ownership of the asphalt operation. The City will be looking at partnership arrangements with excess capacities. Mr. Ken Kaminski noted City trucks have been turned away from Columbia's recycling facility when it has run out of room. Mr. Fred Wittig, representing the Hot Mix Producers Association of B.C. (brief on file), advised that with new developments in asphalt recycling and development of high quality asphalt cement or polymers, future requirements for asphalt will continue to decline. The City would see considerable savings by contracting with private companies. In addition, the City will see an annual loss in property tax revenues by using the Main Street property for an asphalt plant. Mr. Rudberg noted he does not anticipate a drop in requirements for asphalt. New construction will fall off, but the growing need is for repaving projects during repairs to underground utilities and rehabilitation of existing asphalt surfaces which are beginning to deteriorate. Mr. Ken Davidson, President, CUPE 1004 (brief on file), supported the recommendations in the report, and noted Mr. Rudberg has answered all the questions. The Committee noted any finalization of the budget for the proposed facility will come back for decision. Members also noted the City's taxpayers have done well with the existing plant, and in the long term, relocation of the plant is the way to go. The following motion by Councillor Clarke was put and LOST. THAT Council approve, in principle, the relocation of the Aggregate Handling and Asphalt Plant operation from the Cambie Yard to a new Yard on the Fraser River. (Councillors Bellamy, Chiavario, Hemer, Ip and Kwan opposed) The following motion by Councillor Clarke was put and CARRIED. The Committee, therefore, RECOMMENDED A. THAT Council approve the relocation of the Aggregate Handling and Asphalt Plant operation from the Cambie Yard to a new Yard on the Fraser River, subject to a report back as described in the following recommendations. (Councillor Kwan opposed) The following motions by Councillor Chiavario were put and CARRIED. The Committee, therefore, RECOMMENDED B. THAT a new Works Yard design include a recycling facility for aggregate, asphalt, and concrete. C. THAT to cover the land cost of a new Fraser River site, Council approve the disposal of the Sterling Shipyard and Commissioner Yard. A shortfall, if any, would be funded from the aggregate/asphalt operations through a loan from the Solid Waste Fund. D. THAT a preliminary project budget, estimated at $13.3 million, be established for the design, construction and commissioning of the new Works Yard and the updated project budget and financing plan will be reported back to Council for approval after the preliminary design is completed. E. THAT Council approve $150,000 from the Project Budget and authorize the General Manager of Engineering Services to call for proposals and select consultants to carry out a preliminary design for the new Works Yard. The meeting adjourned at approximately 11:15 a.m. * * * * *