CITY OF VANCOUVER REGULAR COUNCIL MEETING A Regular Meeting of the Council of the City of Vancouver was held on Thursday, March 28, 1996, at 11:20 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: Mayor Owen Councillors Bellamy, Hemer, Kennedy, Kwan, Price, Puil and Sullivan ABSENT: Councillor Chiavario (Leave of Absence) Councillor Clarke (Leave of Absence) Councillor Ip (Leave of Absence) CITY MANAGER'S OFFICE: Ken Dobell, City Manager CLERK TO THE COUNCIL: Tarja Tuominen COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Puil, THAT this Council resolve itself into Committee of the Whole, Mayor Owen in the chair. - CARRIED UNANIMOUSLY COMMITTEE REPORTS Report of the Standing Committee on City Services and Budgets March 28, 1996 Council considered the recommendations of the Committee, as contained in the following clauses of the attached report: Cl. 1: Tourism Vancouver - 1996 Business Plan Cl. 2: Management and Allocation Plan - Bonused Artist Live/Work Studio at 272 East 4th Avenue Cl. 3: Land Request - Dance Foundation (Vancouver Dance Centre) Cl. 4: Changes to Administrative Authorities Cl. 5: Acquisition of a Document Imaging/ Management System Tourism Vancouver - 1996 Business Plan Clause 1 MOVED by Cllr. Puil, THAT the recommendations of the Committee, as contained in Clause 1 of this report, be approved. - CARRIED (Councillor Kwan opposed to Recommendation B) Management and Allocation Plan - Bonused Artist Live/Work Studio at 272 East 4th Avenue Clause 2 MOVED by Cllr. Puil, THAT the recommendations of the Committee, as contained in Clause 2 of this report, be approved. - CARRIED UNANIMOUSLY AND BY THE REQUIRED MAJORITY Clauses 3 and 5 MOVED by Cllr. Puil, THAT the recommendations of the Committee, as contained in Clauses 3 and 5 of this report, be approved. - CARRIED UNANIMOUSLY Changes to Administrative Authorities Clause 4 MOVED by Cllr. Puil, THAT the recommendations of the Committee, as contained in Clause 4 of this report, be approved. - CARRIED (Councillor Kwan opposed to Recommendations A, B, C, F, G, I and J; Councillor Puil opposed to C, F and G; and Councillor Price opposed to G) 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. Puil, SECONDED by Cllr. Bellamy, THAT the report of the Committee of the Whole be adopted. - CARRIED UNANIMOUSLY The Council adjourned at approximately 11:25 a.m. * * * * * REPORT TO COUNCIL STANDING COMMITTEE OF COUNCIL ON CITY SERVICES AND BUDGETS MARCH 28, 1996 A Regular Meeting of the Standing Committee of Council on City Services and Budgets was held on Thursday, March 28, 1996, at 9:30 a.m., in Committee Room No. 1, Third Floor, City Hall. PRESENT: Councillor Puil, Chair Mayor Owen Councillor Bellamy Councillor Hemer Councillor Kennedy Councillor Kwan Councillor Price Councillor Sullivan ABSENT: Councillor Chiavario (Leave of Absence) Councillor Clarke (Leave of Absence) Councillor Ip (Leave of Absence) CITY MANAGER'S OFFICE: Ken Dobell, City Manager CLERK: Tarja Tuominen Adoption of Minutes The Minutes of the Standing Committee on City Services & Budgets meeting of February 29, 1996, were adopted. RECOMMENDATION 1. Tourism Vancouver - 1996 Business Plan File: 6008 The Committee had before it an Administrative Report dated March 20, 1996 (on file), in which the General Manager of Corporate Services recommended approval of the portion of the 1996 Business Plan submitted by Tourism Vancouver dealing with the allocation of the 2% Hotel Tax, a contract for publication and distribution of tourism- related material for 1996, and a cost-sharing arrangement between the City and Tourism Vancouver for the 1997 Asia Pacific Economic Cooperation (APEC) summit. Mr. Ken Stoke, General Manager of Corporate Services, reviewed the report and noted it is intended the cost-sharing arrangement with Tourism Vancouver for the APEC summit will apply to the total of the hosting costs and not just to security and related services as proposed by Tourism Vancouver. The 50:50 cost-sharing arrangement will have a maximum ceiling of $350,000. Mr. Mark Andrew and Mr. Rick Antonson, Tourism Vancouver, were present to answer questions. Mr. Antonson advised Tourism Vancouver understood the proposed cost-sharing arrangement will apply to total costs of the APEC summit. The following motion by Councillor Bellamy was put and carried. The Committee, therefore, RECOMMENDED A. THAT the portion of Tourism Vancouver's 1996 Business Plan funded from the 2% Hotel Tax in the amount of $6,809,629 ($6,360,000 projected and $449,629 carried forward) be approved. B. THAT a contract with Tourism Vancouver for publication and distribution of tourism-related material for 1996, in an amount not to exceed $600,000 before GST, be approved, subject to an agreement satisfactory to the Director of Legal Services. C. THAT the cost-sharing arrangement described in the Administrative Report dated March 20, 1996, between the City and Tourism Vancouver in connection with the Asia Pacific Economic Co-operation summit to be held in Vancouver in 1997, be approved, on the understanding that this arrangement and the $350,000 cost contribution ceiling will apply to the total of the hosting costs incurred by the City for the summit and not to a more restricted subset of those costs. - CARRIED (Councillor Kwan opposed to B) 2. Management and Allocation Plan - File: 4663-3 Bonused Artist Live/Work Studio at 272 East 4th Avenue The Committee had before it a Policy Report dated March 12, 1996 (on file), in which the Director of the Office of Cultural Affairs and the Manager of the Housing Centre, in consultation with the Director of Legal Services, the Comptroller of Budgets & Research and the Manager of Real Estate, recommended approval of an allocation and management plan for a bonused artist live/work studio at #303, 272 East 4th Avenue, and sought direction to either lease the unit to the Contemporary Art Gallery at a nominal rent of $1 for occupancy by a low-income artist, or lease the unit directly to a low-income artist at a monthly rent of $325. Ms. Sue Harvey, Cultural Planner, was present to answer questions. The following motions by the Mayor was put and carried. The Committee, therefore, RECOMMENDED A. THAT an allocation and management plan as detailed in the Policy Report dated March 12, 1996, be approved for the bonused artist live/ work studio #303, 272 East 4th Avenue. B. THAT a three-year lease of the bonused artist live/work studio to the Contemporary Art Gallery for occupancy by a low-income artist, be approved at a nominal rent ($1) and no taxes, subject to the terms and conditions being to the satisfaction of the Director of Legal Services, in consultation with the Director of the Office of Cultural Affairs, the Manager of Housing Centre and the Manager of Real Estate Services. - CARRIED UNANIMOUSLY 3. Land Request - File: 5118 Dance Foundation (Vancouver Dance Centre) The Committee had before it an Administrative Report dated March 21, 1996 (on file), in which the Director of the Office of Cultural Affairs, in consultation with the Directors of Land Use & Development and Central Area Planning, Manager of Real Estate, Director of Community Services, and the General Managers of Engineering Services and Corporate Services, sought approval to redirect Council's 1993 site commitment to the Vancouver Dance Centre Society to an alternative City-owned site on the south side of Pacific Boulevard between Granville and Seymour Streets. The Director also submitted two options to reimburse the Property Endowment Fund for the site, at the time the Dance Foundation has met the terms and conditions of the lease and the Council of the day considers a lease agreement. Mr. Burke Taylor, Director of the Office of Cultural Affairs, introduced the report, and with Mr. Hugh Creighton, Director of Finance, and Mr. Bruce Maitland, Manager of Real Estate, answered questions on the payment options proposed in the report. The following spoke in support of reserving the Pacific Boulevard site for a dance centre: Paul McCullough, Dance Foundation Nicola Norberg Follows, Dance Foundation David Y.H. Lui, Dance Centre The foregoing supported the site on the following grounds: - Currently, there is an acute need for rehearsal space for the 22 professional dance companies and 30 independent dance choreographers. - The Foundation has an impressive Board of Directors and a very committed core of fund-raisers. Both construc-tion and endowment plans will be implemented, and interim financing secured, as soon as a site is chosen. - The Dance Centre will be an important component for dance in Vancouver, and will be truly a community effort. In response to questions, Mr. Maitland agreed it will be difficult to find another site for the City impound lot which is easily accessible to the downtown core and to transit. The following motions by the Mayor were put and carried. The Committee, therefore, RECOMMENDED A. THAT a City-owned site at the corner of Pacific and Granville Streets be withheld from disposal or alternate use for a period of up to three years, and subject to the Dance Foundation (Vancouver Dance Centre) fulfilling the conditions outlined in the Administrative Report dated March 21, 1996, to the satisfaction of the City Manager, Council approve in principle a lease of the subject site to the Dance Foundation and recommend to the Council of the day that this lease be provided for a term of 60 years at a nominal rate ($1). B. THAT staff be directed to report back outlining the terms of the lease as soon as the conditions outlined in the Administrative Report dated March 21, 1996, have been met to the satisfaction of the City Manager. C. THAT staff be directed to reserve $900,000 from the 1994-1996 Capital Plan for a 60-year prepaid lease to the Property Endowment Fund for the subject site as outlined in the Administrative Report dated March 21, 1996; with the payment to occur at the time the lease is approved by Council. - CARRIED UNANIMOUSLY 4. Changes to Administrative Authorities File: 1000 The Committee had before it a Policy Report dated January 31, 1996 (on file), in which the Corporate Management Team recommended approval of a number of changes to Council policy dealing with administrative authorities that affect the acquisition of goods and services for City operations and budget control. Mr. Ken Stoke, General Manager of Corporate Services, presented a background and summary of the report. In response to a question on possible Union concerns, Mr. Ken Dobell, City Manager, stated it was his understanding the Union felt the more decisions Council made on administrative issues, the more opportunities there were for it to express any concerns. Mr. Dobell believed the proposed recommendations were sensible ones, but if Council was concerned, it was not a problem to continue to report to Council. During discussion, some of the Committee members expressed concern with several of the recommendations, noting that, as the elected body, it was Council's responsibility to be aware of business decisions on City operations. Other members felt for better government, it was important to streamline bureau-cracy to make the City operation more effective and efficient. It was suggested staff provide quarterly reports, with some analysis of trends, on what business decisions have been taken. The following motions by Councillor Sullivan were put and carried. The Committee, therefore, RECOMMENDED A. THAT the transfer limits be increased on normal and non-recurring operating budget accounts for Department Heads to $50,000 and $10,000 respectively, and that Department Heads be authorized to transfer up to $50,000 to/from approved capital accounts, including the transfer authority to create new capital accounts up to that amount, all as proposed in the Policy Report dated January 31, 1996; FURTHER THAT a change in the close-out criteria for capital projects be approved, authorizing Department Heads to close out capital projects whose expenditures do not exceed 15% and $50,000 of the approved budgets. Capital projects that do not meet this requirement will be reported to Council for information and approval; and FURTHER THAT the Park and Library Boards be requested to adopt these revised authorities as well, subject to the modifications noted in the foregoing Policy Report. B. THAT a two-tier bid structure reflecting a bid limit of up to $100,000 for price quotations and a bid limit of over $100,000 for tenders be approved, including the special purchase condi-tions and the advertising change around public notice of City tenders, all as proposed in the Policy Report dated January 31, 1996; and FURTHER THAT the Park and Library Boards be requested to adopt the revised bid limits and advertising change as well. C. THAT the contract award limits be increased for Purchasing Manager, Department Head, and City Council approvals to $100,000, $300,000 and over $300,000 respectively, as proposed in the Policy Report dated January 31, 1996; and FURTHER THAT the Park and Library Boards be requested to adopt the revised contract award limits as well, subject to the modifications noted in the foregoing Policy Report. - CARRIED (Councillor Kwan opposed to A, B and C) (Councillor Puil opposed to C) The following motions by Councillor Kwan were put and carried. The Committee, therefore, RECOMMENDED D. THAT the changes to the contract execution authorities be approved, as proposed in the Policy Report dated January 31, 1996; and FURTHER THAT the Park and Library Boards be requested to adopt the revised execution authorities as well, subject to the modifica-tions noted in the foregoing Policy Report. E. THAT approval authority be delegated to Department Heads for contract change orders as proposed in the Policy Report dated January 31, 1996; and FURTHER THAT the Park and Library Boards be requested to adopt this revised authority as well, subject to the modifications noted in the foregoing Policy Report. - CARRIED UNANIMOUSLY The following motions by Councillor Sullivan were put and carried. The Committee, therefore, RECOMMENDED F. THAT the award limits be increased on consultant contracts for Department Head and City Council approvals to $30,000 and over $30,000 respectively, including the changes to the contract execution authorities, both as proposed in the Policy Report dated January 31, 1996; and FURTHER THAT the Park and Library Boards be requested to adopt the revised consultant contract award limits as well, subject to the modifications noted in the foregoing Policy Report. G. THAT the limit be increased on the City Manager's legal settlement authority from $20,000 to a maximum of $50,000 as proposed in the Policy Report dated January 31, 1996. - CARRIED (Councillors Kwan and Puil opposed to F and G) (Councillor Price opposed to G) The following motion by Councillor Kwan was put and carried. The Committee, therefore, RECOMMENDED H. THAT the changes to the City's policy on bid and performance bonds be approved, as proposed in the Policy Report dated January 31, 1996; and FURTHER THAT the Park and Library Boards be requested to adopt the revised policy as well, subject to the modifications noted in the fore-going Policy Report. - CARRIED UNANIMOUSLY The following motions by Councillor Sullivan were put and carried. The Committee, therefore, RECOMMENDED I. THAT approval authority be delegated to Depart-ment Heads to hire contract employees into vacant exempt positions as proposed in the Policy Report dated January 31, 1996; and FURTHER THAT the Park and Library Boards be requested to adopt this revised authority as well, subject to the modifications noted in the foregoing Policy Report. J. THAT the Board of Administration by-law be changed as appropriate to reflect Council action on the above recommendations. K. THAT quarterly reports with analysis be provided on the administration and conduct of City business - CARRIED (Councillor Kwan opposed to I and J) 5. Acquisition of a Document Imaging/ File: 1007 Management System The Committee had before it an Administrative Report dated March 18, 1996 (on file), in which the General Manager of Community Services, in consultation with the Corporate Manage-ment Team and the Imaging Steering Committee, recommended approval of purchase of, and a financing plan to implement, a corporate document imaging/management system. Also before the Committee were the following: - Memorandum, dated March 24, 1996 (on file), from the General Manager of Community Services, advising of the inclusion of $50,000 in consultant fees in the total cost of the loan for acquisition of the document imaging/management system due to delays in considera-tion of the report. - Memorandum, dated March 27, 1996 (on file), from the General Manager of Community Services, clarifying expectations on substantial operating savings achieved within two years of system implementation. Mr. Ian Shepherd, Manager, Administrative Services, Mr. Alex MaCaulay, Acting Supervisor, Data Resource Centre, and Ms. Carlene Robbins, Supervisor, Correspondence Branch, Permits & Licenses Department, with the aid of a slide and video presentation, explained the need to replace the current filing system and how the proposed document imaging/management system will improve internal and external customer services, as well as working conditions for staff. Mr. Paul Faoro, representing the Canadian Union of Public Employees, Local 15, expressed a concern with the proposed $500,000 annual savings from existing Community Services Business Group operating budgets. The Union is requesting re-assurance the savings will not come from reduction of staff. Reduction of staff will not help deliver proposed increases in customer services. Mr. Ted Droettboom, General Manager of Community Services, advised any discussion of reduction in staff is premature without a more detailed review of processes in the Planning and Permits & Licenses Departments identifying how services are improved, what resources are required to improve those services, and if service is maintained or increased. The following motions by Councillor Kennedy were put and carried. The Committee, therefore, RECOMMENDED A. THAT the acquisition of a Document Imaging/ Management System be approved, with financing by way of a loan of up to $2,820,600 from the Capital Financing Fund (Solid Waste Capital Reserve), on terms and conditions as determined by the Director of Finance. B. THAT the contract for design, supply and implementation of the first stage of a Document Imaging/Management System be awarded at a cost not to exceed $2,307,900 including all appli-cable taxes; and a one-time software and hard-ware maintenance contract for 1996 at a cost of $68,857 including all applicable taxes, to Andersen Consulting; and FURTHER THAT the Director of Legal Services be instructed to execute a contract with Andersen Consulting on terms and conditions to the satisfaction of the General Manager of Community Services. C. THAT funding be approved for renovations, furniture and equipment at an estimated one-time cost of $100,500. D. THAT one-time funding be approved for staff technical training at an estimated cost of $35,500. E. THAT the establishment of a Transition Team be approved, consisting of 3.40 F.T.E. of temporary full- time positions for up to 1 year, subject to job evaluation by the General Manager of Human Resource Services, for the design and implementation of the system, at an estimated one-time cost of $159,000. F. THAT the establishment of a regular full-time system administration position be approved in Permits & Licenses and 1.25 F.T.E. of support positions in Information Services, subject to job evaluation by the General Manager of Human Resource Services, to provide on-going support and maintenance of the system, at a 1996 estimated cost of $38,900 and an estimated annual cost of $124,000. G. THAT the methods for repayment of the Document Imaging/Management System Loan be approved as follows: i) $500,000 of savings from the existing Community Services Business Group operat-ing budgets beginning in 1999. The General Manager of Community Services will report back before December 31, 1998, on the specific source of these savings; and ii) Increases in Trade Permit fees of 2% beyond the normal inflationary increases recommended annually by the Directors of Permits & Licenses and Finance in each of 1997 and 1998. These increases will generate an additional $200,000 of revenue in 1997 and a further $200,000 in 1998, for a total on- going increase of $400,000 from the 1996 level. - CARRIED UNANIMOUSLY The following motion by Councillor Kwan was put and LOST. THAT staff report back on how any savings attri-butable to the staff resources related to the Document Imaging/Management System be applied to service improvements in other areas. (Councillors Bellamy, Hemer, Kennedy, Price, Puil, Sullivan and the Mayor opposed) The meeting adjourned at approximately 11:20 a.m. * * * * *