ADMINISTRATIVE REPORT

Date: November 10, 1998
Author/Local: P.Rutgers/8463
RTS No. 316

CC File No. 8009

TO:	Vancouver City Council
FROM:	General Manager of Community Services in consultation with the General Manager of Parks and Recreation
SUBJECT:	Coliseum Chiller

RECOMMENDATION

THAT Council reimburse the PNE $106,354.58 for the overhaul of the chiller in the Pacific Coliseum; source of funds to be a transfer from Revenue Surplus to be repaid from the Hastings Park Reserve in 1999.

COUNCIL POLICY

There is no applicable Council policy.

BACKGROUND

The restoration of Hastings Park is being managed through the Capital Plan and the Hastings Park Reserve. The reserve receives its funding, in part, through the annual lease revenues from the Hastings Park Racecourse. In 1997, revenues from this source totalled $1,075,000.

Council has undertaken to provide $500,000 in annual financial support to the maintenance of the Hastings Park site through the end of the current lease with the PNE. The source of funds for this payment is the Hastings Park Reserve.

PURPOSE

The purpose of this report is to seek Council’s approval for an additional payment to the PNE to offset a large equipment repair cost at the Pacific Coliseum.

DISCUSSION

In June of this year, the chiller at the Coliseum needed to be a substantially overhauled. The need to have the chiller overhauled was identified shortly prior to the Sumo Wrestling Event. The work needed to be undertaken quickly in order to ensure the availability of air conditioning during this event. PNE officials approached the City at the time and the City staff reviewed the various repair options and concluded that the lowest cost option should be implemented.

Since the overhaul will give the chiller a life expectancy of approximately 10 years, the PNE suggested that the costs be split on an 80/20 basis, noting that the City will take over the management of the site on January 1, 2000. The PNE would benefit from this overhaul two years while the City would have the benefit for the estimated eight years.

Under the existing lease with the PNE, the PNE is responsible for regular maintenance only but has no obligation for structural repairs. Staff considered this overhaul to be of a structural repair nature and therefore recommend that Council pay 80% of the costs.

FINANCIAL IMPLICATIONS

Council is providing $500,000 annually to the PNE to assist with park maintenance under the current lease agreement, with the source of funds being the Hastings Park Reserve. It is appropriate that this also be the course of funding for this project. However, the balance in the Hastings Park Reserve has been fully committed to the restoration of Hastings Park. Should Council agree to fund this portion of the upgrade project, the Director of Finance recommends that funding be provided by an advance from Revenue Surplus to be repaid from the Hastings Park Reserve in 1999.

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(c) 1998 City of Vancouver