Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of Community Services, Social Planning Department

SUBJECT:

Beach Childcare Proposal

 

RECOMMENDATION

CITY MANAGER'S COMMENTS

COUNCIL POLICY

The financing arrangements for the Granville Slopes Park project as approved in July 29, 1993 necessitated the rezoning and sale of 1005 Beach Avenue to repay the PEF for their contribution to the park project.

The rezoning application for 1005 Beach Avenue, approved by Council at Public Hearing in July 1997 required that the City make suitable arrangements for the relocation of the existing daycare spaces to an appropriate site in the West End.

On May 4, 1999 Council approved infrastructure funding to create a new daycare site at the northwest corner of Beach Avenue and Burrard Street, (site illustrated in Appendix A) subject to the securement of capital financing for the construction of a new childcare facility.

The Capital Budget for City-owned social and cultural facilities, including childcare, still has an available balance of $ 593,604. The Capital Grants program has an unallocated balance of $96,885.

Council approval is required for capital works in excess of $100,000. Finance advises that Recommendation C is considered a grant (albeit repayable) and therefore requires eight affirmative votes.

PURPOSE

The purpose of this report is to obtain approval for the capital financing plan for construction of a new City-owned childcare facility on the northwest corner of Beach Avenue and Burrard Street thus facilitating the relocation of the existing Beach Daycare spaces from 1005 Beach.

BACKGROUND

In November 1989, Council endorsed the Granville Slopes Neighbourhood Concept Plan, which included a neighbourhood park at 800 Beach Avenue. The funding strategy for the park was approved by Council in December 1989, of which _ of the cost would come from CAC's on new projects and _ would come from a local improvement on existing projects. The park was acquired by May 1992.

In May 1993, Council chose not to proceed with the local improvement for the _ residents' share of park costs which amounted to $2,089,000, and staff were instructed to report back on park development and funding options. At the July 29, 1993 meeting of the Standing Committee on City Services and Budgets, it was decided that the full park would be developed and that the PEF would contribute $1,429,000 towards the funding shortfall, in expectation of achieving increased density on any of four PEF sites identified in Appendix B. Due to fragmented ownership or other constraining issues (e.g. Hornby Connector), 1005 Beach Avenue was the most feasible site to generate increased zoning sufficient to repay the PEF.

Rezoning of 1005 Beach Avenue began in 1995. This site is improved with 2 daycare portables and is leased to BCBC at a nominal rent. The YMCA has operated the 37 space daycare for children aged 18 months to 5 years for approximately 25 years. A team of staff reviewed numerous options for replacement of the existing daycare spaces including on-site and off-site opportunities. The rezoning application was approved by Council at Public Hearing in July 1997, with a condition of enactment being:

After a lengthy investigation of potential civic owned sites, it was determined that the only viable option was the creation of a new daycare site immediately adjacent to the Burrard Street bridge on the northwest corner of Beach Avenue and Burrard Street (see Appendix A) This was approved by Council on May 4, 1999, subject to finalization of a financing plan of the construction costs for the new facility and $235,000 was allocated from the PEF for the necessary relocation of utilities.

CURRENT SITUATION

The proposed childcare site, while feasible, is challenging due to the changes in grade, the long, narrow shape of the lot, the close proximity of the bridge, and the need to fit into the urban design of the Granville Slopes area. A feasibility study and preliminary design was commissioned by BCBC, at the request of the Ministry for Children and Families (MCF), and was undertaken by Davidson Yuen Simpson Architects. This has been reviewed by City staff and costed by a quantity surveyor and BCBC. Cost estimates range from $950,000 -$1,025,000 including hard/soft costs and playground development.

On July 28, 1999 and again on August 10th, it was confirmed that provincial funding of $540,000, as earlier negotiated and confirmed by the MCF at meetings on March 12th and June 9th, continues to be available for the Beach relocation project through BCBC even though the mandate for childcare has moved to the Ministry of Social Development and Economic Security. These funds are in addition to the monies already spent to date by BCBC and MCF on preliminary design work. Further, BCBC, in consultation with MCF, indicated that they would be willing to provide funding and turn over the project management to the City, if the City will guarantee that the provincial funds will be used to construct a custom designed 37 space City-owned childcare facility at the Council approved location adjacent to Burrard Street bridge, for the purpose of housing the existing Beach childcare portable spaces. BCBC also requested that a regional BCBC representative be included on the project team.

Staff are recommending a City contribution of $325,000 for this project. Funding is available through the 1999 City-owned Social and Cultural Services Capital Budget for childcare projects. While this is a larger than usual City contribution, there is a need to take advantage of the availability of provincial funding so the PEF can move forward with the sale of 1005 Beach. It is the Childcare Co-ordinator's assessment that other childcare capital projects under consideration for this Capital Plan are not ready to proceed at this time and that the relocation of the Beach daycare spaces should be considered a priority for 1999.

Once the City's GST rebate is taken into consideration, there is still a project budget shortfall of between $50,000 and $140,000. In discussions with the City Manager, the YMCA of Greater Vancouver agreed to contribute up to $90,000 towards the building costs, raise $50,000 towards the playground costs, provide all equipment/supplies and operate the 37 space childcare centre so long as:

· the funds for the building contribution could be paid to the City over an extended time period to keep monthly payments manageable within the childcare operating budget and the funds would only be called upon if the hard and soft capital construction costs (including playground costs) exceeded $915,000
· the facility would be considered part of the City's childcare inventory and eligible for maintenance accorded to other City-owned childcare facilities, and
· the annual rent would not exceed $1 a year for the life of the building.

In the current context of childcare funding, the maximum that the YMCA can afford to pay back on a monthly basis is $300 per month without seriously impacting parent fees. This means that if the full $90,000 is required, the repayment period could be twenty-five years. It is anticipated, however, that cost efficiencies will be achieved in light of the current economic slow-down in the building industry. Therefore it is unlikely that the full contribution will be required, but until Facilities Development has signed off the design, received the project tenders and confirmed final costs, staff feel that it is important to build in a creative funding mechanism for up to $90,000. It is recommended that the source of funding be the unallocated funding in the 1999 Capital Grants program. The agreement with the YMCA would build in a provision that the monthly payment could be increased above $300 a month if new childcare operating funds for building occupancy costs become available in the future.

As part of the operating agreement between the YMCA and the City for use of the new City-owned childcare facility for $1 a year, a repayment plan for the building contribution would be included. The monies collected through the repayment plan would be returned to the City's general revenues.

Given that Davidson Yuen Simpson are already familiar with this project because they were retained by BCBC for the preliminary design work and costing, and in the light of the tight timelines and the need for an architect well experienced in childcare design, it is the recommendation of the Manager of Facilities Development that Davidson Yuen Simpson Architects be retained as the architects for the project at a fee commensurate with the fee structure of the AIBC.

Because the provincial childcare mandate has recently been transferred from MCF to the new Ministry of Social Development and Economic Security, staff are recommending that the City's role in this project as outlined in this report, be subject to confirmation of the transfer of provincial funding to the City in a legal agreement to be signed prior to December 9, 1999.

CONCLUSION

Staff recommend that Council approve the funding and agreements proposed in this report, in order to permit the timely sale of the 1005 Beach Avenue and to take advantage of the provincial funding available.

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