PROPOSALHIGHLIGHTS:

ClassAOceSpace LongTermSolu on ImprovedServicestothePublic SharedITServices Collabora onOpportuni es

For more informaon PLEASECONTACT: KevinCormack,CityManager CityofNelson 101310WardSt.,Nelson,BCV1L5S4 t.2503528203kcormack@nelson.ca

RegionalServicesVision.....................................................................................2 TheProposal.......................................................................................................3 BuildingSummary..............................................................................................8 FacilityOverview.........................................................................................8 Loca on......................................................................................................9 CurrentOccupants .....................................................................................10 ProposedNewOceSpaces.............................................................................11 Ameni es.........................................................................................................19 Technology................................................................................................20

ParkingandOtherFeatures..............................................................................23 Opera onsandCapitalImprovements ..............................................................26 Appendices.......................................................................................................30

RDCKOceRequirements...................................................................................A.1 RockyPointEngineeringLe er.............................................................................A.2 Collabora veTrainingOpportuni es...................................................................A.3 CityofNelsonOrthoMap....................................................................................A.4 SupportLe ers...................................................................................................A.5 ParkingSketch.....................................................................................................A.6 LeaseClauses......................................................................................................A.7 MainLobby/CentralRecep onDesignSketch......................................................A.8 ThirdFloorDesignSketch.....................................................................................A.9 SecondFloorDesignSketch ...............................................................................A.10 LowerLevelDesignSketch.................................................................................A.11

The majority of government services in the Nelson region will be delivered in two mainbuildings:
310 Ward Street (Government Place) the central hub for residents of our region to access local government related services (City, RDCK and Provincial Government Services including Service BC,MoTI,CourtServices). 333 Victoria Street (Kutenai Place) focused on social, health & educa onal services (Interior Health,Children&Families,MinistryofEnvironment,etc.).

Working/OceSpace
The RDCK is being oered ownership of their own space in 310 Ward St. at the Citys original purchase price. Ownership structure is exible and can range from a longterm lease with op ons to renew at a nominal amount, eec vely crea ng ownership to a formal tled ownershipsuchasastrata. All space requirements of the RDCK have been met or exceeded, and the majority of sta will be located on a refurbished third oor. The Development Services sta of the City and RDCK will be colocated on the 2nd Floor and the IT sta on the Lower Level. The preliminary design iden es approximately 13,200 2 of dedicated space plus approximately 3,200 2 of shared space; the total usable space is 16,400 2 which is over 4,000 2 more than at 202 Lakeside Drive. The space includes a exible combined boardroom/council chambers; lobby and washroom;avarietyoflargeandsmallermee ngrooms;andseveralclientrooms. This is a longterm solu on for the RDCK. The dedicated oce space provides 2,400 2 of addi onal space as compared to 202 Lakeside Dr., including 1200 2 of addi onal open space and 800 2 of addi onal mee ng space. It is es mated that construc ng this addi onal dedicated space alone at 202 Lakeside would cost more than $600,000. In addi on, more spacemaybecomeavailableinthefutureasprovincialleasesexpire.

TheNewBuilding
310 Ward Street is one of the most energy ecient and technologically advanced buildings in the Interior. The building has been well maintained and recent improvements have increased the comfort and quality of the work environment, including fresh air and zoned temperaturecontrols.

Loca onandAmeni es
The central loca on of the building facilitates doing business in the downtown, whether private or RDCK business. It is easily accessed by transit, car, bike or on foot, and is near to major facili es like the Nelson District Community Complex.Anewshowerfacilitywillbecreatedinthelowerleveltosupporttheac velifestyles ofsta.ApleasantlandscapedgreenspaceisalsoavaluablefeatureofGovernmentPlace.

RockyPointEngineeringLe erAppendix#2

The presence and visibility of the District will be enhanced by moving out of an industrially zoned area into a prominent, hightrac downtown loca on that already receives more than 75,000 inperson visits a year. These visits include regional residents and the development community,whonditaconvenientmul servicebuilding. Both public parking and sta parking op ons are available on site. In addi on, there are other nearbyop onsthatprovideaddi onalexibility.

Collabora on
The RDCK, City and Province are known for being innova ve. The RDCK, RDKB and the City of Nelsonrecentlyreceivedaninnova onawardfromtheUBCMfortheregionaltransitini a ve. The City and the Province have also been recognized provincially for the 310 Ward St. co loca onin2004.Allthreepar esarecommi edtondingecienciesthroughsharedservices and shared exper se, and this will be greatly enhanced by being in the same building. Proximity to other sta will encourage interac on, which will lead to increased exper se and depth of knowledge, and be er decisionmaking. This is par cularly true for IT and Development Services sta, who will be colocated with their colleagues. As well, savings from simple economies of scale (e.g., through joint sta training sessions or equipment sharing) will beachieved,againbecausetheproximityofstamakesthiseasytodo. Spaces will be shared, such as the lobbies and recep on areas, certain mee ng rooms and equipmentinthem,andpublicandprivatewashrooms.Maintenancecostswillalsobeshared. Thelobbiesandrecep onareaswillbeusedtofeaturethethreepartnersinthecoloca on. The RDCK will benet from enhanced IT services as a result of the Citys infrastructure, includinganewfullycompliantserverroom,theabilityto eintotheCitysnewphonesystem, andtheupgradedsoundsystemintheboardroom/councilchambers.

PurchaseCostandImprovements
The RDCK will be able to buy into 310 Ward St. at a cost based on the Citys original purchase price. The RDCKs cost will be $1,232,000; the current assessed value is $1,806,000 (this includesspacefordedicatedRDCKuseaswellasa50/50splitonthesharedspaces). To accommodate the reloca on of the RDCK, the City of Nelson will purchase 202 Lakeside Driveforitsassessedvalueof$1,728,000subjecttoaninspec on. The dierence between the Citys purchase price for 202 Lakeside and the RDCKs purchase of spaceat310WardSt.createsatenantimprovementreserveof$496,000.

Tenant improvement costs are es mated at approximately $800,000, if exis ng oces are reused where possible; reuse is a principle adopted by both organiza ons and is consistent with the plan for 202 Lakeside Drive. With the addi onal open space being provided and more storage op ons, the City believes the Districts exis ng furniture could be used, resul ng in a savings of up to $200,000. The City is willing to take on the nancial risk of the tenant improvements and provide a turnkey solu onsothattheRDCKreloca onprocessisverystreamlined.PriortotheCityassumingthisrisk, however, the design will be completed and the City will have the right to do a nal cos ng for the tenantimprovements. The City will make improvements to the lobby areas, add a shower facility and costshare in a new boardroom/council chambers. The Citys es mated contribu on for this work is $200,000. The RDCKwillberesponsibleforitsownmovingandlegalcosts.Opera onsandmaintenancecostswill beallocatedtotheRDCKonthesametermsasothertenantsinthebuilding.

Parking
Thereareover100parkingstallswithintheimmediatearea.TheRDCKcanpurchaseonsiteparking attheCitysoriginalpurchasepriceof$3,500perstall(currentvalueat$5,600perstall),orleaseat thesamerateastheothertenants(currently$35/month).AllofRDCKparkingrequirementscanbe met onsite if desired. Alterna vely sta parking can be provided in the lower level parking lot at the NDCC at 50% of the 310 Ward Street monthly rate. Parking is also available at the parkade. Therearemanyexibleop onstoaccommodatetheRDCKsparkingrequirements. TheCitywillprovideannualparkingpassestoRDCKdirectorsatnocost.Thesepasseswillallowfor parking within the City while on RDCK business, and will be usable at the parkade as well as on meteredstreetparking.

OtherCityContribu ons
The City will retain full responsibility for the building shell as iden ed in the current lease agreement with the Province. The City will provide the RDCK with rack space in the Citys COLO facility at no cost. The RDCK will cost share in any future upgrades, based on their usage of rack space. The constructed value of this facility is $100,000. RDCK will be able to u lize the facility generatorforbackuppowertotheEOCandcri calequipment(avalueof$75,000). The City is not requiring the RDCK to purchase their 50% of the common lobby and washrooms on thelowerleveland2ndoors(value$113,000).

PublicBenets
Thepublicwillbenetintwomainways.

First,GovernmentPlaceiscentrallylocatedintheheartofNelsonsdowntown,andotherservices are easily accessible from the building including medical, nancial, shopping, dining as well as the other mainprovincial government building (Kutenai Place). Public parking is available onsite and themainBCTransitsta onisnearby.Thebuildingisfullyaccessedbytwoelevators.Government Place is already wellused, receiving more than 75,000 in person visits per year. The public will experience a more streamlined and ecient provision of government services throughatrigovernmentcoloca onat310WardStreet.

Second, the cost of government will be reduced through co loca on. For example, IT savings alone have been es mated at more than $50,000 per year. Other eciencies and cost savingsarean cipated.

SharedServiceandSpaceOpportuni es
Many opportuni es exist for collabora on and sharing of spaceandservices.AnimmediateopportunityisInforma on Technology; coloca ng the City and RDCK departments and sharingofspace,suchastheITcoloca on(COLO)room,will bring greater eciencies and coopera on. It is proposed that Development Services departments will also be co located. Other shared space will include the main lobby, washrooms(staandpublic),certainmee ngrooms,client rooms, and the exible boardroom/council chambers. ProvisionofwarehousingtotheRDCKisalsoapossibility.

BCMailPlus TheRDCKwillnotrequireaseparate mailroomorsor ngfacility.BCMail Plusoersaatratemailserviceat 310WardStreetforle ers,atsand packages,whichgreatlyreducesthe amountofpersonhoursrequiredfor processingmail.Astandardle eris processedandmailedfor$0.63.

BC Mail Plus is located in the building and also oers a servicethatwillbeofvaluetotheRDCK,asitistotheCity.

StaandOrganiza onalBenets
The central loca on of Government Place provides convenient access to the downtown, allowingstatoeasilydobothRegionalDistrictbusinessandtheirownpersonalbusiness.The buildingisashortwalktotheNelson&DistrictCommunityComplex,isserviceddirectlybyBC Transit and is walkable within Nelson. It also features a landscaped courtyard with green spaceandsea ng,suitableforbreaksandRDCKac vi es. The oce space is Class A (see deni on on page 19). There is plenty of natural light, and spacious and comfortable working areas with superior technology infrastructure. Space alloca onwillbedesignedtomeet bothshortandlongtermneeds,meaningtherewillbeno requirement or need to move if the RDCK expands. The workspaces will be completely renovatedpriortothestamovingover,whichwillgreatlyreducedisrup ontothem. Signicantly more mee ng room space (800 Programoceisonlystepsaway). From a management perspec ve, there will be a reduced level of administra on required for buildingmanagement,ITinfrastructure,etc. Importantly, because both the City and RDCK employ sta with the same responsibili es, there will be opportuni es to share exper se or to provide backup in case of sta leaves (e.g., network specialists, HR professionals, planners, building inspectors). Simply having a colleague across the hall to discuss a problem with can produce signicant benets,and build trust and coopera on among sta in all departments of the City and Regional District. These opportuni es will benet municipali es and electoral areas across the RDCK and create addi onal depth in both organiza ons and the region. It will also provide sta with added learningandworkexperiences. There is a mix of unionized and nonunionized employees that work in the building for both the City and the Provincial Government. These employees work side by side with their exempt colleagues and the City enjoys posi ve rela onships with its Unions. Although, there have been work stoppages and picke ng at the site, access has always been made available tothoseemployeeswhodonotwanttocrossapicketline.
2

) is proposed, including a sta training centre

and op ons for the Emergency Opera ons Centre (EOC) (note that the Provincial Emergency

FACILITYOVERVIEW

The facility located at 310 Ward Street is a atroofed six storey concrete frame building with a builtup roof system. The building was originally constructed in 1974 for the Provincial Government and was renovated in 2004 to accommodate the reloca on of City Hall for the CityofNelson.Twoelevatorsservicealllevelsofthebuilding. The building provides approximately 5,481m2 (59,000 2) of condi oned space, consis ng of 45,109m2 (55,000 2) of Class A oce space and 278m2 (3,000 2) of storage. The building sits on a 10,000m2 (108,000 2) site which includes an 1,672m2 (18,000 2) courtyard and is serviced by 5,760m2(62,000 2)ofparkingspace. The building has always been professionally managed. Property management is currently provided by BLJCWSI which provides access to provincialwide contracts at a reduced rate, such as snow clearing, custodiansandbuildingmanagement. According to a review by Cascade Facili es Management Consultants Ltd. in November 2012: ... the basic structure of founda on, exterior walls and windowsaresolidandshouldperformwellformanyyears.

ABLJCWorkplace Solu onsCompany

Above:Staenjoyingabreakinthe courtyard Le :LocalGovernmentWeekeventin courtyard

LOCATION
The building is located in the downtown core of Nelson, BC on Ward Street, just y meters from Vernon Street. Baker Street, Nelsons main downtown street, is approximately two blocks away. Most of the retail, nance and restaurants services in Nelson are located either on Vernon Street or Baker Street. The main public transit sta on is located on Baker and Ward which is two blocks from thebuilding.

The building is currently a one stop service centre for the region with many of the key provincial government and City of Nelson services housed in the building. Many rural residents are familiar with the building as this is where they pay their property taxes, hydro bills, renew their drivers license or pick up their hun ng license, amongst many other services available at 310 Ward Street. The building has high public trac ow throughout the year; in fact, it is es mated that the City has 45,000inpersonvisitsannuallyandServiceBCapproximately30,000.

NelsonandDistrictCreditUnion

WardandBakerTransitSta on

310WardSt.isconveniently locatednearhotels,restaurants, publictransit,nancial ins tu ons,retailstoresand coeeshopswhichwouldbenet staandDirectorswhenthey visitNelsonformee ngs.

HumeHotel

CityofNelsonOrthoMapAppendix#4

CURRENTOCCUPANTS

ServiceBC

BCMinistryofTransporta onandInfrastructure
(RuralAreaApprovingOcer)

BCMinistryofChildrenandFamilyDevelopment BCMailPlus BCSafetyAuthority

(GasandElectricalInspectors)

BCMinistryofJus ce,AdultProba onandCrownCounsel

ColumbiaBasinAllianceforLiteracy
10

MainLobbyCentralRecep on
WelcometoGovernmentPlace,atrigovernmentalpartnershipbetweentheGovernmentof Bri shColumbia,theRegionalDistrictofCentralKootenayandtheCityofNelson.Aspartof thetrigovernmentcoloca on,theCityisproposingtoupgradethemainoorlobbyareato createacentralrecep onarea.Itwillbeaprofessional,invi ngspaceandthepublicsrst introduc ontothebenetofgovernmentworkingtogether.Thespacewillcontainastaed centralrecep ondesk,asea ngarea,computerkiosksandaprintmaterialdisplayarea.

Although many visitors to 310 Ward Street are already familiar with the building, this new design will not only provide a new level of service but will also bring a more professional aura to the building. This will be achieved through opening up the current area, crea ng new signage for all three levels of government and a feature wall that displays the region. Thespacewillbenishedwithnewrecep ondesk,furnitureandgreenery.

RenderingMainFloorEntry

HavingtheRDCKcolocateinthisbuildingwouldprovidean unprecedentedlevelofservicetothepublic.

HughEberle DistrictManager,Transporta on,MoTi

MainLobbyCentralRecep onSketchAppendix#8

11

ThirdFloorRDCKMainAdministra onOces The RDCK main administra ve services will be located on the 3rd oor of Government Place and will house the following departments: administra on, nance, environmental services, community services, human resources and emergency services. This space will be designed in a way that meets both the currentandfutureneedsoftheRDCK.

Rendering3rdFloorRecep on

310WardStreetisacentralloca ontootherlocalservicesandameni es,nottomen on collabora onbetweenCity,RegionalandProvincialgovernmentserviceswouldprovide ecienciestodeliveringpublicservices.

Jus nPelant President,NelsonandDistrictChamberofCommerce

SupportLe erfromChamberofCommerceAppendix#51

12

Featuresofthe3rdFloorspaceinclude:
Anopenlobbyareathatcontainsafeaturewalldisplayingtheregion,RDCK

signageandafurnishedsea ngarea. Acentralsecurerecep onareawithclientroom. 4,200 2ofopenspaciousworkareas(approx.25 2addi onalperemployee thanallowedforat202LakesideDrive). Over900 2ofdedicatedmee ngroomspacewhichincludesalargemee ng room(470 2)andasmallermee ngroom(320 2). ADirectorsroom. Equivalentclosedocespaceasprovided at202Lakeside. Storage,lingandcopierroom. Astaroom(335 2)withsink,andcounter spacewhichcanbefurnishedasrequired. Plentyofnaturallight(currentdesignhas 234 2ofwindowsintheopenareas). Allspacewillberenewedwithnewpaint, carpe ng,datacablingandelectricaland mechanicalupgrades. Washroomsateitherendofthe oor. Accessedbystairwellsateach endofthebuildingandtwo elevators.
Typicalworkareas at310WardStreet

ThirdFloorDesignSketchAppendix#9

13

SecondFloorDevelopmentServices/BoardroomCouncilChambers/

NelsonAdministra on

The second oor will be a true example of how coloca ng can provide a superior level of service to the public and create eciencies in both space u liza on and sta and equipment resources. The proposal would see the Development Services sta of both the RDCK and City of Nelson coloca ng on the second oor. The preliminary design groups the sta of the City of Nelson and RDCK and is designed along func onal areas: building inspec on, planning and GIS. It also provides a central customer service area forthetwodepartmentsaswellastheCitysAdministra on.

Rendering2ndFloorRecep on

Giventhenumerousprogramsandini a vesthatallourgovernmentagenciesdeliverfor thepublic,thereisagreatopportunityheretofurtherincreasethelevelofcustomer servicetoallourclientsbyoeringonestopshopping. HughEberle DistrictManager,Transporta on,MoTi

MoTiSupportLe erAppendix#52

14

Featuresofthe2ndoorspaceinclude:
Anopenlobbyareathatcontainsafurnishedsea ngareaandfeaturewalldisplaying

theregion,andRDCKandNelsonsignage. A1360 2boardroom/councilchambersthatwillbedesignedtocreatemaximum exibility:fullboardmee ngs,councilmee ngs,alargertrainingroomwhichcanbe dividedintosmallermee ngrooms.Thereisalsoana achedclientroomandstorage room. Acentralrecep onareawithclientroomandcustomerservicecountersforthe DevelopmentServicesdepartmentsandCityAdministra on. Equivalentclosedocespaceasplannedfor202LakesideDrive. Over2,000 2ofopenspaceworkareas(approx.25 2addi onalperemployeethan allowedforat202LakesideDrive). Plentyofnaturallight(currentdesignhas137 2ofwindowsintheopenareas) Storage,lingandcopierspace. Allspaceswillberenewedwithnewpaint,carpe ng,datacablingandelectricaland mechanicalupgrades. AstaroomwasnotdesignedforthisoortoencourageRDCKstatousethethird oorsstaroom;acoeebarisprovided. Washroomsateitherendoftheoor. Accessedbystairwellsateachendofthebuildingand2elevators.

Stamee nginthe2nd FloorAdministra on Mee ngRoom

2ndFloorDesignSketchAppendix#10

15

JointBoardroom/CouncilChambers
The new boardroom will be locatedon the 2nd Floor o of the Main Lobby. The boardroom will be a clear example of local governments working in partnership. The space and furniture will be designed to be mul func onal and fully address the requirements for RDCK Directors, City of Nelsons Mayor and Council and sta of both organiza ons. The following is an example of how thespacecouldbeu lized. Large racetrack shaped table consists of four 1/4 circle and four straight tables that can be recongured in mul ple ways. In the photograph (to the le ) it is shown assembled to seat 2224 people. The rendering (below) shows how the four circular segments t together to make a tablefor14.Eachoftheeighttable segments contains power and data ports concealed under hatches that matchtherestofthetable.

Theboardroomwillbea mul purposespace wherejointtraining opportuni escanbe providedforallthree levelsofGovernment.It canalsobeusedasan addi onalmee ngroom.

16

LowerLevelITCoLoca on
The lower level of Government Place will house the Informa on Technology sta of the RDCK and City of Nelson. As an internal service, the departments do not deal directly with the public, but provide a vital service to both organiza ons. This is an area where both organiza ons see immediate opportunity to share resources and exper se to be able to reduce or contain costs and deliver superior service. Sta in both organiza ons are currently working together on projects such as broadband and internal networks. They are also par cipa ng in a regional ini a ve being sponsored bytheColumbiaBasinTrusttoiden fyfurthersharedserviceopportuni es.

RenderingLowerLevelFoyer

TheideatohavetheRDCK,CityofNelsonandtheProvinceofBCcolocateinonebuilding andcreateaservicecounteramalgama onprojectpresentsfurtherpoten alopportuni es toimproveaccesstoci zenserviceandprogramdelivery. JoyceEdmonds GovernmentAgentforNelsonandKalso

SupportLe erGovernmentAgencyAppendix#53

17

FeaturesoftheLowerLevelinclude:
Anopenlobbyareawithafurnishedsea ngareaandafeaturewall

displayingtheregionwithProvincial,RDCKandNelsonsignage. Over500 2ofopenspaciousworkarea(approx.25 2addi onalper employeethanallowedforat202LakesideDrive). Noneedforadedicatedserverroom($100,000+cost)astheRDCKwillbe abletolocatetheirserversintheCitysnewCOLOroomatnocost. Plentyofnaturallight(currentdesignhas59 2ofwindowsintheopen areas). Astaroomwasnotdesignedforthisoortoencouragethesestatouse thethirdoorstaroom;coeebarprovided. Allspacewillberenewedwithnewpaint,carpe ng,datacablingand electricalandmechanicalupgrades. Washroomsandshowerfacilitylocatedothelowerlevellobby. Levelentryaccessforstaandequipment.

RDCK,therstcustomerto partnerontheCitys externalbrenetwork.

LowerLevelDesignSketchAppendix#11

18

Inaddi ontothefeatureslistedalready,GovernmentPlace,asthepremierocespacein Nelson,alsohasthefollowingameni es:

Elevator access to all oors. Elevators are suitable for the disabled, constructed and equipped in accordance with current industry standards and the Bri sh Columbia Building CodeandMunicipalBuildingBylaw. Each oor has at minimum a 500 frontstairs. Each oor has a separate men's and women's washroom provided adjacent to the front staircase, and a single occupant washroom adjacent to the rear staircase. The men's washroom has one toilet and one urinal, with two sinks. The women's washroom has two toiletsandtwosinks. 18,000 2frontcourtyardwithamplegreenspace,gardensandpicnictables The lower oor has a proposed 135 2 shower and handicap accessible washroom facility, adjacenttothebuildingentranceandelevators. Security Alarm and Fire Alarm systems are monitored both by Paladin security and Nelson Fire Department (NFD) / Nelson Police Department (NPD). A rstaid room is located on thelowerlevelofthebuilding. A building Emergency Evacua on Commi ee has implemented a Fire Safety Plan in partnership with Nelson Fire Department. Each oor of the building has a dedicated Emergency A endant and First Aid A endant. Fire drills are to be held biannually, in the spring and fall. Training will be provided by NFD on an ongoing basis to ensure the safety andreadinessofbuildingoccupantsincaseofanemergency.

lobby immediately accessible from the elevators or

CLASSAOFFICEDeni on
TheBuildingOwnersandManagersAssocia on(BOMA)classiesocespaceintothreecategories:ClassA, ClassB,andClassC.[7]AccordingtoBOMA,ClassAocebuildingshavethe"mostpres giousbuildings compe ngforpremieroceuserswithrentsaboveaverageforthearea."BOMAstatesthatClassA facili eshave"highqualitystandardnishes,stateoftheartsystems,excep onalaccessibilityandadenite marketpresence."

19

TECHNOLOGY

Adaptability

The building already has a robust and modern communica ons wiring system/backbone anddistribu onpathwayswhichcanbeeasilyexpandedtosuittheRDCKneeds. The building roof is already congured for radio systemsrepeaters, truck base sta ons andotherequipmentcanbeaddedwithease. An extremely robust generator is already in placebackup power could be fed to EOC rooms and cri cal equipment. (Value of $75,000). RDCK sta could do a phased move departments or individuals can move on their own schedule while maintaining network/ telephone access just as if they were all in the samebuilding.

FibreOp cs

The City has a comprehensive bre op c networkwhichterminatesat310WardStreet. All oors within the building are connected via breop cs. An array of service providers provide services through the bre op c network from the COLO. Services include internet, o site backups,phonesystems,etc.

CityofNelsonServerRoom

Coloca on(COLO)

TheCityhasalargecoloca onfacilityinthesubbasement. Provisioned with camera security, 30 amp circuits, cooling, bre op c connec vity, fob access,UPSba erybank,etc. Canaccommodateupto12fullserverracks. Willbecompletedby2014/2015.

20

IPTelephoneSystem

TheCityalreadyhasasophis catedShoreTelIPtelephonesystem. AddingtheRDCKtoexis ngsystemissimpleandprovidespoten alcostsavings. Reduc oninduplicatedstangduetocentralizedcallhandlingandrecep on. RemoteRDCKsitescaneasilyconnectoverIP.

ShoreTelTelephoneDisplay

BuildingSecurity

Building has a robust card access security system; adding new doors is a frac on of the costofcrea nganewsystem Doors and elevator can be programmed to allow employees or subcontractors scheduled access.Thiscanberestrictedto mesofday,workdaysonly,etc. Allexternaldoorsanddesignatedinternaldoorstohavekeyfobaccess. Auniquekeyfobcanbeassignedtoeachperson. A lost key fob is easily deleted from the system, no rekeying of doors. Key fobs cost approximately$2each.

21

EmergencyOpera onsCentre(EOC)

The RDCK is considering abandoning the Telus site on Ward and Victoria Streets due to the inability to secure a longterm lease and the need to upgrade the technology and equipment in the facility. The current proposal is to operate the EOCoutoftheboardroomspace. Government Place is ideally suited to act as an EOC during mes of emergency without having signicant impact on the opera ons of the RDCK or City and oersanumberofbenets:
The roof of 310 Ward Street is already congured for radio systems

repeaters,truckbasesta onandotherequipmentcanbeaddedeasily. An extremely robust generator is already in place backup power could be fedtoEOCroomsandcri calequipment. With mul ple sized mee ng rooms the EOC opera ons centre could be housed where needed and doesnt necessarily have to e up the Boardroom whichisrequiredforfullboardmee ngs. There is accessible storage in the basement which could house EOC equipmentwithlevelentryaccess. Direct connec on with Nelson Police Department and Nelson Fire and Rescue,whichcouldbeabenetduringanEOCsitua on. Robusttechnologyinfrastructureinthebuilding. The Provincial Emergency Program building and sta are located on the adjacentproperty,minutesaway.

22

Parking
Thereare109parkingstallsavailableforusersofGovernmentPlace;89reservedstaparking stalls and an addi onal 20 public stalls at the front and rear entrances provide excellent accessibility. The City owned parkade located on 400 block of Vernon Street, directly across from 310 Ward Street, is available for addi onal parking if required. Within a 5 minute walk, there are over 100 addi onal public parking stalls. Handicap parking is available from the WardStreetentranceaswellasfromtheadjacentCourthousewhichhasahandicapstallthat services the Stanley Street public entrance of the building. The building currently accommodatesover75,000inpersonvisitsannually. The City will issue Directors with annual parking passes (at no cost) that can be used at any meteredparkingstallandtheparkade,whileDirectorsareonRDCKbusiness. Both the City and the Province leave vehicles onsite in unsecured parking. The security of eet vehicles can be provided within a fenced compound, or under covered parking at the parkadeifrequired.Somestaparkingcanbeprovidedositeatareducedcost.

Parking
Public
Metered UnMetered Handicap

RDCK Requirements
8 25 9 19

GovernmentPlace (Availability)
12 7 1 20 25 9

CityParkade/ Street
19

Total

Sta
Assigned

Fleet
Assigned

Directors
ParkingPasses

ParkingSketchAppendix#6

23

Storage

The preliminary design iden es storage on each oor that is occupied by the RDCK thisincludeslevelentrystorageonthelowerlevelfortheu li esdepartment. Thenalstoragelayoutwillbedeterminedduringthedetaileddesignphase. Totalstorageallocatedinthedesignis800 2. Adedicatedmailroomisnotrequired,butcanbeaccommodated,astheCitywillshare its exis ng mail room located on the ground oor and BC Mail Plus will process the mail. Addi onal storage for archival material can poten ally be located on site at the 302 WardStreetbuilding. Loca onofstorageisexibleanddoesnthaveto eupvaluableocespace.

Growth/Expansion

The proposal provides the RDCK with an addi onal 1,200

of open space and 900

ofaddi onalmee ngroomspace.

The proposal oers 500
2

of dedicated lobby space on the 3rd Floor which can be

u lized as oce, storage or mee ng room space in the future if desired (a number of othertenantshavedonethis).
Itisan cipatedthattherewillbeapproximately1,500
2

ofunleasedspaceinaddi on

tothespacethatwouldbeoccupiedbytheCity,RDCKandtheProvince.
ThecurrentleaseswiththeProvincialGovernmentrunonaveragebetween35years,

whichwouldprovidetheRegionalDistricttheopportunitytoacquireaddi onalspace.
The 2nd Floor main boardroom/council chambers will be designed to be exible,

addinganaddi onal1,360 2ofspacethatcanbeusedinavarietyofways.

24

TheGreenEdge

310WardStreetisinaprimeloca ontotakeadvantageofwalking,bikingorridingthe bus to work. At the heart of Nelson, it is only minutes walking to nearby restaurants, banks, coee shops, and other ameni es downtown has to oer, reducing the need to driveandencouragingamoresustainablelifestyle. The City of Nelson is dedicated to promo ng a sustainable work environment for all its tenants. The RDCK would be invited to par cipate in a Building Green Team, with members from the Province and City. An example ini a ve taken on by the Green Team was the recycling of 51kg's of ba eries for the 2013year. The building at 310 Ward Street uses 40% less energy perunitareathancomparablebuildingsintheInterior Region. The energy reduc on ini a ves recently completed have realized a reduc on of $22,000 in annual u lity costs when compared toa2007baselineyear.Projectsrecentlycompletedwillgeneratesimilarsavings. Sustainability has been a major driver for the City of Nelson for the past 5 years, triggering the Corporate Climate GHG Reduc on Program in 2009. The program has provided signicant success to date, reducing GHG emissions related to 310 Ward Street by 88.4 tCO2e/yr. This is equivalent to taking over 18 passenger vehicles o the roadeveryyear. The City has reached Level 5 in the FCMs Partners for Climate Protec on Program. Energyecienciesat310WardStreetplayedakeyroleinreachingthislevel. Car Share Opportunity Kootenay Car Share has proposed partnering with City of Nelson to establish a car share program on site. There is currently a car share site acrossthestreetattheNelsonandDistrictCreditUnion.

Having the RDCK join in the shared services vision reduces duplica on. For building services,asingletruckwouldberequiredpervisitfordocumentshredding,O&M,andmail services. This would reduce the associated fuel and transporta on emissions of each occupantprovidingtheirownbuildingservices.

25

RecentMajorCapitalImprovements

As one of the Citys largest buildings, 310 Ward Street has been a focal point for the City of Nelsons Corporate Climate GHG reduc on program, resul ng in a signicant reduc on in energy use and GHGs documented below. These projects not only aid EnergyIntensity [ekWh/m2/yr] in achieving climate ac on goals, but provide a more sustainable opera on with improved air quality and building comfort. Since 2010, the City has conducted three major Energy Conserva on Measures(ECMs).
OverallFacilityEnergyIntensity[2009][ekWh/m2/yr] MediumOce[InteriorRegion][ekWh/m2/yr]

Prior to ECM implementa on, the facility had an excellent energy performance record with a 40%

loweroverallenergyintensity(energyuseperunitarea)thanothermediumocebuildingsin the Interior Region, as documented in a 2010 Energy Study & Condi on Assessment Report conducted by CDML. Energy savings projects to date have realized an annual cost savings of $22,000whencomparedtoa2007baselineyear.

ECM#1Installa onofHighEciencyCondensingBoilers

ProjectDescrip on: Exis ngboilerswerereplacedwithtwohigheciencycondensingfullymodula ng boilers. EnergySavings

EnergyReduc on(%) 30%

NaturalGasSavings (GJ) 1,087GJ/yr

GHGEmissionReduc on 54tCO2e/yr

NOTE: Savings are based on a comparison of energy data in the pre retrot year (2009)toenergydatainthepostretrotyear(2012).

26

ECM#2UpgradeoftheDigitalControlSystem
ProjectDescrip on: An older model, analog control system was upgraded to a Delta direct digital control (DDC) system. Sensors are installed to allow for set points of CO2 and temperature to control the func oning oftheHVACsystem.Inaddi on,systemscanbescheduledwithdierentse ngs foroccupiedandunoccupiedhours. EnergySavings: Due to the wide ranging impact of DDC systems, it can be dicult to determine the exact energy eects of the system, but 310 Ward Street has seen a signicant decrease in electrical consump onsincetheinstalla onofthesystem(seebelow).
EnergyReduc on(%) ElectricitySavings(kWh) GHGEmissionReduc on

10%

77,120kWh/yr

0.2tCO2e/yr

ECM#3FloorbyFloorZoneIsola onandVariableSpeed Drive(VSD)Retrot

ProjectDescrip on: The exis ng HVAC system is being retro ed to create more zones within the building and allow for more control of the system. Control dampers are being added to each oor to convert it from two zones per oor to six zones per oor. Motors are being replaced and variablefrequencydrivesaddedto allowformodula onoftheven la on.Hydronicheatfor 310WardStreetandtheCourtHouseisalsobeingrepipedtogainmorecondensingfunc on fromtheboilers.

EnergySavings: Thisprojectisintheprocessofbeingcommissioned,soactualenergysavingshavenotyet beenrealized.Thesavingsbelowareanes matebasedonanASHRAELevel1energy assessment.(Projectedsavings$15,000$20,000perannum)

NaturalGas Savings(GJ) NaturalGas Savings(%) ElectricitySav ings(kWh) ElectricalSavings (%) GHGEmission Reduc on

652GJ

30%

39,939kWh/yr

5%

34.2tCO2e/yr

27

PlannedMajorCapitalImprovements Title
BasementDoor Replacement LobbyRenish SecuritySystem Upgrades

Descrip on
Slidingbreakawayglass doorforpublicuse Modernizelobbyfor trilevelgovernment Addaddi onalsecurity doorsonMain,2ndand 3rdFloors UpgradeofFApanelto moremoderndevice Cleanandresealingof concreteexterior Possibleroof replacement

BudgetEst.
$56,000 $25,000

Budget Year
2014 2014

Owner/ Tenants
Owner Owner Tenants Improvements (CommonArea) Tenants Improvements (CommonArea)

$36,000

2015

FireAlarm SystemUpgrade Exterior Renish Roof

$60,000

2015

$225,000 $150,000

2015 2020

Owner Owner

ScheduleforLeaseImprovements The City proposes to oer a turnkey solu on. The City is also willing to take the risk of comple ng these improvements, subject to nal design and cos ng. The City will fund the tenant improvements in the lower level lobby, main oor lobby and cost share the boardroom/councilchambers. Adetailedschedulewillbedevelopedinconjunc onwiththeRDCK.Theintentwillbetohave allspacesconstructedandreadytomoveintoat meofoccupa on. RDCK sta could do a phased move departments or individuals can move on their own schedule while maintaining network/telephone access just as if they were all in the same building.

LeaseClausesAppendix#7

28

Opera onsandMaintenance(O&M) The 2012/13 O&M costs were reported at $6.46 per 2 per annum. With the coloca on of the RDCK and reduced costs as a result of energy savings projects, it is es mated that the O&M costs withRDCKtenancywillbeatapproximately$6.00per 2perannum. 310 Ward Street has always been professionally managed with a robust, ongoing maintenance program. A building assessment was completed in 2012 , which iden ed the building as being solid. O&M costs are comprehensive and cover all aspects of the building opera ons and maintenancewithnohiddencosts. The RDCK will not be responsible for the building shell, which includes: roof, exterior, windows, elevator,stairwells,parkingarea.(SeeAppendix7LeaseClausesforBuildingShellDeni on.) There have been a number of recent upgrades to the building, which will benet all tenants includingtheRDCK.RDCKstawillnotberesponsibleformanagingabuildingincludingcontractors (custodial, maintenance etc.), paying bills, building security or health and safety, which is a signicantstasavings.

OPERATIONSAND MAINTENANCE
Cleaning Security RoadsandGrounds MaintenanceAndRepairs LifeandSafety U li es CallCentre VansandFleet Administra onFee(SharedServicesBC)

Actual
(April1,2012March31,2013) 69,221.77 9,186.70 31,661.96 68,089.85 5,626.60 110,033.32 12,808.15 7,010.56 39,204.86

Projected (RDCKOccupancy)
87,500 9,200 31,600 68,000 5,600 70,000 12,800 7,000 36,500

TotalOccupancyCosts TotalOceSpace O&Mper 2

352,843.77 55,000 2 $6.46/ 2

328,200 55,000 2 $6.00/ 2

LeaseClausesAppendix#7

29

City of Nelson Collabora ve Training Opportuni es

SAFETY H2SAwareness RespiratorProtec on PPE,Clothing&RespiratoryProtec on HearingConserva onTraining PandemicInuenza&ColdStress Flagging BloodBornePathogens RiskAssessment RiskManagement DrugProduc on&MethLabs InjuryPreven on ErgonomicsTraining Harassment/Bullying SafetyaroundmobileEquip ChlorineHandling PropaneHandling OH&SPart1 OHSPart2 OHSPart3 JointOHSWorkshop JointHealth&Safety KelbertSafetyTraining IncidentInves ga ons AED CPR ConnedSpaceEntry HighAngleAwareness&Rescue FirstAid(Basictolevel3rstResponder) WHMIS GasDetec on GasDetec oninconnedspaces ConnedSpaceEntry TRAINING PROVIDER ValhallaSafety ValhallaSafety McMullen McMullen McMullen Ankors Employer'sAdvisor MIA NPD LakesidePhysio BCFedLabour HR McMullen BCWWA CndPropAssoc BCFedLabour BCFedLabour BCFedLabour Employer'sAdvisor McMullen Kelbert BCFedLabour NelsonFire&Rescue NelsonFire&Rescue NelsonFire&Rescue NelsonFire&Rescue NelsonFire&Rescue McMullen/Selkirk Draeger&TreenSafety SICA/Selkirk/McMullen McMullen/SICA

City of Nelson Collabora ve Training Opportuni es

MISCELLANEOUS AllenBlockWallinstaller SnowFighter ExcelTraining MSWord Supervisor&LeadershipSkills ClimateResiliencyWorkshop Communica onWorkshops Communica onWorkshops Mo va onalSpeaker SmartDriverTraining Conduc ngPerformanceReviews PoolOperator/PoolSafety Transporta onofDangerousGoods Organiza onalEec veness Manager'sShi EQUIPMENT LoaderBackhoe HydraulicExcavatorOperator DumpTruck RSTPortableMainlineSystem ChainsawOperator Chainsaw,powersawsafety&maint AirBrakes AirbrakeRepair&Endorsement SlackAdjuster Excava onSafety Excava onTraining TRAINING PROVIDER AllanBlock InHouse CommunityFutures/Selkirk CommunityFutures/Selkirk BCWWA CBT TMiller&Assoc JanEnns GaryAnaka ecoENERGY CarlaMarshall&Assoc InteriorHealth McMullen/Selkirik/Danatec/Valhalla Bock&Associates Bock&Associates TRAINING PROVIDER OperatorsTrainingSchool OperatorsTrainingSchool OperatorsTrainingSchool Vimar SafetyCouncil DebriResources MountainTransportIns tute Selkirk BCWWA McMullen

Lease Clauses Poten ally Applicable to RDCK as Tenant/Owner

BASE BUILDING SHELL
BaseBuildingShellmeansthecomponentsincludedinthe310WardStreetBuilding,whichareasfollows: 1. Founda onandstructurereec ngstandardspeciedloadsforanoce(openplan)occupancy. 2. Exteriorwallsincludingtheinsula on,airbarrierandcladdingsystemandtheroofnishing. 3. Interior structural walls, party walls, demising walls and par ons around service rooms outside the Premises and other tenant areas (including but not limited to electrical, telecommunica ons, janitor, mechanical rooms and public washrooms). All such walls are to be constructed from oor to underside of oor or roof structure above, and shall be drywall on metal o wood stud with insula on installed between the studs in accordance with the Building Code in eect at the me of construc on.Drywallistobetaped,lledandsandedreadytopaint. 4. Ver calcircula on,includingstairs,emergencystairs,escalatorsandelevators. 5. Finishes to the walls of entry and elevator lobbies, stairwells, party walls, demising walls, columns, and service room outside thePremisesorothertenantareas(includingbutnotlimitedtoelectrical,telecommunica ons,janitor,mechanicalroomsand public washrooms). This excludes paint nish to drywall and similar surfaces of exposed Base Building Shell walls within the Premises. 6. Floors in thepremises to besmooth troweled concrete oor slab prepared to receive nished oor coverings. Floor coverings providedinCommonAreasincludingbutnotlimitedtowashrooms,hallwaysandentrancelobbies. 7. Standardligh ngceilingsandceiling lesinlobbiesandotherdesignatednonrentableareasandthePremises. 8. Fixtures, ngs and equipment for Common Area washrooms, main Building directory, and Common Area and Parking Area signage 9. HVAC servicesand control systems appropriate forclimate of the loca on of the Building, with sucient capacity to meet the opera onal and performance standards specied in this Lease. HVAC diusers to be standard commercial grade adapted to accommodate the Tenants ini al layout and installed in Tbar grid complete with necessary duc ng and the capability to adapt to the Tenants requirements. Direct Digital Controls to provide a minimum of one zone per 2,000 square feet in those caseswherethePremisesaregreaterthan5,000squarefeet. 10. Electrical service including an electrical panel(s) on each oor capable of providing 50 wa s/m2, plus 120V electrical duplex outletsinstalledintheperimeterwallsofthePremisesataminimumspacingofone(1)outleteveryten(10)linealfeet. 11. Telephone services room provided to designated service room on each oor. Three (3) 4 access ducts to be provided between the telephone service room and each oor for telephone lines and/or data cable access to the oce areas of each oor. 12. Fire protec on system(s), except portable re ex nguishers, as required by the applicable codes, bylaws and regula ons for openoceoccupancy. 13. Plumbing and sanitary facili es as required by the Building Code and other applicable regula ons as well as services for the ecientandeec veopera onandmaintenanceoftheBuilding. 14. Ligh ng provided to entrance and elevator lobbies, stairwells, and service rooms, including janitor, electrical, mechanical and telecommunica onsroomsandwashrooms. 15. Emergencyligh ngsystemsandemergencyexitsignsforpenplanoceoccupancy. 16. Buildingexteriorkeyedlockingsystematmainentrypoints. 17. Building access and compliance with al other relevant code, bylaws and regula on provisions to accommodate persons with disabili es. 18. Sitedevelopment,landscapingandparkingcompletewithligh ng. 19. ReceptaclesinParkingAreasforpluginblockheatersinseverclimates.

OPERATING COST DEFINITION

Opera ng Costs means any and all direct or indirect, substan ated costs, expenses, fees, rentals, disbursements and outlays incurred by or on behalf of the Landlord on an accrual basis (or on a cash basis to the extent that the Landlord determines is reasonable) in connec on with the opera on, maintenance, repair, replacement, opera on, administra on, supervision and management of the Land and the Building, including as itemized in column (B) of Schedule C and the cost of services provided by the Landlord but paid for by the Tenant as itemized in column (C) of Schedule C, and which Opera ng Costs may include, without duplica onandonlyifapplicableandappropriate,thefollowing: a. Theamountpaid(includingwagesandstatutoryfringebenets)totheemployeesand/orcontractorsdirectlyemployedinthe opera on,maintenanceandrepairoftheLandandtheBuilding(excludingocers,clerical,secretarial,andaccoun ngstaof theLandlord)whichmaybereasonablyallocatedtopermi edOpera ngCosts; b. HVACmaintenanceandelevatormaintenancecosts; c. Waterandsewercharges d. Electricalpowerchargesnototherwisechargeabletotenants,saveandexceptforpowerfactorsurcharges e. Fuelforhea ng,coolingandhotwater f. Snowandgarbageremoval

g. MaintenanceoftheCommonAreas; h. Sweeping,cleaning,andwashingoftheParkingAreaandlinepain ngoftheParkingArea,nottoincludeanymajorsurfaceor structuralrepair; i. j. Cleaningandjanitorialexpensesincludingwindowcleaning,washroomcleaningandcleaningsupplies; Costs incurred by the Landlord for supplies and materials used by its employees and/or contractors in connec on with the maintenanceoftheinterioroftheBuildingandtheCommonArea;

k. Lightxturemaintenance(includingballast),uorescenttubeandlightbulbreplacement l. Insurancerequiredtobeplaced,maintainedandpaidforbytheLandlord;

m. Costs of repairs, altera ons and replacements to the Building (including those required to comply with applicable laws or the requirements of the Landlords insurers which become eec ve or are imposed a er substan al comple on of the original construc on of the relevant structure) to the extent reasonably allocated by the Landlord to any scal period and to the extentsuchcostsareopera ngexpenses(asdeterminedinaccordancewithgenerallyacceptedaccoun ngprac ces);andthe amor zed or depreciated cost of any repairs, altera ons or replacements to the extent that such costs are capital costs (as determined in accordance with generally accepted accoun ng prac ces), provided that the Tenant has rst approved in wri ng such costs and agreed with the amor za on period and rate (such approval not to be unreasonably withheld or delayed); n. The amor za on or deprecia on (excluding the amor za on or deprecia on on the costs of original components of the electrical, mechanical and other systems installed as part of the original construc on of the Building) of the costs of machinery,equipment,facili es,furniture,furnishings,systemandproperty(inthisparagraphcalledmachinery)installedin or used in connec on with the Building(except to the extent that thecosts arecharged fully in the scal period inwhich they are incurred) and interest on the unamor zed balance such costs, calculated monthly, at an annual rate equal to one percent (1%)abovetheprimerateineectontherstdayofeachscalyear: a. Ifaprincipalpurposeofsuchmachineryistoconserveenergy,reducethecostofotheritemsincludedinOpera ng CostorcomplywithapplicablelawsorrequirementsoftheLandlordsinsurerswhichbecomeeec veorareim poseda ersubstan alcomple onoftheBuildingorsuchmachineryisusedfornormalmaintenanceoftheBuilding, or b. If,asincaseoftheelectrical,mechanicalandothersystems,suchmachinerybyitsnaturerequiresperiodicorsub stan alreplacement;

OPERATING COST DEFINITION cont.

Which costs are in the case of each item of machinery to be calculated on a straight line basis over its useful life of FIFTEEN (15) yearswhicheverislesser;and o. Amanagementfeeinanamountequaltotwelveandahalfpercent(12.5%)ofOpera ngCosts, p. Andshallexcludecostsfor: q. ParkingAreamaintenance,surfaceorstructuralrepairotherthanthatpermi edin(h)above; r. Reroongwork,plateglassreplacementandstructuralrepairstotheBuilding s. Correc nganyrepairscoveredbywarranty; t. UpgradinganyitemoftheBuildingbothexteriorandinterior(otherthanthatapprovedin(m)above; u. Itemswhichareforthesolebenetofonepar cularrentableareaorgroupofoccupants,otherthantheTenant; v. Repairs, altera ons or improvements made by the Tenant to the Premises or the Tenant Improvements or by the Landlord or othertenantstoanyothertenantareasortenantimprovementsontheLand; w. Penal esandinterestassessedonlateordecientpaymentsbytheLandlord; x. Repair or replacement of any item or any other costs incurred as a result of the negligence of the Landlord or its employees, customers,agentsorinvitees; y. Any sales tax, goods and services tax, value added tax or any similar tax (Sales Tax) paid or payable by the Landlord on the purchase of goods and services included in opera ng costs which may be available to and claimed by the Landlord as a credit indeterminingtheLandlordsnettaxliabilityorrefundonaccountofSalesTaxbutonlytotheextenttheSalesTaxisincluded intheopera ngcosts; z. Any cost or expense which the Landlord is reimbursed by any person (other than tenants of the Building paying their respec ve shares of Opera ng Costs) including (1) the cost of work or services performed for any tenant (including the Tenant) at such tenants cost; (2) any cost which the Landlord is reimbursed by insurance; (3) any cost which the Landlord is reimbursed by a warranty or guarantee from any supplier, manufacturer or other person; (4) increased insurance costs a ributabletoorTaxesleviedspecicallyagainstanyrentablepremisesotherthanthePremisesintheBuilding;(5)thecostto repairdamagecausedbyortorec fyadefaultofanyothertenantofthebuilding; aa. The cost of work or services performed for any tenant of the Building to a materially greater extent or in a materially more favorablemannerthanfurnishedtotheTenantunderthisLease; bb. Any fee, cost or commission incurred to procure or a emp ng to procure other tenants including brokerage commissions, space planners fees, nders fees, lawyers fees, lease takeover costs, adver sing, marke ng ad promo on costs, entertainment costs and travel expenses, and the cost of tenant improvements or renova on work for tenants or removing tenantimprovements; cc. The wages of any employees of the Landlord (except any who devote substan ally all of their me to the opera on of the Building), the Landlords general overhead a ributable to the ac vi es of the Landlords ocers and execu ves, including their remunera on, and all of the Landlords costs which are not specically costs of opera ng the Land or the Building (including, without limita on, accoun ng and legal ma ers, costs of defending any lawsuits with any mortgagee, costs of selling, syndica ng, nancing, mortgaging or hypotheca ng the Land and the Building and costs of any disputes between the LandlordanditsemployeesorbetweentheLandlordandanymanagersoftheBuilding; dd. Lawyers fees, accoun ng fees and expenditures incurred in connec on with nego a ons, disputes and claims of other tenantsoroccupantsoftheLandorwithotherthirdpar es; ee. Anycostofacquiringsculptures,pain ngsandotherobjectsofart.

OPERATING COST SCHEDULE (SCHEDULE C)

(A) ITEM CLEANING Common Area JanitorialServiceandSupplies WindowCleaningInterior WindowCleaningExterior CLEANING Premises JanitorialServiceandSupplies WindowCleaningInterior WindowCleaningExterior GROUNDS MaintenanceofCommonArea SnowRemoval Redec.andRefurb.ofCommonArea HVAC MinorHVACRepairs ELEVATOR MinorElevatorRepairs ELECTRICAL LampandTubeReplacementPremises LampandTubeReplacementCommon NONENERGY UTILITIES GarbageRemoval WaterandSewage RecyclingProgram FUELS Hea ngandCoolingPremises Hea ngandCoolingCommon ELECTRICITY ElectricityPremises ElectricityCommon PARKING ParkingRent INSURANCE Fire&Ext.CoveragePerilsP.L.andP.D. TenantImprovementsandCha els TENANT IMPROVEMENTS TenantImprovements(Appendix75)) MaintenanceofTenantImprovements SECURITY SYSTEMS BuildingEquipment&Monitoring PremisesEquipment&Monitoring FIRE & SAFETY Building&CommonArea Premises X (B) ToBeProvidedbyLandlord,Cost IncludedinAnnualBaseRent (C) ToBeProvidedbyLandlord, CostBornebyTenant X X X X X X X X X X X X X X X X X X X X X X X X X X X X (D) ToBeProvidedbyTenant, CostBornebyTenant

LANDLORDS SERVICES
The Landlord shall maintain the Building at those standards specied in the current Workers Compensa on Board Occupa onal Health and Safety Regula ons and all amendments thereto and all subsequent successor regula ons and shall provide for those Landlord'sservicessetoutinScheduleCinaccordancewiththetermsthereofandshallprovideandpayforthefurtherLandlords servicessetoutbelow: Electrical,Mechanical&PlumbingInstalla ons The provision of all u li es and separate male and female washrooms appropriate to the Premises and its use and the regularandpropermaintenanceofallelectrical(includinglampxtureballasts),mechanicalandplumbinginstalla onsin theBuildingnecessaryfortheiradequateopera on.

HVACandLigh ngSystems The provision and maintenance of indoor environmental and ligh ng condi ons in accordance with the current Workers Compensa onBoardOccupa onalHealthandSafetyRegula onandinrespectofthe310Buildingonlywiththefollowing minimumindoorenvironmentalcondi onsforoccupiedoceareas: The outdoor air intake system and indoor air quality will meet ASHRAE Standard 621989 Ven la on for AcceptableIndoorAirQuality. The HVAC System is to maintain indoor air temperature to a level that meets the ASHRAE Standard 551992 ThermalEnvironmentalCondi onsforHumanOccupancy.

The provisionof cleaningand maintenance of all ligh ngxtures and installa on of suchnew tubes,ballasts and bulbs as mayberequired.

Hot&ColdWater TheprovisionofanadequatehotandcoldwatersupplytotheBuilding.

Cleaning&Supplies The regular and eec ve cleaning of the exterior of the Building and its windows, the Common Areas and Parking Areas togetherwiththemaintenanceofproperandadequatesuppliesforpublicwashrooms,plustheJanitorialServices.

Redecora on&Refurbishment Themaintenanceofaregularprogramofredecora onandrefurbishmentoftheCommonAreas.

RefuseDisposal Thepropersanitarystorageandweekly/dailydisposalofallrefuseandrecyclables.

Elevator The provision and maintenance of a con nuous passenger elevator service, with appropriate freight and stretcher facili esinthe310Building

EmergencyFacili es The regular and proper maintenance and tes ng of all emergency installa ons on the Land, including the maintenance of reex nguishers,clearexitcorridorsandstairs,closureofredoorsandtheins tu onofregularemergencydrills.

Security TheprovisionandmaintenanceofsuitablesecurityfortheBuilding.

MaintainGrounds,CompoundsandParkingAreas The regular and proper maintenance of landscaping, outside furniture and paved surfaces of the Land including the removal of snow from walks, driveways and Parking Areas, and the eec ve control of the use of the designated Parking Areas.Whereparkingisprovided,theLandlordshallensureadequateligh ngisprovidedforthesafetyandsecurityofall users.

TENANT IMPROVEMENTS
Tenant Improvements means all improvements, xtures, installa on, altera ons and addi ons from me to me made, erected or installed to or in the Premises, in addi on to or beyond the Base Building Shell, including all par ons however axed, millwork,internalstairways,doors,hardware,lightxtures,carpe ngandotherappliedoornishesandHVACandotherbuilding services not forming part of the Base Building Shell to bedoneby and at the cost of either of the par es hereto,but not including tenanttradexturesoranyfurniture,equipmentorotherpersonalpropertyoftheTenantoritssubtenantsorlicensees. AllTenantImprovementsinoruponthePremisesshallimmediatelyuponaxa onformpartoftheBuildingprovidedthatduring the Term the Tenant may modify or replace such Tenant Improvements. At the expira on or sooner termina on of the Term the Tenant will surrender any or all of the Tenant Improvements within the Premises. The Tenant will remove all tenant or trade xturesandallfurniture,equipmentandotherpersonalpropertyoftheTenantanditssubtenantsandlicenseswhichshallremain atall mesthepropertyoftheTenantanditssubtenantsandlicensees. The Tenant shall be permi ed, subject to the Landlords approval of plans and specica ons (which approval the Landlord agrees nottounreasonablywithholdordelayingiving)toperformthefollowingwork: A. RenovatethePremisesonthelower,2ndand3rdoorsasrequiredtomeettheTenantsneeds. ExampleTenantImprovementAmor za onClause: The Tenant will contract with the consultants and contractors to complete the renova on project and the Landlord will pay the Tenant for the total cost of the renova on and all legi mate nancing fees incurred by the Landlord, up to a maximum of $400,000. These costs shall then be repaid to the Landlord by the Tenant in addi on to Rent by the way of monthly payments amor zed over the ini al Term at an interest rate of MFABC Leasing Rate plus 1% per annum and shall be repaid to the Landlord monthly in advance, commencing with a rst payment on May 1, 2008. For example, if the total costs to be nanced are determined to be $200,000 and the MFABC Leasing Rate was 3.75%, the monthly payment resul ng would be $3,736.59 each month for 60 months ending with the April 2013 payment.

DISPUTE AS TO COST
IftheLicenceedisputestheamountofanymoniestobepaidbytheLicenceetotheCitypursuanttothislicence,thecer cateof a licenced and qualied accountant appointed by the City and agreed to by the Licencee, to determine such amount will be conclusiveandbindingontheCityandLicencee.Thecostofobtainingsuchcer catewillbefortheaccountoftheLicenceeifthe amount of money to be paid by the Licencee, as established in the cer cate, is not more than 5% less than the amount claimed bytheCity.

DISPUTE RESOLUTION
1. IfanydisputearisesunderthisAgreement,thepar eswillmakeallreasonableeortstoresolvethedisputewithin60daysof thedisputearising(orwithinsuchother meperiodagreedbythepar es)and,subjecttoapplicablelaws,providecandidand melydisclosuretoeachotherofallrelevantfacts,informa onanddocumentstofacilitatethoseeorts. 2. SubjecttoSec on4,ifadisputeunderthisAgreementcannotberesolvedunderSec on1,weoryoumayreferthedisputeto arbitra onconductedbyasolearbitratorappointedpursuanttotheCommercialArbitra onAct. 3. Thecostofthearbitra onreferredtoinSec on2willbesharedequallybythepar esandthearbitra onwillbegovernedby thelawsoftheProvinceofBri shColumbia. 4. A dispute under this Agreement in respect of a ma er within our sole discre on cannot, unless we agree, be referred to arbitra onassetoutinSec on2.