Vancouver Organizing Committee for the Olympic and Paralympic Winter

Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games Business Plan and Games Budget May 2007 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 2 of 196 TABLE OF CONTENTS 1. INTRODUCTION...............................................................................................................7 1.1 Message from the Chief Executive Officer ....................................................................7 1.2 About VANOC ...............................................................................................................9 1.2.1 VANOC Board of Directors....................................................................................9 1.2.2 VANOC Executive Team .....................................................................................10 1.3 Bid History ...................................................................................................................10 1.4 Quick Facts about the Vancouver 2010 Olympic and Paralympic Winter Games ......11 1.5 VANOC Business Plan and Budget – Executive Summary ........................................11 1.5.1 Overview .............................................................................................................11 1.5.2 Development of the Business Plan......................................................................13 1.5.3 Vancouver 2010 Winter Games Operating Budget .............................................14 1.5.4 Vancouver 2010 Winter Games Venue Development Budget ............................16 1.5.5 Executive Summary Conclusion..........................................................................17 2. BACKGROUND ..............................................................................................................18 2.1 Building of the Business Plan......................................................................................18 2.1.1 Setting the Strategic Direction .............................................................................19 2.1.2 Determined Function Scope ................................................................................19 2.1.3 Completed Research, Including Previous Games Experience............................19 2.1.4 Writing and Updating Function Business Plans...................................................20 2.1.5 Cross-Function Reviews and Validations ............................................................20 2.1.6 Built Detailed Budgeting Models and Workforce Plan .........................................21 2.1.7 Financial and Workforce Due Diligence Reviews Completed .............................21 2.1.8 Executive Team Workshops – Balancing Resources and Budgets across the Functions and Setting the VANOC Business Plan Framework ...........................22 2.1.9 Board of Directors and IOC Review Sessions Completed ..................................22 2.2 Future Business Plans ................................................................................................22 2.3 The VANOC Environment ...........................................................................................23 2.4 Pre-existing Contracts and Commitments...................................................................23 2.4.1 Multiparty Agreement (MPA) ...............................................................................24 2.4.2 Host City Contract (HCC) ....................................................................................24 2.4.3 Marketing Plan Agreement (MPA2).....................................................................24 2.4.4 Joint Marketing Plan Agreement (JMPA) ............................................................24 2.4.5 Venue Agreements..............................................................................................25 2.4.6 Shared Legacy Agreement..................................................................................25 2.4.7 Canadian Paralympic Committee (CPC) Joint Marketing Agreement .................25 2.5 Other Olympic and Paralympic Winter Games............................................................25 2.6 Core Assumptions .......................................................................................................26 2.6.1 Inflation, Cost Escalation and As-Spent Dollars ..................................................26 2.6.2 Foreign Currency.................................................................................................26 2.6.3 Taxes...................................................................................................................26 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 3 of 196 2.6.4 Completeness .....................................................................................................27 2.6.5 Value in Kind (VIK) ..............................................................................................28 3. RISKS .............................................................................................................................28 4. VANOC APPROACH ......................................................................................................30 4.1 VANOC Vision.............................................................................................................30 4.2 VANOC Mission ..........................................................................................................30 4.3 Values and Guiding Principles ....................................................................................30 4.4 VANOC Strategy .........................................................................................................32 4.5 Project and Contingency Management .......................................................................33 4.6 VANOC Organizational Structure................................................................................34 5. LEGACIES OF THE 2010 WINTER GAMES ..................................................................34 5.1 Venue Legacies...........................................................................................................35 5.2 Sport Legacies ............................................................................................................35 5.3 Community Legacies...................................................................................................36 5.4 Economic Legacies .....................................................................................................36 6. SCHEDULE.....................................................................................................................37 6.1 Phases of the Games..................................................................................................37 6.2 Master Schedule .........................................................................................................39 6.3 Games Time Planning Roadmap ................................................................................39 6.4 Key Dates of the Games in 2010 ................................................................................39 7. VANOC BUDGET ...........................................................................................................40 7.1 Revenue ......................................................................................................................40 7.2 Expenses.....................................................................................................................43 7.3 Revenue, Marketing and Communications .................................................................43 7.4 Sport, Paralympic Games and Venue Management ...................................................47 7.5 Service Operations and Ceremonies ..........................................................................51 7.6 Technology and Systems ............................................................................................57 7.7 Human Resources, Sustainability and International Client Services...........................60 7.8 Finance, Legal and CEO’s Office ................................................................................63 7.9 Project Contingency – Games Operations ..................................................................66 7.10 Paralympic Games ......................................................................................................67 8. VENUE DEVELOPMENT (CONSTRUCTION) BUDGET ...............................................68 9. GAMES OPERATIONS CONTINGENCY MANAGEMENT ............................................71 9.1 Cash flows...................................................................................................................71 10. BUDGET SCHEDULES ..................................................................................................73 11. VANOC ORGANIZATIONAL STRUCTURE (CHART)....................................................89 12. APPENDIX 1: MARKETING AND SPONSORSHIP PLAN .............................................93 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 4 of 196 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. APPENDIX 2: PROJECT CONTROL AND DEFICIT AVOIDANCE PLAN....................101 APPENDIX 3: RISK MANAGEMENT PLAN .................................................................111 APPENDIX 4: PROCUREMENT PLAN ........................................................................115 APPENDIX 5: HUMAN RESOURCES PLAN................................................................121 APPENDIX 6: THE WORKING ENVIRONMENT..........................................................131 APPENDIX 7: VENUE AGREEMENT PLAN ................................................................137 APPENDIX 8: GAMES SECURITY – CONCEPT, PARTNERS AND INTEGRATION..139 APPENDIX 9: CULTURAL PLAN..................................................................................143 APPENDIX 10: HEALTH SERVICES PLAN .................................................................149 APPENDIX 11: COMMUNICATIONS PLAN .................................................................157 APPENDIX 12: VANOC SUSTAINABILITY POLICY ....................................................163 APPENDIX 13: OFFICIAL LANGUAGES .....................................................................169 APPENDIX 14: EVALUATION MECHANISMS .............................................................175 APPENDIX 15: LEGACIES OF THE 2010 WINTER GAMES.......................................181 APPENDIX 16: VANCOUVER 2010 BUSINESS PLAN – GLOSSARY OF TERMS AND ACRONYMS .................................................................................................................193 In the event of any discrepancy between the English and French version of this document, the English version shall prevail. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 5 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 6 of 196 1. INTRODUCTION 1.1 Message from the Chief Executive Officer Organizing an event that will attract thousands of athletes from more than 80 nations, 10,000 media members and a worldwide television audience of some three billion is a monumental task. For more than 10 years, the venue delivery and staging plans for the 2010 Olympic and Paralympic Winter Games have been taking shape. In fact, the dreams of hosting the Games on Canada’s West Coast were born back in the early 1960s. The vision of those early sport and recreation pioneers led to the development of the Whistler ski area – now one of North America’s top winter sport destinations. For decades, bringing the Winter Games to Canada’s West Coast has been supported by all levels of government. As the Flame is lit on February 12, 2010, it will represent the culmination of 50 years of dreaming and planning inspired by Canada’s passion for sport, culture and sustainability. Since the beginning, in 1996, of Vancouver and Whistler’s venture into the Canadian Olympic Committee’s domestic competition to determine Canada’s applicant for the 2010 Winter Games, one vision has been consistently clear: the Games must be about creating benefits and legacies for sport, for our host communities, the host province, our country and the global Olympic and Paralympic movements. It was this clear vision combined with a thorough bid development process that resulted in Vancouver being named Host City for the 2010 Winter Games on July 2, 2003. Our bid was a detailed plan based on the best information available in 2002. With any project that takes seven years to deliver, changes are inevitable. Each day, new information becomes available. We continue to assess and analyze, find innovative ideas and make informed decisions. Our entire team is focused on our mission to touch the soul of this nation and inspire the world by staging outstanding Olympic and Paralympic Games with sustainable legacies. And we keep a close eye on the bottom line – to ensure we are making prudent decisions respecting the financial resources available to us. This applies to both the construction of the 2010 Winter Games venues, funded equally by the Governments of Canada and British Columbia, and to the cost of planning and staging the Games that will be delivered from monies secured from the private sector. The issue of contingency management is addressed in several parts of this plan. It is of crucial importance to us and to our partners. Our goal is to first ensure that we can host an outstanding Games within our approved budget and then to take whatever measures we can to maximize the financial legacy arising from the Games. Simply put, we will not spend funds we do not have. This budget will remain balanced. VANOC benefits from a strong working relationship with the International Olympic Committee which is in a unique position to provide counsel and oversight having supervised every Games ever staged. The IOC has provided considerable assistance to VANOC through a formal Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 7 of 196 transfer of knowledge program and through countless meetings with various members of our team. The IOC formally monitors VANOC through its Coordination Commission to ensure deadlines are met and the best possible planning is taking place en route to the Games. The Commission is comprised of senior IOC Members and expert advisors who offer assistance and guidance on all aspects of Games management. This strengthens our project and helps mitigate risks typically associated with a project like ours. This Business Plan is a living, pliable document. It contains our current assumptions and estimates, based on our best assessment of Games requirements, risks and opportunities. Its structure reflects the requirements of the Multiparty Agreement. It is robust and flexible. We have combined the lessons from previous Games with the expertise from our partners, the tireless efforts and contributions from Board members and committees of VANOC, and perhaps our best resource – our dedicated workforce – to create what we believe is a solid, thoroughly researched and validated program. This plan will guide our decisions as we approach the staging of the 2010 Winter Games in a fiscally disciplined way leaving benefits and legacies that will last long after the Flame is extinguished. With fewer than three years to go until the Games, we are certain there will be changes and adjustments – likely many of them – all aimed at producing the best experience for all Games participants. The plan is at, least in part, designed to provide our government partners, stakeholders and the Canadian public with a clear sense of the work that is well underway with a focus on the disciplined financial framework we must work within and respect. While the document is of considerable length, it does not, and cannot, possibly address all of the activity and planning that is already completed or is still in front of us. The truth is VANOC’s planning will continue with added layers of detail and refinement right down to Games time. There is an extensive body of work behind this plan – detailed financial estimates, function plans and schedules. These will continue to evolve as the project advances. The plan frames the road to 2010 for VANOC and is a key tool for helping us get there. At Vancouver 2010, we are one team with clear goals – to stage outstanding Games and to leave lasting legacies. Games that will lift Canadians and inspire the world! By working together, the dreams that have spanned nearly five decades will come alive in February 2010. Respectfully, John A. Furlong Chief Executive Officer Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games May 8, 2007 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 8 of 196 1.2 About VANOC The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) was established on September 30, 2003 as a not-for-profit private company under the Canada Corporations Act. The Committee’s mandate is to support and promote the development of sport in Canada by planning, organizing, financing and staging the 2010 Olympic and Paralympic Winter Games. The Vancouver 2010 mission is to touch the soul of the nation and inspire the world by creating and delivering an extraordinary Olympic and Paralympic experience with lasting legacies. The vision is to build a stronger Canada whose spirit is raised by its passion for sport, culture and sustainability. 1.2.1 VANOC Board of Directors VANOC is governed by a 20-member Board of Directors nominated by the Government of Canada, the Province of British Columbia, the City of Vancouver, the Resort Municipality of Whistler, the Canadian Olympic Committee, the Canadian Paralympic Committee and local First Nations. Member Peter Brown Michael Chambers Charmaine Crooks Ken Dobell Barrett Fisher Jacques Gauthier Jim Godfrey Rusty Goepel Gibby Jacob Patrick Jarvis Jeff Mooney Michael Phelps Jack Poole, Chair Richard Pound Judy Rogers Chris Rudge Becky Scott Walter Sieber Carol Stephenson Richard Turner Nominated by Government of Canada Canadian Olympic Committee Canadian Olympic Committee Province of British Columbia Resort Municipality of Whistler Government of Canada Resort Municipality of Whistler Province of British Columbia Squamish and Lil’wat First Nations Canadian Paralympic Committee City of Vancouver Canadian Olympic Committee VANOC Board Canadian Olympic Committee City of Vancouver Canadian Olympic Committee Canadian Olympic Committee Canadian Olympic Committee Government of Canada Province of British Columbia Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 9 of 196 1.2.2 VANOC Executive Team On May 18, 2006, VANOC announced a number of internal structural changes to create enhanced efficiencies in decision making and add significant venue construction and project management expertise. The changes, originally contemplated to occur following the Torino 2006 Winter Games, were made as part of the normal evolution of a Games Organizing Committee from the planning to the operational phase. By combining departments with operational synergies, including Sport with Technology and Legal with Finance/Administration, the Organizing Committee now reflects a more operational Games-time structure. The seven divisions of VANOC are responsible for 50 Organizing Committee functions. A current VANOC organizational chart is on page 89. John Furlong, Chief Executive Officer Dave Cobb, Executive Vice President, Revenue, Marketing and Communications Dan Doyle, Executive Vice President, Construction David Guscott, Executive Vice President, Corporate Strategy and Government Relations Rex McLennan, Executive Vice President and Chief Financial Officer Cathy Priestner Allinger, Executive Vice President, Sport, Paralympic Games and Venue Management Donna Wilson, Executive Vice President, Human Resources, Sustainability and International Client Services Terry Wright, Executive Vice President, Service Operations and Ceremonies 1.3 Bid History In 1998, the Canadian Olympic Committee selected Vancouver to present Canada’s Bid for the 2010 Winter Games. Over a five-year period, the Vancouver 2010 Bid Corporation developed a Games delivery plan with a vision of creating sustainable legacies for athletes, sport development, host communities and the Olympic and Paralympic movements. The Vancouver 2010 Bid Book was delivered to the International Olympic Committee (IOC) in January 2003. In March 2003, the IOC Evaluation Commission for the 2010 Winter Games visited Vancouver to review its bid plans. The extensive review included presentations on 18 themes including Games financing, marketing, sport venues, culture, transportation and accommodation. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 10 of 196 On July 2, 2003, members of the IOC, at their 115th Session in Prague, selected Vancouver as the Host City of the 2010 Winter Games from a field of three Candidate Cities that included Salzburg, Austria and PyeongChang, South Korea. The Bid Book, available online at vancouver2010.com, was the first Games delivery plan for the 2010 Olympic and Paralympic Winter Games. It formed the foundation for VANOC and its efforts to stage outstanding Games in 2010. 1.4 Quick Facts about the Vancouver 2010 Olympic and Paralympic Winter Games 5,500 Olympic Games athletes and team officials (projected) 1,350 Paralympic Games athletes and team officials (projected) 86 Olympic medal events 58 Paralympic medal events 80+ countries participating in the Olympic Winter Games 40+countries participating in the Paralympic Winter Games 10,000 media representatives 3 billion worldwide television viewers 70 million website viewers 25,000 volunteers Olympic Winter Games – February 12-28, 2010 Paralympic Winter Games – March 12-21, 2010 1.5 VANOC Business Plan and Budget – Executive Summary 1.5.1 Overview The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) is responsible for two key areas relating to the 2010 Winter Games: the construction of Games venues, and the delivery of successful Games on behalf of all Canadians. Since VANOC’s inception on September 30, 2003, this Business Plan represents its second plan that details the Games operating budget and venue development budget. As required under the Multiparty Agreement (see section 2.4.1), VANOC’s first Business Plan was to detail, to the best extent possible, the planning, organizing, financing and staging of the Games. VANOC met this requirement with its first Business Plan, known as Version 1, being approved by the VANOC Board of Directors in July 2005. That plan updated the Vancouver 2010 Bid Book assumptions and reflected the state of planning and expectations at that time. The Version 1 Business Plan included a discussion of future business plans with an indication Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 11 of 196 that Version 2 of the Business Plan would be developed in late 2006 when function managers had been hired, function planning was sufficiently advanced and when the experience of the Torino 2006 Winter Games could be properly incorporated. The first draft of this Version 2 Business Plan was delivered to the VANOC Board of Directors in November 2006. The Games operating budget in the VANOC Version 2 Business Plan is the product of 50 individual function business plans that were developed through an extensive and thorough exercise across the entire organization that took place in 2006. VANOC will develop three versions of its Business Plan and budget over the course of its lifespan. These plans will reflect the stage of organization of the Games and the need to continuously update financial plans and revenue projections. The first Games revenue and expense projections were prepared for Vancouver’s bid and were completed in late 2002. It was a plan deemed very detailed for its time that was subjected to the careful scrutiny of British Columbia’s Auditor General. As directed by the IOC, the plan was prepared in fixed 2002 dollars and presented to the IOC in US Dollars. Version 3 of the VANOC Business Plan and Budget is expected to be completed in fall 2008. It will be based on 18 months of further detailed operational planning and early test event results. Completion of this budget at that time will allow functions to properly react to changes in time for the staging of the Games. Version 3 will essentially be an exercise in validating financial assumptions, ensuring that the Games operating budget is realistic and achievable. By then, operating plans will be well advanced. It will be completed approximately 16 months in advance of the Games and should reflect a high degree of confidence about the costs and revenues associated with the Games. The Multiparty Agreement requires the VANOC Business Plan to include the following elements: a values, vision, mission, goals and objectives statement a financial plan that includes all sources of funding, a complete set of financial projections and cash flow projections a plan for achieving sponsorship revenue and value-in-kind support targets an operating budget and capital budget for each of the Olympic Games and the Paralympic Games a deficit avoidance plan that will include the requirement for the OCOG to immediately implement remedial measures to eliminate a deficit and to establish acceptable levels of risk a risk management plan a plan for acquiring services required by the Games Organizing Committee (OCOG) for identifying how those services will be provided (for example, by the OCOG, third-party sponsorship, volunteer support, one of the Parties, or by other means) a human resources plan regarding paid staff and volunteers, including an employment equity plan; provision for an environmental scan that is to be regularly updated a plan for concluding development and use agreements with facility owners, as required, for the Games Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 12 of 196 a marketing plan a security plan to be developed in consultation with the Government Parties a cultural plan a health plan to be developed in consultation with the Government Parties a communications plan an evaluation mechanism for ongoing assessment of the OCOG’s progress in planning, organizing, financing and staging of the Games an Official Languages plan that will facilitate OCOG’s delivery of bilingual Games The VANOC Business Plan includes all of the above noted elements within the plan and its appendices. 1.5.2 Development of the Business Plan In order to develop the VANOC Business Plan and Budget, each Games department, also known as a Games function, produced a business plan. This work was carried out in spring and summer 2006 and was validated by the VANOC Executive Team and reviewed by the Board of Directors in fall 2006. Each function business plan includes the following: Mission and performance outcomes Roles and responsibilities Contractual obligations Customers (internal and external) Receipt from and delivery of services to other VANOC functions Issues Key planning assumptions Key delivery strategies Key deliverables and schedules A workforce plan The most recent update of the function business plans was completed in November 2006. This information was used to develop the overall Games operating budget and the specific deliverables to be provided by each VANOC function in order to properly stage the Games. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 13 of 196 1.5.3 Vancouver 2010 Winter Games Operating Budget The Games Operating Budget is financed by revenue sources from the private sector. These sources include a portion of the worldwide sale of Games television broadcast rights, international and domestic sponsorships, licensing and merchandising, ticket sales and fundraising. The Games Venue Development budget is made up of equal contributions from the Government of Canada and Province of British Columbia. The current operating budget to stage the 2010 Winter Games is $1,629,269,000. This is net of $197,217,000 in marketing royalty rights from its revenue that will be paid to the International Olympic Committee (IOC), International Paralympic Committee (IPC) and Canadian Olympic Committee (COC). Revenue sources for the Vancouver 2010 Winter Games include the following: IOC Contribution Less – cost of providing Olympic Broadcast Services (OBS) IOC Net contribution Other IOC revenue IOC International Sponsorship Program Domestic Sponsorship Ticketing Licensing & Merchandising Paralympic revenue Other TOTAL REVENUE Less: Marketing rights royalties NET REVENUE $ 579,700,000 (178,000,000) 401,700,000 35,000,000 201,404,000 760,000,000 231,854,000 46,026,000 40,000,000 110,502,000 1,826,486,000 (197,217,000) 1,629,269,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 14 of 196 The budget for Games operating expenditures, by division, is as follows: DIVISION Revenue, Marketing and Communications Sport, Paralympic Games and Venue Management Service Operations and Ceremonies Technology and Systems Human Resources, Sustainability and International Client Services Finance and Legal and CEO Office Project Contingency – Games Operations Total expenditures $ 126,427,000 186,436,000 548,130,000 398,500,000 153,144,000 116,632,000 100,000,000 1,629,269,000 On Feb. 12, 2007, The Vancouver 2010 Countdown Clock, presented by Omega, Official Timekeeper, was unveiled to mark the three-year countdown to the Olympic Games Opening Ceremony on Feb. 12, 2010. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 15 of 196 1.5.4 Vancouver 2010 Winter Games Venue Development Budget The budget for building new venues and renovating existing facilities in order to stage the 2010 Winter Games is $580 million, as outlined in the table below. This is funded equally by the Government of Canada and the Province of British Columbia. Venue construction revenues Canada BC Total Venue construction expenditures Venues constructed by Partners with VANOC $ Contribution UBC Ice Hockey arena (UBC Winter Sports Centre) Richmond Speed Skating Oval Whistler Olympic and Paralympic (Athletes) Village Vancouver Olympic and Paralympic (Athletes) Village Whistler Broadcast and Press Centre Training Venues / Other Grants Venues constructed / upgraded by VANOC Hillcrest Curling Venue Whistler Athlete Centre Whistler Sliding Centre Whistler Nordic Competition Venue Cypress Freestyle and Snowboard Venue Whistler Alpine (Whistler Creekside) Hastings Park Skating Venue (Pacific Coliseum) Other Subtotal Contingency Less: Sponsor VIK Contribution TOTAL $ 290,000,000 290,000,000 580,000,000 38,445,000 63,110,000 37,500,000 30,000,000 3,000,000 7,400,000 38,000,000 16,000,000 104,900,000 119,740,000 15,800,000 27,635,000 23,700,000 6,270,000 531,500,000 55,300,000 (6,800,000) 580,000,000 In keeping with Vancouver 2010 Bid commitments, the goal of VANOC’s venue construction program is to complete the competition sites as early as possible to reduce complexity and maximize athlete training and testing opportunities. On March 15, 2007, VANOC reconfirmed the goal of ensuring that athletes and officials will have early access to the venues when it was Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 16 of 196 announced that venues for 13 of 15 sport disciplines will be made available for training and competition during the 2007/2008 winter season. 1.5.5 Executive Summary Conclusion This Business Plan represents the culmination of more than three years of research and study. It blends the experience of the last two Winter Games – Salt Lake 2002 and Torino 2006 – with the expertise and knowledge of VANOC staff and partner officials. The plan updates the assumptions made by the Vancouver 2010 Bid Corporation and paints a more realistic, current and responsible financial picture of what it will take to stage Games in 2010 that will touch the soul of the nation and inspire the world. As the Games approach, this plan will be revised, tested and refined as new information becomes available. A disciplined approach to budget management and decision making will ensure that the end result will be Games staged within the available financial resources of VANOC and its partners that leave a positive financial legacy. The new UBC Winter Sports Centre takes shape. The venue, along with Vancouver’s General Motors Place, will host ice hockey and ice sledge hockey during the 2010 Winter Games. Photo – April 2007. The Whistler Sliding Centre construction site. The 1,450-metre track will host bobsleigh, luge and skeleton in 2010. Photo – November 2006. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 17 of 196 2. BACKGROUND Every business needs a plan. An entity as complex as an organizing committee for the Olympic and Paralympic Games requires an especially robust plan based on sound strategy and forward thinking. One of the key lessons learned from previous Games organizers is that change is certain and constant. A good plan allows for change. This one does. The VANOC Executive and the Board of Directors require a sound business plan to make decisions, monitor performance and fulfill their core responsibilities. This plan will serve that purpose. It will provide the Board and its committees the context against which to measure activities and understand the progression of planning. With a project-oriented business like the 2010 Winter Games, planning progress is best monitored against the expected Games-time deliverables and milestones along the path. Fiscal year performance provides the Board, management and stakeholders with an appreciation of how resources are being managed yearto-year as milestones are achieved. This plan and business model will provide the Board with its foundation for good decision making. 2.1 Building of the Business Plan This Business Plan represents the second such plan prepared by the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC). The first, known as Version 1, was approved by the VANOC Board of Directors in July 2005. The Board, and especially its Finance Committee and staff, spent many hours reviewing and discussing key elements of the plan. It was, however, a largely top-down exercise that reflected the state of planning at that time. The Version 1 plan included a discussion of future business plans including an indication that Version 2 would be developed in late 2006 when function managers had been hired and function planning was sufficiently advanced. This would be the first “ground up” Business Plan and Budget. This section summarizes the main steps taken to develop and validate the 50 function business plans that were ultimately merged to create the VANOC Version 2 Business Plan. Business planning began in fall 2005 and continued to be a significant priority throughout 2006. Robust business planning processes were designed to provide assurance to the VANOC Board that key assumptions, risks and opportunities were fully investigated, validated and planned for. Accordingly, there was a high level of oversight from the VANOC Finance and Risk Management teams and a fully engaged Executive Team at every step, led by the CEO. The goals of the business planning processes were to have every function build a comprehensive and credible business plan, to test the plans through a series of due diligence review processes and to then integrate the validated plans into the consolidated VANOC Business Plan with a balanced budget that enables VANOC to deliver on its strategic priorities and objectives. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 18 of 196 These goals were achieved. Furthermore, elements of the plan have evolved into effective ongoing management tools such as the Games planning Master Schedule that are vital to delivering extraordinary Olympic and Paralympic Winter Games in 2010. 2.1.1 Setting the Strategic Direction Through a series of workshops and discussions with key stakeholders, the Executive Team developed VANOC’s mission, vision, values, seven strategic objectives and the 2010 desired performance outcomes. VANOC’s strategic objectives were a guide to the team throughout the planning process, especially when priorities were being set. Both the function business plans and this VANOC Business Plan are aligned with, and enable, the achievement of the VANOC Strategic Plan. 2.1.2 Determined Function Scope In fall 2005, workshops were held with each of the function teams to identify and confirm the function’s scope/roles and responsibilities and mission, interdependencies and issues. The workshops resulted in all functions having scope definitions prior to initiating the detailed business planning process. 2.1.3 Completed Research, Including Previous Games Experience Considerable research was undertaken leading up to, and as part of, the Torino 2006 Winter Games and prior to writing the business plans. This research and benchmarking continued throughout the planning processes. The starting point for research was the IOC Olympic Games Knowledge Management System (OGKM) extranet site with benchmark information, reports and presentations from previous Games organizers. The Games functions technical manuals and regular meetings with IOC function counterparts were valuable planning aids. The IOC also offers OGKM workshops and a network of experts with Games experience. More than 20 OGKM workshops have been delivered to VANOC staff teams and partners. Many of the workshops focused on addressing specific business planning issues and challenges. Eighty VANOC employees, along with many partners, experienced the magnitude and complexity of the Torino 2006 Winter Games in person and participated in the OGKM Observer Programs. In addition, 16 VANOC staff members worked directly for the Torino Organizing Committee (TOROC) on secondments for training purposes. The five-day Torino Debrief Session held in Vancouver in July 2006 was also a valuable opportunity to discuss TOROC’s experience – what worked well, the challenges faced, opportunities and recommendations for improvement. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 19 of 196 Another solid source of information is in the VANOC team itself. VANOC has deliberately hired experienced people early. Many members of the VANOC Team (both partners and VANOC employees) have in-depth Games experience and an extensive network of Games contacts, while others have valuable corporate experience, including best practice and market information for exploring new and creative solutions. This combination of skills and experience helped us challenge the status quo and find creative solutions. 2.1.4 Writing and Updating Function Business Plans Using a common function business plan template and a series of facilitated sessions, all VANOC functions drafted their preliminary function business plans by May 31, 2006. These plans include: Mission and performance outcomes Roles and responsibilities Contractual obligations Customers Services delivered to and received from other VANOC functions Issues Key planning assumptions Key delivery strategies Key deliverables and schedules A workforce plan The final update of the function business plans was completed in November 2006 to ensure all function plan information was sufficiently detailed and accurate to be included in the VANOC Business Plan. However, as new information becomes available, each function business plan is subject to further updates and more detail. 2.1.5 Cross-Function Reviews and Validations Once the preliminary function business plans were drafted, the next step was to build a common understanding of the various planning assumptions made across all of VANOC functions. A cross-function review of the draft function business plans was completed. The objectives of the review were to verify interdependencies, cross-function planning assumptions and services, to identify gaps, duplications or inconsistencies, and resolve them. Functions received a summary of the services they were expected to deliver and presented with key planning assumptions that were linked to their function and identified in other plans. Discrepancies and duplications were identified, discussed and reconciled. Services and key Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 20 of 196 assumptions were confirmed and function business plans were updated. This exercise was repeated several times as the budgets changed and plans were modified. Another form of cross-function review was building the VANOC Master Schedule. Individual function schedules were integrated into the VANOC Master Schedule. The schedule addressed identified gaps, duplicates, sequencing and timing issues. 2.1.6 Built Detailed Budgeting Models and Workforce Plan The preliminary budget and workforce plan information was consolidated and reviewed with the Executive Team in May 2006. The Executive Team provided direction and recommended budget targets for each function. The Finance team also provided functions with a set of standard budgeting guidelines. Over the summer 2006, function teams worked with their function business managers and Workforce representatives to develop detailed function budgets and workforce plans that were aligned with their business plan deliverables and services. Budget assumptions and cost parameters were refined; the associated resource requirements (people, goods and services) were quantified and then tested and validated. A detailed budget model was built for each function. 2.1.7 Financial and Workforce Due Diligence Reviews Completed In August 2006, financial review sessions were held with every function. The responsible function and its executive and the finance and planning teams reviewed the function business plan and budget in detail. Planning and budgeting assumptions were challenged with the goal of ensuring that every expense was critical, realistic and consistent across all functions. Gaps, overlaps/redundancies, opportunities, efficiencies and uncertainties were identified and addressed. There were a series of benchmarking exercises. Budgets and workforce plans were compared to previous organizing committee statistics, with a focus on the Torino 2006 and Salt Lake 2002 Games. Two expert advisors with previous organizing committee experience completed a comprehensive review of the function budgets and workforce plans and recommended changes. The finance and workforce teams then met with every function to review and update their workforce plans, budgets and business plan. After the financial and workforce reviews were completed, function leads created an executive summary of their business plan, budget and workforce summaries. These summaries formed the basis of the Executive Team, Board of Directors and VANOC partner presentations. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 21 of 196 2.1.8 Executive Team Workshops – Balancing Resources and Budgets across the Functions and Setting the VANOC Business Plan Framework The Executive Team spent much of September 2006 in intensive business planning workshops to review every function business plan, challenge planning assumptions, explore creative solutions and recommend changes to function plans and budgets. The focus then turned to gaining a deep understanding of the integrated VANOC picture, including the consolidated budget, contingency plans, risk assessments, overall priorities, tradeoffs and opportunities with a final evaluation against expectations set out in VANOC’s strategic plan. The appropriate level of contingency, the risk profile and setting specific budget priorities sparked healthy and open debate. Every alternate scenario was thoroughly discussed. After these sessions, work began to consolidate the information and understanding into a document that would clearly describe all material elements of the VANOC Business Plan. 2.1.9 Board of Directors and IOC Review Sessions Completed The VANOC Board of Directors participated in a two-day business planning review session in mid-October 2006 with a further review in early November. The objective was to build a clear understanding and confidence in the overall business plan and processes by which it was developed. The material risks, issues and opportunities, key deliverables, planning assumptions, challenges, opportunities and risks were all discussed. The consolidated VANOC budget, contingency plan and risk profile were also discussed. The session also provided management with valuable input, insight and direction as to how VANOC can best reach its goal of achieving a balanced budget and finalize the VANOC Business Plan in the first quarter of 2007. In March 2007, VANOC concluded its negotiations with the IOC related to the amount of the IOC revenue contribution and the sharing of costs in a number of areas including Olympic Broadcast Services (OBS). The results of these negotiations are reflected in this Business Plan. 2.2 Future Business Plans With the approval of this Business Plan, VANOC has a new starting point for a series of plan revisions and budget re-allocations that will take place between now and Games time. Looking ahead, VANOC’s business planning and budgeting will be a very dynamic process governed by a rigorous set of checks and balances that ensure planned expenditures at any point in time are always met with secure revenue sources. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 22 of 196 Version 3 of the plan and budget is expected to be completed in fall 2008. It will be based on 18 months of further detailed operational planning and early Test Events. Version 3 will largely be an exercise at further validating our budget assumptions and forecasts, helping to ensure the budget continues to be realistic and achievable. By then, our operating plans will be well advanced. This work will be completed in about 16 months in advance of the Games and will reflect an even higher degree of confidence in final costs and revenues associated with staging the Games. 2.3 The VANOC Environment VANOC operates in a complex, multi-stakeholder environment. Its plans and budgets are subject to extensive oversight by its government partners, the International Olympic Committee, the International Paralympic Committee, International Sport Federations (IFs) and others. There are high expectations from government partners, the public, numerous special interest groups, the media, the sport community and others that the Organizing Committee must live up to. At every stage, VANOC’s actions will be under close scrutiny. With a policy of openness and transparency, VANOC will continue to earn the public’s confidence and trust. Politically, VANOC has the support of all levels of government. However, elections are anticipated between now and 2010 at the federal level, provincially in BC, in Vancouver and Whistler and also in the venue communities of Richmond and West Vancouver. Changes in governments could change the environment VANOC operates within, however VANOC will continue to plan based on the ongoing support of all of its partners as demonstrated to date. Clearly, this support is essential to VANOC’s success in staging the Games. Canada and British Columbia continue to experience robust economic growth with strong investment, low unemployment and intense competition for skilled labour in some sectors. While the very positive business and employment picture is welcome, it does pose challenges in terms of cost pressures. This has been most visible in the construction sector and venue development costs reflect this fact. See further details in Appendix 6: The Working Environment. 2.4 Pre-existing Contracts and Commitments The operations of VANOC are subject to several key agreements and commitments. Some are very fundamental to VANOC’s operations and its obligations. In many cases, these agreements were made during the Bid phase, which have subsequently been assigned to VANOC and drive many of the assumptions in the Organizing Committee’s planning. Key agreements include the following: Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 23 of 196 2.4.1 Multiparty Agreement (MPA) Dated November 2002, parties to the MPA are the Government of Canada, the Province of British Columbia, the Canadian Olympic Committee, the Canadian Paralympic Committee, the City of Vancouver (COV) and the Resort Municipality of Whistler (RMOW). VANOC joined on October 31, 2003. The MPA has three primary objectives: Define, in advance, the parties’ respective roles in VANOC; hence the VANOC structure, Letters Patent and bylaws Secure the commitments of the parties to each other to ensure the success of the Games Define the contributions (financial and non-financial) that each of the Government partners will make to the Games 2.4.2 Host City Contract (HCC) Dated July 2003, parties to the HCC are the COC, IOC and COV. VANOC joined in December 2003. The HCC sets out the relationship and respective rights and obligations of the parties related to organizing and hosting the Games. It includes extensive VANOC obligations that are incorporated into this plan. The HCC also requires that Vancouver host the Paralympic Winter Games and establishes the standards for those Games by a reference to an agreement between the IPC and IOC. 2.4.3 Marketing Plan Agreement (MPA2) Dated April 2005, parties to MPA2 are the IOC and VANOC. MPA2 sets out the comprehensive marketing relationship between VANOC and the IOC and their respective sponsors and licensees, including the grant to VANOC of the right to market the Vancouver 2010 Olympic brand in Canada and the right to retain most of the revenues derived from this marketing effort. MPA2 also details the terms and conditions under which VANOC’s Marketing Plan is to be implemented in Canada and the IOC’s commitments to pay to VANOC a portion of the revenues from the IOC’s international sponsorship program – The Olympic Partner Programme (TOP). 2.4.4 Joint Marketing Plan Agreement (JMPA) Dated June 2003, parties include the COC and COV. VANOC joined the agreement in December 2003. The JMPA creates a simplified and unified marketing structure for Olympic marketing within Canada for the Games. The JMPA includes the compensation structure payable to the COC for granting to VANOC exclusive marketing rights in Canada related to the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 24 of 196 IOC, the Olympic Movement, the COC and the Games for the period January 1, 2005 through December 31, 2012. 2.4.5 Venue Agreements A number of venue agreements were completed during the Bid phase, by the Vancouver 2010 Bid Corporation, and most have since been joined by VANOC. With some additional agreements recently completed, most are now in place. While most elements are covered in these agreements, some have certain points requiring further definition. These agreements are reflected in this Business Plan. 2.4.6 Shared Legacy Agreement Dated November 2002, parties are the Lil’wat and Squamish First Nations, the Government of British Columbia and the Vancouver 2010 Bid Corporation. The agreement sets out shared legacy commitments to First Nations arising from the 2010 Games. They include: commitments of shared ownership of the Whistler Nordic and sliding venues through the Whistler Legacies Society, Olympic housing legacy, contracting opportunities and an Aboriginal youth sports legacy. 2.4.7 Canadian Paralympic Committee (CPC) Joint Marketing Agreement VANOC has entered into a Joint Marketing Agreement with the CPC. Dated January 1, 2005, the agreement addresses marketing issues pertaining to VANOC and the CPC. 2.5 Other Olympic and Paralympic Winter Games The two Olympic and Paralympic Winter Games held this decade provide valuable lessons and learning resources for Vancouver 2010. VANOC has consulted extensively with those involved in the Salt Lake 2002 and Torino 2006 Winter Games in the development of its operational plans and function budgets. The Olympic Games Knowledge Management (OGKM) service also provides the ongoing transfer of knowledge from previous Games. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 25 of 196 2.6 Core Assumptions 2.6.1 Inflation, Cost Escalation and As-Spent Dollars The Vancouver 2010 Winter Games financial plan is built in “as-spent” Canadian Dollars. This means that an item budgeted to cost $1 million in 2009 will in fact cost $1 million and not a figure that is increased due to inflation or cost escalation. This approach differs significantly from that adopted in the Bid phase where the IOC required that all budgets be submitted in fixed 2002 USD. Inflation is assumed to be generally consistent with that of the past several years: an annual change in the CPI index of approximately 2.0 per cent. Higher annual rates of inflation are allowed for in specific expenditure categories where current trends demands. Examples are energy and construction costs. 2.6.2 Foreign Currency This budget is stated in Canadian Dollars (CAD). However, significant revenues of VANOC will be received in United States Dollars (USD) and in Euros (€) and most will be converted to Canadian Dollars to meet what are, for the most part, Canadian Dollar expenditures. VANOC will also have some foreign currency payment obligations. As these amounts are confirmed, VANOC removes the net future foreign exchange risk by securing in advance the rates at which the foreign currency amounts will eventually be converted to Canadian Dollars. This is done through contracts (hedges) with a major bank counterparty and are disclosed in each quarterly reporting of VANOC’s financial results. Where such hedge contracts have yet to be entered into, the prevailing spot foreign exchange rates have been assumed in the budget forecast. VANOC’s foreign exchange risk management strategy is to use hedging to protect our current budget by removing in the order of 90 per cent of the risk of a strengthening Canadian Dollar diminishing the value of future foreign denominated cash flows. In so doing, it will not be necessary in VANOC budgeting to make predictions as to the future exchange rates in converting foreign currency amounts as these rates will be determined in advance. 2.6.3 Taxes As VANOC is a not-for-profit corporation incorporated under Part II of the Canada Corporations Act, it is not subject to Canadian income tax. It is, however, required to withhold Canadian taxes on certain transactions with foreign individuals or companies. VANOC is fully subject to the 7.0 per cent provincial sales tax (PST) required by British Columbia. PST, where it applies, is included in budget estimates. Consistent with practice at past major games, certain assumptions have been made in respect of transactions for which VANOC anticipates that a remission of import duties and PST will be granted. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 26 of 196 VANOC is also subject to Canada’s 6.0 per cent Goods and Services Tax (GST). As a not-forprofit entity, VANOC is not automatically entitled to a full recovery of its input tax credits. A detailed assessment of VANOC’s tax position and development of its tax strategy is underway. Under the terms of the Host City Contract, VANOC may be responsible for foreign or Canadian taxes associated with transactions with members of the Olympic Family, generally the IOC, Olympic Broadcast Services (OBS) or The Olympic Partner Programme (TOP). The Government of Canada, in its budget tabled in March 2007, has proposed: 1) to waive any non-resident withholding tax liability of the IOC and IPC for any payment made after 2005 and before 2011; 2) to amend the Income Tax Act to ensure that non-resident athletes and other non-resident individuals are not taxed as a direct result of their participation in the Games; and 3) to remit all or a portion of the customs duties, excise taxes and GST/HST on certain goods imported into Canada in connection with the Games. 2.6.4 Completeness Building a plan to cover a period of three years into the future in an environment of change is challenging. Even with the significant amount of work done, both during and since the Bid, there are areas where the ability to accurately predict future events is limited. To deliver the most complete estimates possible, VANOC relied on: Research – Each function team has carefully researched the requirements of their particular functions. Research has included reviewing IOC technical manuals, accessing Olympic Games Knowledge Management (OGKM) materials, observation of the Torino Games, attendance at the Torino 2006 debrief sessions in July 2006, meeting with managers experienced at Torino, Salt Lake 2002 and other Games and other sources. Comparison to other Games – Financial results from the Salt Lake 2002 Games have been analyzed. VANOC managers have met on numerous occasions with key staff from both the Salt Lake and Torino 2006 Organizing Committees, including key members of their executive teams. Relationships were established with colleagues in both cities that allowed for a very full and extensive review of their operations and results. Experience and expertise – VANOC staff includes several individuals who have worked on one or more Olympic or other major Games. Most functions have a gamesexperienced leader or have accessed the services of a games-experienced person. This experience has added to their understanding of requirements and possible risks. Contingency – Understanding there will be changes to the plan and budget to reflect new information, changes in underlying assumptions and other factors, a project contingency is included in the budget. The contingency for the Games operating budget is planned to ensure that costs associated with unforeseen events and other challenges can be accommodated. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 27 of 196 2.6.5 Value in Kind (VIK) VIK goods and services are the product of marketing agreements. Sponsors provide to VANOC specified goods and services as partial or complete payment for marketing and other rights that they obtain from VANOC. VIK typically comprises a substantial portion of an organizing committee’s budget. VANOC anticipates VIK to be in excess of $400 million. In budgeting and recording VIK transactions, VANOC follows Canadian Generally Accepted Accounting Principles (GAAP). For the purposes of building this Business Plan, transactions anticipated to be in the form of VIK are priced at estimated levels that would be paid in the marketplace in the absence of a sponsorship agreement. 3. RISKS Any project of the size and complexity of the Olympic and Paralympic Games inherently involves some risk. Throughout the planning process, risks specific to functions have been identified. In many cases, mitigation strategies have also been identified. Foreign exchange risk, for example, is largely removed through a hedging program as described in section 2.6.2. The Risk Management Plan, included as part of this Business Plan, addresses a strategy for dealing with project risk which is one of VANOC management’s most important responsibilities. Many risks were identified in the Bid phase and in VANOC’s early foundation planning phase. The most significant of these risks are identified below and discussed in more detail elsewhere in this Plan. As with all Games organizing committees, VANOC has some exposure to the certain risks in achieving its strategic objectives and mandate. Financial risks: In the context of its Business Plan and Budget, VANOC faces financial risk as revenues and expenditures transition from planned activities, to contractual commitments, to actual results. During the first transition from planning to commitments, risk arises in the form of: Planning gaps – expenditures are required that were not identified in the Plan due to either oversight or changes in circumstances. This risk is mitigated through the extensive planning activities described in section 2 of this Plan and through the continuous monitoring and adjustment of the Plan. Changes in market pricing – the risk that scope is properly defined but, when entering into the procurement phase, pricing is materially different from expectations. While a certain element of this risk is beyond VANOC’s control, it is mitigated by extensive research, sound procurement practices and some ability to manage scope. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 28 of 196 Revenue shortfall – While a great deal of effort goes into generating revenues sufficient to meet or exceed expenditure requirements, risk is always present until payment is received. Risk comes in the form of possible failure to reach revenue targets and in credit risk associated with future revenue streams. 69 per cent of VANOC’s anticipated revenue has now been committed. This is a high level given that the Games are fewer than three years away. During the transition from commitments to actual results, risk arises in the form of: Credit risk – Credit risk for the venue program is considered very low as commitments are in place from government partners. VANOC receives revenues from the IOC and from numerous private sector companies. Credit risk is mitigated through partnering with sound, established companies and managing credit through contractual agreements. Performance risk – the ability of contractors and suppliers to deliver on commitments made to VANOC is critical because of the fixed time frame of the Games. Effort is made to mitigate performance risk through a thorough procurement process that emphasizes performance risk minimization as a key element of awarding of contracts. VANOC is dependent upon receiving revenues from its senior government partners (BC and Canada) to finance the cost of venue development activities. The major sources of operating revenues are received from sponsorships, the sale of international television broadcast rights, merchandise sales and ticket sales. The amount of broadcast and sponsorship revenue is dependent upon negotiations with the IOC, which have now been concluded with the results reflected in this Business Plan. In addition, as much of VANOC’s revenue is received in foreign currencies, the risk of continued appreciation of the Canadian Dollar is being mitigated through the use of hedging contracts. Finally, given the nature of the Games, VANOC faces some risk of unanticipated costs in staging the Games. Performance Risks: VANOC has an active Risk Management Program in place. Where practical and possible, risks and uncontrollable conditions, such as weather, are incorporated into planning activities and mitigation strategies are adopted. The Risk Management Program includes a number of activities aimed at ensuring that operating plans and activities are appropriately ready for the Games. These include Test Events, simulations, extensive training and other activities. Performance risk associated with the key contractors and suppliers associated with the Games is addressed through the procurement process. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 29 of 196 Reputation Risks: VANOC’s reputation must be maintained at the highest standard to give confidence to its partners, sponsors and other stakeholders, and to maintain the public’s trust. 4. VANOC APPROACH VANOC’s mandate is clear. It is responsible for two key areas: 1.) building and/or upgrading the venues to host the 2010 Winter Games, and 2.) financing, organizing and staging the Games. Although the Games are taking place in the Vancouver-Whistler region, VANOC’s staff and partners are working together to ensure the power and influence of the Games extend across Canada. 4.1 VANOC Vision A stronger Canada whose spirit is raised by its passion for sport, culture and sustainability. 4.2 VANOC Mission To touch the soul of the nation and inspire the world by creating and delivering an extraordinary Olympic and Paralympic experience and lasting legacies. 4.3 Values and Guiding Principles Five values, each with guiding principles, have been identified. These form the foundation of the VANOC way of dealing with its people, its partners, its stakeholders and issues faced on an ongoing basis. Team We will foster a safe environment in which to challenge each other’s ideas, uphold the obligation to dissent, but demand mutual respect. By focusing on the collective and not individual effort – everyone will cross the finish line together. As a collective group, VANOC shares accountability across the organization for the success of the Games We will incorporate the nation-building potential of the Games in all our plans and actions, reaching out to Canadians in all regions of the country and in locations all around the world, in Canada's two Official Languages Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 30 of 196 We will develop effective partnerships that will ensure inclusivity and leverage our legacy We will take a leadership role in stakeholder management with our key partners and sponsors Trust We will act at all times with the highest standards of honesty and integrity and will demonstrate the highest standards of ethical behaviour and mutual trust We will demand of ourselves, our partners, our suppliers, our employees and all participants in the Games those same standards of ethical behaviour We will be fiscally responsible and accountable in all areas of operation by managing Olympic funds prudently We will initiate, drive and support efforts to ensure a strong, sustainable post-2010 legacy for enhancing Canada’s capacity in sport, arts and culture, facilities, human skills and training, learning opportunities, volunteerism, business investment and tourism We will offer the opportunity for all Canadians to rediscover the value of their country and celebrate it on the world stage through athletic endeavours, culture, employment, volunteer roles, business opportunities, Games attendance and mass media Excellence We will support efforts to improve the sport performance of Team Canada prior to and during the 2010 Games, and to enhance long-term sport performance in Canada We will commit to achieving individual and collective performance excellence in all areas of VANOC through teamwork and collaboration Working with our partners, we will promote social, cultural, health, and sport and recreation excellence We will be accountable for balancing our commitment to performance excellence with a strong emphasis on personal sustainability and a healthy lifestyle Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 31 of 196 Sustainability We will be accountable for ensuring fiscal responsibility in all areas of operation and will manage Games funds prudently We will ensure inclusive participation in all aspects of the Games through employment, volunteerism, performance (sport, arts and cultural), goods and services supply, consultation and as spectators and consumers We will promote the diversity that gives our country and our community its enduring strength We model and work with our partners, our suppliers, and all participants in the Games to ensure the highest standards of honesty, integrity, ethical behaviour and mutual trust are followed We will be accountable to environmental stewardship in the building and delivery of the Games Creativity We will value non-territorial and non-hierarchical behaviour, flexibility, adaptability and entrepreneurship We will encourage contagious enthusiasm, fun, good humour, engagement and optimism We will always be looking for new ways to improve, never being satisfied with the status quo We will inspire new ideas by having a work environment where people can speak up, try new things and not be afraid of failure 4.4 VANOC Strategy In building Canada’s Bid for the 2010 Olympic and Paralympic Games, and in assembling the management team to carry out the project, a number of core strategies were set. VANOC’s mission, vision and values are stated earlier in this plan. The following represent key strategic objectives that are driving VANOC’s activities: Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 32 of 196 Engage the nation by sharing the journey to create a distinctly Canadian Olympic and Paralympic experience Create the conditions that will provide an extraordinary experience for athletes and all Games participants Build a team that passionately lives our values in order to achieve extraordinary performance Take responsibility for successful relationships with all of our partners in order to optimize their participation in, contribution to and legacy from Canada’s Games Generate sufficient revenue and manage costs and risk in order to ensure a positive financial legacy Be a disciplined and entrepreneurial organization with sound business processes, controls and tools that enable us to effectively manage the business of planning and staging the Games Manage the social, environmental, and economic impact and opportunities of our Games, in ways that will create lasting benefits, locally and globally 4.5 Project and Contingency Management Appendix 2 addresses in more detail the steps and practices followed to manage and control the Games project from both a financial and schedule perspective. Best practices from past Games have been combined with best Canadian practices to work most effectively with the management structure in place at VANOC. VANOC’s goal is to manage its contingency resources to adequately protect the Games budget. The plan is to take advantage of every opportunity to preserve its contingency into Games time by aggressively pursuing new revenue sources and maintaining a strong internal discipline on costs. This Business Plan includes two contingencies: Games operations contingency – $100 million Venue construction contingency – $55.3 million The project contingency for Games operations will be managed centrally. Should draws on contingency be required, a rigorous and disciplined approach will help guarantee that appropriate resource allocation decisions are made. The processes for budget and contingency management are rigorous with decision making vested in senior management. Management Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 33 of 196 information systems are in place to effectively track our financial status at any point in time and ensure decisions can be made on a fully-informed basis and in a timely manner. Significant draw downs of central contingency will require Board approval, further protecting the effectiveness of financial planning and control. The Games operating expenditures of $1.63 billion are comprised of project costs to date, value in kind (VIK) goods and services, salaries and future cash obligations. The latter amount of $722 million in future cash expenditures is very well protected by the $100 million contingency. The venue construction contingency is managed under the same processes as above with the added VANOC obligation of adhering to the Performance and Accountability agreement between VANOC and the Province of British Columbia. 4.6 VANOC Organizational Structure For the purposes of planning and budgeting, VANOC has been divided into 50 functions, each accountable to one of the Executive Team. The current allocation of functions is on the VANOC Organizational Chart on page 89. 5. LEGACIES OF THE 2010 WINTER GAMES The central theme of bidding for and hosting the 2010 Winter Games is to create sustainable legacies. In addition to hosting an outstanding Games with superior conditions that will inspire top performances by athletes, cultural performers, the workforce and our host communities, VANOC’s goal is to leave legacies – physical and human – that will last long after the final medal of the Games is awarded. From the creation of new sport and recreation facilities, to a well-trained group of event experts and volunteers, the impact of the 2010 Winter Games will endure well beyond the 27 days of competition. At this stage of planning, VANOC projects the following legacies that will result from hosting the Games: New and renovated sport and community facilities Support for athletes and high-performance sport Increased awareness of Paralympic sport and athletes Creation of barrier-free access to sport and community facilities Increased awareness and understanding of Aboriginal peoples in Canada (First Nations, Inuit and Métis) Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 34 of 196 Advancement of sustainability practices and demonstration of how Games can be produced in an environmentally-sensitive, inclusive, safe and financially-responsible way Development of athlete villages in Vancouver and Whistler resulting in post-Games nonmarket housing Games employees and volunteers trained in event planning and execution New model for governments and community (such as First Nations, inner-city residents and organizations and persons with disabilities) to work together to address social issues with community engagement National pride and accomplishment of what a city, region and country can do when people come together to celebrate sport, culture and sustainability Increased awareness and pride in Canada’s linguistic duality and cultural diversity A continuing platform for long-term tourism promotion Further details about the current state of Games legacies planning are available in Appendix 15. 5.1 Venue Legacies The Vancouver 2010 venue development program is focused on maximizing the use of existing facilities and building new venues that maximize the potential for post-Games uses. Working with its partners, VANOC’s venue plan incorporates ideas of how the new facilities will operate after the Games for the continued development of high-performance and recreational sport and community uses. The 2010 Games venues are being developed with a sustainable footprint that will leave a legacy of green buildings designed to conserve natural resources such as water, materials and energy throughout their operations. Efficiencies in building design will create a legacy of lower operating costs for future venue owners achieved through the capture and re-use of waste heat and/or rain water. Details of the post-Games use for each venue are noted in Appendix 15. 5.2 Sport Legacies Certain sport equipment used during the Games will be donated after the Games to equip venues for post-Games use. National Sport organizations (NSOs) will have access to the equipment for future training and event hosting. After the Games, medical equipment will be turned over to a number of communities for various legacy uses. Launched in January 2005, Own the Podium 2010 is a national sport technical initiative designed to help Canada’s winter athletes win the most medals at the 2010 Olympic Winter Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 35 of 196 Games in Vancouver, and place in the top three nations (gold medal count) at the 2010 Paralympic Winter Games. The initiative is a collaborative effort supported by all of Canada’s winter NSOs and major winter sport funding partners, including the Government of Canada, through Sport Canada, the Canadian Olympic Committee (COC), the Canadian Paralympic Committee (CPC), the Calgary Olympic Development Association (CODA), the Government of British Columbia, VANOC and several of VANOC’s corporate sponsors, including Bell Canada. Own the Podium 2010 has established needed partnerships with governments, sport agencies and corporate sponsors to develop long-term funding stability for the winter sport system. The heightened awareness of athlete and amateur sport needs and the anticipated performances of Canadian athletes at the 2010 Winter Games are expected to create an increase in the level of support from all sectors for amateur sport after the Games. 5.3 Community Legacies The 2010 Winter Games will leave important human legacies generated from the participation of people in the Games – from working for the Organizing Committee, to volunteering for the Games, to experiencing the thrill of competition as a spectator, to watching the stories unfold on television and the Internet as new sport heroes make their mark in 2010. The Games will create a legacy around the development of skills. The Games provide valuable opportunities to enhance the region’s hospitality and event hosting expertise along with training and the development of new skills for the Four Host First Nations (FHFN), Aboriginal people and inner-city communities as they participate in delivering the Games services. Some 25,000 volunteers will be recruited to help stage the Games. This unique experience of contributing to an international event will create an enhanced talent pool of volunteers for BC and Canada and provide increased awareness about the passion for, and benefits of, volunteerism across the country. 5.4 Economic Legacies VANOC’s operating budget will largely be spent in British Columbia and the rest of Canada. From the salaries of Organizing Committee employees to the production of official Games merchandise, much of the overall operating budget is money that would not have been invested in the BC and Canadian economies without the Games. The Games serve as an important platform for long-term tourism promotion. Some three billion people will be exposed to the host cities, region, province and Canada through global television broadcasts. International media exposure increases awareness and pushes potential Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 36 of 196 international visitor volume to the region to a much higher plateau. Vancouver, Whistler, British Columbia and Canada will have their profiles significantly raised throughout the world. New facilities in the Vancouver-Whistler area will help create and enhance opportunities for the region to bid on future major sport events. One example may be an opportunity to create a North American circuit for sliding sports events with sliding tracks located in Lake Placid, Salt Lake, Calgary and now Whistler. VANOC, its government partners and corporate sponsors will collaborate on Games-time showcasing of business and sustainability innovation to demonstrate BC and Canada’s leadership in integrated solutions to local and global sustainability challenges. 6. SCHEDULE The Games are all about timing. From the initial Vancouver 2010 bid idea in 1996 to the awarding of the Games on July 2, 2003, to the Opening Ceremony on February 12, 2010, the planning spans many years. 6.1 Phases of the Games There are six phases to the Vancouver 2010 Olympic and Paralympic Winter Games project: Foundation planning/organization building (2003-05) VANOC has completed the foundation planning phase. The phase ran from the time of its incorporation until mid-2005. During this phase, VANOC’s Executive Team was hired, venue construction began, marketing activities were initiated and early major sponsors signed up, the Olympic Games emblem was established, operational planning at a high level was initiated and key systems, including financial systems and policies and procedures, were put into place. Staffing during this phase grew to approximately 100. Foundation planning culminated with the completion of Version 1 of the VANOC Business Plan. Strategic planning (2005-06) The second phase was strategic planning. During this phase, key strategic plans were prepared in support of the next Business Plan and Budget. Decisions were made with respect to key building blocks, function organization and risk mitigation. VANOC team members attended the Torino 2006 Games to experience the Olympic and Paralympic Winter Games to test and further refine key planning assumptions. An extensive debrief meeting was held following the Torino Games. Staffing during this phase grew from 100 to approximately 250. Staff members were skewed towards senior managers, many with Games Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 37 of 196 experience. This phase was completed with the preparation of the Business Plan and Games operating budget. Overall Concept and detailed operational planning (2007-08) The overall concept and detailed operational planning phase is the longest phase of the Games project. It runs from late 2006 until approximately one year before the Games. During this phase, detailed operational plans are built, the budget is re-examined, all operational activities are planned and integrated across the organization and Test Events are held. Venue development is completed. Non-competition venues are secured. Marketing activities continue in an effort to sign up the majority of Games sponsors. The ticketing program is launched. Staffing during this phase grows from 250 to approximately 800. Volunteer recruitment is initiated. Games readiness (2008-09) The “venuization” or Games-readiness process covers the final 12 to 18 months preceding the Games. During this phase, the organization shifts from its function focus to venue operations. Detailed venue operational plans are developed and tested. Further Test Events occur. Simulations are run to ensure planning is complete. Staff members begin to physically move from central offices to venue locations. Staffing grows from about 800 to 1,200. Volunteer training is conducted. Part-time staff members are hired. Games time – Olympic and Paralympic Winter Games (January-March 2010) Most Games functions begin operations with the opening of the Olympic Villages on February 4, 2010 and continue to operate until the closing of the Paralympic Village on March 24, 2010. The duration of Games operations is some 60 days, and includes the Olympic athlete training period, the Olympic competitions, the transition between both Games, the Paralympic athlete training period and finally the Paralympic competitions. Wind-up and dissolution (2010) The wind-up and dissolution phase begins at the close of the Olympic Winter Games for Olympic venues and operations and continues following the Paralympic Winter Games. Assets are recovered and returned to owners or disposed of by sale or donation. Venue overlay is removed. Venues are restored as required and returned to venue owners. Both Athletes’ Villages are closed. Staff is reduced from its full operational level to about 50 and then to zero. Final accounts are prepared and audited. A final report is written and transfer of knowledge materials are provided to the IOC. The surplus, if any, is distributed, according to the terms of the Host City Contract (20 per cent to the COC, 60 per cent for the general benefit of sport in Canada and 20 per cent to the IOC). The Board of Directors is then dissolved. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 38 of 196 6.2 Master Schedule VANOC’s integrated planning team has prepared a Games Master Schedule to assist senior management and function leaders in preparing for the Games. The level of detailed use of the scheduling service by each function varies depending on the specific needs of that function and the nature of its work. The Master Schedule is an essential tool to progress planning towards critical Games deadlines. Developed through coordination with each VANOC function, the IOC, IPC, government partners and sponsors, the Master Schedule provides VANOC with the information it needs to effectively plan, manage, integrate and communicate its activities. To keep it manageable, the Master Schedule includes only those core activities that are critical to delivering the Games and the VANOC strategic plan. It summarizes the plans of VANOC’s many function areas and its multiple partners into one integrated, centrally managed schedule. 6.3 Games Time Planning Roadmap The Games Time Planning Roadmap is a communication and coordination tool that VANOC has developed based on the IOC’s Games Readiness Integrated Plan (GRIP). It highlights milestones and deliverables from the VANOC Master Schedule that have an impact on Games time planning and operations and that typically impact at least five functions from an integration perspective. The milestones and deliverables on the roadmap are organized into major planning streams, including Customer Experience, Services, Staff, Stuff, Space and Command, Control and Communications (C3). The purpose of the Roadmap is to facilitate the alignment and integration of the major Games Time planning streams and to allow VANOC functions to anticipate future organization-wide planning initiatives. The Roadmap was developed and is managed by a cross-function team referred to as the Games Operations (GO) Team. It is governed by VANOC’s Games Time Operations Steering Committee which is responsible for overseeing VANOC’s Games-time preparations and operations. 6.4 Key Dates of the Games in 2010 Olympic Village opening – February 4, 2010 Olympic Winter Games – February 12 to 28, 2010 Olympic Village closing – March 3, 2010 Paralympic Village opening – March 5, 2010 Paralympic Winter Games – March 12 to 21, 2010 Paralympic Village closing – March 24, 2010 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 39 of 196 7. VANOC BUDGET This section outlines the current Vancouver 2010 Winter Games operating budget (revenues and expenditures) along with a function-by-function breakdown. 7.1 Revenue This table includes the major sources of revenue for VANOC and the respective budget amounts. $ 579,700,000 (178,000,000) 401,700,000 35,000,000 201,404,000 760,000,000 231,854,000 46,026,000 40,000,000 110,502,000 1,826,486,000 (197,217,000) 1,629,269,000 IOC Contribution Less – cost of providing Olympic Broadcast Services (OBS) IOC Net Contribution Other IOC Revenue IOC International Sponsorship Program Domestic Sponsorship Ticketing Licensing & Merchandising Paralympic Revenue Other TOTAL REVENUE Less: Marketing rights royalties NET REVENUE IOC Contribution: VANOC has recently completed negotiation with the IOC to establish the level of funding to be provided by the IOC out of international television revenues and from other sources. The amount used in this plan is based on the conclusion of the negotiations. The amount is net of the cost of providing the host Olympic Broadcast Services. Through the Host City Contract, VANOC is responsible for OBS costs of operation. Other IOC Revenue: Represents an additional contribution from the IOC. IOC International Sponsorship Program: A portion of the proceeds the IOC collects from its international sponsorship program known as TOP (The Olympic Partner Programme) goes to Games organizing committees. For the purposes of this plan, valuation has followed discussion with the IOC and is based on levels and categories sold for the Torino 2006 Games, updated Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 40 of 196 where appropriate to reflect current contractual agreements between the IOC and its TOP partners. The final amount includes cash and VIK. Domestic Sponsorship: The budget is based on a three-tiered program and includes sponsorships of the Olympic and Paralympic Torch Relays. To date, more than $615 million of the budget has been committed through signed sponsor agreements and term sheets. Ticketing: VANOC’s goal is to have the highest sell through rate of any Games. Our research suggests that interest in the Games will be very high and that this is expected to translate into a high demand for tickets. We believe that there is a strong alignment between the number of tickets available for selected sports and the anticipated demand. Ticketing revenue is based on a specified pricing model, venue capacities, sell-through rates and other key assumptions. Total projected ticket revenue is based on selling 90 per cent of available tickets for all sporting events, 75 per cent for the Paralympic Winter Games Opening and Closing Ceremonies, and 94 per cent for the Olympic Winter Games Opening and Closing Ceremonies. Ticket pricing is subject to the approval of the IOC and is expected to be finalized in 2008. The largest proportion of ticketing revenue will be generated from the Opening and Closing Ceremonies and the ice hockey competitions. Licensing & Merchandising: The budget consists of royalty payments from VANOC licensees and net proceeds from retail operations. Paralympic revenue: At the time of the bid for the 2010 Winter Games, the governments of Canada and BC each committed $20 million towards the Paralympic Games. Other revenue: This revenue comes from a variety of sources, some confirmed and the rest from areas to be further planned and activated over the next three years. Key areas targeted for other revenue include Internet revenue, asset disposal, food and beverage, Test Events and the Rate Card program. Committed revenue: The following graph highlights that 69 per cent of VANOC’s operating revenue is now committed. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 41 of 196 Operations Revenue Received Domestic Sponsorship IOC Contribution IOC Int'l Sponsorship Ticketing Licensing & Merchandising Paralympic Other $46.0 $40.0 $110.5 100 200 300 400 500 600 700 800 900 1,000 69% $201.4 $231.9 $436.7 Committed Balance to Go $760.0 % Rec'd or Committed 81% 100% 71% 0% 39% 100% 2% [$ millions] 0 Percent of Operations Revenue Rec'd or Committed Marketing Rights Royalties: The IOC and COC shares of marketing revenues are determined by existing agreements and the level of revenue earned by VANOC. The IOC is entitled to a percentage of all commercial cash revenue earned by VANOC (primarily Canadian sponsorship, ticketing and licensed product royalties) and a percentage of all VIK commercial revenues (through sponsorship). Royalties payable to the IOC on VIK revenue are payable in cash. In addition, the IOC deducts a percentage of the value of TOP sponsorships as a management fee. The Joint Marketing Plan Agreement, described in section 2.4.4, calls for a royalty payment to the COC based on revenues generated from Canadian sponsorships, the licensed merchandise program, and the TOP program. The payment is calculated as 16 per cent of cash revenues and 12 per cent of VIK revenues. The minimum payment to the COC under the JMPA is $73 million; the maximum payable is $110 million. This plan estimates that the maximum level will be paid to the COC. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 42 of 196 7.2 Expenses DIVISION Revenue, Marketing and Communications Sport, Paralympic Games and Venue Management Service Operations and Ceremonies Technology and Systems Human Resources and Sustainability Finance and Legal and CEO Office Project Contingency – Games Operations Total Expenditures $ 126,427,000 186,436,000 548,130,000 398,500,000 153,144,000 116,632,000 100,000,000 1,629,269,000 7.3 Revenue, Marketing and Communications Revenue, Marketing and Communications includes 11 functions, generally related to activities aimed at generating revenue from commercial sources and supporting those commercial partners. Additionally, the division is responsible for communications activities that involve a range of responsibilities including Communications, Media Relations, Community Relations, Editorial Services and Internet Management. The division is also responsible for the development and management of the VANOC Brand and Creative Services and the development and execution of the Olympic and Paralympic Torch Relays. The respective function budgets and staffing plans are as follows: Function Sponsorship Sales & Servicing Licensing & Merchandising Commercial Rights Management Ticketing Communications Community Relations Editorial Services Media Relations Internet Management Brand and Creative Services Torch Relays REVENUE, MARKETING & COMMUNICATIONS $ 21,184,000 7,225,000 4,035,000 9,083,000 6,393,000 10,619,000 10,442,000 3,613,000 7,446,000 15,588,000 30,799,000 126,427,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 43 of 196 2007 Total employees 78 2008 123 2009 161 2010 240 Sponsorship Sales and Servicing: Key activities include the development of sales strategies for the generation of the $760 million domestic and torch relays sponsorship revenue stream, execution of sales strategies and providing service to corporate partners. In addition to providing servicing to national sponsors that are contracted by VANOC, the marketing team provides servicing to the TOP partners. The function operations budget includes staffing, travel and administration, sales materials and collateral, costs for sponsor launches, sponsor hosting, sponsor conferences and workshops, and sponsor recognition advertising and signage. Sponsorship Sales and Servicing Staff, planning, administration & sales activities Sponsor conferences, recognition and events Total $ 12,996,000 8,188,000 21,184,000 Licensing and Merchandising: The function is responsible for VANOC’s licensing programs and for working with VANOC’s contracted licensees. In addition, the function is responsible for all VANOC retail operations, online sales, and retail marketing. In addition to workforce costs, the function budget includes administrative costs, costs for the outfitting the retail superstore during the Games and costs associated with VANOC promotional merchandise. Licensing & Merchandising Staff, planning & administration Total $ 7,225,000 7,225,000 Commercial Rights Management: Primary responsibilities for this function include the development of commercial rights and brand protection policies and guidelines, education and communication of those policies and implementation of VANOC’s brand protection strategy, including anti-ambush activities. The function budget includes staffing and program costs to support these initiatives, including a provision for anti-ambush advertising. Commercial Rights Management Staff, planning & administration Total $ 4,035,000 4,035,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 44 of 196 Ticketing: The Ticketing function is responsible for ticket program planning to deliver the ticket revenue budget of more than $230 million. Included in the program are general sales and marketing programs, communication activities and logistics surrounding the sale and distribution of tickets. Key operation budgeted expenditures include advertising and ticket program development costs. Ticketing Staff, planning & administration Ticket marketing Total $ 5,062,000 4,021,000 9,083,000 Communications: Communications is responsible for strategic communications, management of external communications and the centralized planning and management of VANOC’s advertising resources. Key components of the function budget include advertising and staffing costs. Communications Staff, planning, events & administration Total $ 6,393,000 6,393,000 Community Relations: Community Relations is responsible for the engagement of all Canadians through community and public events, national tours, information centres and community outreach programs. The function budget includes staffing and operational costs to support community tours and events, launches and the operation of information centres. Community Relations Staff, planning & administration Events and programs Total $ 6,029,000 4,590,000 10,619,000 Editorial Services: This function is responsible for all pre-Games, Games-time and postGames publications involving writing, editing, production coordination and translation. The most significant cost of this budget is the printing and production costs of the publications. Editorial Services Staff, planning & administration Publications Total $ 1,805,000 8,637,000 10,442,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 45 of 196 Media Relations: Media Relations is responsible for developing media plans and guidelines, centralized management of public affairs issues and press operations integration. The function budget includes staffing and operational costs to support media information distribution, media briefings and press conferences. Media Relations Staff, planning & administration Total $ 3,613,000 3,613,000 Internet Management: This function is responsible for the content design and management of the pre-Games and Games-time website, Torch Relay, Ceremonies and Cultural Olympiad sites, Extranet and Intranet, and Internet-based consumer service delivery. The function budget includes development, testing, translation and implementation costs. Cost for the hosting infrastructure for the website is included in the Technology and Systems function. Internet Management Staff, planning & administration Services and content development Total $ 2,257,000 5,189,000 7,446,000 Brand and Creative Services: The primary responsibilities of this function are brand strategy and management, Vancouver 2010 brand and design elements, including: Games emblems, sponsor marks, mascots, Look of the Games, torch, cauldron, medals, development of advertising and promotions, video production, photography, music, brand research and concept testing. Key components of the budget include staffing, creative consultants/artists, market research and design production costs. Brand and Creative Services Staff, planning & administration Creative, design & production services Total $ 7,650,000 7,938,000 15,588,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 46 of 196 Torch Relays: This function is responsible for all aspects of the Olympic and Paralympic Torch Relays – planning, administration, management, operations, marketing and communications. The function budget includes administration and management costs, transportation, marketing, communications, torchbearer expenses, travel, accommodation and staffing costs. Torch Relays Staff, planning & administration Olympic Torch Relay Paralympic Torch Relay Total $ 7,299,000 21,165,000 2,335,000 30,799,000 7.4 Sport, Paralympic Games and Venue Management The Sport, Paralympic Games and Venue Management division includes seven functions generally related to the delivery of services to athletes, International Sport Federations (IFs), National Olympic Committees (NOCs) and National Paralympic Committees (NPCs). The single most important element of Sport is the delivery of fair competitions conducted to the standard laid out by the governing IF. The division is also responsible for operating the Games competition and training venues, for ensuring that all expected services are met and that operational plans and procedures are developed and implemented for all venue activities. The division is responsible for the integration of Paralympic Games planning across all Organizing Committee functions. The respective function budgets and staffing plans are as follows: Function Sport Paralympic Planning Medical Services Anti-Doping NOC-NPC Services Venue Management Event Services SPORT, PARALYMPIC GAMES & VENUE MANAGEMENT 2007 Total employees 40 2008 96 2009 188 $ 57,393,000 2,629,000 9,773,000 4,120,000 16,078,000 88,641,000 7,802,000 186,436,000 2010 242 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 47 of 196 Sport: The Games are primarily about sport and athletes. This was the focus of the Vancouver 2010 bid planning and remains a critical strategy with VANOC. Sport’s priority is to ensure that athletes compete in a fair and optimal environment that allows them to perform to their potential. A key priority of Sport is to ensure that the athlete environment meets the highest standards, and that when an athlete departs the 2010 Games, he/she feels the Games were the best sporting experience of his/her career. Sport’s primary responsibility is to deliver the field of play and sport equipment for all Olympic and Paralympic sport competitions. In addition, the function is responsible for the development and management of the competition schedule, audio/video and entertainment production at all competition events, entry qualification and classification of athletes, IF and IPSF services, weather forecasting (in conjunction with Environment Canada) and pre-Games venue operations at the Whistler Sliding Centre, Whistle Nordic Competition Venue and Hillcrest Curling Venue. The Sport budget is largely driven by the level of service required, often dictated by IFs, NOCs and the IOC and benchmarked against the levels provided by the Salt Lake 2002 and Torino 2006 Winter Games. Major costs in Sport include field of play requirements for outdoor venues. Other costs include staffing, sport production, weather stations and monitoring, costs associated with training events and general travel and administration related to working with the IFs, IOC, IPC, NOCs, NPCs and NSOs. Sport Sport staff, planning & administration Alpine sports Freestyle and snowboard Ice sports Nordic sports Sliding sports Sport services Sport venue production Total $ 2,444,000 9,985,000 4,446,000 15,515,000 7,199,000 4,019,000 7,597,000 6,188,000 57,393,000 Paralympic Planning: The function’s primary responsibility is maintaining VANOC’s working relationship with the IPC and CPC. In addition, the function works to raise awareness of the Paralympic Games and to ensure the Paralympic Games are properly considered in VANOC’s operations and transition planning. The function budget is primarily comprised of staffing costs, special events (Paralympic days and awareness events), planning and implementation of the Paralympic attendance program and barrier-free design consulting. Costs associated with the staging of the Paralympic Winter Games are captured within each function budget. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 48 of 196 Paralympic Planning Staff, planning & administration Total $ 2,629,000 2,629,000 Medical Services: The Medical Services function is responsible for Games-time medical services for athletes, team officials, workforce, IOC/IPC Family, spectators and media. The service is provided through two Polyclinics located within the Athlete Villages and is delivered by a trained workforce, volunteers, medical professional contractors, liaison with local heath authorities, external agencies and providers of supplies and equipment. VANOC’s budget includes provisions for medical imaging equipment and services, medical professional contractors, staffing, training and other administrative costs. Medical Services Staff, planning & administration Medical services Total $ 3,632,000 6,141,000 9,773,000 Anti-Doping: The Anti-Doping function is responsible for VANOC’s doping control/anti-doping program. The program includes Games-time testing programs and the operation of a WADAaccredited anti-doping lab during the Games. The function budget includes administrative costs, staffing/contracted staff and costs for recruitment and training. Anti-Doping Staff, planning & administration Services & equipment Total $ 1,718,000 2,402,000 4,120,000 NOC/NPC Services: This function is responsible for VANOC’s relationships with all of the international NOCs and NPCs to ensure delivery of NOC and NPC delegation needs and expectations. Key activities include NOC/NPC relations, communications, chefs de mission seminars, delegation registration meetings and the NOC and NPC assistants program. The function budget includes costs for meetings and seminars, Games-time operations, staffing and the Athlete Support Grant program. Games organizing committees pay for the cost of flying all team athletes and certain officials from the capital city of their home countries to the Host City. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 49 of 196 NOC / NPC services Staff, planning & administration Services and programs Athlete support grants Total $ 5,016,000 2,430,000 8,632,000 16,078,000 Venue Management: Venue Management is responsible for operating the Games competition and training venues, for ensuring that all client group needs and services are met and that operational plans and procedures are developed and then implemented for all venue activities. The main goal is to lead the different functions to an integrated delivery model. Additionally, the function is responsible for negotiating venue use agreements with venue owners and for the central management of all VANOC’s Test Events. Besides staffing costs including training and communications, the significant components of the function budget include facility rental and operating costs and test event costs. The costs for Test Events vary largely based on the specific arrangements made for each sport depending on the participation of other parties and the nature of the event. Facility rental costs include payments to private venue owners, including Whistler/Blackcomb Mountains, Cypress Mountain and General Motors Place. Venue Management Staff, planning & administration Venue use agreements Test Events Total $ 14,869,000 57,678,000 16,094,000 88,641,000 Event Services: Event Services is responsible for planning, training and deploying the event workforce. Working closely with Venue Management, Event Services is responsible for venue operation planning, venue workforce planning and training and during Games time leads the workforce that engages with the spectator from end-to-end, including ticket taking, marshalling, ushering and communications. The budget includes costs for Games-time paid and volunteer staffing along with job-specific training, administration and special equipment. Event Services Staff, planning & administration Total $ 7,802,000 7,802,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 50 of 196 7.5 Service Operations and Ceremonies The Service Operations and Ceremonies division includes 14 functions primarily responsible for the provision of services to athletes and officials, broadcasters, media, the Olympic Family, sponsors, spectators and the VANOC workforce. Services include the provision of signage, space, food, transportation, accommodation, logistics, cleaning and facility operations. Additionally, the division has the responsibility for Ceremonies and the Cultural Olympiad. The respective function budgets and staffing plans are as follows: Function Look of the Games Overlay Food and Beverage Olympic and Paralympic Villages Accommodation Security Integration Transportation Logistics Snow Removal, Cleaning & Waste Cultural Olympiad Ceremonies Broadcast Integration Press Operations Government Service Integration SERVICE OPERATIONS & CEREMONIES 2007 Total employees 65 2008 149 2009 294 $ 18,936,000 134,689,000 36,430,000 25,832,000 23,314,000 10,306,000 124,109,000 43,072,000 9,493,000 20,045,000 64,332,000 23,376,000 10,247,000 3,949,000 548,130,000 2010 487 Look of the Games: Look of the Games is responsible for providing a seamless and memorable visual experience at the venues, villages and airport. Delivery includes the treatment application, installation, maintenance and transition to the Paralympic Games. The key costs involved with delivery include banners, barricade covers, fence fabric, poles, structures, surrounds and fascia and installation/removal labour. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 51 of 196 Look of the Games Staff, planning & administration Look- graphics, hardware & structures Wayfinding – signage Total $ 4,005,000 11,931,000 3,000,000 18,936,000 Overlay: The Overlay function is responsible for developing an integrated venue design and installing the temporary infrastructure required to provide a good working and spectator environment for all Olympic and Paralympic client groups. Key costs include trailers, temporary seating, temporary washrooms and fencing, site adaptation, labour and administration. Overlay Staff, planning & administration City venues – competition venues City venues – non-competition venues Mountain venues – competition venues Mountain venues – non-competition venues Villages Total $ 22,028,000 27,318,000 14,740,000 37,205,000 6,772,000 26,626,000 134,689,000 Food and Beverage: Food and Beverage is responsible for delivering safe and high-quality food and beverage products to all constituent groups, during the Olympic and Paralympic Games. Key costs include equipment costs, food costs and labour. Food and Beverage Staff, planning & administration Kitchen outfitting Athlete catering Venue build-out Workforce catering Total $ 2,836,000 5,464,000 9,973,000 2,811,000 15,346,000 36,430,000 Olympic and Paralympic Villages: The Athletes’ Villages function is responsible for VANOC’s Olympic and Paralympic Village planning, oversight of the development and implementation of all operations, services, temporary facilities and equipment required to operate the Olympic and Paralympic Villages. The Villages will include approximately 4,800 beds housed in Vancouver and Whistler. Key costs include furniture, housekeeping, maintenance, entertainment, retail subsidies and temporary labour. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 52 of 196 Olympic and Paralympic Villages Staff, planning & administration Housekeeping International plaza & events Rooms division – furniture, fixtures and equipment, supplies Support services Total $ 9,663,000 3,243,000 2,569,000 6,438,000 3,919,000 25,832,000 Accommodation: The Accommodation function is responsible for securing, managing and providing and/or coordinating lodging for specific categories of accredited people attending or participating in the 2010 Games, and ensuring that quality and operational standards are met. Key costs include room rental costs, cost recovery from groups using rooms and the reservation system. Accommodation Staff, planning & administration Workforce, officials & other accommodation Total $ 6,403,000 16,911,000 23,314,000 Security Integration: The Security Integration function is responsible for working in close collaboration with the national and local public safety authorities operating as the Vancouver 2010 Integrated Security Unit (V2010ISU) to coordinate overall planning. This function also manages venue security pre- and post-Games during overlay and decommissioning phases. The key cost driver is contract security rates for the provision of pre- and post-Games asset protection. The budget provided for by VANOC is separate and distinct from the $175 million Games security budget funded directly by Canada and BC. Security Integration Staff, planning & administration Site security Total $ 2,985,000 7,321,000 10,306,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 53 of 196 Transportation: The Transportation function is responsible for planning and implementing systems, policies and procedures that provide for the transport of people to and from every Olympic and Paralympic Games venue, facility and related site. VANOC is directly responsible for developing and providing appropriate transportation systems to meet the needs of different groups as well as collaborating with external stakeholders and authorities within existing public and private transport systems to deliver spectator transport. Key costs are bus rental, bus driver costs, vehicle fleet costs, fuel, parking, user cost recovery and incremental TransLink (public transit) service costs. Transportation Staff, planning & administration Bus systems Fleet vehicle systems Parking Traffic management Paralympic transportation Total $ 21,060,000 52,372,000 32,232,000 6,191,000 1,800,000 10,454,000 124,109,000 Logistics: The Logistics function is responsible for management of the assets and materials of the Olympic and Paralympic Games (excluding Athletes’ Villages) through the lifecycle of the commodity, including material planning, receipt, storage, distribution/deployment at venues and the recovery and disposition of these items, inclusive of competition venues, non-competition venues, ceremonies, and Look of the Games. Key costs include warehouse costs, the distribution fleet and fuel costs, international freight costs, furniture fixtures and equipment costs. Logistics Staff, planning & administration Freight Distribution Warehouse Furniture, fixtures and equipment Total $ 16,151,000 2,145,000 5,537,000 9,245,000 9,994,000 43,072,000 Snow Removal, Cleaning and Waste: The Snow Removal, Cleaning and Waste function is responsible for planning, designing and implementing a cleaning and waste management system to meet VANOC’s Zero Waste Commitment, and a snow clearing and removal system. The program will be delivered via contracts with janitorial service providers and snow clearing and removal service providers. Key costs include labour, equipment rental and consulting costs. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 54 of 196 Snow Removal, Cleaning & Waste Staff, planning & administration Cleaning Waste management Snow removal Total $ 2,113,000 3,807,000 901,000 2,672,000 9,493,000 Cultural Olympiad: The Cultural Olympiad function is responsible for planning and presenting an exciting, innovative and accessible Olympic and Paralympic arts and cultural program and festivals. Key costs include funding for Cultural Olympiad and Arts Festival programs such as visual and public art. Cultural Olympiad Cultural Olympiad Total $ 20,045,000 20,045,000 Ceremonies: The Ceremonies function is responsible for the planning and staging of Olympic and Paralympic Opening and Closing Ceremonies, Victory Ceremonies, Team Welcome Ceremonies and the IOC Congress Opening Ceremony. Key costs include labour, performers, feature talent, production and fabrication costs and technical production. Ceremonies Olympic ceremonies Paralympic ceremonies Total $ 58,480,000 5,852,000 64,332,000 Broadcast Integration: The Broadcast Integration function is responsible for liaising between Olympic Broadcast Services (OBS) and VANOC to ensure planning, preparation and the provision of the facilities and services required for the operation of the Olympic Broadcast System. Key costs include the Main Media Centre (MMC) lease and operations costs, Paralympic Host Broadcast services and user groups cost recovery. Broadcast Integration Staff, planning & administration Host broadcast – Paralympic Games Main Media Centre Total $ 1,694,000 4,000,000 17,682,000 23,376,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 55 of 196 Press Operations: The Press Operations function is responsible for planning, preparation and provision of services required for the efficient and professional operation of accredited written and photographic media and their technical and support staff. The delivery of this scope of work includes the operation of the Main Press Centre, Venue Press Centres, Photo Services Centre and the Olympic News Service (ONS). Key costs include consulting costs, short-term labour and Photo Service Centre equipment. Press Operations Staff, planning & administration Contracted services Total $ 7,461,000 2,786,000 10,247,000 Government Service Integration: The Government Service Integration function is responsible for liaising with government partners to negotiate city service agreements, urban domain coordination and license applications. Key costs include travel and hosting, workshops and meetings. Government Service Integration Staff, planning & administration Total $ 3,949,000 3,949,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 56 of 196 7.6 Technology and Systems The Technology and Systems division comprises a critical part of Games operations and planning. Technology and Systems include: Energy Services, Technical Infrastructure, Information Systems, Results, Internet (Technical), and Accreditation. The respective function budgets and staffing plans are as follows: Function Energy Services Technical Infrastructure Information Systems Timing and Scoring, Results Internet (Technical) Accreditation TECHNOLOGY & SYSTEMS 2007 Total employees 37 2008 77 2009 140 $ 46,907,000 267,512,000 6,268,000 63,169,000 6,044,000 8,600,000 398,500,000 2010 209 Energy Services: Working in close collaboration with the venue construction and overlay teams, and in consultation with corporate partners, the Energy Services function is responsible for the provision and implementation of all permanent and temporary, reliable, redundant power infrastructure required for the Games. Key activities include planning and implementing of electrical safety initiatives, emergency preparation and the testing of operating plans and Games-time power infrastructure operations. The function works also closely with the VANOC Sustainability team to explore sustainable energy solutions for the Games. The function budget includes the costs for temporary generator rentals, power distribution equipment and cabling, site labour, utility distribution equipment, electricity consumption and temporary generator bio-diesel fuel. Energy Services Staff, planning & administration Energy infrastructure & consumption Other power costs Total $ 3,077,000 28,350,000 15,480,000 46,907,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 57 of 196 Technical Infrastructure: The responsibilities of the Technical Infrastructure function cover the entire range of technology equipment and infrastructure required for the Games including: Venue technology: Equipment and infrastructure to support the timing and scoring systems, video and scoreboards, security, broadcast and media requirements. Telecom Systems: The Games require an extensive telecommunications network to support the venues and interconnect them to the Broadcast Centre and VANOC headquarters and Data Centre. A wireless telecommunications infrastructure is also required for cellular traffic, WiFi access and support for two way radios. All telecom systems for the Games will be delivered by Bell Canada, a Premier National Partner. VANOC Office Support: provides for the overall technology needs of VANOC staff, such as computers, networks, printers and telephones. In addition, this function is responsible for technical rooms such as data centres, the operations centre and equipment rooms, providing computer hardware, operating systems and software. Key to delivering the required services is leveraging and managing the integration of technology sponsors and partners. Arrangements already exist with several key technology partners including Bell Canada (telecom), Ricoh (reprographics) and Atos Origin (system integration). Additional TOP Sponsors are expected to contribute to the 2010 Games in the areas of wireless devices, computer equipment and video boards and TVs. VIK comprises approximately 70 per cent of the Technical Infrastructure budget. Many of the largest costs are driven by the service requirements of each sport and of broadcasters and the media. Technical Infrastructure Staff, planning & administration Games systems & integration Hardware, software & systems delivery Venue technology Telecommunications Information security Total $ 24,380,000 84,889,000 58,916,000 25,655,000 70,808,000 2,864,000 267,512,000 Information Systems: Key activities for this function include the identification, selection and implementation of business systems for VANOC including finance, workforce, project management and issue tracking. Additionally the function will provide Games management systems including, accommodation, transportation, arrivals and departures, protocol, Rate Card, logistics and other systems. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 58 of 196 Information Systems Staff, planning & administration Business systems Total $ 4,332,000 1,936,000 6,268,000 Timing and Scoring, Results: The results function is responsible for providing timing and scoring systems (timing equipment, scoreboards and sportsboards), results systems, information diffusion systems, print distribution services and results data capture and distribution. The responsibilities described are provided mainly through Atos Origin and Omega, both TOP Sponsors. As a result, VANOC’s role is mostly overseeing, coordinating and testing. The Vancouver 2010 Winter Games will be the 24th Olympic Games for Omega in terms of providing timing and scoring systems. Timing & Scoring, Results Staff, planning & administration Results services & equipment Total $ 6,452,000 56,717,000 63,169,000 Internet (Technical): The Internet (Technical) function is responsible for providing the infrastructure required to host VANOC’s Internet requirements. The majority of the budget is provided via VIK from Bell Canada. The content of VANOC’s Internet sites is managed by the Revenue, Marketing and Communications division. Internet Technical Staff, planning & administration Technical services & equipment Total $ 1,344,000 4,700,000 6,044,000 Accreditation: Accreditation’s key activities include registering all Games participants and granting access privileges by issuing Olympic/Paralympic identification and accreditation cards. The function will manage VANOC’s accreditation centres and facilities where the accreditation cards will be issued. The function is responsible for collecting and validating all accreditation applications. The significant components of the function operation budget include accreditation system costs, operations cost for the accreditation centres and facilities, volunteer training and general administration. Accreditation Staff, planning & administration Systems & services Total $ 5,082,000 3,518,000 8,600,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 59 of 196 7.7 Human Resources, Sustainability and International Client Services The Human Resources, Sustainability and International Client Services division is responsible for all VANOC workforce, paid and volunteer, including the recruitment, training, outfitting and retention of the workforce. By Games time, VANOC anticipates a total workforce of more than 55,000. This projection includes 1,400 paid staff, 3,500 temporary staff, 25,000 volunteers, 10,000 contractors and 15,000 ceremony participants. The division leads the development of VANOC’s corporate culture and develops VANOC human resources policies and procedures. It is also responsible for ensuring that VANOC meets its Official Languages requirements. Additionally, the division is responsible for VANOC’s initiatives surrounding sustainability and Aboriginal participation. The respective function budgets and staffing plans are as follows: Function Human Resources Workforce Sustainability and Aboriginal Participation International Client Services HUMAN RESOURCES, SUSTAINABILITY & INTERNATIONAL CLIENT SERVICES 2007 Total department employees 52 2008 69 2009 115 $ 91,545,000 34,601,000 15,653,000 11,345,000 153,144,000 2010 139 Human Resources: The Human Resources function is responsible for the development of HR policies, procedures and systems, employee recruitment, retention and recognition, cultural development, training, the development and implementation of health, wellness and safety programs and staff outplacement after the Games. Staff costs include the HR team as well as VANOC’s Executive Team. This function also includes responsibility for embedding Canada’s linguistic duality through all areas of the Games planning and service delivery. The function budget includes staffing costs, recruitment advertising, agency fees and other recruitment related costs, training costs, costs for developing and operating the HR system and outplacement service fees. Additional compensation costs include provisions for annual salary escalation for all VANOC staff and their retention. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 60 of 196 Human Resources Staff, planning & administration HR Programs & services Additional compensation costs Total $ 35,224,000 11,745,000 44,576,000 91,545,000 Workforce: The Workforce function is responsible for strategic workforce planning, developing pre-Games and Games-time volunteer programs, volunteer training, centralized recruitment, coordination and assignment of volunteers for all functions, design and delivery of workforce and volunteer uniforms and workforce communications. The Workforce and Volunteer budget is driven primarily by the volunteer numbers and includes costs for uniforms, recruitment, retention and training. Workforce Staff, planning & administration Workforce programs & uniforms Total $ 10,137,000 24,464,000 34,601,000 Sustainability and Aboriginal Participation: This function is responsible for supporting the integrated delivery of sustainability in all aspects of the Games. This involves managing environmental stewardship and impact reduction by documenting VANOC’s compliance with the Canadian Environmental Assessment Act (CEAA) requirements and delivery of specific sustainability initiatives; collaboration with government and communities to plan and implement social inclusion and accessibility initiatives (targeting Vancouver’s three inner-city communities, youth and women at risk, urban Aboriginals and people with disabilities) and Aboriginal Participation. The function is also responsible for developing policies and systems to measure and report on sustainability performance management and for assisting VANOC with implementing sustainable procurement processes and promoting and advancing sustainability concepts. Key expenditures include specialized consultancy costs, stakeholder dialogues, development and implementation of a sustainability management and reporting system and financial contributions towards sustainability participation and legacy programs. Aboriginal Participation is responsible for the overall planning and integration of Aboriginal elements into the Games, including the delivery of VANOC obligations to the Four Host First Nations (FHFN), supporting the FHFN Secretariat, enhancing opportunities for Aboriginal participation, liaising with the broader Canada-wide Aboriginal community and tracking and reporting on Aboriginal partnerships and participation in the Games. The function budget includes costs to support Aboriginal community events, communication materials and contributions to FHFN Aboriginal programs. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 61 of 196 Sustainability & Aboriginal Participation Staff, planning & administration Programs Total $ 6,868,000 8,785,000 15,653,000 International Client Services: International Client Services is responsible for the management of all pre-Games and Games-time IOC/IPC meetings, Olympic/Paralympic Family services at Games time, management of the Games Observer program, management of the Olympic and Paralympic Family hotels, language and interpretation services at competition venues, IOC meetings and the Main Media Centre and pre-Games and Games-time dignitary and protocol services. The budget includes IOC and IPC meeting event costs, dignitary hosting costs, contracted venue coordinators, flags and language interpretation services and equipment. International Client Services Staff, planning & administration Services, operations and events Total $ 4,116,000 7,229,000 11,345,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 62 of 196 7.8 Finance, Legal and CEO’s Office The Finance, Legal and CEO’s Office division includes nine functions as well as the budget for the overall project contingency. The functions provide centralized services to all VANOC functions in the areas of Legal Services, Administration, Finance, planning, Risk Management and Procurement. The respective function budgets and staffing plans are as follows: Function Legal Services Administration Finance Project and Information Management Risk Management & Assurance Services Procurement CEO Office Government & Partner Relations Venue Construction Administration FINANCE AND LEGAL AND CEO OFFICE 2007 Total employees 87 2008 102 2009 99 $ 15,379,000 38,902,000 23,592,000 5,036,000 14,883,000 4,004,000 2,608,000 1,094,000 11,134,000 116,632,000 2010 107 Legal Services: The Legal Services function provides legal services to internal clients including support to VANOC functions in the drafting and negotiation of contracts and with interpretation and enforcement of contracts. The Legal function also engages in brand management and works with the Commercial Rights Management function on required programs and legislation. The Legal function is responsible for VANOC’s privacy program and Freedom of Information (FOI)/Access to Information (ATI) management and corporate secretary services to the VANOC Board of Directors. Key budget costs for this function include cost for in-house lawyers and paralegals, external contracted lawyers or firms and costs associated with the support of the VANOC Board of Directors. Legal Services Staff, planning & outside legal services Board & committees Total $ 13,690,000 1,689,000 15,379,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 63 of 196 Administration: Administration is responsible for VANOC’s Vancouver and Whistler corporate office facilities and on-going space planning to meet VANOC’s workforce requirements. Administration’s key activities include reception, general office administration, internal food services, meeting room management, travel management, stationery, business cards and office supplies. Additionally the function provides facilities management for VANOC, its co-located partners and other existing tenants. The operations budget includes provisions for office rent and operation, office renovations including fit-out, supplies and services, office furniture and moves. Administration Office facilities Office staff, services & administration Total $ 24,587,000 14,315,000 38,902,000 Finance: The Finance function is responsible for financial reporting and accounting services, budget development and management, tax services, oversight of the Rate Card program, treasury and foreign exchange management and dissolution planning and execution. Additional budget provisions for financial systems, consultants and external advisors are included. Finance Staff, professional services & administration Interest and banking fees Total $ 14,772,000 8,820,000 23,592,000 Project and Information Management: The function provides a central service to all VANOC’s functions and assists in the development of processes and tools to support integrated Gameswide planning including operation readiness exercises. Project and Information Management manages the VANOC Master Schedule. Additionally, the function provides information management services including maintaining and managing VANOC information management systems, corporate records, research and reference services. Project and Information Management costs also include consulting, report production, systems costs and other administrative costs. Project & Information Management Staff, planning & administration Information services Total $ 3,555,000 1,481,000 5,036,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 64 of 196 Risk Management and Assurance Services: The function is responsible for all VANOC insurance coverage except employee benefits. Risk Management and Assurance Services provides a comprehensive risk management framework, content and reporting for all VANOC functions. In addition the function’s key activities include assurance services including internal audit, corporate policy management, claims management and venue safety oversight. Key budget items in addition to staffing include insurance premiums, advisory services and general administrative costs. Risk Management & Assurance Services Insurance & advisory services Staff, planning & administration Total $ 12,549,000 2,334,000 14,883,000 Procurement: The Procurement function provides centralized procurement services and contract management support for all VANOC functions. Additionally, the function leads the development, implementation and monitoring of VANOC’s procurement policies and procedures. The main components of the function budget are staffing and procurement advertising. Procurement Staff, planning & administration Total $ 4,004,000 4,004,000 CEO Office: The budget for this function includes support costs, IOC relations and programming costs associated with the CEO Office, such as the Olympic Truce. CEO Office Staff, planning & administration Total $ 2,608,000 2,608,000 Government and Partner Relations: The function is responsible for managing VANOC’s relationships and interactions with its key government partners. The function budget includes staffing and administrative costs related to these activities. Government & Partner Relations Staff, planning & administration Total $ 1,094,000 1,094,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 65 of 196 Venue Construction Administration: This area includes centralized administrative and staffing costs related to VANOC’s venue development program. Additionally, VANOC’s operations budget is contributing $6.8 million of VIK provided by VANOC’s domestic sponsors. The budget for this contribution is reflected in this function budget. Venue Construction Administration Staff, planning & administration Sponsor VIK used in venue construction Total $ 4,834,000 6,300,000 11,134,000 7.9 Project Contingency – Games Operations Project Contingency – Games Operations $100,000,000 This amount represents VANOC’s central project contingency for the Games operating budget. Contingency management is a key element of the Games project control strategy and is outlined in more detail in Section 9 and in Appendix 2. A contingency is required to address the risk that final estimates of expenditures and revenues are different from those currently projected assumed in the budget, including allowance for unplanned events either prior to or during Games time. VANOC fully expects to leave a positive financial legacy. The $100 million is adequate and represents 14 per cent of the uncommitted non-salary cash expenditures ($722 million). VANOC’s goal is to manage the project efficiently and continue to uncover new sources of revenues that will enable us to protect the contingency. However, the contingency is in place to draw upon when necessary. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 66 of 196 7.10 Paralympic Games Paralympic Games planning and delivery is integrated with the planning and delivery for the 2010 Olympic Winter Games. All function teams are responsible in their respective areas for delivering all the requirements for both the Olympic Games and the Paralympic Games. Functions have budgeted for the incremental costs to deliver the Paralympic Games within their respective function budgets. In identifying incremental Paralympic costs the overriding principle is one of direct cost. Only the costs directly attributable to the planning and delivery of the Paralympic Games have been included. Summarized below is the aggregate of these incremental costs captured within existing budgets. VANOC DIVISION Revenue, Marketing and Communications Sport, Paralympic Games and Venue Management Service Operations and Ceremonies Technology and Systems Human Resources, Sustainability and International Client Services Finance and Legal INCREMENTAL PARALYMPIC OPERATING COSTS $ 5,759,000 17,374,000 43,226,000 22,428,000 3,475,000 538,000 92,800,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 67 of 196 8. VENUE DEVELOPMENT (CONSTRUCTION) BUDGET The governments of Canada and British Columbia have agreed to jointly fund new construction and upgrades to existing venues for the 2010 Olympic and Paralympic Winter Games. The scope of venue construction includes the planning, construction and delivery of all competition venues required for the Olympic and Paralympic Winter Games on a timely basis and in a fashion consistent with VANOC’s values and pre-existing commitments. The current venue construction budget is as follows: Venue construction revenues Canada BC Total Venue construction expenditures Venues constructed by Partners with VANOC $ Contribution UBC Ice Hockey arena (UBC Winter Sports Centre) Richmond Speed Skating Oval Whistler Olympic and Paralympic (Athletes) Village Vancouver Olympic and Paralympic (Athletes) Village Whistler Broadcast and Press Centre Training Venues / Other Grants Venues constructed / upgraded by VANOC Hillcrest Curling Venue Whistler Athlete Centre Whistler Sliding Centre Whistler Nordic Competition Venue Cypress Freestyle and Snowboard Venue Whistler Alpine (Whistler Creekside) Hastings Park Skating Venue (Pacific Coliseum) Other Subtotal Contingency Less: Sponsor VIK Contribution TOTAL $ 290,000,000 290,000,000 580,000,000 38,445,000 63,110,000 37,500,000 30,000,000 3,000,000 7,400,000 38,000,000 16,000,000 104,900,000 119,740,000 15,800,000 27,635,000 23,700,000 6,270,000 531,500,000 55,300,000 (6,800,000) 580,000,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 68 of 196 Venue Construction Revenue Received Committed Balance to Go % Rec'd or Committed Contributions Canada and BC $580.0 100% [$ millions] 0 100 200 300 400 500 600 700 800 900 1,000 Percent of Venue Construction Revenue Rec'd or Committed 100% UBC Ice Hockey arena: The venue will host ice hockey during the Olympic Games and ice sledge hockey during the Paralympic Games. It is being built by UBC. The venue is scheduled for completion in summer 2008. Richmond Oval: The venue is being built by the City of Richmond. The venue will host speed skating. The venue is scheduled for completion in fall 2008 Whistler Olympic and Paralympic (Athletes) Village: The Village is being built in partnership with the Resort Municipality of Whistler (RMOW). VANOC’s contribution to the project is $37.5 million. The RMOW is funding the balance of the project, the costs of which will be recouped from the sale of housing units after the Games. The venue is scheduled for completion in fall 2009. Vancouver Olympic and Paralympic (Athletes) Village: The Vancouver Olympic and Paralympic Village is being built in partnership with the City of Vancouver. VANOC has granted $30 million towards the overall cost of the project. The COV has contracted the construction of the village to a third-party developer that will recoup the cost through the sale of housing units after the Games. The venue is scheduled for completion in fall 2009. Whistler Broadcast and Press Centre: This venue will be used as a broadcast and press centre during the Games. VANOC has made a contribution towards the upgrading of the facility, the Whistler Conference Centre, by Tourism Whistler. Training Venues / Other Grants: The budget includes VANOC contributions towards the upgrades of the Trout Lake and Killarney ice facilities in east Vancouver, both of which will be used as training locations for various sports during the Games. In addition the budget includes a grant to the RMOW. Hillcrest Curling Venue: The venue is being built in partnership with the City of Vancouver. It will host curling during the Olympic Winter Games and wheelchair curling during the Paralympic Winter Games. VANOC’s contribution is $38.0 million. The venue is scheduled for completion in fall 2008. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 69 of 196 Whistler Athlete Centre: The venue is being built in conjunction with the Whistler Olympic and Paralympic Village. Venue construction is VANOC’s responsibility and will be used to house athletes training in Whistler both pre-, during and post-Games. Whistler Sliding Centre: The Whistler Sliding Centre will host bobsleigh, luge and skeleton events. VANOC is responsible for the venue’s construction which is scheduled for completion by the end of 2007. VANOC will operate the venue up to, and including, Games time, while the Whistler Legacies Society will own and operate the venue post-Games. Whistler Nordic Competition Venue: The venue will host cross-country skiing, Nordic combined, ski jumping and biathlon events during the Olympic Winter Games and cross-country skiing and biathlon during the Paralympic Winter Games. Located in the Callaghan Valley, the venue is scheduled for completion in fall 2007. VANOC is responsible for the construction of the venue and will operate the venue through to Games time. The Whistler Legacies Society will own and operate the venue post-Games. Cypress Freestyle and Snowboard Venue: The venue will host freestyle skiing and snowboard competitions. Scheduled for completion in fall 2007, the project is VANOC’s responsibility. Significant budget components include upgrades to the mountain’s snow-making systems, construction of the snowboard half-pipe and earthworks and landscaping to the snowboard and freestyle competition courses. The freestyle courses became the first 2010 Winter Games site to be competition-ready in November 2006. Whistler Alpine (Whistler Creekside): Located on Whistler Mountain, the alpine venue will host alpine skiing events. The budget includes upgrades to the snow-making capabilities on the course and course improvements including earthworks and landscaping. The venue is scheduled for completion in fall 2007. Hastings Park Skating Venue (Pacific Coliseum): The venue will host figure skating and short track speed skating. The project budget includes allowances for upgrades to the venue including expansion to an international-size ice surface and upgrades to the ice plant. The venue is scheduled for completion by the end of 2007. Other: Includes amounts for certain BC Place Stadium improvements, sustainability enhancements at various venues and general venue program administration and overhead costs. Venue Construction Contingency: The venue construction budget currently contains its own current central contingency of $55.3 million to offset any risks still inherent in the completion of the various projects. This contingency is separate from the $100 million Games operating contingency. It is expected that by the completion of all of the venue projects, most of the venue contingency will be used. Utilization of the contingency is governed by the Performance and Accountability Agreement with the Province of BC and conditions placed on VANOC by the Government of Canada. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 70 of 196 Sponsor VIK Contribution: The VANOC Operations budget is contributing $6.8 million of VIK supplied by its sponsors. 9. GAMES OPERATIONS CONTINGENCY MANAGEMENT Contingency management is a key element of the Games project control strategy and is outlined in more detail in Appendix 2. An operating project contingency is required to address the risk that final expenditures and revenues will be different from those currently projected in the budget, including allowance for unplanned events either prior to, or during, the Games. The amount takes into consideration the level of project complexity and length of planning horizon to Games time. Of the $1.63 billion Games operating budget, there is about $722 million in uncommitted cash requirements. The contingency represents about 14 per cent of this amount. The budget also shows about $505 million in forecasted but not yet uncommitted revenues. The $100 million contingency thus represents about 8 per cent of the combined uncommitted cash expenditures and revenues. We believe this is a healthy level of budget protection. Over the next three years, the level of contingency will change as projections become more certain. A residual contingency balance will be carried into Games time to address unexpected costs arising from weather and other uncontrollable elements. Contingency is also needed in order to protect against significant unplanned events. Our goal is to preserve as much of this contingency as possible as we head toward the delivery of the Games. We fully intend to leave a positive financial legacy. This will be achieved by an unrelenting pursuit of new and creative revenue opportunities, and tight controls over spending. 9.1 Cash flows Summary cash flows associated with the project are contained in the Consolidated Function Budget Summary in the following tables. In developing the estimated cash flows, it was assumed that venue funding would match expenditures, a position consistent with the intentions of the funding partners. The timing of operating and venue construction expenditures are as developed during the budgeting process. Timing of revenue is less easily forecast as it depends on the completion of sponsorship and other contracts. It is also dependent on third parties such as the IOC. The timing or advancements of single contracts can significantly impact cash flows. A line of credit has been established with RBC Financial to address the cash requirements arising from the temporary mismatch of incoming and outgoing cash flows. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 71 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 72 of 196 10. BUDGET SCHEDULES Schedule 1 – VANOC Business Plan – Budget Summary: Operations (April 2007) Schedule 2 – VANOC Business Plan – Budget Summary: Venue Development (April 2007) Schedule 3 – VANOC Business Plan – Consolidated Budget Cashflows (April 2007) Schedule 4 – VANOC Business Plan – Operations Budget by Department Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 73 of 196 VANOC BUSINESS PLAN BUDGET SUMMARY – April 2007 OPERATIONS To 2006 Revenue IOC Contribution Less – cost of providing OBS Service IOC Net Contribution Other IOC Revenue IOC International Sponsorship Program Domestic Sponsorship Ticketing Licensing & Merchandising Paralympic Revenue Other Revenue Total Revenue Less: Marketing Rights Royalties NET REVENUE Function Sponsorship Sales & Servicing Licensing & Merchandising Commercial Rights Management Ticketing Communications Community Relations Editorial Services Media Relations Internet Management Brand & Creative Services Torch Relay Marketing and Communications Sport Paralympic Planning Medical Services Anti-Doping NOC/NPC Services Venue Management Event Services Sport, Paralympic Games and Venue Mgmt. Look of the Games Overlay Food and Beverage 3,116,000 620,000 433,000 2,142,000 1,141,000 278,000 368,000 616,000 2,330,000 21,000 11,065,000 2,618,000 108,000 196,000 37,000 41,000 879,000 2,954,000 821,000 483,000 1,168,000 875,000 1,887,000 822,000 614,000 827,000 3,856,000 274,000 14,581,000 3,718,000 309,000 587,000 262,000 534,000 20,402,000 418,000 26,230,000 377,000 3,833,000 132,000 5,383,000 1,170,000 972,000 1,741,000 1,260,000 3,287,000 1,165,000 769,000 1,707,000 4,408,000 812,000 22,674,000 15,674,000 512,000 867,000 763,000 1,162,000 8,365,000 837,000 28,180,000 1,078,000 4,873,000 517,000 4,975,000 1,907,000 1,042,000 2,889,000 1,201,000 2,618,000 1,755,000 966,000 1,707,000 3,299,000 7,679,000 30,038,000 15,805,000 980,000 1,558,000 1,416,000 8,596,000 15,864,000 2,880,000 47,099,000 6,603,000 27,786,000 838,000 4,756,000 2,707,000 1,105,000 3,285,000 915,000 1,686,000 6,422,000 896,000 2,587,000 1,695,000 22,013,000 48,067,000 19,578,000 720,000 6,565,000 1,642,000 5,745,000 43,131,000 3,667,000 81,048,000 10,837,000 95,912,000 34,943,000 2007 2008 Years ended July 31 2009 SCHEDULE 1 2010 2011 2012 Total 9,040,000 (2,127,000) 6,913,000 4,000 46,463,000 3,404,000 1,292,000 58,076,000 (20,320,000) 37,756,000 125,669,000 (29,574,000) 96,095,000 16,649,000 118,470,000 1,115,000 800,000 400,000 233,529,000 (21,172,000) 212,357,000 102,688,000 (24,166,000) 78,522,000 20,913,000 106,807,000 4,013,000 1,600,000 800,000 212,655,000 (23,682,000) 188,973,000 143,198,000 (33,700,000) 109,498,000 60,968,000 149,152,000 141,273,000 10,258,000 9,200,000 33,308,000 513,657,000 (37,863,000) 475,794,000 199,105,000 (88,433,000) 110,672,000 35,000,000 102,870,000 302,965,000 90,581,000 27,236,000 28,400,000 71,202,000 768,926,000 (78,483,000) 690,443,000 18,521,000 17,622,000 3,500,000 22,021,000 (8,502,000) 13,519,000 17,622,000 (7,195,000) 10,427,000 579,700,000 (178,000,000) 401,700,000 35,000,000 201,404,000 760,000,000 231,854,000 46,026,000 40,000,000 110,502,000 1,826,486,000 (197,217,000) 1,629,269,000 2,000 21,184,000 7,225,000 4,035,000 9,083,000 6,393,000 10,619,000 10,442,000 3,613,000 7,446,000 15,588,000 30,799,000 126,427,000 57,393,000 2,629,000 9,773,000 4,120,000 16,078,000 88,641,000 7,802,000 186,436,000 18,936,000 134,689,000 36,430,000 2,000 3,879,000 41,000 2,285,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 74 of 196 VANOC BUSINESS PLAN BUDGET SUMMARY – April 2007 OPERATIONS To 2006 2007 2008 Years ended July 31 2009 SCHEDULE 1 2010 2011 2012 Total Olympic and Paralympic Villages Accommodation Security Integration Transportation Logistics Snow Removal, Cleaning & Waste Cultural Olympiad Ceremonies Broadcast Integration Press Operations Government Services Integration Service Operations and Ceremonies Energy Services Technical Infrastructure Information Systems Timing and Scoring, Results Internet (Technical) Accreditation Technology and Systems Human Resources Workforce Sustainability & Aboriginal Participation International Client Services Human Resources and Sustainability Legal Services Administration Finance Project and Information Management Risk Management & Assurance Services Procurement CEO Office Government & Partner Relations Venue Development Administration Finance and Legal Project Contingency Total Operating Expenses Net Surplus (Deficit) 432,000 639,000 31,000 989,000 39,000 22,000 648,000 1,192,000 29,000 325,000 6,672,000 220,000 5,503,000 333,000 131,000 646,000 973,000 404,000 2,809,000 1,334,000 172,000 967,000 846,000 216,000 475,000 844,000 14,028,000 7,295,000 38,352,000 1,825,000 6,023,000 383,000 357,000 54,235,000 8,177,000 945,000 4,376,000 712,000 14,210,000 2,687,000 11,997,000 3,942,000 1,279,000 2,101,000 732,000 421,000 183,000 5,619,000 28,961,000 1,012,000 1,363,000 858,000 4,041,000 3,309,000 431,000 1,712,000 1,046,000 327,000 1,184,000 960,000 22,711,000 2,944,000 49,382,000 2,170,000 12,343,000 1,425,000 963,000 69,227,000 9,675,000 2,958,000 3,640,000 1,042,000 17,315,000 2,939,000 5,075,000 3,956,000 776,000 2,140,000 700,000 508,000 316,000 1,800,000 18,210,000 10,000,000 2,523,000 1,527,000 1,555,000 10,800,000 13,223,000 809,000 3,007,000 21,541,000 1,495,000 1,852,000 1,040,000 94,599,000 448,000 76,007,000 1,382,000 22,437,000 878,000 3,840,000 104,992,000 12,844,000 5,399,000 2,982,000 1,948,000 23,173,000 3,013,000 5,547,000 5,168,000 871,000 4,338,000 1,046,000 538,000 328,000 21,219,000 18,812,000 7,458,000 105,470,000 24,637,000 8,059,000 13,711,000 39,707,000 21,309,000 6,736,000 780,000 409,590,000 36,000,000 98,221,000 558,000 22,366,000 3,174,000 3,440,000 163,759,000 46,548,000 24,992,000 2,742,000 4,934,000 79,216,000 2,294,000 4,102,000 4,556,000 762,000 5,217,000 949,000 465,000 257,000 530,000 25,832,000 23,314,000 10,306,000 124,109,000 43,072,000 9,493,000 20,045,000 64,332,000 23,376,000 10,247,000 3,949,000 548,130,000 46,907,000 267,512,000 6,268,000 63,169,000 6,044,000 8,600,000 398,500,000 91,545,000 34,601,000 15,653,000 11,345,000 153,144,000 15,379,000 38,902,000 23,592,000 5,036,000 14,883,000 4,004,000 2,608,000 1,094,000 11,134,000 116,632,000 100,000,000 530,000 47,000 53,000 6,187,000 13,701,000 307,000 1,913,000 2,709,000 18,630,000 4,341,000 12,102,000 4,734,000 1,348,000 1,087,000 577,000 676,000 10,000 3,715,000 28,590,000 100,000 600,000 600,000 105,000 79,000 836,000 400,000 20,849,000 30,000,000 350,750,000 125,044,000 18,602,000 60,000,000 860,282,000 (169,839,000) 1,020,000 400,000 75,023,000 (37,267,000) 152,245,000 60,112,000 188,317,000 656,000 2,252,000 11,267,000 400,000 10,027,000 1,629,269,000 0 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 75 of 196 VANOC BUSINESS PLAN BUDGET SUMMARY – April 2007 VENUE DEVELOPMENT To 2006 2007 2008 Years ended July 31 2009 2010 2011 SCHEDULE 2 2012 Total Canada BC Total Venue Development Revenue 72,090,000 81,000,000 153,090,000 123,430,000 134,350,000 257,780,000 81,600,000 64,310,000 145,910,000 12,880,000 10,340,000 23,220,000 290,000,000 290,000,000 580,000,000 UBC Ice Hockey Arena (UBC Winter Sports Centre) Richmond Speed Skating Oval Whistler Olympic and Paralympic (Athletes) Village Vancouver Olympic and Paralympic (Athletes) Village Training Venues / Other Grants Hillcrest Curling Venue Whistler Athlete Centre Whistler Sliding Centre Whistler Nordic Competition Venue Cypress Freestyle and Snowboarding Venue Whistler Alpine (Whistler Creekside) Hastings Park Skating Venue (Pacific Coliseum) Other Subtotal Contingency Less: Sponsor VIK Contribution Total Venue Development Expenditures 72,000 33,177,000 30,000,000 3,825,000 626,000 41,000 29,223,000 28,730,000 1,126,000 4,569,000 3,895,000 615,000 135,899,000 35,088,000 8,983,000 29,000,000 6,245,000 17,614,000 7,079,000 49,277,000 61,505,000 8,829,000 17,551,000 11,265,000 1,465,000 253,901,000 3,063,000 18,790,000 6,500,000 230,000 16,940,000 6,660,000 26,400,000 29,505,000 5,845,000 5,515,000 8,540,000 4,190,000 132,178,000 37,000,000 222,000 2,160,000 2,000,000 100,000 2,820,000 2,220,000 38,445,000 63,110,000 37,500,000 30,000,000 10,400,000 38,000,000 16,000,000 104,900,000 119,740,000 15,800,000 27,635,000 23,700,000 6,270,000 531,500,000 55,300,000 (6,800,000) 7,522,000 17,000,000 2,000,000 1,300,000 (700,000) 135,199,000 (3,500,000) 250,401,000 (2,600,000) 166,578,000 24,522,000 3,300,000 580,000,000 Net Surplus (Deficit) 17,891,000 7,379,000 (20,668,000) (1,302,000) (3,300,000) 0 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 76 of 196 VANOC BUSINESS PLAN CONSOLIDATED BUDGET CASHFLOWS – April 2007 Years ended July 31 2009 SCHEDULE 3 To 2006 2007 2008 2010 2011 2012 Total OPERATIONS Revenue Expenses Net 37,756,000 75,023,000 (37,267,000) 212,357,000 152,245,000 60,112,000 188,973,000 188,317,000 656,000 475,794,000 350,750,000 125,044,000 690,443,000 860,282,000 (169,839,000) 13,519,000 2,252,000 11,267,000 10,427,000 400,000 10,027,000 1,629,269,000 1,629,269,000 0 Cumulative cash (borrowings) (37,267,000) 22,845,000 23,501,000 148,545,000 (21,294,000) (10,027,000) 0 VENUES Revenue Expenses Net 153,090,000 135,199,000 17,891,000 257,780,000 250,401,000 7,379,000 145,910,000 166,578,000 (20,668,000) 23,220,000 24,522,000 (1,302,000) 3,300,000 (3,300,000) 580,000,000 580,000,000 0 Cumulative cash (borrowings) 17,891,000 25,270,000 4,602,000 3,300,000 0 TOTAL CASH (BORROWINGS) (19,376,000) 48,115,000 28,103,000 151,845,000 (21,294,000) (10,027,000) 0 * VIK is included in both revenue and expenses as incurred and therefore has no impact on net cash flow. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 77 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total Revenue IOC Contribution Less – cost of providing OBS Service IOC Net Contribution Other IOC Revenue IOC International Sponsorship Program Domestic Sponsorship Ticketing Licensing and Merchandising Paralympic Revenue Other Revenue TOTAL REVENUE Less : Marketing Rights Royalties NET REVENUE 9,040,000 (2,127,000) 6,913,000 4,000 46,463,000 3,404,000 1,292,000 58,076,000 (20,320,000) 37,756,000 125,669,000 (29,574,000) 96,095,000 16,649,000 118,470,000 1,115,000 800,000 400,000 233,529,000 (21,172,000) 212,357,000 102,688,000 (24,166,000) 78,522,000 20,913,000 106,807,000 4,013,000 1,600,000 800,000 212,655,000 (23,682,000) 188,973,000 143,198,000 (33,700,000) 109,498,000 60,968,000 149,152,000 141,273,000 10,258,000 9,200,000 33,308,000 513,657,000 (37,863,000) 475,794,000 199,105,000 (88,433,000) 110,672,000 35,000,000 102,870,000 302,965,000 90,581,000 27,236,000 28,400,000 71,202,000 768,926,000 (78,483,000) 690,443,000 579,700,000 (178,000,000) 401,700,000 35,000,000 201,404,000 760,000,000 231,854,000 46,026,000 40,000,000 110,502,000 1,826,486,000 (197,217,000) 1,629,269,000 18,521,000 17,622,000 3,500,000 22,021,000 (8,502,000) 13,519,000 17,622,000 (7,195,000) 10,427,000 Sponsorship Sales & Servicing Staff, planning & administration Sponsor conferences, recognition and events Function Total Licensing & Merchandising Staff, planning & administration Function Total Commercial Rights Management Staff, planning & administration Function Total Ticketing Staff, planning & administration Ticket Marketing Function Total 1,088,000 80,000 1,168,000 1,376,000 365,000 1,741,000 1,156,000 1,733,000 2,889,000 1,442,000 1,843,000 3,285,000 5,062,000 4,021,000 9,083,000 433,000 433,000 483,000 483,000 972,000 972,000 1,042,000 1,042,000 1,105,000 1,105,000 4,035,000 4,035,000 620,000 620,000 821,000 821,000 1,170,000 1,170,000 1,907,000 1,907,000 2,707,000 2,707,000 7,225,000 7,225,000 1,936,000 1,180,000 3,116,000 2,397,000 557,000 2,954,000 3,337,000 2,046,000 5,383,000 3,374,000 1,601,000 4,975,000 1,952,000 2,804,000 4,756,000 12,996,000 8,188,000 21,184,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 78 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Communications Staff, planning, events & administration Function Total Community Relations Staff, planning & administration Events and programs Function Total Editorial Services Staff, planning & administration Publications Function Total Media Relations Staff, planning & administration Function Total Internet Management Staff, planning & administration Services and content development Function Total Brand & Creative Services Staff, planning & administration Creative, design and production services Function Total 457,000 1,873,000 2,330,000 1,501,000 2,355,000 3,856,000 2,013,000 2,395,000 4,408,000 2,229,000 1,070,000 3,299,000 1,450,000 245,000 1,695,000 455,000 161,000 616,000 198,000 629,000 827,000 374,000 1,333,000 1,707,000 651,000 1,056,000 1,707,000 579,000 2,008,000 2,587,000 368,000 368,000 614,000 614,000 769,000 769,000 966,000 966,000 896,000 896,000 137,000 141,000 278,000 283,000 539,000 822,000 452,000 713,000 1,165,000 555,000 1,200,000 1,755,000 378,000 6,044,000 6,422,000 727,000 414,000 1,141,000 1,110,000 777,000 1,887,000 1,544,000 1,743,000 3,287,000 1,600,000 1,018,000 2,618,000 1,048,000 638,000 1,686,000 2,142,000 2,142,000 875,000 875,000 1,260,000 1,260,000 1,201,000 1,201,000 915,000 915,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 6,393,000 6,393,000 6,029,000 4,590,000 10,619,000 1,805,000 8,637,000 10,442,000 3,613,000 3,613,000 2,000 2,000 2,257,000 5,189,000 7,446,000 7,650,000 7,938,000 15,588,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 79 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Torch Relay Staff, planning & administration Olympic Torch Relay Paralympic Torch Relay Function Total 21,000 186,000 88,000 696,000 116,000 2,361,000 4,851,000 467,000 7,679,000 4,035,000 16,110,000 1,868,000 22,013,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 7,299,000 21,165,000 2,335,000 30,799,000 21,000 274,000 812,000 REVENUE, MARKETING & COMMUNICATIONS 11,065,000 14,581,000 22,674,000 30,038,000 48,067,000 2,000 126,427,000 Sport Sport staff, planning & administration Alpine Sports Freestyle and Snowboarding Ice Sports Nordic Sports Sliding Sports Sport Services Sport Venue Production Pre-Games Operations Function Total Paralympic Planning Staff, planning & administration Function Total Medical Services Staff, planning & administration Medical Services Function Total 196,000 480,000 107,000 587,000 715,000 152,000 867,000 1,147,000 411,000 1,558,000 1,094,000 5,471,000 6,565,000 3,632,000 6,141,000 9,773,000 108,000 108,000 309,000 309,000 512,000 512,000 980,000 980,000 720,000 720,000 2,629,000 2,629,000 860,000 82,000 32,000 339,000 250,000 223,000 832,000 409,000 592,000 240,000 681,000 783,000 421,000 564,000 28,000 408,000 7,508,000 1,745,000 1,072,000 2,134,000 1,248,000 1,228,000 331,000 427,000 3,135,000 2,456,000 3,896,000 2,473,000 1,064,000 1,514,000 840,000 340,000 (1,332,000) (27,000) 9,527,000 1,559,000 1,063,000 3,459,000 4,989,000 2,444,000 9,985,000 4,446,000 15,515,000 7,199,000 4,019,000 7,597,000 6,188,000 2,618,000 3,718,000 15,674,000 15,805,000 19,578,000 57,393,000 196,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 80 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Anti-Doping Staff, planning & administration Services and equipment Function Total NOC/NPC Services Staff, planning & administration Servcies and programs Athlete support grants Function Total Venue Management Staff, planning & administration Venue use agreements Test Events Function Total Event Services Staff, planning & administration Function Total 418,000 418,000 837,000 837,000 2,880,000 2,880,000 3,667,000 3,667,000 879,000 1,352,000 19,050,000 2,907,000 5,458,000 879,000 20,402,000 8,365,000 5,228,000 10,636,000 15,864,000 43,131,000 4,503,000 38,628,000 41,000 529,000 3,000 2,000 534,000 1,146,000 14,000 2,000 1,162,000 1,676,000 880,000 6,040,000 8,596,000 1,624,000 1,533,000 2,588,000 5,745,000 37,000 164,000 98,000 262,000 375,000 388,000 763,000 626,000 790,000 1,416,000 516,000 1,126,000 1,642,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 1,718,000 2,402,000 4,120,000 37,000 5,016,000 2,430,000 8,632,000 16,078,000 41,000 14,869,000 57,678,000 16,094,000 88,641,000 7,802,000 7,802,000 SPORT, PARALYMPIC GAMES & VENUE MGMT. 3,879,000 26,230,000 28,180,000 47,099,000 81,048,000 186,436,000 Look of the Games Staff, planning & administration Look – graphics, hardware and structures Wayfinding – signage Function Total 41,000 232,000 95,000 50,000 377,000 828,000 250,000 1,078,000 1,490,000 4,063,000 1,050,000 6,603,000 1,414,000 7,773,000 1,650,000 10,837,000 4,005,000 11,931,000 3,000,000 18,936,000 41,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 81 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Overlay Staff, plannning, design, permits and administration City Venues – comp venues City Venues – non-comp, training & support venues Mountain Venues – comp venues Mountain Venues – non-comp & support venues Villages Overlay – Scope & Reconciling Allowance Function Total Food & Beverage Staff, planning & administration Kitchen Outfitting Athlete Catering Venue Buildout Workforce Catering Function Total Olympic & Paralympic Villages Staff, planning & administration Housekeeping International Plaza & Events Rooms Division – FF&E, supplies Support Services Function Total Accommodation Staff, planning & administration Workforce, officials & other accommodation Accommodations – Booking fees & recoveries Media accommodation system Function Total 639,000 941,000 32,000 1,419,000 (56,000) 1,744,000 (217,000) 1,660,000 17,152,000 432,000 646,000 1,012,000 2,523,000 5,050,000 3,243,000 2,569,000 6,438,000 3,919,000 21,219,000 132,000 517,000 838,000 1,349,000 5,464,000 9,973,000 2,811,000 15,346,000 34,943,000 2,285,000 3,643,000 190,000 4,873,000 5,996,000 5,426,000 2,948,000 6,737,000 1,354,000 5,325,000 5,231,000 21,702,000 11,792,000 30,468,000 5,418,000 21,301,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 22,028,000 27,318,000 14,740,000 37,205,000 6,772,000 26,626,000 2,285,000 3,833,000 4,873,000 27,786,000 95,912,000 134,689,000 2,836,000 5,464,000 9,973,000 2,811,000 15,346,000 36,430,000 132,000 517,000 838,000 9,663,000 3,243,000 2,569,000 6,438,000 3,919,000 25,832,000 432,000 646,000 1,012,000 2,523,000 6,403,000 16,911,000 639,000 973,000 1,363,000 1,527,000 18,812,000 23,314,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 82 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Security Integration Staff, planning & administration Site Security Function Total Transportation Staff, planning & administration Bus Systems Fleet Systems Parking Traffic Management Paralympics Function Total Logistics Staff, planning & administration Freight Distribution Warehouse FF&E Function Total Snow Removal, Cleaning & Waste Staff, planning & administration Cleaning Waste Management Snow Removal Function Total Cultural Olympiad Cultural Olympiad Function Total 648,000 648,000 967,000 967,000 1,712,000 1,712,000 3,007,000 3,007,000 13,711,000 13,711,000 22,000 172,000 431,000 809,000 679,000 3,807,000 901,000 2,672,000 8,059,000 39,000 1,134,000 150,000 50,000 1,827,000 191,000 219,000 469,000 603,000 3,309,000 3,936,000 356,000 1,979,000 2,367,000 4,585,000 13,223,000 9,215,000 1,448,000 3,289,000 5,879,000 4,806,000 24,637,000 989,000 1,221,000 1,588,000 2,159,000 1,882,000 5,617,000 670,000 4,452,000 11,074,000 51,702,000 24,310,000 6,191,000 1,800,000 10,393,000 105,470,000 31,000 404,000 858,000 955,000 600,000 1,555,000 737,000 6,721,000 7,458,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 2,985,000 7,321,000 10,306,000 31,000 404,000 858,000 61,000 989,000 2,809,000 4,041,000 10,800,000 21,060,000 52,372,000 32,232,000 6,191,000 1,800,000 10,454,000 124,109,000 530,000 16,151,000 2,145,000 5,537,000 9,245,000 9,994,000 43,072,000 39,000 1,334,000 530,000 2,113,000 3,807,000 901,000 2,672,000 9,493,000 22,000 172,000 431,000 809,000 20,045,000 20,045,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 83 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Ceremonies Olympic Ceremonies Paralympic Ceremonies Function Total Broadcast Integration Staff, planning & administration Host Broadcast Paralympics Main Media Centre Function Total Press Operations Staff, planning & administration Contracted Services Function Total Government Service Integration Staff, planning & administration Function Total 325,000 325,000 844,000 844,000 960,000 960,000 1,040,000 1,040,000 780,000 780,000 475,000 1,183,000 1,000 1,184,000 1,791,000 61,000 1,852,000 4,012,000 2,724,000 6,736,000 29,000 216,000 327,000 495,000 1,000,000 627,000 3,000,000 17,682,000 21,309,000 1,152,000 40,000 1,192,000 809,000 37,000 846,000 1,009,000 37,000 1,046,000 19,178,000 2,363,000 21,541,000 36,332,000 3,375,000 39,707,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 58,480,000 5,852,000 64,332,000 1,694,000 4,000,000 17,682,000 23,376,000 29,000 216,000 327,000 1,495,000 7,461,000 2,786,000 10,247,000 475,000 3,949,000 3,949,000 SERVICE OPERATIONS AND CEREMONIES 6,672,000 14,028,000 22,711,000 94,599,000 409,590,000 530,000 548,130,000 Energy Services Staff, planning & administration Energy infrastructure and consumption Other power costs Function Total 220,000 495,000 6,800,000 394,000 2,550,000 448,000 1,520,000 19,000,000 15,480,000 36,000,000 3,077,000 28,350,000 15,480,000 46,907,000 220,000 7,295,000 2,944,000 448,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 84 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Technical Infrastructure Staff, planning & administration Games systems and integration Hardware, software & systems delivery Venue technology Telecommunications Information Security Function Total Information Systems Staff, planning & administration Business systems Function Total Timing & Scoring, Results Staff, planning & administration Results services & equipment Function Total Internet (Technical) Staff, planning & administration Technical services and equipment Function Total Accreditation Staff, planning & administration Systems and services Function Total 343,000 14,000 357,000 740,000 223,000 963,000 1,836,000 2,004,000 3,840,000 2,163,000 1,277,000 3,440,000 131,000 143,000 240,000 383,000 379,000 1,046,000 1,425,000 418,000 460,000 878,000 273,000 2,901,000 3,174,000 351,000 5,672,000 6,023,000 1,000,000 11,343,000 12,343,000 2,586,000 19,851,000 22,437,000 2,515,000 19,851,000 22,366,000 208,000 125,000 333,000 855,000 970,000 1,825,000 1,399,000 771,000 2,170,000 1,312,000 70,000 1,382,000 558,000 1,056,000 2,584,000 159,000 1,704,000 2,362,000 29,556,000 3,652,000 341,000 2,056,000 385,000 38,352,000 4,160,000 16,528,000 18,665,000 3,711,000 4,687,000 1,631,000 49,382,000 9,185,000 24,801,000 20,262,000 6,244,000 14,789,000 726,000 76,007,000 7,586,000 14,004,000 13,753,000 15,200,000 47,556,000 122,000 98,221,000 31,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 16,000 24,380,000 84,889,000 58,916,000 25,655,000 70,808,000 2,864,000 267,512,000 5,503,000 47,000 4,332,000 1,936,000 6,268,000 558,000 6,452,000 56,717,000 63,169,000 53,000 53,000 1,344,000 4,700,000 6,044,000 131,000 5,082,000 3,518,000 8,600,000 TECHNOLOGY AND SYSTEMS 6,187,000 54,235,000 69,227,000 104,992,000 163,759,000 100,000 398,500,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 85 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Human Resources Staff, planning & administration HR programs and services Additional Compensation Costs Function Total Workforce Staff, planning & administration Workforce programs & uniforms Function Total Sustainability & Aboriginal participation Staff, planning & administration Programs Function Total International Client Services Staff, planning & administration Services, Operations and Events Function Total 221,000 2,488,000 2,709,000 381,000 331,000 712,000 723,000 319,000 1,042,000 1,445,000 503,000 1,948,000 1,346,000 3,588,000 4,934,000 1,091,000 822,000 1,913,000 1,658,000 2,718,000 4,376,000 1,493,000 2,147,000 3,640,000 1,474,000 1,508,000 2,982,000 1,152,000 1,590,000 2,742,000 307,000 840,000 105,000 945,000 1,746,000 1,212,000 2,958,000 3,869,000 1,530,000 5,399,000 3,375,000 21,617,000 24,992,000 12,710,000 991,000 5,422,000 2,095,000 660,000 8,177,000 5,674,000 2,008,000 1,993,000 9,675,000 5,756,000 2,271,000 4,817,000 12,844,000 5,062,000 4,380,000 37,106,000 46,548,000 600,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 35,224,000 11,745,000 44,576,000 91,545,000 13,701,000 600,000 10,137,000 24,464,000 34,601,000 307,000 6,868,000 8,785,000 15,653,000 4,116,000 7,229,000 11,345,000 HUMAN RESOURCES & SUSTAINABILITY 18,630,000 14,210,000 17,315,000 23,173,000 79,216,000 600,000 153,144,000 Legal Services Staff, planning and outside legal services Board & committees Function Total 3,817,000 524,000 4,341,000 2,454,000 233,000 2,687,000 2,643,000 296,000 2,939,000 2,635,000 378,000 3,013,000 2,102,000 192,000 2,294,000 39,000 66,000 105,000 13,690,000 1,689,000 15,379,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 86 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Administration Office Facilities Office staff, services and administration Function Total Finance Staff, professional services & administration Interest and banking fees CFO Contingency Function Total Project & Information Management Staff, planning & administration Information Services Function Total Risk Management & Assurance Services Insurance and Advisory Services Staff, planning & administration Function Total Procurement Staff, planning & administration Function Total CEO Office CEO Support, including staff & administration Executive Team Function Total 676,000 421,000 508,000 538,000 465,000 577,000 577,000 732,000 732,000 700,000 700,000 1,046,000 1,046,000 949,000 949,000 728,000 359,000 1,087,000 1,506,000 595,000 2,101,000 1,630,000 510,000 2,140,000 3,829,000 509,000 4,338,000 4,856,000 361,000 5,217,000 753,000 595,000 1,348,000 727,000 552,000 1,279,000 654,000 122,000 776,000 757,000 114,000 871,000 664,000 98,000 762,000 2,447,000 2,287,000 2,672,000 1,270,000 2,993,000 963,000 3,418,000 1,750,000 3,156,000 1,400,000 86,000 750,000 7,772,000 4,330,000 12,102,000 7,187,000 4,810,000 11,997,000 3,418,000 1,657,000 5,075,000 3,425,000 2,122,000 5,547,000 2,706,000 1,396,000 4,102,000 79,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 24,587,000 14,315,000 38,902,000 79,000 400,000 14,772,000 8,820,000 4,734,000 3,942,000 3,956,000 5,168,000 4,556,000 836,000 400,000 23,592,000 3,555,000 1,481,000 5,036,000 12,549,000 2,334,000 14,883,000 4,004,000 4,004,000 2,608,000 676,000 421,000 508,000 538,000 465,000 2,608,000 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 87 of 196 VANOC BUSINESS PLAN Operations Budget by Function FY04-06 Government & Partner Relations Government and Partner Relations Function Total Venue Development Staff, planning & administration Sponsor VIK Function Total 3,715,000 619,000 5,000,000 5,619,000 500,000 1,300,000 1,800,000 10,000 10,000 183,000 183,000 316,000 316,000 328,000 328,000 257,000 257,000 2007 2008 2009 2010 2011 SCHEDULE 4 2012 Total 1,094,000 1,094,000 4,834,000 6,300,000 11,134,000 3,715,000 FINANCE & LEGAL 28,590,000 28,961,000 18,210,000 20,849,000 18,602,000 1,020,000 400,000 116,632,000 Subtotal - all expenditures Project Contingency – Operations Total expenditures 75,023,000 152,245,000 178,317,000 10,000,000 320,750,000 30,000,000 350,750,000 800,282,000 60,000,000 860,282,000 2,252,000 400,000 1,529,269,000 100,000,000 75,023,000 152,245,000 188,317,000 2,252,000 400,000 1,629,269,000 TOTAL EXPENDITURES TOTAL REVENUE SURPLUS (DEFICIT) 75,023,000 37,756,000 (37,267,000) 152,245,000 212,357,000 60,112,000 188,317,000 188,973,000 656,000 350,750,000 475,794,000 125,044,000 860,282,000 690,443,000 (169,839,000) 2,252,000 13,519,000 11,267,000 400,000 10,427,000 10,027,000 1,629,269,000 1,629,269,000 0 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 88 of 196 11. VANOC ORGANIZATIONAL STRUCTURE (CHART) Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 89 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 90 of 196 APPENDICES Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 91 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 92 of 196 12. APPENDIX 1: MARKETING AND SPONSORSHIP PLAN 1. OBJECTIVES VANOC’s marketing program has been created to generate sufficient revenue to fund an outstanding 2010 Olympic and Paralympic Winter Games. Specific financial targets are as follows: Domestic sponsorship revenue of $760 million, including sponsorship for the Torch Relays Ticket sales revenue of more than $230 million Licensing and merchandising net revenue of $46 million 2. DELIVERABLES This plan covers the majority of the revenue generating responsibilities of VANOC. The four functions within this plan, along with a summary of the primary responsibilities of each respective function, are as follows: Sponsorship Sales and Service Establish strategies for maximizing domestic sponsorship revenue through the targeting of quality companies in appropriate categories Execute the plan, estimated to include the completion of agreements with approximately 50 sponsors Develop and execute a sponsor service plan for both domestic and TOP sponsors to ensure sponsors receive positive returns on their investment Ticketing Establish strategies for optimizing ticket sales revenue, including the marketing, allocation and distribution of tickets Develop and execute strategies to ensure maximum usage of sold tickets to minimize empty seats at all sport events and ceremonies Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 93 of 196 Acquire ticket agency services as required to ensure the effective sale and distribution of tickets to the public and Olympic Family Conduct a ticket selling process that is fair and transparent, ensuring a positive experience for ticket buyers Licensing and Merchandising Develop and manage a comprehensive licensed merchandise program generating royalty revenue for VANOC and a wide range of quality products to consumers Develop a retail program for VANOC licensed products for both pre-Games and Games time sales Develop a coin program Commercial Rights Management Protect the Olympic and Paralympic brands by ensuring that all use of the Olympic and Paralympic brands in Canada is appropriately authorized Take steps to provide legal protection of all terms, brands and marks that invoke the Olympic Movement Investigate and take action against unauthorized brand uses using a fair and balanced approach 3. ASSUMPTIONS The following assumptions are key to the success of the marketing plan and the generation of the targeted level of revenue: The Canadian economy will remain relatively strong, with no recession, through Games time The Games will be embraced as “Canada’s Games,” based partly on the efforts of VANOC to engage the entire nation The image of the Olympic and Paralympic movements and brands will continue to be positive in Canada and worldwide Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 94 of 196 Ambush marketing will be prevented and the Olympic brand strongly protected through the implementation of new protective legislation. The Government of Canada has recently introduced such legislation. Vancouver 2010 will continue to be viewed positively by the public 4. BACKGROUND Marketing Plan Agreement (MPA2) A preliminary marketing plan was prepared in November 2004 as an appendix to the Marketing Plan Agreement (MPA2) with the IOC. The MPA2 sets out the rules, policies and procedures that must be followed in the execution of the marketing plan. It covers such elements as revenue and cost-sharing formulas, ambush marketing prevention obligations, responsibilities to TOP sponsors and category release procedures. This marketing plan adheres to the requirements of MPA2. MPA2 provides VANOC with the right to sell all marketing rights to the 2010 Olympic and Paralympic Winter Games and the Canadian Olympic Teams through 2012. Olympic marketing rights can only be sold for the Canadian territory. Olympic rights outside of Canada belong to the IOC and are licensed to respective National Olympic Committees. Joint Marketing Agreements VANOC has entered into joint marketing agreements with each of the COC and the CPC. In the agreement with the COC, VANOC acquired all the marketing rights of the COC and the Canadian Olympic Teams for the period 2005-2012. The COC will receive a percentage of the benefits generated by VANOC through sponsorship agreements in return for these rights. The maximum compensation the COC will receive under this agreement is $110 million. Based on sponsorship sales to date, and as targeted in this plan, it is estimated that the COC will receive the maximum amount of $110 million. Under the agreement with the CPC, VANOC has guaranteed CPC revenues at 2004 levels and will assist the CPC in selling Canadian Paralympic Team rights for the 2005-2012 period. VANOC has not actually acquired the marketing rights. In return for the revenue guarantee and marketing support, the CPC will offer VANOC Tier 1 sponsors the first right to acquire the CPC marketing rights in their product category. At the time of writing this plan, VANOC sponsors have entered into agreements with the CPC generating aggregate revenue in excess of VANOC’s guarantee thereby, eliminating VANOC’s exposure. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 95 of 196 TOP (The Olympic Partner Programme) Sponsorship Program The IOC manages a program of international sponsorships that provide worldwide marketing rights to certain corporations. This program generates revenue for the IOC and its partners including organizing committees, as well as ensuring a continuity of association and supply over several Games. The program is known as the TOP program. Agreements under the TOP program are generally tied to four-year periods, or quadrennials, to tie into the cycle of Olympic Games. The TOP VI program covers the Torino 2006 and Beijing 2008 Games. TOP VII covers the Vancouver and London Games. The IOC currently has 12 partners in the TOP VI program and one international sponsor. At the time of writing this plan, seven partners are confirmed for TOP VII. It is expected that most, but not all TOP partners from TOP VI will renew through TOP VII. The product categories granted to TOP sponsors are not available to VANOC in the Canadian sponsorship program. 5. IMPLEMENTATION STRATEGY To create an environment to be successful in achieving the revenue objectives in this plan, VANOC will: Create awareness and excitement, across Canada, of the Olympic and Paralympic movements and the 2010 Games Make the Games relevant to the entire country fostering the spirit of Canada’s Games Generate interest and excitement in the corporate community Target companies and industries that are profitable and can afford the required investment levels Create opportunities for sponsors to activate their sponsorships and maximize their return on investment throughout the entire term of the sponsorship agreements Be creative in developing unique activation programs that are tailored to each sponsor’s needs and objectives Protect the Olympic Brand and protect VANOC sponsors from ambush marketing activities, thereby ensuring sufficient funds are generated to host the Games and leave a positive legacy for amateur sport in Canada Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 96 of 196 Create a positive image and build a solid reputation of fiscal responsibility Sponsorship Sales and Service It is anticipated that VANOC will enter into 40 to 50 sponsorship agreements, most of which are expected to be exclusive in the product category to which sponsor belongs. There are three tiers of sponsors, with differences in the pricing within each tier. The Tier 1 category of sponsors is fully sold. For Tier 2 and Tier 3 categories, a variety of sales processes will be followed. Market circumstances will determine the way sales efforts proceed. The minimum level of investment required for entry into each sponsorship tier in return for Olympic and Paralympic marketing rights for the period ending December 31, 2012, has been set as follows: Tier 1 - $50 million Tier 2 - $15 million Tier 3 - $3 million Outside consultants or sports marketing firms will not be used to sell sponsorships. At the time of writing this plan, commitments have been obtained for $615 million in domestic sponsorships (81 per cent of the total target). Internal projections have been established as follows to increase this to the total target of $760 million. March 31, 2007 December 31, 2007 December 31, 2008 December 31, 2009 Tier 1 National Partners The sales program for National Partners is complete with six National Partners. This small, exclusive group will make significant financial investments with VANOC and will play major roles in taking the Games to every corner of Canada. The companies and categories comprising Tier 1 are: Bell Canada – Telecommunications Services Hbc – Department Stores/General Merchandise Retailer RBC Financial Group – Investment/Retail Banking General Motors – Motor Vehicles Petro-Canada – Fuel, Oil and Gas RONA – Home Improvement $615 million $665 million $745 million $760 million Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 97 of 196 Tier 2 Official Supporters The plan is to reach agreements with approximately 10 to 12 Tier 2 supporters. Agreements have been announced to date with the following companies: Air Canada – Airline British Columbia Lottery Corporation – Lotteries and Gaming Canadian Pacific – Freight Railway Services Insurance Corporation of British Columbia – Vehicle Insurance Jet Set Sports – Hospitality Services Ricoh Canada – Document Solutions Royal Canadian Mint – Numismatic and Circulation Coins Teck Cominco – Mining and Metals Tier 3 Official Suppliers The plan is to reach agreements with approximately 25 to 30 Official Suppliers. The majority of revenue in this tier will be in the form of VIK. The categories in this tier will be determined mainly by operational VIK requirements. To date, agreements have been announced with the following companies: Birks and Mayors Inc. – Jeweller Dow Canada – Heat Transfer and Insulation Materials EPCOR – Water Utility Haworth – Office Furniture Nortel – Converged Network Equipment Vincor – Wine Weston – Bread and Baked Goods Workopolis – Online Recruiting Ticketing The objectives of the ticketing program are to: Conduct the ticket sales program in an open, fair and customer-friendly manner Sell all tickets to sporting competitions and ceremonies Ensure that sold tickets are used, thereby eliminating empty seats at competitions Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 98 of 196 Tickets for the Olympic and Paralympic Games sport events and ceremonies will go on sale to the general public in Canada 18 to 24 months prior to the Games. Prior to the public on-sale date, sales to the Olympic Family will be conducted. Olympic Family groups include: Canadian and international sponsors, the IOC, IFs, and NOCs. To prepare for these sales processes, the following activities have or will be undertaken: Olympic Games Knowledge Management session with the IOC and TOROC ticketing experts Ticket pricing research including analysis of prices at several previous winter games and local market research Development of an Expression of Interest for a ticket services provider, and ultimate selection of ticketing services partner Meetings with Olympic Hospitality Advisory Group companies and TOP sponsors to get feedback on best practices and timeline development Development of ticket packaging options Licensing and Merchandising Licensed merchandise consists of products bearing the trademarks of VANOC and the Canadian Olympic Committee which will be available for sale in the retail market. They will also be purchased by VANOC sponsors to promote their association with the Olympic Games. The licensing and merchandising programs began shortly after the launch of the Official Emblem of the 2010 Olympic Winter Games in April 2005. The objectives of these programs are to produce royalty revenue, to promote the Vancouver 2010 Olympic and Paralympic Winter Games and to provide consumers with collectibles and souvenirs. The general process to be followed, to reach agreements with licensees, will be through the issuance of RFPs. The significant majority of licensed merchandise revenue at past Olympic Games has come from the apparel and pin categories. It is expected that VANOC will have the same experience. These have been the initial categories offered to licensees. To date, VANOC has announced licensing agreements with 20 Canadian companies in the following categories: hard good products and collectibles, including pins, ski and snowboard accessories, glassware, sunglasses, umbrellas, gloves, mitts, toques and activewear. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 99 of 196 Other steps to be taken in conjunction with the issuance of these licenses include the establishment of relationships and procedures with the Canada Border Services Agency to prevent illegal importation of products into Canada and the preparation and implementation of a security plan for the protection of licensed products. Commercial Rights Management VANOC’s Legal Services function and Commercial Rights Management team will work closely together to ensure that the appropriate steps are taken to protect intellectual property and ensure that unauthorized use of property is monitored, investigated and resolved wherever possible through amicable measures. Legal action will be a last resort. The Government of Canada has recently introduced legislation which is expected to strengthen the protection around the Olympic brand and facilitate effective protection of Olympic marks and associations. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 100 of 196 13. APPENDIX 2: PROJECT CONTROL AND DEFICIT AVOIDANCE PLAN 1. SCOPE Project control in the Olympic and Paralympic Games context refers to the processes by which the project can be managed to ensure that the overall event can be properly delivered on time and on budget. Project control ensures the many diverse parts of the Games organization are working together, that inefficiencies are minimized and that the standard of delivery is maintained at a high level. Budget management is a subset of project control. Budget management is largely a financial service, although by definition its success depends entirely on an ability to create an environment of respect for time and budget and an understanding of the extensive cross-function interrelationships and dependencies that exist in a Games organizing committee and with its many partners. Budget management processes at VANOC are aimed at matching expenditure levels to revenue, thereby achieving an ending position that sees expenditures remain at levels below revenues. The Games require certain minimum levels of expenditure to deliver the minimum acceptable facility and service levels. As the level of confirmed revenue increases, expenditures are managed such that resources are focused on areas of most impact and highest operational risk. Establishing which areas are most important is a role of the Executive Team and Board of Directors and takes into account pre-existing commitments and input from the IOC, IPC, IFs, IPFs and Canadian stakeholders. VANOC has established a structure of financial and budget controls designed to ensure the project is delivered within approved budget parameters. 2. OBJECTIVES AND DELIVERABLES The objectives of budget management include: Ensuring that the Games are delivered on budget and within financial policy parameters established by the organization Ensuring that function leaders have the tools and information to effectively manage the financial outcomes of their areas of responsibility Providing a control mechanism to identify and react to any potential deficit positions. A control mechanism that will trigger immediate corrective action in the event that a deficit is forecast at any time. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 101 of 196 Core responsibilities of budget management include: Budget creation Ongoing budget management, including financial reporting Financial policies and procedures Contingency management Deficit avoidance process Budget management will deliver the mechanisms and processes by which the highly complex work of planning and executing the Games will be conducted in an orderly and controlled fashion. Games planning does not lend itself easily to such an activity because: It is non-repetitive, with each step occurring once The deadline is absolutely fixed and immovable Competition for limited resources is strong The degree of outside influence and expectation from the IOC, IFs, IPC, government partners and stakeholders is very high There is a multitude of varied challenges and non-standard processes are a common occurrence 3. BACKGROUND Vancouver follows a rich tradition of host cities that have helped to establish processes to control their Olympic and Paralympic projects. While each version of the Games tends to become more complex, and while each city and country is presented with its own set of unique challenges, there are some proven techniques that can support an orderly conduct of the Games. VANOC has adopted a multi-faceted approach to tackle the challenges associated with planning the 2010 Games. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 102 of 196 Build a strong team VANOC has taken care to recruit talented professionals, who are accomplished in their areas of responsibility and committed to the responsible planning and operation of the Games. The VANOC team includes people with significant past Games and major event experience, which will greatly assist the planning and project control processes. Canada has a strong base of managers and leaders that are experienced in major events. A significant proportion of VANOC’s initial employees bring relevant Games or project experience. Where the needed expertise is not available locally, VANOC has sought it out internationally. Past Games The Salt Lake 2002 Winter Games provided Vancouver 2010 Bid Corporation and now VANOC planners a close look at a Winter Games in action. Many relationships established with Salt Lake organizers have contributed greatly to the knowledge base for VANOC. Salt Lake organizers have been generous sharing their time and expertise to assist VANOC. Similarly, relationships were established with the organizers of the Torino 2006 Games. The TOROC team was very helpful to VANOC. A number of visits to Torino took place to review financial systems and also to observe the Games. A core part of the budget management strategy will be to incorporate as much past learning as possible into VANOC plans and processes from both events. IOC and OGKM The IOC has developed a knowledge transfer service that shares with future organizers much of the information available from the Salt Lake 2002, Torino 2006, Sydney 2000 and Athens 2004 Games. This program included an extensive debrief on the Torino Games, held in Vancouver in the summer of 2006. VANOC has taken, and will continue to take, advantage of the extensive OGKM knowledge base as well as face-to-face meetings with Games experts. VANOC also will benefit from the experience and advice of the IOC Coordination Commission, under the leadership of René Fasel. VANOC is also contributing to the knowledge base of the OGKM system to assist future Games organizing committees. Other means The VANOC team has sought out Games information from other sources. These have included athletes, NOCs, IFs and others. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 103 of 196 4. STAKEHOLDERS Internal VANOC Executive Team – The Executive Team will be responsible for implementing and executing the entire project at VANOC. In so doing, the Executive Team must fully understand the overall plan and its required integration of activities. VANOC employees and volunteers – Actions taken by employees or volunteers of functions must be aligned with VANOC’s overall plan and required integration of activities. VANOC Board of Directors – Responsibility for oversight of VANOC, the Board and its Committees require consistent communication about VANOC’s plan and progress. The Audit Committee carries a high level of responsibility for the integrity of VANOC’s financial practices. The Finance Committee oversees and approves all major financial transactions. External Member partners and venue communities – Canada, BC, First Nations, Vancouver, Whistler, COC, CPC, Richmond and West Vancouver. These stakeholders have considerable interest in the overall success of the Games. Many are providing financial support or services back to VANOC. Government of British Columbia and the Government of Canada – Each of these partners is a significant investor in VANOC’s venue program and will have interests specific to that program. Government of British Columbia – having provided a guarantee to the IOC of a potential financial shortfall of VANOC, specifically in relation to any obligations it may have to the IOC, British Columbia has a special status respecting matters of project control and budget management. The public – The budget management plan will provide structure and accountability to decisionmaking and resource use as needed and required for an event of this scale. International Olympic Committee – The IOC will be able to assess VANOC’s overall progress through progress reporting. International Paralympic Committee – The IPC provides advice and guidance on the planning for the Paralympic Winter Games. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 104 of 196 5. IMPLEMENTATION STRATEGY Business planning as an iterative process No project of the size and complexity of the Olympic and Paralympic Games can be covered by a single business plan. Effective planning is an iterative process requiring constant and continuous refinement as time moves forward. The integrated plan is multi-faceted and covers a complex web of interrelated activities. Each has its own natural schedule and its own set of relationships with other parts of the plan. An effective business plan is not a document to be written and put on a shelf but is a living document that undergoes multiple reviews, updates and changes. New information is constantly fed into the plan as work reveals itself. This is true not only of the overall business plan, but also each function business plan, which will evolve over time as planning progresses. Vertical and horizontal financial transparency A key element of managing VANOC’s financial operations is ensuring that transparency exists in financial operations. Vertical transparency refers to openness from top to bottom of the organization from the Board of Directors to all staff. Vertical transparency ensures that decisions with financial impact are made from a place of knowledge regarding impacts. Horizontal transparency is openness across the organization. To be effective in managing their areas of responsibility, function managers need to know where they stand against their own budget targets. They must also be sufficiently aware of other areas of the organization so as to avoid silo-based decisions. Strong corporate governance Several committees of the Board of Directors have been established. The Board has established its basic governance structure. Two of the committees, the Audit and Finance Committees, play key roles in the budget management and control processes. Finance Committee reviews and approves budgets and approves significant changes thereto. The Finance Committee approves all contracts above a threshold level. In addition to its financial approval levels, Finance Committee considers matters of risk facing VANOC. The Audit Committee plays a strong role in addressing matters of finance and risk. It reviews all internal and external audit reports and considers issues of internal financial control. Integration of function business managers into organization VANOC employs a team of function business managers to implement its financial controls and services throughout the organization. This model has been used successfully at past Olympic Games and also in Canadian projects, including EXPO 86, the Victoria 1994 Commonwealth Games and the Winnipeg 1999 Pan American Games. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 105 of 196 Function business managers maintain a direct reporting relationship within Finance through the director of financial planning. They also maintain a strong dotted line relationship to Games function heads. They are generally co-located with their function team, not within Finance. The mandate of function business managers is to combine financial control with financial service. The role of function business managers is based on the premise that control is more effectively conducted from within the function team rather than outside. Policy and procedure framework VANOC has established a comprehensive policy and procedural framework as part of its overall project control strategy, including budget management and financial authorities. Strong, clear policies that are well thought out and shared extensively throughout the organization are one of the key ingredients in creating an environment of control within VANOC. Other elements of the policy and procedural framework will include procurement policies and processes, central procurement support, legal and risk evaluation of material transactions. Budget management policies have been developed to facilitate the effective, ongoing control of financial resources. These processes are customized to reflect the project environment the Games represent and include the regular (no less frequently than quarterly) evaluation of every function’s financial position and forecast. Heavy emphasis is placed on understanding what future requirements are required in each area. Budgets are modified regularly to reflect new information. The budget always reflects the organization’s best estimate of its final outcome. We do not wait until a year or more has passed to adjust course or take corrective action. This active and engaged approach to budget management is a best practice amongst Games projects and was successfully used in the Salt Lake 2002 Games, EXPO 86, the Victoria 1994 Commonwealth Games and the Winnipeg 1999 Pan Am Games. Accurate, timely and comprehensive financial reporting All elements of financial planning require excellent financial reporting to keep function business managers and function heads well informed of the status of their projects. In the project environment, financial reporting must integrate both traditional and historical reports with forward-looking reports that incorporate outstanding commitments and forecasts. The pace of Games preparation demands that reporting be timely and accurate. It is also VANOC’s intention to include reports respecting the project Master Schedule with its regular financial reporting. These reports will allow for the immediate identification of any significant deviations from schedule if they occur. Further, senior management and the Board of Directors require comprehensive reporting to properly fulfill their oversight and planning roles. VANOC will ensure that its financial reporting meets these high standards. Financial reporting will include the following: Management Reports – Prepared monthly and comprising detailed reports of actual revenue and expenditures, outstanding commitments and forecasts at completion. With the adoption of this Business Plan, these reports will also include information about budget transfers. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 106 of 196 Board Reports – The Finance Committee meets monthly and receives, as part of its information package, a regular financial report that will show, at a summarized level, actuals, budgeted amounts and a discussion of key variances. The Board of Directors meets bimonthly and also receives a similar financial report. Partner Reports – On a regular basis, VANOC reports the progress of the Organizing Committee to its partners. Quarterly public reports – Consistent with its value of openness, VANOC has adopted the practice of releasing its financial results on a quarterly basis. Focus on areas of greatest financial risk Organizing committees undertake a tremendous range of transaction and business activities. The Finance team will focus its energies on areas of greatest financial risk to the organization. Through the use of its function business managers, Finance will identify, model and track key variables for each major function. Because of the diversity of an OCOG’s operations, drivers will differ for each function. Issues are identified for senior management action and escalated to Finance Committee as required. Manage risk VANOC faces a wide range of risks. These are addressed in the Risk Management Plan. A risk and assurance team has been put in place to properly identify and manage risk. Integration of key support functions VANOC has, or will have, a number of key support functions where the primary responsibility is not an area of Games delivery. Rather, the responsibility is in support of teams delivering the Games or in support of external requirements such as governance or control. These functions include Finance, Project Management, Procurement, Human Resources and Legal Services. The service functions will work in an integrated fashion to maximize the level of service provided while simultaneously affecting a strong degree of accountability and control. Past experience has demonstrated that great project services lead to better control. Deficit avoidance As the project moves from its foundation planning phase and into strategic and then operational planning, the rate and level of financial commitments escalate rapidly. This generally occurs around G-3 years through G-1 year. While all of the above strategies play a part in effecting financial and operational control over the project, a specific deficit avoidance strategy requires an additional layer of financial monitoring and action. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 107 of 196 Consistent and continuous updating of financial forecasts and budgets will be employed to ensure that careful attention is paid to financial performance. Regular analysis is conducted to match revenue commitments with expenditure commitments to ensure the latter does not get too far ahead of the former. The Vancouver 2010 Winter Games Budget is sufficiently detailed and understood by Finance to permit for changes as circumstances allow. Levels of service will be thoroughly understood. “Must-have” budget elements have been distinguished from ”nice-tohaves.” Timely, accurate and meaningful reporting and discussion will be provided to the Finance and Audit Committees, and to the Board of Directors as a whole. With the Finance Committee meeting monthly and the Audit Committee and Board of Directors meeting bimonthly, gaps between opportunities for discussion with the Board are not long. If troubles are on the horizon, senior management will know about them and the Board will be promptly informed with proposed actions to effect a solution. Remedial measures Ensuring a balanced Games budget in the context of Games planning is not something that will be achieved through the application of a formula or previously prescribed set of actions. Should a deficit appear in any area likely or probable, the circumstances around the projection must be analyzed. Consideration will be given to the set of factors causing a change in forecast and also to the point in project planning and/or execution; management will provide options to the VANOC Board to close any gap. By making sure that the circumstances underlying any potential deterioration of the organization’s financial position are well understood, financial and function managers are able to quickly assemble an appropriate plan to address the situation. The high degree of attention paid to financial results by management, the Board of Directors, government partners and the public ensure that careful attention is always paid to both historical and prospective results. Games Operations contingency management VANOC’s budget management policies and procedures address how contingency will be used to manage the overall operating budget of the Games. Contingency will be managed centrally by the Finance function working in conjunction with the Executive Team. The contingency balance in the Games operating budget is $100 million. This figure represents approximately 8 per cent of combined uncommitted non-salary cash expenditures ($722 million) and uncommitted revenues ($505 million) and a higher percentage (more than 14 per cent) of the remaining cash expenditures, excluding salaries. This level of contingency is considered adequate given the extensive level of planning that has gone into the budget estimates. Contingency management is a key element of the Games project control strategy. Contingency is required to address the risk that final expenditures and revenues are different from those currently assumed in the budget, including allowance for unplanned events either prior to or during Games time. The amount takes into consideration the level of project complexity and Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 108 of 196 length of planning horizon to Games time. Over the next three years the level of contingency is expected to change as projections become more certain and either less contingency is needed or amounts are drawn from the central contingency. A residual Games operations contingency balance will be carried into Games time to address any unexpected costs arising from weather and other uncontrollable elements Contingency allocations may be required to address scope changes, cost changes or revenue shortfalls. Our goal is to preserve as much contingency as possible as we approach the delivery of the Games. This will involve aggressively pursuing new sources of revenues while maintaining strong discipline over VANOC expenditures. VANOC intends to leave a positive financial legacy. VANOC’s working budget will be monitored on an ongoing basis through a finance team that is integrated with function leaders. As new needs are identified or funds become available due to changed circumstances, these changes flow through the central contingency. Significant changes to project scope or budget require the approval of the Board of Directors. Expenditure commitments will be limited to those that are in budget and can be funded by known revenue commitments. An ongoing assessment of budget risk will be prepared by the Finance team. The purpose of the assessment will be to facilitate the appropriate allocation of Games operations contingency by tracking areas of budget concern that are not solidified to the extent of requiring a contingency allocation. Venue Construction contingency management VANOC’s venue development (construction) budget includes a contingency of $55.3 million. With more than two thirds of the total budget now spent or committed, and given the current state of planning and risk assessment, this level of contingency is considered sufficient. It is expected that portions of the contingency will be allocated to specific projects as the need is established and quantified. Allocations of contingency will be made in accordance with both VANOC financial policy (which requires Board approval) and the Performance and Accountability agreement between VANOC and the Province of BC. This agreement provides boundaries for the allocation of contingency over time that are in place to ensure that the total budget is not exceeded. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 109 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 110 of 196 14. APPENDIX 3: RISK MANAGEMENT PLAN 1. INTRODUCTION VANOC acknowledges that all activity carries an associated element of risk. It is essential for the Organizing Committee to manage risks at all levels of the organization because of the diverse activities which VANOC is required to undertake to accomplish its mission of successfully staging the Games in 2010, recognizing that it is not possible to transfer all risks through insurance policies, contracts or waivers. To be able to manage risks effectively, the Committee will need to identify, assess and address, at a minimum cost, all significant risks to VANOC. 2. SCOPE Risk management is critical to the success of VANOC. As a core management capability, all areas of the VANOC organization must practice risk management during the course of developing strategic plans, preparing operational plans and budgets, managing projects, writing contracts, making general decisions and setting up systems. The development, implementation and application of an effective risk management framework will enhance VANOC’s capability to achieve its goals, maximize opportunities and minimize losses. VANOC will strive for the continuous improvement of its risk management process. All employees, volunteers, secondees, co-located personnel, personal service contractors, consultants and directors share the responsibilities of risk management. Risk Management and Assurance Services will: facilitate and coordinate the effective identification, prioritization, treatment, and monitoring of all significant risks facing VANOC; purchase insurance to transfer risk as required; manage insurance claims; direct and coordinate loss control programs and contingency and emergency response planning; and provide assurance services (including Internal Audit). It will participate in operational readiness planning and exercises and the development and implementation of Games-time incident reporting and claims management systems, and oversee venue safety management and insurance claims management at Games time. 3. OBJECTIVES AND DELIVERABLES The Objectives of this Plan are: To establish a risk management framework, employing a balanced, systematic and proactive approach to managing risk and integrating this approach into VANOC’s culture To increase awareness of risk management at all levels of VANOC Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 111 of 196 To confirm the responsibility of all personnel for managing risks within their areas of responsibility To improve the quality of decision making and to safeguard assets (people, finances, property and reputation) through the application of risk management practices To develop and implement a framework and vocabulary for communicating and reporting risks The key deliverables of this plan are: Comprehensive and robust risk management framework, content and reporting Assurance services, including internal audit and internal consulting review reports All VANOC’s insurance coverage except employee benefits Key corporate policies Operational planning, Games-time insurance claims management, venue safety oversight 4. BACKGROUND The Multiparty Agreement requires that a risk management plan be part of the overall VANOC Business Plan. A preliminary strategic plan for risk management was written in 2005 as part of Version 1 of the VANOC Business Plan. It was designed to guide activities during the strategic planning phase of the Organizing Committee, and to be replaced by this Risk Management Plan. The Risk Management and Assurance Services function was established in March 2006 when the vice president of this area joined VANOC. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 112 of 196 5. IMPLEMENTATION STRATEGY Strategies Risk Management VANOC will develop, implement and maintain an enterprise-wide Risk Management (ERM) process which includes the systematic application of management policies, procedures and practices to the tasks of identifying, assessing, mitigating, monitoring and reporting on risk. VANOC will develop and support the culture, processes and accountability structures which facilitate the implementation of the ERM process. Risk Management and Assurance Services will document each stage of the ERM process. The vice president of this function will consider the use of external resources when the organization needs additional knowledge, skills and competencies to implement the ERM process. Risk management is an ongoing process and, as an integral part of VANOC’s culture, processes and accountability structures. It is a responsibility shared by all personnel at every level of the organization. Assurance and Internal Audit Services (Internal Audit) Internal Audit is an independent, objective assurance and internal consulting function designed to add value and improve VANOC’s operations. It will help VANOC accomplish its objectives by using a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. In June 2006, an Audit Charter and preliminary Audit Plan were submitted to, and approved by, the Audit Committee of VANOC’s Board of Directors. By way of the Audit Charter, the Audit Committee has given Internal Audit the right to audit the entire organization, and thus Internal Audit has free and unrestricted access to any and all VANOC records, information systems, properties and personnel in the course of its activities. The vice president of Risk Management and Assurance Services has regular in camera meetings with the Audit Committee. The Audit Plan sets out a schedule of internal audit and internal consulting review projects based upon key risks. Corporate Policy Development Policy development is of critical importance in a new and rapidly growing organization. It will link VANOC’s vision and strategies to our daily activities, provide general guidelines to decision makers and provide clarity and consistency when dealing with accountability issues and important issues and activities. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 113 of 196 Insurance Risks will be transferred through the purchase of multiple lines of insurance coverage, in keeping with prudent business practice, VANOC’s risk tolerance, the requirements of the Multiparty Agreement, the Host City Contract and various venue agreements. Operational Risk Management and Assurance Services, in consultation with Venue Management and other functions as appropriate, will establish the format, process and timing for the creation of contingency, business continuity and emergency response plans. It will engage external resources to assist with operational readiness planning and exercises. It will oversee venue safety management, and will design and operate a claims management system. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 114 of 196 15. APPENDIX 4: PROCUREMENT PLAN 1. INTRODUCTION The mission of the Procurement function is to ensure that VANOC obtains the best value for goods and services acquired through a process that is fair, transparent and open, to ensure timely delivery of all required goods and services, to ensure the rights of sponsors are protected and to integrate sustainability objectives of environmental performance, Aboriginal participation and social inclusion into procurement activities. Many of VANOC’s most important suppliers are its sponsors. Wherever possible, the first avenue of approach for major procurement needs is to assess whether the goods and/or services can be provided by an existing or new sponsor. This plan anticipates that more than $500 million worth of goods and services will be acquired as value in kind from sponsors. VANOC’s Marketing, Finance and Procurement teams work closely together to ensure that opportunities for acquiring goods and services through value in kind are identified and pursued. 2. BACKGROUND A centralized Procurement function has been created for the purpose of obtaining the best value for goods and services acquired through competitive processes. Based on volumes from the Salt Lake City 2002 Winter Games, VANOC can expect to issue approximately 7,000 purchase orders and 3,000 contracts for goods and services with a combined value of more than $1 billion. 3. SCOPE This Procurement Plan describes the services to be provided by a fully centralized servicebased Procurement function, the function’s objectives and deliverables, implementation strategy and its implementation schedule. The Plan and all associated policies, procedures and processes will support the requirements for both the Olympic and Paralympic Games before, during and after the 2010 Winter Games. The Plan will also be used for any procurement services required for Test Events. The Procurement function will strive to achieve the following performance outcomes: Goods and services required to stage a successful Games in 2010 have been acquired in a cost-effective and timely manner and to a high standard of quality VANOC has a reputation for delivering in a consistent and fair manner with suppliers and for scrupulously maintaining high standards of integrity in its procurement activities Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 115 of 196 The VANOC Procurement function has set the leadership example and operating model for use by future Olympic Games organizing committees and public and private sector organizations with respect to effective procurement where sustainability principles of environmental performance, Aboriginal participation and social inclusion have been integrated in procurement activities Maximum use is made of existing and potential value-in-kind opportunities. Major areas of responsibility for the Procurement function include: Establishing and managing procurement policies and procedures Procurement planning Strategic sourcing Managing the acquisition process Ensuring sponsorship and value-in-kind initiatives are integrated into procurement activities Developing, monitoring and reporting on procurement sustainability initiatives such as environmental performance, Aboriginal participation and social inclusion. Awarding contracts Contract administration and performance management Procurement will also acquire goods and services required to stage Test Events. Some of the Procurement staff may be assigned temporary non-procurement roles during Test Events that are similar to ones they will undertake during the Games. Key customers of the Procurement function include: Suppliers and potential suppliers Sponsors and Licensees Internal VANOC functions Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 116 of 196 General public VANOC Finance Committee and Board of Directors Member Partners and Stakeholders: Government of Canada, Four Host First Nations, Government of British Columbia, City of Vancouver, Resort Municipality of Whistler, Canadian Olympic Committee, Canadian Paralympic Committee, City of Richmond, District of West Vancouver While Procurement works closely with all internal functions to ensure the capital and operational needs of the Games are met on time, within budget and in the quality required, it relies on key functions such as Legal, Risk Management, Security Integration, Information Services and Finance to ensure it delivers on VANOC’s promise of open, fair and transparent competitive bidding processes. 4. OBJECTIVES AND DELIVERABLES The objectives and deliverables of the Procurement function are to: Maximize the value and quality of goods and services received for money spent through open, fair and transparent competitive processes Ensure purchased goods and services are delivered to the right location at the right time in the right quantity Employ ethical and professional procurement practices and standards and scrupulously avoid conflicts of interest Plan and schedule procurements in accordance with needs Integrate and advance VANOC’s sustainability principles of environmental performance, Aboriginal participation and social inclusion Ensure all goods and services are procured consistent with budget considerations and policies Utilize the most appropriate procurement process in relation to the value and complexity of each procurement Minimize financial and other risks associated with each procurement Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 117 of 196 Internally, these objectives will be met by: Consulting with internal functions and participating in early planning and forecasting of all goods or services required from the pre-Games to post-Games periods Maintaining open and frequent communications with all VANOC functions Work closely with Sustainability and Aboriginal Participation and Official Languages functions to identify opportunities for influencing suppliers to adopt or enhance their own sustainability practices and help VANOC meet its obligations and commitments. Externally, these objectives will be met by: Communicating major procurement opportunities for suppliers to bid or submit expressions of interest and/or proposals to VANOC by posting such opportunities on the VANOC and BC Bid websites Ensuring that every major procurement opportunity includes a review of the suppliers’ sustainability and/or Aboriginal participation opportunities by including a statement of VANOC’s sustainability principles and by requesting specific supplier involvement in sustainability initiatives in our bidding documents Including service performance levels and metrics in supply contracts for both goods and/or services Ensuring contract terms and conditions are performed by VANOC and supplier(s) to satisfactory completion 5. IMPLEMENTATION STRATEGY Key business strategies of the Procurement function include: Functioning as a centralized business unit within the Finance function Adopting best procurement practices in the acquisition of goods and services Providing coaching and training for all VANOC staff on procurement policies and processes Conducting fair, open and transparent procurement processes Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 118 of 196 Maximizing the value and quality of goods and services received for the money spent Minimizing cash purchase transactions by maximizing the utilization of sponsor VIK Conducting itself with the highest degree of ethics and integrity Arranging delivery of goods and services on time and to a high standard of quality Using benchmarks and metrics to track and measure procurement performance Advancing VANOC’s sustainability principles of environmental performance, Aboriginal participation and social inclusion Becoming a legacy model for future Games, and for Canadian business to follow Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 119 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 120 of 196 16. APPENDIX 5: HUMAN RESOURCES PLAN 1. INTRODUCTION The mission of the Human Resources division is to plan, deliver, train and retain high quality, volunteer and paid staff and contractors necessary to stage the 2010 Olympic and Paralympic Winter Games. Human Resources (HR) practices will be fair, equitable and transparent while being guided by best HR management practice and lessons learned from previous organizing committees. Through the MPA, VANOC is committed to creating a Workforce plan including an employment equity plan for all workforce. VANOC has developed a structure within the Human Resources and Workforce division that will streamline processes for recruiting, retaining and training the Workforce using a centralized management control system. The structure is simple yet effective, dividing Workforce into three main areas, Workforce Management, Planning and Operations. The recruitment of paid and volunteer workforce will be done by the same team using the same processes. The attraction strategy may be different but the process is the same. This will enable VANOC to leverage the expertise of the recruitment team and maximize efficiencies. The Workforce plan will be managed centrally and with quarterly divisional reviews. The VANOC Human Resources Plan will be managed in a creative and collaborative approach to maximize the secondment, VIK, co-op and volunteer opportunities within the Workforce plan. The operations and Games-time planning of Workforce will focus on training, retaining and recognizing pre-Games and Games-time Workforce. Redeployment of key members of the recruitment team and other functions within VANOC at Games time to the venues will ensure continuity and reduce the need for many temporary hired positions at Games time. This operational approach to Workforce management, planning and operations is designed enable flexibility and ensure readiness 30 days before the first volunteer must open the Olympic and Paralympic Villages. 2. SCOPE This plan summarizes the key strategies associated with the planning for Workforce requirements, recruitment and selection of paid and volunteer Workforce and the development and implementation of all required policies and procedures. A primary objective is to deliver Workforce and Human Resources major milestones and key deliverables according to the VANOC Master Schedule. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 121 of 196 3. OBJECTIVES The overall goal of VANOC Human Resources is to create: An engaged and inspired Workforce that together creates a positive legacy experience for BC, Canada and the world An aligned Workforce that understands its contributions to the mission and vision and who effectively model the attitude, behaviours and spirit of the Games as per VANOC values: team, trust, excellence, sustainability and creativity A committed Workforce that is passionate and optimistic about the Olympic and Paralympic Games A diverse, talented group of individuals that leverage and appreciate each other’s skills and abilities A Workforce which can boast ample bilingual resources to deliver on VANOC’s Official Languages commitment The Games-time goal of VANOC Human Resources is to have an integrated Workforce plan that ensures a one-team approach regarding recognition, training and overall engagement, so that the full team is motivated and driven to deliver extraordinary Games. In addition, this plan ensures optimal redeployment of all VANOC staff from pre-Games to Games-time roles to reduce the number of temporary positions at Games-time and maximize the talent and experience developed during the planning and readiness phase of this project. This plan will ensure systems will be developed and operational to deliver fully-trained, engaged and informed Games-ready workforce. 4. BACKGROUND This plan is influenced by the commitments made in the Vancouver 2010 Bid Book, Multiparty Agreement and Host City Agreement. The principles captured in those agreements form the basis of the philosophy and guiding principles for the Workforce Strategy: Sustainability Transparency Accessibility Equality Inclusivity Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 122 of 196 A Commitment to ensure the 2010 Winter Games are for all Canadians and that both of Canada’s Official Languages are used throughout the Games The composition of the Workforce will ensure a diverse group that is representative of Canada and that meets commitments with VANOC partners, including the Four Host First Nations (FHFN), the Government of Canada and sponsors. The desired culture of VANOC is “one team” to ensure it is clear to all function leaders that while HR takes the lead on defining the culture and developing leadership and team development programs, it is each leader’s responsibility to facilitate, nurture and develop the one-team culture within their respective division. Workforce has adopted this culture through the integration of Workforce and HR to maximize efficiencies of the function and streamline processes to reduce overall costs of recruitment, training and systems development. The unique combination and high volumes of recruitment, training and retention have shaped this integration plan, and has driven the team to look for efficiencies in every aspect of the operations, management and planning of the Workforce. Currently, the BC job market is the tightest it has been in more than 15 years. This tight labour market will increasingly become tighter as the Games approach. VANOC will compete with the industries that will support the Games (hospitality, tourism, transportation and retail), therefore, it will be necessary to employ creative ways to attract and retain the right people while still maintaining transparency, accessibility and inclusion for all Canadians. Canadians expect to have accessibility to the Games and in VANOC’s quest to build a stronger Canada and successfully deliver the Games, VANOC will recruit locally and nationally a diverse workforce providing access to opportunities for all Canadians. Where specific expertise is required, the Organizing Committee may target around the globe. 5. IMPLEMENTATION STRATEGY The Workforce and Human Resources functions will merge into one team – an integrated workforce model – to create a Games-ready model and streamline processes to maximize efficiencies in the areas of recruitment, training, recognition and systems reporting. This will be accomplished by implementing a three pillar structure comprised of: Workforce Operations This area will look after training, retention and recognition as well as scheduling assignment and of workforce at Games-time. The Workforce experience of the Games will be the main responsibility of this group, including uniform distribution, feeding, accommodations and any other activity that would impact the overall experience of the workforce. Retention and recognition will be a major focus for this group, both pre-Games and at Games time ensuring the workforce members feel valued and inspired to deliver extraordinary Games. Training and educating the workforce will be an ongoing process for this group and it has already begun with Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 123 of 196 leadership sessions and basic orientation. Effective training will ensure VANOC is able to provide an educated and informed Workforce at Games time for all functions. A detailed training strategy to facilitate this process is currently under development. Workforce Planning Workforce Planning will act in a cross-function role to ensure service levels are delivered across VANOC. This group will sit on cross-function Games-time planning groups, be responsible for systems and reporting (including Executive-required reports), all compensation to Games time, and Workforce Plan management. This will include maximizing VIK, secondment, co-op and volunteer positions to offset the need for hiring and increased costs. This is a very integral role in the overall success of the Workforce team, as this group will act as the conduit to the rest of the divisions. Workforce Management Workforce Management’s main responsibility will be attraction and recruitment of all workforce – paid and volunteer. Workforce Management will engage the community and ensure sponsors and the business community feel involved in the Games. Workforce Management will ensure the Games are accessible to all Canadians through our transparent recruitment process. This group will also engage the educational institutions and ensure VANOC has engaged the youth of British Columbia to experience the Games and feel part of the leading up to and during the 2010 Winter Games. Another role of this group will be to ensure adequate outplacement of the workforce as the Games come to a close. A plan has been developed to ensure the workforce remains engaged and motivated through the 2010 finish line. This activation will begin in 2009. The core elements of VANOC’s strategic human resources plan include: Defining the Culture VANOC culture has been established through the strong alignment of the Vision, Mission, Values and Guiding Principles, setting the stage for the tone and behavioural attributes of the 2010 Olympic and Paralympic Winter Games. This strategy has established a foundational framework to ensure all staff is part of one team. Workforce Strategy This defines the strategy for engaging and inspiring a workforce of paid staff and volunteers. This is the overarching strategy influencing an integrated approach to recruitment, training, recognition and the general treatment of an integrated workforce. Additionally, the strategy guides the hiring, training, motivating, retaining and decommissioning of all paid staff and volunteers of the 2010 Olympic and Paralympic Winter Games Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 124 of 196 Workforce Recruitment Strategy This defines the parameters for seeking and selecting, locally and nationally, a diverse workforce – both paid and volunteer. This strategy ensures access to opportunities for all Canadians while confirming that global hiring will be used for specialized skills. Workforce Engagement and Retention Strategy This is the overarching strategy which links recruitment, compensation, recognition, employee communication, training, socialization and health and wellness to the motivation of employees. Key retention tactics are defined in the pre-Games and Games periods. Workforce Communications In close partnership with the VANOC Communications team, a workforce communications plan is being developed and executed for all staff, volunteers, contractors and partners. This plan includes intranets to serve the needs of the Games workforce and events that inform, inspire and motivate the workforce in the preparation, staging and windup of the Games. Leadership, Team and Culture Development Strategy A subset of the Workforce engagement and retention strategy, this is the operational strategy for delivering one of VANOC’s strategic objectives: “build a team that passionately lives our values in order to achieve extraordinary performance.” Legacy of Safety Program This is an operating program that frames the foundation to ensure a safe and healthy workplace as well as a safety-conscious workforce. Technology Strategy With a focus on early development and collaboration with sponsors, VANOC is building the infrastructure including technology interfaces, databases, distribution systems and scheduling systems that will ensure members of the paid and volunteer workforce for both the Olympic and Paralympic Games are registered, clothed, skilled, accredited and scheduled according to Games requirements. 6. OUTCOMES The Human Resources division has identified a number of desired outcomes, from a workforce perspective for the 2010 Winter Games. They include: Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 125 of 196 A great place to work, a legacy for other Games The goal is to have staff members feel that VANOC was a great place to work and an outstanding Organizing Committee that was able to leave improved templates for other organizing committees. The strategies to achieve this objective are: Work collaboratively with the VANOC Communications function to develop and implement a strong internal communications strategy that will help build and maintain our culture Develop a strong value proposition for potential candidates aligned with VANOC’s brand Build and leave a diverse talent pool for the region beyond 2010. This will be accomplished through the implementation of an attraction strategy that will include approaches and sourcing tactics to attract individuals from across Canada (to deliver on VANOC’s Canada’s Games approach) and individuals from various groups of interest such as Vancouver’s Downtown Eastside, Aboriginal and francophone populations and people with disabilities. Leave a skills development legacy and more specifically, enhance the talent pool for inner-city communities and Aboriginal people in the post-2010 market Work collaboratively with WorkSafeBC to develop and implement a Games safety training program that will leave a safety legacy in BC after the Games Teamwork delivering extraordinary results VANOC’s goal is to deliver high-performing teams that will deliver extraordinary results in keeping with VANOC’s values. The strategies to achieve this objective are: Centralize recruitment of all new hires based on a strong values-match assessment Provide employee orientation with a very solid focus on VANOC’s values Offer French language training to all paid staff in order to develop VANOC’s bilingual resources Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 126 of 196 Establish sound management practices around employee workloads and solutions to a more work/life balance Develop and implement team and leadership development programs Build and offer management workshops on common people practices Complete an annual employee engagement survey and implement appropriate follow-up Personal sustainability – engrain corporate athlete elements in our HR programs, internal communications, leadership and team development programs to sustain employee energy up to, and during, the delivery of the 2010 Games Appropriate human resources to deliver the Games The HR division’s goal is ensure that all Games functions have the necessary human resources they need to successfully deliver their business objectives. The strategies to achieve this objective are: Maintain recruitment in-house for all paid staff and redeploy this workforce into Gamestime roles to offset the need to recruit temporary positions, resulting in substantial savings Outsource recruitment for short-term temporary staff while monitoring the quality control of initial values-match screening Keep abreast of the current and future labour market and the influencers and plan sourcing strategies accordingly Build and implement retention strategies to ensure that compensation programs continue to be competitive in the market and sensitive to labour strategies Implement a health and wellness program that will emphasize the need to have a healthy balanced life Develop and implement an outplacement program Prepare and implement a change plan for the venuization stage of Games planning Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 127 of 196 7. PRE-GAMES VOLUNTEER PROGRAM/TEST and TRAINING EVENTS Test and training events are critical to all functions to assess operational efficiencies prior to the Games and make service level and operational adjustments. Workforce will support the test and training events by assisting with training, recruitment, recognition and uniforms for the Workforce required to run VANOC-sanctioned Test Events. A Pre-Games Volunteer Program (PGVP) has been developed to address test and training events and assist the functions, mainly Sport, in training and engaging a suitable workforce for these events. All pre-Games volunteers will be required to reapply in 2008 for the general call to volunteers to ensure that VANOC remains transparent in its recruitment processes. However, pre-Games volunteers will receive priority treatment during the process based on past performance during the test and training events. All Games-time volunteers for Test Events will be recruited, registered, assigned and scheduled centrally. Bilingualism will also be considered in the recruitment process. 8. WORKFORCE ORIENTATION AND TRAINING VANOC is committed to delivering extraordinary Games, and the way this will be delivered is through its people. The training strategy views the workforce as an asset and a key enabler of success. As such, Games-ready training at VANOC needs to be not only informational and skillbuilding, but must exceed expectations and create memorable experiences for those participating. To ensure a consistent understanding of the one-team approach by VANOC when dealing with all visitors, the general orientation of the workforce will be managed by VANOC staff and not outsourced. However, other forms of training, such as safety and customer service, may be outsourced with quality control provided by VANOC Workforce function. General orientation will be provided on a face-to-face basis to all Workforce, with training in both Vancouver and Whistler. Broad Training Objectives To touch and inspire the people who will be delivering on the VANOC mission To create a positive and engaging learning experience for participants To equip the VANOC Workforce with the right skills, right information and right attitudes for success To build a sense of personal ownership for the success of the Games Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 128 of 196 To foster an intimate knowledge and passion for Vancouver, Whistler, BC, Canada and the Games To serve as an ongoing selection tool to ensure the right people are in the right places at the right times Broad Training Outcomes An engaged and inspired workforce Passionate people who are ready to work to create an extraordinary Games experience An informed and skilled workforce with the leadership, technical, and interpersonal aptitude necessary for success Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 129 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 130 of 196 17. APPENDIX 6: THE WORKING ENVIRONMENT 1. INTRODUCTION The 2010 Olympic and Paralympic Winter Games will be the highest profile international event ever hosted by Vancouver, surpassing the profile and impact of EXPO 86. Canada is no stranger to hosting Olympic Games, having hosted the Montreal 1976 Olympic Summer Games and the Calgary 1988 Olympic Winter Games. But the transformation of global communications and media, in speed and reach, will make Vancouver 2010 an international event without precedent. Above all other international events, the 2010 Olympic and Paralympic Winter Games have the potential to serve as a global showcase of the beauty, diversity and spirit of Vancouver, of British Columbia and of Canada. All Canadians, and particularly British Columbians, have high expectations for the Games. Canadians will expect the resources and partnerships are in place to make the most of the cultural, promotional and commercial potential of this uniquely powerful sporting event. Vancouver 2010 enjoys government support and commitment at all levels: the City of Vancouver, the Resort Municipality of Whistler, the Province of British Columbia and the Government of Canada. Each has contributed significant financial, professional and creative resources, first, to win the bid, and now, to stage successful Olympic and Paralympic Winter Games. All parties are working together to ensure that all necessary elements are in place to make Vancouver-Whistler an outstanding Games host. Beyond constructing the venues for the Games, a number of key infrastructure upgrades will be in place to ensure the safe and efficient transportation of athletes, media, visitors, goods and services. While at the Games, competitors and visitors will enjoy the unique flavour of Canada: its exceptionally high quality of life, linguistic duality and cultural diversity, innovative commitment to the environment and prosperous, technologically-advanced economy. The 2010 Winter Games are intended to be more sustainable and inclusive than ever before, as Vancouver and Whistler are communities that were built and thrive on these ideals. As one of the most multicultural cities in the world, Vancouver’s distinctive energy will both appeal to, and reflect, visitors from around the world. 2. POLITICAL OVERVIEW All three levels of government will face elections before 2010. While the players may change, it is anticipated that political support for the 2010 Games will withstand any changes of government. 2.1 Federal Political Environment In January 2006, the minority Conservative government of Prime Minister Stephen Harper was elected – the second minority government to be elected in fewer than three years. In December 2006, the Liberal Party of Canada elected Stéphane Dion as leader. While the minority Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 131 of 196 government makes for an interesting dynamic on the federal political stage, it is not expected to have a negative impact on federal support for the 2010 Winter Games. Both the Conservative and previous Liberal governments have shown demonstrable commitment to the Games both through financial contributions and government programs. In response to a perception of poor Canadian medal showings at previous Games, the federal government has committed $55 million to the Own the Podium 2010, which is being matched by a combination of provincial and corporate funds, to address the issue of amateur sport funding The program’s goal is for Canada to be the number one nation in medal count at the 2010 Olympic Winter Games, and in the top three nations at the 2010 Paralympic Winter Games. 2.2 British Columbia Political Environment The provincial scene is stable. Premier Gordon Campbell and the BC Liberal Party have enjoyed majority rule since 2001. The next fixed provincial election date is scheduled for May 2009. While there is robust support in British Columbia for the 2010 Winter Games, there is also a small group of critics who have questioned the wisdom of hosting the Games and have used the Games as a platform for highlighting other social issues such as poverty and homelessness. 2.3 Municipal Political Environment Sam Sullivan was elected Mayor of Vancouver in 2005, after serving on city council for 14 years. He will govern through 2008 when the next municipal election is due. A city experiencing an economic boom, Vancouver is facing growth issues related to transportation, infrastructure, homelessness and crime. These are issues that could shape the outcome of the 2008 civic election and should not to be overlooked as the City of Vancouver prepares for the 2010 Winter Games. 3. ECONOMIC OVERVIEW Canada is continuing to enjoy one of the strongest economies in the world, low levels of unemployment, interest rates and inflation. Canada continues to demonstrate an attractive investment climate with competitive tax regimes, balanced budgets and falling public debt. Near-term weakness in the US economy, however, is forecast by the Bank of Canada to slow economic growth through 2006-08. Weakness in the US economy could result in lower Canadian exports to the United States, which is expected to be offset by exports to the Asia Pacific, where growth continues apace, especially in China. This expectation would have to be revisited should the correction to the US housing market be more pronounced – an issue closely watched by BC’s forest industry, the largest sector in the provincial economy. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 132 of 196 Canadian domestic demand is projected to continue to support economic expansion through 2008. Consumer spending is forecast to remain firm, owing to further gains in disposable income and household net worth. Housing investment, however, is expected to decline slightly in 2007 and 2008, as home building activity begins to levels off in BC, Ontario and Quebec. Forecasters expect the British Columbia economy to outperform the Canadian economy as a whole, with GDP growth projected to reach 3.4 per cent in 2007 and 3.3 per cent in 2008. The provincial unemployment rate stands at an all-time low and domestic demand continues to be the main source of growth for British Columbia. Key economic drivers include strong employment gains, healthy consumer spending, steady housing activity and continued strength in non-residential construction. Labour shortages, commodity price volatility and the impact of the slowing US housing market on BC’s lumber industry have been identified as key risks and challenges in the year ahead. Driven by the province’s physical beauty, BC is home to a healthy tourism sector that now accounts for close to four percent of the province’s GDP and six per cent of provincial employment, primarily in the accommodation and food industry, transportation and retail. After rebounding in 2004 from the global downturn in travel caused by the events of September 11, 2001, the province continues to experience growth in tourism, a trend that will only accelerate as the Vancouver 2010 Winter Games approach. As testimony to BC’s growing importance to Canadian tourism, the Canadian Tourism Commission was relocated to Vancouver in 2005. British Columbia’s strong economic growth and increasing population translates into the need to modernize existing infrastructure. All three levels of government are actively involved in major infrastructure upgrade projects, several of which are not designed specifically to serve 2010 Games needs but will now be ready in time to serve the Games-time needs and well beyond. Work is underway on key projects that will help alleviate traffic congestion, including: the Canada Line public transit project that will run from the Vancouver airport to Richmond to downtown Vancouver, an upgrade of the Sea-to-Sky Highway that runs between Vancouver and Whistler and the twinning of the Port Mann Bridge. As Canada’s western port of entry and egress, Vancouver is Canada’s gateway to and from the Asia-Pacific region. The Port of Vancouver is Canada’s largest, handling more than $43 billion worth of business each year with more than 90 countries. In order to ensure that British Columbia and Canada can be key players in the burgeoning Asia-Pacific, the provincial and federal governments have invested over $3 billion in the Asia Pacific Gateway and Corridor Initiative. The Initiative brings together governments and the private sector to identify and work cooperatively on infrastructure upgrades – roads, bridges, rail and port facilities. 4. SOCIAL OVERVIEW Canada is viewed, internationally, as a good global citizen and a socially progressive and prosperous nation. However, the country still continues to address long-term social challenges, ranging from health care to homelessness, immigration to the environment, from education (early childhood to post-secondary) to quality child care. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 133 of 196 The environment is also a top-of-mind issue for many Canadians and British Columbians and it was a major platform in the recent provincial Throne Speech outlining government priorities. Considered the “green” province of Canada, BC’s economic rejuvenation is closely tied to the health of the environment. As the birthplace of the Greenpeace movement and home to Canadian environmental leader Dr. David Suzuki, the environment is a topic of ongoing interest and public debate. British Columbia promotes itself as a “pristine wilderness” tourism destination and BC’s economic might also rests on its natural resource industries – forestry, mining and energy. To reflect the environmental, social and economic opportunities and challenges inherent in staging the Games, the Organizing Committee developed six sustainability performance goals that have received wide praise, especially the focus on social inclusion and access given that several venues are located near Vancouver’s Downtown Eastside, which suffers some of the highest rates of drug use, crime and homelessness in the nation. If these objectives are realized, the 2010 Winter Games could contribute a meaningful and lasting impact to the Downtown Eastside and to BC’s First Nations people while providing the opportunity for Canada to showcase its progressive and inclusive social policies. 5. CULTURAL OVERVIEW Canada is renowned for its embrace of cultural diversity, its concept of a “mosaic” of cultures and peoples who, together, define Canada’s cultural landscape. A bilingual country, Canada boasts a rich French-Canadian heritage that weaves its way through the fabric of its language and arts, with BC being home to the third-largest French-speaking community outside Quebec. The neighbourhoods of Vancouver and cities and towns across Canada are home to people from every nation and ethnic identity living in an atmosphere of mutual tolerance and respect. Visitors to the 2010 Winter Games will experience Vancouver’s integrated diversity and the rich and unique traditions, language, art and culture of British Columbia’s First Nations. The 2010 Winter Games will be unique in their inclusion of the First Nations peoples. One of the six sustainability pillars of Vancouver 2010 is Aboriginal Participation and Collaboration. Chief Gibby Jacob, a Squamish First Nation chief, sits on VANOC’s Board of Directors. The Games will specifically showcase the Four Host First Nations – the Lil’wat, Musqueam, Squamish and Tsleil-Waututh First Nations, who have pledged their support of and their participation in the 2010 Olympic and Paralympic Winter Games. Further contributing to Vancouver’s distinctive cultural scene is its active and progressive arts scene, ranging from the mainstream to the fringe. A truly cosmopolitan city, Vancouver is home to some of Canada’s best-known musical talent, artists and authors. The city is home to more than 100 publicly and privately-run art galleries representing traditional, contemporary and First Nations artists. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 134 of 196 6. OLYMPIC GAMES ENVIRONMENT The IOC instituted numerous reforms in 2000 and is under the leadership of President Jacques Rogge. Its current structure, including active athletes in the membership of the IOC Session and the Executive Board, ensures that members with recent experience competing at Olympic Games are participating in the governing of National Olympic Committees (NOCs) and International Sports Federations (IFs). In terms of mission, the IOC has focused its efforts on enhancing the organization and operations of the Olympic Summer Games and Winter Games. This has translated into the refinement of each step of Games organization, from the candidature process, with its aim to produce better qualified host cities, to the coordination process, with its aim to transfer knowledge from one organizing committee to another. The fight against doping has been, and will continue to be, another major focal point for the Olympic Movement. The creation of the World Anti-Doping Agency (WADA) in 1999 has provided resources in this fight. Canada continues to be a world leader in the anti-doping movement both scientifically and through the high profile work of WADA’s Canadian Chair, Dick Pound. The recent adoption of the global convention on fighting doping in sport is a significant step in the harmonization of public and private rules and resources in this effort. Enhanced communications and transparency have had a significant impact on strengthening the IOC’s reputation. In recent years, there have been more open and proactive communications between the IOC and organizing committees. The IOC is also pursuing other themes such as promoting sport development, peace through sport, education and life experiences through sport, women’s participation in sport and sustainability. On July 4, 2007, in Guatemala City, the IOC will announce the host city of the 2014 Olympic Winter Games. The contenders for these Games are Sochi, Russia; Salzburg, Austria; and PyeongChang, South Korea. Both Salzburg and PyeongChang were candidate cities for the 2010 Winter Games. In 2008, the Olympic Summer Games will be held in Beijing, China, from August 8 through August 24. In 2009, the IOC is scheduled to announce the host city for the 2016 Summer Games and will host the 13th Olympic Congress in Copenhagen, Denmark. Finally, the IOC will is to host an event in 2009 to invite the NOCs and their athletes to gather in Vancouver the following year to celebrate the XXI Olympic Winter Games. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 135 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 136 of 196 18. APPENDIX 7: VENUE AGREEMENT PLAN 1. OBJECTIVES During the bid phase, the Vancouver 2010 Bid Corporation concluded a number of venue agreements with facility owners regarding the use of such facilities as Games competition and non-competition sites during the 2010 Winter Games. This was one of the bidding requirements for the International Olympic Committee. Once the Games were awarded to Vancouver, VANOC continued to work on use agreements with facility owners, as required for the Games. This plan summarizes the key strategies associated with the conclusion of competition and noncompetition (including support facilities) venue use agreements required for the Games. The key venues include: Competition Venues Whistler Creekside Cypress Mountain General Motors Place Pacific Coliseum Hillcrest/Nat Bailey Stadium Park UBC Winter Sports Centre Richmond Oval Whistler Sliding Centre Whistler Nordic Competition Venue Non-Competition Venues Trout Lake Rink Killarney Rink Vancouver International Airport BC Place Stadium Whistler Celebration Site Main Media Centre Vancouver Olympic and Paralympic Village Whistler Olympic and Paralympic Village Logistics Warehouse Whistler Broadcast and Press Centre 2. DELIVERABLES To ensure all venue use agreement negotiations follow a standard approach To ensure all applicable functions within VANOC have provided input into, and signed off, on the venue use agreements Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 137 of 196 To conclude suitable venue use agreements with the venue owner of each venue required for the Olympic and Paralympic Games 3. BACKGROUND During the bid phase, agreements were completed with proposed competition venue owners and with owners of several key venues intended for non-competition use (such as Ceremonies, Main Press Centre, International Broadcast Centre and Athletes’ Villages). These agreements were made by the Bid Corporation based on the knowledge, information and budgets available at that time. The agreements contained provisions governing issues including, where appropriate, exclusive and shared use periods, cost allocation, insurance, marketing rights and facility construction or modification. 4. IMPLEMENTATION STRATEGY Extensive work was done, both during the bid phase and since, to identify key elements of venue operating agreements. In many cases, the majority of these issues are addressed and agreed to in the existing agreements. As planning advances, there is a requirement for more detailed and specific information. Amendments to the agreements, are on occasion, relatively minor while at other times fundamental changes are required. Depending on the type of site, the venue use agreement process is led by either Venue Management or the relevant function such as the Logistics function which is responsible for warehouses. It is VANOC’s intention to reduce operational risk and uncertainty by completing venue use agreements as early as is feasible given the need for certain operational information and the objectives of both VANOC and its venue owners. Where the venue is used for both Olympic and Paralympic purposes, a single agreement is preferred, modified as required to reflect changes in requirements. The nature of venue use agreements can vary from very simple to very complex. They can impact a single function or many functions. Once the team has conducted an initial assessment of the circumstances, consideration is given to the most appropriate method of moving the agreement forward. Template venue use agreements have been created to provide a starting point for internal discussion and for engaging the venue owner. These templates ensure that all key issues are appropriately addressed in the agreement. VANOC Legal Services will work with the venue owner’s legal representative to prepare a final document ready for Province of British Columbia approval (where applicable), IOC approval (where applicable) and recommendation for VANOC Board approval. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 138 of 196 19. APPENDIX 8: GAMES SECURITY – CONCEPT, PARTNERS AND INTEGRATION 1. INTRODUCTION The security of the 2010 Olympic and Paralympic Winter Games will be organized and delivered by the federal and BC governments through the Vancouver 2010 Integrated Security Unit (V2010ISU). In delivering on this mandate, V2010ISU will cooperate with VANOC. Cooperation, coordination and integration of the activities of these two key participants will be regulated by a Memorandum of Understanding, expected to be concluded between the parties in 2007. With the Royal Canadian Mounted Police (RCMP) as the lead agency, V2010ISU will include representatives from the following agencies: Vancouver Police Department (VPD), West Vancouver Police Department (WVPD), the Canadian Security Intelligence Service (CSIS) and the Canadian Forces (CF). V2010ISU will integrate its planning and actions with VANOC. Integration with the Vancouver 2010 Organizing Committee will be provided thorough the VANOC Security Integration function. During the Games, the V2010ISU will have a Security Command Centre that operates closely with the VANOC Security Integration Desk within the VANOC Main Operations Centre to deliver the integrated security operation. Guiding Principles In carrying out their mission, VANOC’s government partner agencies who are key participants in the security of the 2010 Winter Games, will be guided by the following basic principles: Deliver safe and secure Games for all participants, visitors and residents Ensure rule of law is observed in all safety and security undertakings and that the planning and operations of the 2010 Olympic and Paralympic Winter Games security is in strict compliance with the substance and spirit of Canadian law The key factor of success of the Games is developing an integrated security approach between the key partners: VANOC and V2010ISU Minimize impact of Games security operations on local residents without compromising level of security Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 139 of 196 2. OBJECTIVES The objectives of the security plan for the Vancouver 2010 Winter Games are as follows: Plan, organize and deliver security measures for the spectators, venues, transportation, logistics, Olympic and Paralympic Family, sponsors and the media Guarantee the operational integration and co-operation between multiple agencies: VANOC, IOC, Canadian public safety agencies, municipalities, external Games partners and stakeholders Define appropriate security measures in the 2010 Winter Games venues for asset protection Conclude the Memorandum of Understanding between VANOC and V2010ISU and define roles and responsibilities among all the partners involved in delivering security of the Games 3. ROLES AND RESPONSIBILITIES V2010ISU will organize, plan and implement security measures for the Games. VANOC Security Integration will act as coordinator and integrator: Internally, between all VANOC functions Externally, between VANOC clients, partners, V2010ISU VANOC Security Integration will be responsible for asset protection during pre-Games, Games time and post-Games. 4. IMPLEMENTATION STRATEGY Security planning and delivery for the 2010 Winter Games will occur in the following stages: Strategic Planning (2004-06) The security services required for the Games were identified by V2010ISU with input from VANOC. The roles of the various agencies will be defined through the MOU process. VANOC’s Security Integration function business plan established the role of the Security Integration and the required level of integration with V2010ISU. VANOC and V2010ISU will produce a model that will serve as a legacy for major event planning in Canada. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 140 of 196 Concept of Operations (2005-07) V2010ISU, as the leading partner in organizing security of the Games, will develop a concept of operations as the basis for all operational planning to follow. All security planning will be integrated and managed by one lead agency, the RCMP, to ensure efficient and effective use of resources. VANOC will provide critical input to V2010ISU to ensure the concept of operations takes into account all specific security requirements for Games operations. The deployment of resources will be based on intelligence-led threat assessment. V2010ISU has a budget of its own to provide Games security that is separate and distinct from the VANOC operating budget. Operational Planning and Organizational Regime principles (2008-09) This phase will establish the regime that will be used to plan, implement, test and refine the operational details for how security and public safety services will be provided to the 2010 Games such as: • A master schedule for V2010ISU, integrated with VANOC, detailing key deliverables, responsibilities and milestones Planning methodology, organizational framework and a related MOU will be used to coordinate and integrate the security services provided to the Games by the federal, municipal and other partners involved • Function Operational Planning (2008-09) Security operational plans for the functions that have Games-time roles will be developed in conjunction with V2010ISU. This includes but is not restricted to Sport, Transportation, Logistics, Accreditation, Protocol, Accommodation, Media Relations, Olympic and Paralympic Villages and Food and Beverage. Venue Operational Planning (2008-09) A model venue operational plan will be developed as the master template for venue security operations. Venue-specific operational plans will be developed by the venue security commander, on the basis of the master venue operational plan. Security operational planning will include special operational plans for the selected Test Events. Games-time Readiness (2009 – January 2010) To ensure the feasibility of operations, this stage will be devoted to training, testing and simulating venue security operations by individuals and teams. V2010ISU Games readiness activities will include joint testing and simulations with VANOC. Both table top and live exercises will be used to further enhance the operational plans. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 141 of 196 Games-time Operations (February and March 2010) Games-time operations will be conducted through: V2010ISU Security Command Centre VANOC Security Integration Desk within the Games Main Operations Centre Venue level security operation Integrated functioning of all of the above mechanisms Dissolution and final report (Post-Games, 2010) VANOC will provide asset protection of the identified critical assets during the venue dissolution phase using a contracted security company. A joint final report on the Games security operation will be completed and submitted by VANOC Security Integration and V2010ISU. This report will be included in the Olympic Transfer of Knowledge process for the next Games organizers. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 142 of 196 20. APPENDIX 9: CULTURAL PLAN 1. INTRODUCTION VANOC’s culture and ceremonies plan is designed to deliver exceptional ceremonies, arts, cultural and educational programs for the 2010 Games that fulfill IOC Olympic Charter requirements, celebrate sport and showcase the cultural diversity of Canada and the global community in a fiscally and environmentally responsible manner. 2. SCOPE Cultural Olympiad The Cultural Olympiad is charged with presenting exciting, innovative and accessible Olympic and Paralympic education, arts and cultural programs and festivals, thereby strengthening the reputation of Canada while promoting the nation’s cultural, educational and economic wellbeing. Significant pre-Games celebrations will be produced in February and March of 2008 and 2009, building interest as well as local and national capacity, for the 2010 Olympic and Paralympic Arts Festivals. Education programs will launch in September 2007. These will make unprecedented use of the Internet. Beginning January 22, 2010, and extending to the closing of the Paralympic Games on March 21, 2010, Cultural Olympiad staff will produce, co-produce, market and promote hundreds of performances, exhibitions, and symposia that comprise the Olympic and Paralympic Arts Festivals. In addition, Cultural Olympiad staff will work closely with the local community of artists, producers, presenters, festivals and venues to ensure they maximize the legacy benefits of the Olympic and Paralympic Arts Festivals to build their network of national and international partners. Ceremonies The Olympic Opening and Closing Ceremonies and Paralympic Opening and Closing Ceremonies are critical to the operation of each Games. The Victory Ceremonies bestow recognition on the athletes for their achievements while providing opportunities for public celebration. Each Olympic and Paralympic Ceremony must be distinct, accomplish the required protocol and present spectacles that inspire and entertain. The ceremonies, particularly the Olympic Opening, generate the largest television and live audiences of the Games, and are therefore vital to establishing the overall theme and tone of the events. The Ceremonies also provide the host community and nation with an unsurpassed opportunity to present itself to the world. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 143 of 196 3. OBJECTIVES Vancouver’s people share a unique mix of classical art forms and rich heritage cultures. At the same time Vancouver is young, on the edge, an international leader in contemporary arts and new media development. Vancouver pushes the boundaries of new frontiers, is dedicated to discovery and is keen to innovate. VANOC’s goal is to both inspire Games audiences and advance the state of the arts with programs that celebrate excellence, diversity and extraordinary achievement. The Vancouver 2010 Culture and Ceremonies function will present a wide-ranging calendar of diverse projects, events and activities. The universal objectives of these distinct and related programs are: To deliver a joyous celebration of physical and creative ability To complete the protocol, cultural and ceremonial functions mandated by the Olympic Charter and to deliver the content and messages of Olympism and Paralympism, including sport, culture and sustainability To enhance the experience of the Games through a celebration of arts, culture and creativity To broaden and extend the scope of the Games by maximizing the participation of the local, national and global community in an outstanding display of artistic and cultural endeavour To provide a seamless integration between the core Games themes and the programs delivered by Culture and Ceremonies To transcend borders- between nations (international borders), physical (the limits of the body, mind and spirit), cultural (boundaries of various cultures), human (the drive to expand the human experience) To illuminate Canadian values including our passion for creativity, respect for diversity, democracy and fair play To highlight fundamental aspects of our unique culture, such as Canada’s linguistic duality and multicultural makeup and Canada’s anglophone, francophone and Aboriginal heritage Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 144 of 196 To engage the host country in “Canada’s Games,” from coast to coast to coast To reflect Canadians’ character as creators, innovators and contributors to world progress To create memorable, positive impressions of the host country and community to enhance regional and national pride as well as international respect for Canada’s unique identity 4. DELIVERABLES Paralympic Games • • Programs Cultural Olympiad Programs Pre-Games Celebrations Education Olympic Arts Festival Paralympic Arts Festival Congress Welcome Ceremonies Team Welcome Ceremonies Opening Ceremony Closing Ceremony Medal Ceremonies 5. BACKGROUND Olympic Games • • • • • • • • • • • • • • Culture is enshrined in the Olympic Charter as one of the three pillars of the Olympic Movement. The Olympic spirit is defined as “a philosophy of life, exalting and combining in a balanced whole the qualities of body, will and mind” and the Charter mandates a “blending of sport with culture and education.” The Olympic ideal focuses on the broadest context of a harmonious life encompassing much more than sport competition: “Olympism seeks to create a way of life based on the joy found in effort, the educational value of good example and respect for universal fundamental ethical principles. To attain the goals of the Olympic Movement “requires mutual understanding with a spirit of friendship, solidarity and fair play.” Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 145 of 196 VANOC is required to produce a series of cultural and educational programs that include both English and French elements under the terms of the Multiparty Agreement, including the Olympic and Paralympic Opening and Closing Ceremonies, Victory Ceremonies, Cultural Olympiad and Olympic and Paralympic Arts Festivals. “We always say there is a difference between sports and the Olympic Games. The Olympics is much more than sport – it is sport and culture.” (Juan Antonio Samaranch, IOC President, 1998) 6. IMPLEMENTATION STRATEGY Strategies to implement the Vancouver 2010 culture and ceremonies plans are to: Create an in-house core management team to define overall programs, objectives, strategies, outcomes and themes, to ensure the interface with other VANOC Functions, to provide overall function business and financial management, and to oversee the artistic development and production of its programs Engage all ten provinces and three territories in order to reflect the diversity of Canada and to deliver a “Canada’s Games” cultural program Consult with its Multiparty Agreement partners and local First Nations to seek input and participation in developing policies on various ceremonies and cultural programs. Work with VANOC’s Official Languages function to leverage partnerships with francophone communities across the country in order to integrate French culture and artistic components in areas of Culture and Ceremonies planning Explore and select delivery models based on the specific requirements of each of the Culture and Ceremonies programs, including in-house and external delivery as well as commissioned, produced, co-produced and endorsed forms of project fulfillment. Projects will utilize the appropriate mix of delivery styles required to maximize effectiveness and efficiency. Develop partnerships in order to maximize delivery featuring local and regional participation, and in order to leave legacies of experience, knowledge and understanding. Financial partnerships will be a key strategic element in order to stretch the Culture and Ceremonies’ budgets wherever possible. Work in close conjunction with 2010 Legacies Now, and especially Arts Now, in order to increase capacity and creative capability broadly throughout the province to prepare Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 146 of 196 BC’s arts, cultural and creative groups to participate in the Olympic and Paralympic Culture and Ceremonies programs Use a broad interpretation of “arts and culture” when developing or considering programming in order to enhance accessibility and participation 7. SCHEDULE The following are the key dates for the Vancouver 2010 Cultural Olympiad and the Ceremonies programming for the 2010 Winter Games: Cultural Olympiad Education Programs Pre-Games Celebration Program Olympic Arts Festival Paralympic Arts Festival Ceremonies Olympic Team Welcome Ceremonies Olympic Congress Opening Ceremony Olympic Opening Ceremony Olympic Closing Ceremony Olympic Victory Ceremonies Paralympic Team Welcome Ceremonies Paralympic Opening Ceremony Paralympic Closing Ceremony Paralympic Victory Ceremonies February 6 – 12, 2010 February 9, 2010 February 12, 2010 February 28, 2010 February 13 – 28, 2010 March 6 – 12, 2010 March 12, 2010 March 21, 2010 March 13 – 21, 2010 September 2007 – March 2010 February – March 2008 and February – March 2009 January 22 – February 28, 2010 March 12 – 21, 2010 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 147 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 148 of 196 21. APPENDIX 10: HEALTH SERVICES PLAN 1. INTRODUCTION The Medical Services function is part of the VANOC Sport, Paralympic Games and Venue Management Division. VANOC Medical Services will provide medical care for athletes and team officials, Olympic and Paralympic Family members, media, workforce and spectators for the Vancouver 2010 Olympic and Paralympic Winter Games. It will also provide medical services for official pre-Games Test Events. VANOC Medical Services has developed excellent working relationships with the BC Ministry of Health, the BC 2010 Games Secretariat, Vancouver Coastal Health (VCH) and BC Ambulance Service (BCAS). The Vancouver 2010 Winter Games health plan will use the hospitals of the Vancouver Coastal Health network that covers the full Games hosting region. The athlete and Olympic Family hospital will be Vancouver General Hospital and the designated spectator hospital will be St. Paul’s Hospital. Both athletes and spectators, depending on the particular situation and severity, could be seen and treated at Richmond General Hospital, Lions Gate Hospital (particularly in the neurosurgical services), Squamish Hospital (particularly for an acute abdominal emergency such as a ruptured spleen) or the Whistler Health Care Centre. In addition, through federal, provincial, and particularly Vancouver Coastal Health services, VANOC will offer full public health evaluation for illness surveillance, food, water and air quality plus disaster planning, including the utilization of a mobile field hospital at Whistler. The BC Ambulance Service will coordinate first aid and will provide paramedic managers at each athlete and spectator venue. In addition, BCAS will coordinate a seamless helicopter service incorporating Blackcomb Helicopters and BC Ambulance Service helicopters. Medical Services also includes Anti-Doping services for the Olympic and Paralympic Winter Games. Services will include doping control stations at each athlete competition venue and in each of the two polyclinics as well as a doping control laboratory. Anti-Doping is beyond the scope of this plan. 2. OBJECTIVES The objectives of the VANOC Medical Services function are to plan and deliver medical and health care for the 2010 Olympic and Paralympic Winter Games and to leave sustainable legacies for sport medicine and sport science, locally and nationally, following the Games. Medical Services will be responsible for some 7,000 Olympic and Paralympic Games athletes, coaches and team officials, 10,000 media members, 50,000 workforce and tens of thousands of spectators. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 149 of 196 3. ORGANIZATION Medical Services and Anti-Doping are within the Sport Division of VANOC and are served by an Advisory Group and a Steering Committee. The Advisory Group meets four to five times per year and has representation from the BC Ministry of Health, the British Columbia 2010 Olympic and Paralympic Winter Games Secretariat (BC Secretariat), Vancouver Coastal Health, BC Ambulance Service, RCMP/Security, Sport Med BC, emergency/disaster preparedness and public health authorities. A flow-through strategy for procurement of therapy equipment, pharmaceuticals, medical supplies and equipment from Vancouver Coastal Health has been established. Memoranda of Understanding and Agreements are being established with the BC Ministry of Health, BC Secretariat, Vancouver Coastal Health, BC Ambulance Service and Sport Med BC. The Steering Committee also meets four to five times per year and has representatives from primary care sports medicine, emergency medicine, therapy, orthopaedic surgery, neurosurgery, trauma, athlete venue medical, spectator medical, imaging, Paralympic Games, hospital liaison-internal medicine and ski patrol. 4. GAMES-TIME MEDICAL COVERAGE Games-time medical coverage will be provided for athletes and team officials, Olympic and Paralympic Family members, media, the workforce and spectators. This will be achieved on the athlete side through a polyclinic in each village plus athlete medical stations located strategically at each competition venue, and, in addition, teams of mobile medical and paramedical personnel. Each athlete and spectator venue medical station will consist of four areas: A nursing station with triage and medical encounter utilizing the IOC sponsor Atos Origin’s system A full emergency room with defibrillator, monitors, oxygen, suction and emergency equipment and supplies A minor surgery and assessment for medical and musculoskeletal problems A physiotherapy/acute management room Each athlete medical venue will be managed by a team of medical personnel, including a sport physician/emergency physician, an orthopaedic surgeon and a physiotherapist. This team will be supplemented with a paramedic manager. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 150 of 196 5. POLYCLINICS AT OLYMPIC AND PARALYMPIC (ATHLETES) VILLAGES Two polyclinics, one in Vancouver Olympic and Paralympic Village and the other in Whistler Olympic and Paralympic Village, will each be fully equipped 10,000 sq. ft. facilities that will include: primary care sport medicine emergency medicine trauma services surgical consultants – orthopaedic surgery, neurosurgery, hand and plastic surgery gynaecology full imaging service with digital x-ray, MRI, CT scan fixed and portable ultrasound medical laboratory for complete blood count, urinalysis, blood chemistry and cultures pharmacy dental clinic eye clinic and ear, nose and throat clinic Additional consultant services within the polyclinic include dermatology, internal medicine, cardiology, respirology, infectious disease, gastroenterology, neurology, a nutritional consultant for individual counselling and consulting with food services regarding meals, and sport psychology. Therapy will be coordinated by the Vancouver 2010 Winter Games chief therapist and will include physiotherapy, massage therapy, chiropractic services, acupuncture, athletic therapy and podiatry. There will be a rehabilitation gym, and a massage and recovery clinic will be adjacent to the polyclinic and beside the Village fitness centre. There will be a doping control station in each polyclinic. There will be translation services for the polyclinic and patients being transferred to hospital. 6. ATHLETE VENUES Medical personnel will include sport physicians, emergency physicians, orthopaedic surgeons, a vascular surgeon for speed skating and a neurosurgeon for high speed events. Mobile medical teams will cover the field of play and depending on the venue, will consist of physicians, physiotherapists, paramedics, nurses, first aiders and ski patrol. Other members of the medical team at athlete venues will be physiotherapists, massage therapists and athletic therapists. There will be full supplies and services, including automatic defibrillators, oxygen, two ambulances per site and an air ambulance. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 151 of 196 7. TRAUMA TEAMS Each trauma team will consist of two trauma surgeons, two trauma nurses and two trauma paramedics. Trauma teams will support venue athlete medical teams at Cypress Mountain for freestyle, snowboard and ski cross, the Whistler Sliding Centre for bobsleigh, luge and skeleton and at Whistler Creekside for alpine events. 8. PRE-COMPETITION ATHLETE MEDICAL COVERAGE Pre-competition athletic medical will be covered by physiotherapists, massage therapists, athletic therapists and sport physicians. Supplies are being coordinated through the materials manager from Vancouver Coastal Health (VCH) with a flow-through process using VANOC procurement processes and procedures and VCH buying power. These supplies include treatment tables, ice chests and taping supplies. Training Site Athlete Medical Coverage The training site athlete medical coverage will include physicians onsite at high speed training sites and on call for curling. Each site will have physiotherapists, certified athletic therapists and sport first aiders. Supplies will include basic first aid and CPR kit, stretchers, treatment tables, ice chests, blankets and taping supplies. 9. VENUE SPECTATOR MEDICAL COVERAGE This area will provide medical services to spectators, Olympic/Paralympic Family members, media/ broadcasting and the workforce. This will be achieved at each venue by the Venue Spectator Medical Station (with similar structure to the athlete medical station) plus teams of mobile first aiders and paramedics in the spectator areas of arenas and mountain sites. Spectator medical personnel will include a physician manager, physicians, physiotherapist, first aiders, paramedics and the mobile team. The spectator medical stations will be fully supplied and equipped with automated external defibrillators, oxygen and two ambulances per site. Non-competition Venues A team of physicians, nurses, physiotherapists and first aiders will service accreditation, media and broadcast centre, workforce medical clinic, opening and closing ceremonies, medal ceremonies, other cultural events, International Zone and the Airport. Ambulances and paramedics will also be used for opening and closing ceremonies. There will also be medical teams for athletes, Olympic and Paralympic Families and performers. As previously noted, Vancouver General Hospital will be the Olympic/Paralympic Family Hospital. Currently, the new Ambulatory Care Centre at VGH is being considered for the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 152 of 196 Olympic/Paralympic Family and athletes. At each of the three Olympic Family hotels and one Paralympic Family hotel there will be medical stations which will be staffed with nursing staff 24/7 and physicians at scheduled times will be and on call 24/7. In addition there will be physiotherapy, massage therapy and chiropractic care available. Transportation of Injured and ill There will be dedicated ambulances (with Paramedics) in service during the Games. Many ambulances will be stationed at venues, both competition and non-competition. Helicopter service will be a blended seamless service for air ambulance and transport helicopter provided by Blackcomb Helicopter and BC Ambulance Service. NOCs/NPCs (National Olympic and Paralympic Committees) Medical spaces as per the IOC technical manual for the Olympic Village will include a room for physicians and therapists with basic equipment, laundry, ice machine, recycling and biohazardous waste materials containers. Additional goods and services will be offered to NOCs/NPCs through the Rate Card program. Additionally, bookable space and dedicated physiotherapists will be made available. 10. TEST EVENT MEDICAL COVERAGE VANOC Medical Services will provide coverage for athletes, International Federation members and spectators during the official Test Events for the 2010 Winter Games. Coverage will be achieved through portable medical stations both for athletes and spectators. 11. DISASTER PLANNING An integrated emergency and disaster planning committee has linked VANOC, Vancouver Coastal Health Emergency Management, Vancouver General Hospital Trauma Centre and the Provincial Emergency Planning Group (PEP). There is a direct link to the Vancouver General Hospital Trauma Centre. Specific plans for emergency responses at each venue are underway. Table top exercises will occur, and Test Events will be used for full simulations of disaster/emergency situations at Vancouver and Whistler. 12. PUBLIC HEALTH The VANOC Public Health Plan includes the establishment of a public health working group, organizing and planning for illness surveillance and pathogenic identification and assistance with injury surveillance monitoring, linking with the IOC medical encounter system. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 153 of 196 13. PROTOCOLS Specific protocols are now being developed for venues, including field of play, venue medical stations and the polyclinics. There will be standardized procedures for immediate evacuation, closed-head injury, spinal injury, hypothermia, cardiac and respiratory arrest, the collapsed athlete, allergic reaction, venue disaster plans, female athlete triad and haematological issues in sport. 14. BACKGROUND Public Health Delivery Bodies At the time of the Vancouver 2010 Winter Games Bid, a committee was formed to assess medical needs and budgets for the Games. This committee included members from the BC Ministry of Health, the BC 2010 Bid Secretariat and Vancouver Coastal Health. A preliminary medical services budget was developed as part of the bid. Since that time, the Medical Services function has been established at VANOC, along with its Advisory Group. VANOC Medical Services has outlined the scope of involvement of the BC Ministry of Health and the BC Games Secretariat, Vancouver Coastal Health, BC Ambulance Service and Sport Med BC. The contribution of each has been defined with memoranda of understanding and agreements. Specifically, with Vancouver Coastal Health, agreements for secondment of key staff have been organized (as previously outlined). In addition, the contribution from Vancouver Coastal Health includes public health support with public health nurses for polyclinics, a pharmacy coordinator and medical laboratory coordinators for both polyclinics and also trauma and disaster coordination. This program has been integrated with the Provincial Emergency Preparedness Plan and also with support from the federal government both for public health, illness surveillance and with a biological laboratory and field hospital at Whistler, if Whistler was to be cut off by road and air. Sport Med BC’s role will include training for first aiders through its online training courses and recruitment through its database of first aiders and other sport medical and paramedical personnel. Sport Med BC will link with the BC Ambulance Service to organize and supply medical coverage for the Torch Relay. Staffing Preliminary staffing of the VANOC Medical Services function has been completed. The director of medical services has been working part-time since May 2006 and full-time since September 2006. In addition, managers of therapy, athlete venue medical and spectator venue medical have been appointed and persons will commence work full-time in these roles in July 2007, November 2007 and February 2008, respectively. Managers of ER/sport medicine, orthopaedics and therapy have been appointed for each specific athlete medical venue, for both the Olympic and Paralympic Games, and managers have also been appointed for several spectator venues. VANOC Medical Services has appointed managers of pharmacy, imaging, eye, ENT and dental clinics, orthotic and bracing clinics, wheelchair repair, chiropractic, general surgery, plastic Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 154 of 196 surgery, orthopaedics, neurosurgery, trauma, vascular surgery, dermatology, gynaecology, internal medicine, gastroenterology and cardiology. Initial workforce for training and Test Events will be done through the existing Sport Med BC database. VANOC Medical Services is working with VANOC’s Workforce division to initiate the VANOC Medical Services recruitment process and to ensure a bilingual resource component. In total, 1,700 Medical Services volunteers will be recruited for the Olympic Winter Games and 700 for the Paralympic Winter Games. 15. STRATEGIES Specific timelines were established in 2006 with the initial appointments of the chief medical officer, director of medical services, chief therapist and athlete and spectator medical venue managers. The overall organizational plan and partnerships were established. In 2007, the focus will be on recruitment, training and retention of medical volunteers to supply the athlete and spectator venues, non-competition venues and polyclinics. In addition, there will be extensive preparation for training and Test Events, with full development of specific protocols for venues and polyclinics and recruitment of paramedics and integration at each venue of the venue manager, medical managers, ski patrol and the paramedic manager. An initial inventory for budgeting purposes was established in 2006 with procurement for medical supplies and equipment largely coming from a flow- through process with Vancouver Coastal Health, to be established in 2007. 2008 and 2009 will be dedicated to further training and Test Events. The table top and specific emergency measures exercise programs for both Whistler and Vancouver Test Events will occur. Further training with helicopter, including long line rescue procedures and linking ski patrol, VANOC mobile medical teams and paramedics will occur. The latter half of 2009 will be devoted to the stocking of the athlete and spectator medical stations and the two polyclinics. Once these sites are fully equipped, specific training will occur utilizing our protocols within these facilities. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 155 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 156 of 196 22. APPENDIX 11: COMMUNICATIONS PLAN 1. SCOPE This plan summarizes the strategies associated with developing and maintaining effective relationships and communications with key communities, stakeholders, influencers and the general public resulting in high general awareness and strong public support for, and engagement in, the Vancouver 2010 Winter Games. The plan includes strategies for communications services, media relations and specialized sport communications, editorial services, Internet management, marketing, community relations and workforce communications. 2. STRATEGIC COMMUNICATIONS STEERING COMMITTEE In March 2007, the Strategic Communications Steering Committee was formed to effectuate VANOC’s communications strategy as it pertains to the success of the organization’s publicfacing key initiatives. Composed of Members of the VANOC Board and members of the VANOC Executive Team, the Committee is responsible for overseeing the decision-making process of key initiatives; providing input and advice to VANOC function managers and/or work groups responsible for key initiatives; providing regular reports to the Board on decisions being made and the progress of developments of the key initiatives; and making recommendations to the Board where decisions relating to the initiatives require Board approval. 3. OBJECTIVES AND DELIVERABLES The goals of the communications plan for the 2010 Winter Games are to: Communicate the story about the planning for and staging of the 2010 Games (including VANOC’s vision, values and guiding principles) consistently and effectively to local, regional, national and international audiences. Key objectives include consistently positive public poll results for support and awareness, strong ticket sales, a popular and engaging Internet site and an actively engaged and motivated workforce. Define how the Games will be presented creatively and establish the character and personality of VANOC and the Games. The key deliverable is a variety of brandcentered communications tools that effectively convey the VANOC story. Proactively communicate key messages through the development of professional relationships with the media, and effectively communicate issues that may arise as a result of the preparations for, and staging of, the Games Ensure that VANOC is guided in all its communications endeavours by a commitment to accountability and transparency Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 157 of 196 Celebrate and communicate success with honesty and modesty and manage adversity honestly and openly Ensure maximum inclusivity through communications that effectively address a broad range of audiences Ensure its partners receive appropriate recognition for their contribution to, and assistance with, the Games Ensure both Official Languages are reflected in mass communications to the general public Ensure maximum sustainability through communications that effectively use the Internet and other online tools to broadly communicate As a centralized service function at VANOC, Communications serves a broad variety of internal and external groups. Internally, all VANOC functions rely on Communications to some degree. Every time a function communicates internally or externally, it has the opportunity to reinforce the VANOC brand and to contribute to the image and reputation that will shape VANOC’s internal and external reputation. Communications is developing develop close working relationships with every function to ensure the Organizing Committee’s messages are communicated accurately, effectively and consistently. All written, electronic and creative communications involve Communications. Many functions will work alongside with Communications, such as the CEO Office, Workforce, Brand and Creative Services, Marketing and Cultural Olympiad and Ceremonies. Other functions will work with Communications on an as-needed basis; however effective communications in every area is fundamental to a successful Games. Externally, the local, national and international media will rely on Communications to be kept informed of the Vancouver 2010 Winter Games planning, VANOC’s accomplishments and its challenges in order to effectively communicate to their audiences. Other external groups, such as VANOC’s partners and the International Olympic Committee and International Paralympic Committee, will work in close partnership with VANOC’s Communications team and will be major users of work produced by this function. Communications also assumes practical responsibility for ensuring that external and internal communications, as appropriate, are undertaken in Canada’s two Official Languages. This is critical to meeting VANOC’s obligations under the Official Languages Act, to reflect Canada’s linguistic duality and to ensure all Canadians have the opportunity to understand and share in the ownership and spirit of the Games. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 158 of 196 Key functions are as follows: Communications Services Develop an overarching Communications plan for both proactive and reactive communications strategies in all key areas, including a crisis communications plan Define and manage the consistency, accuracy and brand focus (personality) of VANOC’s key messaging to all internal and external parties Partner in the development and execution of a strategic research program that will inform, guide and provide valuable feedback on the communications program Ensure the strategic provision of a host of communications services including: editorial services (translation, writing, editing, accuracy checking and publication management), Internet management, media relations and community relations to all VANOC departments and external stakeholders Media Relations and Specialized Sport Communications Communicate day-to-day information about VANOC and the Games leading up to, during and immediately following the Games to the local, regional, national and international media Plan and execute media conferences, photo opportunities, media briefings and news releases to proactively communicate and respond to issues Respond to media enquiries and arrange media interviews Develop and execute, in partnership with the Canadian Olympic Committee, a strategic communications program in support of, and on behalf, of the Own the Podium 2010 program Community Relations and Marketing Communications Create and manage programs to engage communities in the Games, including special events and execution of a Canada’s Games strategy Work with VANOC’S government and other Games partners to identify and address issues arising from hosting the Games, including community consultation Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 159 of 196 Meet public demand for speakers, presentations and participation at events Manage the Vancouver and Whistler information centres Manage the overall advertising strategy for VANOC to ensure effective messaging coordination and prudent spending Work in close partnership with the Marketing team, direct the marketing communications for VANOC and our family of sponsors, including the brand protection communication plan development and execution Editorial Services Provide editorial overview, design, edit and print services for all VANOC departments to ensure consistency of information, accuracy, tone, messaging and efficiencies in production costs Provide writing, editing, fact checking, event photography and translation services to all VANOC departments Manage the print production process, ensuring consistent application of VANOC graphic standards Take the lead role in the compilation of the official Post-Games Report required by the IOC Charter Internet Management Develop the overall website/Internet/intranet strategy including, functionality, look and design and content to ensure maximum effectiveness of internal/external communications and to maximize opportunities for sustainable communications Manage the website as a highly effective tool to facilitate business processes, including employment and volunteer applications, procurement and revenue generation including but not exclusively, ticket and merchandise sales Ensure website content is consistent, reflects VANOC’s communication priorities and is the main source of information on the 2010 Winter Games Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 160 of 196 Workforce Communications In close partnership with the Workforce team, develop and execute a workforce communications plan for staff, volunteers, contractors and partners Develop and manage a host of intranets and extranet to serve the information needs of the Games workforce Plan and execute events that inform, inspire and motivate the workforce in the preparation, execution and windup of the Games Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 161 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 162 of 196 23. APPENDIX 12: VANOC SUSTAINABILITY POLICY 1. BACKGROUND Olympic and Paralympic Games can help bring about important social, economic and environmental benefits if they are planned, managed and conducted in a way that minimizes adverse impacts and maximizes positive opportunities. The first two pillars of the Olympic Movement are sport and culture. In 1994, environment became the third pillar in the Olympic Charter. Since then, most Games host cities have developed organization-wide environmental policies and management systems for implementing and monitoring performance on their environmental commitments and requirements. In 1999, the International Olympic Committee (IOC) committed to use sport to help advance sustainable development. In 2003, it adopted a set of social, economic and environmental indicators (the Olympic Games Impact reporting project) to be reported on by all host cities as a means of measuring and telling the story of the difference made by the Olympic Family. During the bid phase (2001-03), the Vancouver 2010 Bid Corporation responded to input and expertise from the region’s citizens with a vision and plan that reflected broadly-held public values. The desire to host Games that create value by being both environmentally innovative and socially inclusive is reflected in VANOC’s sustainability commitments and objectives. Vancouver 2010 and London 2012 are the first Winter and Summer Games, respectively, to formally incorporate sustainability principles and practices in the planning, staging and legacy of the Games. 2. DEFINITION OF SUSTAINABILITY At VANOC, sustainability means managing the social, economic and environmental impacts and opportunities of the Games to produce lasting benefits – locally and globally. 3. SUSTAINABILITY POLICY VANOC’s vision is to create a stronger Canada whose spirit is raised by its passion for sport, culture and sustainability. For this reason, Sustainability is a corporate value, a strategic objective and one of 50 Games functions at VANOC. VANOC’s Corporate Sustainability Policy provides the foundation at the governance level for an integrated and systems-based approach to making the organization’s sustainability commitments and aspirations operational. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 163 of 196 3.1 Policy Scope This policy applies to any decision-making activity over which VANOC has direct influence and authority and that may create a material impact (positive or negative, cost or reputation) on the delivery of VANOC’s sustainability performance objectives. Based on Vancouver 2010 Bid commitments, VANOC’s corporate strategic objectives and business plans and ongoing dialogue with key partners and stakeholders, VANOC has developed six corporate-wide sustainability performance objectives. They are: Accountability Environmental Stewardship and Impact Reduction Social Inclusion and Responsibility Aboriginal Participation and Collaboration Economic Benefits Sport for Sustainable Living 3.2 Engagement A hallmark of the application of a sustainability ethic in a business context is the ability to identify and respond to the needs and interests of groups affected by the activities of the business in a way that is appropriate to its purpose, structure and fiscal context. A multi-party approach to hosting the 2010 Winter Games has been a cornerstone of VANOC’s strategy since the bid phase and is reflected in a variety of agreements and commitments. Key VANOC partners and stakeholders included in the scope of the Organizing Committee’s sustainability activities include senior governments, local governments and First Nations, the International Olympic Committee, the International Paralympic Committee, the Canadian Olympic Committee, the Canadian Paralympic Committee and community and non-government stakeholders affected by the Games. 4. POLICY OUTCOMES AND IMPLEMENTATION 4.1 External Reporting VANOC’s delivery on its six sustainability performance objectives will be tracked and evaluated through a series of specific measures and/or indicators that will be reported annually in a sustainability report. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 164 of 196 4.2 Internal Planning and Execution The VANOC Executive and senior leadership team will provide leadership and resources to support implementation of the Organizing Committee’s six sustainability performance objectives. The Sustainability function at VANOC will administer this policy and associated procedures through VANOC’s Sustainability Management and Reporting System (SMRS). The SMRS will define sustainability performance targets and outcomes, foster an integrated approach within our Organizing Committee to delivering them and provide the basis for transparent reporting and evaluation. VANOC’s SMRS will be based on widely-accepted business management practices and standards as they relate to a short-lived project-oriented organization. VANOC’s Sustainability team will manage corporate-wide sustainability programs or activities including engagement with critical external stakeholders on sustainability strategies and VANOC’s obligations under the Inner-City Inclusive Commitment Statement. VANOC’s SMRS will also track and report on VANOC’s performance, with our government partners, on protocols and commitments made during the bid phase to the Four Host First Nations. VANOC business managers will identify risks and opportunities that may influence successful implementation of the six sustainability performance objectives. In consultation with VANOC’s Sustainability and Aboriginal Participation teams, relevant opportunities and requirements will be identified in all function business plans, service catalogues, the VANOC Master Schedule and staff incentive and recognition. 4.3 Governance VANOC will establish an external advisory committee, the Board Advisory Committee on Sustainability Performance (BACSP), which will review publicly available information regarding VANOC’s activities and outcomes relative to its six sustainability performance objectives and provide the results of its review to the VANOC Sustainability and Human Resources Committee. 5. RELATED COMMITMENTS Implementation of VANOC’s sustainability strategy is managed in conjunction with several key commitments, as outlined in the following documents: 2002 Multiparty Agreement for the 2010 Olympic and Paralympic Winter Games 2003 Host City Contract for XXI Olympic Winter Games, specifically VANOC’s obligation to participate in the IOC’s Olympic Games Impact (OGI) reporting project. 2003 Inner-City Inclusive Commitment Statement Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 165 of 196 Four Host First Nations 2002 Shared Legacy Agreement (Squamish and Lil’wat) 2003 Memoranda of Understanding (Musqueam and Tsleil-Waututh) 2005 Protocol (Statement of Principles) Governing the Relationship between VANOC and the Four Host First Nations British Columbia and Canadian Environmental Assessment Acts requirements 6. AREAS OF SHARED RESPONSIBILITY 6.1 VANOC, Government of Canada, Province of BC, City of Vancouver, Resort Municipality of Whistler and 2010 Legacies Now Society Delivery of bid phase commitments to the Four Host First Nations and Vancouver’s three innercity communities is a responsibility VANOC shares with its government partners. Games-related initiatives in these two areas have their own implementation processes in which VANOC participates on a collaborative basis with government and other parties. 6.2 Four Host First Nations The Olympic Movement has recognized the importance of increasing the participation of Indigenous peoples in the Olympic Movement and the 2010 Games are being held in the traditional territories of: the Lil’wat, Musqueam, Squamish and Tsleil-Waututh First Nations, known collectively as the Four Host First Nations. VANOC has a legal obligation to consult the Four Host First Nations with pre-existing rights in their respective traditional territories. Commencing in 2002, VANOC, the Government of British Columbia and the Government of Canada have entered into a series of agreements with the Four Host First Nations to advance their involvement in all aspects of the Games, including governance, economic and cultural benefits, participation in environmental approval processes, sport development, and legacy. In November 2005, a Protocol Agreement with the Four Host First Nations was signed that made VANOC the first organizing committee in the history of the Winter Games to recognize Aboriginal peoples as partners in the Games. An independent Four Host First Nations Secretariat has been established for the purpose of managing collaboration among the Four Host First Nations and between the Four Host First Nations and VANOC and the two senior levels of government. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 166 of 196 6.3 Inner-City Communities (Vancouver) Guided by an independent assessment of the impact of hallmark events on vulnerable urban communities, the Inner-City Inclusive Commitment Statement was developed to ensure that the legacy of the 2010 Winter Games was one of creating direct benefits and managing potential adverse impacts for Vancouver’s inner-city neighbourhoods. The Inner-City Inclusive Commitment Statement was submitted to the IOC as part of the Vancouver 2010 Bid and has been endorsed by VANOC and its federal, provincial and municipal government partners. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 167 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 168 of 196 24. APPENDIX 13: OFFICIAL LANGUAGES 1. INTRODUCTION In keeping with Canada’s linguistic duality and cultural diversity, VANOC is working closely with francophone communities across the country to promote Canada’s two Official Languages and activate the nation-building potential of the Games through all areas of VANOC’s planning and service delivery. The scope of VANOC’s activities includes: Partnership with francophone communities Signing a protocol agreement with francophone organizations to assist VANOC in delivering bilingual Games Determine an action plan outlining the structure of this collaboration Integration of Official Languages commitments in the planning of strategic and operational phases of the Games Working closely with VANOC functions to integrate Official Languages requirements throughout the Organizing Committee Monitoring and Reporting System Establish mechanisms that will allow VANOC to track progress 2. RESPONSIBILITIES The responsibilities of VANOC’s Official Languages function include: Engagement of the francophone communities in VANOC’s key areas of planning and the provision of services Implementation of a recruitment strategy to engage paid staff and volunteers with the ability to communicate fluently in both French and English Development of a workplace culture that values staff with knowledge of the French language, provides appropriate training opportunities, develops a community of interest with francophone organizations and integrates cultural appreciation throughout the workplace Ensuring the integration of Canada’s Official Languages in communication and marketing materials as well as cultural activities and programs Delivery of client, athlete, emergency and specialized services as well as signage, protocol activities and ceremonies in both Official Languages Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 169 of 196 3. ASSUMPTIONS VANOC’s Official Languages function recognizes and adheres to the language requirements as set out in the Olympic Charter (Chapter 2, Section 24). This plan meets the Host City Contract (Section 69) and the MPA (Section 8 and Annex A) requirements. The requirement to use both of Canada’s Official Languages in the planning, execution, and evaluation of the Games is fully aligned with VANOC’s values and guiding principles. The financial requirements generated by the Official Languages initiatives are accounted for in the Human Resources, Sustainability and International Client Services divisional budget and in relevant VANOC functions. The partnership with francophone communities will facilitate VANOC in reaching its Official Languages objectives. Translation services will be delivered centrally at VANOC through the Revenue, Marketing and Communications division. 4. IMPLEMENTATION STRATEGY The parties involved in delivering VANOC’s Official Languages requirements include: External Groups Government of Canada o The Standing Senate Committee on Official Languages o 2010 Federal Secretariat o Department of Canadian Heritage o Commissioner of Official Languages Provinces of Quebec and New Brunswick Other provincial, territorial and municipal governments Province of British Columbia City of Vancouver Resort Municipality of Whistler Members and organizations of the French linguistic minority communities, principally: o Fédération des francophones de la Colombie-Britannique o Fondation canadienne pour le dialogue des cultures Members and organizations of l’Organisation internationale de la Francophonie Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 170 of 196 VANOC’s sponsors and official suppliers The IOC, IPC, IFs and athletes COC and CPC Members of the public Internal • VANOC employees (paid staff and volunteers) and third-party service providers appointed by and/or selected by and/or acting on behalf of VANOC 4. STRATEGIES 4.1 Official Languages function at VANOC (OL) A Linguistic Policy will be established outlining VANOC’s Official Languages requirements through all phases of the Games. Once approved by the VANOC Executive Team, it will be communicated to all VANOC staff. All functions must take VANOC’s linguistic obligations into account and have an explicit responsibility to take tangible steps to incorporate Canada’s Official Languages in their service delivery activities. OL will meet with key function leaders in order to explain their official languages requirements along with the rationale for implementation, as well as to facilitate the integration of those requirements in their operational plans and to offer support and solutions throughout the planning process. OL will create a bilingual workplace by continuing to deliver the following initiatives: Organize and administer French as second language training, available to all staff, in order to meet and/or exceed our workforce bilingualism objectives Organize activities and events relating to French culture destined to promote the language and VANOC’s commitment to bilingualism Hold information sessions with francophone communities to encourage them to apply at VANOC for both paid and volunteer opportunities 4.2 Key VANOC Functions Human Resources – Official Languages will play a role in developing the Human Resources division’s strategies for paid staff and volunteers. Specifically, the recruitment, orientation and external communication strategies for all staff (paid or volunteer) will be addressed in both Official Languages. Advertisements for workforce opportunities are released concurrently with Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 171 of 196 either the French advertisement appearing in local/provincial minority language print or electronic media. If minority language media services are not available, advertisements will appear in the English media in both English and French. Revenue, Marketing and Communications – VANOC’s Revenue, Marketing, and Communications division will ensure that all planned promotional, media and public information material produced and distributed prior to, during and after the Games is provided simultaneously in both Official Languages. This includes the production of official Games programs in both Official Languages as it relates to this function. Advertisements are released concurrently with either the French advertisement appearing in local/provincial minority language print or electronic media. If minority language media services are not available, advertisements will appear in the English media in both English and French. The division will ensure VANOC’s external website is available in both Official Languages. Every effort will be made to ensure that an equivalent amount of supportive documentation and third-party material is available in each Official Language. Translation services at VANOC will be delivered as a central function under the Revenue, Marketing and Communications division. The division will be responsible for ensuring there is sufficient resource capacity to deliver information to the public simultaneously in both Official Languages prior to and during the 2010 Winter Games. Sport – Services and administration information will be available to the Olympic Family, athletes, coaches, technical officials and other delegation members in English and French. All public address announcements at the venues will also be in English and French. Finance – To the extent reasonably possible, VANOC’s Finance division will ensure that external procurement requests for goods and services are available in both Official Languages and will also ensure that service providers acting on behalf of VANOC will meet similar linguistic obligations and standards. At a minimum, VANOC will provide summaries of all posted procurement opportunities in both Official Languages. Technology and Systems – VANOC’s Technology and Systems function will seek data in real time while ensuring that employees have access to available technology in (either or) both of Canada’s Official Languages. The function will provide French and English language versions of public-facing systems such as the Vancouver 2010 website (vancouver2010.com) and the volunteer portal. It will also provide system design that will include multilingual functionality for the delivery of background information, for media use. VANOC will identify solutions to ensure the capacity to deliver information simultaneously in both languages during the Games. This function is responsible for the provision of event results simultaneously in both Official Languages. Service Operations – Prior to, during and after the Games, VANOC will ensure that official signage relating to the Games, including that of VANOC’s partners, official sponsors, suppliers, hotels and all venues, are in English and French. Identification passes and tickets will also be in both languages as well as written material giving administrative information for delegation Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 172 of 196 members. As well, this function is responsible for the provision of background information for media use, in bilingual format. Cultural Olympiad and Ceremonies – These functions will play a central role at showcasing Canada’s cultural and linguistic duality by incorporating elements of Canada’s Official Languages in the Cultural Olympiad, festivals, displays, public address announcements and ceremonies. 5. IMPLEMENTATION SCHEDULE The schedule to implement VANOC’s Official Languages commitments includes: December 2005 – Collaborative agreement signed with francophone communities July 2006 – Developed planning guide to integrate Official Languages in key VANOC functions March 2007 – Establish progress activity report with key performance indicators April 2007 – Align francophone community action plan with VANOC’s Official Languages strategy 6. BACKGROUND The Multiparty Agreement sets out many conditions and responsibilities that all Parties agreed to abide by. One of the conditions was [J (ix)] “with respect to Olympic activities, strive to present themselves to the public and the Olympic family in both Official Languages.” In addition, VANOC has specific language obligations under the Olympic Charter (Ch. 2, section 24), the HCC (section 69) and Canada’s Official Languages Act. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 173 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 174 of 196 25. APPENDIX 14: EVALUATION MECHANISMS Evaluation mechanisms associated with the Games can be defined as being of three different groupings: Those mechanisms associated with evaluating and monitoring the progress VANOC is making towards delivering on its primary objective: that of delivering the Games on time and on budget. Many of these elements are focused on issues of schedule and budget. Mechanisms associated with ensuring that VANOC respects commitments made to its stakeholders during the bid phase and thereafter. This group looks at specific outcomes and also how the Games are executed. Mechanisms associated with considering the longer-term objectives of its key stakeholders. Most key stakeholders became involved with the Games in an effort to achieve certain long-term outcomes. The majority of this section deals with the first group of mechanisms. These are areas where VANOC exercises a considerable degree of control or influence. The second group is largely addressed through VANOC’s Sustainability Management and Reporting System (SMRS), based on a Corporate Sustainability Policy approved by the VANOC Board and procedures for implementation. This is addressed in Appendix 12. The SMRS is designed to ensure that commitments and outcomes are tracked, monitored and reported upon. Regular evaluation and reporting from this system will be summarized and publicly released in an annual Corporate Sustainability Report to ensure accountability for these commitments. Performance data contained in the post-Games Sustainability Report will be independently verified. VANOC’s Sustainability Reporting process also includes provisions for ongoing community consultation and continuous improvement. The third group consists of issues largely the responsibility, or at least, in the interest of stakeholders including VANOC’s government and sport partners. The group would include issues such as the impact of the Games on tourism, health and participation in sport, and on elite athletics. These are areas where VANOC’s limited lifespan does not allow for longer-term evaluation. They are also areas where stakeholders have existing follow-up mechanisms and the tools for appropriate monitoring and evaluation. As the Games project unfolds, it becomes necessary to ensure that progress and strategic decisions are evaluated on an ongoing basis. Such evaluation should be designed to ensure that the organization does not veer unintentionally off track as a result, perhaps, of a sequence of small decisions rather than one or more obviously significant ones. There are a number of mechanisms available to VANOC that can support the need to evaluate progress. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 175 of 196 Schedule Management VANOC’s integrated planning team has prepared a Games Master Schedule to assist senior management and function leaders in preparing for the Games. The level of detailed use of the scheduling service by each function varies depending on the specific needs of that function and the nature of their work. However, a minimum level of participation in the centralized scheduling will be required to ensure overall integration of plans. Project management and project reporting techniques are combined to generate higher level “dashboards” that identify progress on milestones as well as challenges or risks encountered. The dashboard is designed to allow effective oversight by those empowered to effect corrective action. The Master Schedule is an essential tool to move progress planning forward on critical Games deadlines. Developed through coordination with the VANOC functions, IOC, IPC, government partners and sponsors, the Master Schedule provides VANOC with the information it needs to effectively plan, manage, integrate and communicate its activities. To keep it manageable, the Master Schedule includes only the core activities that are critical to delivering the Games and the VANOC strategic plan. The Master Schedule summarizes the plans of VANOC’s many functions and its multiple partners into one integrated, centrally managed schedule. The format of the Master Schedule is a user-friendly database that can be filtered and sorted multiple ways. Each activity has single point accountability, an expected completion date, and is ranked as follows: Milestones are significant VANOC achievements that are essential/core to delivering the Games and to achieving VANOC’s strategic objectives. The schedule has fewer than 100 milestones. Deliverables are significant results (internal or external) that contribute to the achievement of a milestone. Generally, milestones have four to six deliverables. There is often more than one function or team working towards a given milestone. To highlight these interdependencies, deliverables are grouped together for an integrated view of the schedule. Key Actions are the key steps to achieve the deliverables. This level of detail is included in the Master Schedule because it has a cross-function and/or partner impact or dependency that requires greater coordination and communication. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 176 of 196 There are many thousands more tasks not tracked centrally in the Master Schedule. These are detailed activities (such as smaller project plans, typically of shorter duration or requiring minimal resources to complete) or large complex areas (such as Venue Development, Technology and Overlay) that require comprehensive project controls, including schedules. These tasks are managed within the function itself. If necessary the detailed function schedules can be accessed. Functions such as Venue Development, Overlay and Technology have schedules with tens of thousands of activities. Developing the Master Schedule 1. As part of the business planning process, each function area developed a schedule. Functions identified the key activities/deliverables and completion dates associated with their strategies and delivery models identified in their business plans. 2. The information gathered from the Olympic Games Knowledge Management System and the IOC and IPC Winter Model Schedules was a valuable reference tool. The Winter Model includes obligations and recommended activities and timing, based on previous Games experience. 3. Using the information from the function schedules, Project Management worked with the Executive and the VANOC Games Time Operations Steering Committee to identify VANOC’s milestones. 4. Leaders from each function worked with Project Management to: rank the activities align deliverables with VANOC’s milestones check the logic and sequencing of activities ensure consistency and alignment across all of the functions (e.g. cross-checking activities according to impact on customer groups) 5. The IOC and IPC were consulted to ensure they were satisfied that VANOC’s obligations were adequately incorporated and that, overall, the schedule met their monitoring and reporting needs (Note: VANOC is contractually required to have the IOC and IPC approve and receive regular updates of the VANOC Master Schedule). 6. Workshops were held with the federal, provincial and municipal government partners. The structure and format of the schedule has been established. The partners have provided feedback and will add their deliverables and/or comments and key actions in due course, once they have completed reviewing VANOC business plans and have developed their detailed plans. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 177 of 196 Oversight, Tracking and Communications The Master Schedule is a dynamic tracking mechanism and VANOC will continue to refine it as planning progresses. To ensure adequate oversight, tracking and communication, change management is integrated into VANOC’s Monthly Management Report process. The Monthly Management Report includes a Gantt chart of VANOC’s milestones and deliverables for the following six months and highlights any changes to them. Each month, VANOC functions report completed items and request any necessary schedule changes. Within the report, delivery issues are identified and assessed and are monitored until resolved. Monthly reports are reviewed by the responsible member of the VANOC Executive Team and then by a cross-function team to ensure impacts are thoroughly assessed and challenged. Once approved by the Executive Team, the report is distributed to VANOC Board of Directors and the Senior Leadership team and the Master Schedule is updated. Government partners and the IOC and IPC receive monthly updates through their primary points of contacts. IOC Coordination Commission Meetings The Olympic Games Coordination Commission is formed shortly after the election of a host city to oversee and assist the organizing committee (OCOG) in the planning, construction, and implementation of the Olympic Games. The Coordination Commission acts as a liaison between the IOC, the OCOG, the International Federations (IFs) and the National Olympic Committees (NOCs). The Commission includes representatives of the IOC, the IFs, the NOCs and an athlete representative as well as experts in the fields of media, environment and TV technology. The Commission is a critical component of oversight and evaluation conducted by VANOC’s international stakeholders The 2010 Winter Games Coordination Commission has met on several occasions since 2003 and now meets twice yearly. VANOC is required to report on its progress to the IOC’s expert commission. The process of preparing for, and reporting to, the Commission adds an important layer of accountability and also validation for key decisions taken by VANOC. The Commission provides advice to VANOC to enhance Games planning. Should the Commission disagree with VANOC’s approach or be concerned about any element of its planning, VANOC is made aware of it. In most cases, concerns raised by a Coordination Commission will be accompanied by a recommended course of action. The presence of the Coordination Commission provides an effective check and balance against VANOC activities. In addition to regular Coordination Commission visits, IOC working groups also visit Vancouver for project reviews. These working groups review VANOC plans across a full range of Games preparations. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 178 of 196 Centralized Project Reporting As the organization grows in size and complexity, a structured and centralized form of project reporting becomes a critical tool to allow senior management, the Board of Directors and VANOC’s government partners to adequately monitor the progress of preparation and readiness. In addition to ad hoc reports prepared on specific issues as required, a more formal form of centralized reporting has been adopted. The monthly report now includes financial, schedule, risk- and issue-tracking components to allow key leaders to assess progress and make critical decisions. VANOC reports the results of its financial operations to the public on a quarterly basis through the release of its financial statements and management discussion and analysis. Venue Construction The venue construction program follows sound and proven project management techniques and is subject to a variety of control and evaluation mechanisms including: Weekly schedule, budget and project reviews with each project management team Regular reviews with internal stakeholders who represent key user groups Weekly venue construction executive reviews of each project Reviews by a construction advisory committee comprised of recognized construction experts in BC Close working relationships with municipal, partner, contractor and other experts The venue program is closely monitored by VANOC’s Executive and its Board of Directors working through the Finance Committee. The Performance and Accountability Agreement between VANOC and BC adds a further layer of project control by requiring regular reporting to the Province and careful and specific management of venue construction contingency. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 179 of 196 Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 180 of 196 26. APPENDIX 15: LEGACIES OF THE 2010 WINTER GAMES 1. INTRODUCTION Since Vancouver entered the domestic competition in 1998 for a chance to host the 2010 Winter Games, there has been a constant theme centred on the creation of legacies. The Games will be more than 17 days of Olympic and 10 days of Paralympic competition. They will result in legacies and benefits for the host communities, sport, the country and the global Olympic and Paralympic movements. The Vancouver 2010 Winter Games are a hallmark event for Canada. The Games provide an international stage to: Showcase our country, values, unique cultural experience, abilities, achievements and commitment to sustainability to the rest of the world Demonstrate our commitment to athletic achievement and Olympic and Paralympic ideals Promote Canada’s multiculturalism and its linguistic duality Promote Canada as a place to visit and invest, and as an accessible destination for people with disabilities Stimulate economic activity and job creation before, during and after the Games. Make social inclusion, particularly of groups that have not traditionally benefited from the Games, one of the legacies of the Games Create legacies through investments in sports facilities, cultural and sports endowment programs and major infrastructure improvements Increase appreciation and recognition within the international diplomatic community and other international dignitaries of the Vancouver, Whistler and surrounding areas Provide a continuing platform for long-term tourism promotion Since the early bid phase, the 2010 Winter Games plan has always been focused on what the impact will be, long after the after the Flame is extinguished in 2010. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 181 of 196 As soon as the Games were awarded to Vancouver on July 2, 2003, work commenced to put the successful bid plans into action. VANOC, working with its government, sport and First Nations partners, has made a number of refinements and updates to the bid plans in the last four years. Each change and each decision has been linked to strengthening the Games delivery plans, maximizing efficiencies and improving the legacies. The venue development focus is to generate the conditions necessary to host outstanding Games in 2010 and ensure the Games will leave sport, cultural, community, tourism, human, social, environmental and economic legacies. 2. VANCOUVER 2010 SPORT VENUES LEGACIES The Vancouver 2010 venue development program is focused on maximizing the use of existing facilities and building new venues that maximize the potential of post-Games uses. Working with its partners, VANOC’s venue plan incorporates ideas of how the new facilities will operate after the Games for the continued development of high-performance and recreational sport and community uses for both able-bodied people and for people with a disability. With an investment of $580 million by the Governments of Canada and British Columbia, VANOC has worked with local partners to help deliver a venue program that will provide spectacular theatres for sport in 2010 and facilities that will provide summer and winter sport, community and recreational legacies after the Games. An additional investment of $110 million by the Governments of Canada and British Columbia has created the 2010 Games Operating Trust. The trust was established to ensure the longterm financial viability of certain venues thereby adding very substantial community and sport assets to the Vancouver-Whistler region. The 2010 Games venues are being developed with a sustainable footprint and will leave a legacy of green buildings designed to conserve natural resources such as water, materials and energy throughout their operations. Efficiencies in building design will create a legacy of lower operating costs for future venue owners achieved through the capture and re-use of waste heat and/or rainwater. 2.1 Venue-by-venue summary of legacy mode operations Hillcrest/Nat Bailey Stadium Park During the Games, the venue will host curling and wheelchair curling. After the Games, the curling venue will become a multi-purpose community recreation centre that will include an ice hockey rink, gymnasium, library and six to eight sheets of curling ice. Attached to and being constructed with the new curling venue/community centre is a new aquatic centre with a 50metre pool and leisure pool to be managed by the Vancouver Board of Parks and Recreation. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 182 of 196 UBC Winter Sports Centre During the Games, the venue will host ice hockey and ice sledge hockey in a new 7,000 seat competition arena. After the Games, the venue will become a recreational and highperformance multi-sport legacy facility with 5,000 seats. The new training arena will be easily convertible for ice sledge hockey training and competition post Games. Pacific Coliseum During the Games, the Pacific Coliseum will host figure skating and short track speed skating. In 2005 and 2006 a number of improvements were completed to update the Coliseum, originally built in 1968. Renovations included accessibility upgrades, the replacement of 16,000 seats and the ability to convert the ice surface to international size as well as updated mechanical and electrical systems. Remaining improvements to the ice plant and dehumidification system will be completed in 2007. After the Games, as the largest building within the Hastings Park complex, the Pacific Coliseum will continue to serve as a venue for diverse events such as ice shows, boxing, basketball, hockey, concerts, large assemblies and trade and consumer shows. Richmond Oval During the Games, the Richmond Oval will be an outstanding theatre for speed skating with a new 400-metre track housed in a 33,750-square-metre facility. After the Games, the facility will become an international centre of excellence for sports and wellness. The building’s flexible design will allow it to be used for a variety of sport and community functions. The facility will be the centrepiece of a major new urban waterfront neighbourhood in Richmond featuring a mix of residential, commercial and public amenity development. Whistler Creekside During the Games, Whistler Creekside will host the alpine skiing events. Improvements include the contouring and reshaping of the men’s and women’s downhill courses, additions to the existing snow-making system and an enhanced reservoir for snow-making. After the Games, Whistler Creekside will continue to offer a world-class ski area to recreational skiers and will be a site for future international competitions and Canadian team training. Whistler Sliding Centre During the Games, the Whistler Sliding Centre will feature bobsleigh, luge and skeleton events on a new 1,450-metre track on Blackcomb Mountain. After the Games, the track will be operated under the direction of the Whistler Legacy Society, supported by an endowment trust that was established by the federal and provincial governments as part of their 2010 Winter Games venues investment. This high-performance competition centre, located in the heart of the Whistler/Blackcomb resort, will introduce sliding sports to the area’s many visitors. It also Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 183 of 196 has the potential to be part of a North American competition circuit with tracks that were built for previous Games in Lake Placid (1980), Calgary (1988) and Salt Lake (2002). Whistler Nordic Competition Venue During the Games, the Whistler Nordic competition venue will host biathlon, cross-country skiing, ski jumping and Nordic combined events in new facilities in Whistler’s Callaghan Valley. After the Games, the Nordic venue will be operated by the Whistler Legacies Society, supported by an endowment trust that was established by the federal and provincial governments as part of their 2010 Winter Games venues investments. Post-Games use is still under consideration. The trails can be used in a variety of ways for the enjoyment of local residents, visitors and athletes from recreational to high-performance sport. Paralympic Games biathlon rifles will be left at the venue for post-Games training and competitions in this sport. Cypress Mountain During the Games, Cypress Mountain will host freestyle skiing and snowboard. Venue upgrades include modifications to existing runs, a new in-ground halfpipe, a snow-making system and water reservoir, lighting, a new freestyle site for aerials and moguls, and a re-graded parallel giant slalom course. The enhancements to Cypress Mountain in 2010 will enhance the Cypress experience for recreational and competitive users. Killarney and Trout Lake ice rinks – Vancouver Ice rinks at both Killarney and Trout Lake community centres will be renovated and upgraded and used as practice venues during the 2010 Winter Games. Following the Games, the rinks will be converted for community use. 3. VILLAGES Two full-service Olympic and Paralympic Villages are being built for the 2010 Winter Games. After the Games, the villages in Vancouver and Whistler will create supportive housing in Vancouver and will help address long-term, affordable employee housing needs in Whistler. Vancouver Olympic and Paralympic Village VANOC is working with the City of Vancouver to create an exciting urban waterfront Olympic and Paralympic Village on former industrial lands along southeast False Creek. After the 2010 Winter Games, many of the buildings of the Vancouver Olympic and Paralympic Village will be converted to residential housing for families. In addition to restoring contaminated lands, the legacy neighbourhood will feature innovative community energy systems, the highest quality green buildings and habitat corridors through parks and green space. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 184 of 196 The Vancouver Olympic and Paralympic Village is the first phase of a new mixed-use community and will contribute about 1,100 residential units, 250 of which will be non-market (supportive) housing units. Whistler Olympic and Paralympic Village The Resort Municipality of Whistler (RMOW) in partnership with VANOC, will convert the Olympic and Paralympic Village into its newest resident housing neighbourhood. The Village is being designed firstly to serve as the Whistler athletes village for the 2010 Olympic and Paralympic Games. It will then become a permanent mixed-use neighbourhood designed to support Whistler’s goal of housing 75 per cent of its employees within the community. In addition, this village will be a model sustainable neighbourhood, incorporating the latest in green building design and energy systems. The Whistler Athlete Centre (WAC) is a housing and training facility for Canada’s best current and future athletes, and allows them to affordably access local world-class terrain during their training periods. The WAC will be operational both before and after the 2010 Games. These facilities will accommodate up to 350 athletes and includes a fitness training centre. The legacy rooms will be furnished with materials acquired and used for the Games. The WAC will keep accessible rooms in the mix allowing the centre to be used by athletes with a disability for training purposes post Games. The WAC supports goals of the Own the Podium 2010 Program, a health, fitness and youth legacy as well as an event hosting legacy. WAC, in conjunction with the RMOW, will provide the Whistler Gymnastics Club with a permanent home after the Games. RMOW will also transform the decommissioned municipal landfill into a variety of community sport fields. 4. ACCESSIBILITY As part of its venue construction program and Games-time operations, VANOC is committed to providing meaningful access to people with a disability. To that end, VANOC has developed guidelines to help ensure that access for people with a disability is addressed in the venue design. The guidelines use British Columbia Building Code as a minimum standard and exceed these in areas of special importance to the Games and its participants. At Games time, the barrier-free guidelines set the minimum level of access to be provided at all Olympic and Paralympic venues. The barrier-free guidelines cover the sport venues, villages, accommodations and special event sites. VANOC is currently working on barrier-free guidelines for Game-time transport. All the barrier-free guidelines developed for the 2010 Olympic and Paralympic Winter Games will be made available to VANOC partners and stakeholders, to be used by organizations and jurisdictions in their major event planning and hosting capacities. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 185 of 196 5. TRANSPORTATION The Vancouver 2010 Bid, and now the 2010 Winter Games, are catalysts to transportation infrastructure improvements that have been on the community agenda for quite some time. The Games have helped set a time frame for these improvements which include the development of the Canada Line (rapid transit line connecting Vancouver, Richmond and the Vancouver International Airport) and the Sea-to-Sky Highway improvement project. As governments and local transportation agencies such as TransLink and the Vancouver International Airport Authority work together to create a safe and efficient Games-time transportation plan, a legacy will be a more integrated, inclusive approach to planning and delivering transportation within the Greater Vancouver and Howe Sound areas. 6. CULTURE Cultural Olympiad The Cultural Olympiad will contribute to the commissioning and development of new works of performing and studio arts. These commissioned works will live on in the community as performing arts repertoire and populate studio arts exhibitions long after the Games. Through the Cultural Olympiad’s support of public art, VANOC will contribute to the creation of public art work that will stand as a legacy in the community after the Games. Public art works have already been commissioned by the City of Richmond for the Oval project, including an exterior art installation designed by Musqueam First Nation artist Susan Point. By connecting major national and international artists with Vancouver and Whistler area artists and arts organizations, the Cultural Olympiad will help expand cultural networks and build creative capacity within the regional arts community. The Olympic and Paralympic Arts Festival will raise awareness of Canadian cultural products by the global community and increase exports of featured work. Major international producers, programmers and curators will attend the Arts Festivals and will experience extraordinary Canadian works of art, some of which will be invited to tour or exhibit at subsequent festivals and events around the world. Opening, Closing and Victory Ceremonies Ceremonies will provide opportunities to showcase existing Canadian world-class entertainers and to promote new and up-and-coming artists and acts and, through enhanced exposure to a worldwide audience, leave a legacy of new business opportunities and enriched visibility for Canadian artists. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 186 of 196 Through the scale of the ceremonies production and technical requirements, the Opening and Closing Ceremonies will leave a legacy of enhanced BC and Canadian expertise in performing arts and large-scale event presentation knowledge, skills and creativity. Education VANOC’s education-related initiative will generate a substantial increase in the number of teachers subscribing to COC and CPC education programs and create an ongoing community among the non-profit groups developing curriculum resources for teachers in the areas of sport, culture and sustainability. This will, in turn, strengthen the overall sector. 7. ABORIGINAL PARTICIPATION The 2010 Winter Games will leave a lasting legacy for Aboriginal peoples across the country by helping to build relationships that will continue beyond the Games, building understanding of the diverse cultures and contributions of Aboriginal peoples and contributing to sport, economic and cultural development. The Games will be held on the traditional and shared traditional territories of the Lil’wat, Musqueam, Squamish and Tsleil-Waututh First Nations – known collectively as the Four Host First Nations. These First Nations are recognized as partners in the planning and hosting of the Games – a first in Olympic and Paralympic Games history, and a legacy in itself. VANOC is working with its partners to realize legacies for the Four Host First Nation communities. Some of the legacies so far include the contracts awarded to Resource Business Ventures and Newhaven Construction for work on the Whistler Nordic competition venue, financial contributions to the Squamish Lil’wat Cultural Centre being built in Whistler and the creation of a Youth Sport Legacy Fund supporting the development of Aboriginal sport. The Squamish and Lil’wat Nations are also members of the Whistler Legacy Society and will participate in the operation of a number of the 2010 venues following the Games. 8. FRANCOPHONE PARTICIPATION Through its Official Languages function, VANOC is working closely with key francophone groups across Canada to ensure that Canada’s Official Languages and cultural diversity are promoted throughout the planning and delivery of the Games. This increased awareness will help foster relationships between the minority francophone and majority anglophone communities not only within British Columbia but nationally. When Vancouver welcomes the international community in 2010, visitors will experience Canada’s linguistic duality. 9. SUSTAINABILITY ACCOUNTABILITY AND ACTION VANOC’s Sustainability Management and Reporting System (SMRS) will manage, track and report on the sustainability operational performance requirements across the organization. The SMRS and VANOC’s related sustainability policy and procedures provide a template for an Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 187 of 196 integrated and systems-based approach to putting the Vancouver 2010 Bid Corporation’s sustainability commitments into action, including performance measures and stakeholder engagement. Such a template will be a legacy for future Games organizing committees and other project entities interested in integrating sustainability into their organizations and activities. The commitment of VANOC and its partners to sustainability in the lead up to and during the 2010 Games will increase awareness of sustainability issues and inspire action on long-term behavioural change on sustainable choices among VANOC workforce, sponsors, athletes, spectators, media and the public. 10. MATERIAL LOGISTICS AND PROCUREMENT Following the Games, certain assets, such as sport equipment, will be donated to youth persons with disabilities, inner-city and Aboriginal communities for their use. Other creative procurement strategies will ensure some of the Games equipment ends up in community organizations as part of joint procurement efforts. These ideas are still under discussion. A catalogue that contains economic, environment and socially responsible products is being developed by VANOC and will be made available to future Games and private and public sector organizations that have similar requirements. 11. SPORT EQUIPMENT Sport equipment used during the Games, will be donated after the Games to equip venues for post-Games use. National Sport Organizations will have access to the equipment for future training and event hosting. 12. MEDICAL SERVICES After the Games, certain medical equipment used in the Olympic and Paralympic Villages, and at the venues, will be turned over to a number of communities for various legacy uses. 13. OWN THE PODIUM 2010 Launched in January 2005, Own the Podium 2010 is a national sport technical initiative designed to help Canada’s winter athletes win the most medals at the 2010 Olympic Winter Games in Vancouver, and to place in the top three nations (gold medal count) at the 2010 Paralympic Winter Games. The initiative is a collaborative effort supported by all of Canada’s winter National Sport Organizations (NSOs) and the major winter sport funding partners, including the Government of Canada, through Sport Canada, the Canadian Olympic Committee (COC), the Canadian Paralympic Committee (CPC), the Calgary Olympic Development Association (CODA), the Government of British Columbia, the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) and several of VANOC’s corporate sponsors. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 188 of 196 Own the Podium 2010 has established needed partnerships with governments, sport agencies and corporate sponsors to develop long-term funding stability for the winter sport system. The heightened awareness for athlete and amateur sport needs coupled with the anticipated performances of Canadian athletes at the 2010 Winter Games are expected to create an increase in the level of support from all sectors for amateur sport after the Games. 14. TECHNOLOGY AND SYSTEMS LEGACIES Technology and Systems is working with its partners and sponsors to determine technology legacy opportunities for the project. In addition to the technology contributions in terms of IT equipment and timing and scoring systems for the new venues VANOC is building, several other significant opportunities should present themselves as the project evolves. These are most likely to be in the form of equipment donations and skills training. Additionally, the Olympic and Paralympic Games are a catalyst for several infrastructure initiatives which will enhance the communities in the province of BC, and in particular communities in the Sea-to-Sky Corridor through the expansion of cellphone and dataconnection coverage in the region. 15. VANCOUVER2010.COM WEBSITE The Vancouver 2010 Olympic and Paralympic Winter Games website is demonstrating how a modern communications tool can help excite, inspire and inform people about the Games. VANOC has decided to make the bilingual website the primary source of information about the Games in an effort to reduce the reliance on traditional communications methods such as printed documents, reports, brochures and publicity materials. In legacy mode, certain sections and features of the vancouver2010.com portal will be passed on to existing or potential partners for integration or future management. Examples of these sections and features could include: the education programs and functionality developed by VANOC, and the portion of the website subscription database that has opted in to being communicated to by partner or legacy organizations after the Games in 2010. 16. HUMAN LEGACIES After the medals are awarded and the Olympic and Paralympic Flames are extinguished, there will be new sport and community facilities that can be enjoyed by all segments of society well beyond 2010. From youngsters trying on skates for the first time at the new arena at UBC to high-performance athletes sliding down the bobsleigh track on Blackcomb Mountain in a future World Cup race, the venues that will host the competitions in 2010 will continue to serve as sport legacies. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 189 of 196 But the Games will also leave important human legacies generated from the participation of people in the Games – from working for the Organizing Committee, to volunteering for the Games, to experiencing the thrill of competition as a spectator, to watching the stories unfold on television and the Internet as new sport heroes make their mark in 2010. The Games will help create an enhanced talent pool with new skills – in particular for people in the inner-city and Aboriginal communities. Some 25,000 volunteers will participate in the Games. This unique experience of contributing to an international event will create an enhanced talent pool of volunteers for BC and Canada and will provide increased awareness about the passion for and benefits of volunteerism across the country. The excitement and enthusiasm generated by the Vancouver 2010 Winter Games has the potential to create a new climate of community cooperation and volunteerism and will show the world what’s possible when a city, region and country pull together to deliver an outstanding major event. Event services training Approximately 3,500 international and national dignitaries, including Heads of State, Heads of Government and sport organizations will attend the Games. VANOC is planning to make their individual and collective experiences memorable. This will help to carry a positive voice around the world about the successful Games in Vancouver. VANOC is working with protocol chiefs from its partner groups to create a legacy of cooperation and mutual understanding in this area. Staff and volunteers that will work with the Olympic Family during the Games will gain valuable training and experience in this specialized area of diplomacy and protocol – skills they can use at future events. Sport-skilled volunteers The Games will provide a legacy of training many new sport-skilled volunteers. An estimated 4,000 volunteers with specific sport skills will be required for Games events. These volunteers will enable local venues to host local, national and world-calibre events beyond 2010. Safety Legacy VANOC and WorkSafeBC are actively working together to support worker safety and health at all Vancouver 2010 venue construction sites. The concept will also be implemented for all Games employees and volunteers. VANOC and WorkSafeBC are committed to ensuring that all workers on Olympic and Paralympic venue sites are protected from workplace injury and disease through VANOC’s goal of “zero lost time” injuries. A series of training manuals and management programs developed for the 2010 Winter Games will be available after the Games to serve as a model for safety for future major projects and events. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 190 of 196 17. PARALYMPIC GAMES LEGACIES VANOC is working closely with the Canadian Paralympic Committee and its partners to maximize the benefits of the 2010 Paralympic Winter Games. The Games provide an opportunity to increase the profile of the Paralympic Movement and athletes with a disability. With the move of ice sledge hockey and wheelchair curling to Vancouver (announced in August 2006), there is an opportunity for more spectators to experience and gain knowledge of the Paralympic Games. VANOC’s integrated planning approach to the 2010 Winter Games ensures that both Olympic and Paralympic decisions are made at the same time to ensure a seamless transition between the Games in 2010 and the creation of both Olympic and Paralympic legacies. In addition to contributing to the building of the Paralympic brand in Canada and globally, the Paralympicspecific legacies of the 2010 Winter Games include: The Athlete Centre in Whistler will keep accessible rooms in the mix, allowing the centre to be used by athletes with a disability for training purposes post Games. In legacy mode, the curling facility will remain at Hillcrest/Nat Bailey Stadium Park in Vancouver. This facility will be accessible for the use of wheelchair curlers and the development of the sport. VANOC is working with the City of Vancouver to ensure this venue is available for wheelchair curling after the Games. The UBC Winter Sports Centre will have the capability to be converted to accommodate ice sledge hockey VANOC is working with the City of Richmond to ensure wheelchair sports are on the list of high-performance sports located at the Richmond National Training Centre to be located in the facility after the Games On October 11, 2006, Richmond City Council approved the inclusion of a rowing and paddling centre (including adaptive rowing) as part of the legacy component of the Richmond Oval. The adaptive component of this program was a catalyst to secure the centre. VANOC continues to seek opportunities to ensure a legacy for Paralympic sport. 18. ECONOMIC LEGACIES OF THE GAMES Two economic impact studies conducted for the Province of British Columbia in 2002 stated that, when combined with independently measured impacts from an expanded Vancouver Convention and Exhibition Centre, hosting the 2010 Games could: Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 191 of 196 Generate $6.1 billion to $10.7 billion in economic activity Create the equivalent of 126,000 to 244,000 full-time jobs Result in tax revenues of $1.4 billion to $2.6 billion These studies will be updated in the near future. VANOC’s operating budget will largely be spent in British Columbia and the rest of Canada. From the salaries of Organizing Committee employees to the production of official Games merchandise, much of the overall operating budget is money that would not have been invested in the BC and Canadian economies without the Games. The Games serve as an important platform for long-term tourism promotion. Some three billion people will be exposed to the host city, region, province and Canada through the global television broadcasts. International media exposure increases awareness and can push the international visitor volume to the region to a permanently higher plateau, with Vancouver, Whistler, the province and Canada having their profiles raised throughout the world. The Games provide valuable opportunities to enhance the region’s hospitality and event hosting expertise along with training and the development of new skills for the Four Host First Nations, Aboriginal people and inner-city communities as they participate in delivering the Games services. New facilities in Vancouver/Whistler will help create and enhance opportunities for the region to bid on future major sport events. There’s an opportunity to create a North American circuit for sliding sports events with sliding tracks located in Lake Placid, Salt Lake, Calgary and Whistler. VANOC, its government partners and corporate sponsors will collaborate on Games-time showcasing of business innovation on sustainability to demonstrate BC and Canada’s leadership on integrated solutions to local and global sustainability challenges. 19. CONCLUSION Participants in the Vancouver 2010 Olympic and Paralympic Winter Games will see a city, region and country committed to the values of peace and development through sport. They will experience Games that have directly involved people from all regions of the country and every community in British Columbia – embracing our diverse cultures. Games athletes and visitors will be in venues and travel on transportation systems that represent a commitment to the sport, social, economic and environment legacies for the future. They will recognize the vision of those involved in planning and staging the Games that creates a stronger Canada whose spirit is raised by its passion for sport, culture and sustainability. Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 192 of 196 27. APPENDIX 16: VANCOUVER 2010 BUSINESS PLAN – GLOSSARY OF TERMS AND ACRONYMS TERMS: (Source: IOC Games Terminology, Official Core Terminology on Olympic and Paralympic Games) Olympic Family: This is a general term used to group together the various constituents of the Olympic Movement Function: A function within a Games organizing committee ACRONYMS: BCAS CEAA COC CODA COV CPC CPI CSIS ERM FIS FHFN GAAP GMS GRIP GO GVRD HCC ICS IF IOC British Columbia Ambulance Service Canadian Environmental Assessment Act/Agency Canadian Olympic Committee Calgary Olympic Development Association City of Vancouver Canadian Paralympic Committee Consumer Price Index Canadian Security Intelligence Service Enterprise Resource Management International Ski Federation Four Host First Nations Generally Accepted Accounting Principles Games Management Systems IOC’s Games Readiness Integrated Plan VANOC Games Operations Team Greater Vancouver Regional District Host City Contract International Client Services International Federation International Olympic Committee Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 193 of 196 IPC JMPA LEED MMC MOU MPA MPA2 NOC NPC NSO OBS OGI OCOG OGKM OTP PDR RFP RMOW SLOC SLRD TOP TOROC UBC VCH VCCEP VCEC VIK V2010ISU WADA International Paralympic Committee Joint Marketing Plan Agreement Leadership in Energy and Environmental Design Main Media Centre Memorandum of Understanding Multiparty Agreement Marketing Plan Agreement National Olympic Committee National Paralympic Committee National Sport Organization Olympic Broadcast Services Olympic Games Impact Organizing Committee of the Olympic Games Olympic Games Knowledge Management Own The Podium 2010 Program Definition Report Request for Proposal Resort Municipality of Whistler Salt Lake 2002 Organizing Committee Squamish Lillooet Regional District The Olympic Partner Programme Torino 2006 Organizing Committee University of British Columbia Vancouver Coastal Health Vancouver Convention Centre Expansion Project Vancouver Convention and Exhibition Centre Value in Kind Vancouver 2010 Integrated Security Unit World Anti-Doping Agency Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 194 of 196 VANOC Partners and Sponsors VANOC acknowledges the support of our sponsors and partners. Their belief in the spirit of the Olympic and Paralympic movements allows VANOC to pursue its goal of hosting an outstanding 2010 Winter Games Government Partners Government of Canada Province of British Columbia City of Vancouver Resort Municipality of Whistler Sport Partners Canadian Olympic Committee Canadian Paralympic Committee Host First Nations Lil’wat Musqueam Squamish Tsleil-Waututh Venue City Richmond Worldwide Partners Coca-Cola Atos Origin GE McDonald’s Omega Samsung Visa Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 195 of 196 National Partners Bell Canada (Premier National Partner) Hbc (Premier National Partner) RBC Financial Group (Premier National Partner) General Motors Canada Petro-Canada RONA Official Supporters Air Canada British Columbia Lottery Corporation Canadian Pacific Insurance Corporation of British Columbia Jet Set Sports Ricoh Canada Royal Canadian Mint Teck Cominco Official Suppliers Birks and Mayors Inc. Dow Canada EPCOR Haworth Canada Nortel Vincor Weston Bakeries Workopolis Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) Comité d'organisation des Jeux olympiques et paralympiques d'hiver de 2010 à Vancouver (COVAN) Page 196 of 196