A17 ADMINISTRATIVE REPORT Date: June 11, 1996 Dept. File: PL0007.RPT TO: Vancouver City Council FROM: City Building Inspector SUBJECT: Wood Frame Buildings and Stucco (Outside Expertise) RECOMMENDATION A. THAT Council approve $10,000 funding for a wood-frame building and wall-cladding expert from the U.K. to come to Vancouver. Source of funds to be contingency reserve. B. THAT Council approve a grant of $40,000 to assist the National Research Council carry out a study on the local climate and building envelope problems, including some recommendations of potential solutions for future Building Codes. (Approval of this grant will require 8 votes of Council) C. THAT Council approve a 10% surcharge on Building Permit fees between $50,000 and $5,000,000 to recover these costs and instruct the Director of Legal Services together with the Director of Financial Services, to bring back the required amendment to the Building Permit fees. GENERAL MANAGER'S COMMENTS The General Manager of the Community Services Group recommends the approval of A, B and C. COUNCIL POLICY On December 7, 1995, Council expressed concern for priority in the Control of leaks in building envelopes, while considering a General Manager's report on "Leaky Buildings". PURPOSE This report recommends the approval of up to $10,000 funding to bring to Vancouver an expert, who has led a task force for the U.K. government on studying their wood frame building industry including related stucco and siding application issues. This report also recommends that we offer a $40,000 grant as our share to fund a study by the National Research Council (NRC). The above study would be funded through a consortium and would review local climate conditions and would be all-encompassing, of all current wood-frame building problems. BACKGROUND For several years now, staff have attempted to deal with leaky buildings. Since 1992 they began specifically dealing with Exterior Insulated Foam Systems (EIFS) which are basically stucco-covered. At that time they began establishing study groups, speaking at seminars, providing direct input into the design standards and the Code process and by representation on the Part 5 Building Code Committee itself. We felt we had made some improvements and more were coming. However, last summer, through several media showings and publications, concern was expressed by many affected persons that building envelope construction was becoming a serious problem on many sites and they expected the City and not the industry to do something about it. This led up to the General Manager's report on "Leaky Buildings" which was heard by Council on December 7, 1995. DISCUSSION Vancouver and the immediate area southwards to Seattle is deemed to be in a serious Decay Probability Zone, in fact one of the highest on the continent. Therefore our proposed By-law intends to deal seriously with this issue by specifically requiring private specialist designs and inspections to be made for all building envelopes. Further we are insisting that the wall drainage required in the by-law for years be provided for all cladding systems. Although it seemed a rather straight-forward task at first, to bring forward changes to our by-law, it is much more difficult to have changes accepted by members of the design and construction industry without much debate. Some fear that leakage control comes at too high a cost and refuse to use so-called "untried" new technologies. Wall drainage may have been used elsewhere for centuries, but they are more time-consuming methodologies than currently practiced locally and the extra effort will cost more as a result. This is almost exactly the same scenario that existed in the U.K. about 10 years ago. The U.K. government therefore struck up a major task force to examine the issues and they have come back with revolutionary recommendations. One of the principal members of that task force, an architect, would be interested in coming to Vancouver to hold seminars and speak to the entire local construction industry. He will speak on what specific changes were made to totally eliminate this persistent problem in the U.K. which has made it possible to expect a 10-year warranty against any leakage in stucco buildings. The seminars will be directed specifically to those with the most control of the design and the quality of construction. Unless designers and contractors are made aware of simple solutions to similar experiences elsewhere, more information on "what went wrong" is not going to help. In fact, there are currently several fact-finding studies going on locally which is exhausting potential funding for many other undertakings. Also the timing of these studies is dragging on, providing no relief for owners and potential owners of wood frame condominiums in the form of solutions. Staff have made several enquiries and have learned that, of the $15,000 necessary to bring in the expert and carry out the building science seminars and detailing study sessions locally, we are lacking $9,000. Therefore, we are requesting Council to approve funding up to $10,000 to bring in the expert and set up some study sessions during the next couple of months. In addition, NRC has recently come back with a scaled-down version of its original proposal of December 1995. They have recommended that Vancouver take control of the NRC fact-finding long-term study and donate $40,000 of the funding. Since the above studies are basically for the benefit of future owners of wood-frame Condos, it is proposed that this money also come from the contingency reserve. Because we would not see immediate benefits locally except in future editions of the Building Code, our preference is still to take what is useful immediately and this is our priority. However both are worthwhile projects and both should be done and we are recommending both for that reason. In order to recover this funding, we would propose a 10% surcharge on Building Permit fees from $50,000 to $5,000,000 in construction value where the majority of this activity is. This recovery would amount to $80,000 in a typical year. CONCLUSION If we bring in an expert on this subject who has already gone through a 10-year long study on quality-control in the wood-framing industry in a climate very similar to ours, Council will be showing the local industry that it supports establishing adequate quality control requirements locally, and the improved quality audit procedures that will be required by our by-law. By bringing to Vancouver the results of the U.K. study, local experts can then take much of the information provided rather than re-inventing the whole wheel. They can then apply it together with other acceptable building science solutions and not have to refer to any "untried" technology at all, once we all become aware of the "tested" solutions. Meanwhile, if Council also approves the grant for $40,000 we can rely upon a full-scale study by NRC which will include a detailed review of the local climate-related building envelope problems, as well as offering some long term solutions. These funds could be recovered by a 10% surcharge on the medium sized buildings which are most affected by the climate-related problems. * * * * *