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.

                     *   *   *   *   *