POLICY REPORT URBAN STRUCTURE Date: July 25, 1996 Dept. File No.: PB TO: Vancouver City Council FROM: Director of Community Planning, in consultation with Director of Land Use and Development Manager of Real Estate Services General Manager of Engineering Services Director of Permits and Licenses Director of Legal Services Director of Finance SUBJECT: Referral of RS-5 Zoning to Public Hearing for a Portion of West Kerrisdale and for Mackenzie Heights RECOMMENDATION A. THAT the Director of Land Use and Development be instructed to make application to rezone the area generally bounded by West 41st Avenue, Larch Street, the lane west of Balsam Street, the lane north of West 45th Avenue, the lane west of West Boulevard, West 49th Avenue, Southwest Marine Drive, Southlands Place, Balaclava Street, and the lane north of West 42nd Avenue shown on Figure 1 (a portion of West Kerrisdale) from RS-1 to RS-5; FURTHER THAT the Director of Land Use and Development be instructed to make application to rezone the area generally bounded by King Edward Avenue, the lane west of Quesnel Drive, Quesnel Drive, Macdonald Street, the lane north of Elm Street, West 33rd Avenue, and Blenheim Street shown on Figure 2 (Mackenzie Heights) from RS-1 to RS-5; FURTHER THAT the Director of Land Use and Development be instructed to make application to amend the RS-5 District Schedule to control the maximum area of impermeable materials on site, generally in accordance with Appendix A; AND FURTHER THAT these applications and by-law be referred to Public Hearing, together with the condition of approval recommended by the Director of Land Use and Development that, if approved at Public Hearing, the by-laws be accompanied at the time of enactment by the renamed and amended "RS-5 Design Guidelines" (formally the "South Shaughnessy RS-5 Design Guidelines" - Appendix B) to be adopted by resolution of Council for the two new RS-5 Districts. B. THAT the Director of Community Planning be instructed to report to Council development applications which are contrary to the proposed zoning amendments for possible withholding pursuant to Section 570 of the Vancouver Charter. C. THAT if the rezoning is approved, Council approve funding in the amount of $60,558 to establish a regular full-time Development Planner I in Planning, $45,338 to establish a regular full-time Plan Checking Technician II position in Planning, $53,461 to establish a regular full-time Development Information Officer position in Planning, 53,461 to establish a regular full-time Building Inspector I in Permits and Licenses, subject to classification review, and $15,000 to cover the costs of new personal computers for the new staff positions, plus software and Local Area Network hook-ups. D. THAT the fee by-law be amended to recover costs associated with the increase in service provided to RS zones by increasing the permit fees for conditional permits in RS-5 by $80 (from $900 to $980), for conditional permits in RS-3 and RS-3A by $380 (from $600 to $980), and $50 for all other conditional and outright permits in all RS zones for the purpose of building new houses and larger additions (equal to or greater than 60 m2 in gross floor area). (See Appendix F.) E. THAT the General Manager of Community Services in association with the Director of Finance will report back on the conclusions of a comprehensive fee review done in association with the development and building permit review process to address revenue deficiencies associated with the staff increases. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A, B, C, D, and E. COUNCIL POLICY On September 27, 1994, Council asked the Director of Planning and the General Manager of Engineering Services to report back to Council with recommendations for private property "green space" regulations which address aesthetic and infrastructure issues. On June 6, 1995, Council asked staff to report back on interim measures to deal with neighbourhood requests for character zoning until such time as staff are able to go back into those neighbourhoods to work with them on their neighbourhood centres. On May 17, 1996, Council instructed staff to proceed, in co-operation with neighbourhood groups, with a consultation process to determine neighbourhood support for an interim zoning in single-family areas in advance of CityPlan's neighbourhood visioning program, to proceed with RS-6 as an interim zone available to RS-1 and RS-1S single-family neighbourhoods and, where there is demonstrated community support, to include RS-5 as a possible interim zone for single-family neighbourhoods, and to amend the RS-5 zone to control the maximum area of impermeable materials on site should any neighbourhood be rezoned to RS-5 as part of this interim zoning program. Figure 1. Proposed RS-5 District - West Kerrisdale Central Figure 2. Proposed RS-5 District - Mackenzie Heights SUMMARY AND PURPOSE This report recommends referral to Public Hearing of RS-5 zoning in two areas: West Kerrisdale Central (illustrated on Figure 1 above); and Mackenzie Heights (illustrated on Figure 2 above). Multi-language random sample telephone surveys of area residents and property owners were conducted in both areas. The surveys indicated that both West Kerrisdale Central and Mackenzie Heights have greater than 60% support for a zoning change to deal with concerns about the design of new developments and landscaping in both areas (West Kerrisdale Central - 81%; Mackenzie Heights - 70%). Of those in favour of a zoning change, 80% in West Kerrisdale Central and 60% in Mackenzie Heights preferred RS-5 zoning. RS-5 zoning encourages new development and additions to be compatible with the neighbourhood by providing a floor space increase if the RS-5 Design Guidelines are followed. If followed, the design of new houses and major additions along with site landscaping would be derived from the design of adjacent properties to the development site. Staff recommend that Council refer RS-5 zoning to Public Hearing for both West Kerrisdale and Mackenzie Heights. Staff also seek Council approval to amend the RS-5 District Schedule to control the maximum area of impermeable material on site (as is currently included in RS-6), and to adopt RS-5 Design Guidelines for use in the two new RS-5 Districts. Staff are operating at capacity and, therefore, it is recommended that Council establish four new positions to respond to the anticipated increase in staff workload due to the rezoning of these two areas and future rezonings (to either RS-5 or RS-6). There will be an initial shortfall in cost recovery until revenue from permit fees in other areas rezoned in the coming months as part of the Interim Zoning program come on stream. In the meantime, the staff capacity will be used to serve existing RS zones. Staff, therefore, recommend that Council amend the fee by-law to recover costs associated with the increased level of service by increasing the permit fees in RS zones for new houses and larger additions (equal to or greater than 60 m2 in gross floor area). BACKGROUND On May 17, 1996, Council approved adoption of a proposed process to implement the interim zoning program requested by Council on June 6, 1995. The program would address issues of external design and site landscaping in RS-1/RS-1S neighbourhoods. RS-6 zoning would be made available as an interim zone, with the additional option of RS-5 zoning where there is demonstrated community interest in that zone. RS-6 zoning requires/prohibits certain design features, and encourages/discourages others in order to establish a minimum standard of design quality and foster a greater variety of design than under RS-1 zoning. "Impermeability" regulations prohibit excessive paving of the site, and a modest floor space increase is provided if landscape design guidelines are followed. The combined Development Permit and Building Permit process in this zone takes roughly four to five weeks. RS-5 zoning encourages new houses and additions to be compatible with existing houses and landscaping by providing a floor space increase for going through a design guideline review process. Buildings which meet design guidelines would derive their design from adjacent houses and site landscaping. The permit process in this zone takes two to three months for a development permit, one to three weeks for the building permit. The Council-approved planning process for the interim rezoning program involves three steps: 1. Phase I - This phase determines the general level of neighbourhood support for a change in zoning. Only after neighbourhood support is demonstrated would Planning commit significant time and resources to a rezoning process. This first step is therefore carried out in co-operation with resident groups who assist in notifying area residents/property owners of the planning program. A post-returned "expression of interest" survey is then conducted among all area residents. This survey is monitored or carried out by Planning staff. If the survey achieves a 25% response rate, and if 60% of the respondents to the survey support a change in zoning, then staff proceeds with Phase II. 2. Phase II - This phase determines the type of single-family zoning which the neighbourhood supports. Staff distribute more detailed information on RS-1, RS-6 (and RS-5) zoning to all area residents and property owners, holding public meetings or open houses, and completing the Phase II survey on the area's zoning options. An outside consultant is used to conduct the Phase II survey as a multi-language random sample telephone survey. Typically approximately 700 households are contacted in each neighbourhood, leading to the completion of approximately 400 interviews (taking into account people who are not home or who refuse to be interviewed), yielding statistical results with a plus or minus 5% margin of error. A 60% support rate for a new zoning would be adequate for staff to refer a rezoning report to Council. 3. Staff report back to Council on the Phase II survey results with a recommendation on the area zoning and, where appropriate, referral to Public Hearing. This report also responds to the September 27, 1994 Council directive that, in response to storm flooding that occurred the previous summer, the Planning and Engineering Departments report back with recommendations for private property "green space" regulations which address aesthetic and infrastructure issues. This previously resulted in the inclusion of controls in the RS-6 District Schedule which limit site paving and building coverage. Similar controls on impermeable materials site coverage are proposed as an amendment to the RS-5 District Schedule. DISCUSSION 1. Area Descriptions The West Kerrisdale Central area is made up of roughly 1,000 properties, ranging in size from 295 m2 to 4 415 m2 (3,172 sq. ft. to 47,520 sq. ft.). Property widths range from 7.9 m to 73.2 m (26 ft. to 240 ft.); property depths 25.2 m to 104.7 m (82.75 ft. to 343.4 ft.). The housing stock is a mix of pre-war Craftsman-style houses and Tudor- and Georgian-style houses, and post-war bungalows, post-1980s houses, and other styles. The Mackenzie Heights area is made up of roughly 850 properties, ranging in size from 355 m2 to 906 m2 (3,818 sq. ft. to 9,750 sq. ft.). Property widths range from 9.9 m to 28.7 m (32.5 ft. to 94 ft.); property depths 22 m to 45.7 m (72 ft. to 150 ft.). The housing stock is a mix of pre-war English-Cottage, Tudor- and Georgian- and Craftsman-style houses, post-war bungalows, post-1980s houses, and other styles. 2. Planning Process (a) Phase I Resident Surveys In consultation with the Planning Department, residents from both West Kerrisdale and Mackenzie Heights conducted their own independent resident surveys in early 1996. Block captains or contacts delivered and received completed surveys. Staff reviewed the survey forms and results, and felt the survey work was equivalent to the Phase I portion of the planning process discussed above (see Appendix C* for examples and complete results of surveys) and, therefore, moved the planning process directly into Phase II efforts. (i) West Kerrisdale Phase I Survey The boundaries for the West Kerrisdale survey area were chosen to reflect the locations of major streets and common neighbourhood characteristics. It was delivered to all houses within the survey area, excluding vacant houses and houses with renters who declined to participate (856 delivered); 518 were returned (60% of the total surveys delivered). Of the 518 respondents, 457 or 88.2% preferred some form of revised zoning in their neighbourhood to address concerns about the design of new homes and landscaping. * LIMITED DISTRIBUTION TO COUNCIL (ii) Mackenzie Heights Phase I Survey The boundaries for the Mackenzie Heights survey area were chosen to reflect the locations of major streets and common neighbourhood characteristics. The north-eastern border was drawn at the "top of the slope" overlooking Puget Drive so view areas would be minimally impacted by any potential zoning change. It was delivered to all houses within the study area (854); 255 were returned (30% of the total surveys delivered). Of the 255 respondents, 223 or 87.5% were in favour of a change in zoning to introduce more design control for housing in Mackenzie Heights. (b) Phase II Telephone Surveys Staff felt that there was sufficient support in both West Kerrisdale and Mackenzie Heights to go on to Phase II of the planning process. In June of 1996, staff distributed detailed information on RS-6 and RS-5 zoning to all residents and property owners (see Appendix D*). Contained in the information package were staff phone numbers in order that questions could be asked and responses given. Multi-lingual "call back" lines were set up for people with English as a second language. All distributed material was translated into Chinese. An open house (with translation services) was held in both areas to answer questions and display additional, more detailed information about the zoning. The random sample telephone surveys of area residents and property owners were conducted by an independent consultant in each of the two areas in the first two weeks of July. With approximately 400 completed phone surveys in each area, the accuracy of the resulting statistics is roughly plus or minus 3% for each neighbourhood at a 95% confidence level. The survey results are as follows (see summary - Appendix E; a full detailed report is available from the clerk): Question 1: Which zoning option do West Mackenzie you prefer? Kerrisdale Heights (a) Retain current RS-1 zoning 15% 25% (b) Adopt new zoning 81% 70% (c) No opinion 4% 6% * LIMITED DISTRIBUTION TO COUNCIL Question 2: Do you ... West Mackenzie Kerrisdale Heights (a) Prefer RS-6 13% 25% (b) Prefer RS-5 66% 42% (c) Undecided 2% 4% The surveys indicated that both West Kerrisdale Central and Mackenzie Heights have greater than 60% support for a zoning change to deal with concerns about the design of new developments and landscaping (West Kerrisdale Central - 81%; Mackenzie Heights - 70%). Of those in favour of a zoning change, 80% in West Kerrisdale Central and 60% in Mackenzie Heights preferred RS-5 zoning. Staff, therefore, recommend referral to Public Hearing of RS-5 zoning in West Kerrisdale Central and Mackenzie Heights. Staff were also aware that the northeastern boundary of the Mackenzie Heights study area is a view-sensitive area. Upon examination of the survey results, staff found that the majority of survey respondents along Quesnel Drive (part of the view-sensitive area) wished to retain RS-1 zoning. Staff, therefore, propose that the boundaries for the proposed RS-5 rezoning be adjusted to exclude Quesnel Drive which will retain the current RS-1 zoning (please refer to Figure 2). Should area residents we have not heard from to date object to this, Council could instruct staff to re-survey this small area along Quesnel Drive to determine resident support for a zoning change. Council should also note that the current South Shaughnessy RS-5 Design Guidelines should be renamed to the RS-5 Design Guidelines to reflect its use in other areas of the city. Consequential amendments to these design guidelines will also be made. A copy of the renamed and amended RS-5 Design Guidelines is available at the City Clerk s Office. 3. Amendments to RS-5 Zoning - Impermeability Regulations Before allowing any new areas to be rezoned to RS-5, staff recommend that Council amend the existing RS-5 zone to include the same impermeable materials site coverage controls as included in the RS-6 zoning District Schedule section 4.8.4 and 4.8.5 (see Appendix A). These sections control the maximum amount of impermeable materials (buildings, paving, etc.) on a site. These controls address Council's intent to limit increased stormwater runoff into the sewer system. Regulating private property impermeable areas not only reduces flooding potential and combined sewer overflows but also addresses concerns about the retention of landscape planting and lawns. Regarding the existing RS-5-zoned South Shaughnessy area, residents and property owners would be notified of the proposed amendment and their input could be heard as part of the Public Hearing for the West Kerrisdale Central and Mackenzie Heights areas. 4. Impact on Property Values The Manager of Real Estate Services advises that under current market condition, there should be no significant impact on property values in the short term if the RS-5 zoning is adopted. ENVIRONMENTAL IMPLICATIONS The RS-5 encourages site landscape planting which will positively affect the city's micro-climate and air quality. The RS-5 will also regulate the maximum site coverage by impermeable materials (if Council so chooses) which would also have positive effects on micro-climate, and reduce runoff thereby decreasing flooding potential and reducing combined sewer overflows. RS-5 provides some moderate incentive for renovating existing houses which could result in lessening the burden on landfill sites from house demolitions. SOCIAL IMPLICATIONS The Children's Policy and the Statement of Children's Entitlements are not applicable to this amendment. PERSONNEL IMPLICATIONS RS-5 zoning is unique and much more complex than RS-1 zoning. Processing of applications will generally involve extra staff time for checking applications, meetings (and negotiations) with applicants, meetings with staff (e.g., landscaping and engineering), telephone enquiries, file searches, correspondence, site visits, and providing information to residents and prospective applicants. Compared to RS-1 applications, RS-5 applications will affect staff in the following areas: Development Planners or Planning Facilitators (additional 12 to 16 hours per application); Plan Checking Technicians (additional 20 to 25 hours per application--bulk of research, correspondence, and neighbourhood applicant and staff liaison duties are handled by this position); Development Information Officers (additional 2 to 3 hours per application); Landscaping Technicians (additional 0.5 hour per application); and Building Inspectors (additional 2 hours per application). The West Kerrisdale Central and Mackenzie Heights study areas are composed of roughly 1,850 properties. The two study areas together have had 40 to 45 Joint Applications and Development Applications per year over the last four years. To administer the same number of applications under RS-5 zoning, assuming most applicants will seek the maximum FSR and submit a conditional application, an increase of approximately 17 to 21 person-weeks of total additional staff time per year may be involved. In July of 1993, Council adopted RS-5 zoning and design guidelines for a portion of South Shaughnessy. Two positions were added at that time: a Development Planner and a Plan Checking Technician. Staff reported to Council that the added workload from the rezoning justified the additional staff resources, although processing RS-5 applications would only use-up half of the staff time. Staff noted that with further rezonings in South Shaughnessy, the residual time would eventually be used up. Subsequent to the RS-5 rezoning, Council approved the use of RS-5 Design Guidelines for conditional applications in the RS-3 zone in East Kerrisdale (May 1994) and the RS-3A zone (October 1994) in South Shaughnessy. Given that approximately 75% of the applications in these zones were now being dealt with on a conditional rather than outright basis, the residual staff resources made available with the hiring of staff for the RS-5 rezoning are now effectively used up. In March of 1996, Council rezoned another portion of East Kerrisdale to RS-6. At the time staff reported to Council about a further increase in staff workload. As a result, Council added a full-time plan checking position to Permits and Licenses. However, staff suggested that no Planning positions be added at the time because the marginal increase in workload could be absorbed by existing staff. At that time, staff noted that if RS-6 is adopted elsewhere in the future or if the incremental workload proved to be more extensive that originally anticipated, Staff would report back on the need for additional staff. With the rezoning of West Kerrisdale Central and Mackenzie Heights to RS-5, Planning has again reached the stage where there is no residual staff resources to take on the additional workload and additional staff are required: a Development Planner I, a Plan Checking Technician II, and a Development Information Officer. The rezoning of West Kerrisdale Central and Mackenzie Heights alone will not justify the creation of three new staff positions; however, the residual staff resource is anticipated to be used up in the very near future as more RS-1/RS-1S area are rezoned to RS-5 or RS-6 as part of the ongoing Interim Zoning program. In the meantime, any additional staff time will be used to improve processing times in other RS zones. By adding additional staff now, the Planning Department can maintain its current levels of staff service now and into the immediate future. Further, RS-3 and RS-3A applications are not currently being processed on a full cost-recovery basis. This is addressed below. Council should note that these additional staff positions will be filled in January of 1997. Development applications in the two new RS-5-zoned areas will start to be processed after enactment of the new zoning later this year. The additional workload for Landscape Technicians due to the rezonings to RS-5, RS-3, RS-3A and RS-6 zoning--all with landscaping controls--will be addressed should Council add additional staff through changes made to the Private Property Tree By-law. If those positions are not added by Council, then staff will report back on the need for an additional Landscape Technician position in Planning. The Director of Permits and Licenses will need an additional building inspector to handle the increased responsibilities related to discretionary design guideline enforcement in the RS-5, RS-3, RS-3A and RS-6 zones. This will be the first additional inspector position created since RS-5, RS-3A and RS-3 were created during the South Shaughnessy/Granville Single-Family Zoning Review Program. FINANCIAL IMPLICATIONS The total cost of the four new staff positions is $230,200, which includes wages, benefits and computer equipment, software and Local Area Network hook-ups (see Appendix G). It is proposed that over time, these staff increases will be offset by permit fees as per the City s cost recovery policies. Only 40 permits are expected to be processed per year in the two new RS-5 areas, yielding approximately $36,000 from this source of revenue, leaving a shortfall of $194,000. However, future potential rezonings in 1997, involving areas such as Cedar Cottage, Douglas Park, West Point Grey, Clinton Park and Dunbar, if approved, could lead to the processing of perhaps as many as 190 conditional permits (based on 1995 permits), leaving a shortfall of $65,000. Staff recommend raising permit fees to respond to the shortfall in revenues and to reflect the increased level of service: RS-3/RS-3A applications are not being processed on a cost-recovery basis and increasing the fees for conditional applications in these zones by $380 (from $600 to $980), will bring these fees in line with those paid in the RS-5 zone (noting that conditional RS-3/RS-3A applicants require the same level of processing as those in RS-5); and In addition, by increasing the permit fee for new houses and large additions (equal to or greater than 60 m2 in gross floor area) by $80 for conditional permits in RS-5 and $50 for all other outright and conditional permits in RS zones (e.g., RS-1, RS-2, RS-6), revenues will match the increased cost of providing service to RS neighbourhoods. These fee increases are an interim measure to offset some of the shortfall. Given the comprehensive fee review staff will be undertaking in the near future, along with the development and building permit review, it is anticipated that further adjustments to staffing and fees will eliminate the total shortfall. Also, Council should note that space has been found for the additional personnel, although space needs may later surface as an issue in light of the re-engineering process currently underway. CONCLUSION This report recommends referral to Public Hearing of RS-5 zoning for the central portion of West Kerrisdale and Mackenzie Heights. Results of random sample telephone surveys conducted in each area indicate clear majority support for a zoning change in both areas, and, of that majority, a clear preference for RS-5 zoning. * * * * *