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.

                 *     *     *     *     *