CITY OF VANCOUVER REGULAR COUNCIL MEETING MINUTES CITY SERVICES AND BUDGETS JANUARY 30, 1997 A Regular Meeting of the Council of the City of Vancouver was held on Thursday, January 30, 1997 at 12:40 p.m., in Committee Room No. 1 , Third Floor, City Hall, following the Standing Committee on City Services and Budgets meeting, to consider the recommendations of the Committee. PRESENT: Mayor Philip Owen Councillor Don Bellamy Councillor Nancy A. Chiavario Councillor Jennifer Clarke Councillor Alan Herbert Councillor Lynne Kennedy Councillor Don Lee Councillor Gordon Price Councillor George Puil Councillor Sam Sullivan ABSENT: Councillor Daniel Lee CITY MANAGER'S OFFICE: Ken Dobell, City Manager CLERK TO THE COUNCIL: Tarja Tuominen COMMITTEE OF THE WHOLE MOVED by Cllr. Puil, SECONDED by Cllr.Bellamy, THAT this Council resolve itself into Committee of the Whole, Mayor Owen in the chair. - CARRIED UNANIMOUSLY COMMITTEE REPORTS Report of Standing Committee on City Services and Budgets January 30, 1997 Council considered the recommendations of the Committee, as contained in the following clauses of the attached report: Cl.1: 1997 Consolidated Assessment Roll Cl.2: Property Tax Status - Chalmers Foundation Cl.3: 1997 Comprehensive Trade Permits Fee Review Cl.4: Review of Zoning, Development, Subdivision, and Miscellaneous Fees Clauses 1 and 2 MOVED by Cllr. Puil, THAT the recommendations of the Committee, as contained in Clauses 1 and 2 of this report, be approved. - CARRIED UNANIMOUSLY 1997 Comprehensive Trade Permits Fee Review (Clause 3) MOVED by Cllr. Puil, THAT the recommendations of the Committee, as contained in Clause 3 of this report, be approved. - CARRIED UNANIMOUSLY MOVED by Cllr. Kennedy, THAT the Comprehensive Trade Permits Fees be implemented April 1, 1997. - LOST (Councillors Bellamy, Clarke, Daniel Lee, Don Lee, Price, Puil and the Mayor opposed) Review of Zoning, Development, Subdivision, and Miscellaneous Fees (Clause 4) MOVED by Cllr. Puil, THAT the recommendations of the Committee as contained in Clause 4 of the report, be approved. - CARRIED (Councillor Kennedy opposed to D) RISE FROM COMMITTEE OF THE WHOLE MOVED by Cllr.Puil , THAT the Committee of the Whole rise and report. - CARRIED UNANIMOUSLY ADOPT REPORT OF COMMITTEE OF THE WHOLE MOVED by Cllr. Puil , SECONDED BY Cllr.Bellamy , THAT the report of the Committee of the Whole be adopted. - CARRIED UNANIMOUSLY ENQUIRIES AND OTHER MATTERS 1. Construction at University of British Columbia Councillor Chiavario requested information on the status of Federal Government construction at the University of British Columbia and on the issues of the stability of the cliffs and removal of trees. The Council adjourned at 12:45p.m. * * * * * REPORT TO COUNCIL STANDING COMMITTEE OF COUNCIL ON CITY SERVICES AND BUDGETS JANUARY 30, 1997 A Regular Meeting of the Standing Committee of Council on City Services and Budgets was held on Thursday, January 30, 1997, at 9:30 a.m., in Committee Room No. 1, Third Floor, City Hall. PRESENT: Mayor Philip Owen Councillor Don Bellamy Councillor Nancy A. Chiavario Councillor Jennifer Clarke Councillor Alan Herbert Councillor Lynne Kennedy Councillor Daniel Lee Councillor Don Lee Councillor Gordon Price Councillor George Puil Councillor Sam Sullivan CITY MANAGER'S OFFICE: Ken Dobell, City Manager CLERK TO THE COMMITTEE: Tarja Tuominen ADOPTION OF MINUTES The Minutes of the Standing Committee on City Services and Budgets meeting of January 9, 1997 , were adopted. RECOMMENDATION 1. 1997 Consolidated Assessment Roll File: 1552-1 The Committee had before it the City of Vancouver 1997 Assessment Roll Report dated January, 1997 (on file), prepared by the B.C. Assessment Authority to provide property and value information for taxation purposes. Harry Jones, Area Assessor, and Deborah Francis, Senior Supervisory Appraiser, B.C. Assessment Authority, presented a review of assessment trends reflected in the 1997 Consolidated Assessment Roll and responded to questions. Ms. Francis reported of the 1997 total roll values, 70% are residential class, and 23.6% are business properties. Of the legislative changes over 1996, very little affected the City of Vancouver, with the exception of Bill 55, which brings changes to the valuation of Railway Property. There has been no significant shift in market value between classes of properties. Some of the highest increases in the commercial class of property has been in Yaletown and along Robson Street. Hotels are up in the 10 to 20% range. Mr. Jones provided a brief report on current appeals before the Assessment Appeal Board, including Celtic Shipyards and Concord Pacific. Currently, there are 450 outstanding appeals. Recommendations to speed up the process are now underway. The following motion by Councillor Clarke was put and carried. The Committee, therefore, RECOMMENDED THAT the presentation on the 1997 Consolidated Assessment Roll be received. - CARRIED UNANIMOUSLY 2. Property Tax Status - Chalmers Foundation File: 1552-1 Penny Bruin, City Treasurer and Collector, advised a representative for Chalmers Lodge is intending to speak to the agenda item but had received incorrect information on the time of the meeting. The Chair agreed to defer consideration of the item pending the arrival of the delegation. 3. 1997 Comprehensive Trade Permits Fee Review File: 1755-1 The Committee had before it an Administrative Report dated January 14, 1997 (on file) in which the Directors of Permits & Licenses and Finance recommended approval of a general 1.0% inflationary increase to the Building, Electrical, Plumbing and Gas Fitting By-laws. In addition, the Directors recommended adjustments to recover the full cost of City support functions, other specific increases, and new fees related to the By-laws. In the report, the General Managers of Corporate and Community Services noted the report reflects a change to recover City support costs other than those of front-line staff. In the past, the cost of support functions, such as accommodation, central computer systems, and staff and equipment costs in the other departments which provide support facilities for the front-line staff in Permits and Licenses, were funded by property taxes. The message expressed by community leaders, through the recent Mayor's Forum process, is that the City should ensure user fees are set at appropriate levels before considering property tax increases. The General Managers recommend approval of the increase and adjustments to the By-laws. Ted Droettboom, General Manager of Community Services, provided a brief introduction to the report, and made several points regarding this report, as well as the Administrative Report considered in Agenda Item 4: Normally, Departments like to do more notice and consultation with the industry before proposing fee increases; however, with the City facing a major budget shortfall, the proposals are submitted without the usual notice and consultation; Several other reports will be coming forward recommending fee increases: Zoning, Development, Subdivision and Miscellaneous Fees (Agenda Item 4), and fees related to the Sign By-law and the Board of Variance; The proposed fee increases are significant on top of already significant fees; The increases include overhead costs and the cost of providing support services to the Community Services group; City of Vancouver fees are still amongst the least expensive in the Lower Mainland. In response to questions, Charles King, Financial Analyst, advised the proposed fee rates will be comparable with those of Calgary and lower than those of Toronto. Peter Simpson, representing the Greater Vancouver Homebuilders' Association, did not support the proposed increases. It is becoming too expensive to build in the City of Vancouver. The proposed fees are an unnecessary addition to the costs of building in the City and will ultimately affect the price to the buyer. The accumulation of taxes and charges will affect the cost of housing. The Association would like to work with the City to make the development process more efficient. Ken Dobell, City Manager, commented the City has undercharged for fees in the past. Permits are City controls applied on behalf of the whole community and are not for the benefit of the builder. The following motion by the Mayor was put and carried. The Committee, therefore, RECOMMENDED A. THAT Council approve a general 1.0% inflationary increase, and, in addition, adjustments to recover the full cost of City support functions, other specific increases, and new fees related to the Building By-law (B/L 6134), the Electrical By-law (B/L 5563), the Plumbing By-law (B/L 5964) and the Gas Fitting By-law (B/L 3507), as detailed in Appendices A through D of the Administrative Report, dated January 14, 1997. B. THAT the Director of Legal Services be instructed to prepare the necessary By-law amendments. C. THAT upon approval of the Administrative Report dated January 14, 1997, the Director of Permits & Licenses notify the construction industry and the general public of the new fees. - CARRIED UNANIMOUSLY The following motion by Councillor Kennedy was put and LOST. THAT the Comprehensive Trade Permits fee increases be implemented April 1, 1997. (Councillors Bellamy, Clarke, Daniel Lee, Don Lee, Price, Puil and the Mayor opposed) 4. Review of Zoning, Development, Subdivision, and File: 1755-1 Miscellaneous Fees The Committee had before it an Administrative Report dated January 21, 1997 (on file) in which the Directors of Land Use and Development and Finance reviewed current fees and associated costs of processing development applications, subdivision applications, and zoning and miscellaneous amendments, and recommended revised fees for 100% cost recovery. The General Managers of Community and Corporate Services recommended approval of the revised fees, and submitted for consideration the elimination of the 50% subsidy for mega-project rezonings. Rick Scobie, Director of Land Use and Development, provided a brief overview of the report and answered questions. Rezonings, development applications and subdivision applications are generally discretionary. Other City departments generally involved in the application process include Engineering, Law and Fire. The following delegations spoke in opposition to the proposed fee increases: Peter Simpson, Greater Vancouver Homebuilders' Association Bob Ranfford, Molnar Capital Organization Kevin Murphy, Senior Vice-President, Development, Concord Pacific Jeff Herold, Urban Development Institute Brad Holme, Urban Development Institute The delegations' points are summarized as follows: Following the proposed fee increases, mega-projects may be defined as 5 to 10 units; Any costs will be passed on to the buyer, and the development industry is already feeling buyer resistance in the market; As the cost of building escalates, there won't be homes for people to buy; City government should be looking at reducing staff and doing more with less; The City should involve more industry in discussing how to do "Better City Government"; Impacts of the proposed fee increases will be reduced housing stock due to affordability and availability, and will result in a lower tax base; Any increases will affect mortgage costs and eligibility for the buyer; The City's current process is complex, inefficient and time consuming; The proposed fees are a high increase to absorb; Regarding subsidies for mega-project rezonings, the developer provides city-wide amenities, such as parks, community centres, streets, and daycare facilities, as part of the rezoning project; Fee reviews to look at costs and efficiencies should be done on an annual basis. In response to a query, Charles King, Financial Analyst, advised the biggest issue with housing affordability is the cost of the land and mortgage rates. Ken Dobell, City Manager, advised the City's fees are a small component of the total project costs. Bonnie Maples, representing the Architectural Institute of B.C., supported the cost recovery of municipal services. However, the City should be looking at the complexity of its process and regulations, the consistency of processing applications, and the impact of time to process applications. People would pay more for services if it was provided in half of the time. The following motion by Councillor Clarke was put and carried. The Committee, therefore, RECOMMENDED A. THAT the fees set out in Zoning and Development Fee By-law No. 5585, in Subdivision By-law No. 5208 and in the Miscellaneous Fees (Planning) By-law No. 5664, be amended, to fully recover costs as generally described in Appendix A of the Administrative Report dated January 21, 1997. B. THAT the Director of Legal Services be instructed to prepare the necessary amendments to the Zoning and Development, Subdivision, and Miscellaneous Fee By-laws. C. THAT upon approval of the Administrative Report dated January 21, 1997, the Director of Land Use and Development notify the development and construction industry of the new fees. D. THAT the 50% subsidy for mega-project rezonings be eliminated by increasing fees by a further 100% in Sections 3(b), 4(b), 5 and 6 of Schedule 2 of the Zoning and Development Fee By-law No. 5585. E. THAT staff provide a report within 30 days establishing time lines for achieving "Better City Government" Development and Building Review improvements and efficiencies, and identifying the cost savings achieved. (Councillor Kennedy opposed to D) The following motion by Councillor Kennedy was put and carried. The Committee, therefore, RECOMMENDED F. THAT staff conduct a comprehensive fee review on an annual basis to ensure individual permit fees reflect the City s changing costs. - CARRIED UNANIMOUSLY 2. Property Tax Status - Chalmers Foundation (continued) The Committee had before it an Administrative Report dated January 16, 1997 (on file) in which the City Treasurer & Collector outlined the history of the legislation governing property tax exemption for Chalmers Lodge, a community care facility. The City Treasurer & Collector recommended that staff continue to bill the Chalmers Foundation for all property taxes levied on the facility. The City Treasurer & Collector also submitted for consideration the options of approving a grant of $20,671.77 to the Chalmers Foundation equal to the outstanding 1996 School and other taxes levied on the facility, and placing Chalmers Lodge on the list of properties to be submitted to Council on an annual basis for consideration of a permissive property tax exemption pursuant to Section 396(1)(g) of the Vancouver Charter in 1997 and subsequent years. The General Manager of Corporate Services recommended approval of the recommendation to bill Chalmers Foundation for all property taxes, noting that all community care facilities located in the city are now taxable under current Council policy. Community care facilities draw on City services much like any other property in the City. In addition, the responsibility for funding the operating subsidies to community care facilities rests squarely on the shoulder of the Provincial Government and not the City. Having Council approve a permissive tax exemption is tantamount to accepting this down load as a City responsibility. Penny Bruin, City Treasurer & Collector, reviewed the report and responded to questions. Robert Estergaard, Administrator, Chalmers Lodge, advised the Personal Care facility receives no subsidy from the provincial government. It is a non-profit society. A further increase in fees for the facility s residents to cover property taxes would be a difficult burden for them to bear. Mr. Estergaard requested the facility be reclassified to an exempt status and receive a grant for its outstanding School and Other taxes for 1996. The Committee sympathized with the speaker s concerns, but noted all other community care facilities are fully taxable, and they could not exempt only one facility. In addition, the funding of operating subsidies to community care facilities is a provincial government responsibility. The following motion by Councillor Kennedy was put and carried. The Committee, therefore, RECOMMENDED THAT Council advise staff to continue to bill the Chalmers Foundation for all property taxes levied on the community care facility located at 1450 West 12th Avenue in accordance with current policy. The meeting adjourned at 12:40 p.m. * * * * *