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.
* * * * *