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. 

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                               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. 

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