POLICY REPORT URBAN STRUCTURE Date: May 16, 1995 Dept. File No. AMcA TO: Vancouver City Council FROM: Associate Director of Planning - City Plans SUBJECT: Provincial Growth Strategies Act RECOMMENDATIONS A. THAT the Mayor, on behalf of Council, communicate the City's support for Bill 11, the Growth Strategies Act, to the Minister of Municipal Affairs. B. THAT the City communicate concern about the following issues and request the Minister, through administration of the Act, seek to ensure: - adequate time for municipalities to review and respond to significant regional plan initiatives; and - that the provincial government and its agencies act in accordance with an agreed regional growth strategy when making investment decisions or taking actions which affect regional livability. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Council is on record, April 12, 1994, as supporting the establishment of legislation to give the GVRD the mandate to adopt a regional strategic plan, provided there is: - sufficient notification time for the City to provide a response to a proposed regional plan; - a dispute resolution process to resolve cross-jurisdictional issues; and - regional support for maintaining services in municipalities taking more than an expected share of growth. SUMMARY The provincial government has given third and final reading to a Growth Strategies Act. The new legislation will be incorporated into the Municipal Act, with consequential amendments to the Vancouver Charter. The Act gives regional districts the authority to adopt growth strategies, including 20-year population and employment targets. Municipalities are required to "sign off" on the growth strategy. A dispute resolution process is provided for if agreement is not otherwise forthcoming. The new legislation provides a means to obtain agreement to the Livable Region Strategic Plan. Whether this is an issue of concern to the City will depend upon: - congruence between regional and city policy directions; and - "fairness" of the dispute resolution process. On the first point, CityPlan and the Livable Region Strategic Plan generally proceed in similar directions. Differences arise over the Region's focus on targets for ground-oriented housing. Provided this can be resolved, the new Act should not be an issue of concern to the City. The other question to be considered is how the dispute resolution process will proceed and what priority City concerns will have relative to GVRD proposals. Since City Councillors also sit on the GVRD Board, one would hope that City concerns will be considered when regional plans are adopted. If so, it would seldom be necessary to proceed to formal dispute resolution. The overall success of the Livable Region Strategic Plan will partly depend on investment decisions, such as roads and transit, made by senior governments. This report notes that the process proposed in Bill 11, to reach agreement between regional and municipal interests, is only part of the task. For plans to be successful, all governments and their agencies need to work in concert. PURPOSE This report advises Council of new provincial legislation to create a Growth Strategies Act and consequential amendments to the Vancouver Charter. BACKGROUND During the past five years the GVRD has been developing the Livable Region Strategic Plan. A question raised through this process was how the plan would be implemented. Various ways to reach agreement between the GVRD and member municipalities were discussed. Concurrently, the provincial government has been undertaking a consultation process to develop a Growth Strategies Act. On May 10, 1995, the provincial government gave third and final reading to legislation to support growth management. This report describes Bill 11 and its implications for Vancouver. PROVINCIAL GROWTH STRATEGIES ACT The purpose of the Act is to "promote human settlement that is socially, economically, and environmentally healthy and that makes efficient use of public facilities and services, land and other resources." The Growth Strategies Act amends the Municipal Act, adding Part 28.1, "Regional Growth Strategies" with consequential amendments to the Vancouver Charter. Examples of topics to be included in a regional growth strategy are noted in Appendix A. They include the sorts of issues the GVRD has been addressing through the Livable Region program. Bill 11, Growth Strategies Act, provides: - regional districts with the authority to adopt regional growth strategies; - the Provincial Cabinet with the authority to require growth strategies where needed and local co-operation is not forthcoming; - goals for municipal and regional district planning leading to 20-year population and employment projections, and associated servicing agreements; - provisions for "sign-off" on regional growth strategies by member municipalities, including time lines and dispute resolution processes to reach agreement; and - opportunities for partnership agreements with the key provincial ministries and agencies (noting that the actions of local and regional governments cannot bind a senior government). A summary of the Growth Strategies Act is attached as Appendix B. Several sections of the Act affect the City. a) Regional Plan Preparation and Agreement The Growth Strategies Act provides a legislative basis for the Livable Region Strategic Plan. Before a regional plan can be adopted, it must be accepted by affected local governments. Failing voluntary acceptance, the Act provides dispute resolution processes to find agreement. If agreement cannot be reached between the GVRD and a member municipality, issues are to be settled by: - peer panel; - final arbitration by a single arbitrator; or - full arbitration. The Act provides 120 days between the receipt of a proposed regional growth strategy and a response by the City. Some provisions are then made for a facilitated resolution process. The City has, on previous occasions, noted that 120 days may not be adequate time to respond to a plan which requires significant changes to adopted land use policies or funding decisions. The Act makes provisions for an extended time (no dates given) at the discretion of an appointed facilitator. A mutually agreeable extension may resolve the 120-day deadline. The Act provides that, once a regional growth strategy is adopted, all actions by the Regional District must be consistent with the Act. b) Changes to the City Charter Bill 11 amends the Municipal Act and the Vancouver Charter to require municipalities and the City to comply with the Growth Strategies Act and to include a "regional context statement" in official community plans. The Charter amendments are attached as Appendix C. In summary they: 1. Amend section 2.1(1) of the Vancouver Charter to include the Regional Growth Strategies Act (Part 28.1). This requires that the City either adopt the regional growth strategy or, failing acceptance, be bound by the strategy as the result of a dispute resolution process. 2. Amend section 561-Development Plans and Section 562-Official Development Plans. These changes allow, but do not require, that Development and Official Development Plans include a regional context statement. DISCUSSION The Regional Growth Strategies Act provides a legislative basis for the Livable Region Strategy. It offers a process whereby the GVRD and member municipalities can agree on a Regional Strategic Plan. a) Implications to the City The Act requires the City to reach agreement with the GVRD on such issues as 20-year population and employment projections. Assuming Council adopts CityPlan and the GVRD proposes targets similar to those identified in the August 1993, draft Livable Region Strategy, then the City and Region are moving on a similar path and agreements should be achievable following some negotiations. Problems could arise if the Regional Plan has significant financial or land use implications to the City. For example, if the Plan "insisted" on the City taking a large share of ground- oriented housing, the consequences of this would be significant redevelopment of single-family areas. This direction was rejected through the CityPlan process. Council should note that the dispute resolution process potentially removes from Council's jurisdiction some policy decisions. As noted in the above example, the dispute resolution process could rule that the City adopt a target to provide more housing or jobs than the City chooses. In supporting the Provincial Growth Strategies Act, Council would have to take on faith that a facilitated conflict resolution process would be fair-minded and give due consideration to the City's concerns. The Act requires that the City and Region come to agreement on a Strategic Plan. The procedure for the City incorporating a "regional context statement" into our plans is less clear. Vancouver's situation is different from other municipalities in that we operate under the Charter. Bill 11 is designed as an amendment to the Municipal Act, with consequential amendments to the Vancouver Charter.The Municipal Act provides the opportunity for local governments to adopt "Official Community Plans." An OCP is a general statement of the broad objectives and policies of a municipality. The new legislation states that OCPs must include a regional context statement. By comparison, the Vancouver Charter does not include provision for an "official community plan." Instead, Bill 11 provisions are to be included in sections of the Charter that deal with "Development Plans" and "Official Development Plans." However, as noted in Appendix C, the Charter amendments do not require the City to include a regional context statement in our plans. The City's past use of the "Official Development Plan" provision has been for plans applicable to relatively small portions of the city, such as those prepared for "mega projects." These sites are not of a scale implied in municipal "Official Community Plans." As such, attaching "Regional Context Statements" to Official Development Plans is likely to be of limited utility. Council is advised that, as a matter of general procedure, staff will not be incorporating "Regional Context Statements" in Development and Official Development Plans. The more appropriate place to include a "Regional Context Statement" is in CityPlan. CityPlan already includes a section on the region. At such time as the GVRD and the City agree on a regional plan and conclude partnership agreements on regional strategic policies, these agreements can be incorporated into CityPlan. The Act stipulates that a City "Regional Context Statement" be prepared within two years of agreement of a Regional Strategic Plan. The statement will be subject to acceptance by the GVRD Board. The City's statement, once agreed, would need to be reviewed every five years. This work could be undertaken as part of implementing CityPlan. Sections of the new Act, such as a dispute resolution process, will need to be developed in more detail before the full consequences to the City can be determined. Nevertheless, given that CityPlan supports many of the notions implied in the GVRD Livable Region Plan, staff can see no reason to suggest Council not support Bill 11. The cautions are about: the short time (120 days) for the City to respond to a regional plan. Hopefully the provincial facilitator process will provide adequate response times; and any erosion of Council's authority to direct the City's policies. b) Implications to the GVRD The Livable Regional Strategic Plan proposed "a consensus/ partnership process" to achieve the "Creating Our Future" vision. The Act provides the legislative basis for the GVRD to seek adoption of the Livable Region Strategic Plan and agreement on implementation. c) Implications to Senior Governments Senior governments and their agencies can play a significant role in implementing regional strategies. They can also undermine the strategy through inappropriate investments. Transit is one of many responsibilities vested with senior governments. Junior governments cannot bind senior governments. Hence, implementation in accordance with a regional plan rests on the good will of the provincial and federal governments and their agencies. The only reference in the Act to senior government initiatives is in Section 942.3 where provision is made that the provincial government may enter into agreements with respect to the regional growth strategy. The City should request the Minister to make every effort, through legislation and subsequent actions, to ensure the provincial government and its agencies act in accordance with an agreed regional growth strategy. CONCLUSION On the positive side, Bill 11 provides a means for the GVRD and its member municipalities to find agreement on a strategic plan to guide the Region's livability. Problems will arise if the directions the City and Region wish to pursue are fundamentally different. The same will hold true for other member municipalities. At this time, the Livable Region Strategic Plan and CityPlan share many common directions. Any differences with respect to employment and housing targets will need to be addressed through the process outlined in the Act. * * *