VANCOUVER

The City of Vancouver has released its Annual Procurement Report for 2023, highlighting the city's procurement activities, savings, and sustainable initiatives. The report covers the period from January 1, 2023, to December 31, 2023.

Supply Chain Management Departmental Activities and Statistics

• The City awarded $478,599,975 in contracts in 2023, resulting in $34,815,536 (~7%) in procurement savings.
• Council approved 18 contracts valued at $311 million, and the Bid Committee approved 49 contracts valued at $350 million.
• 87.3% of contracts were awarded through a competitive bid process, and 12.7% were sole sourced under the Procurement Policy provisions.
• The City generated $1,580,922 in revenue through the auctioning of surplus assets.

Sustainable and Ethical Procurement (SEP)

• The City's Sustainable Procurement program focuses on supporting Council priorities and strategies, including the Climate Emergency Action Plan and Healthy City Strategy.

The Vancouver Police Board has submitted a revised 2024 provisional budget, which includes a $393,000 increase for Board administration and operations. The City Council is considering two options to address this budget change.

Option A

• Approve the $393,000 increase, for a total 2024 Vancouver Police Board budget of $442,366,688 in expenditures and $30,266,454 in revenues.

Option B

• Approve the $393,000 increase and authorize the Board to reallocate funding within the approved 2024 operating budget to accommodate this increase.

Key Details

• The Police Act constrains the City's discretion over the policing budget, and the Board may require sufficient capacity to fulfill its governance responsibilities.
• The $393,000 increase was not included in the approved 7.5% property tax increase, and if Option B is adopted, the incremental funding could be managed as a one-time 2024 expense.
• If Council adopts Option B and the Board contests the decision, the matter could be referred to the Director of Police Services for a binding determination.

Timeline

• The Council will consider the options at the Standing Committee on City Finance and Services meeting on April 24, 2024.
• The Council approved the 2024 operating budget, including the Vancouver Police Department budget, on December 12, 2023.

The City of Vancouver has commissioned a review of its property tax policy, with the first phase completed by Ernst & Young LLP. The review aims to assess the city's property tax policy, effectiveness of mitigation tools, tax share approach, and other metrics to gauge Vancouver's business climate and competitiveness compared to neighboring municipalities.

Key Findings

• The review found no compelling evidence to warrant a tax shift between non-residential and residential property classes at this time.
• The review examined a portfolio of non-residential and residential metrics, as well as recent economic development, and the City's expert advisors agree with the conclusion.
• The review was conducted in two phases, with Phase I delivered in time to inform Council's deliberation on the 2024 tax distribution.

Next Steps

• April 24, 2024: The Council's Standing Committee on City Finance and Services will receive the report for information.
• The City Manager concurs with the recommendations in the report.

The City of Vancouver is reviewing the financial performance of the Mountain View Cemetery Master Plan and proposing a new phase of development. The report outlines the need for ongoing operating contributions to support the long-term care and maintenance of the cemetery.

Review of Phase 1 (2009-2023)

• Phase 1 generated $40.2 million in revenue, with $27.3 million from new space sales and $7.7 million in new Care Fund contributions.
• The anticipated sales volume and revenues were not fully realized.

Phase 2 Investment and Financial Plan

• Phase 2 will create over 6,200 new interment spaces over 15 years, with an estimated $12 million in capital costs.
• The financial plan projects $65 million in revenues, including over $11 million in Care Fund contributions.

Care and Maintenance

• The Care Fund principal has increased from under $3 million to over $10 million since the cemetery reopened in 2008.
• Ongoing operating contributions: Needed to support the long-term care and maintenance of the cemetery.

Vancouver has seen a surge in unlicensed and unregulated retail shops selling "magic" mushrooms and other entheogens, with no prosecution or business license regulations in place. Entheogens are psychoactive substances used for spiritual, therapeutic, and inspirational purposes, and have been used by indigenous peoples for centuries.

Entheogen Use in Vancouver

• Recreational use of natural psychedelics has doubled in the last three years, particularly among adults aged 19-30.
• Many entheogens are designated under Schedule 3 of Canada's Controlled Drugs and Substances Act, which prohibits possession except for authorized therapeutic use.
• Despite the legal restrictions, mushroom dispensaries have popped up across Canada and online, selling psilocybin and entheogenic products, with no charges or convictions in Vancouver.

City of Vancouver's Approach

• Regulatory Framework: The City has the authority to regulate land use and businesses, and previously introduced the Medical Marijuana Related Uses (MMRU) framework to ensure availability and appropriate business conduct.
• Harm Reduction: The City recognizes that a regulated market of safe supply mushrooms and entheogens can be considered a form of harm reduction, and is committed to public safety and harm reduction.
• Proposed Action: The City directs staff to examine the legal context and a retail framework to regulate business licenses for retailers of entheogens, based on the MMRU framework, to achieve a balance between availability and community health, safety, security, aesthetics, equity, and enjoyment of property.

The City of Vancouver is considering implementing a 30 km/h speed limit on residential streets to improve safety and promote active transportation. The council motion outlines the city's commitment to sustainable and equitable mobility, including goals to increase walking, biking, and low-power personal mobility device usage.

Key Highlights:

• In 2019, the council approved a resolution for a 30 km/h residential street pilot and a UBCM resolution requesting an amendment to the Motor Vehicle Act (MVA) to allow for speed reduction pilot projects.
• The MVA was amended in 2019 to allow for speed reduction pilot projects, and the Ministry of Transportation and Infrastructure clarified signage requirements.
• The city introduced Slow Streets and Neighbourhood Traffic Management Programs in response to COVID-19, and 72% of Vancouverites support a 30 km/h speed reduction on select residential streets.
• The city's 2023-2026 Strategic Priority and election commitments align with safer, slower streets, and the recent expansion of electric kick scooter use will increase active transportation road users.

Next Steps:

• Report on Benefits: Staff are directed to report on the benefits of 30 km/h speed limits in residential areas.
• Clarity on MVA Requirements: Staff are directed to provide clarity on MVA speed limit sign requirements and report on phasing options for city-wide or neighbourhood implementation, and funding options.
• Reduce Motor Vehicle Traffic: Staff are directed to bring forward a strategy to reduce motor vehicle traffic on designated Local Street Bikeways through physical, traffic, and placemaking interventions.

The City of Vancouver is proposing to expand its Alcohol Consumption in Public Plazas Program for 2024. The program, which has been running since 2020, allows for the consumption of alcohol in select public plazas and a community-managed alcohol program parklet.

Recommended Sites

• Social Service Parklet - 3-Year extension (May 15, 2024 to May 15, 2027):
  • PHS Drinker's Lounge Parklet – returning site
  • Location: 111 Princess St.
  • Partners: PHS Community Services Society, Vancouver Coastal Health – returning partners
• Public Plazas - Year round (May 15, 2024 to May 14, 2025):
  • Main & 21st Neighbourhood Plaza – returning site
  • Location: West block of E 21st Ave. at Main St.

Previous Council Decisions

• 2023: Council approved amendments to allow liquor consumption in one public plaza seasonally and six public plazas year-round.
• 2022: Council approved the Alcohol Consumption in Public Plazas Policy and extended the Drinker's Lounge pilot program.
• 2021: Council approved a pilot for liquor consumption at the Drinker's Lounge parklet and in three public plazas.
• 2020: Council directed staff to prepare a by-law to allow a pilot for liquor consumption in select public places.

The City of Vancouver has released an updated Climate Change Adaptation Strategy for 2024-25, building on previous plans from 2012 and 2018. The strategy outlines actions to reduce climate change risks and enhance resilience, with a focus on equity and addressing the impacts of extreme weather events.

Key Updates

• Updated climate projections and policy context
• Increased focus on equity and climate-related hazards
• New indicator and financial framework
• Alignment with related City plans and strategies

Recommendations

• Council to approve the 2024-25 Climate Change Adaptation Strategy in principle
• Staff to report back in 2025 with a five-year update, alongside an update to the Climate Emergency Action Plan

Context

• 2012: Council approved the first Climate Change Adaptation Strategy
• 2018: Council approved a five-year update to the Strategy
• 2023: Council approved the City's first Climate Budget
• Climate change is increasing the frequency and intensity of extreme events in Vancouver, with disproportionate impacts on under-served and equity-denied communities
• Climate projections for the 2050s under a high emissions scenario show increasing temperatures, longer summer dry spells, changing precipitation patterns, and approximately one metre of sea level rise by 2100

Associated Benefits

• Adaptation actions can support the green buildings sector, improve health and wellbeing, and promote biodiversity
• Investing in adaptation now can lead to significant avoided future costs and losses

The City of Vancouver is considering extending a pilot program that provides property tax relief for eligible Light Industry (Class 5) and Business and Other (Class 6) properties. Additionally, the city plans to continue using targeted 5-year land assessment averaging for Residential (Class 1), Light Industry (Class 5), and Business and Other (Class 6) properties in 2024.

Development Potential Relief

• Pilot program: The city is seeking to extend the pilot development potential relief program (Pilot DPRP) in 2024 for eligible Class 5 and Class 6 properties, as authorized by the Vancouver Charter.
• The program would tax a portion of the assessed land value (up to $5.4 million) at a 50% lower general purpose tax rate than the blended rate for Classes 5 and 6.
• The Director of Legal Services and Director of Finance are instructed to bring forward a by-law to enact the program.

Targeted Land Assessment Averaging

• The city plans to continue the targeted 5-year land assessment averaging program in 2024 for Class 1, Class 5, and Class 6 properties.
• The program will use a 10% threshold above the property class average change to define eligibility for targeted averaging.
• Averaging will not result in a year-over-year change below the 10% threshold or a reduction in values exceeding $5.4 million for eligible Class 5 and 6 properties.
• Properties impacted by a Director of Planning-initiated zoning or policy change will be considered for targeted averaging, while properties that received relief under the Pilot DPRP will not be eligible.
• The Director of Legal Services and Director of Finance are instructed to bring forward a by-law to authorize the use of targeted averaging.

If approved, the overall impact would be a ~0.2% increase to the Class 1 tax rate and a ~1.8% increase to the blended Class 5/6 tax rate (to be finalized based on the 2024 Revised Assessment Roll) in order to collect the same amount of general purpose tax levies from those classes.

The City of Vancouver is exploring ways to expand and renew its co-op housing stock, including leveraging underutilized city-owned land to create more affordable and attainable homes.

Key Highlights:

• The City formed the Vancouver Housing Development Office to utilize city land for middle-income housing.
• The City owns and manages land in Champlain Heights and False Creek South, which presents opportunities for new co-op development.
• The Housing Vancouver Strategy aimed to deliver more co-op housing but faced challenges, and the City is now looking to partner with the Co-operative Housing Federation of BC (CHF BC) to explore new co-op housing models.
• The City is directed to report on opportunities to build new co-op housing on existing city-owned co-op sites and to update the False Creek South Development Plan to increase housing targets and options for existing residents.

Next Steps:

• Report on Opportunities: The City will report on opportunities to build new co-op housing on existing city-owned co-op sites and explore partnerships with CHF BC.
• False Creek South Development Plan: The City will update the False Creek South Development Plan, including retaining city ownership, increasing housing targets, and options for existing residents.