Recommended Policy Council Presentation

Wes Regan, CED Planner Arts, Culture and Community Services

September 18, 2018

Community Benefit

Agreements

Introduction from Sandra Singh GM Arts, Culture and Community Services

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An agreement signed by a developer committing them to actions, targets and outcomes relating to employment and procurement in a community where the development is occurring or nearby communities in which equity seeking groups are located.

Definition

Healthy City Strategy Action Plan (2104) • Reduce poverty; increase median incomes DTES Local Area Plan • Encourage inclusive local employment DTES Community Economic Development Strategy (2016) • Scale up and build capacity in social enterprise sector • Leverage presence of anchor institutions and major industries for

social procurement • Explore potential of demand led “Planned Manufacturing” and

“Supply Chain Re-localization”

Council Direction

1. Leverages purchasing power of development and

specialized non-profit knowledge - reduce poverty through improved labour-market participation and create multiplier effects in communities

2. Supports economic diversification and capacity building – supports and address labour and procurement challenges

3. Recognizes excellence in Corporate Social Responsibility – changes business practice and increase economic investment in local communities (lasting legacy)

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What will this policy help us achieve?

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Needs and Opportunities

Lower Mainland Construction Jobs Forecast (2017-2027):

2017 construction jobs: 131,500 Job openings 2017-2027: 35,940

110,400 indirect and induced jobs*

Est. 3000 jobs in Social Enterprise Sector in

Vancouver 80% for people with

barriers

Hastings Racecourse

(2005)

Millennium/ Olympic

Village (2007)

Aquilini Pacific Coast Arena (2014)

Concord 5BE (2014)

Concord 5BW (2014)

PARQ – Two Agreements

(2015)

St. Paul’s Hospital (2018)

Background: CBAs in Vancouver

2017

Engagement Timeline & Activities

Q1 Exchange Inner-City CBA Working

Group Formed

Q2 Developers Trial Workshop on Draft Policy

Q1 update Meeting with UDI

CBA Day of Learning

at VPL

Q2 Presentation to UDI and ULI Members

Presentation to UDI and PUDS

Q3 Internal Engagement with COV

Departments

3rd UDI Roundtable

September 18th Present to Council

Q3 Roundtable with UDI and large Developers

Q4 Policy Workshop with Exchange CBA

Working Group and UDI

2018

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What We Heard – Challenges and Opportunities

Challenge CBA Policy Opportunities

1. High demand for and difficulties sourcing material and labour

Aligns employment training and jobs with First Source Hiring and social procurement

2. Previous CBAs scope too narrow (e.g. construction-focused)

Applies gender and inclusivity lens – diverse jobs for diversity of people across project lifecycle

3. CBAs could impose additional costs to development

Pool resources to decrease individual developer costs, such as workforce development, procurement expertise, evaluation and issues management

4. Previous CBAs lacked community input and involvement

Implementation framework bridges community, industry and city knowledge through Working Group

5. Need clear prioritization of City policies and regulations that consider accumulative costs

Implementation focuses on flexibility, learning and adaptation to support success, City policy alignment

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CBA Policy Recommendations

CBA Voluntary Opt-In (without condition)

45,0000 m2 (484,375 sq. ft.) Aligning with Sustainable Large Developments Rezoning policy

Developer with site below 45,000 m2 but

above 9,290 m2 (100,000 sq.ft.)

Social and Local procurement

‘First Source Hiring Program’

total labour

10%

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Recommendation for Consideration: Implementation Framework

• Share learnings, make adjustments if necessary • Share development findings and use/testing of LEED

Style CBA Social Value Menu and improved metrics • Recognize CSR Excellence to note successes,

efforts, and innovation • Report back to City Council every 2 yrs

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Implementation

Recommendation: Implementation Partnership to learn, adapt, improve, and recognize success

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Proposed Implementation Framework

CBA Working Group

Who: Developers, COV, Tech Experts (Eg. Post Secondary, Non-Profits)

What: Create “LEED” Menu, advise on policy changes, directs the 3rd Party Monitor

Why: High level group guides implementation, course corrects policy implementation where needed

Neutral 3rd Party

Monitor

Who: Arms-length policy implementation coordinator

What: Implement policy, stakeholder engagement, monitor and report

Why: One body holds knowledge over the implementation process- can effectively guide all efforts across multiple CBAs

Parq CBA Overview – John Cahill

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PG 15

Construction - employment + procurement

• Parq Vancouver ensure each trade and sub-trade were aware of importance of employing and procuring from areas with barriers

• Parq developed strong working relationships with social enterprises, and are excited

about the opportunity to let that relationship grow. (Lower Mainland Steel – Working with Bladerunners for multiple years, Embers and Corrections Canada)

Total Labour in catchment or with barriers: 20.89% or ~150 FTE’s per day

Procurement from local vendors + qualified businesses: $62,708,343.30 or 29.66%

PG 16

Operations – employment + Procurement

• We strive to be a leader in inclusive employment by welcoming, respecting, understanding and valuing diversity in the workplace, which is essential to our overall success as an organization.

• Our commitment to Diversity and Inclusion has been recognized by Canadian HR, Untapped, and BC Workplace awards.

• Developed strong partnerships with social agencies such as Open Door Group, BC Win, Embers, Buy Social, Mosaic and BladeRunners

• From October 2017 – August 2018 Total employment in catchment and/or with barriers: 22.6% or ~430 FTE’s Procurement from local vendors + qualified businesses: $7.26M or 28.99%

Thank you

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Additional Slide: CBA Policy Estimated Impact from First Source Hiring

3-4 Projects at roughly 500,000 sq/ft