What is the legal obligation of a municipal council to refer an application to a public hearing?

With respect to fairness, there is no legal obligation on the part of a municipal council to refer an application to a public hearing. As determined by Mr. Justice Burnyeat in Smith v. Surrey (City), [1998] B.C.J. No. 250 at para. 20: … nothing in the Municipal Act requires the respondent to proceed to first and second reading, to proceed to a Public Hearing once first and second reading has been given, to set a date for a Public Hearing once first and second reading has been given, to proceed with a Public Hearing even after the date for it has been set, to conclude a Public Hearing once it has commenced, to re-set a specific date if a Public Hearing is not concluded on the date originally set for it, or to set another date for a Public Hearing if no specific date is set when a Public Hearing which has commenced is adjourned. The "Code of Procedure" set out in the Municipal Act only requires a Public Hearing prior to third reading of a zoning bylaw. Nothing which was done by the respondent failed to comply with the "Code of Procedure" set out under the Municipal Act relating to the passing of bylaws.