FINANCE AND ADMINISTRATIVE COMMITTEE
	TO:	Mayor and Members of Council
	FROM:	Catherine Biss, CEO, Markham Public Libraries
	PREPARED BY:	Deborah Walker, Manager, Library Strategy
	DATE OF MEETING:	2004-June-14
	SUBJECT:	Markham Village Library Expansion

RECOMMENDATIONS:

THAT the report “Markham Village Library Expansion” be received;

AND that Council approve the Schematic Design of Option 4 for the Markham Village Library expansion of 15,750 square feet and authorize the Architect, Shoalts and Zaback, to proceed with the Detailed Design;

AND that Council approve the approximate size of this project as follows:

New Construction 15,750 sq. ft.

Renovated Area 19,560 sq. ft.

Total 35,310 sq. ft.

AND THAT Council approve a Schematic Design cost estimate for the New Construction, Replacement and Renovation as summarized below:

	New Construction	Replacement	Renovation	Total
Construction	$3,095,850	$1,294,309	$2,101,925	$6,492,084
Furniture, Fixtures and Equipment, IT	$741,405			$741,405
Collections	$1,144,600			$1,144,600
Internal *	$475,952	$293,088	$98,075	$867,115
TOTAL	$5,457,807	$1,587,397	$2,200,000	$9,245,204

*Internal costs include: Architectural fees, signage, security, insurance, & move-in expenditures

AND THAT Council approve the following funding sources for the 10,500 square foot of New Construction ($3,571,802) ($3,095,850 plus $475,952):

Previously approved capital proj. (5155) $1,807,800

Development Charges Reserve Fund $ 590,801

General Capital Reserve $ 65,644

Non-Development Charge Sources $1,107,557

Total New Construction $3,571,802

AND THAT Council approve the 5,250 square foot Replacement project cost estimate of $1,587,397 to be funded from the offset of the operating lease for a period of approximately 6 years;

AND THAT Council approve the Renovation project cost estimate of $2,200,000 to be funded in two phases. One half of the cost ($1,100,000) was included in the 2004 budget, and the remaining $1,100,000 is to be included in the 2005 (tax-funded) capital budget;

AND THAT the Mayor and Clerk be authorized to amend the architectural services contract based on the proposed increased scope of the building program in a form satisfactory to the Chief Administrative Officer and to execute the architect’s agreement;

AND that staff provide a detailed cost estimate for Council approval upon completion of the Detailed Design;

AND that Council approves the extension of the Library Administration Centre lease to October 2006;

AND FURTHER that Council approves the schedule detailed below with an opening date for the project of October 2006:

Activity	Target Completion Date	Council Approvals
Schematic Design	July – August 2004	September 2004
Design Development	September – October 2004
Construction Documents	November 2004 – March 2005
Tendering	April – May 2005	June 2005
Construction: Phase 1 New	July 2005 – March 2006
Construction: Phase 2 Renovation	April 2006 – September 2006
Opening	October 2006

PURPOSE:

The purpose of this report is to obtain Council approval for the Schematic Design of Option 4 of the Markham Village Library Expansion and authority to proceed with the Detailed Design of this project.

BACKGROUND:

Option 1 – Expansion to South

Option 1 proposed a 10,500 square foot expansion to the Markham Village Library. The expansion site was to the South and required a full basement which would not be used by the Library. A business case was made to move the Markham Library Administration to this empty basement. Through synergies with the Markham Village Library, this made 5,250 square feet sufficient for the Administration, as opposed to 8,500 square feet in a stand-alone location. Option One met the space needs of the Library and also permitted significant use of DC charges.

However, through the community consultation process, it became apparent that Option One did not meet the community’s expectations and needs for the Library’s site.

Renovation of Existing Library

It further became clear that a renovation of the existing Library space was necessary. Council approved $2.2 million for the renovation: $1.1 million each in the Town’s 2004 and 2005 (proposed) Capital Budget program.

Option 2 – Expansion to West

As part of the preliminary site assessment process, the Architect developed a design option that involved an expansion to the west of the existing Library. However, the public did not support Option 2.

Option 3 – Expansion to North

During an extensive public process involving two public meetings, two workshops and numerous interviews with community groups, there was overwhelming support for the Library extension to the North, and for expanding the project into becoming a “Community Gateway” project which would enhance the identity of the site as a key Markham public resource. Allied to this general consensus was the desire to maximize the interrelationship between the Library and the Arena.

However, Option 3 significantly exceeds the budget and program for the project. Therefore, at the direction of the Executive Steering Committee, a recommendation was made to a Committee of the Whole of Council, on March 9, 2004, that Option 1 should be adopted, since it met the Library’s space and functionality needs and was a more cost-effective approach. Council deferred its decision and asked that the Technical Advisory Committee explore funding and other alternatives to support Option 3.

Library Board Supports Expansion to the North

On March 15, 2004, the Library Board passed a motion which supports the concept of the Markham Village Library expanding to the north.

Option 4 – Expansion to North

At a Finance and Administrative Committee meeting on March 22, 2004, staff were requested to further review Option 3 as the preferred option. Also, 10 specific points were to be reviewed and reported back to the Committee of the Whole (see attached Appendix “A”).

Option 4 is a modified Option 3 and provides maximum opportunity for the future of the Arena area and remainder of the site. The Town has completed a study which indicates that the Arena has approximately 10 to 15 years of useful life before significant investment is required. It will, therefore, be necessary to review options for the Arena area and remaining site area, regarding both current and future uses. Public input will be included in this future process for site redevelopment.

Option 4 highlights:

· Has Library extensions similar to that in Option 3 (10,500 sq.ft. public space and 5,250 sq. ft. to replace the existing basement program rooms, for a total 15,750 sq. ft.);

· Provides for a possible link to the Arena capable of being built in the future;

· Provides, as part of the Library expansion project, a shade garden between the Library expansion and the Arena, which customers could access from the Library and in which they could sit and read;

· Recognizes that many future opportunities can be accommodated for the Arena/ Arena site area.

Note that Option 3 and Option 4 both propose to not place the expansion against the Arena’s west wall for the following reasons:

· It restricts future uses of the Arena building;

· It compounds difficulties in producing a functional library;

· It blocks 3 Arena fire exits.

Public Meeting, Wednesday, June 9, 2004

Staff presented the options outlined in this report to the Public at a meeting on June 9, 2004. Approximately 20 members of the public attended this meeting. Option 4 was generally well received by the public. If Option 4 is approved, the architect, project manager and the Library will continue to consult the community on the various issues raised at the meeting, including access for the disabled, pedestrian access, vehicular access, drop-off points, the study of the Village Green and Park, and the detailed design of the public meeting rooms. The future of the Arena and its site was also discussed.

Option 4—Site Plan

The initial site plan for Option 4, based on the current alignment of Main Street/Highway 48, is shown in the drawing below:

In the event of a realignment of Main Street/Highway 48 as envisaged in the Main Street Markham Streetscape and Traffic Management Study, the Site Plan would be adapted as indicated below:

Business Case for Moving Library Administration to the Markham Village Library

Library Administration Centre Lease Expiring

The Library has leased 10,851 square feet of office space for the Administration Centre (AC) at 445 Apple Creek Blvd, since 1990. Located at this facility are the Administration, Acquisitions, Cataloguing and Computer Services Department functions and staff.

The first ten-year lease expired on November 30, 2000, and the Library exercised the option to renew for an additional three years. That 3-year lease expired on November 30, 2003. At that time, the term was extended for a further term of 15 months, commencing on December 1, 2003 and expiring on February 28, 2005, with an option to extend the term for three more months, effectively to the end of May 2005. To exercise this option, notice must be provided to the landlord by the end of August 2004.

Council Approved Relocation of Library Administration Centre to the Expanded Markham Village Library

On January 26, 2003, Library staff submitted a Report to the Finance & Administrative Committee entitled “Cost-Benefit Analysis of Relocating the Library Administration Centre within Markham Community Library Expansion”. The staff analysis and recommendation that the AC be incorporated into the expansion of the Markham Village Library was predicated on the concept of expanding the existing Library to the south, as proposed by the 2001 Feasibility Study on the Markham Community Library Branch Expansion and Conversion of the Existing Heating and Cooling System to Central HVAC System. Due to site grades, such an expansion would require an unfinished basement shell space/foundation (DC-fundable) to support the two upper levels of the Library expansion. Staff envisaged that this unfinished basement space could be finished to accommodate the Library’s AC functions and staff. Council received the Report and recommended “that this project be incorporated into the expansion of Markham Community Library”.

Expansion to North—Impact on Plan for Library Administration Centre

In response to community input, the design premise of the January 6, 2003 report (expansion to the south) changed. Library expansion to the north is now the preferred option.

Expansion to the north can proceed as a slab-on-grade construction. The relatively flat site grades to the north of the existing Library mean that a basement is not required to support the 10,500 sq. ft. expansion. The opportunity to finish an otherwise unfinished basement space for the AC is lost.

To date, no other space has become available in the Town for the AC relocation.

Accordingly, the cost/benefit analysis of locating the AC at the Markham Village Library location was revisited. Under Option 4 (relocation of AC to basement of existing building), the payback will be approximately 7 years – i.e. it will take 7 years for the one-time expenses associated with relocating the AC to the Markham Village Library to be offset by the annual cost savings resulting from the AC not being in a leased facility. Under Option 1 (relocation of AC to basement of expansion) , the payback was estimated to be approximately 1.96 years. A detailed breakdown of these costs is included in Appendix “B”.

The estimated one-time expenses associated with relocating the AC to the Markham Village Library are $1,587,397.00. A detailed breakdown of these costs is included in Appendix “C”.

Schedule for Move from Leased Facility—Need to Extend AC Lease

Under Option 1, it was envisaged that the AC would move into the basement of the expansion as soon as new construction was completed. Renovation of the existing building would then have proceeded with minimal impact on AC operations. Under Option 4, however, staff recommend that renovation of the existing building’s basement for AC proceed at the same time as renovation of the upper two levels, (i.e. after completion of the expansion), to benefit from the cost savings associated with a single tender for renovations. As a result, the AC will not move from its current leased location until October 2006, when renovations are completed. Staff therefore recommend that the AC lease be extended to October 2006.

FINANCIAL CONSIDERATIONS:

The project cost estimates for Option 4 of the Markham Village Library Expansion and Renovation are included as Appendix “D”.

The project cost estimate for each of the components is listed below:

	Cost Estimate	Sq. Ft.	Cost/ Sq. Ft
New Construction	$3,571,802	10,500	$340.17
Replacement	$1,587,397	5,250	$302.36
Renovation	$2,200,000	19,560	$112.47
FF&E / IT	$741,405
Collections	$1,144,600
Total Cost Estimate	$9,245,204	35,310

Details of each component are outlined below.

New Construction

This cost estimate includes the total project cost for the new construction to the library of 10,500 square feet including construction, site work, internal costs and contingency.

The preliminary cost per square foot allowed in the Development Charge Background Study (DC Study) is $234.69. As outlined in the chart below, the cost per square foot in the cost estimate for new construction is $340.17. This represents an increase of $105.48 per sf ($340.17 - $234.69) over the DC Study cost per square foot. Over the 10,500 sf area of the new construction, higher cost per sf results in costs totalling $1,107,557 ($105.48/sf x 10,500 sf) in excess of the DC Study.

				DC Background Study
	Cost Estimate	Sq. Ft.	Cost/ Sq. Ft	DC Study Cost/sq ft	Cost Est. in Excess of DC Study
		(A)	(B)	(C)	(B-C) x A
New Construction	$3,571,802	10,500	$340.17	$234.69	$1,107,557
Replacement	$1,587,397	5,250	$302.36
Renovation	$2,200,000	19,560	$112.47
FF&E / IT	$741,405
Collections	$1,144,600
Total Cost Estimate	$9,245,204	35,310

Thus, of the $3,571,802 cost for the new construction, $1,107,557 exceeds the preliminary DC Study average. It is not recommended that the $1,107,557 be funded from development charges as this may bring the development charge reserve into a deficit position and may not be fully recovered in the next DC by-law period. The balance, $2,464,245 can be funded 90% ($2,217,821) from development charges, 10% ($246,424) from the General Capital Reserve.

A capital project totalling $1,807,800 (90% DC: 10% General Capital Reserve) was previously approved for the Markham Village Library Expansion project. As outlined in the table below, an additional $1,764,002 is required to fund the new construction component of the Markham Village Library Expansion. The $1,764,002 will be funded from DC’s ($590,801), General Capital Reserve ($65,644) and the balance ($1,107,557) from a non-development charge source.

			Cost Estimate			90% DC	10% General Capital	Excess (Non-DC Funds)
(A)	Cost Estimate
		New Construction	3,571,802			2,217,821	246,424	1,107,557
(B)	Less: Prev. Approved Capital
		Project 5155	1,807,800		Total Funding $3,571,802	1,627,020	180,780
(A)-(B)		Funding Required	$1,764,002			$590,801	$65,644	$1,107,557

Replacement

The cost to construct the 5,250 of replacement space is $1,587,397 inclusive of construction, site works, internal costs and contingency. As part of the 2003 budget, Council approved two capital projects ($488,900), which would enable the Library Administration to move into the basement of the Markham Village Library. One project was for the costs associated with relocating the Administration Centre ($60,000), and the other for the renovation of the Library basement ($428,900). Both of these projects were to be funded from the elimination of the operating lease over a period of approximately 2 years. The change in the design of the expansion from the south to the north has resulted in an increased cost associated with the relocation of the Library Administration Centre. The original option to the south only required funding for the finishing of the basement. The current option to the north requires the construction of an additional 5,250 sf to replace the programming space being lost in the basement of the existing facility. This change in scope has increased the cost of the relocation by $1,158,497 ($1,587,397 – 428,900), which will require approximately 7 years ($1,587,397 / $237,401) to payback through the elimination of the operating lease.

Renovation

In the 2004 capital budget, Council approved the renovation of the existing Markham Village Library at a cost of $2,200,000 with 50% being funded in the 2004 budget and the balance to be included in the 2005 capital budget.

FF&E / IT

The furniture, equipment and IT cost of $741,405 is consistent with the preliminary 2004 development charge background study. This cost represents the requirements for the 10,500 sq. ft. of new construction only. Staff are currently reviewing various options pertaining to the equipment and IT component of the renovation, and will report back to Council at a later date.

Collections

The collections cost of $1,144,600 is consistent with the preliminary 2004 development charge background study. This cost represents the requirements for the 10,500 sf of new construction only.

Architect fees increase due to increase in scope of project.

The amount of the architectural fees awarded to Shoalts and Zaback was $266,430. These fees were for an expansion of 10,500 sf and for the renovation of the 5,250 sq in the basement as defined in the RFP. It was indicated in the RFP that this project would be completed in November 2004.

The project recommended in this report consists of an expansion of up to 15,750 sf and renovation of 19,560 sf and the projected completion date of October, 2006.

The fee proposal submitted by Shoalts and Zaback provided for a fee calculated on the basis 9% of the increased construction estimate cost, and 12% of the increased renovation cost estimate. This amount would cover the architectural fees including structural, electrical, and mechanical sub-consultants for additional work not included in the RFP. This amount did not include for the speciality sub-consultants required for the project.

As the scope of the project has not been finalized at the time the report was prepared,

it is recommended that Finance and Asset Management staff be given the authority to negotiate the additional fees with the architect based on the final scope of the project and the provisions in the RFP discussed above.

Once these negotiations have been completed, it is recommended that the Mayor and Clerk be given authority to approve the increased fees and to execute the architect’s agreement.

HERITAGE AND URBAN DESIGN:

Heritage and Urban Design staff have reviewed Option 4, and offer the following observations:

• The provision of building mass towards the streetscape (Highway 7) and an attractive elevation treatment will help to better visually connect the Library to both Main Street and Highway 7;
• The proposed addition would screen the view of the less attractive west wall of the existing Arena;
• Pedestrian access to the facility would be enhanced as this layout provides a focus on the Village Green area (northwest corner of the site) and promotes a north entrance as a main pedestrian entrance from the historic village;
• The community gathering place (Village Green) and cenotaph are not impacted;
• This option allows for a potential future atrium space connecting the existing Arena building or a replacement structure at this location in the future;
• The open space parkette between the two building would offer a shade garden for leisure activities associated with both the Library and recreation centre;
• The proposed two storey addition would have minimal impact on the design of the existing Library facility and would retain the clock feature;
• The schematic plans appear to indicate that the overall scale of the building can be reduced by breaking up the façade and building mass into elements that proportionately reflect smaller building forms (avoiding a large hanger-like appearance);
• Factors such as elevation design/style and roof shape, building materials, window shapes should be undertaken in consultation with the recommendations of Heritage Markham, Heritage staff and the policies of the Markham Village Heritage Conservation District Plan;
• The proposed site layout appears to accommodate traffic and parking needs and improve circulation without adverse affect on neighbours or placing parking in front of the building adjacent to the streetscape.

SCHEDULE:

Activity	Target Completion Date	Council Approvals
Schematic Design	July – August 2004	September 2004
Design Development	September – October 2004
Construction Documents	November 2004 – March 2005
Tendering	April – May 2005	June 2005
Construction: Phase 1 New	July 2005 – March 2006
Construction: Phase 2 Renovation	April 2006 – September 2006
Opening	October 2006

ENVIRONMENTAL CONSIDERATIONS:

None.

ACCESSIBILITY CONSIDERATIONS:

The project will ensure accessibility requirements of OBC and TOM requirements.

The design will be presented to the Accessibility Committee for its review and comments.

ENGAGE 21ST CONSIDERATIONS:

A successful Library expansion will provide a strong community focus and gathering place for the Markham Village community, which contributes to Markham’s vision as a place of vibrant and healthy communities.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Finance, Recreation, and Culture Services Departments have reviewed and concur with the report and recommendations.

ATTACHMENTS:

Appendix “A” Response to issues raised at the Finance and Administrative Committee, March 22, 2004

Appendix “B” Annual Expenses of Current Lease

Appendix “C” Estimated one-time expenses associated with relocating the Administration Centre to the Markham Village Library.

Appendix “D” Town of Markham: Markham Village Library Expansion and Renovation: Project Cost Estimate

Catherine Biss Chief Executive Officer Markham Public Libraries	Stan Bertoia, P. Eng. General Manager, Construction and Utilities

Peter Loukes, P. Eng. Director, Operations and Asset Management

Jim Sales Commissioner of Community and Fire Services

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