Report to: General Committee                                      Report Date:  May 5, 2008                  

                                                                                                                                                 

 

 

SUBJECT:                          BIA Streetscape Services

PREPARED BY:               Mark Ingwersen, District Manager, Operations

                                            Andrea Tang, Manager, Financial Planning

 

 

RECOMMENDATION:

 

THAT the report dated May 5, 2008 entitled “Streetscape Services” be received;

 

AND THAT the 2007 Markham Village and Unionville BIAs financial statements reflect payments of the streetscape services as approved in the 2007 budget in accordance with the tax levy by-law;

 

AND THAT the Treasurer be directed to work with the BIAs to develop a repayment schedule extended beyond the current year;

 

AND THAT in the event that the Markham Village and Unionville BIAs request the current service level, Staff recommend that Option 4 b) be adopted with BIAs subsidizing the cost of materials over and above the current streetscape average service level provided for in the Yonge Street and Victoria Square areas;

 

AND THAT under Option 4b), the 2008 streetscape fee for the Markham Village BIA be $16,775.00 and the Unionville BIA be $11,880.00 which reflects 100% recovery for the costs of additional materials; 

 

AND THAT under Option 4b), the Operations/Parks Department 2009 revenue budget be reduced by $3,785.00 to reflect this whole year adjustment;

 

AND THAT in the event that the Markham Village and Unionville BIAs request a reduced service level, Staff recommend that Option 3b) be adopted as the basic service level standard with BIAs subsidizing 100% of all costs incurred by the Town for current and future requests for increases in service levels over and above the current streetscape average service level provided for in the Yonge Street and Victoria Square areas;

 

AND THAT under Option 3b), the Operations/Parks Department 2009 revenue budget be reduced by $32,440 to reflect this whole year adjustment and potential reductions of $58,655 in operating costs;

 

AND THAT the recoveries from the BIAs be subject to annual CPI inflationary increases and adjusted as required during annual Budget review;

 

AND THAT any financial contributions from the Town to the Markham Village and Unionville BIAs be considered as part of the 2009 budget;

 

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

PURPOSE:

To prepare an information report to General Committee detailing the history, rational and funding options for the existing charges for streetscape baskets/barrels/planters to the Unionville Main Street BIA and Markham Main Street BIA.

 

BACKGROUND:

A Markham Streetscape program was initiated in 1978 with Markham Main Street and has expanded to include a variety of other areas over time. In recent years, staff has received an increasing number of requests for horticultural streetscape enhancements, resulting in a total number of 2,652 baskets/barrels/planters (Appendix A) in 2007. The following is a brief overview of how the program has expanded:

 

·        1978 - The Streetscape program was initiated on Markham Main Street because of lack of space for shrub/annual beds. The cost of the materials was subsidized by the BIA and continues to be today

·        1984  - The Unionville Main Street Streetscape was initiated and the cost of materials was subsidized by the BIA and continues to be today

·        1984 - The Thornhill Main Street Streetscape Program was implemented on Yonge Street. Until 2002, the cost of the materials and maintenance on the west side of Yonge Street was subsidized by the City of Vaughan. Currently, the City of Vaughan is responsible for the supply, installation, and maintenance of the streetscape on the west side of Yonge Street, while the Town of Markham continues to supply, install and maintain the east side.

·        1994 - The Milliken Streetscape Program was implemented on Kennedy Road to beautify the Milliken Mills area.  For several years the streetscape was subsidized approximately $1500 yearly from an annual compost sale organized by the local Ward Councillor.  The Town has not hosted this compost sale event since 2002.

·        1999  - Community Centres were included in the program at the request of the Recreation Department

·        2000  - 2002  The Milliken Streetscape Program was expanded including Denison Street and Kennedy Road

·        2003  - Town Streetscape Program was expanded with units being added in Milliken Mills and implemented in Victoria Square

·        2004  - A total of 2,180 basket/barrel units in the program

·        2005 - 472 baskets/barrels added to Milliken area – Ward 7 on Denison and on Middlefield Road at a cost of  $128,000

·         2005 – report to Council resulted in direction to Development Services Staff to initiate a Milliken Main Street Study and that no additional baskets or barrels be considered until the study was completed and presented to Council

·        2008 – inventory is unchanged from 2005 at 2,652 barrels/baskets/planters

 

Through the 1980’s the Town responded to requests and provided additional barrels and baskets for Unionville BIA with no additional charges for materials which is reflected in the inequity of current charges to each BIA for this program.

 

 

OPTIONS/ DISCUSSION:

Baskets and barrels are one of the most expensive way to improve the aesthetics of any area.  They were originally implemented on the 3 Main Streets (Unionville, Markham and Thornhill) because there was no room to do anything in the way of traditional flower beds.  Because of the popularity of the program, a number of Councillors asked for it to be expanded into their wards, and these requests were approved by Council.  As most of the current baskets and barrels outside of the 3 traditional main streets are on residential and backlotted streets, there is really no way to extract funding from any one group to cover the costs. 

 

The BIAs have traditionally paid for the cost of the materials, although the fees charged to the BIAs have not increased since the inception on a per unit basis.  The Markham BIA pays $22,000 and the Unionville BIA pays $10,440 toward the cost of materials.   The cost to the Town to supply, plant and maintain these two Main Streets’ streetscapes is approximately $91,800.00 (Appendix B-2 for detailed calculation).  This includes labour for planting, costs to grow them, placing them out and removing them from the Main St., weeding, deadheading and daily watering during the growing season.

 

 

Location

Streetscape Area (lineal metres)

Total number of units

Average Spacing of units (lineal metres)

 

Main St – Markham

(both sides)

930

463

8.2

Main St – Unionville (both sides)

871

328

8.6

Denison / Kennedy / Middlefield                         (one side)

8260

1256

58

Yonge Street                (one side)

630

176

17.4

Victoria Square

(both sides)

1592

216

33

 

 

 

 

 

 

Average Spacing based on:

(lineal metres)

Main Streets – Markham & Unionville

8.5

Denison/Kennedy/Middlefield, Yonge Street & Victoria Square (Non Main Street)

36

Yonge Street & Victoria Square

25

 

The Main Streets’ baskets and barrels are placed in greater densities and directly benefit the businesses, and that is why they originally requested them and agreed to pay a portion of the costs.  The average spacing between baskets/barrels on the two BIA Main Streets is 8.5 metres apart.  In the streetscaped areas other than the Main Streets the average spacing is 36 metres apart.

 

In addition, the Main Streets get an additional barrel at each pole (3 instead of 2), as well as pole boxes/bridge boxes.  They also get a large number of standards (tall grafted plants in the centre of the barrels such as solanum or fuchsias) in the barrels.  The Main Streets also receive a higher standard of maintenance than the streetscapes outside the traditional Main Streets which includes increased litter and garbage cleanup and the baskets and barrels are weeded and deadheaded more often.  

 

The current cost for materials is $37.00 for a hanging basket and $72.00 for a barrel for an average cost of $55.00 per unit (Appendix B-1).  On a per unit basis, there is an inequity in the amount that Unionville Main Street and Markham Main Street pays.  Main Street Markham BIA pays approximately 85% (actual total costs $25,465 vs. recovery from BIA $22,000, Town subsidizing $3,465) of the current cost of materials (Appendix B-3 for detailed calculation).  However, in the case of Main Street Unionville, the BIA is paying only approximately 58% (actual total costs of $18,040 vs. recovery from BIA $10,440, Town subsidizing $7,600) of the cost of materials (Appendix B-4 for detailed calculation).

 

Staff considered the following options when preparing this report.  All options assume the BIAs will reimburse the Town for the costs of materials only.

   

 

 

 

 

 

 

 

 

 

 

 

Option 1: Status Quo

The Main Streets will continue to partially subsidize the Streetscape Program at traditional levels, however this will continue to foster the existing financial inequity between these 2 Main Streets.  The Town would continue to pay a portion of the unsubsidized material costs and 100% for the cost to grow and maintain.

 

Service Level:                           Maintain

Change in number of units:        No change

Financial Impact to BIA:           Markham BIA $22,000 (no change)

                                                Unionville BIA $10,440 (no change)

Financial Impact to Town:         No budget impact; however, the Town will continue to subsidize $ 11,065 for the cost of materials ($3,465+$7,600) (Appendix B-5)   

 

Option 2:  BIAs to pay the full cost of all materials based on current inventory and market price

The costs of materials to the BIAs have not increased since inception.  Based on the current market price, the revised costs to the BIAs would be $25,465 for Markham and $18,040 for Unionville.  The Town would continue to pay 100% for the cost to grow and maintain.

 

Service Level:                           Maintain

Change in number of units:        No change

Financial Impact to BIA:           Markham – cost increase of $3,465

                                                (from $22,000 to $25,465)

Unionville – cost increase of $7,600

(from $10,440 to $18,040)

Financial Impact to Town:         Increase in revenue by $11,065

 

Option 3 a):  Provide Service Level based on average of Non Main Street spacing The Operations Department would provide two baskets and two barrels per pole, spaced 36 metres apart based on the Town wide average for all other streetscaped areas, at no cost to the BIA. 

 

Service Level:                           Decrease

Change in number of units:        Markham - Reduce by 347 units (from 463 to 116)

                                                Unionville – Reduce by 246 units (from 328 to 82)

Financial Impact to BIA:           Markham – cost reduction of $22,000

                                                Unionville – cost reduction of $10,440

Financial Impact to Town:         Reduction in revenue by $32,440 ($22,000+$10,440)

Potential reduction in operating costs by $67,615

(cost of materials – 593 units x $55/unit = $32,615)

(greenhouse lease $35,000)

 

 

 

Option 3 b):  Provide Service Level based on average of Yonge Street/Victoria Square spacing

The Operations Department would provide two baskets and two barrels per pole, spaced 25 metres apart, as in the average spacing in the Victoria Square/Yonge Street streetscaped areas, at no cost to the BIA.

 

Service Level:                           Decrease

Change in number of units:        Markham – Reduce by 305 units (from 463 to 158)

                                                Unionville – Reduce by 216 units (from 328 to 112)

Financial Impact to BIA:           Markham – cost reduction of $22,000

                                                Unionville – cost reduction of $10,440

Financial Impact to Town:         Reduction in revenue by $32,440 ($22,000+$10,440)

Potential reduction in operating costs by $58,655

(cost of materials – 521 units x $55/unit = $28,655)

(greenhouse lease $30,000)

 

*Potential reductions in operating costs identified in Options 3a & 3b assume that program has not commenced.

 

*Currently five (5) crews water approximately 530 units daily.  If a threshold reduction target of 450 units is achieved, further reductions in Operating costs possible through elimination of one watering crew.

 

Option 4 a):  Provide current Service Level and invoice based on Non Main Street average spacing

The service level noted in Option 3 a) will be provided by the Town with no cost to the two BIA’s.  Should the BIAs require the current service level, the BIAs will pay the full cost of materials for the additional units.  The additional units represent an increase of approximately 4 times the density of Town wide average outside these Main Streets.  Based on current pricing, this would result in total costs of approximately $19,085 to the Markham BIA and approximately $13,530 to the Unionville BIA for 2008.  These recoveries will be subject to annual CPI inflationary increases and adjusted as required in subsequent years.  The Town would continue to pay 100% for the cost to grow and maintain.

 

Service Level:                           Maintain

Change in number of units:        No change (at the discretion of the BIA in determining the number of units, currently assumes the same number of units)

Financial Impact to BIA:           Markham – cost reduction of $2,915

                                                Unionville – increase of $3,090

Financial Impact to Town:         Increase in revenues by $175

                                                No change in operating costs

 

 

 

 

 

Option 4 b):  Provide current service level and invoice based on average of Yonge Street/Victoria Square spacing

The service level noted in Option 3 b) will be provided by the Town with no cost to the two BIAs.  Should the BIAs require the current service level, the BIAs will pay the full cost of materials for the additional units.  The additional units represent an increase of approximately 3 times the density of Town wide average outside these Main Streets.  Based on current pricing, this would result in total costs of approximately $16,755 to the Markham BIA and approximately $11,880 to the Unionville BIA, for 2008.  These recoveries will be subject to annual CPI inflationary increases and adjusted as required in subsequent years.  The Town would continue to pay 100% for the cost to grow and maintain.

 

Service Level:                           Maintain

Change in number of units:        No change (at the discretion of the BIA in determining the number of units, currently assumes the same number of units)

Financial Impact to BIA:           Markham – cost reduction of $5,225

                                                Unionville – increase of $1,440

Financial Impact to Town:         Decrease in revenues by $3,785

                                                No change in operating costs

 

Summary

The Operations Department recommends that option 4 b) be adopted by Council for both the Markham and Unionville BIA’s.  This option will provide each BIA with the average level of service established in both Yonge Street and Victoria Square free of charge.  The full cost recovery for the additional units will remedy the current inequity between what the two BIA’s are currently charged for the streetscape program and allow them to continue to enjoy the greater intensification of units than currently provided in other areas of the Town.

 

In the event that the Markham Village and Unionville BIAs request a reduced service level, the Operations Department recommends that Option 3b) be adopted as the basic service level standard with BIAs subsidizing 100% of all costs incurred by the Town for current and future requests for increases in service levels over and above the current streetscape average service level provided for in the Yonge Street and Victoria Square areas.

 

Regardless of the option considered, staff recommends that the basket and barrel inventory be capped at the current number of units and that no additional baskets/barrels be considered on the Main Streets. 

 

 

 

 

 

Other In-Kind Services provided by the Town

In addition to the maintaining and growing of the baskets and barrels, the Town of Markham also provides the following enhanced services for the Main Street Markham and Unionville BIAs:

·        Street Sweeping – both Main Streets are swept once per week from May to October, compared to average of 4 times per year for all other Town roads.

·        Special Events – Operations staff time, equipment and materials to support special events including; litter pick-up/disposal; traffic control signs and barricades; boulevard flushing; etc.

·        Garbage and Litter – enhanced service level for litter pick up and ‘tipping’ waste receptacles compared to standard services provided across Town.

·        Snow Removal – all snow on entire sidewalks and boulevard systems within the two Main Streets.  This is done using small loaders and all snow is hauled away in dump trucks at a cost of $5,000 per occasion for Unionville and $8,900 per occasion for Markham.

 

 

FINANCIAL CONSIDERATIONS AND TEMPLATE (external link)

Based on Staff recommendation in adopting option 4b, the 2008 streetscape fee for the Markham Village BIA is $16,775.00 and the Unionville BIA is $11,880.00 which reflects the 100% recovery for the costs of additional materials.  The Operations/Parks Department 2009 revenue budget be reduced by $3,785.00 to reflect this whole year adjustment.

 

In the event that the Markham Village and Unionville BIAs request a reduced service level, based on Staff recommendation in adopting option 3b), the Operations/Parks Department 2009 revenue budget be reduced by $32,440 to reflect this whole year adjustment and potential reductions of $58,655 in operating costs.

 

 Staff recommends that the 2007 Markham Village and Unionville BIA financial statements reflect payments of the streetscape services as approved in the 2007 budget in accordance with the tax levy by-law; therefore, the cost of streetscape services for the Markham Village BIA be $22,000 and Unionville BIA be $10,440.  The Treasurer will work with the BIAs to develop a repayment schedule extended beyond the current year.

 

 

 

 

 

 

 

 

 

 

 

 

RECOMMENDED BY:  

 

 

________________________                                                ________________________

Paul Ingham,                                                                             Peter Loukes,

General Manager, Operations                                                   Commission Lead, Community and Fire Services

 

 

________________________

Joel Lustig,                                                                              

Director, Financial and Client Services

 

 

ATTACHMENTS:

Appendix A – Streetscape Inventory 2008

Appendix B – Total Town Costs in providing Streetscape Services to BIAs & % Material Recovery from BIAs