Report to: General Committee Report
Date: May 26 , 2008
SUBJECT: BIA Streetscape Services
PREPARED BY: Mark Ingwersen, District Manager,
Andrea Tang, Manager, Financial Planning
RECOMMENDATION:
THAT the report
dated
AND THAT the
report dated
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, if required;
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 the 2008
streetscape fee for the Markham Village BIA be $14,685 and the Unionville BIA be
$9,955 which reflects 100% recovery for the costs of additional materials;
AND THAT the recoveries from the BIAs be subject to annual CPI inflationary increases and adjusted as required during annual Budget review;
AND THAT the
AND THAT should
Council approve a service level resulting in a reduction in the number of units
on the BIA Main Streets, the surplus units for 2008 be disposed of as provided
for in the Purchasing Bylaw;
AND THAT the
Operations 2009 Budget be adjusted to reflect the approved service level;
AND THAT Staff
will meet with the BIAs in the fall of 2008 to discuss the 2009 Streetscape
program;
AND THAT Staff be
authorized and directed to do all things necessary to give effect to this
resolution.
EXECUTIVE SUMMARY:
The Markham Streetscape program started in
1978 at the
The BIAs had been partially subsidizing the
Streetscape program by contributing $22,000 from the Markham Village BIA and
$10,440 from the Unionville BIA towards the costs of materials. Other related costs, such as the labour for
planting, costs to grow and maintain were included as part of the Town’s annual
operating budget totaling to approximately $78,800.
Staff prepared a report to General
Committee dated
In the event that the
In the event that the
In addition, the
BIAs are requesting that the Town write-off the 2007 Streetscape Services
charges of $22,000 to the Markham Village BIA and $10,440 to the Unionville
BIA. It is recommended that the
Treasurer be directed to work with the BIAs to develop a repayment schedule
extended beyond the current year, if required.
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
·
1978 - The Streetscape program
was initiated on
· 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
·
1994 - The Milliken Streetscape
Program was implemented on
· 1999 - Community Centres were included in the program at the request of the Recreation Department
·
2000 - 2002
The Milliken Streetscape Program was expanded including
·
2003 - Town Streetscape Program was expanded with
units being added in Milliken Mills and implemented in
· 2004 - A total of 2,180 basket/barrel units in the program
·
2005 - 472 baskets/barrels
added to Milliken area – Ward 7 on
· 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.
Below is an excerpt of the email from the
Markham Village BIA that outlines the Markham Village BIA’s proposal on the
Streetscape Services:
“At
the meeting a number of issues were discussed, and I believe everyone made a
sincere effort to understand each other's positions. We appreciate now the
history of the program extending back to 1978, the year after the Markham BIA
was founded, how the program grew over the years, often in an informal manner,
to the final expansion of 472 units in 2005 to its present level of 2,652
units. The report also lists other service items which the town provides within
the BIAs. On the other hand the BIAs feel that many items have not been
mentioned in the report which would emphasize the contribution that the BIAs
have brought to the community, and the economic and cultural life of the Town.
Also, the dramatic growth of the town since 1978 has created significant
challenges for the businesses in the existing BIA heritage areas, and the funds
that the BIA receives are raised through a specific tax levy on the business
properties in the BIA for the BIA's use in promoting the area.
Primarily
however, it simply comes down to this – the BIAs feel that it is not fair
for the BIAs to pay for a service that is being provided for free, in much
larger quantities, in other areas of the Town of Markham where there is no BIA.
The report details in fact even heighten the sense of unfairness that the BIAs
feel, because the BIAs were the original partners in this program and agreed,
in the beginning to pay for it out of their BIA levy. However, all of the
expansions in the service that occurred over the years have been funded by the
Town. At present, the BIAs receive less than 30% of the service, yet are the
only paying customer. This is what is unfair, especially since 2002 when other
funding sources dropped out. In June 2005 the UBIA raised this issue in
council, and have appeared at budget meetings since then, and they have been
rebuffed. We could go on forever about the quantities, history, when, why, how,
etcetera, yet the fact remains that the BIAs feel they have not been treated
fairly and no amount of discussion or lecturing is going to change that. There
is also a significant power and financial imbalance that the BIAs are at a
disadvantage in.
We
therefore appreciate the opportunity to present an option that the BIAs will
accept, and that the Town can financially handle, and that deals on a going
forward dynamic, in a good faith effort to avoid having the matter escalate to
a level that will benefit no-one. Hopefully this option can not only be
included in the report to council but can be endorsed.
Option:
1.
MBIA and UBIA will not budget for any botanicals for 2008. We are
prepared to let the town determine what an appropriate level of service is for
these two heritage areas.
2.
That the Town forgives the Botanical charge for 2007 to the BIAs. In this
event, the BIAs will not seek reimbursement for years prior to 2007, in order
that we can all focus on the future. While many in the BIAs may feel we should
be entitled to go back to prior years, this option only deals with the one year
that payment has not been specifically authorized for. It is important to
remember that nobody is getting
everything they want
3.
That the town direct staff to meet with the
BIAs onsite early in the fall of 2008 - before the flowers are
removed - to discuss and negotiate the streetscape program for 2009, as with most businesses
relationships.
4.
That the town establish a committee with representatives from various town
departments - culture, economic development, BIAs, parks & roads, council,
and the community, for example, that is charged with assessing the roles and
relationships of a BIA within the town of Markham, and with providing recommendations
on how those roles can be improved. It is my own view that the
Town is missing opportunities to use the BIA structure in other business areas,
not only in heritage areas but in brand new developments as well. A BIA can be
used to enhance the service levels that the town provides in those areas from
street visuals to security, and can encourage the creation of distinct
commercial areas and communities.”
Below is an excerpt of the email from the
Unionville BIA that outlines the Unionville BIA’s proposal on the Streetscape
Services:
“Firstly, the Unionville
BIA would like to thank the Town of
Since flowers were
originally placed along
The Unionville BIA
discovered that this unfairness has actually existed from the onset (since
1984) when the business section along Yonge Street in Thornhill received Town
flowers at Town expense with no contributions made from local businesses or
associations. Currently, flowers are distributed, at Town expense, to other
wards across
Regardless; because this
has grown to become a Town-wide flower program; and, because this has become a
regular Town expenditure across
To remedy this unfairness,
the Unionville BIA could seek repayment of our contributions made since the
Town first started paying for flowers in other areas. However, in working with
our "sister" BIA in Markham, we ask instead that the Town simply
return the amount taken from our BIA accounts to subsidize the Town-wide flower
program in 2007; and, that from 2008 forward, the Town place flowers in
Unionville and Markham Village with whatever flowers that Town staff deem
appropriate at Town expense, as is the case in all other parts of Town.
The Unionville BIA is eager
to quickly remedying this matter so that we may all continue to admire the
incredible work done by the Town in beautifying
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 $78,800.00
(Appendix B-2 for detailed calculation). This includes labour for
planting, costs to grow them, placing them out and removing them from the
|
Location |
Streetscape
Area (lineal metres) |
Total
number of units |
Average
Spacing of units (lineal metres) |
|
(both sides) |
930 |
405 |
8.2 |
|
|
871 |
274 |
8.6 |
|
|
8260 |
1256 |
58 |
|
|
630 |
176 |
17.4 |
|
(both sides) |
1592 |
216 |
33 |
.
|
Average Spacing based on: |
(lineal
metres) |
|
Main Streets –
Markham & Unionville |
8.5 |
|
Denison/Kennedy/Middlefield,
|
36 |
|
|
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
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 $4,905 for the cost of materials ($275+$4,630) (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 $22,275 for
Service Level: Maintain
Change in number
of units: No change
Financial Impact to BIA:
(from
$22,000 to $22,275)
Unionville – cost increase of $4,630
(from $10,440 to $15,070)
Financial Impact to Town: Increase in revenue by $4,905
Option 3 a):
Provide Service Level based on average of
Service Level: Decrease
Change in number of
units:
Unionville
– Reduce by 205 units (from 274 to 69)
Financial Impact to
BIA:
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 $62,995
(cost of materials – 509 units x $55/unit =
$27,995)
(greenhouse lease $35,000)
Option 3 b):
Provide Service Level based on average of Yonge Street/Victoria Square
spacing
The
Service Level: Decrease
Change in number of
units:
Unionville
– Reduce by 181 units (from 274 to 93)
Financial Impact to
BIA:
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 $54,640
(cost of materials – 448 units x $55/unit = $24,640)
(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
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 $16,720 to the Markham BIA and approximately $11,275 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.
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:
Unionville
– increase of $835
Financial Impact to Town: Decrease
in revenues by $4,445
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 $14,685 to the Markham BIA and approximately $9,955 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:
Unionville
– cost reduction of $485
Financial Impact to
Town: Decrease in revenues by $7,800
No
change in operating costs
Summary
The
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.
In the event that
the
Disposal
of 2008 Surplus Units
Should the level
of service approved by Council result in a reduction in the number of units
required for 2008, staff be authorized to dispose the 2008 surplus units as
provided for in the Purchasing Bylaw.
In addition, the Operating Budget for 2009
will be adjusted to reflect the Council approved level of service in the
Markham and Unionville BIA districts.
Other
In-Kind Services provided by the Town
In addition to the maintaining and growing
of the baskets and barrels, the Town of
·
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.
·
·
Garbage and Litter – litter is
picked daily during the summer and 3 times/week at other times and waste
receptacles are emptied 3 times/week,
compared to once every 2 weeks for litter pickup and once per week for waste
receptacles 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
FINANCIAL CONSIDERATIONS AND TEMPLATE:
(external link)
Based on Staff recommendation in
adopting option 4b, the 2008 streetscape fee for the Markham Village BIA is $14,685
and the Unionville BIA is $9,955 which reflects the 100% recovery for the costs
of additional materials. The Operations /Parks Department 2009 revenue budget be
reduced by $7,800 to reflect this whole year adjustment.
Staff recommends that the 2007
BUSINESS UNITS CONSULTED AND AFFECTED:
Not Applicable
RECOMMENDED BY:
________________________ ________________________
Paul Ingham,
General Manager,
________________________
Joel Lustig,
Director, Financial and Client Services
ATTACHMENTS:
Appendix A – Streetscape Inventory 2008
Appendix B –
Q:\Commission
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