Report to: Council                                                         Date Report Authored: Sept. 21, 2009.

 

 

SUBJECT:                          Main St. Markham Permanent Washrooms – Storage Facility

PREPARED BY:               Rob Sacoransky, Senior project Manager, Ext. 2845

                                            Michael Shatil, Manager Facility Assets, Ext. 2379

 

 

 

RECOMMENDATION:

1)                  THAT  the report titled “Main St. Markham Permanent Washrooms – Storage Facility” be received;

 

2)         AND THAT Council approves the construction of a 300 square ft storage facility 

             attached to the washrooms;        

 

3)                   AND THAT funding for the entire project come from the 2010 submitted capital     

       budget request, in the amount of $300,000;                                                                                           

 

4)                  AND THAT the Mayor and Clerk be authorized to execute a 21 year less one day lease agreement with the Main St. Markham BIA under the terms and conditions contained in this report, including a rental rate of  $350.00 per month plus G.S.T, said agreement to be in a form and content satisfactory to the Chief     

         Administrative Officer and the Town Solicitor;

 

5)                  AND THAT the following resolution be reported out in the public Council meeting on this date:

 

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

 

 

PURPOSE:

The purpose of this report is to seek council approval to construct a 300 square foot storage facility attached to the previously approved permanent washrooms as requested by the Main St. Markham BIA. This report is also to seek council approval to enter into a lease agreement for the storage facility with the Main St. Markham BIA.

 

 

BACKGROUND:

The Main Street Markham BIA has requested an unheated storage facility to house their equipment for the Farmer’s Market that takes place every weekend in the parking lot on the south side of Robinson St. directly across from the proposed washrooms. The request is for the storage facility to be constructed in close proximity to the proposed washrooms to allow the BIA to easily transport equipment back and forth from the event. The BIA has requested that the storage facility be approximately 300 sq. ft. and include doors large enough for a golf cart to enter, unload and park inside. After review of the initial design by the Heritage Staff, Staff recommends that the storage facility be attached to the rear of the washroom building and have the same width as the proposed building.  This will require the storage facility to be constructed on foundations, similar to the new washroom building.

 

 

David Johnston Architect has submitted a proposal to complete the additional design of the storage facility at a cost of $3,000 and also estimated the construction cost of the storage facility to be approximately $40,000.

 

OPTIONS/ DISCUSSION:

 

1)      The total project cost is $300,000

 

 

The following is the breakdown for the proposed washroom & storage facility building:

 

 

Description

 Cost

Design

  25,000 *

Utility Connections

     56,000 **

Building Costs (625 sq. ft. x $200/sq. ft.)

125,000

Landscaping in Public Areas

                 30,000

Storage Facility

                 40,000

Contingency

  24,000

Total Cost

$300,000

 

 

 

* The design cost is comprised of $22,000 for the washrooms and $3,000 for the storage facility.

 

** The estimated cost for the utility connections is due to the location of the existing utilities. The new building services will be connected to Church St whereas the washrooms are in close proximity to Robinson St (about 100m south of Church). 

 

 

2.   The Main St. Markham BIA has agreed to enter into an agreement with the Town to lease the storage facility for a period of 21 years at a gross rental rate of $350/ month plus G.S.T. over the course of the lease.

 

 

 

 

 

 

 

 

 

 

 

The lease rate was determined based on the following calculations:

 

 

 

Maintenance Item Description

Cost

Year

NPV of Future Cost / year *

Replace wood siding

$15,000

30

$225.77

Replace shingled roof

$1,500

15

$69.51

Stain wood Siding

$1,500

5

$271.25

Replace plastic overhead door

$10,000

20

$302.39

Electrical Costs

$300

Annual

$300

Total Costs

$28,300

 

$1,168.92

Monthly Cost

 

 

 $97.41

 

* The NPV (Net Present Value) was calculated based on an interest rate of 5%.

 

 

Capital Cost

Amortization Period

Interest Rate

Cost / Month

$43,000

21 years

5%

$274.71

 

 

The total monthly cost is therefore $372.12 (the total of the capital cost amortized over 21 years plus the Net Present Value of the estimated maintenance/replacement costs over a 30 year period), capitalized at 5% per annum.

 

At a meeting between Staff and the Main St. Markham BIA, the above proposed fee was discussed. The BIA requested that it be reduced to $350/month, including hydro costs, which staff estimates at approximately $25.00 per month.  This fixed monthly rental rate ($350.00) reasonably captures the Town’s cost to build, maintain and repair the structure, including capital upgrades, over its economic life.   Accordingly, it is recommended that the Town enter into a 21 year less one day lease with the BIA at a fixed monthly rental rate of $350.00.  The Town would be responsible for all maintenance and repair costs over the course of the lease, including snow removal which would be an incremental cost to the proposed budget for the washrooms.

 

TERMS OF THE AGREEMENT: 

 

The terms of the lease agreement are summarized below:

 

Rent:                                                                $350 per month, GROSS, plus G.S.T.

Utilities:                                                            Town pays (included in rent)

Maintenance/repair/snow removal:                    Responsibility of the Town

Termination:                                                      Tenant: no right of termination

                                                                        Town: for non payment of rent

Assignment:                                                      The lease is not assignable

 

 

ALIGNMENT WITH STRATEGIC PRIORITIES:

The new washrooms and storage facility are providing a much needed municipal service to the public.

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Legal Dept., Development Services

 

 

 

 

RECOMMENDED

                            BY:    ________________________        ________________________

                                      Steve Andrews, P. Eng                    Brenda Librecz

                                       Director,                                          Commissioner,

                                       Asset Management                          Community and Fire Services