COMMITTEE OF THE WHOLE
	TO:	Mayor and Members of Council
	FROM:	J. Sales, Commissioner of Community and Fire Services
	PREPARED BY:	Deborah Walker, Manager, Library Strategy
	DATE OF MEETING:	2004-Mar-9
	SUBJECT:	Markham Village Library Expansion

RECOMMENDATIONS:

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

AND THAT Council approve the design of Option 1 for the Markham Village Library expansion of 10,500 square feet at an estimated cost of $3,821,300 (inclusive of 3% GST) and authorize the Architect, Shoalts and Zaback, to proceed with the schematic design;

AND THAT Council approve the (finishing) renovating of the (proposed) basement to accommodate the Library Administration and Technical Services Department at an estimated cost of $530,450 (inclusive of 3% GST) to be funded annually from the elimination of the operating lease until fully offset;

AND THAT Council approve the renovation of the existing Library to be undertaken at the same time as the new construction, at an estimated cost of $2,266,000 (inclusive of 3% GST), to be funded from a non Development Charge source to be determined through the 2004 Budget process;

AND FURTHER THAT staff provide a detailed cost estimate for Council approval upon completion of the detailed design.

PURPOSE:

The purpose of this report is to obtain approval from Council for the Schematic Design of Option 1 of the Markham Village Library Expansion and authority to proceed with the Detailed Design of this project.

EXECUTIVE SUMMARY:

The Markham Village Library Expansion project consists of an addition of 10,500 sq. ft. to expand the Public Library Space and 5,250 sq. ft. to accommodate the Library Administration and Technical Services (ATS) departments.

The design process began with analysis of the Library’s site and where the Expansion should be positioned in relation to the existing Library. The architect has developed three site Options for the consideration of the public, the Executive Steering Committee (ESC), and Council.

The project’s initial site plan was very similar to Option 1, which is shown below. A series of Public Meetings were held to obtain community input. As a result of the extensive public input received, a new Option 3, which links the Library to the adjacent Arena, has been developed. Options 1 and 3 represent distinct and divergent visions for the expansion of the Library at this site. Both options meet the Library’s space and functional needs. (Option 2 is similar to Option 1 in costing, but is less functional in terms of library operations. The Executive Steering Committee does not recommend it. See Appendix “A” for a full description of Option 2.)

Those who have attended the public meetings and design workshops prefer Option 3. The public believes that only Option 3 takes full advantage of the potential of this site and the possible synergies with the adjacent community facilities. The public understands that significant additional funding is required for Option 3.

Option 1 meets the funding formula for the project. Option 3 requires additional funding, and is fundable in part through Development Charges. Funding Option 3 through Development Charges would reduce DC funding availability for other future growth-related recreational and library facility projects.

Staff supports Option 1 as the base project that fully meets the Libraries’ functional and service needs, as outlined in the 1999 Feasibility Study, and is achievable within the original funding formula.

The Library recognizes the benefits of Option 3, as expressed by the community in terms of aesthetics, improving the Library’s civic presence, and fulfilling the opportunities of the site. However, Option 3 does not provide any further assistance over Option 1 to the Library’s program, services, operations, and functionality.

ESC believes it is important that Council considers both options and then decides how the project should proceed.

The report outlines each option in further detail, including a summary of pros and cons, describes the public input process to date, and provides budgets for each option. The business case for proceeding with the existing Library renovation at the same time as new construction is also presented.

(See Appendix “A” for full-page views of Options 1, 2 and 3.)

BACKGROUND:

Council Approval of Expansion

On January 24, 2003, Council approved the following:

• Proceeding with a 10,500 sq. ft. expansion of the Markham Village Library;
• And that an architect be engaged to design the expansion project;
• And that a report be submitted to Council, establishing the building design, project budget, and detailed project schedule, when the schematic design stage is complete;
• And that the report include an examination of opportunities for funding partners and/or sponsorships;
• And that Council allocates an upset limit of $ 300,000, including all taxes, for the design of the Markham Village Library expansion, to be funded from the Development Charges Reserve;
• And that an Executive Steering Committee comprised of some or all of the following be established to oversee the corporate elements of the project:
• Chair of the Community Services Committee
• Council Members on the Library Board
• One or more non-Council Members on the Library Board
• Commissioner of Community and Fire Services
• Commissioner of Corporate Services
• Library CEO
• And further that a Public Information Meeting be held at the appropriate time prior to finalization of issues.

Council Approval of relocation of Library Administration Centre

On January 24, 2003, Council also approved the following:

• That the cost-benefit analysis of relocating the Library Administration Centre within the Markham Village Library expansion be received;
• And that this project be incorporated into the expansion of Markham Village Library.

Executive Steering Committee Established

The Executive Steering Committee (ESC) met for the first time on October 27, 2003, and subsequently on November 12, 2003, December 15, 2003, and January 28, 2004. The members are:

Chief Administrative Officer John Livey

Commissioner of Community & Fire Services Jim Sales

Commissioner of Corporate Services Andy Taylor

Library Chief Executive Officer Catherine Biss

Councillor Jack Heath

Councillor George McKelvey

Councillor Alex Chiu

Councillor John Webster

Library Board Chair Joanne Pickering

Library Board Member Michelle Tidball

Library Board Member Ed Brewer

Commissioner, Development Services Jim Baird

Director of Financial and Client Services Joel Lustig

Project Manager Eardley Adams

Manager, Library Strategy Deborah Walker

Manager, Corporate Communications Marjorie Rebane

Architect Gerald Shoalts

Architect’s Library Consultant Roger Jones

Consultation regarding Main Street Markham Streetscape and Traffic Management Study On March 27 and April 10, 2003, Library staff met with Urban Design staff to discuss the Main Street Markham Streetscape and Traffic Management Study process as it affects Main Street south of Highway 7, abutting the Library’s site. To ensure the Library’s expansion would be integrated with the Main Street Study, information has continued to be shared between Library staff, Urban Design staff, Main Street Study consultant Ken Hoyle, and (following their retention) architect Shoalts and Zaback Architects Ltd.

Public Consultation June 18, 2003—Support for Expansion to the North

On June 18, 2003, at the Markham Train Station, Library staff attended a community information meeting regarding the Main Street Master Plan for south of Highway 7 and the Markham Village Library expansion. Library expansion was well received. The concept of expanding the Library to the north and linking it to the existing Community Centre appeared to gather support. Various concerns were expressed regarding traffic issues, parking, traffic safety on Reeve Drive, and traffic access to the Library parking lot. These concerns were carried forward into the design process.

Architect Hired

On October 15, 2003, the contract for architectural services was awarded to Shoalts and Zaback Architects Ltd.

Review of Schedule by Executive Steering Committee—Expansion to the North benefits schedule for moving Library’s Administration & Technical Services

The need to move the Library’s Administration & Technical Services (ATS) out of its leased facility and into the basement of the expansion, to avoid additional leasing costs, has been a pressing concern throughout the project. As a result of concern regarding the schedule for construction, ESC directed an investigation of a previously unconsidered option – renovating the existing Library’s lower level for ATS. This option assumed an expansion to the west or the north, which appeared to be the community’s preference. Renovation of the lower level for ATS could proceed independently of the Library expansion and could start and conclude by the end of November 2003, allowing ATS to move from its leased facility and avoid incurring additional leasing costs.

Public Consultation November 17-19, 2003—Expansion to the North is preferred

As part of the communication process, staff identified an extensive list of project stakeholders (see Appendix B). The architect’s library consultant, Roger Jones, contacted stakeholders and invited them to attend personal interviews. During the week of November 17, Roger Jones met one-on-one with those stakeholder groups that accepted the invitation to be interviewed (i.e. Markham Veterans’ Association, Ontario Pathways [Early Years], Markham Pathways [Early Years], Heritage Markham, Legacy Ratepayers Association, Toastmasters, Yoga, Participation House, Literacy Council, and the Markham Group of Artists).

All stakeholders were also invited to a public meeting on November 19, 2003, to gather public input for the design process, and thirty members of the public attended. This public meeting was extensively advertised through the Town page in the Economist & Sun, flyers inserted in the Economist & Sun, meeting notices on the Town and Library websites, and flyers distributed in the Library itself. Public input gathered at this meeting is summarized as follows:

• Library parking should be linked to Arena parking, and Library-related traffic diverted from Reeve Drive.
• Library parking should be expanded to the west of the existing parking lot, and not south or east into the park.
• Pedestrian access from Highway 7 needs to be improved.
• Expansion to the north is preferred to improve pedestrian access, improve the Library’s relation to Main Street, improve the Library’s visibility, screen the Arena’s unsightly west façade, and prevent any encroachment into the existing park south of the Library.

Also, on November 19, 2003, the architect attended a meeting of the Main Street Markham Committee to gather Committee members’ input.

Design Charrette for Councillors, Library Board Members, Town Staff & Library Staff—Three Options Developed

On December 15, 2003, at the request of ESC, a design charrette was held with Councillors, Library Board members, Town staff, and Library staff. Bearing in mind public input received as well as the urgency of moving ATS out of its leased facility, charrette participants developed three options for the architect to expand and cost (see Appendix “A”).

At the January 28, 2004 ESC meeting, the architect’s three options were reviewed, along with order of magnitude costs for each option. ESC directed that the three options be taken to the public for further communication and input, prior to the submission of a Report to Council.

Public Consultation February 4, 2004—Presentation of Three Options—Community Prefers Option 3 Expansion to North

On February 4, 2004, as directed by ESC, the three options and the budgets were presented at a public meeting (see Appendix “A” for full review of the Options). 37 members of the public attended, including representatives of the Reeve Drive Ratepayers Association, the Main Street Markham Committee, the Veterans Association, Markham Village Library users, other ratepayer groups, and interested community members. The following summarizes the meeting’s analysis and discussion of the three Options:

Option One:

• Most operationally functional plan from Library’s point of view.
• Meets original budget.
• Closest to original feasibility study.
• Enhances pedestrian access from Highway 7 transit corridor by bringing building’s north entrance back into use.
• Provides public meeting room on main level.

Option Two:

• L-shaped floor plans are less effective for security and customer service.
• Pushes Library closer to Main Street corridor by locating extension to north and west, rather than to south.
• Retains all existing basement windows.
• May be architecturally difficult to coordinate roofs.

Option Three:

• Most convenient Option for pedestrians, due to proximity to Highway 7 transit corridor.
• Provides civic space, as desired by community, and gathering and meeting place for community at corner of Highways 7 and 48.
• Arena-Library linkage opens numerous opportunities for community and commercial use.
• Encourages use of Arena parking lot.
• Moves public service functions from existing building’s lower level.
• L-shaped floor plans are less effective and efficient for security and customer service.

At the conclusion of discussion, informal votes were conducted on the main issues raised:

1. Should the Library be expanded? Unanimous support.

2. Preferred Option:

Option 1: 2.

Option 2: 0

Option 3: 35

The consensus was that Option 3 was the preferred solution for the community. The group understood that substantial additional funding is required to achieve Option 3. The group understood that Option 1 meets the Library’s functional needs but believed that it fails to capitalize on the opportunities of the site. There was also recognition that, if Option 1 were selected, the future opportunities for the site would be lost.

Renovation of Existing Library—Architect Recommends Integration with New Construction

In 2003, the renovation funding for Markham Village Library was deferred by the Budget Committee until 2004 budget discussions, at which time the renovation project was to be reconsidered. Shoalts and Zaback Architects has estimated the cost of renovation of the existing Library building to be approximately $2.3 million. The architect has also reviewed the issue of when and how renovations to the existing building should proceed, and has provided the following Business Case for an Integrated Project:

· The existing building was constructed in 1981 and is, therefore, 23 years old.

· By carrying out the expansion project, a longterm commitment to Library Services at this site is being made.

· The existing HVAC system and southern exterior Library wall are in poor, deteriorating condition. Significant financial investment is necessary to repair and upgrade building systems and exterior fabric. This work could be deferred for a limited time, but not indefinitely.

· Renovations to the existing building are needed to integrate it with the addition and provide a single optimally functioning Library.

· If renovations are deferred, repair work will need to be done in the short term. Much of this repair cost will be lost when final renovations occur.

If Council directs that renovation to the existing building, at a cost of approximately $2.3 million, be integrated and new construction proceeds, the following Order of Magnitude Cost Savings will result:

Option 1 Order of Magnitude Cost Savings:

Avoid short term repair work	$125,000.00
Elimination of Phases	$100,000.00
6% per annum for deferring renovations (assume 1 year deferral on $2,266,000.00)	$130,000.00
Cost of Interim Measures to operate Library as separate addition and unrenovated existing building	$200,000.00
Total Order of Magnitude Cost Savings	$555,000.00

Option 3 Order of Magnitude Cost Savings:

Avoid short term repair work	$125,000.00
8 months rent savings on Administration Centre offices	$150,000.00
Elimination of Phases	$100,000.00
6% per annum for deferring renovations (assume 1 year deferral on $2,266,000.00)	$130,000.00
Cost of Interim Measures to operate Library as separate addition and unrenovated existing building	$200,000.00
Total Order of Magnitude Cost Savings	$705,000.00

In order to capture these Cost Savings, it is therefore recommended that new construction and renovation proceed as an integrated project.

The renovation cost is included for each Option under Financial Considerations below.

FINANCIAL CONSIDERATIONS:

Shoalts and Zaback Architects has developed the following estimates for each design Option. Since the project is currently in the pre-design phase, all cost estimates are necessarily “order of magnitude” costs only, based on preliminary sketch charts. The following notes apply to all estimates:

· Each estimate includes Design Contingency (8%), Escalation Contingency (5%, assuming a Spring 2005 construction start), and Post Construction Contract Contingency (7%).

· The estimates below do not include:

o Professional Fees and Disbursements,

o Soil Tests, Site Survey, Inspection and Testing,

o Hazardous Material Survey of Existing Library and Arena,

o Library Security System, Automation, Furniture, Equipment and Collections, Window Treatments,

o Municipal Permits and Fees,

o Computer, Telephone Cabling (conduit only in estimates),

o Redevelopment of Village Green,

o Handling, removal or disposal of hazardous, deleterious or contaminated soils or materials,

o Dewatering of foundations during construction (i.e. unusual groundwater conditions).

· The following assumptions have been made:

o Competitive bids will be received from local prequalified contractors.

o Local market conditions are competitive at time of tender.

o Native soils will support required loads.

· The estimates assume one construction contract with two Phases: Phase 1 – New Construction and Phase 2 – Renovate Existing. If renovations are deferred, additional costs will be incurred.

OPTION 1—PRELIMINARY PROJECT COST ESTIMATE

New Construction & Site Work	$3,821,300.00
Fitting out the basement of the New Construction for ATS	$530,450.00
Renovation of the existing building’s 3 levels	$2,266,000.00
Total Option 1	$6,617,750.00

FUNDING SOURCES:

Option 1 provides a two-storey addition with half basement to the south of the Existing Library. In order to analyze the funding sources for each element of Option 1, the following chart illustrates the elements/components of Option 1 as a construction project:

	Element Description	Preliminary Cost Estimate
1	New Construction (the two upper levels of the addition plus the shell of the half-basement) and Site Work	$3,821,300
2	Finishing the half-basement level of the addition to be occupied by the Library’s ATS	$530,450
3	Renovation of the existing building’s 3 levels	$2,266,000
	TOTAL	$6,617,750

Of Option 1’s $6,617,750 total preliminary cost estimate, $3,439,170 could be funded through Development Charges. Additional funding of $3,178,580 from the tax base is therefore necessary.

OPTION 2—PRELIMINARY PROJECT COST ESTIMATE

New Construction & Site Work	$4,454,750.00
Renovation of the existing building’s 3 levels	$2,266,000.00
Total Option 2	$6,720,750.00

Since Option 2 did not receive support at the Public Meeting on February 4, it has been withdrawn from further analysis.

OPTION 3—PRELIMINARY PROJECT COST ESTIMATE

Base Building & Site Work		$4,351,750.00
Renovation of the existing building’s 3 levels		$2,266,000.00
Sub-total Base Building		$6,617,750.00
New Link to Arena (interior street)	$2,111,500.00
Alterations to Existing Arena	$515,000.00
Relocation of Ice Making Equipment and New Façade to Transformer Vault	$257,500.00
Sub-total	$2,884,000.00	$2,884,000.00
Total Option 3		$9,501,750.00

Funding Sources:

Option 3 provides a two-storey addition on a slab-on-grade foundation, to the north of the Existing Library. It requires the construction of new public meeting rooms to replace the current public meeting rooms displaced by ATS moving into the existing basement. A north-south internal street links the Existing Arena and the new Library addition. In order to analyze the funding sources for each element of Option 3, the following chart illustrates the elements/components of Option 3 as a construction project:

	Element Description	Preliminary Cost Estimate
	BASE BUILDING & SITE WORK	$4,351,750
1	10,500 sq. ft. of new public library space as per the original projection
2	5,250 sq. ft. of new ground floor public meeting/program rooms required to replace the existing program rooms
	RENOVATION OF EXISTING BUILDING	$2,266,000
3	Renovation of the existing building’s 3 levels
	LINK TO ARENA	$2,884,000
4	Link to the Arena, including alterations to the Arena and relocated services
	TOTAL	$9,501,750

If DC funding was made available to fund Element 4 (Arena Link) of Option 3, $5,399,775 of Option 3’s total cost estimate could be funded through Development Charges. Additional funding of $4,101,975 from the tax base would be necessary.

Staff’s position is that Development Charges should not be used to fund Element 4 (Arena Link) of Option 3, as this would reduce DC funding availability for other future growth-related recreational and library facility projects.

If DC does not fund Element 4 (Arena Link) of Option 3, Option 3’s $9,501,750 total preliminary cost estimate requires funding of $2,804,175 through Development Charges, and requires additional funding of $6,697,575 from the tax base.

OPTION 3A (phased)—PRELIMINARY PROJECT COST ESTIMATE

As discussed in Appendix A, Option 3 could be developed in two stages:

· Phase 1: The Library extension is constructed first at a modest premium over Option 1 and possible additional tax dollars.

· Phase 2: The connection to the Arena/Community Centre could be built later, as funds become available.

Phase 1 Library and Landscape Courtyard where future Link will go	$6,772,250.00
(Additional Costs ($150,000.00) due to : 1) East wall of Library addition is now an exterior wall; and 2) Landscaped Courtyard)
Phase 2 “Interior Street”	$3,167,250.00
(Additional Costs ($275,000.00) due to : 1) Assume construction inflation of 6% per year 2) Assume construction is 1 year later 3) More restricted site)
Total Option 3A	$9,939,500.00

This is approximately $437,750.00 higher than Option 3.

ENVIRONMENTAL CONSIDERATIONS:

None.

ACCESSIBILITY CONSIDERATIONS:

None.

ENGAGE 21ST CONSIDERATIONS:

None.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Financial Services Department, the Director, Recreation and Culture Services, and the Director, Operations and Asset Management reviewed this report.

ATTACHMENTS:

Appendix “A”: MARKHAM VILLAGE LIBRARY EXPANSION—REPORT ON OPTIONS 1, 2, AND 3

Appendix “B”: Markham Village Library Expansion—Public Stakeholders for Consultative PROCESS NOVEMBER 19, 2003

Appendix “C”: SUMMARY OF PUBLIC INPUT TO MARKHAM VILLAGE LIBRARY EXPANSION NOV 17-19, 2003

Jim Sales

Commissioner, Community & Fire Services

I:\SENIOR\MV Expansion\Report to Council Mar 9 04\Report MV Mar 9 04