- Funding model has annual debt funded
from investment income, not the taxbase -
by Sylene Argent, Local Journalism Initiative
The Town of Essex will proceed with issuing tender documents for the construction and expansion of the current Town Hall with post-budget approval for $6,331,075.
Council gave approval to move forward with this at the Tuesday, September 3 meeting.
Back in November, Essex Council approved moving forward in developing a business case for funding a Town Hall expansion and consolidation plan on the current Town Hall footprint.
At the time, Council approved a series of resolutions that would work towards a solution for the need of more space for staff, as there had been no formal resolution from Council to do so previously.
That included selecting the current location for Town Hall Expansion and Consolidation. In addition, Administration was directed to develop a business plan to fund the expansion and consolidation, which would include the selling of the Gesto Office building and utilizing the sale funds toward the expansion capital costs.
Council also awarded the development of construction drawings to Architecttura Architects and Engineers in the amount of $398,750 at the time for the Town Hall expansion and HVAC upgrades. That was funded through the Landfill Reserve.
On Tuesday, CAO Doug Sweet noted Architecttura Architects and Engineers has developed construction-ready drawings based on the previous direction. It also provided a “Class B” budget, which is as close as you can get to quotes, based on the detailed drawings.
Director of Corporate Services/Treasurer, Kate Giurissevich, explained the estimated cost is around $6.3M, including furniture and fixtures, IT equipment, required necessities for the Council Chambers, and any other expenses, on top of the construction.
There were a few funding options, including $100,000 from the Development Charge Reserve, $416,000 from the Asset Management Reserve for the HVAC system and raising of the Council Chamber floors, miscellaneous revenue in the amount of $350,000, and $2.9M in long-term debt. Investment income was estimated in the amount of $2.6M.
This does include the sale of the Gesto facility, which is unknown presently, and could alter the funding scenario slightly, Giurissevich added.
Those costs are calculated in 2024/2025 dollars, Giurissevich added. If the project was postponed for a year, the architect warned Town staff it could add an additional $600,000 to the bottom line, due to escalation costs and price increases.
Operating impacts were also analyzed, and it is intended that the annual debt payments would be fully funded from investment income and not the taxbase, resulting in a net-zero-dollar impact to ratepayers, Giurissevich added.
Another consideration would be potential operating savings, with probable savings to utility costs, reduction in staff mileage, and potential for future tax revenue, depending on the future use for the Gesto Building.
In 2016 Council approved funding to have an Office Accommodation Assessment completed for the Essex Municipal Building and the Gesto Office Building, which was formerly Fire Station 2 and now houses the staff within the Development Services Department. In the spring of that year, an RFP was issued and Stephenson Engineering was retained to complete the assessment.
The scope of the project was to see what work would need to be completed on both buildings in the next five to ten-years.
The Essex Municipal Building was built 57-years ago, when the population for the town was 4,000. It was also the Essex Police Station at one time. It is approximately 10,000-square-feet and is currently housing 43 full-time staff members for a community with a population over 20,000.
The Gesto Office Building is three-years older and was originally the Colchester North Municipal Building. It is around 6350-square-feet and currently houses 15 full-time staff members.
The Stephenson Engineering report concluded the two buildings do not meet current program and space needs, and create physical disconnect with staff members.
Based on that report, Sweet noted the Town of Essex would look to add an additional 21,000-square feet to the Town Hall facility.
Sweet said that it was anticipated a new building would cost somewhere between $17-$12M in 2016 dollars. With inflation, it likely would be somewhere between $23-$25M today.
The expansion was a more cost-effective path.
Based on all the information, “Administration feels the current proposed options for an expansion of Town Hall by consolidating with the Gesto Office facility is a practical option for the Town of Essex,” Sweet said, adding this will not only accommodate today’s staffing requirements, but the addition of the second floor would accommodate needs for the next 10-20-years.
Since the review was conducted, Sweet noted the previous Term of Essex Council took steps to allow for future expansion. That included moving Tot Park from the lot adjacent to the Essex Municipal Building to the Essex Centre Sports Complex grounds. In addition, the Town purchased the former daycare lot.
In addition, the provincial government provided a grant in 2021 to help create more spaces, which the Town of Essex was successful in obtaining. The funds expanded the customer care area. That space was designed with consideration of future expansion, Sweet said.
Director of Community Services, Jake Morassut, shared the design details. The parking lot will have access from Arthur Avenue or Irwin Avenue, a rep from each department will sit at the front counter, the current Council Chambers will be converted to a meeting room with the floors elevated to match the rest of the building, there will be an addition of a larger Council Chamber, a larger lunch room as the current one can fit round three individuals.
The new design also has safety of staff and Council in mind. The new Council Chambers will have two exits, one towards the back of the room. It will also seat 44 in the gallery for meetings of interest.
Morassut noted 67% of full-time staff members will be impacted by the construction. There is a plan to minimize impact to staff and prevent having to temporarily move them to other facilities during construction.
The project construction plan has been broken down into three phases, including the addition, HVAC, and leveling out the building and converting the current Council Chambers into a meeting room.
The last staff shuffle during the project will relocate the employees from the Gesto office to the expanded facility.
The new design offers better front-facing customer service, reduction in mileage and travel time for staff having to go between the two current buildings, and more efficient systems, he added.
The second floor, Morassut commented, will service future needs if there are any. It will also house a lunch room, restrooms, storage room, and a large office area that could be used for open houses or strategic meetings.
Consolidating both buildings will allow residents the ability to come to one facility for all their municipal needs. Morassut noted staff often hear frustrations from residents in having to go between facilities.
With approval of the funding, Architecttura Architects and Engineers will take two weeks to finalize the plans before they go to tender. Getting a winning bidder would take around six-weeks, with another two-three weeks before it gets back before Council for consideration for approval.
It is hoped to have shovels in the ground in around three-months, with expectation to have it completed by January 2026.
Councillor Rodeny Hammond commented it is time to give Town staff proper working conditions.
Mayor Sherry Bondy spoke of how this plan was in the works for a long time to find something that would work for the Town.
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