At its June 26, 2014 meeting, the Library Board moved that the following funding requests be submitted of part of the 2015 capital budget:

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1 R E P O R T T O T H E L I B R A R Y B O A R D MEETING DATE: AUGUST 14, 2014 Session: Public Session Subject: 2015 Capital Budget: Central Library Revitalization Business Case Prepared By: Susanna Hubbard Krimmer, Anne Baker, Barbara Jessop, Terry Wilkes, Margaret Wilkinson Presented By: Susanna Hubbard Krimmer Purpose of Report: For Approval RECOMMENDATION: It is recommended that the Library Board approve this report. ISSUE/OPPORTUNITY At its June 26, 2014 meeting, the Library Board moved that the following funding requests be submitted of part of the 2015 capital budget: $320,000 for Lifecycle requirements identified in the facility review and energy audit performed by Ameresco; $150,000 for previously funded 2014 projects backed up due to the required replacement of the Central Library generator; and Redevelopment of the Central Library as part of the Strategic Plan. The purpose of this report is to provide the Library Board with the Central Library Revitalization Business Case, as attached, which will be submitted to the City of London as part of the 2015 budget process. Some of the content below is excerpted from the case.

2 BACKGROUND & REVIEW Background In 2002, London Public Library opened a new and expanded state-of-the art Central Library in downtown London. The Library was one of three significant City of London Millennium Plan projects designed to redevelop the downtown. It was considered a best practice for service innovation and accessible design across North America and has served as a model for many other communities. The cost of the Central Library project was $27 million (The Library contributed over $900,000 through fund development). The Library purchased and renovated the former Hudson Bay building bringing public space onto Dundas Street. The Library s Hudson Bay Passageway, has served as a connector between Dundas Street and the many tenants of the Citi Centre Plaza (formerly the Galleria London). With an attendance of over 1,000,000 visitors per year (with a total of 13,157,302 since opening day), the Central Library is a popular destination for people from across the City, serves as a branch library for residents of the downtown and is the Library s corporate head office. Welcoming and free to all Londoners, the Central Library contributes to the rich culture and diversity of the downtown. Cultural events at the Library (and in the 380 seat Wolf Performance Hall) are part of the suite of cultural programming in the downtown. It also offers unique services (e.g. Ivey Family London Room) and programs that bring out-of-town visitors supporting London s tourism. Central Library users, visitors and staff also boost the downtown economy through their spending at local stores and restaurants. Thus, the Library is a huge contributor to the state of the downtown. Revitalization Need This popular and highly used destination is in need of revitalization because of the: Age of the building and lifecycle/code requirements of key building components, such as the escalators, which are original to the building; Lifecycle requirements of flooring, bathrooms and other building components and furniture and equipment resulting from the age and impact of sustained, high usage (13,157,302 users since August 2002); and Need to keep public services offered in the building relevant and up-to-date as we heard from the public and staff through significant consultation and learned from in-depth research about best practices for public spaces in international livable cities that LPL did as part of its Strategic Plan: Library Space is Community Place.

3 Risk of Not Revitalizing Central Library There are many benefits to proceeding with this project. Patrons and community partners spent considerable time giving LPL feedback regarding the future direction of the Library and they will be satisfied that their input was listened to and implemented to meet their needs and expectations. Keeping the building up-to-date will maintain the civic pride for this City of London asset. Not proceeding with this project will result in: Increased Maintenance Costs/Service Disruption; Loss of Potential Leased Space Revenue; and Loss of Potential Increased Meeting Room Revenue. It could also result in decreased customer satisfaction and usage. Research about public spaces, including libraries, and LPL s past experience (late 1900s) with having outdated or run-down facilities show that usage will likely begin to decrease if the space, services (e.g. technology) and physical amenities (including furniture) are not revitalized. Project Scope Scope of Work The Central Library Revitalization Project will include 4 components: Service innovation; Lifecycle renewal; Minor structural changes to accommodate space design and building renewal; and Lifecycle replacement of furniture and equipment. Financial Scope The total project is estimated at $3,420,000. Of this, LPL currently has $900,000 designated for the Central Library in its trust funds. The balance required is $2,020,000. $500,000 in technology updates will be funded through capital project RC3294. To develop costing, Library staff did a high-level needs identification for each of the scope of work components and obtained preliminary quotes to develop the projected costs. As is usual for such a project, there will be a detailed costing process as part of the project management and procurement of goods and services. Community and Staff Engagement LPL received thousands of ideas and suggestions from the public, our partners and other stakeholders and Library employees during the 2014 strategic planning process.

4 The input is consistent with the previous input and research findings in terms of public and staff expectations related to Library space. Of these, there were many ideas and suggestions about specific services and programs, spaces and spaces, collections, technology, furniture and ambiance. Please see Appendix 1: 2013 Strategic Planning Community Survey Public Ideas and Suggestions for Central Library. Moving forward in the project, LPL will also undertake a targeted input process relating to individual service components of the revitalization. NEXT STEPS Once approved, Library Administration will submit the Central Library Revitalization Business Case and budget request to the City of London to be considered in the 2015 budget approval process.

5 Appendix 1: 2013 Strategic Planning Community Survey Public Ideas and Suggestions for Central Library Services & Programs Interactive social media learning...hands on for kids. In-library demonstrations of arts and crafts and have them located in the same area you would find the books. More social experiences. Room for seniors...art...storytelling. An impromptu space that could offer a number of daily musical performances. Job centre. City Hall question desk, provincial and federal inquiry offices. Cultural diversity space. Spaces and Places More free meeting rooms. More quiet spaces. Make display and meeting space free for cultural, arts and crafts, community groups on a rotating basis. Maker space/ new technology programs. Study spaces for individuals and groups with outlets for laptops, etc.; more study rooms. More quiet reading nooks with comfortable seating for 1-2 people; more quiet lounge reading areas. Co-working areas. More spaces for informal meetings/group work where we can talk - seem to always be full or quiet areas. Film viewing rooms. The "music rooms" are not soundproof enough to actually play music in them (the keyboards provided are for use with headphones). A space where music could be practiced would be nice. Area for artful expression, like painting, drawing, framing and scrapbooking. Breastfeeding rooms. Sound proof rooms. Reading room café. Separate room for art exhibitions and sales. Theatre rehearsal spaces. A room for drafting with waist high tables. Social innovation space. More reference desks. Spaces that you can do stuff in. Places where you can build and create. Collections Computerize material in London Room. Booth for listening/sampling a music CD prior to signing out.

6 Technology Digital media lab. Develop a Maker /Hacker Space. Teleconferencing and videoconferencing facilities. PC Gaming Rooms. A device recharge station/internet bar. More outlets for those using personal computers. Places to see new technology. 3D Printing. Furniture Cushioned, high-adjustable computer desk chairs at tables at which laptops are often used. It can be very uncomfortable to work from the wooden chairs for a full day..the wooden chairs are attractive next to the big tables, but not very functional or ergonomic when working with a laptop for extended periods. The corner tables on the third floor by the window (2) are very conducive to work. The chairs (which are adjustable) are comfy. It would be nice if there were more tables/chair combos like that. Wired study carrels. More lounge chairs and couches, comfy places to sit. More comfortable seating in meeting rooms. Ambiance and Aesthetics Improve the decor & ambience of the library. Large fish tank or aquarium. Very relaxing to watch. Wall gardens w/trickling water and natural light. Green spaces/indoor gardens. A centralized atrium of some type with foliage, trees, bushes, a fountain or running water, birds chirping. More art and gardens... maybe a waterfall. Anything to make it more relaxing Wayfinding: Better signage for what is available to use.

7 Service: LIBRARY SERVICES Initiative: Central Library Revitalization Plan Financial Implications ($000) 2015 Business Case Budget Type Capital Budget Incr/(Decr) Operating Budget Incr/(Decr) Change to Gross Expenditure $2,020 Change to Non- Property Tax Supported Revenue Net Change to Property Tax Levy 2015 Tax Levy Impact % Incremental Net Change Future Years $ 2016 Incremental Net Change Future Years $ 2017 Incremental Net Change Future Years $ 2018 Ten Year Impact (if funding not returned) Staffing Implications # of FTs Impacted #FTEs Impacted $ FTE Description N/A Strategic Investments Full Capital Cost Municipal Portion 2014 $ Impact 3,420 2,520 Estimated Annual Tax Levy % Impact

8 Background In 2002, London Public Library opened a new and expanded state-of-the art Central Library in downtown London. The Library was one of three significant City of London Millennium Plan projects designed to redevelop the downtown. It was considered a best practice for service innovation and accessible design across North America and has served as a model for many other communities. The cost of the Central Library project was $27 million (The Library contributed over $900,000 through fund development). The Library purchased and renovated the former Hudson Bay building bringing public space onto Dundas Street. The Library s Hudson Bay Passageway, has served as a connector between Dundas Street and the many tenants of the Citi Centre Plaza (formerly the Galleria London). With an attendance of over 1,000,000 visitors per year (with a total of 13,157,302 since opening day), the Central Library is a popular destination for people from across the City, serves as a branch library for residents of the downtown and is the Library s corporate head office. Welcoming and free to all Londoners, the Central Library contributes to the rich culture and diversity of the downtown. Cultural events at the Library (and in the 380 seat Wolf Performance Hall) are part of the suite of cultural programming in the downtown. It also offers unique services (e.g. Ivey Family London Room) and programs that bring out-of-town visitors supporting London s tourism. Central Library users, visitors and staff also boost the downtown economy through their spending at local stores and restaurants. Thus, the Library is a huge contributor to the state of the downtown. This popular and highly used destination is in need of revitalization because of the: Age of the building and lifecycle/code requirements of key building components, such as the escalators. As the escalators are approximately 25 years old, they will require modernization as components become obsolete. Review and analysis of the escalators was done as part of the Energy and Asset Management Study undertaken by Ameresco for LPL. With changing legislation, requirements for escalator management will become even more stringent and costly. Ameresco has identified an opportunity to remove the escalators and replace them with stairs which would save approximately $600,000 over a 10 year period ($360,000 in capital costs and approximately $20,000 annually in operating costs.) Potential for leasing and renting out additional space as identified by PwC as part of the City of London review in order to generate additional operating revenues at the Central Library. Space redesign and capital improvements were identified in order to implement the PwC recommendations. Potential additional revenues were projected by PwC to range from $85,000 to $255,000 annually, based on the ability to create additional leasable space. The PwC audit also identified opportunities to increase meeting room rental revenue at Central. This will require a capital investment in order to upgrade the meeting rooms and to create the potential to add additional meeting space.

9 Lifecycle requirements of flooring, bathrooms and other building components and furniture and equipment resulting from the age and impact of sustained, high usage (13,157,302 users since August 2002); Need to keep public services offered in the building relevant and up-to-date as we heard from the public through the significant community consultation and learned from in-depth research about best practices for public spaces in international livable cities that LPL did as part of its Strategic Plan: Library Space is Community Place; In order to determine the required scope of the revitalization, some preliminary costing has been done. The scope of the project is: minor structural changes; new escalators or stairs, to replace the existing escalators, lifecycle renewal; replacement of furniture and equipment; and service innovation. The total project is estimated at $3,420,000. $500,000 in technology updates will be funded through the existing capital project RC3294. LPL currently has $900,000 designated for the Central Library in its trust funds. Donated funds will be used for value added improvements such as service innovations and specialized furniture and equipment such as immersive pods and social media workstations. The balance required for this project is $2,020,000. Performance Measures Impact Given LPL past experience in revitalizing space across its 16 locations, it is projected that revitalization will increase usage. Risk of not revitalizing Central Library: Research about public spaces, including libraries, and LPL s past experience (late 1900s) with having outdated or run-down facilities show that usage will likely begin to decrease if the space, services (e.g. technology) and physical amenities (including furniture) are not revitalized. Library patrons move to other locations putting pressure on limited capacity at other branches.

10 Metric 2013 Usage 5 Year Usage Attendance 1,392,577 5,506,894 Reference Questions Answered 291,720 1,486,550 Materials Borrowed 1,539,724 6,337,676 Materials used in-house 217,360 1,296,074 Computer Usage 338,249 1,285,423 Wireless Usage 61, ,040 ( only) Program/Event Attendance 45, ,808 Impacts a) Community The revitalization will ensure that the public will continue to access, use and enjoy relevant, accessible, high quality and highly valued library services and services delivered by library partners at the Central Library. It will also have a positive impact on Library partners who deliver services and programs in Central Library space and LPL capacity to attract and retain tenants. As it developed its new Strategic Plan, London Public Library (LPL) identified the theme Library Space is Community Place. Extensive research was conducted that focused on current and future trends and best practices in public spaces and in libraries, in particular. Several sub-themes emerged and helped to identify key factors to consider when planning a much needed renovation of the Central Library.

11 With the accelerated growth of technology, digitization, 24/7 connectedness and the amazing speed at which information flows from one point to another, library users need and expect more from their local public library. The enduring values of the Public Library remain constant free and equitable access, gateways to knowledge, gathering spaces, intellectual freedom and privacy while the expectations and vehicles for delivering service are rapidly changing. Still a respected place for leisure, reading and community, 21 st century users are also looking for libraries that offer innovative and easily accessible virtual spaces, alongside beautiful, creative and dynamic physical spaces. Careful design and planning of these spaces is important for their success with the public, but so, too, is the need for community input. b) Community Engagement Significant community engagement was undertaken through the use of Street Teams, Stakeholder Labs, a Community Camp and an online Survey (6,871 responses). Comments from Central Library users in the 2012 Customer Satisfaction Survey revealed that the London community values the Central Library; overall customer satisfaction with Library services was 97.9% and 96.3% indicated they believed they received value for their tax dollars. Comments included, for example: Absolutely a must for downtown London. The library is the best resource in the city - well worth keeping up. Central should be open Sundays in summer to assist the growth downtown. Strongly believe in Library, the services it provides and the ability it has to adapt, change and progress overtime to provide patrons relevant, meaningful & high quality programs, services. Central Library has been and is the heart of Londoners and for me it's my home. Wonderful central library building. Please re-stuff or change the uncomfortable "soft" chairs. They are really tatty in some cases! Since moving back to London to retire I enjoy and utilize the library a lot. It is my refuge for knowledge, entertainment, social activities. The Library is a central gathering for all ages. It is a vital asset for the continued revitalization of the downtown core to bring people downtown to their facility. LPL received thousands of ideas and suggestions during the 2014 strategic planning process. The input is consistent with the previous input and research findings in terms of public expectations related to Library space.

12 There were many general comments such as: I think the Central location is one of the best locations for a downtown library and one of the best and most progressive libraries in Canada. I welcome new changes. Innovative design, local art, interesting furniture, a subtle, if I may, promotion of the importance of art and culture and words and all that is beautiful about life and cannot necessarily be found in big box bookstores, e-readers or private reading spaces. We need incentives to get off the sofas and our individual castles to make more use of our public spaces. Learning to share these spaces goes a long way in teaching us to live/work/appreciate each other. I reiterate what I say before, but I think public spaces are key to a successful, healthy community. There were also many, many specific ideas and suggestions about services and programs; spaces and spaces, collections, technology, furniture and ambiance. c) Other City of London Services LPL works in partnership with the City of London and several of its boards and commissions. Much of the partnership collaboration and contribution is undertaken through the Central Library, including for example: Information Services and Opportunities for Civic Participation: LPL provides venues and promotes opportunities for citizen input into Strategic Initiatives: e.g. City of London surveys/ focus groups e.g. Citizen Panel, ReTHINK London; LPL provides reports of initiatives and CoL refers public to LPL for access to such reports. LPL distributes City publications, such as bike maps and Spectrum [September 2013, LPL distributed 75,000 copies of Spectrum via library locations]. Technology: City departments, Boards and Commissions refer clients to LPL to use computers and access content such as government online forms to accessing services such as Ontario Works and other social supports. Central library computers are in high-demand. Risks Not proceeding with this project will result in: Increased Maintenance Costs/Service Disruption: The escalators are aging and costs are rising. An opportunity would be lost to replace the escalators and potentially avoid a 10 year cost of over $600,000.

13 Loss of Potential Leased Space Revenue: annual revenues of approximately $85,000 to $255,000, as identified by PwC, could not be realized. Loss of Potential Increased Meeting Room Revenue: annual revenues of approximately $85,000 to $255,000, as identified by PwC, could not be realized. Decreased Attendance and Usage: Central Library is a key anchor in the downtown and a contributor to the knowledge and literacy of its citizens, the City s economy, and its culture. LPL may not be as relevant to users in the future if it does not innovate and provide Library services in new and different ways. Modifications to building design are essential in order to maximize each user s experience. Proceeding with this project will result in: Customer Satisfaction: Patrons and community partners spent considerable time giving LPL feedback regarding the future direction of the Library and they will be satisfied that their input was listened to and implemented to meet their needs and expectations. Keeping the building up-to-date will maintain the civic pride for this City of London asset.