U/B-1(i)
ADMINISTRATIVE REPORT
Date: June 7, 1995
TO: Vancouver City Council
FROM: General Manager of Engineering Services
SUBJECT: Operation of City Owned Off-Street Parking Facilities
RECOMMENDATION
THAT Council authorize the General Manager of Engineering Services
and the Director of Legal Services to enter into an updated
operating agreement for the City's off-street parking facilities
consolidating, where possible, those facilities now operated by the
Parking Corporation of Vancouver.
COUNCIL POLICY
There is no Council policy directly applicable to this item.
PURPOSE
The purpose of this report is to request Council authorization for the
General Manager of Engineering Services and the Director of Legal
Services to enter into a revised agreement for the operation of many of
the City's off-street parking facilities.
BACKGROUND
In the late 1940's, the Downtown business community became concerned
with the development of major suburban shopping malls such as Park Royal
which were to include unlimited free parking. In order to maintain a
viable business environment in the Downtown, the businesses formed the
Downtown Business Association (DBA). In 1947, Council established the
Downtown Parking Committee which was followed by a local improvement by-
law to finance the purchase of land and construction of parking lots.
In 1948, the Downtown Parking Corporation (DPC) was incorporated to
effect this by-law.
In 1949 under the new by-law, Council borrowed one million dollars which
was used to finance the purchase of 8 properties for parking. These
sites were developed and operated for parking by the DPC.
Today, the City is still very active with the businesses and merchants
in the Downtown. The Downtown Parking Corporation is still the City's
parking operator (under new name of Parking Corporation of Vancouver
(VPC)). The VPC operates the majority of the City's off-street parking
facilities, some under contract, some under letter agreement and others
without written agreements, but on terms similar to existing agreements.
The present master agreement was entered into in 1983 with a term to
expire in 2002.
DISCUSSION
The significant changes in the agreement will include City payment of
taxes, cancellation of individual lots, extension of term, and
consolidation of agreements.
With an increasing number of facilities, many operated without formal
agreements, it is appropriate to consolidate, where possible, all
agreements into one master operating agreement. Several facilities,
such as Library Square and Pacific Centre, are joint ventures with
partial City ownership or leases. These facilities have special
conditions and will continue to be operated under separate agreements.
Highlights of the revised agreement are:
- existing agreements are consolidated into one document which will
standardize and clarify operating conditions;
- the term of the revised agreement is 20 years expiring in 2015 with
automatic renewal if not cancelled;
- the agreement contains provisions for cancellation of both the
entire agreement and individual lots;
- all net profits from all sources are paid by VPC to the City;
- budgeting and reporting are consolidated under the General Manager
of Engineering Services in consultation with the General Manager of
Corporate Services. This will clarify roles and ensure parking
operator accountability as requested by our current operator;
- establishment of contract parking provisions and hours of operation
are the responsibility of the General Manager of Engineering
Services;
- establishment of parking rates are the responsibility of the
General Manager of Engineering Services and are reported to Council
as necessary;
- the parking operator is responsible for all maintenance and
financial accounting;
- the parking operator is responsible for budget requested capital
improvements up to $10,000;
- the City is responsible for payment of property taxes or payment in
lieu of taxes; and
- flexibility is provided in the agreement for the addition or
deletion of sites;
Currently over 95% of City Council controlled parking resources are
managed by Engineering. These responsibilities include parking studies,
parking issues related to the Zoning & Development By-law, planning,
operation and enforcement of on-street parking, and planning,
development and management of off-street facilities. It is efficient
and effective to have all of these facets within one group because of
their inter-relationship with the Transportation Plan.
There are currently three areas of City parking that are not managed
directly by Engineering, but with which Engineering does have some
liaison. These are:
- the Theatre Board operates 248 spaces at the Queen Elizabeth
Theatre. Council, after construction costs were repaid, assigned
future operation and revenue of these spaces to the Theatre Board;
- Real Estate Services manages several surface lots (approximately
500 stalls) on holding properties. Several larger sites such as
the former Greyhound site have been developed directly with
Engineering and are operated by the Parking Corp (VPC)
(approximately 700 stalls); and
- the Park Board controls the parking resources at community centres
and in public parks (2,879 stalls). An exception is the 150 stall
West End Community Centre which is being updated by Engineering as
part of the West End parking review.
The VPC would like to exclusively control all of these facilities.
Currently the VPC operates 7,151 or 60% of the 11,919 municipal off-
street stalls controlled by Engineering, Real Estate Services, Civic
Theatres and the Park Board. It is their premise that the consolidation
of all off-street parking will result in higher standards of public
service, greater accountability and increased revenues.
The VPC may bid on lot operations such as the Park Board. However, they
were not successful this year. It has been our practice to recommend
VPC to operate lots developed with Parking Sites Reserve funds, as it
usually reduces overhead costs, and provides greater consistency in the
operation with one operating company.
Excluding Park Board facilities, the City currently controls
approximately 8,500 off-street parking spaces. Of these, the VPC
currently operates approximately 7,200 (84%). It is not recommended to
give VPC exclusive operational control, as Park Board lots are usually
put to public offer. The Real Estate Services sites are small lots on
holding properties and do not form part of the long-term parking supply.
All profits from these sites still come to the City. Park Board
decisions are controlled by the Board separate from Council. Their
parking is facility oriented and not part of an integrated
Transportation Plan.
The West End parking garage is being updated and further improvements
are being considered. Council will receive a separate report on the
proposed capital improvements, at which time lot operation will be
reviewed.
CONCLUSION
The addition of several new parking facilities makes it important to
clarify roles and responsibilities and to consolidate most of the
parking operations into one standardized agreement. Some facilities
will continue to be governed by separate agreements. No change is
recommended for existing facilities under Park Board, Real Estate
Services and Civic Theatre control.
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