ADMINISTRATIVE REPORT

                                           Date: June 18, 1997
                                           Dept. File No. H193-35
                                           CC File No.  5652

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Parking Charges - City-Owned Off-Street Lots


   RECOMMENDATION

        THAT the Parking Corporation of Vancouver (VPC) be authorized to
        increase the parking charge levied to users not paying the required
        parking fee and for other parking infractions in City-owned,
        off-street parking facilities to a flat rate charge of $15.00.

   CITY MANAGER'S COMMENTS

        The City Manager notes that street parking fines are $25.00, and
        most off-street lots exceed this charge.  The City Manager submits
        a $25.00 charge as an alternative, to be phased in over a year.

   GENERAL MANAGERS  COMMENTS

        The General Managers of Engineering Services and Corporate Services
        RECOMMEND approval of the foregoing.

   COUNCIL POLICY

   There is no specific policy related to this matter.


   PURPOSE

   The purpose of this report is to request Council approval to increase
   the parking charges levied to users not paying the required parking fee
   and for other parking infractions in City-owned off-street parking
   facilities.

   BACKGROUND

   The current City practice for parking charges levied to users not paying
   the required fee or for parking infractions in VPC-operated off-street
   parking facilities is to charge the daily maximum rate for the lot,
   which on average is approximately $2.50.  These are usually smaller
   surface lots, as large commercial garages have parking attendants during
   peak use periods, where fees are paid on exit.  However, this charge
   would also apply to some of the large garages which revert to
   pay-and-display controls in the evenings and on weekends.  This courtesy
   envelope policy is not a punitive enforcement practice, but a means of
   billing patrons for time not paid.

   At its meeting on February 4, 1997, Council requested staff to report
   back and clarify the issue of potential revenue increases through
   enforcement in City-owned off-street parking facilities.  VPC has made a
   proposal to modify the current courtesy envelope system to a flat rate
   charge of $10.00.

   DISCUSSION

   Staff have reviewed VPC's request to increase the charge levied on
   vehicles where the required parking fee has not been paid, by applying a
   flat rate charge of $10.00.  Currently, the VPC manages approximately
   7,400 parking stalls for the City, which are controlled by
   pay-and-display, parking attendants and a combination of the two
   controls.  The proposed parking charge increase would primarily impact
   the unattended pay-and-display parking lots. 

   Past City policy has been to charge a lesser charge related to unpaid
   time,  for off-street parking than for on-street parking.  The purpose
   of this policy was  to encourage longer-term patrons to utilize
   off-street facilities rather than our on-street resources where
   shorter-term, high turnover spaces are more desirable.  In addition, the
   courtesy envelope system was more a customer service and was used in
   recognition of the fact that a significant portion of the unattended
   lots are serving local residential and commercial needs.

   Staff have reviewed this issue and support VPC's proposal to increase
   the charge.  However, staff recommend that the parking charge be
   increased to a flat rate of $15.00.  By comparison, City on-street
   parking fines were recently increased in April 1997, from $20.00 to
   $25.00 for expired meter parking.  The private sector typically levies
   an initial charge of approximately $27.00, which increases to $45.00. 
   The increase to $15.00 represents a reasonable increment for our
   off-street parking facilities.  In discussions with the VPC, they have
   suggested that it may be better to phase in the $15.00 charge. 
   Specifically, they suggest that a $10.00 charge can be levied in 1997,
   increasing to $15.00 in 1998.  This can also be implemented should
   Council wish to approve this request.  

   Staff note that the VPC would be sensitive to areas serving resident
   needs (False Creek South), and not engage in aggressive ticketing
   without proper notification of the community.

   FINANCIAL IMPLICATIONS

   In 1996, the VPC issued 11,800 tickets which resulted in gross  revenues
   of $17,800.  Increasing the charges as recommended might result in a
   lower rate of voluntary payment, but should increase the level of
   compliance in our pay and display lots.   

   At the $10.00 flat-rate fee level, VPC has projected net earnings to the
   City of $136,000, which includes the additional 4-5 percent increment in
   pay-and-display revenues resulting from this proposed enforcement
   charge.  The additional $5.00 increase recommended by staff will result
   in approximately $30,000 in additional revenues annually.

   CONCLUSION

   Staff support VPC's proposal to change the current courtesy envelope
   system, but recommend that the flat rate charge be increased to $15.00,
   instead of $10.00.  Staff request approval from Council to implement
   this change.



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