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. * * * * *