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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