HomeMy WebLinkAboutINS-13-010 - Rotary Centre Parking Lot Management AgreementREPORT TO:Community and Infrastructure Services Committee
DATE OF MEETING:
January 28, 2013
SUBMITTED BY: Ken Carmichael, Interim Director of Transportation,
(519) 741-2372
PREPARED BY:
Paul A. McCormick, Manager, Parking Enterprise,
(519) 741-3400, ext. 3155
WARD(S) INVOLVED: Ward 9
DATE OF REPORT: January 22, 2013
REPORT NO.: INS-13-010
SUBJECT:
ROTARY CENTRE PARKING LOT MANAGEMENT
AGREEMENT
RECOMMENDATION:
1. That Council enter into a new extension agreement with the Waterloo Region
District School Board to operate public parking at 828 King St. W.; and further,
2. That Council enter into an agreement with the Grand River Hospital to operate
public parking at 850 King Street West; and further,
3. That the approved hourly rate for these locations as of January 1, 2013 be
continued at $2.65 per hour with a $13.25 daily maximum, Monday to Saturday on
a 24 hour basis and on Sunday from noon until midnight and a monthly rate of
$127.30 per month; and further,
4. That the Mayor and Clerk be authorized to execute a Management Agreement
satisfactory to the City Solicitor with both the Waterloo Region District School
Board and Grand River Hospital.
BACKGROUND:
The City of Kitchener has had a long standing business relationship with the Waterloo Regional
District School Board (WRDSB) in the management of the school board owned parking lots
(Green Street Lot 12 and Rotary Street Lot 13) located in the vicinity of Grand River Hospital,
KCI High School and Don McLaren Arena. Each lot has its own separate parking management
agreement.
In August 2000, Council approved the recommendation that the City entered into a five (5) year
management agreement with the WRDSB for the operation of Lot 13 Rotary Centre which is the
surface lot on the site of the former Rotary Centre at 828 King Street West across from the
Grand River Hospital. At that time, the Rotary Centre lot was developed in partnership with
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WRDSB and the City to create 156 surface spaces to provide public parking for the various
uses in the area.
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The initial management agreement dated March 19, 2001 expired on June 30, 2005. A five
year renewal agreement expired June 30, 2010 but has since been honoured by both parties.
In conjunction with the redevelopment and operation of Lot 12 Green Street as a public surface
parking lot across the street adjacent to KCI and Don McLaren Arena, WRDSB would like to
continue its parking arrangement for both sites with the City. Approval for the new management
agreement with the WRDSB with respect to the redevelopment and operation of Lot 12 Green
Street was approved by Council on May 17, 2010.
A new ten year management agreement for the Rotary Centre surface parking lot is now
required.
REPORT:
Parking demand continues to be strong in this area of the City with KCI, Grand River Hospital,
Don McLaren Arena, Sunlife and other uses in the immediate area all competing for a limited
number of spaces.
The Rotary Centre parking lot offers both hourly and monthly spaces.
In conjunction with the Lot 12 Green Street redevelopment, the WRDSB has approached the
City, subject to Council approval, with a ten year term agreement to continue to manage the
Rotary Centre parking lot on their behalf. The terms of the new agreement is slightly different
from the previous agreement whereby both parties would share a 50:50 split of net revenue.
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The terms of this new agreement will be consistent with the Lot 12 Green Street agreement that
is still to be finalized.
The previous 5 year management agreement with WRDSB provided for an annual amount of
$40,000 per year to be paid by the City to WRDSB. There have been no inflationary increases
to the fee structure paid to WRDSB for over 10 years. The City was responsible for all
operating and maintenance costs such as property taxes and overhead expenses, however the
City received all net revenue after the annual fee and operating expenses.
The new agreement splits net revenue 50:50. Net revenue includes all gross revenue less all
operating expenses including property taxes and a proportionate share of Parking Enterprise’s
overhead and maintenance costs.
In reviewing rates charged for parking at the Hospital, it was recommended that a rate of $2.65
per hour with a $13.25 daily maximum and a monthly rate of $127.30 be applied to these sites
and was approved in December 2012. The hourly rate is less than what is charged at the
Hospital, but reflects a greater walking distance to the major parking generator.
FINANCIAL IMPLICATIONS:
The current estimate of net revenue for this facility is approximately $140,000 per year (156
spaces). Under the proposed arrangement, both parties will share in a 50:50 split of net
revenue after all operating costs. In addition to half of the above amount, the City will also
recoup approximately $62,000 in overhead and administration expenses from the Parking
Enterprise bringing the total net revenue to around $132,000 ($140,000 x 50% + $62,000 =
$132,000).
The new contract terms provides a lower income for the City than the previous arrangement by
approximately $30,000 per annum. Although all net revenues are shared between the City and
WRDSB, net revenue is reduced by the additional operating expenses such as property taxes
and Parking Enterprise administration and overhead costs that were previously paid in full by
the City.
ACKNOWLEDGED BY:
Jim Witmer, Interim Deputy CAO
Infrastructure Services Department
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