HomeMy WebLinkAboutINS-18-013 - Community CarShareREPORT TO: Council
DATE OF MEETING: February 26, 2018
SUBMITTED BY: Ken Carmichael, Interim Director of Transportation Services,
519-741-2200, ext. 7372
PREPARED BY: Danny Pimentel, Active Transportation Planning Project
Manager, 519-741-2200, ext. 7371
WARD(S) INVOLVED: All wards
DATEOF REPORT: February 1, 2018
REPORT NO.: INS-18-013
SUBJECT:Community CarShare (The People’s Car Co-operative
Incorporated)
___________________________________________________________________________
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute the necessary agreements
with Communauto/VRTUCAR for community car sharing services including;
a new parking location agreement and;
the assignment of Community CarShare’s outstanding line of credit debt to
Communauto/VIRTUCAR,
subject to the satisfaction of the City Solicitor.
BACKGROUND:
Community CarShare was established in 1998 as Ontario’s first carsharing
organization. Community CarShare provides access to shared vehicles on demand that
ultimately enables its membership to choose to forgo vehicle ownership and instead
support more sustainable modes of transportation. Community CarShare has
traditionally been a not-for-profit car sharing co-operative with community based
operations in Kitchener, Waterloo, Hamilton, Elmira, Guelph and London.
The City of Kitchener currently has a corporate membership with Community CarShare.
Furthermore, 33 employees are currently registered to access car share vehicles for
City of Kitchener business use.
The City of Kitchener currently provides parking spaces within municipal parking lots
and at select municipal facilities to Community CarShare free of charge as part of a
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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parking location agreement that was negotiated between both parties. The following is a
list of City facilities that provide dedicated Community CarShare parking spaces:
200 King Street West (City Hall) - 3 spaces
131 Goodrich Drive (KOF) - Quantum Station
400 East Avenue (The Aud) - Quantum Station
72 Wilson Avenue (Kingsdale Community Centre) - Quantum Station
150 Pioneer Drive (Doon Pioneer Park Community Centre)
100 Rittenhouse Road (Country Hills Community Centre)
222 Chandler Drive (Chandler Mowat Community Centre)
1700 Queens Boulevard (Forest Heights Community Centre)
10 Chopin Drive (Victoria Hills Community Centre)
216 Mill Street (Mill Courtland Community Centre)
1405 King Street East (Rockway Community Centre)
600 Heritage Drive (Lyle Hallman Pool)
350 Margaret Avenue (Breithaupt Centre)
15 Charles Street West - Lot 22 (Transit Terminal)*
*This space was dedicated outside of the current legal agreement and therefore
Community CarShare has been paying monthly parking fees associated with this space
since 2003.
Throughout the years, Community CarShare has not been able to break even and has
determined that their not-for-profit business model is unsustainable. As a result,
members of Community CarShare voted on November 22, 2017, to dissolve the
cooperative and sell all assets to Communauto/VRTUCAR. Communauto/VRTUCAR is
a “for profit” car sharing company that operates under a very different and successful
business model; currently in operation in Montreal, Quebec City, Sherbrooke, Gatineau,
Ottawa, Kingston, Halifax, and Paris, France. Communauto/VRTUCAR intends to
provide a similar service as Community CarShare, albeit with a different pricing model.
As a result of the sale of Community CarShare to Communauto/VRTUCAR, the existing
parking location agreement is no longer valid and a new agreement is required for the
continuation of car share operation in Kitchener. This new agreement will require that
Communauto/VRTUCAR pay fair market prices for all existing parking spaces currently
occupied by Community CarShare. It is worth noting that Community CarShare was
only granted exclusive use of these parking spaces at no cost as a result of their not-for-
profit status.
It should be noted that the City of Kitchener also has an existing car share parking
agreement in place with General Motors of Canada Company (GM). Through report No.
INS-16-097, GM was granted the exclusive use of one parking space at 28 Water Street
South (Lot 3) and agreed to pay 100% of the parking user fee rate and all related
signage costs.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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REPORT:
Community CarShare has been in operation within the City of Kitchener since 1998, but
it wasn’t until 2002 that they approached the City for financial assistance to continue
their operation. At that time, Council granted Community CarShare (then known as
Grand River CarShare) a line of credit in the amount of $ 30,000. Details of the line of
credit approved at that time are as follows:
An interest rate of 10%
Full payment required by April 30, 2009.
It is worth noting that Community CarShare also partnered with and retained lines of
credit from the City of Waterloo and the Region of Waterloo. The expectation was that
with financial assistance provided by all parties to Community CarShare that they would
operate under a self-sustaining business within three years.
In March 2009, Council agreed to extend the repayment clause on Community
CarShare’s Line of Credit to April 30, 2014. The City of Waterloo and the Region of
Waterloo also entered into similar financial arrangements.
In April 2014, Community CarShare requested that the existing line of credit increase to
$50,000 and that full payment requirement be extended to April 30, 2019.Through
consideration of staff report, FCS-14-053 - CarShare Line of Credit, Council made the
following motion:
That the credit limit be maintained at$ 30, 000;
That the term of the line of credit be for five years (expires April 30, 2019);
That the interest rate on the Line of Credit be set at the average interest rate of
the City's long term investment portfolio to be adjusted yearly;
That CarShare provide yearly audited statements to the City.
Community CarShare and VRTUCAR
In 2017, Community CarShare was approached by Communauto/VRTUCAR with a
letter of intent to purchase the cooperative. Because Community CarShare recognizes
that they cannot continue to fiscally operate under their current “not-for-profit” model,
they have agreed to negotiate terms and sell their operation to Communauto/VRTUCAR
accordingly.
As a result of their continued negotiation, Community CarShare has asked that the
Cities of Kitchener, Cambridge, Waterloo and the Region of Waterloo provide a letter of
intent (Appendix A) to Community CarShare stating they will enter into an agreement
with Communauot/VRTUCAR that would renew/extend the existing line of credit and
parking agreements.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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Carshare has regional active transportation benefits and therefore ensuring its
preservation within the Region warrants consideration. It is recommended that staff
begin negotiations with Communauto/VRTUCAR. These negotiations will include:
That the outstanding line of credit balance be reconciled and paid in full by the
original April 30, 2019 deadline.
That fair market value is determined for all dedicated parking spaces within
municipal lots and facilities.
That Communauto/VRTUCAR agree to pay the identified market value (by way
of monthly parking payment)
Should the City Kitchener and Communauto/VRTUCAR fail to come to an agreement
based on the above, then all car share spaces currently dedicated for the exclusive use
of Community CarShare will be removed.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
The purchase of Community CarShare by Communauto/VRTUCAR should result in
increased parking revenue. This revenue will be identified through the negotiation
process. Additionally, it is anticipated that the $30,000 line of credit will be repaid by
April 30, 2019.
COMMUNITY ENGAGEMENT:
City staff have met with representatives from Community CarShare, as well as
representatives from Cambridge, Waterloo and the Region of Waterloo.
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
ACKNOWLEDGED BY: Justin Readman, Interim Executive Director
Infrastructure Services Department
Attached:
Appendix A – City of Kitchener - Letter from Communauto/Vrtucar
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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Appendix A - City of Kitchener - Letter from Communauto/Vrtucar
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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