Renewed deal could end parking dispute
Some councillors aren't thrilled about extending an agreement with Precise ParkLink, the pay-and-display parking company that launched a legal fight against the city.
The city and Precise have a 10year deal scheduled to expire on Oct. 31, 2021, but the two sides have been in a dispute over the way a revenue guarantee to the city was being calculated. The dispute started in July 2014 and they didn't reach a resolution until September 2019.
The rocky relationship didn't stop city council's transportation committee on Wednesday from endorsing a five-year contract extension recommended by staff and agreeing with a plan to hire two full-time staff, at a combined cost of $200,000 annually, to manage the contract.
Extending the contract is part of the city's proposed arrangement with Precise to end the legal skirmish.
Councillors heard it's the best option available to stop the city's legal costs tied to the dispute, wipe out the risk associated with an arbitration decision, keep the pay-and-display equipment in tip-top condition and take the heat off the city to immediately find another provider.
The city could simply go monthto-month after the contract expires next year, but Precise's legal case wouldn't go away, councillors heard.
“I understand why you're recommending it, but I don't love it because we've had a precarious relationship with this group and we're recommending a five-year extension,” Coun. Diane Deans said.
The proposed extension, however, received a bit of love from Coun. Jeff Leiper.
“Very rarely do we love things that are pragmatic,” Leiper said.
Coun. Tim Tierney, chair of the committee, said the relationship between the city and Precise “went sour” for a number of years but there was a willingness by the city's parking staff to end the strife. The proposed extension is “good news for the city and the taxpayer,” Tierney said.
Precise approached the city in 2007 with an unsolicited proposal to throw technology at the city's management of on-street parking. It led to council agreeing to contract the Toronto-based company.
The original contract guaranteed a 25-per-cent increase in onstreet parking revenue for the city, compared to the old coin meters. The city has been responsible for making payments for the pay machines, with an option to retain or return the equipment at the end of the contract period.
There are 720 machines installed in the city.
Despite the revenue guarantee, the city didn't see the amount of parking funds shoot up, forcing Precise to pay the city $9.7 million over the first five years of the contract and cover much of the cost of the parking equipment.
Precise didn't like how the city wrote up the methodology for the revenue guarantee, leading to the dispute.
The company's main contention wasn't spelled out, but under the proposed contract extension, the revenue guarantee will take into account parking revenue impacted by construction work and other projects.
When it comes to resolving the dispute involving the existing 10year agreement, the city is agreeing to pay back $680,000 to the company and add an extra $105,000 in payments for the equipment, with Precise still paying most of the equipment costs.
The city hired two consultants in considering a contract extension. One consultant, in reviewing the market, agreed the extension was a good move for the city, and the other consultant was satisfied that the city has the flexibility if there are changes in parking-management technology.
While a resolution on the legal fight was finalized in September 2019, the city's area manager for parking, Scott Caldwell, said the COVID-19 pandemic's impact to parking revenue won't provide an out for Precise in the revenue guarantee.
Coun. Shawn Menard said the city should be considering putting the parking contract up for competition and include an in-house option.
Bringing paid-parking management back in-house could be an option when the Precise extension is over in 2026, Caldwell said.
Council next Wednesday will vote on the committee's recommendation to extend the contract with Precise.