Report to: Development Services Committee                                    Report Date: May 8, 2007

 

 

SUBJECT:                          Town of Markham Parking Programme Update

PREPARED BY:               Meg West, extension 3791

 

 

 

RECOMMENDATION:

That the report entitled “Town of Markham Parking Programme” be received.

 

And that staff continue the on-street permit parking programme in existing areas and consider expanding the program on a case by case basis.

 

And that a Committee of Council be established to make recommendations to Council on matters relating to the Town’s Parking Programme including the operations of municipally owned or operated surface parking lot(s) and structure(s).

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

 

EXECUTIVE SUMMARY:

This report provides an update on the status of the six components of the Town of Markham Parking Programme.  The Programme includes the following:

 

1.              On-street permit parking;

2.              Private property paid parking;

3.              Town Owned and Town Leased Parking Lots;

4.              Payment-In-Lieu of Parking;

5.              Tax Increment Financing (TIF) zones; and

6.              On-street paid parking;

 

In addition, the report outlines three options for governance of a parking authority including a Municipal Service Board, a Municipal Corporation and a Committee of Council and recommends the Town establish a Committee of Council to oversee the Markham Parking Programme which includes continued implementation of the components listed above. 

 

Until a municipality has a significant inventory of municipally owned parking lots, including structures, or until it is financially or for other reasons appropriate to delegate this function to a municipal services board or corporation, a committee of council is the preferred option. 

 

 

FINANCIAL CONSIDERATIONS:

Not applicable

 

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

PURPOSE:

The purpose of this report is to provide Committee and Council with an update regarding parking initiatives in the Town of Markham.  It also sets out the next steps in Markham’s Parking Programme.

 

 

BACKGROUND:

In June 2002, Council endorsed the Markham Transportation Planning Study (MTPS) -2002, the Town’s transportation action plan to address Markham transportation needs and challenges in the short, medium and long term.  The Town’s Four Point Strategy, as outlined in the MPTS, includes initiatives in each of the areas of roads, transit, policy and education.  As part of delivering on the Four Point Strategy, the MTPS recognizes that the control of parking and parking supply is an integral component of promoting better land utilization and traffic management as well as promoting alternative forms of travel including transit, biking and walking.  The policy section of the MPTS also supports the creation of a parking governance model.  The expectation for a higher target of transit use and the achievement of compact urban form in certain areas of the Town focused the Town’s need to develop a parking strategy to help deliver the Town’s vision and objectives. The components of the parking programme include:

 

  1. On-street permit parking;
  2. Private property paid parking;
  3. Town Owned and Town Leased Parking Lots;
  4. Payment-In-Lieu of Parking;
  5. Tax Increment Financing (TIF) zones; and
  6. On-street paid parking;

 

In October 2006, staff made a presentation to Development Services Committee providing an update on the Markham Parking Programme and next steps in delivering the programme.

 

This report provides a further update on the components of the parking programme and makes recommendations regarding the on-street paid parking and Markham parking governance model.

 

 

OPTIONS/ DISCUSSION:

Markham Parking Governance Models

There has been discussion about the establishment of a Parking Authority for Markham for some time.  The City of Toronto has a Parking Authority which was established decades ago, under special legislation.  The City of North York had a parking authority, which was amalgamated with the City of Toronto.  Both of those jurisdictions had significant assets in the form of parking lots and structures, which were managed as for-profit entities, with boards to govern their operations, separate and distinct from their associated municipal governments.

 

A review was conducted to identify how other municipalities within Ontario and across Canada manage their parking programme.  Attached in Appendix 1 is a summary of the information gathered.  All the municipalities contacted, except the City of Toronto, incorporate the management of parking into a department of the municipality.  In addition, a Committee of Council is the governing body providing direction and decisions regarding parking in each of those municipalities.  The Committee could be comprised of elected officials only, providing the greatest measure of municipal control over parking assets or it could be made up of one or more elected officials and community stakeholders who provide advice to Council on the management of business and affairs of the parking operation. 

 

Generally speaking, the Parking Authority, as a separate and distinct for profit entity, has not been formed in most Ontario municipalities for the following reasons:

 

  • Rarely profitable without significant and mature inventory of paid parking spaces, therefore the advantage of a separate corporation in terms of revenue distribution never materialized
  • A more complex governance structure, not justified by the nominal assets controlled by the Authority
  • No tax or similar benefits to a corporate parking authority
  • Loss of municipal Council control with an appointed Board, typically comprised  of community stakeholders

 

If a corporate parking authority model is implemented, all decisions related to the management and operations of the Parking Authority rest with the appointed Board.  Council input would be limited to the number of Councillors appointed to the Board.

 

Parking Authority Options

  • Municipal Service Board (s. 194) – a municipality may give control and management of such services as it considers appropriate to a municipal service board, by delegating the powers and duties of the municipality to the board:
    • Minimum two members
    • Maximum four year terms, multiple terms permitted
    • Services which may be controlled by such a service board are now unrestricted under Bill 130. 

 

  • Municipal Corporation (s. 203) – a municipality may establish a corporation to undertake a system, service or thing that the municipality itself could provide.  A business case study is required before the corporation may be established and public consultation is required:

 

    • Revenues from such corporations can be tax exempt as long as 90% of the shares are owned by a municipality and 90% of the revenues are generated by activities carried on within that municipality.  
    • Restriction on this kind of corporation governing new facilities only has been removed by Bill 130.
    • Can be for-profit (and pay dividends to the municipality) or not-for-profit

 

·        Committee of Council – A Committee of Council would advise Council on the management of the business and affairs of the parking operation in municipal parking areas. As the Programme itself is comprised of a variety of initiatives including on-street permit parking, private property paid parking, Town owned and leased lots, payment-in-lieu of parking and on-street paid parking, the Committee structure provides the greatest flexibility for a single entity to oversee the development of the entire programme.

 

Until a municipality has a significant inventory of municipally owned parking lots, including structures, or until it is financially or for other reasons appropriate to delegate this function to a municipal services board or corporation, a committee of council is the preferred option. 

 

There are no tax advantages to either the municipal services board or corporation.  This option does not preclude consideration of an alternate governance structure, including either of a municipal services board or corporation when an appropriate inventory of such facilities is available, or when other reasons exist, for instance, a public/private partnership opportunity.

 

The components of the Markham Parking Programme are outlined below:

 

1.   On-Street Permit Parking

There are four areas within the Town where overnight parking is permitted by permit: (1) Angus Glen Community; (2) Cornell Community; (3) Inverlochy Boulevard; and (4) Tamarack Drive/West Borough.

 

  • The Angus Glen Community on-street permit parking is a pilot project.  One free permit is being granted to any resident who can prove they have more vehicles than parking spaces on their property.
  • In 2007, Town wide, 133 permits have been issued and of those, 38 have been issued at no charge.
  • The total revenue in 2007 from the permits is $5,495.00.
  • The average number of tickets issued nightly is 21.5.
  • As the Town proceeds to enforce the extended driveway by-law, the number of permitted areas and the number of permits will likely increase.

 

Staff recommends that the program continue in each of the existing areas and consider expanding the program to new areas on a case by case basis.

 

2.   Private Property Paid Parking

The Town has received requests by private property owners to amend the parking by-law to permit the introduction of paid parking on their private property.

 

 

Hilton Hotel

At the request of the Hilton Hotel, the Town amended the parking by-law to permit the introduction of a paid parking programme on the hotel property.  The Town authorized certain Hilton staff to undertake the enforcement on the property.  Permit revenues belong to the hotel, but enforcement revenues are returned to the Town. 

 

Seneca College

At the request of Seneca College, the Town amended the parking by-law to permit the introduction of a paid parking programme on the College property.  The Town authorized certain College staff to undertake the enforcement on the property.  Permit revenues belong to the College, but enforcement revenues are returned to the Town. 

 

Markham Stouffville Hospital

Markham Stouffville Hospital has been identified as a potential paid parking growth area given the proposed Hospital Master Plan expansion and future inclusion of the Town’s East Markham Community Centre and Library facility on the site. The Master Plan contemplates the construction of a structured parking facility to support the increased level of activity.  Currently the hospital charges for parking on its property and proposes to extend paid parking to serve their expanded building programme.  Users of the community centre and library will not pay for parking.

 

Staff will continue to monitor the impact of paid parking on adjoining landowners and review and evaluate any new applications as they are submitted.

 

Other private property in Markham

There are over 80 private properties where external security officers issue tickets to illegally parked vehicles.  All of the resulting fines come to the Town.  Revenue varies from month to month on all of the private properties.  Average monthly revenue is approximately $35,000.

 

Staff will continue to respond to expressions of interest of private property owners who are interested in implementing a paid parking system on a case by case basis.

 

3.   Town Owned and Town Leased Parking Lots

Currently there are a number of Town owned surface parking lots (Main Street Markham and Unionville) and commercial parking lots on private property (Main Street Markham) that are managed by the Town (see attachment) but are not pay and display parking lots. 

 

In Unionville, on the east side of Main Street the Town owns and maintains approximately 21 parking spaces at the bottom of the stairs and approximately 65 spaces on both the east and west side of the concession laneway.

 

In Markham Village, the Town owns five parking lots and leases additional land for two parking lots on both the east and west side of Main Street for a total of 267 parking spaces.

 

Staff will be undertaking a review of these parking lots in 2007.  The review will look at the number and location of spaces, number of lots, and the parking demand in the area.

 

4.   Payment-in-lieu of parking

In the Fall 2002, the Town retained BA Consulting Group to assist staff in developing a comprehensive parking strategy and plan for Markham, initially focused in Markham Centre.  The Final Report on the Parking Strategy for Markham Centre was endorsed in principle by Development Services Committee on October 18, 2005.  The parking strategy is intended to assist in the implementation of the Markham Centre vision by:

 

·              supporting the Urban Design objectives of minimizing the amount of surface parking and encouraging higher densities with the use of parking structures;

·              facilitating the implementation of Transportation Demand Management and influencing commuter choice through parking supply management and pricing; and,

·              fostering Economic Development by assisting the private sector to achieve the urban design vision through strategic investment in the provision of municipal parking facilities. 

 

Payment-in-lieu of on site parking is one of the components of the parking strategy and will facilitate the construction of buildings at higher densities from the outset, by enabling shared public parking in municipal facilities, rather than each builder providing single use parking facilities, often in a surface parking format.  Shared parking in municipal facilities helps to support higher transit usage, mixed land use and intensification, serving a range of uses with different peak parking characteristics at different times of the day and night.  Pooling of developer funds through payment-in-lieu of parking, along with the use of Tax Increment Financing (TIF), are means of financing and sharing the costs associated with the design and construction of municipal parking structures.

 

The provision of municipal parking structures has proven to be a key contributing factor in the development of successful urban growth nodes similar in scale and character to Markham Centre.  Town staff will bring forward a report for Council’s consideration regarding payment-in-lieu of parking in Markham Centre later in 2007.

 

5.   Tax Increment Financing (TIF)

For a number of years, the Town has been advocating that the Provincial Government introduce Tax Increment Financing (TIF) legislation, specifically in the Markham Centre area.

 

TIF’s are not new taxes but a redirection of a portion of the tax revenues paid by owners resulting from the additional assessment that occurs on development.  The Town’s financial strategy study assumed that tax revenues would continue to flow to the three levels of government during the TIF period at a base level equivalent to the level of development in a traditional suburban context.  The TIF revenues capture above the base level to the full urban development potential of the plan.  In other words, TIF funding would be derived from the “delta” increment above the base.

 

The Town’s financial study for Markham Centre identified TIF’s as one of the most significant and powerful financial tools to provide the funds needed to invest in large infrastructure projects including the provision of parking structures.

 

The largest single benefit of a TIF strategy would be its ability to fund parking structures in the earliest phases of the Markham Centre plan to achieve compact urban form and appropriate development densities from the outset and to offset the competitive disadvantages associated with encouraging commercial development in emerging urban centres like Markham Centre as opposed to traditional suburban sites with large land areas available for surface parking.

 

The Tax Increment Financing Act, 2006 (part of Bill 151, Budget Measures Act, 2006) received Royal Assent on December 20, 2006.  The legislation, while providing a new municipal “fiscal tool”, is introducing TIFs on a restrictive “pilot” basis and with limited functionality. For example, TIF funding is limited to 1% of the total municipal property taxes in any given year.  This would currently limit Markham to approximately $900,000 in TIF funding per year.  Current cost projections for structured parking indicate that $900,000 per year in TIF funding would be substantially inadequate, and could jeopardize an affordable financing plan for structured parking.  

 

Staff will be developing by the end of 2007 the mandatory “feasibility plan” required by the TIF Act, with the goal of achieving status as an additional pilot project.  There is a concern that unless the TIF Act is amended to result in a more robust fiscal tool, it will be of limited assistance in the Town of Markham’s efforts to build structured parking garages.

 

6.   On-Street Paid Parking Programme

In May 2005, Council endorsed in principal the paid parking programme.  The control of parking and parking supply is an integral component of promoting better land utilization and traffic management, as well as promoting alternative forms of travel including public transit, biking and walking.

 

A number of factors were taken into consideration to identify and assess the feasibility of paid parking in certain areas of the Town.  These included looking at areas where there are or will be parking pressures as a result of supply shortfalls, areas where there is or will be parking pressure as a result of parking policy impacts, such as Markham Centre, and areas where there is a level of local area acceptance.

 

Metered parking on selected streets offers many benefits.  It provides a pragmatic and cost-effective means to address parking impacts, it adds to our parking supply and it assures that streets are cleared of cars to allow traffic to flow especially during peak hours of the day.

 

The first phase of on-street pay and display parking was implemented in October 2005 in specific areas of the Town to regulate parking use where there are or will be parking pressures as a result of supply shortfalls and where there is a general level of local area acceptance.  Phase One included the placement of 11 pay and display machines on Ferrier St., Acadia Ave., Allstate Parkway, Frontenac Dr. and Centurian Blvd.  Three additional machines were placed on Cox Boulevard in February 2006.

 

The final step of this phase of the implementation is 3 additional pay and display machines on the north side of Clegg Rd. which will be completed by the end of 2007.

 

The Town selected Precise Parklink to provide ongoing operating, maintenance and replacement services for a flat fee.  Staff receives monthly financial reports from Precise Parklink, vendor of the pay and display machines.  These reports identify revenue received and the number of transactions by machine. To date over $12,000 in revenue has been collected from the pay and display machines.  Town by-law enforcement staff have been monitoring the paid parking areas and ticketing as required. 

 

Seneca introduced their paid parking programme in May 2006 for the commencement of their spring semester.  Seneca charges $4.00 to park for the entire day.  The Town charges $2.00 to park for the entire day on Allstate Parkway, Frontenac Dr. and Centurian Blvd.  The difference in the charge provides a reduced parking rate for students.  Seneca student enrollment is approximately 1300 students.  Currently, there are approximately 750 parking spaces on site and 75 on street parking in the area.

 

Due to the success of the YMCA and the service at the Unionville GO station, staff is investigating the feasibility of introducing pay and display machines on Rivis Road and YMCA Boulevard.  As well, parking pressures have been identified on Duffield Drive and McDowell Gate, staff is investigating the opportunity to introduce pay and display machines on those streets.

 

Where parking pressures are identified or can be reasonably predicted in other areas of the Town and where there is a readiness and general acceptance within the local community, staff will investigate the opportunity to extend on street paid parking to other street locations.

 

As development in Markham Centre proceeds, the expansion of the road network will provide the opportunity for continued expansion of on-street paid parking.  Growth and expansion opportunities will also arise in the Ferrier and Allstate areas as the Coptic Church undertakes the first phase of its comprehensive master plan and Seneca College enrolment continues to grow.

 

 

Summary

The Town of Markham paid parking programme is a multi-faceted approach to increase transit modal split and manage parking demands.  The sub-components of the programme are continuously being monitored, expanded and researched by staff in order to provide an effective and well managed programme.

 

It is recommended that a Committee of Council be established to make recommendations to Council on all of the matters discussed in this report relating to the Town’s Parking Programme.

 

 

ENGAGE 21ST CONSIDERATIONS:

This project aligns with the following key Town of Markham Corporate Goals: Quality Community, Environmental Focus and Infrastructure Management.

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Discussions have involved staff from Community and Fire Services, Development Services, and Corporate Services.

 

 

RECOMMENDED

                            BY:    ________________________          ________________________

                                      Don Taylor                                         John Livey

                                      Director, Strategic Initiatives               Chief Administrative Officer

ATTACHMENTS:

Appendix 1

 


Appendix 1

Governance Parking Models

Environmental Scan

 

 

Municipality

Governance

# Paid Parking Structures

# Municipal Paid Parking Lots

# On Street Pay & Display

Brampton

Committee of Council

3 with 1,223 spaces

4 surface lots with 165 spaces

165 on-street metered parking spaces

Burlington

Downtown Parking Committee

1 with 355 spaces

12 municipal lots with over 680 spaces

Extensive on-street metering

Kingston

Parking Advisory Committee

2 with 650 spaces

20 municipal parking lots with over 2,300 spaces

1,400 on street metered parking spaces

Kitchener

Downtown Advisory Committee

3 with 1,100 spaces

22 municipal parking lots with over 3,000 spaces

350 on-street parking spaces

London

Transportation Advisory Committee

3 with 1,162 spaces

20 lots with 1,736 spaces

1,913 on street metered spaces

Markham

Development Services Committee

0

8 municipal parking lots with 283 parking spaces (Town does not charge for parking)

Approximately 203 on-street parking spaces with 14 pay and display machines

Oakville

Committee of Council

1 with 300 spaces

12 municipal lots with 541 spaces

750 on-street metered spaces

Oshawa

Operation Services Committee

3 with 1000 parking spaces

5 municipal lots with over 1,122 parking spaces

Extensive on-street metering