15 December 2020
Media: Local Democracy Reporter
Topic: Cost of i-Park contract
Enquiry
As you may be aware I made a LGOIMA request regarding parking revenue.
The response I received shows:
2018/19
Gross parking revenue: $1,786,411.00
i-Park contract: $793,378.19
Net revenue: $993,032.81
Percentage: 44.41185091
2019/20
Gross parking revenue: $2,072,955.00
i-Park contract: $1,739,001.55
Net revenue: $333,953.45
Percentage: 83.88998073
*2018/19 i-Park contract costs partial year Oct 18 - June 19
My questions:
- As the i-Park contract costs are only for nine months can you please provide the true net revenue for 2018/19? (i.e. let me know if there were other costs from July -September 2018)
- When does the i-Park contract expire?
- Why did the i-Park contract costs more than double from 18/19 to 19/20?
- Why did the i-Park contract consume almost 84 per cent of the parking revenues in 2019/20?
- Is this acceptable to the council (as an organisation)?
- The Annual Report discusses a "drag" on parking revenue. Is the cost of the i-Park contract part of this?
- If so, why was i-Park and the costs associated with it not discussed in the Annual Report?
- Was the cost of the i-Park contract and its impact on net parking revenue played down in the Annual Report?
For [Mayor] Steve [Chadwick]:
- Are these figures (particularly 2019/20) acceptable to you?
- Do you remain comfortable with the council's decision to enter into a contract with i-Park?
- Are you concerned i-Park's impact on parking revenue was not mentioned in the Annual Report? Why / why not?
Additional comments provided for right of reply
Honey Comb hair salon owner Sarah Pearson said the cost of i-Park was "nuts", a "waste of money" and the council should end its contract.
"That's ludicrous. All everybody talks about is how difficult the parking system is."
"The parking is what every single person moans about. They can't work the machines, half the time they're not working."
She said issues with the parking system - as well as inner-city safety - stopped people coming into town and it "definitely" affected her business.
Pearson said she feared what cuts would be made by the council to make up lost revenue due to the i-Park contract, and said businesses would not appreciate rates rises.
"I just don't think [i-Park] worked as well as it could have because it has cost so much money - so let's try something else."
She said with international borders closed, Rotorua had a big opportunity with domestic tourism but the community and council had to work together to make that happen.
"We could have the rest of New Zealand eating out of our hand if we do it right."
Here's the next one:
(Steve may want to respond to this call for an apology, so I've cc'd her in).
Rotorua Resident and Ratepayers secretary Paddi Hodgkiss said she was "absolutely appalled" about the cost of the i-Park contract and its impact on parking revenue.
She called for the council to apologise for what she saw as the unworkability of the system and its cost to ratepayers.
"You've stuffed up ... it was a wrong move."
Hodgkiss said she feared there would be a severance cost to cancelling the contract with i-Park.
She said it showed i-Park was "actually costing ratepayers".
"I'm gobsmacked. That's a hell of a lot of money."
Reg Hennessy of Hennessy's Irish Bar said his reaction to the cost of i-Park was one of "shock and horror".
"It's just disgusting."
He said the CBD was "badly in need of life support" and business ratepayers, as well as residential ratepayers, would likely "have to pick up the tab".
"If it was a business you'd have to ask questions.
"Someone has got to answer why [i-Park] fees have doubled it's crazy."
Former inner city focus group spokesman and CBD businessman Mike Steiner said he couldn't see the validity of using i-Park given its effect on net parking revenue.
"It's nonsensical ... it's just ridiculous."
He said the system, including the introduction of $40 infringement fines, had a "detrimental effect" on the inner city as people were now less likely to shop in town because of it.
"It's punitive and it puts people off.
"We've had a lot of bad comment from the general public about the parking regime, so much so that you almost want to give up."
He said he believed councils were "a law unto themselves" and would implement changes whether the public supported them or not.
Response
From Council's Operations Group Manager Jocelyn Mikaere:
As the i-Park contract costs are only for nine months can you please provide the true net revenue for 2018/19? (i.e. let me know if there were other costs from July -September 2018)
The true net revenue for 2018/19 is what is shown in the table you've provided.
When does the i-Park contract expire?
30 June 2026
Why did the i-Park contract costs more than double from 18/19 to 19/20?
i-Park progressively took over the operation of parking services from October 2018. Therefore the 2018/19 costs do not represent a full year.
Since July 2019, iPark has continued to make adjustments to parking services as required by Council, such as the introduction of the half price Pink Zones and the parking app PrestoPark.
Why did the i-Park contract consume almost 84 per cent of the parking revenues in 2019/20?
This is due to reduced revenue as a result of the COVID-19 response and the 2019/20 costs reflect a full financial year.
Is this acceptable to the council (as an organisation)?
This was not surprising given the impact of COVID-19.
The Annual Report discusses a "drag" on parking revenue. Is the cost of the i-Park contract part of this?
No, the impact of Covid-19 has been the main factor.
If so, why was i-Park and the costs associated with it not discussed in the Annual Report? Was the cost of the i-Park contract and its impact on net parking revenue played down in the Annual Report?
Regarding the annual report - the main factor affecting parking revenue has been Covid-19 and this is discussed in the Annual Report.
From Mayor Steve Chadwick:
"We haven't yet had a full year of the full system.
"The primary purpose of parking services is not to make a profit, it is about contributing to a vibrant CBD by appropriately managing turnover and ensuring fair access for all to support businesses.
"The old system was outdated and inefficient and there will always be teething problems when you introduce change, but systems like ours are now pretty universal and staff have continued to monitor and make adjustments for improvement.
"The COVID lockdown obviously impacted revenue this year and there's also an impact on revenue from what's been done to cater for CBD workers, like introducing cheaper rates in some areas and opening up extra free weekday parking in the market space in Kuirau Park.
"Regarding the annual report: Annual reports are a snapshot and as is reported in the 2019/20 report, the parking and other revenue challenges were mitigated by higher-than-budgeted rates revenues, cost savings due to lockdown, and other efficiencies implemented before lockdown."
Background information:
It is important to note that the previous parking system in Rotorua used obsolete coin-operated meters that were expensive to operate and maintain, as well as being labour-intensive to monitor. This dated technology contributed to low enforcement rates and lost revenue.
Council entered into a contract with iPark in 2018. Our contract with i-Park has meant Council retains control of parking policy and revenue, without having to front the cost of replacing the previously outdated meters and parking equipment. The cost of the replacement system is spread over the term of the contract. This approach ultimately avoided the need for Council to initially outlay approximately $2 million to fund the required upgrades.
The contract has seen Council upgrade the parking system to provide a more effective, modern, and well used service to the community. The new parking system improves consistency of service across the city, improves turnover of parking spaces, and supports local businesses who have struggled in the past with patrons being unable to locate a car park outside of their business due to cars being parked in free parking spaces all day.
There are an average of approximately 40,000 parking transactions in the CBD per month.
In regards to Mr Steiner's comments about the $40 infringement - Council did not introduce a new $40 non-payment infringement. Infringement fees are set by national legislation not by Councils.
________________________________________________________________________________________
Media: Rotorua Daily Post
Topic: Clayton Rd roadworks
Enquiry
Are you able to provide me with information about the roadworks at the top of Clayton Rd? I just drive past it often and it seems like a bit of a big deal and is taking a while.
What's being done?
When did it start?
When will it finish?
Has it been delayed or is it on schedule?
Have residents been kept informed?
Response
The following information was provided:
The reporter was provided a link to this THIS news item available on Council's website about these works.
Additional comment was provided by Infrastructure Group Manager Stavros Michael:
The work to upgrade the stormwater infrastructure is expected to be complete within the next week. Consistent with our shared path network plan for this area, further work to construct a shared path along Clayton Road will begin after the holiday period.
The stormwater portion of the work was originally scheduled to be complete by the end of October however, unfavourable ground conditions required careful handling, then a period of heavy rain and adjustments to the programme to align with school holidays have added extra time to the work completion schedule.
It is a standard part of a major contract such as this that the contractor will keep residents up to date with what's happening on a project. Residents in the works area would have received a letter prior to work starting. During the project, the contractor continued to advise residents of any work that may impact them either in person or via letter. ________________________________________________________________________________________
Media: Rotorua Weekender
Topic: Christmas festival
Enquiry
I'm getting in touch as I'm doing up a story about how festive this weekend will be with the festival and then the parade!
I have info on the festival, but was wondering if I could grab a couple quotes from someone to include with it:
- Why do you encourage people to come along to the festival?
- What are you looking forward to about celebrating the festive season with the community?
- Why is it important to both have some festive cheer for the community and also for the community to support locals selling their wares?
- Is there anything you would like to add?
Response
From Rotorua Lakes Council Arts & Culture Markets and Festivals Manager, Brigitte Nelson:
This has been a tough year for many families and it will be a great chance to bring the community together and have a fun day out.
It will be a chance to take a break from every day stresses, bring the whānau down and enjoy free festive entertainment, crafts, activities, balloon and drumming workshops. Santa will be there and we have just confirmed a donkey for our nativity parade!
Supporting local has never been more important than now. The market stalls will have homemade affordable gifts available for anyone wishing to finish their shopping.
We wanted to create a special festive event to put a smile on kids' faces and really celebrate the true meaning of Christmas. It would be great if families could bring along gift to donate to the Community Christmas Tree at Rotorua Library. These gifts will be taken to Waiariki Women's Refuge to be distributed to the families under their care this Christmas.