17 April 2018

Media: Rotorua Daily Post

Topic: Parking partnership

Enquiry

The following questions were asked regarding changes to Council's parking services:

• In September last year council considered outsourcing parking and had received six offers for parking services. Has a company been selected to manage the CBD parking?
• If so, who is the company that has been selected, how was that decision made and how soon will they be taking over management?
• Will there be public consultation on this decision?
• Why has the Council made the decision to outsource parking services?
• Stavros said in September that a potential partnership would result in cost efficiencies. How much money does Council currently make or lose on running the parking services? How much money could be saved with a partnership?

Response

The reporter was referred to the following news item:

Rotorua Lakes Council is working with a preferred partner to improve parking services in Rotorua.

The aim is to provide effective, modern and cost-effective services to the community, Operations Group Manager Henry Weston says.

A request for proposals last year - to see what options were available - was prompted by the need to consider future parking demands, modernise parking equipment like meters and pay-and-display machines in the central city and address increased operating costs against declining revenue. That provided an opportunity to explore how else parking services could be provided.

Obsolete equipment and low enforcement rates due to old technology, which many councils face, and the manual nature of enforcement, have all contributed and there is now an urgent need to upgrade our parking infrastructure, systems and update the way the service is managed, Mr Weston says.

We anticipate a number of benefits including the upgrade of equipment, the cost of which would be covered by the contractor. There will also be more payment options for people, more effective and efficient enforcement, and will enable us to position the service for current and future growth and demand.

Options for three staff who will be impacted by the changeover, including redeployment, are being worked through with the staff and their union representatives.

Responsibility for parking services has moved to the operations group from Council's transport division which undertook the earlier work on the requests for proposals. The operations group is now working through finalising contract details and will oversee implementation.

Council flagged last September that a request for proposals' has been issued to explore options for a potential partnership to improve delivery of parking services. Six proposals were received and in December, the Full Council approved progressing with negotiations with a preferred provider.

We can't provide all details at this time as we are still working with the preferred contractor. There are obviously commercial sensitivities involved, Mr Weston says.

An announcement with full details will be made at the appropriate time and that's expected to be quite soon. Changes will be phased in over a period of time, alongside public education on the new technology.

This would be a partnership agreement whereby we pay someone to provide these services for us but Council would continue to set the parking policy, receive the revenue and set the parking fees. Because these aspects will remain the same, wider public consultation isn't required.

There are more than 3550 parks in total in the central city including more than 500 metered and pay-and-display parks. Revenue has declined annually in the past five years to about $2million per year, down from just over $3million in 2012/13.

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Media: Rotorua Daily Post

Topic: Farmers Market extension and financials

Enquiry

I'm working on a story about the farmers market being extended and wanted to talk to someone about the reasoning behind the decision, what it means to the community, and the wet weather plan.

Subsequent questions:

Can the response also be widened to talk about the value of all the markets in Rotorua as a whole? How much do the council-run ones bring in, what's the benefit of having all these, are they becoming quintessentially Rotorua? That you can come here and there's a market almost every day of the week?

How much profit do the two council run markets make? And what is that profit used for?

My understanding is most of this goes back into the markets operation.

Clarification requested:

So what you're saying is the markets combined cost $261,690 to run and the markets combined earn $138,000 in total (not profit). Meaning the remaining $123,690 is being topped up by council budget?

Also, what does in projections mean? Whose projections?

Response

Information provided about Rotorua Farmers Market:

• Farmer market extended, last year was first year of trading and we closed between April and Sept, this year following research with stallholders and market attendees the decision to extend the market throughout winter was made.
• The Farmers market barrows are made for all weather with covered roof and roll down walls for the back of the barrow, so unless very bad storm the market will run.
• The Night Market is now in its 7th year and very popular with locals and visitors.
• Both the Farmers Market and Night Market bring people back to the inner city and support the businesses already trading in that space.
• In response to the question 'do we have too many markets?' I think each market has its own audience. Sometimes with families having sport on Saturday mornings it makes it harder to get to the Kuirau park market. Both Farmers and Night Market offer live entertainment and aim to make it a destination market. As well as produce and food you can enjoy the atmosphere and relax on seating and bean bags provided and just enjoy being in Rotorua.
• With the Farmers Market extending we are offering some special offers and competitions over the coming months and suggested people check out the Farmers Market Facebook page.

Subsequent response:

From Arts and Culture Manager Stewart Brown -

After seven years the Rotorua Night Market is now well established and brings hundreds of visitors each week into the centre of town to eat and shop.

The Rotorua Farmers Market was introduced in 2016 following market analysis and demand for this type of offering, adding vibrancy on usually quiet Sunday mornings.

Income from the Rotorua Night Market is about $115,000 annually and from the Farmers Market is about $23,000. The combined cost of operating the two markets is in line with projections, about $261,690.

The markets were not intended to be profit-making ventures and income is invested back into ongoing operational costs and improvements.

From District Revitalisation portfolio lead Councillor Karen Hunt -

Council invested in the Thursday Night Market and Sunday's Farmer's Market as part of initiatives to revitalise the city through activity that attracts people into the CBD. Both have become popular in their own rights, providing opportunities for starter businesses, for small business owners and producers and for existing businesses.

Clarification provided:

The projections are based on advice given to Council that the Farmers Market would cost $80,000 OPEX per annum.

And yes your calculations are correct for the $123,690.