Meeting Date: January 12, 2005

Subject: Procurement Authorization - Toronto Parking Authority - Contract Change For 2004 Operating Expenses

Recommendation

It is recommended that the Commission authorize a Contract Change in the amount of $201,799.70.  This will bring the total authorized amount to $1,147,323.70 to the Toronto Parking Authority (TPA) for the 2004 operation and maintenance of the Commission’s commuter parking lots.

Funding

These expenses were included in the 2004 TTC Operating Budget. The contract status is as follows:

Original Amount / $6,965,468.26

Previous Contract Changes / 2,907,206.24

This Contract Change / $201,799.70 

Total Authority / $10,074,474.20

Background

A number of changes to the operation of commuter parking lots have resulted in the need to increase the original contract amount for TPA with respect to 2004 operating expenses.

First, as part of the transition from Ideal Parking to TPA, the pay and display equipment was replaced with compatible equipment to TPA’s operations.  The warranty for the equipment has expired and an on-going maintenance agreement through TPA is required with the resulting impact on 2004 expenses.

Second, at its meeting of September 30, 2002, the Commission approved a change in pricing policies to charge users for parking after 3:00 p.m. effective January 1, 2003.  This pricing change continued until June, 2004 and necessitated an increase in staffing after 3:00 p.m. from January 1, 2004 to June 1, 2004 to address maintenance, operational, technical and enforcement issues and to protect the TTC’s anticipated revenue stream.

Third, changes in the scope of work of TPA’s contract are necessary to account for miscellaneous cost increases related to the new Kennedy (North), Kipling (Subway Crescent) and Leslie commuter parking lots which were not anticipated when the contract for TPA was awarded in 2002. These costs primarily relate to maintenance of landscaping and supply of paper ticket stock.

Discussion

At their February 19, 2003 meeting, the Commission approved a 2003 revised contract after TPA and TTC concluded the negotiation of the cost impact of contract changes. Attached is a summary of the 2004 revised payment schedule and a rationale for the changes (see Appendix 1 and 2).

As noted earlier, these additional charges are for the year 2004 only.  Once TPA finalizes the contract for maintenance work, a subsequent report will be brought forward to the Commission for approval to cover the remainder of the contract term until June, 2007 to include all additional costs which will cover the maintenance fees for the pay and display equipment and any other change of work as a result of altering the mode of operation of our commuter lots.

Justification

The approval of additional funds will allow payments to be made to the contractor (TPA) for the additional work undertaken in 2004.

January 12, 2005

Attachment

22-7-3

P:\Paul B\Commission Report - Procurement Authorization- TPA - January 2005.doc