ACTION REQUESTED:
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Communication from the City Manager and the Director of Public Works with a Request to APPROVE and Authorize an INTERGOVERNMENTAL AGREEMENT with the ILLINOIS DEPARTMENT OF TRANSPORTATION (IDOT) for 60 Monthly Parking Spaces in a City-Owned Parking Facility.
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BACKGROUND: In 2011 the State of Illinois Central Management Services modified the terms of its lease for the IDOT office space in the Becker Building, located in downtown Peoria. The modified lease agreement eliminated IDOT occupancy of the 6th floor of the Becker Building, allowing other state agencies to move into that space. Under the final terms of their lease arrangement, IDOT was limited to 55 parking spaces in the Becker Building parking deck, which left them 42 spaces short of their parking needs.
As a result of the changes in the lease, IDOT asked the City to provide 42 parking spaces for its use in city-owned facilities, specifically the Niagara Parking Deck. IDOT previously had use of 110 total monthly permits and vouchers (stamped parking tags) in the city-owned Twin Towers Parking Deck, as per a previous agreement, so this would increase their number of City permits to 162.
On April 8, 2013, after several iterations of negotiations, City Council approved an intergovernmental agreement with IDOT for 42 parking spaces in the city-owned Niagara Parking Deck (Item #13-148). This agreement required IDOT to pay the current rate for the 42 parking spaces in the Niagara Parking Deck, or $35,280 per year, paid monthly in the amount of $2940. The terms of this agreement were for one year from July 1, 2012 to June 30, 2013, with renewal options for four (4) additional years. This agreement expired at the end of June 2017.
As the 2013 Intergovernmental Agreement IDOT neared the 2017 expiration date, IDOT approached the City concerning their growing parking needs. At this time, IDOT is requesting 60 parking spaces, up from 42, for their downtown staff, and are interested in less-expensive parking than provided in the parking decks. In an effort to accommodate the request, the City approached Heartland Parking Inc. for assistance. Heartland Parking responded that they had available spaces in the city-owned parking lot at 111 NE Madison Avenue, which they lease from the City for $33,200 annually. Heartland Parking verified that they can provide IDOT 60 parking spaces for $50 per month per space, but would prefer to sign a contract with the City and not with IDOT. In order to assist IDOT and provide the required 60 spaces, City staff worked with IDOT to develop the attached intergovernmental agreement. The terms of said agreement are for 60 parking spaces in the parking lot at 111 NE Madison Avenue at $52 per space per month for 22 months, with provisions for four (4) additional 2-year renewal periods. The City would then collect the funds from IDOT and submit $50 per space per month to Heartland Parking, Inc. and retain $2 per space per month as a service fee.
FINANCIAL IMPACT: Approval of this agreement will provide IDOT with 60 parking permits, in exchange for a parking fee of $37,400 per year. The City will pay Heartland Parking Inc. $36,000 per year of this parking fee and retain $1,400 per year for services rendered.
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: IDOT will receive an additional 60 parking permits in the city owned parking lot on Madison Avenue, and the City will receive $37,440 annually (of which the City will retain $1400 annually) for the term of the agreement, 22 months plus 4 additional 2 year renewal periods.
IMPACT IF DENIED: IDOT will need to find additional parking spaces in the downtown area for their staff. The City will not receive the $1,400 annually in parking revenue from this agreement.
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: Heartland Parking 00195-171231
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Grow Peoria: Businesses, Jobs, and Population
3. Vibrant Downtown: Riverfront/ Central Business District/ Warehouse District
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
2. Have an efficient government.
3. Keep taxes and fees competitive.
DEPARTMENT: Public Works