REPORT TO WAVERLEY TRAFFIC COMMITTEE

Waverley Council Chambers Car Park – Proposed Changes (A02//0637-02)

Report dated 24June 2008 from the Divisional Manager, Finance & Information Systems & Services recommending changes to existing car parking arrangements at Council Chambers.

Council’s Proposal:

That:

  • Council turn 10 of the 20 spaces at the rear car park of Council Chambers into Council Authorised Vehicles Only (the 10 would include a reserved space for each of the Mayor and the General Manager)
  • Council turn the 7 spaces (including the 1 disabled space) at the front of Council Chambers from ¼ hour parking Mon – Fri 8.30am – 5.00pm to 1 hour parking Mon – Fri 8.30am – 5.30pm

Purpose of Report

This report arises from ongoing concern regarding the availability of parking for Council operational vehicles together with it being brought to the attention of Council that because restrictions have been placed upon the members of staff that can use the rear car park a Fringe Benefits Tax (FBT) liability exists.

In addition through movement of Council’s Customer Service Centre from Chambers to 55 Spring Street the existing time restrictions on parking at the front of Council Chambers can be relaxed.

Introduction

It has been brought to the attention of Council, by the Taxation Manager, that because we have placed internal restrictions on which staff can and cannot park in the rear car park at Chambers (through a Pipeline article in March 2002) we are in effect providing a benefit to one group of staff over another and accordingly Fringe Benefits Tax (FBT) applies.

Furthermore as we keep no record of who parks in the car park and that there are more Council approved vehicles than car parking spaces it can be deemed that FBT applies to all spaces other than the space reserved for the Mayor.

This view has been tested and confirmed with our own auditors Spencer Steer and the accounting firm Deloittes. An opinion was also obtained from PriceWaterhouseCoopers (PWC) who felt that we could put in for a private ruling though it would be an aggressive stance.

Analysis

A meeting to discuss the question of parking problems at Council Chambers was held on Friday 18th April 2008, attended by Bronwyn Kelly, Dan Joannides, Don Setchell, Greg Worner, MalcolmEdwards and Ian Mead.

At Council Chambers the rear car park has 20 spaces. Two of these spaces are reserved, one for the Mayor and one for the GM Pool Car. As the Mayor is not an employee, Council is not liable for FBT on that space however we have been paying FBT on the other space as it is sign posted “reserved”.

As Council is now paying FBT on 19 spaces (ie 20 spaces less 1 for the Mayor) the meeting discussed various different proposals as a way of limiting this cost however most resulted in either operationally difficult situations for staff or an FBT liability.

It was suggested that what could be done is that we obtain a valuation on these car parking spots to determine what our FBT liability is likely to be.

This valuation has now been received at $766.14 per space per annum.

A paper was presented to the Executive Team (ET) on Thursday 12 June 2008 and subsequent discussions were heldvariously between Tony Reed, Director Public Works & Services, Bronwyn Kelly, Director Corporate & Technical Services and Ian Mead, Divisional Manager Finance & Information Systems & Services.

These discussions agreed that the following proposal would be put to the Traffic Committee.

Rear Car Park

Of the 20 car parking spaces 2 are presently reserved for the Mayor and the GM Unit pool car. It is proposed to extend the number of reserved spaces for Council authorised vehicles to a total of 10 spaces made up of

  • 1 Mayoral space (no FBT payable)
  • 3 Pool car spaces (no FBT payable)
  • 1 General Manager space (FBT payable)
  • 5 Council Authorised vehicles only (FBT payable)

thus reducing Councils FBT liability from $14,556.66 per annum (ie $766.14 x 19 spaces) to $4,596.84 ($766.14 x 6 spaces).

The remaining 10 spaces would be made available for visitors parking. As is presently the case no time restrictions would apply.

Council Authorised Vehicles would extend to all Council owned/leased passenger vehicles though would not include car allowance arrangements. Authorised vehicles would be issued with a relevant parking sticker and compliance with this parking restriction would be enforced by Council’s parking patrol officers.

Front Car Park

Presently the 7 spaces (including 1 disabled space) at the front of Council Chambers are restricted to ¼ parking between Mon – Fri 8.30am – 5.00pm. The moving of Councils Customer Service Centre to 55 Spring Street Bondi Junction means that there are less transactional type visits to Council Chambers. People visiting Chambers are more likely to be attending a meeting with staff.

Accordingly the view has been taken that the time limit on these spaces to be extended to 1 hour parking Mon – Fri 8.30am – 5.30pm.

Compliance with this parking restriction would be enforced by Council’s parking patrol officers.

Financial Information for Council’s Consideration

Council will meet the cost for the installation of the signs and for the Council Authorised Vehicles stickers.

Council’s Proposal:

That:

  • Council turn 10 of the 20 spaces at the rear car park of Council Chambers into Council Authorised Vehicles Only (the 10 would include a reserved space for each of the Mayor and the General Manager)
  • Council turn the 7 spaces (including the 1 disabled space) at the front of Council Chambers from ¼ hour parking Mon – Fri 8.30am – 5.00pm to 1 hour parking Mon – Fri 8.30am – 5.30pm

Ian Mead

Divisional Manager, Finance & Information Systems & Services