Parking Facts

Space counts:

No. of spaces (total):11,295

No. of spaces (deck): 7,085

No. of spaces (surface): 4,210

No. of leased spaces*: 489

* Spaces leased from outside entities. Included in surface space count above, but broken out separately in case these need to be excluded from the analysis.

Parking deck details:

All decks are in very good general condition: see the “Maintenance Expenses” section for more info. Specific conditions will be noted below.

East Campus Parking Deck (Lot 1)

  • 1,043 spaces
  • Construction completed in 2001
  • The Chapel pays 1/7th of the debt service and has right to use the deck on Sundays.

North Campus Parking Deck (Lot 26)

  • 1,142 spaces
  • Construction completed in 2003

Robertson Parking Deck (Lot 25)

  • 54 spaces
  • Construction completed in 1966

West Campus Parking Deck (Lot 49)

  • 1,470 spaces
  • Construction completed in1961
  • Small visitor area on Broadway needs new membrane; lighting currently poor as LED conversion project is troubled.

Exchange St. Parking Deck (Lot 39)

  • 1,321 spaces
  • Construction completed in 1980

South Campus Parking Deck (Lot 36)

  • 1,350 spaces
  • Construction completed in 2011

Schrank Parking Deck (Lot 37)

  • 282 spaces
  • Construction completed in 1969
  • Repeated problems with leaking from the plaza above.

E.J. Thomas Parking Deck (Lot 28)

  • 283 spaces
  • Construction completed in 1973

ASB Parking Deck (Lot 71)

  • 140 spaces
  • Construction completed in 1972

Maintenance Expenses:

Decks:

“Time & materials” contractmaintenance (annual avg.)*: $63,000

PFOC chargebacks (maintenance & snow removal):$151,000

Elevator maintenance (annually): $20,000

* These are numerous small repairs that extend the life of the facilities, including: crack chasing, sealing, and concrete spall repairs, etc.

We also recently completed a large repair project, which addressed outstanding issues in all nine decks that were identified by a consultant for repair in the short-term. The total cost of the project was about $1.5M, and it is expected that such a project needs to be done every 5 years. This means an average of $300,000 each year for such repairs.

Surface Lots:

“Time & materials” contract maintenance (annual avg.): $75,000

PFOC chargebacks (maintenance & snow removal):$102,500

We also currently spend about $250,000 annually to improve or create new surface parking lots. For example, this year we are adding spaces in the Quaker Square south lot and behind Olson Research, where the Grounds building was demolished.

***Total annual expenses for the coming fiscal year will be ~$9.47M, which includes all of the above except the completed $1.5M deck maintenance project. This represents total expenses for a typical year. An average annual surplus of $300,000 is then needed to cover a large deck maintenance project every 5 years.

Outstanding System indebtedness: $62.0 million.

Estimated annual debt service: $4.7 million

# of employees/annual salary:

FT12 ($406,000)

PT14 ($235,000)

Total Compensation (est.): $900,000

System Revenue:

Student transportation fee (annually)*: $7,920,000

Student permit sales (annually):$100,000

Employee permit sales (annually):$852,000

Visitor permits, meter, and hourly lot revenue (annually)$288,000

Parking fine collections (annually):$155,000

Special event collections (annually):$176,000

Other revenues (annually):$223,000

TOTAL* $2M of this revenue is used to directly support the Roo Express shuttle, which is the entirety of its funding.

Issues to Consider

  1. Debt Defeasance: The low interest rate environment will prove costlyin the defeasance of the University outstanding debt related to Parking. Yields on allowable trust investments used to defease tax-exempt debt are earning near zero. A significant negative escrow balance will be incurred.
  2. Staffing: The University employs 26 employees (part-time and full-time) in Parking Services. When privatizing, these individuals may be displaced. In the OSU situation, a commitment was made that all current staff be interviewed by the private entity. Those not employed by the private entity would be provided employment in other university operations.
  3. Fixed Cost Structure:University of Akron’s parking inventory consists of 11.3 thousand spaces. Parking deck spaces out number surface spaces nearly 1.85:1. The system,as a result, has incurred significant debt to provide adequate parking within its urban setting. Nearly 70% of the costs incurred by the system are fixed in nature (debt, personnel, shuttle service). This leaves little “net revenue” for a private entity to purchase.
  4. Discount rate used in determining “sale price”: The key to “selling” our parking revenues is to determine the “price’ of our net revenue over the term of the agreement. In doing so, The University should determine its own evaluation of value for the term of the lease. This will require discounting projected future revenue streams by an assumed discount rate. This will be key to determine the “sale price”.
  5. Cost to generate an acceptable contract: This will require a very detailed contract (attorney fees) including maintence requirements, pricing, special events, customer service issues, Roo Express ownership, etc.
  6. Cost to students/ faculty/staff: In the OSU model, assessing parking fee increases were limited in the initial years of the contract (10 years). After the initial period, the private entity is able to increase fees at their discretion (in consultation with OSU.)
  7. Union Contracts: This would more than likely need to be negotiated given the ability of the private entity to assess rate increases.
  8. Akron Experience: Entering into a service concession arrangement, the University must be certain that the chosen entity will provide top-notch customer service to all who use our parking facilities.
  9. GASB 60: Should the University opt to enter into a service concession arrangement, financial statement reporting would need to reflect the requirements GASB 60.