…Oversight Committee to monitor, review project

A new parking fee of $150 per hour, VAT inclusive, is being proposed by the Parking Meter Renegotiation Committee – a sub-committee of the Georgetown Mayor and City Council – after extensive renegotiation with the Smart City Solutions.

The significant drop in the fee from a high of $500 per hour was among agreements reached with Smart City Solutions – a foreign company – based on recommendations proposed by a Special Committee and approved by the Council.

In the final report submitted by the Parking Meter Renegotiation Committee chaired by Councillor Akeem Peter, it was explained that following the abrupt end of the Parking Meter Project which was initiated in May, 2016 by way of a contractual agreement, a special committee convened by the council made four recommendations, but only one group of recommendations was approved. That committee was led by Councillor Malcolm Ferreira.
While that special committee recommended that the metered parking system with Smart City Solutions be continued, it did not make any recommendation for the continuance of the contract in its original form. The Parking Meter Renegotiation Committee was then formed and tasked with renegotiation the contract based on the single group of recommendations.

According to the final report, seen by this newspaper, the renegotiation committee held 15 meetings of which three were exclusive negotiations. Based on those negotiations, the committee and Smart City Solutions agreed to modify 13 aspects of the contract, including the reduction of the parking fee and the introduction of an oversight body.

“The new fee structure is 150.00 dollars per hour VAT inclusive and 800.00 for eight (8) hours VAT inclusive,” the committee stated in its report under the sub-heading “Renegotiations.” Importantly too, it was agreed that drivers pay for time instead of space, thus allowing them to move from location to location until the time paid for is exhausted. This will allow for transferability of time from meter to meter.

It was also agreed that at the recommencement of the project, there will be no immediate booting for the first three months, however, once that period has elapsed, failure to pay parking fees for up to three violations will result in booting, towing, and if necessary the sale of vehicle after 60 days of storage.
“It was agreed that the conditions for enforcement as stipulated in the contract is dependent on what is lawfully prescribed in the Parking Meter By-Laws. As such, that clause is taken in conjunction with the Parking Meter By-Laws which will determine what and how enforcement activities are applied,” the committee stated.

Stating too that there exists no monopoly on garage parking, the committee noted Smart City Solutions’ willingness to give up garage parking. “The parties agreed that the project shall be reviewed every six months for the first three years. This includes both Operational and Financial Views,” another section of the final report stated.

Additionally, the parties have agreed to have vehicles registered under the Central and Local Governments included in the exempt vehicles. In the case of residents passes will be issued. “It was agreed that a Residential PASS will be issued for parking from 5pm to 7pm, Monday to Friday and Saturday will be free all day. However, a nominal fee will apply and the Residential PASS is restricted to the vicinity in which the resident resides,” the committee explained.

Smart City Solutions has also agreed to have their staff undergo rigorous training in an effort to effect the necessary changes in their attitude.
On the issue of “unilateral termination of contract, Smart City Solutions agreed that the lump sum payment required by the City for unilateral termination will no longer be calculated by the number of years (of fraction thereof). Additionally, the conditions for unilateral termination will be adjusted to become less burdensome on the Mayor and City Council.

“During the process of renegotiations, Share of Profit and the Contractual Period were discussed, however, after lengthy discussions, both parties agreed to have those two clauses remain unchanged. Consequently, they are referred to that which was agreed upon in Amendment 2 of the Contract, being 20/80 Mayor and City Council/Concessionaire respectively and the contract will be for twenty (20) years with a right of renewal,” the committee reported.

The parties also agreed to add a new feature to the contract – provisions for an Oversight Committee. That committee will monitor, review and manage the operation of the project. It will comprise of seven members inclusive of representatives from both parties.
This final report of the renegotiation committee is to be submitted and ratified by the full council.

Back in December last year, the High Court quashed the Parking Meter by-laws which will bar the council from proceeding with the project. The council has since appealed the decision. The court action was filed by the New Building Society in February, 2017.

The bank had challenged the legality of the parking meter by-laws that had been approved by Local Government Minister, Ronald Bulkan. High Court Judge, Naresh Harnanan scrapped the legal validity of Bulkan’s decision to approve the parking meter by-laws. The judge found that the procedure to bring the by-laws into force was breached.