CAR PARK 31

            OCTOBER 2007

  1.        Introduction

  2.        License Area Details

  3.        The Proposal

  4.        The Requirements of the Local Government Act 1995

       a)      Expected effect on the provision of facilities and services
       b)      Expected effect on other persons providing facilities and services in
               the district
       c)      Expected financial effect on the City of Fremantle
       d)      Expected effect on matters referred to in Strategic Plan
       e)      The ability of the City of Fremantle to perform the transaction
       f)      Other matters of which details are required to be given

  5.        Submissions


This Business Plan has been developed in accordance with the requirements of section
3.59 of the Local Government Act 1995, which applies where a local government
intends to participate in a major trading undertaking.

Public advertising of the Business Plan provides an opportunity for the public to make
submissions on the proposal prior to the local government commencing the

Since 1997 the City has operated the car parks located at Fishing Boat Harbour in
Fremantle. A description of this property is provided below. This agreement expired
in late 2006 and the City is considering entering into a further agreement with the
Department of Planning and Infrastructure (Minister for Transport) for a period of 10

The purpose of this business plan is to:
   • Advise that the City of Fremantle proposes to undertake a Major Trading
   • Provide the opportunity for public comment on the Proposed Business Plan to
       enter into a licence agreement with Minister For Transport to operate and
       manage the Car Parking Areas- Fremantle Fishing Boat Harbour
   • Satisfy the requirements of section 3.59 of the Local Government Act 1995 in
       relation to a “Major Trading Undertaking”

The land is Reserve 32382 (Fremantle Fishermen’s Co-op)
Current Vesting = Minister for Transport.
Responsible Agency = Department of Transport
Current Purpose = Requirement of the Marine and Harbours Act 1981
Land Use = Harbour Purposes


The City of Fremantle was first approached by the management of Fremantle Fishing
Boat Harbour in 1993 to operate the public car parking areas at this location.
Following negotiations between the City of Fremantle and the Department of
Planning and Infrastructure agreement was reached and the City of Fremantle
commenced the management of the car parking facilities in 1997. Licence agreements
have been in place since October 1996, with the last one expiring in November 2006.

Negotiations have taken place between representatives of City of Fremantle and
Department of Planning and Infrastructure and a further 10 year term has been
proposed. Therefore
   • Under s3.59 of the Local Government Act 1995 this licence constitutes a
       “Major Trading Undertaking” and a business plan must be prepared and
       advertised for public comment for a period of six weeks.
   • As a result of the advertising the comments received will be reported to
   • Having complied with the Local Government Act it is proposed that a licence
       agreement is entered into for a period of 10 years.

The proposal provides for the City to operate an manage the Car park for use by the
general public on and from the Car Parking areas during the term of the agreement in
accordance with the following;

   1. The Licensee shall not:

           (a)     without the prior consent of the Licensor use or permit to be used
                   the Car parking areas or any part thereof for any purpose other than
                   that of a general public parking area for motor vehicles and
           (b)     permit to be carried on or upon the Car parking Areas or any part
                   thereof any illegal, noxious, noisome, harmful or offensive trade,
                   act, matter or thing;
           (c)     permit any person to sleep on the Car Parking Areas or use the Car
                   Parking Areas as living accommodation;
           (d)     permit any act, matter or thing to be done which is contrary to the
                   Licensee’s parking by-laws in force from time to time;
           (e)     permit any act, matter or thing that may be or become a nuisance,
                   damage, disturbance or annoyance to the Licensor or to any owner
                   or occupier of the Land or any property in the neighbourhood of
                   the Car Parking Areas; and
           (f)     permit any motor vehicle or motorcycle to be washed upon the Car
                   Parking Areas or any mechanical work to be carried out thereon
                   (except in the cases of emergency).

   2. As a result of the agreement the City will be responsible for;

            (a)     Revenue collection from parking ticket machines;
            (b)    Issue and management of short and long term paid parking permits;
            (c)    Collection, receipting, banking and distribution of parking revenue;
            (d)    Repair and maintenance of parking ticket machines and parking
                   control signs;
            (e)    Regular day and evening patrols of the parking facilities and
                   associated roadways;
            (f)    Issue of infringements for parking related offences within
                   permitted and restricted parking areas;
            (g)    Management of revenue from infringements issued; and
            (h)    Enforcement of infringements including Reminder Notices, Final
                   Demands, Fines Enforcement Registry lodgements and Court
                   procedures as per legislative requirements.

Whilst it is not considered that this license agreement will meet the minimum
requirements for a Major trading Undertaking under the Local Government Act to
require a Business Plan to be undertaken, it is anticipated that during the term of this
agreement these minimum requirements will be reached. Council also has similar
agreements for parking at three other locations within the City under the control of the
Department of Infrastructure and Planning (Car Park 12A&B on Beach Street, Car
Park 19 on Little High Street and Car Park 29 on Fairbairn Street) which if combined
with this agreement would exceed the minimum requirements for advertising a
Business Plan under the Local Government Act 1995.


The Local Government Act 1995 and its associated Regulations prescribe that any
transaction greater than $500,000 expenditure per annum is defined as a major trading

undertaking and requires local government to prepare a business plan prior to entering
into the transaction.

The Business Plan is to include an overall assessment of the major trading transaction
and is to include details of:
a)           Its expected effect on the provision of facilities and services by the local
b)           Its expected effect on the persons providing facilities and services in the
c)           Its expected financial effect on the local government
d)           Its expected effect on matters referred to in the local government’s current
             plan of principal activities prepared under section 5.56;
e)          The ability of the local government to manage the undertaking or the
            performance of any transaction; and
f)          Any other matter prescribed for the purpose of section 3.59(3) of the Act

Its Expected Effect on the Provision of Facilities and Services

The City of Fremantle has had a licence agreement in place since October 1996 and
has operated and managed the Car Park for use of the general public since January

The current provision of parking services within the City includes the Fremantle
Fishing Boat Harbour parking stations management and control and therefore this
agreement is not expected to change the current provision of service.

Currently, the City provides regular patrols of these areas as part of the overall co-
ordination of parking in the CBD. This includes compliance checking for valid ticket
payments and parking within identified areas correctly, compliance with Acrod
parking, issuing of infringements where deemed that parking has not occurred in
compliance with correct requirements, enforcement of infringements, and collection
of monies from ticket machines. The City does not provide these services
independently but as part of a coordinated service along with the service provided for
its own parking infrastructure and other leased parking areas. No additional
employees are required to operate this service.

The City collects the revenue from the car parks in Fishing Boat Harbour. A
percentage of these takings are kept by the City and a percentage is provided to the
Department of Planning and Infrastructure. It is considered that the actual terms of the
agreement are commercial and therefore confidential. Monthly payments are
forwarded to the Department of Planning and Infrastructure in accordance with the

The City will be responsible for all fees, charges and expenses which may be or
become incurred, paid or payable for or in respect of contravention of the City’s
parking local laws.

Its Expected Effect on Other Persons Providing Facilities and Services in the

There are two other significant service providers within the CBD of Fremantle that
this agreement may affect. Wilson’s Parking Services operates two parking locations
within close proximity to the Fishing Boat Harbour, being at Fremantle Hospital in
Alma Street and the Woolstores Carpark in Cantonment Street. The total parking bays
for these facilities number approximately 350 bays.

The second provider is a private multi-storey car park located in Collie Street. The
total parking bays located at this facility number approximately 480 bays.

Due to the nature of parking in Fremantle where it is generally considered that people
park closest to their destination first, it is not considered that the arrangement between
the City and the Department of Planning and Infrastructure will affect these other
parties. The number of car park bays at Fishing Boat Harbour is approximately 460
and represents around 9% of the total off street parking capacity of the City, being
approximately 5,244 bays.

It is also noted that this service is a continuation of a current service that has operating
since 1997.

For these reasons this agreement is not considered to significantly impact on other

Its Expected Financial Effect on the City Of Fremantle

The City of Fremantle currently operates and manages the Car Parking Areas
described as Car Park 31. There are approximately 460 bays located within the
agreement area and current fees range between 70 cents per hour and $1.20 per hour.
In the last financial year (2006/2007) approximately 840,000 paid hours were
collected within this area. Under the agreement the City will keep a certain percentage
of this revenue for costs incurred by the City then the remainder will be divided
between the City and Department of Planning and Infrastructure. The City will
forward payment to the Department of their percentage within 14 days of the end of
each month. The details of this agreement are considered commercial in confidence
and are therefore not for disclosure. However, entering into this agreement is not
expected to draw on any municipal funds derived from rate or other general revenue
and this agreement is expected to be self funding as a minimum. Past historical
financial records indicate that revenue has exceeded expenditure.

The City is responsible for all compliance related issues. The City will be responsible
for all fees, charges and expenses which may be or become incurred, paid or payable
for or in respect of contravention of the City’s parking local laws.

The City will undertake to manage operations for the area within this agreement with
its current staffing structure. At this time there is not any anticipated changes
proposed as a consequence of entering into this agreement.

Its Expected Effect On Matters Referred In The Strategic Plan.

The operating licence will contribute to a Vibrant Economy, by providing and
promoting a range of accessible and affordable parking options to support business
activities in Fremantle, which is one of the strategies contained in the strategic plan.

Fishing Boat Harbour is also a significant tourist destination within Fremantle. In
accordance with our strategic plan this agreement will add to the provision of
infrastructure and services to allow visitors to identify major sites and attractions.

The Ability of the City Of Fremantle to Perform the Transaction

The City of Fremantle has the resources and experience to competently and
effectively manage the performance of the licence agreement. It has established local
laws, policies and procedures to deal with parking services for this agreement and the
wider Fremantle district needs.


There are no other matters identified in the agreement for disclosure.


            Submissions will be received at the

                    City of Fremantle
                    Town Hall Centre
                     8 William Street
                        WA 6160

   Submissions should be received by 5 December 2007

          Submissions should be clearly marked

      “Submission – Major Trading Undertaking
    Car Park 31 – Fishing Boat Harbour, Fremantle.”

   Submissions submitted by facsimile will be accepted

Any queries relating to this disposal should be directed to:
                    Gordon Urquhart
             Parking Services Co-ordinator
                    City of Fremantle
                    Phone: 9432 9753
                     Fax: 9432 9529


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