DAOD 1004-1, Parking Administration
Table of Contents
Date of Issue: 2009-03-17
Date of Last Modification: 2013-11-04
Application: This DAOD is a directive that applies to employees of the Department of National Defence (DND employees) and an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF members).
- CFAO 29-9, Parking at DND Installations in Urban Areas
- Interim Guidance on Parking, 5 July 2010
Approval Authority: Vice Chief of the Defence Staff (VCDS)
Enquiries: Director Strategic Initiatives and Shared Support Services (DSISSS)
additional operational requirement parking (places de stationnement pour besoin opérationnel additionnel)
Parking that is required, in addition to minimum operational requirement parking, to support the following Defence Services Programme objectives:
- security and force protection; and
- meeting the needs of persons with limited mobility.
commercial parking operator (exploitant de stationnement commercial)
A building owner, landlord, municipality or other parking operator offering parking for rent.
limited mobility (mobilité limitée)
A physical incapacity affecting mobility that poses a risk to the health or safety of a person who walks more than 100 metres, as certified by a health care practitioner recognized by Health Canada or the health authority of a province or territory.
minimum operational requirement parking (places de stationnement pour besoin opérationnel minimal)
Parking that is required for vehicles of:
- the Crown;
- visitors if there is no conveniently available municipal or commercial parking; and
- shift workers if there is no suitable municipal or commercial parking available within safe proximity of their workplace.
3.1 Responsibility for parking within the federal government was delegated by the Treasury Board Secretariat in December 1996 to the deputy heads of departments. DND and CAF parking policies and instructions must comply with applicable laws and reflect the values promoted by the federal government in the management of programme funds, as well as in regard to the proper use of resources and the sound stewardship of real property and immovables. See section 2 of the Federal Real Property and Federal Immovables Act for the meaning of the terms "real property" and "immovable".
3.2 The Deputy Minister (DM) is accountable for the financial management as well as the stewardship of the real property and immovables of the DND and the CAF. Local parking authorities are accountable to the DM through their chain of command for the administration of parking under their control.
Local Parking Authorities
3.3 For purposes of this DAOD, the following are local parking authorities:
- base commanders;
- any commanding officer having management authority for a unit's real property or immovables;
- any DND employee who acts as the manager of a defence establishment; and
- within the National Capital Region, the Commandant of the Canadian Forces Support Unit (Ottawa) for custodial facilities and the DSISSS for non-custodial facilities (see paragraph 5.1 for a description of custodial and non-custodial facilities).
Control of Parking
3.4 Local parking authorities exercise control over parking at defence establishments for which they have management authority for the real property or immovables. Local parking authorities must establish procedures for parking administration in accordance with:
- this DAOD;
- direction provided within the Realty Asset System Management Framework (see DAOD 4001-0, Management of Realty Assets) with regard to the acquisition, maintenance and disposal of parking at a custodial facility; and
- direction provided in the programme management and business planning processes with regard to the use of programme funds to satisfy parking requirements.
3.5 This DAOD does not apply to parking provided with single quarters administered by bases or residential housing units administered by the Canadian Forces Housing Agency. Administration and charges for such parking are governed by other legal authorities.
3.6 For purposes of this DAOD, worker parking is parking that may be made available by the DND and the CAF to:
- DND employees;
- CAF members;
- non-public property employees;
- public servants of other government departments and agencies whose ordinary place of work is a defence establishment; and
- other persons engaged under a contract of employment or a contract for services with the DND and the CAF, whose ordinary place of work is a defence establishment.
Note 1 – A contract of employment is a contract involving an employer-employee relationship under which the employer may specify when, where, how and under what conditions the work will be performed by the employee.
Note 2 – A contract for services is a contract under which a person or firm is retained to achieve a prescribed objective with no day-to-day supervision by the contracting authority, and the person or firm is free to choose the means of performing the contract.
3.7 For purposes of this DAOD, a shift worker is:
- a DND employee or other public servant of another government department or agency for whom a significant portion of their regularly scheduled hours of work, administered in accordance with shift work provisions of their collective agreement, falls outside the 06:00 to 18:00 period;
- a CAF member for whom a significant portion of their regularly scheduled hours of work falls outside the 06:00 to 18:00 period; or
- a non-public property employee or other person under a contract of employment or a contract for services with the DND and the CAF, for whom a significant portion of their regularly scheduled hours of work, as confirmed by the person's management, falls outside the 06:00 to 18:00 period.
4. Operating Principles
Equitable and Coherent Application
4.1 A local parking authority must ensure that the operating principles of this DAOD are applied in an equitable and coherent manner at each defence establishment in Canada, taking into account the operating environment at the defence establishment and the varying accountabilities of the DND and the CAF as custodians of real property and immovables, as tenants of non-custodial real property and immovables, and as employers.
Responsible Financial Management
4.2 The allocation and expenditure of programme funds to acquire, maintain, administer and dispose of parking must demonstrate the management of resources and programme funds in an efficient and cost-effective manner in support of Defence Services Programme (DSP) objectives.
Sound Stewardship of Real Property and Immovables
4.3 A local parking authority must ensure that any use of custodial real property and immovables to satisfy parking requirements complies with:
- DAOD 4001-0, Management of Realty Assets; and
- applicable laws and Treasury Board (TB) policies that promote due diligence, ethical behaviour and sound practices in the management of real property and immovables.
4.4 Under the Income Tax Act, the cost associated with the daily commute to work is a personal responsibility and considered a personal expense. Except for a few specific provisions under the Income Tax Act, parking provided by an employer is considered a taxable employment benefit.
4.5 Worker parking is generally not a DSP requirement. Charges for worker parking provided by the DND and the CAF must be set at the fair market value (see section 6). Should there be a taxable benefit, the DND and the CAF must ensure the benefit is reported in accordance with federal and provincial income tax legislation. Worker parking may only be provided if it is consistent with the principles of the responsible financial management and the sound stewardship of real property and immovables.
Worker Parking as a Means of Workplace Accommodation
4.6 In accordance with DAOD 5015-0, Workplace Accommodation, the DND and the CAF are committed to providing, up to the point of undue hardship, a workplace that is accessible and free from employment barriers and discrimination, and that is accommodating to the employment-related needs of DND employees, including members of designated groups. Parking may be one of many available means of workplace accommodation to ensure barrier-free employment for persons with limitations in their mobility. Requests for parking are assessed on a case-by-case basis, recognizing that persons with limited mobility are equally responsible for their daily commute to work. Delegated managers must take into account all relevant factors in order to make an informed decision that is fair and equitable.
Note – A delegated manager is a manager or supervisor with delegated powers or functions, under subsection 12.2(1) of the Financial Administration Act, in relation to the management of human resources.
5. Parking Requirements
5.1 In determining parking requirements, a local parking authority must take into account the category of the facility in question and recognize that the DSP does not generally require that worker parking be provided. In accordance with the TB Policy on Management of Real Property, the level of control over real property or an immovable determines the category of the facility. For purposes of this DAOD, there are the following two categories of facilities:
- custodial facilities: Crown-owned real property or immovables over which the DND and the CAF have full custodianship and administration; and
- non-custodial facilities: real property or immovables where the DND and the CAF are tenants, either Crown-owned under custodianship of another department or leased real property or immovables.
Parking Requirements at Custodial Facilities
5.2 At a custodial facility, the local parking authority must ensure that decisions relating to parking requirements rest on the sound stewardship of real property and immovables. The amount of required parking at a custodial facility is determined within the Realty Asset System Management Framework and may not necessarily reflect the minimum operational requirement parking and the additional operational requirement parking. Parking in excess of these requirements may be made available for use as worker parking, consistent with the principle of the sound stewardship of real property and immovables.
Parking Requirements at Non-Custodial Facilities
5.3 A non-custodial facility is usually obtained through the Real Property Branch (RPB) of the Public Works and Government Services Canada (PWGSC), with reimbursement to PWGSC from programme funds based on the funding model for accommodations. The PWGSC Custodial Parking Policy establishes the responsibilities of the RPB and the criteria for satisfying parking demands of tenant departments.
5.4 In keeping with the principle of responsible financial management, a local parking authority must obtain the least amount of minimum operational requirement parking and additional operational requirement parking. Accordingly, parking for shift workers and for persons with limited mobility must not be acquired through programme funds if suitable parking may be obtained directly by the worker from a commercial parking operator.
Parking Requirements to Meet the Needs of Persons with Limited Mobility
5.5 The objective of workplace accommodation is not to satisfy individual preferences but to provide reasonable accommodation, up to the point of undue hardship of the DND and the CAF. A person with limited mobility, their delegated manager and the local parking authority must work in partnership.
5.6 Providing parking, either accessible parking in accordance with the TB Accessibility Standard for Real Property or regular parking located nearest to the entrance, is one of many options to provide barrier-free employment, though not necessarily the most appropriate in all circumstances. A case-by-case assessment is normally required. If certification has been provided that a person has limited mobility, and the person requests parking as a means of accommodation, the local parking authority must undertake to accommodate such a request up to the point of undue hardship.
5.7 At a custodial facility, the amount of required accessible parking in relation to the total amount of parking is determined in accordance with the TB Accessibility Standard for Real Property. If the amount of accessible parking at a custodial facility is insufficient to meet the demand, a local parking authority must give priority to persons with limited mobility in allocating additional operational requirement parking. A local parking authority may also consider other options such as the reconfiguration of parking to provide additional accessible parking spaces or designation of regular parking spaces nearest to the entrance as reserved for persons with limited mobility who do not require mobility aids, e.g. who do not necessarily require a wider accessible parking space.
5.8 At a non-custodial facility, the local parking authority must assess whether a person with limited mobility may acquire suitable parking on their own directly from a commercial parking operator. The local parking authority must provide assistance in this regard as required. If suitable parking cannot be acquired directly by the person, due consideration must be given by the local parking authority to having the parking acquired by PWGSC and making it available to the person at the fair market value. If suitable parking cannot be acquired or circumstances dictate that other means of accommodation may be more appropriate, the case must be referred to the delegated manager for consideration in accordance with DAOD 5015-0.
5.9 If the physical limitations of the person do not meet the limited mobility definition of this DAOD but the person's delegated manager is of the opinion that parking may be the appropriate means of accommodation, a request for parking may be submitted by the delegated manager to the local parking authority for consideration. Should the request not be approved by the local parking authority, the delegated manager retains responsibility for finding an appropriate means of accommodation.
Certification of Limited Mobility
5.10 Provincial and territorial standards for the issuance of accessible parking permits vary and may not meet the definition of limited mobility in this DAOD. It may also be difficult to ascertain if the permit was issued in regard to limitations in the mobility of the person applying for parking.
5.11 A provincial or territorial accessible parking permit is sufficient certification if the local parking authority is satisfied that the standards for its issuance in the applicable province or territory meets the definition of limited mobility in this DAOD and that it has been issued in respect of limitations in the mobility of the applicant, for as long as the permit remains valid. If either of these requirements is not met, certification from a recognized health care practitioner is required. Certification is in regard to physical limitations only and should not detail the underlying medical condition.
5.12 As the definition of limited mobility in this DAOD is based on the standard for a federal Disability Tax Credit Certificate related to walking, a letter from the Canada Revenue Agency (CRA) stating that the individual has been granted such a certificate related to walking is an acceptable form of certification.
5.13 Costs for obtaining any certification must be borne by the individual and are not reimbursable.
Parking for the Executive (EX) Group and Equivalent Positions
5.14 The DND and the CAF are not required to secure parking for the DND EX group and senior CAF member equivalent positions. They should be provided parking under the same operational and DSP considerations as other workers, consistent with the principles of this DAOD.
Transient and Visitor Parking
5.15 A local parking authority may designate transient and visitor parking at a custodial facility or acquire such parking at a non-custodial facility.
Note 1 – Transient parking is for short-term use in support of DSP objectives such as parking at a base or wing near a physical fitness facility, medical clinic, central administrative building or other central service facility.
Note 2 – Visitor parking is required to serve the public as mandated by the DSP. Visitor parking is for use by members of the public, not workers.
6. Parking Charges and Fair Market Value
6.1 Charges for worker parking provided by the DND and the CAF must be set at the fair market value for all users. For parking under the control of the DND and the CAF, the local parking authority must implement charges at the fair market value as soon as possible, while providing a 30-day notice to workers of any adjustment to the charges.
Reduced Parking Charges
6.2 Only DSISSS may authorize, on behalf of the DM, parking charges that differ from the fair market value. Parking charged at less than fair market value may result in a taxable benefit being reported. Approval must be obtained from DSISSS through the chain of command.
Fair Market Value
6.3 The fair market value of a parking spot is generally the highest price that could be reasonably charged for the use of that spot in an open market, i.e. the market price for a similar spot in the surrounding area. It is derived using an accepted valuation methodology. Adjustments for significant differences in characteristics of the parking provided are considered, e.g. sheltered parking versus open air. The fair market value and the resulting charges must be inclusive of the taxes applicable to parking under the Excise Tax Act, provincial sales tax legislation and other applicable legislation. The fair market value directly influences decisions regarding parking administration and taxable benefits.
Fair Market Value at Custodial Facilities
6.4 At a custodial facility, the local parking authority must obtain a fair market value assessment from the RPB if worker parking is provided. The list of custodial facilities to be assessed by the RPB is produced in collaboration with local real property officers, the DSISSS and the Director Real Property Management. The DSISSS is responsible for liaison with the RPB and identifying a central funding source to conduct a national parking study of all DND and CAF worker parking at least every two years.
6.5 DND and CAF facilities have diverse and distinct characteristics, from bases and wings spanning several kilometres in rural areas, to small facilities located in urban areas such as armouries. For the purposes of establishing the list of custodial facilities to be assessed by the RPB, a defence establishment having an uninterrupted stretch of land would be considered as one facility, e.g. a base or wing, or a large installation such as a dockyard. Separate bases, stations and buildings that do not have an uninterrupted stretch of land would be considered as separate facilities. This is generally reflected in the location code in the Defence Resource Management Information System (DRMIS).
Fair Market Value at Non-Custodial Facilities
6.6 At a non-custodial facility under the responsibility of the RPB, the fair market value is determined in accordance with the PWGSC Custodial Parking Policy. The RPB assesses fair market value through a national parking market study. A local parking authority may challenge the fair market value within the provisions of the Custodial Parking Policy, but only for parking that is subject to reimbursement by the DND and the CAF to PWGSC, i.e. where the parking is provided to the DND and the CAF through an occupancy instrument. If a local parking authority is of the view that the characteristics or conditions of use of worker parking under their authority differ from those on which the fair market value was established, the local parking authority may seek DSISSS authorization to adjust the charges.
Note – While the term "fair market value" is used in this DAOD given its use by the CRA in the determination of a taxable benefit for employees, the term "market value" is used in the Custodial Parking Policy.
6.7 A local parking authority may apply through DSISSS for additional assessments for circumstances not covered in the national parking market study, e.g. after-hours parking for shift workers, or for parking at a non-custodial facility which is not under the responsibility of the RPB. These additional assessments are provided by the RPB.
6.8 At a non-custodial facility, one portion of the parking may be rented out directly by a commercial parking operator to customers, and another portion allocated to the DND and the CAF, who in turn may make it available as worker parking. The parking charges set for customers by the commercial parking operator are at the fair market value for that facility. It may differ from that assessed by PWGSC as the market value may be reassessed only every two years, while the commercial parking operator may continually adjust the parking charges to reflect changing market conditions. Charges for worker parking provided by the DND and the CAF at that facility must be promptly adjusted by the local parking authority to reflect the parking charges set for customers by the commercial parking operator.
Fair Market Value for Shift-Worker Parking
6.9 Commercial parking charges are more common during regular weekday business hours. Moreover, market surveys conducted by the RPB valuation program typically consider monthly parking charges which often cover the 06:00 to 18:00, Monday to Friday timeframe.
6.10 At a parking facility with a fair market value greater than $0, the local parking authority must determine the best means of accurately establishing the fair market value for shift workers. The fair market value must represent as accurately as possible the parking charges that a shift worker could be expected to pay for parking on the market within the surrounding area if such charges are greater than $0. Otherwise, the applicable methodology for the assessment of fair market value for custodial facilities (see paragraphs 6.4 and 6.5), or that for non-custodial facilities (see paragraphs 6.6 to 6.8), must be followed. A local parking authority may obtain further guidance from the DSISSS as required.
Fair Market Value Reassessment
6.11 The fair market value is reassessed at least once every two years. A local parking authority should ask for reassessment of the fair market value sooner if appropriate, e.g. if the recent opening of a commercial parking facility in the surrounding area has made a noticeable change in the conditions of the local market. This avoids conferring a taxable benefit if charges are not promptly adjusted.
6.12 The CRA or Revenu Québec, as applicable, could reassess and retroactively adjust the fair market value for income tax purposes as a result of an employer compliance audit. A local parking authority must adjust charges to the fair market value determined CRA or Revenu Québec no more than 30 days after having been informed and, if previous charges were below the adjusted fair market value, must report a taxable benefit from the date the fair market value increased as determined by CRA or Revenu Québec, to the date of adjustment. A local parking authority may not retroactively adjust parking charges.
Charges for Limited-Mobility Parking
6.13 The DND and the CAF are generally not required to provide free or subsidized parking to persons with disabilities. Charges for parking provided to persons with disabilities, including the wider accessible parking under the TB Accessibility Standard for Real Property, must be the same as those for a reserved parking space within the parking facility in question.
7. Worker Parking Allocation
Allocation at Custodial Facilities
7.1 The need for controls on the allocation of worker parking at a custodial facility depends on the following two factors:
- worker parking has a fair market value greater than $0; and
- the demand for worker parking exceeds the amount of worker parking available.
7.2 Subject to paragraphs 7.3 and 7.4, for worker parking that has a fair market value greater than $0, controls are required to ensure the collection of charges, the reporting of taxable benefits and proper recordkeeping for income tax auditing purposes.
7.3 A parking facility in an area with a fair market value greater than $0 may be administered as "scramble parking" if there are significantly fewer spaces than there are workers who wish to park. Accordingly, on any given day, whether or not a worker is able to find a parking spot is uncertain. When determining if scramble parking is to be in effect, a local parking authority must:
- take into account the number of parking spaces regularly needed to accommodate workers desiring a parking space, not the number of parking passes issued;
- ensure that all parking within the parking facility is available on a first-come, first-served basis only, with the possible exception of parking for persons with limited mobility; and
- ensure that there are no arbitrary restrictions on access by workers to the parking facility.
7.4 Scramble parking is a taxable benefit. However, as it is administratively impossible to determine its value to users due to its uncertain availability, there are no charges and taxable benefits are not reported. A local parking authority must consult DSISSS prior to administering parking as scramble parking, given the potential consequences should a CRA or Revenu Québec audit determine that the conditions were not met, i.e. a retroactive taxable benefit and reassessment of past individual tax returns by the CRA or Revenu Québec for all potential users of that parking facility.
7.5 If the amount of available worker parking meets or exceeds the demand, parking controls may not be required unless the parking has a fair market value greater than $0.
7.6 If the demand is greater than the amount of worker parking available and scramble parking is not implemented, parking controls are required and the local parking authority must establish a parking committee to ensure a fair system of allocation. The local parking committee is chaired by the local parking authority, or an appropriate delegate, and its role is limited to recommending criteria for an equitable allocation of worker parking and the management of waiting-lists.
Allocation at Non-Custodial Facilities
7.7 At a non-custodial facility, worker parking should be obtained directly from the commercial parking operator or the third-party parking manager hired to administer parking at a Crown-owned facility under the administration of another department. The amount of worker parking under the control of the DND and the CAF at non-custodial facilities should be very limited and reflect specific DSP needs. It is normally reserved for specific persons or group of persons, and appropriately administered as determined by the local parking authority.
Limited-Mobility Parking at Custodial Facilities
7.8 The allocation and use of limited-mobility parking at a custodial facility depends upon whether parking controls are required.
7.9 If parking controls are not required, parking would generally be open for use by all. Under these circumstances, parking designated as accessible parking would be available to any holder of a valid provincial or territorial accessible parking permit.
7.10 If parking controls are required, i.e. there is greater demand than available spaces and the fair market value is greater than $0, limited-mobility parking would be specifically reserved, whether or not scramble parking is used, for use by those individuals who have provided proper certification in accordance with this DAOD. In these circumstances, a provincial or territorial accessible parking permit is not sufficient and a Government of Canada designated parking decal would be required.
Limited-Mobility Parking at Non-Custodial Facilities
7.11 At a non-custodial facility, limited-mobility parking under the control of the DND and the CAF, other than visitor parking designated as accessible parking, must be specifically assigned and a Government of Canada designated parking decal would be required.
8. Parking Management
Management of Worker Parking
8.1 Consistent with responsible financial management, a local parking authority may entrust the management of worker parking under their control to a commercial parking operator if it is deemed feasible to do so in light of the distinctive security and operational environment at the defence establishment. A local parking authority must consult with their local procurement officer on the terms of any such contract and how to obtain it. A local parking authority may also assign the administration of worker parking to a DND employee or a CAF member.
Parking for Contractors
8.2 As indicated in paragraph 3.6, parking for persons hired under a contract of employment or a contract for services with the DND and the CAF is considered worker parking for purposes of this DAOD if their ordinary place of work is a defence establishment. However, any person hired under a contract for construction, building maintenance or associated consulting through Defence Construction Canada, DND or PWGSC, whose place of work is only temporarily a defence establishment, is considered a visitor for purposes of this DAOD.
Collection of Parking Revenues
8.3 A local parking authority must determine the appropriate method of collecting parking revenues for worker parking under their control in light of the specific circumstances of each defence establishment. The local parking authority must discuss the method of collection with their supporting regional departmental accounting office. Collection must be by the following means:
- payment to a DND or CAF parking manager or third-party manager by cash, cheque or monthly debit from a bank account or credit card;
- payroll deductions for a DND employee or CAF member; or
- metered parking.
Management of Parking Revenues
8.4 In accordance with Financial Administration Manual (FAM) Chapter 1018-1, Managing Public Revenue, only recoveries of parking revenues for custodial facilities may be respent at the local level. As the collection methodology, e.g. payroll deduction, may not provide for inclusion of the local financial coding in the transaction, the local parking authority must discuss, with their supporting regional departmental accounting office and command or group comptroller, the process for transfer to their local financial coding after taxes have been remitted to CRA or Revenu Québec, as applicable.
8.5 Parking signage must conform to the TB Federal Identity Program Policy.
9.1 A local parking authority must maintain records with respect to the implementation of this DAOD in accordance with the Defence Subject Classification and Disposition System.
9.2 A local parking authority must maintain all supporting financial documentation:
- in accordance with the Government Contracting Regulations if contracts have been let;
- for the collection and administration of parking revenues;
- for the determination of the fair market value; and
- for the administration of taxable benefits related to parking.
Consequences of Non-Compliance
10.1 Non-compliance with this DAOD may have consequences for both the DND and the CAF as institutions, as well as DND employees and CF members as individuals. Suspected non-compliance will be investigated. The nature and severity of the consequences resulting from actual non-compliance will be commensurate with the circumstances of the non-compliance. Consequences of non-compliance may include one or more of the following:
- a negative employer compliance audit by the CRA or Revenu Québec;
- reassessment of past individual tax returns by CRA or Revenu Québec for all workers who may have had access to a particular parking facility;
- the withdrawal of the privilege of parking on a defence establishment;
- the application of specific consequences as set out in applicable laws, codes of conduct, and DND and CAF policies and instructions; and
- other administrative or disciplinary action, or both.
Note – In respect of the compliance of DND employees, see the TB Framework for the Management of Compliance for additional information.
11.1 The following table identifies the responsibilities associated with this DAOD:
|The ...||is or are responsible for ...|
local parking authorities
Acts, Regulations, Central Agency Policies and Policy DAOD
- Excise Tax Act
- Federal Real Property and Federal Immovables Act
- Financial Administration Act
- Government Property Traffic Act
- Income Tax Act
- Québec Taxation Act
- Government Property Traffic Regulations
- Government Contracts Regulations
- Income Tax Regulations
- Framework for the Management of Compliance, Treasury Board
- Federal Identity Program Policy, Treasury Board
- Policy on Management of Real Property, Treasury Board
- Accessibility Standard for Real Property, Treasury Board
- Custodial Parking Policy, Public Works and Government Services Canada
- DAOD 1004-0, Parking
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