While I find it hard to conceive of where they'll find the room at the water towers for parking, as long as parking restrictions on the streets remain as-is or get lifted/relaxed then this can only be an improvement to the supply of parking. So I don't think it will be productive to complain about the proposal if this is the case.
If street parking restrictions are to be stepped up/expanded then I think we DO have a problem as there's no way the total parking supply would be adequate due to the limited space near the towers.
I don't think they will be "lifted/relaxed" even with a parking lot in place. The residents don't really want people clogging up parking on the streets in front of their houses. I think with the new Parking Lot, you might see parking restrictions expanded, because there is an alternative place to park (the new Parking Lot).
In my mind, they don't have any idea what a monster they are creating with this "solution". On busy days/weekends, it will make things worse with a parking lot, as Bryce says, there will be people driving up and down the road looking for a space, when there is not enough to be had, they are going to cut a big chunk of forest and flatten it "pave paradise and put up a parking lot!"
I think they can restrict parking lower down and force people to ride a bit further. There is lots of parking that doesn't interfere with residents in and around Fromme, to name a few, Kilmer Park, Upper Lynn Elementary, Dempsey Rd west, Braemar Rd, if you are willing to pedal a little farther, Lynn Valley Field, Argyle Secondary, LV Mall, LV Center, plus many more places.
That's my 2 cents worth.