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SR-417-010 (12) PCD:SF:EG:F:\pcd\share\2001Council Report\Coastal Rcmd2001 Council Meeting: March 6, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Report on the Status of the Summer 2000 Beach Parking Program and Recommendation to Authorize the City Manager to Implement Additional Parking Rate Program Measures Beginning Summer 2001 and Adopt a Resolution Establishing an $8 Maximum Allowable Parking Rate on the Santa Monica Pier Deck and Beach Parking Lots INTRODUCTION This report evaluates the parking measures implemented during Summer 2000 and presents recommendations to be implemented Summer 2001. BACKGROUND At its meeting held March, 28, 2000, City Council authorized the implementation of a Beach Parking Rate Program for Summer 2000. The measures were part of a larger Coastal Parking and Circulation Study that was completed in March 2000, to develop a comprehensive set of strategies to improve parking utilization and circulation within the coastal area of the City. A commitment was made to evaluate the results of the program and report to Council any further recommendations. The program implemented starting Memorial Day Weekend 2000 included the following elements: 1 ? Short-Term Parking: A total of 225 short term parking spaces were created in three existing beach lots: the entire 1640 Appian Way Lot (68 spaces), the mid-section of the 2030 Barnard Way Lot (89 spaces) and the northern section of the 2600 Barnard Way lot (68 spaces.) The spaces are available at a rate of $1.00/hour for a 2-hour maximum stay. ? Reduced All-Day Rate in South Beach Lots: The all-day parking rate was reduced from $7.00 to $5.00, year-round, in the 2030 and the 2600 Barnard Way lots, affecting approximately 2,109 spaces. ? Additional On-Street Meter Spaces: A total of 36 new on-street metered spaces have been added, including: 12 spaces on Bay between Ocean and Appian Way; 4 spaces on Ocean Park Boulevard, just west of Neilson Way, and approximately 20 spaces have been designed and will be added on Ocean Avenue between Pico and Bicknell as part of the Phase 1 Crosswalk construction that will take place later this year. The meters adjacent to the beach areas were increased from $.50/hour to $1.00/hour to be consistent with the hourly rates in the new short-term beach lots. ? Street Sweeping Schedule Modifications: The street sweeping schedule was modified to allow early morning parking at approximately 160 on-street spaces in the coastal area. ? Coordination with Caltrans on Proposed Signals: Caltrans is evaluating possible demand activated signals to facilitate egress from the 1440 PCH lot onto PCH/10 Freeway; and at the 1150 PCH lot to facilitate northbound cars turning left into the lot. The study suggested these as safety and circulation improvements. The rates at the other beach and Pier lots, totaling approximately 2,875 spaces, were not changed pending the results of the program. The maximum rates for the beach and Pier lots were established in 1991 and 1998, respectively. The rate structure developed as part of the Coastal Parking and Circulation Study, completed before the March 28, 2000 City Council meeting, was designed to create congestion management incentives. The rates would be increased in the congested central area, including the Pier and adjacent lots, during peak times of the year and reduced 2 in more distant lots (e.g., the southern area) where ample parking is available. Only the reduced rates in the southern area were implemented in Summer, 2000. Evaluation of New Parking Rate Program for Summer 2000 The attached report ?Coastal Parking Utilization Evaluation? dated February, 2001 addresses utilization, revenue impacts and user perceptions about the new parking facilities and rates. Data was collected at all beach and the pier lots during the last two weeks of August, 2000. Intercept surveys were conducted in the new short-term lots during this same time period. Utilization, duration and intercept survey data was also collected at Main Street Lots 9 and 11 to assess beachgoer utilization of the Main street lots and awareness of the parking options closer to the beach. Where appropriate, the results were compared with the data collected in 1998. Key findings are as follows: Summer Parking Utilization: ? Beach Short Term Parking Lots: Weekend: The lots were heavily utilized and were completely full at various o times throughout the day, with the peak use occurring mid-day in the 2600 lot and later in the afternoon in the other two lots. However, approximately one-third of the weekend vehicles stayed beyond the 2-hour maximum time limit, thereby taking up spaces that could have been available for short-term parkers. Weekday: The 1640 lot was about 83% full on a summer weekday, while o the 2030 and 2600 short-term lots were only about half full. General Observations: Because of the short time frame in implementing o the program, a number of issues came up during the first several months of operation. The newly installed pay-by-space machines malfunctioned frequently, particularly at the outset of the summer. The malfunctioning was exacerbated by the fact that the parking operator was being replaced at the end of the summer and may have had less incentive to quickly address 3 operational issues. There were a number of enforcement issues that also needed to be ironed out, including those related to machine malfunctioning, ticketing procedures to address parkers entering during a round of parking enforcement and how to address permit holders. ? All-Day $5.00 Flat Rate in 2030 and 2600 Barnard Way Lots: Weekend: All-day parking use peaked at 72% in the 2030 lot and 91% in o the 2600 lot, which was much higher than the peak use in 1998. However, all the beach lots were more heavily used and the length of stays were generally longer compared to the 1998 count. It was not clear that the reduction in rates increased utilization within the lots. Weekday: The 2030 lot was about 16% full and the 2600 lot was about o 21% full at peak use during a summer weekday. General Observation: The reduced rate in the Southern Area was o implemented without the corresponding increase in the Central Area, so the full impact of the pricing incentives to manage congestion could not be evaluated. ? Main Street Lots 9 and 11: Weekend: The lots were heavily utilized, particularly during the Farmers? o Market. Lot 9 was completely full throughout the morning and stayed full until mid-afternoon. Lot 11 peak utilization was 72% at Noon. Weekday: Both lots peaked around 1:00 pm with peak utilization slightly o over half full. Summer Intercept Survey Results: ? Short-Term Beach Parking Lot User Interviews: 42% learned about the short-term parking from the signs and banners. o 15 % previously parked in the Main Street parking lots. o 31% previously parked in the flat-rate beach or Pier parking lots. o 27% had tried to park in one of the short-term lots earlier in the summer o and had left because they couldn?t find parking. 4 ? Main Street Lot Beachgoer Interviews: 20% of the parkers in the Main Street lots had the beach or beach bike o path as their destination. Over half of the beachgoer respondents use the lots at least once a week, o or more, to go to the beach. 33% of the beachgoers were unaware that there was public parking closer o to the beach. Over 90% of the respondents were unaware of the new short-term parking o lots and the reduced all-day rates. Summer Revenue Impacts: Total beach parking revenues were 13% lower than revenues collected in 1998 even though overall paying car count was 3% higher for all beach lots during Summer 2000. The lower revenues are, at least, partially attributed directly to the new short-term parking rates and the reduced all-day rates, although other factors also affected revenue. The revenue loss attributed to the parking program changes alone was $212,500 for the three Summer 2000 months (June, July and August), compared to the Summer of 1998. The increase in paying car counts coupled with the loss of revenue in the three short-term lots is consistent with the projection contained in the Coastal Circulation Study. The study model assumed a 10% increase in utilization for each $1.00 reduction in rates. The Summer 2000 results suggest that, as anticipated, the reduction in rates for the short-term parking did draw new users into the short-term lots, but this increase in vehicles was not enough to offset the loss in revenue caused by reduced long term and short term parking rates. 5 The total annual revenue loss for the three short-term lots and the two reduced rate all- day lots was anticipated to be $324,500 ($295,000 to the Beach Fund revenue and $29,500 in parking tax revenue to the General Fund.) Based on the summer revenue loss reported, the projection appears to be accurate. Visitor and Resident Passes The measures implemented last summer did not address parking permits that are issued to residents and visitors. Permit fees generate a small portion of parking revenue at the beach. However, as the numbers of permitees increase, they have the potential to displace visitors paying the daily rate, especially during summer days and weekends when overall demand and daily rates are highest. Since 1976 the City has established various monthly, annual and semi-annual permits for beach uses. As a result of consolidation of parking management and implementation of short-term parking, staff has identified several ways in which use of permits and permit rates may need to be modified for consistency and to reflect Council policy and Coastal Commission approval on the use of beach parking. These issues will be fully evaluated and information will be brought back to Council before the summer. Issues to Be Addressed While the Summer 2000 program was successful in terms of the overall acceptance and utilization, a number of issues have been identified that require follow-up. 1. Enforcement of two-hour maximum stay in short-term lots: Approximately 1/3 of the vehicles in the short-term lots overstayed the maximum time limit of two 6 hours. Aggressive machine maintenance and enforcement of the 2-hour limit will create more short-term spaces for beach-goers seeking short-term parking. 2. High demand for short-term beach parking during the week-ends and resulting revenue loss: The reduction in rates for the short-term parking did draw new users, but this increase was not enough to offset the loss in revenue. Adding more short-term beach parking will result in additional revenue loss, given the current $1.00/hr. rate. 3. Reduced all-day rates in Southern Area and creation of congestion management incentives: There was no clear indication that the reduced all-day rate of $5.00 in the two Southern Area lots created incentives to attract additional parkers. Increasing the Central Area rates during the peak season would produce a larger pricing differential and may help to create the desired congestion management incentives, if accompanied with adequate marketing. 4. Continued need to market beach parking program in Main Street area to promote awareness: Results of the intercept surveys in the short-term beach lots indicated that some people found the short-term beach parking because of the marketing and signage, indicating that these measures are effective. However, results of the intercept surveys in the Main Street lots indicated that many of the beach-goers who parked in the Main Street lots were not aware of the lots closer to the beach or the new short-term and reduced all-day rate programs, indicating the need for continued marketing and additional signage. 5. Confusion about use of permits: Implementation of the short-term parking areas created confusion about the applicability of various permits offered by the City. As these issues were sorted out, it became clear that the issue of permits has not been addressed for many years and requires attention. These issues will be addressed and provided as information to Council for future implementation. Recommended Modifications In response to the above observations and conclusions, a number of additional measures are recommended for implementation prior to next summer. The recommended rate revisions are summarized in Attachment 1. 1. Measures to Improve Utilization of Short-Term Parking Spaces: a) Improved Monitoring of Pay-By-Space Machines in the Short-Term Lots: Phone line connections are being added to the pay-by-space machines to provide real time feedback, via pager or computer, when machine 7 malfunctions occur. The new parking operator will also be providing additional staffing during the summer months to minimize machine downtime. b) Additional Parking Enforcement: A parking enforcement position will be dedicated to the short-term beach lots for the entire summer (May through September) so that the lots will be enforced continuously seven days/week during the hours of operation to ensure that the 2-hour maximum stay is enforced. Other times of the year parking enforcement will be covered as part of a beat. Additional signage is being added to the lots to clarify that violators will be ticketed after 2 hours. 2. Measures to Address High Level of Week-end Demand for Short-Term Parking: a) Prior to Summer 2001, staff is proposing to create new spaces in existing 2600 Barnard Way Short-Term Parking lot: restriping and reconfiguring the lot will add approximately 18 new short-term parking spaces. The additional spaces may result in a slight additional revenue loss if they attract vehicles that would otherwise park in the long-term area. However, it is also possible that the new spaces will attract new parkers. b) As a back-up plan to be implemented mid-summer or later, if utilization issues are addressed and the lots continue to be consistently filled to capacity, staff is proposing to convert more of the 2030 Barnard Way lot to short-term parking. This could be achieved by converting the two rows just east of the existing 2030 Barnard Way short-term parking and will add approximately 92 additional short-term spaces. Adding these short-term parking spaces will diminish Beach Fund revenues by approximately $50,000. 3. Measures to Address Off-Peak Week-Day Demand for Parking on Pier: a) A pay-on-exit rate of $.75 per ½ hour, with a $6.00 maximum, will be established on the Pier Deck during week-days, only, in the non-summer months to accommodate short-term visits to the Pier. The specifics of this rate are provided in Attachment 1. 4. Pricing as a Congestion Management Measure: a) Staff is recommending implementing the remainder of the ?Pyramid? rate structure by increasing peak rates for the Central Area parking lots, including the Pier lot and the lots adjacent to the Pier. Implementation of the rate structure will create additional congestion management incentives. Implementation of the higher rates in the Central Area during the peak season will also partially off-set the revenue lost by the reduced rates in the 8 Southern Area and the creation of the three short-term parking lots. Specific elements are described below and shown in Attachment 1. 5. Measures to market the parking rate program: a) Marketing continues to be a critical element of the program to inform people about their options. This is particularly critical to accomplish the congestion management objectives. It also was clear from the intercept surveys, both on Main Street and in the short-term lots, that additional marketing will be helpful. Banners, distribution of information pamphlets and new parking map will be elements of the program. b) Way-Finding Signs: Additional signs will be strategically added along Neilson Way and in the vicinity of the Main Street lots, as well as along Barnard Way to help visitors find their way to the short-term parking areas and the reduced rate all-day lots. Community Input: Residents and business representatives generally supported the "pyramid" rate structure when presented during last year?s workshops and meetings. More recently staff has met with representatives from the Pier Merchants and Main Street to review the proposed modifications to the beach and Pier parking program. Both the Pier and Main Street representatives were generally supportive of the recommended modifications. BUDGET/FINANCIAL IMPACT The additional program elements recommended in this report will improve the City?s overall revenue position within the Pier Fund, the Beach Fund and for parking tax revenues to the General Fund. Specifically: ? The net annual gain to Pier Fund is forecasted to be approximately $145,500 as a result of the increased all-day flat rate during the summer and weekends. 9 ? The Beach Fund will realize a gain $75,000 on an annual basis as a result of increasing the all-day flat rates by $1.00 in the Central Area during the summer months, compared to revenue impacts of the program adopted in March, 2000. The recommended program, including the changes adopted last year, is forecasted to result in an annual net loss of a $218,000 in beach parking revenues as compared with the estimated loss of $295,000 for the program adopted in March, 2000. Note that if the additional 92 short-term spaces are added in the 2030 lot (Recommended Modification #2b), the forecasted revenue loss would increase by another $50,000 (including $4,500 in parking taxes) annually. ? The General Fund will gain an additional $22,000 in parking facility tax revenues from the changes noted above. The program is anticipated to be implemented for the Memorial Day, 2001 weekend and result in additional revenue of approximately $30,000 in the current fiscal year. The annualized revenue gains described above will be reflected in the FY?01-02 Budget. Funding for the simple parking lot improvements, marketing and new signage is available in Account #C01045400.589000. The dedicated parking enforcement position is already included in this year?s budget. 10 RECOMMENDATIONS Staff recommends that the City Council take the following actions: 1. Authorize the City Manager to implement the recommended Beach and Pier Parking Pricing Program. 2. Adopt the attached Resolution increasing the maximum rate for the Santa Monica Pier Deck Lot and the beach lots to $8.00 per day. Prepared by: Suzanne Frick, Director, Planning and Community Development Ellen Gelbard, Deputy Director Planning and Community Development Lucy Dyke, Transportation Planning Manager Oscar Delgado, Parking Coordinator Barbara Stinchfield, Director, Community & Cultural Services Elaine Mutchnik, Acting Open Space Manager Jeff Mathieu, Director, Resource Department Mark Richter, Manager Economic Development Capt. Jacqueline Seabrooks, Police Department Chief James T. Butts, Police Department Attachments: Coastal Parking Rate Recommendations (Attachment 1) Resolution increasing maximum beach and pier parking rate Coastal Parking Utilization Evaluation Report 11 CITY COUNCIL MEETING: March 6, 2001 ITEM: 8A Coastal Parking Rate Recommendations (Attachment 1) Coastal Parking Utilization Evaluation Report THESE ITEMS ARE NOT AVAILABLE ELECTRONICALLY. ITEM AVAILABLE IN THE CITY CLERK?S OFFICE. 12 Resolution Number _______(CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTION 1A OF RESOLUTION NUMBER 9283 (CCS) INCREASING PARKING LOT RATES ON THE SANTA MONICA PIER; AMENDING SECTION 1A OF RESOLUTION NUMBER 8231 (CCS) INCREASING BEACH PARKING LOT RATES; AND FINDING THAT PARKING LOT RATE INCREASES ARE EXEMPT FROM THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Subsection A of Section 1 of Resolution Numbers 9283 and 8231(CCS) are amended to read as follows: A. The rates to be charged shall be fixed by the City Manager from time to time, but in no event shall exceed Eight Dollars ($8.00) per day. SECTION 2. The City Council finds that the establishment, modification, structuring, restructuring, or approval of parking lot rates on the Santa Monica Pier and beach parking lots contained in Section 1 is for the purpose of meeting operating expenses, including employee wage rates and fringe benefits and/or obtaining funds for capital projects necessary to maintain service within existing service areas. SECTION 3. The City Council hereby finds as follows: A. The increase in parking lot rates on the Santa Monica Pier and beach parking lots is established to meet operating expenses, including employee wage rates and fringe benefits, and/or obtain funds for capital projects necessary to maintain service within existing service areas. 13 SECTION 4. Pursuant to Public Resources Code Section 21080(b)(8), the rate increase provided for in Section 1 is exempt from the provisions of the California Environmental Quality Act of 1970, Public Resources Code Sections 21000 et seq. SECTION 5. Resolution Numbers 5421 and 1786 (CCS) are repealed. SECTION 6. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ___________________________ MARSHA JONES MOUTRIE City Attorney 14