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sr-121410-3l~~ ctroe City Council Report Santa Monica City Council Meeting: December 14, 2010 Agenda Item: 3 L To: Mayor and City Council From: Carol Swindell, Finance Director Subject: Resolution Setting Parking Rates Recommended Action Staff recommends that City Council adopt the attached Parking Rates Resolution, establishing parking rates for temporary lots in downtown, establish a free parking period on Sunday mornings in the downtown parking structures, and making permanent the Sunday Main Street Farmers' Market Parking Pilot Program. Executive Summary Over the past year, staff has focused on implementing various parking improvements to improve the efficiency of the operations and to further the goals of the Walker Parking Study. This effort has resulted in the identification of various ways to improve parking operations that have an impact on existing stakeholders. Providing free parking on Sunday mornings in the downtown structures and for the Sunday Main Street Farmers' Market are two practices that staff recommends continuing. Council has taken actions necessary for the Finance Department's Parking Operations section to operate the Main Street lots and temporary lots in the downtown. This report also recommends establishing prices for these parking lots consistent with nearby rates. This recommendation does not reduce revenues from current levels. If Council chooses not to continue these practices, parking revenue would increase. Discussion The fiscal year 2010/11 Capital Improvement Project Budget. includes funding to automate all downtown structures. This automation will allow the downtown structures to operate 24 hours aday/7 days a week, reflecting the Council-approved parking rates. Currently, the structures are not staffed when the cost of doing so exceeds the potential revenue. As a result, there are currently periods of time when the downtown structures provide free parking because no staff is available to collect revenue. The most significant period of free parking is on Sunday mornings, and this historical practice has 1 also been consistent with commitments originally made to Sunday morning parkers in the 1960s. In order to implement the automated parking system and not impact existing users, staff recommends modifying the Parking Resolution to include a free parking period downtown on Sundays. In 2006, the City began a pilot parking program for the Main Street Farmers' Market which provides for validated parking at the South Beach Lots at an annual value of approximately $122,837. Sunday Morning Parking In 1961, the City of Santa Monica purchased a parcel on Fourth St. from St. Augustine's Episcopal Church for $57,500. The lot was subsequently used for construction of Parking Structure 1. Records from the early to mid-1960s speak to the intention of the City at that time to continue to provide free parking to church patrons. In 1987, a staff report related to the installation of meters in the downtown parking structures discussed issues related to Sunday morning parking. At that time, staff identified the need to treat all the users of downtown parking equally and identified locations in the structures and surrounding streets that had free parking that would meet their needs. In the 1980s, the City converted the downtown structures from meters to the current staffed system. Since that time, the structures have not been staffed Sunday mornings due to the cost of staff compared to minimal amount of potential revenue. The City intends to automate all downtown parking structures in the downtown this fiscal year and has funding in the Fiscal Year 2010/11 Capital Improvement Program Budget for this purpose. As part of this plan, staff has discussed with various stakeholders that the operations of the structures will be converted to reflect the 24-hour rates Council has adopted. This discussion has resulted in input from stakeholders who have historically received free parking on Sunday mornings. The usage of the structures on Sunday mornings is significantly lower than other days and structures are less than 20% occupied prior to 10:00 a.m. with heavier usage delayed until after noon. Most of the 2 retail establishments in downtown open later on Sundays, many as late as noon. In order to convert the structures to 24-hour operation and minimize impact to various stakeholders, staff recommends establishing free parking between 6:00 a.m. and 11:00 a.m.-and two hours free beginning at 11:00 a.m. on Sundays. This recommendation would result in any vehicle entering between 6:00 and 11:00 a.m. being able to park for free until 1:00 p.m., matching current practice. Implementation of this recommendation would result in a $26,000 decrease in projected additional revenue per year after implementation of the automated parking system which will allow for 24 hour a day operation. Currently, no revenue is generated Sunday mornings based on historical staffing of the structures. Main Street Farmers' Market Parking The Main Street Farmers' Market began a Pilot Parking Program on July 2, 2006, at the request of the Ocean Park Association (OPA) and the Main Street Business Improvement Association (MSBIA) who suggested ideas to reduce vehicular congestion on the commercial and residential streets near the Sunday Farmers' Market located at Main Street and Ocean Park Boulevard. The Farmers' Market program provides other parking accommodations for the primary lessees of this property (The Victorian and the Heritage Museum), farmers, vendors, volunteers and entertainers. The estimated annual value of the parking provided for the Main Street Farmers' Market is $122,837. Parking for the Sunday Farmers' Market consists of the following: 1. Validated parking at the beach parking lot located at 2600 Barnard Way. Sunday Farmers' Market patrons are given validations and are reimbursed their parking fee if they exit the beach lot by 1:30pm. The time limit was set to discourage validated patrons from occupying beach parking spaces all day. The Market validates about 200 customers each week with an ahnual value of approximately $83,200. 3 2. The Farmers' Market currently issues about 92 free parking passes valid in the 2600 Barnard Way lot on Sundays from 7:30 am - 2:30 pm. The number is expected to increase as the number of farmers, vendors, volunteers and performers increases. Currently, this parking has a value of $38,272 per year. The current usage is shown below: ~. x+,'~~.t&+r'~a~~~*' J k'q,~~x~~:r~lb '•/~,~~ F'. m' ~-~ Rn.v.f. ~k4~~~..r3~~iRS'i`"St~ Victorian ~SfA p~y}~{//~~ fj ~s rl ~ ~~i~J pj ~~, rc,. F~i~/~rY~Y~i~urt'~~~dr~~Y/eo~1~~+5~~rT~~~xf{~~....i~~rr''.,.+'Y,'R~f nV:~4, ~'~~~~~ 12 Heritage Museum 4 Vendors 65 (43 farmers + 23 retail vendors) Farmers Market Staff & Volunteers 7 Band (rotating each weekend) 4 Total 92 3. The meters on Ocean Park Boulevard between Main Street and Nielsen are designated as "HM" parking for Heritage Museum and Victorian for Heritage Museum volunteers and The Victorian staff/customers who are unable to use their property during market hours. The Farmers' Market staff issues these permits. Transportation staff installed signs at these meters indicating that they are reserved for permit holders. This results in a loss of approximately $1,365 annually. 4. Complimentary parking at the John Muir/ SMASH School. This parking, made available through a permit issued by the SMMUSD, allows Farmers' Market customers to park on the John Muir/SMASH School parking lot. The complimentary parking has been supported by the Main Street Merchants and Ocean Park Association. 4 Bicycle Parking Valet Service Program In addition to the free vehicle parking, free valet style bicycle parking service is available to cyclists who come to the Main Street Farmers' Market between 8:00 am and 2:00 pm. This program began on July 16, 2006 and, on average, is used by 200 cyclists each Sunday. The area for the bike valet uses about four to five spaces on Main Street. The bike valet cost $27,000 per year. 400 block of Colorado and 1326 Fifth Street Parking Rates Staff recommends that parking rates for the two downtown locations be set similar to public parking rate in Bayside District. The Walker Parking Study recommended elimination of two hours free and staff recommends setting rates in these lots that does not include two hours free. The attached resolution proposes a monthly parking rate of $121.00 per month and short-term parking at $1.00 for each 30 minutes. Main Street Lots Staff recommends that parking rates at the Main Street lots be set at $0.50 per 30 minutes and that this rate be in effect when the new multi-space pay-on-foot machines are installed. The current meter rate is $0.75 per hour. This rate will assist in offsetting the cost of increased maintenance to the lots. Financial Impacts & Budget Actions There is no projected budget impact, as these recommendations reflect current operating practices; however, foregone revenue as a result of these free parking programs associated with the Main Street Farmers Market is estimated at $122,837 per year. The anticipated revenue from operating temporary parking lots at the 400 block of Colorado is estimated to increase Big Blue Bus Fund Revenue by $450,000 and operating a temporary parking lot at 1326 Fifth Street is anticipated to increase general fund annual revenue of estimate by $175,000. Additional revenue will be included as 5 part of the midyear. budget process at accounts 41642.404410 (400 Colorado) and 01225.404420 (5~i' and Arizona) once start dates for operations of the two lots is known. Prepared by: Donald Patterson, Business & Revenue Operations Manager Approved: l Carol Swindell Finance Director Forwarded to Council: Rod Gould City Manager Attachments: Resolution 6 Reference Resolution No. 10551 (CCS).