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SR-417-007 (18) tf /1 /(J//-::f- ;' RM:JPM:JM:sl (8/04) SR0810 Council Meeting: 08/10/93 Santa Monica, California TO: City Council and Redevelopment Agency FROM: City staff SUBJECT: Recommendation to Approve an Attendant Parking Program at the Santa Monica Place Parking Facilities INTRODOCTION This staff report recommends that the Redevelopment Agency and the City Council approve an Attendant Parking Program at parking structures No. 7 and No. 8 located at Santa Monica Place. This program would convert the parking facilities from free parking to paid attendant parking during the evening hours from 6:00 p.m. to 11:00 p.m., Thursday through Sunday. The report also recommends that the City Council authorize the City Manager to negotiate and execute an amendment to the Sublease Agreement to permit an attendant parking program, and to negotiate and execute any agreements necessary to carry out the terms and conditions of the parking program. B.ACKGROUND The construction of city parking structures No. 7 and No. 8 at Santa Monica Place was financed with the proceeds of parking Lease Revenue Bonds issued in 1978. At that time, the Redevelop- ment Agency entered into a lease agreement with the city, and in turn the City entered into an Agreement for Sublease of the parking facilities with Santa Monica Place Associates (SMPL). The parking facilities occupy a total of 2.65 acres at the opposite ./ ends of the enclosed shopping mall. structure No. 7 at Broadway and 4th Street is a seven-level garage w~th 1,120 spaces and structure No. 8 at Colorado and 2nd Street is a six-level garage with 950 spaces. The two parking structures were intended to serve as support parking for Santa Monica Place. The Sublease Agreement estab- lished a three hour free parking limit with the condition that any charge for parking required City and Agency approval. Several conditions have changed since the structures were built that may justify a change from free to paid parking during the proposed period. The renovation of the Third street Promenade has significantly increased the number of visitors to the down- town area. Similarly, the implementation of metered parking in the six Bayside Distr~ct parking structures since 1987 has shifted more v1sitors to the Santa Monica Place parking facili- ties due to the unattended free parking opportunity. SMPL estimate that between 70% to 80% of the evening users of the two parking structures are going to the Third street Promenade and other destinations in the Bayside District. The City's parking utilization studies confirm that the structures are between seventy to n~nety percent full during the early evening hours and this high usage continues after 9:00 p.m. when Santa Monica Place shops are closed. 2 " DISCUSSION The increased usage of the Santa Monica Place parking structures during the evening hours has impacted the security, operation, and cleanliness of the parking facilities. SMPL has the respon- sibility under the Sublease Agreement to operate the parking structures. Prior to the revitalization of the Third Street Promenade, evening use of the structures ~as minimal and did not require personnel to manage traffic or secure the premises. However, with the early evening and late night visitors to the movie theaters and restaurants, the need for additional opera- tions personnel has become crit~cal. In addition, feedback from the merchants and customers to SMPL indicates that the congestion and lack of parking has become a deterrent to convenient parking. Furthermore, the city has received an increasing number of complaints from users of these parking structures who do not see the posted three hour limit and receive a citation after spending an evening in the downtown area. In response to these concerns, SMPL is proposing a program with a professionally managed group of attendants and security officers to alleviate the queuing and congestion aspect. ATTENDANT PARKING PROGRAM The following highlights the key operational points of the parking program: 3 ~/ o The event style paid park1ng will be in effect Thursday through Sunday evenings from 6:00 p.m. to 11:00 p.m. o The $2.00 flat fee w1ll be paid to attendants upon enter- ing the structures and will permit individuals to park with no time limitation. o The program will be professionally operated with parking attendants with sufficient personnel to control traffic flow and queuing. o Additional security officers and custodians will be assigned to the structures during the program hours. o Validation coupons with $2.00 value will be pre-sold to merchants in Santa Monica Place and the Bayside District at face value. Participating merchants will establish their own criteria for disbursement. In summary, the parking fee will be charged only during the evenings, between 6:00 p.m. and 11:00 p,m., Thursday through Sunday. These hours are typically the peak times of parking demand for the Promenade. The $2.00 flat fee for five hours of parking will serve to balance the current situation of free parking in the Santa Monica Place facilities and metered parking ($ 0.50 per hour) in the six municipal parking structures, It is anticipated that the proposed attendant parking program at Santa Monica Place will distrlbute parkers more evenly among the downtown structures since all facilities w11l charge for parking after 6:00 p.m. The program will provide cleaner, more conve- 4 ~. nient and secure parking facilities for visitors to the downtown area, PARKING PROGRAM APPROVALS The sublease between the City and SMPL contains a number of provisions requiring City and Agency approval prior to the imposition of a charge for parking. The city Attorney's office has reviewed the sublease provisions and has required SMPL to obtain a legal opinion that public parking continue to be provid- ed within the definition of the Internal Revenue Code, thus retaining the tax-exempt status of the original bonds. In addition, the City Attorney requested a determination from the Coastal Commission on whether or not a coastal permit was re- quired. SMPL retained the law firm of O'Melveny & Myers to render an opinion regarding the status of the bonds initial tax-exempt designation under the proposed parking plan. Such an opinion was prepared and delivered in December 1992, and updated in August 1993, stating that the implementation of the parking attendant program will not in and of itself cause the parking facilities to fail to qualify as public parking, and will not jeopardize the tax-exempt status of the bonds. Agency staff in cooperation with SMPL obtained Coastal Commission approval in January 1993 to establish the attendant parking 5 ~ program. The Commission found that the program would not inter- 'fere with public access to the coast. The only condition set is that any change in the time, days, or rate charged for parking would require an amendment to the permit. BUDGET/FISCAL IMPACT Under the terms of the Sublease Agreement between the City and Santa Monica Place Associates, Santa Monica Place pays for all capital and operational costs related to parking. SMPL will pay for the purchase and installation of attendant parking booths and equipment~ SMPL will also pay all operating expenses related to the attendant parking program including labor ( attendants, security, custodians) and maintenance (elevator repair, graffiti removal, supplies, etc.). Based on car counts taken by SMPL over a three month period, and the C~ty's parking utillzation data, it is estimated that an average of 2,500 cars will park each night (Thursday through Sunday) in the two structures. Such usage would generate $100,000 to the City's General Fund in park~ng taxes and $200,000 to the Redevelopment Agency for a total annual revenue of $300,000~ An appropriate portion of the payment from SMPL to the Redevelopment Agency will be paid to the General Fund to cover the loss in parking citation proceeds. 6 " RECOKHENDATION staff respectfully recommends that: 1. The City council approve the paid attendant parking program at City parking structures No. 7 and No. 8 located at Santa Monica Place, and; 2. The Redevelopment Agency approve the paid attendant parking program at City parking structures No. 7 and No. 8 located at Santa Monica Place, and; 3. The City Council authorize the City Manager to negotiate and execute an amendment to the Sublease Agreement to allow the paid attendant parking program at City parking struc- tures No. 7 and No. 8 located at Santa Monica Place, and; 4. The city council authorize the City Manager to negotiate and execute any agreements necessary to carry out the terms and condit1ons of the program. Prepared by: Jeff Mathieu, Director of Resource Management Judith Meister, Asset Manager 7