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