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SR-417-005 (5) . tj11/'() 05 C/ED:EDD:PC:JPM:pw INFORMATION ITEM /IIF~ e6. 1~-1J t<<)V 1 0 lQI\; Santa Monica, californiwoV 1 7 1987 November 31 1987 , FROM: The Mayor and City Council city staff TO: SUBJECT: Administration and operation of Parking Meters in the Downtown Parking structures INTRODUCTION This report provides City Council with information regarding the administration and operation of meters in the downtown parking structures and responds to concerns raised by the churches located in the Mall area. Mayor Conn and councilmember Reed requested on July 14, 1987 that staff meet with downtown church representatives regarding the hours of meter operation and inform council of the administrative and operating plan for the downtown parking structures. BACKGROUND On June 23, 1987 the city Council approved in concept the purchase and installation of parking meters in the six downtown parking structures and a concomitant reduction of the Mall Maintenance Fee which is levied against all holders of business licenses in the Third street Mall and Downtown Maintenance District. This action occurred as a result of an earlier Council concern that the Maintenance Feel enacted during August of 19861 was becoming a burden to the economic health of businesses on the Mall. council requested staff to evaluate the equity of the - 1 - . /#/,. ~... bj. 1,,*- e NOV 1 0 1981 IIW 1 7 1987 . . formula which determined the Maintenance Fee. To pursue the eva1 uation City staff and the Third street Development Corporation (TSDC) organized a representative group of District property owners, merchants, professional office tenants and the Chamber of Commerce to form a Joint Committee. City staff met with the Joint committee frequently to determine a fair and equitable level for the Maintenance Fee. Following an extensive review of the revenues and expenses generated by the District, it was the recommendation of the Joint Committee that the council should lower the Maintenance Fee from the prevailing five times business license tax to three times. To offset this reduction of revenue to the District, the Joint Committee further recommended that the Council approve the installation and use of parking meters within the six downtown parking structures. This latter recommendation recognized that the parking structures were the only viable district asset which could generate sufficient funds on an equitable basis. The recommendation of parking meters was submitted by the Joint Committee following extensive research and discussion. City staff provided the Joint Committee information about successful parking structure meter operations in other cities. Also, the City's Parking and Traffic Engineer provided consultation regarding meter equipment, pricing and term strategies. In addition to this information, the Joint Committee sought fe~dback from various community groups and organizations. The recommendation of meters was submitted by the Joint Committee - 2 - . . with a suggested outline of operations and has been refined by City staff as follows: 1. Allocation of Meters Having different user groups in the various parking structures made consideration of short and long-term parking meters imperative. A significant, existing parking problem identified by the majority of Mall groups and individuals was long-term employee parkers' control of the parking spaces on the lower levels of parking structures through early arrival in the morning hours. The short-term retail, restaurant or service business patron could seldom find parking available on lower levels of a structure and were discouraged by the need to proceed to a structure's upper levels during a brief visit to the Mall. To mitigate this problem, parking meters are allocated in the structures according to the following maximum time limits: 10% - one hour; 50% - four hour; and 40% - twelve hour. Generally, it was felt that the long-term parker utilizes the structure on a recurring, if not daily, basis and is more capable of parking in slightly less convenient spaces and utilizing the elevator system. In contrast, the short-term parker may be either a newcomer, unfamiliar with the elevator service to upper floors, or a shopper/consumer desiring to conduct a quick errand on the Mall and not willing to spend the time to access the upper floors. - 3 - . . Analogous to the turnover concept of green curb zones on many streets, the lower levels of the various parking structures were allocated one hour meters. The intent is to create frequent turnover of spaces for those desiring a brief visit to the Mall area. The middle levels of the various parking structures were allocated four hour meters for shoppers, restaurant patrons, day-time movie goers and persons conducting business in the Mall area. The majority of meters in the parking structures are four hours. Twelve hour meters are allocated to the upper levels of the parking structures to service the recurring office user or retail employee. These parkers are frequent, if not daily, users of the structures and have more tolerance to overcome the minor obstacles of accessing upper level parking spaces and riding elevators than a short-term parker picking up a prescription at a pharmacy. This long-term parking area provides ~ positive solution to the former problem of "parker switching" (To avoid the mandatory short-term time limit in the structures, long-term office parkers would frequently move and/or switch parking spaces in the structure causing unnecessary circulation problems and depriving other parkers the opportunity to utilize spaces). Finally, the twelve hour time period allows those arriving as early as 6 a.m. to make one payment for a complete day of parking. 2. Type of Meters A meter assembly consists of the base, pole and head. The pole and base are ancillary pieces of equipment to - 4 - . . support the meter head. The base can be mounted on the floor, or nearby wall. The pole can support either one or two meter heads. Installation specifications mandated wall mounted, dual meter head poles to create maximum space efficiency in the parking structures. The parking meter head contains the time, coin and display mechanisms. Several styles of meters were available for purchase including coin operated traditional display, coin operated digital display, optional coin/credit card digital display with space sensors. It was the recommendation of the city.s Parking and Traffic Engineer that the coin operated traditional display be utilized due to its dependable performance throughout the city. Furthermore, it was noted that the alternative models were relatively new and still subject to inconsistent performance and workmanship. The Joint Committee concurred that the coin operated traditional display was the desired meter head. They felt the large scale introduction of meters should not be further complicated by difficult to use machines, subject to frequent breakdowns. 3. Hourly Rate The City r s Parking and Traffic Engineer reviewed the range of meter rates established throughout the various City parking meter zones with the Joint Committee. With an intent to avoid the creation of hardships, the Joint Committee strongly encouraged setting meter rates SUbstantially below - 5 - . . rates of private downtown meter and operator lots. The actual rate of $0.25 per hour is equal or below public parking meter rates throughout the city and the lowest parking meter rate in the downtown area. The minimum coin deposit of $0.10 entitles the parker to a proportionate amount of meter time. 4. Change Machines Change machines have been ordered to mitigate possible inconvenience for parkers unfamilar with the meter operation. The majority of the metered spaces should experience repeated use by the same groups of patrons. It is anticipated that these parkers will quickly adapt to the meter operation and arrive at the parking structures with correct change. However, to assist the first time visitor or occasional - parking patron who does not having proper change, the Joint Committee requested that change machines be installed. These machines will be located on the ground floor in a safe, well lit area adjacent to the pedestrian entrance of each parking structure. The machines will accept one and five dollar bills. 5. Signage The principal signage objective is to adequately inform the parker of the $0.25 hourly meter rate, location of longer-term meters and location of change machines. The street frontage sign for each parking structure has been modified to advise that the facility has metered parking. - 6 - . . Upon entrance within the structure each floor is signed to indicate maximum meter period. Additional signs are being fabricated to state that longer-term meters are available on upper floors. In addition, signs are also being fabricated to identify location of change machines. 6. Hours of Operations Given the Mall District's operating and maintenance deficit and proposed low hourly parking meter rate, it was essential to the Joint Committee that the operating hours be maximized. The revenue proj ections from meter operations were the key factor determining the hours of the operations. The city.s Parking and Traffic Engineer forecasted annual average meter revenue at $400.00 for ten hour, daily usage. Based upon the first stabilized year of income for 1,734 meters, the average revenue is estimated at $693,600 for 3,640 hours of yearly operation. The Joint Committee.s recommendation for a reduction of the Mall Maintenance Fee from five times the City's Business License Tax to three times was dependent upon meter revenue generating nearly $700,000.00 per year. Accumulation of the 3,640 necessary hours of operation had to be balanced with the hours of highest parking demand to obtain the anticipated revenue. Unlike on-street meters that are not operational on Sundays and available to church and recreation users, the - 7 - . . meter operation wi thin the six downtown parking structures was proposed as a Council policy to generate a specific amount of revenue for the unique purpose of neutralizing the operation and maintenance deficit in the Mall District. Given the poor utilization of the parking structures at night, it was the consensus of the Joint committee that meter revenue would be insufficient to warrant enforcement of meter operations during these hours. Consequently, a consistent, daily schedule oriented to principally daylight hours of 8 a.m. to 6 p.m. was recommended. Future development of movie theatres and restaurants on the Mall are expected to increase parking usage and may result in a recommendation to expand or change meter hours. In transmitting its recommendation regarding hours of operation, the Joint Committee recommended that the hours be ,- established and maintained consistently and that exceptions, exemptions or changes should not be made which economically benefits private groups at the expense of the Mall District's operating and maintenance deficit. The Joint Committee felt the low hourly fee was an affordable fee for virtually any operator of a vehicle. FOllowing receipt of the Joint Committee's recommendations, City staff presented the meter concept to City council on June 23 I 1987 for approval. Subsequently, parking meter zones were amended, the ordinance established and meter purchase and installation approved. The meter program became operational on october 12, 1987. - 8 - . . DISCUSSION On July 14, 1987 a staff report was presented transmitting an ordinance modifying the Municipal code to add and amend parking meter zones to accommodate the six downtown parking structures. At that meeting Mr. Charles Douthat, representing First Presbyterian Church, expressed concern that the parking meter operation could impact patronage at the downtown churches. Mayor Conn instructed city staff to meet and confer with representatives of downtown churches and to report the findings back to Council. Meeting with Church Representatives On August 27, 1987 City staff and Third street Development corporation staff met with representatives of First Presbyterian Church, Unity by the Sea, and st. Augustine by the Sea to fully discuss all issues related to parking meter operations. City staff presented the tentative meter program and solicited the concerns of the three churches. Although the church representatives initially requested that parking meter hours be delayed until 1 p.m. on Sunday, the majority of the church representatives acknowledged that provision of unmetered parking for the early arriving, unpaid volunteers and low-paid church staff was their dominant concern. In regards to the church -goers, . the church representa ti ves expressed concern regarding convenience and the adjustments that church-goers would have to make to become acclimated to the parking meters. City staff explained the need to administer the meter program in an - 9 - . . equitable manner for all users of the parking structures including Farmers Market patrons, clients of social service agencies and Senior citizen groups. City staff concluded the meeting by agreeing to further study the matter. Following this meeting, city staff informed the three churches that unmetered permit parking spaces would be available on an unrestricted basis for Sunday use, thereby providing an abundance of unmetered spaces to all volunteers and low-paid church staff. At the current time, 624 unmetered parking spaces are available as follows: structure 1 26 ground level 92 upper levels structure 2 32 ground level 72 upper levels Structure 3 25 ground level 88 upper levels structure 4. 36 ground level 76 upper levels structure 5 31 ground level 50 upper levels structure 6 17 ground level 79 upper levels Each church is accessible to over 200 unmetered spaces just a block away, and an additional 200 within two blocks. It is anticipated that the total number of unmetered spaces will rise to nearly 700 in the near future as a result of restriping and parking structure improvements. None of the churches called or conveyed any disagreement with City staff regarding this plan to provide unmetered parking. - 10 - . . subsequent to learning of the proposed solution offered by city staff, representatives of First Presbyterian Church consulted directly with elected officials and the Press regarding their concerns. In doing so, these representatives inadvertently confused some of the information regarding issues pertaining to former and current assessment districts, payment of maintenance and operation fees and equitable provision of public facilities to private groups. Assessment Districts Representatives of First Presbyterian stated that a t1free parking guarantee 11 was provided by their participation in the former Downtown Parking and Business Improvement Assessment District formed in 1966. In fact, First presbyterian and the City executed Contract No. 3770 (CCS) on May 11, 1982 to specify the terms and conditions of the church's limited participation in the former assessment district. While this contract made no reference to the cost of parking, it did significantly reduce the church's financial obligation to the former assessment district and relieved the church of its responsibility to provide its own off-street parking facility. Through a series of refund payments by the city, the church's annual financial responsibility to the former assessment district was fixed at approximately $7,000.00. Regardless of property appreciation, the balance of the assessment payment is rebated by the city. In August of 1986, this assessment district was replaced by the Third street Mall and Downtown Assessment District when - 11 - . . Certificates of Participation were sold to defease old assessment district bonds and raise capital for the Mall Improvement Project. However, the City I s obligation to fix the church I s assessment at the negotiated 1982 level remained. The new assessment district established an annual credit against the parking component of the levy equal to 85.71% of the church t s total annual assessment. Consequently, the churchts responsibility to help retire assessment district debt related to building and capital costs is approximately one-seventh the amount typically paid by businesses in the Third street Mall and Downtown Assessment District. Maintenance and Operations Representatives of First Presbyterian stated that they are paying for maintenance of the parking structures and common areas of the Mall. In fact, the church is exempt from the Third street Mal~ and Downtown Assessment District Maintenance Fee and does not pay for maintenance and operation of either the parking structures or Mall common areas. Equitable provision of Public Facilities Representatives of First presbyterian asserted that the downtown churches are being singled out for unfair treatment and potentially suffer an infringement upon their ability to worShip. City staff believes that the City has made a significant accommodation for churches and other non-prOfit agencies in the assessment district by reducing the assessment levy and exempting these organizations from the Mall Maintenance Fee. - 12 - . . Hours of parking meter operation were established to coincide wi th peak parking structure demand and consistency of enforcement. A seven day a week, 8 a.m. to 6 p.m. schedule replicates the hours of greatest activity and usage of the parking structures. As the assessment district experiences future development, such as new theatres and restaurants which create an evening demand for parking structure usage, the hours of parking meter operations may be expanded. Regarding the operation of parking meters, equal treatment has been given to Farmers Market patrons, clients of social service agencies and Senior Citizen recreation activity participants. MOdifying parking meter hours to specifically promote church attendance would appear to create a significant inequity. Revenue Projections The operation of the parking meters seven days a week, ten hours a day is vital to the elimination of the assessment district t s maintenance and operation deficit. The revenue projections used to reduce the Mall Maintenance Fee did not include any concessions or special arrangements pertaining to parking meter operation. To alter, or eliminate, meter operations on Sundays would not only result in an estimated shortfall of $40,000 - $60,000, but also create an inequity for the other organized private groups ~hat previously requested parking meter exemptions for their members, patrons or clients. If all of these qroups received some form of exemption, revenues could be nearly $150,000 below projections. - 13 - ~ Prepared By: cchurch1 . . Peggy Currant Director Community and Economic Development Department Jeffrey P. Mathieu, Manager Economic Development Division - 14 -