SR-417-005 (19)
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Council MeetIng, May 13, 1986
Santa MonIca, CalIfornIa
To: Mayor and CIty CouncIl
From: City Staff
SUBJECT: RecommendatIon to RaIse ParkIng Meter Rates on Selected
Streets
IntroductIon
ThIS report recommends that the City CouncIl Instruct the CIty
Attorney to prepare an ordInance to establIsh parkIng meter rates of
$.35 per hour In the downtown area, WilshIre and Santa MonIca
Boulevards, and rates of $.50 per hour on MaIn Street, Ocean Avenue,
and streets west of MaIn Street and Ocean Avenue, and to approprIate
$232,215 from unallocated General Fund reserves to purchase parkIng
meter mechanIsms to expendIture account number 01-500-416-000-311.
Background
The demand for parkIng In many areas of the City is hIgh and expected
to Increase.
Attempts to Increase the supply of parkIng WIth
addItIonal on-street parkIng, parkIng lot and parkIng structure
re-strIplng have not lessened the demand for parking.
StudIes have
shown that one way to Increase the supply of parkIng IS to encourage
more frequent turnover In the use of parkIng spaces.
ThIS can be
accomplIshed In two ways:
RaISIng parkIng meter fees for on-street
parkIng or shortenIng the length of tIme one can park for the same
fee, WhICh has the same effect as raISIng fees.
The purpose of
on-street parkIng IS to faCIlitate patronage of local bUSInesses. The
goal of all well deSIgned parkIng management programs IS to dIrect
users who deSIre longer term parkIng to off-street parkIng lots and
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structures. In the areas recommended for change, the opposite
situat10n IS presently true 1n that the lower cost park1ng 1S
on-street and so low that some monthly permit parkers park on-street.
Low on-street parkIng meter fees serve to dIscourage patronage of
local bUSInesses as It promotes alternate and less desIred uses of the
park1ng spaces such as longterm parking by employees and beach
park1ng. On-street parkIng IS a scarce commodIty under the control of
the CIty and should be approprIately prIced to recognIze Its value and
scarcIty. AddItIonal studIes have shown that the demand for park1ng
IS relat1vely price inelastIc when few substitutes are available. For
example, If on-street meter rates were raIsed to reflect the same
level of rates In prIvate parkIng lots and City owned parkIng
structures, parkers would be indIfferent to which parkIng space they
chose. Those parkers who only planned a trIp of short duratIon. would
most lIkely choose an on-street parkIng space than park In a structure
or lot gIven that the on-street parking meters' rates were prIced to
dIscourage longer term park1ng. The utIlIty preferences of parkers as
a whole is based on avaIlabIlIty of spaces WIthIn prOXImIty of their
destInatIon, not price. ThIS IS espeCIally true during those tImes of
peak demand.
In Santa MonIca, peak demand occurs between 10:00am and 6:00pm Monday
through FrIday and all day Saturday and Sunday. DurIng warm SprIng
and Summer months peak demand IS extended to as late as 10: 00 or
11:00pm.
The street parkIng meter rates throughout the City have not been
reViewed or reVIsed In over SlX years. Staff recently conducted a
survey of other CItIes throughout Southern CalIfornIa and found that
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Santa MonIca parkIng rates are substantIally lower than those of the
surveyed cItIes for areas of hIgh parkIng demand. HIgh parkIng demand
areas are defIned as Central busIness and shopping dIstrIcts, beach
the survey:
and other recreatIonal areas. The table below provIdes the results of
Parking Meter Rates On Streets
CIty High Demand Example
Areas
Beverly 50 cents/hr Rodeo Dr.
Hills
Hermosa 50 cents/hr Downtown &
Beach Beach Area
HuntIngton 75 cents/hr PIer
Beach
Los Angeles 1 dollar/hr Downtown
Manhattan 50 cents/hr Beach Area
Beach
Newport 50 cents/hr Beach Area
Beach & Downtown
Redondo 50 cents/hr Beach Area
Beach Rlverla
Village
Laguna 50 cents/hr Beach
Beach
Santa MonIca 25 cents/hr
Beach Area
Moderate Demand
Areas
Example
20 cents/hr
OlympIc Bl.
50 cents/hr
Beach Area
& Downtown
25 to 50
cents/hr
Downtown &
Beach Area
50 cents/hr
25 cents/hr
Downtown
25 cents/hr
Downtown
frInge
25 cents/hr
Downtown
frInge
50 cents/hr
Downtown
25 cents/hr
CIty WIde
The above chart shows that for comparable areas in other CIties, Santa
The average cost of
Monica's parkIng meter fees are much lower.
chart below:
prIvate off-street parkIng In Santa Hanlea IS $1.50 per hour. See
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Location
Gal-Fed Savings 233 Wllshlre
Flrst Federal Sq. 401 Wilshlre
GIty Nat'l Bank 606 Wllshire
Century Fed. Sav. 5th & SM Blvd.
4th & Santa Monlca Bldg.
Wllshlre Pallsades 1299 Ocean
Santa Monlca Square 201 SM Blvd.
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Rate MaXlmum
75 cents/half-hour $5.00
60 cents/half-hour $6.00
75 cents/half-hour $3.75
60 cents/half-hour $4.20
75 cents/half-hour $5.00
60 cents/20 minutes. $6.00
70 cents/half hour $4.90
It can not be demonstrated that artlflclally low park1ng meter rates
attract consumers who m1ght otherWise shop and VISlt other areas of
Los Angeles County. It can be successfully argued that Santa Monlca
is an extremely deSIrable area further enhanced by the avaIlabI11ty of
park1ng at reasonable rates. Ralslng parkIng meter rates IS not
expected to dImin1sh the demand for parking, but would rather shift
parking usage to be more equ1tably dlstrlbuted between on-street and
off-street parklng.
Proposed Program
CIty staff proposes to reVIse the parking meter rates over the next
several years to brlng them In lIne WIth what other Cities charge for
on-street park1ng In high demand areas. Staff proposes to Increase
the parklng meter rates from 25 cents to 35 cents per hour In the
downtown area, WilshIre and Santa Monlca Boulevards. The Increase
would be from 25 cents to 50 cent s per hour on Ma 1n Street, Ocean
Avenue and streets west of Malo Street and Ocean Avenue. These areas
are all def1ned as h1gh demand areas whlch experIence h1gh occupancy
levels and \-Shere hlgh turnover IS a des Ired outcome. The average
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annual revenue per meter in each of the proposed areas var1es between
$381 to $ 384 (except for Ha 1n Street where the meter s operate to
12:00am).
Th1S further demonstrates that all the areas exper1ence
h1gh levels of park1ng demand.
Concurrent w1th th1S proposal, 1t 1S requested to purchase 2,445 SOlld
state des1gn park1ng meter mechan1sms to replace existing mechanisms.
The SOlld state mechan1sms have advantage over the eX1sting ones in
that they are more cost effect1ve because they requ1re less
ma1ntenance to operate and ma1nta1n. The new mechanism has a 11qU1d
crystal digital readout Wh1Ch is more ViSible and readable to users.
Addlt1onally, if and when changes are Made to park1ng meter rates, the
SOlld state mechan1sNs provide for easy mechan1cal adJustment. W1th
the eX1st1ng meters, changes 1n the park1ng rates meant purchas1ng
brand new mechanisms. The cost of a SOlld state mechanism 1S $90 per
unlt as opposed to the $140 per unit cost of the eX1sting mechan1sm.
The chart below illustrates the effect of new meter rates and the
purchase of new meter mechan1sms.
wlth 1ncrease to
current at $.35/hour and
$.25/hour $.50/hour* avg.
avg. annual 1ncrease change in
Location No. of Meters revenue annual revenue
Downtown 1072 410,576 $ 164,016
ltlilsh1re 375 144,000 57,750
8M Blvd. 307 117,581 46,971
Beach Area 152 57,912 *57,912
Ocean AVe. 385 147,455 *147,455
Maln St. 154 98,252 *98,252..
Totals 2445 $975,776 $ 572,356
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Capital cost of 2,445 SOlid state meter mechanIsms IS $232,275.
Payback period
to realIze
capital costs: $232,275 capital cost
----------------------------- x 12 mos. ; 4.87 mos.
$572,356 revenue Increase
Budget/FinanCIal Impact
The total capItal cost of InstallIng new meters In the downtown area,
WIlshIre Boulevard, Santa MonIca Boulevard, the beach area, Ocean
Avenue and MaIn Street WIll be $232,275 IncludIng InstallatIon. It
will take approxImately 3 months to receive and Install the new
mechanisms. The total Increase In revenues generated by the proposed
meter rate Increase IS estImated to be $572,356 annually.
Because
InstallatIon of new meters may take until at least September 1986, the
net revenue estimate should be reduced to a ten month fIgure of
$477,545.
RecommendatIon
It is recommended that the CIty CouncIl:
1. Instruct the CIty Attorney to prepare an ordinance to establIsh
parking meter rates of $.35 per hour In the downtown area, WIlshire
and Santa MonIca Boul evards, and rates of $.50 per hour on MaIn
Street, Ocean Avenue, and streets west of MaIn Street and Ocean
Avenue; and
2. ApproprIate $232,275 from unallocated General Fund reserves to
purchase parking meter mechanIsms to expendIture account number
01-500-416-000-311.
Prepared by: Stan Scholl, DIrector of General SerVIces
Ray DaVIS, City ParkIng & TraffIC Engineer
Iris Ingram, SenIor AdmInIstratIve Analyst
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