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SR-9A (34) tlJ.] A ~...", ..I' PCD SF RKF attend2,wlnword Council Meeting January 28, 1997 Santa Monica, califor~lN 2 8 1997 To Mayor and CIty Council From City Staff Subject Recommendations to Modify Parking Rates for the Attendant Parking Program for the SIX Downtown Parking Structures and Authorize Santa MOnica Place to Increase Nighttime Parking Rate Introduction ThiS report recommends the City Council approve modifications to the parking rates for the attendant parking program for the SIX downtown parking structures and authorize Santa Monica Place to Increase their nighttime parking rate Discussion The conversion of the downtown parking structures from parking meters to attendant parking or cashler/pay-on-exlt program was completed mid-January 1996 The attendant parking program IS managed by Ampco System Parking under contract With the City Staff previously adVised the CounCil on their evaluation of the attendant parking program and on December 17, 1996, Council approved Increasing the hours of operation to 2 00 am and enhanCing operations by Increasing parking staff ThiS report recommends modifications to the parking rates and discusses the Implementation of nighttime on-street meters /"'<:~i A tj JAN 2 8 1997 Parking Rates1Revenues and Expenditures When the conversion of parking operations was approved by Council, It was agreed that the change should not Impact parking revenues and that the program be "revenue neutral" With the prevIous parking meter program As Indicated on Attachment #1, It IS estimated the net Income difference between the last full year of parking meters (FY 94195) and the first full year of attendant parking (FY 96197) will be close to a $1 22 million defiCIt. and for FY 97198 close to a $1 11 million defiCit Although general vIsitor parking revenues have Increased under the attendant parking program, the net reduction of Income results from the loss of parking citation revenue and the contract costs to operate the program The follOWing are the current vIsitor parking rates 8 00 am to 6 00 pm - first two hours free. then 60 cents per 30 minutes 6 00 pm to 2 00 am - $2 00 flat fee Daily maximum - $7 00 The current monthly permit parking fee IS $50 00 The total projected revenue from the attendant parking program for FY 96/97 IS $3 47 million, and for FY 97/98 It IS $362 million These estimates are based on actual revenue data for the months from February through November 1996 and estimates of revenue generated by operating the structures until 2 00 am Attachment #1 displays the details of the different revenue sources 2 The contract cost to manage the day-to-day operations of the attendant parking program for FY 96/97 IS approximately $808,500, and for FY 97/98 It IS approximately $854,300 These estimates Include Council's December 17, 1996 approval to Increase the contract amounts to enhance operations Therefore, the net Income for FY 96/97 IS estimated at $2 66 million, and for FY 97/98 It IS estimated at $2 76 million The net Income In FY 94/95 under the parking meter program was $3 87 million Under the current rate structure, the City IS projected to have a $1 2 million deficit In FY 96/97 and $1 1 million deficit In FY 97/98 for Implemenling the attendant parking program Proposed Recommendations Staff has evaluated vanous parking rate scenarros and has presented them to the Bayslde Dlstrrct Corporallon (BDC) Board of Directors for their consideration and Input Based upon their evaluation and the BDC Input, staff IS recommending the following modifications durrng the day (8 00 am to 6 00 pm), the proposed change would Increase the 30 minute rate from 60 cents to 75 cents The two-hour free penod would remain the same, at night (after 600 pm). the proposed change would Increase the flat rate from $2 00 to $3 00 3 The proposed parking rate is: 8:00 am to 6:00 pm - 2 hours free, then 75 cents per 30 minutes 6:00 pm to 2:00 am - $3.00 flat fee Daily maximum - $7.00 It IS estimated the changes outlined above Will generate $720,000 additional annual revenue Including parking tax Monthly Parking Permits As a customer convenience, monthly parking permits are sold for each parking structure The permit, actually a gate keycard, allows the permittee unlimited access to a speCifiC parking structure The current fee for thiS permit IS $50 00 per month plus 10% parking tax ThiS fee did not Increase with the conversion to attendant parking The conversion has created several problems In the area of permit parking Since the converSion, the demand for monthly parking permits has skyrocketed with the demand far exceeding the current supply ThiS problem did not eXist under the parking meter system A walling list currently eXists totaling more than 150 requests for permits even though staff has Increased the number of available permits Some comments have been received that there should be an unlimited availability of permits, however, the program has a "cap" on the number of permits that are available for each parking structure The current cap IS set at approximately 60% of the available publiC parking spaces In each structure ThiS cap generally ensures available parking spaces for 4 VIsitors and patrons to the downtown, and generally a permittee can always find a space as well The cap under the parking meter program was 45% Staff has determined the basIc reason for the high demand for monthly parking permits IS the current Imbalance between the dally parking rates and the monthly rate and the low pnce of the permit In comparison to surrounding pnvate parking lots For example, assuming a full-time employee works, on the average, 21 days per month, eight hours per day At the monthly rate, parking would cost $50 00 If the employee did not have a permit, at the dally maximum rate, parking would cost $14700, almost three times more Even for a part-time employee who works only two days per week, at the dally rate, parking would cost $56 00, still more than the monthly rate Staff has reviewed monthly parking rates at vanous parking facIlities throughout downtown Monthly parking rates, excluding the City parking structures. ranged from a low of $60 00 to a high of $110 00, with the average being $7800 The City's current rate IS below the lowest rate In the downtown area adding to the demand for permits In the City structures Staff believes that the monthly rate IS too low and should be Increased In line with the current downtown rates Staff IS recommending a monthly rate of $65 00 plus parking tax effective Immediately and then an Increase to $75 00 per month plus parking tax effective January 1, 1997 It IS estimated the additional annual revenue Will be $230,000 at the $65 00 per month rate and $400.000 annually at the $75,00 per month rate 5 Another Issue that has surfaced IS the parking locations for permittees Currently, parking In all of the structures IS on a first-come, first-served basIs Comments have been made that permit parkers park In the convenient lower level spaces and vIsitors are required to park In the upper levels Some have Indicated that permit parkers should be required to park In the upper levels of the structures to prOVide for convenient lower level parking for VIsitors and patrons to downtown In theory. this concept may be logical, but In practice, IS difficult to enforce because there IS no current method to distinguish between a monthly permit parker and a VIsitor parker since permit parkers now use keycards and are no longer required to place a parking slicker on their vehicles EqUipment IS available that could force permittees Into the upper levels of the structures This function IS referred to as "nesting" However, once nesting IS Installed, It "casts In stone" the number of parking spaces for permit parkers relative to vIsitors Immediately, the flexibility and ability to adjust to changing parking demands IS eliminated, especially the different demands between permittees and vIsitors dunng the day vs dUring the nights and weekends Therefore, staff does not recommend any changes to the first-come, first-served system at this time, but will continue evaluating ways to prOVide convenient parking for vIsitors and Increase the effiCiency of the structures Enhanced slgnage and/or Increased staff Will be evaluated 6 Nighttime Short-Term Parking Dunng vanous diScussions about parking In the downtown area, some members of Council have Indicated a need for available parking for short-term VISitS to the Promenade Staff's recommendation to address the need for short-term nighttime parking IS to operate the on-street meters adjacent to the Promenade between 6 00 pm and 2 00 am The on-street meters currently end operation at 6 00 pm This Includes meters on Wilshire, Anzona, Santa Monica and Broadway between 2nd and 4th Streets, and the meters on 2nd Street between Wilshire and Broadway Staff does not recommend meters on 4th Street because no parking IS allowed dUring the day and the presence of meters for a nighttime only operation would create confusion for parkers and Increase congestion on 4th Street The operation of meters at night between 6 00 pm and 2 00 am would generate approximately $130,000 of additional annual revenue and can be Implemented administratively Bayside District Corporation and Bayside Merchants Input On December 9, 1996, the Bayslde Dlstnct Corporation (BDC) held a speCial board meeting to further discuss the proposed changes to the attendant parking program Comments from the public Included requests to retain the 2 hour free program, a request to update the revenue estimates with more recent information, objections to Including parking Citation revenue as part of the revenues the City must restore, and a request to lower the monthly parking fee recommended by staff The Board discussed the matter and asked staff to review the follOWing parking rate "2 hours free, then 75 cents per 30 minutes (800 am to 600 pm), $250 flat fee (6 00 pm to 2 00 am), and a 7 $60 per month pemllt fee" Staff has evaluated this scenario and determined It would only generate about $620,000 addlllonal annual revenue On January 13, 1997, the BDC held another special Board meeting to discuss the proposed changes to the parking rates Staff provided the Board With the most current revenue and expenditure Informallon as outlined In this report and a vanety of parking rate scenanos After much diScussion, the Board recommended the follOWing 8 00 am to 6 00 pm - 2 hours free, then 75 cents per 30 minutes 6 00 pm to 2 00 am - $3 00 flat fee Dally maximum - $7 00 Operate the meters on 2nd, Wilshire, Arizona, Santa Monica and Broadway at night until 2 00 am The Board also voted to request Council that any Income surplus that may be generated over the prevIous parking meter program that results from these changes be designated for on-going, Improved structure maintenance Santa Monica Place Santa Monica Place currently has a nighttime parking program that charges $2 00 after 600 pm on Thursday, Friday, Saturday and Sunday They validate or return the $2 00 fee to patrons of the Place when they show a receipt upon eXIling Staff has also discussed the proposed parking rate changes With the management of Santa Monica Place They have reviewed the rates and supports staff's proposal However, they 8 have expressed concem about the Impact on the Place structures If the City night rate IS $3 00 and the Place's night rate IS $200 Staff agrees that the pricing of public parking facilities In close proximity to each other should have the same or similar parking rates so certain facilities do not get overburdened because they may have a cheaper rate Therefore, staff recommends Santa Monica Place be authorized to Increase their nighttime rate equal to the City parking structure rate BudJ:letlFiscallmpact The recommendation to modify the parking rates to two hours of free parking, then 75 cents per 30 minutes until 6 00 pm, and a $3 00 flat fee at night Will Increase the annual revenue by an estimated $720,000 including parking tax Staffs recommendation to Increase the monthly parking permit rate to $6500 will Increase annual revenues by approximately $230,000 Including tax and at $7500 will Increase annual revenues by approximately $400,000 Including tax The recommendation to operate the meters at night will Increase annual revenues by approximately $130,000 The net result of these fiscal recommendations will Increase annual Income by approximately $270,000 In FY 96/97 and $1 165 million In FY 97/98 9 If approved, It IS anticipated that these fiscal recommendations will take effect on April 1, 1997, so only about one fourth of the esllmated Increase will be received this fiscal year leaVing an estimated deficit of $950,000 for FY 96/97 However In FY 97/98 It IS estimated these changes Will result In a surplus of $55,000 Recommendations It IS respectfully requested the City Council approve the follOWing recommendations Approve the attached resolution establishing new parking rates Including two hour free parking, then 75 cents per 30 minutes between 8 00 am and 6 00 pm, and between 6 00 pm and 2 00 am, a $3 00 flat fee, and increasing the monthly permit parking fee to $65 00 per month Immediately and then $75 00 per month effective January 1, 1997 2 Approve the operalion of parking meters on 2nd Street, Wilshire Boulevard, Anzona Avenue, Santa Monica Boulevard and Broadway until 2 00 am dally 3 AuthOrize Santa Monica Place to Increase their nighttime parking rate equal to the City parking structure nighttime rate 4 Direct staff to make the appropriate modifications to the FY 96/97 budget as outlined In thiS staff report Prepared by Suzanne Frick, Director of Planning and Community Development Ron Fuchlwakl, City Parking and TraffiC Engineer Doug Biagi, ASSOCiate TraffiC Engineer (attend2) 10 Summary of Revenue and Expenditures Attendant Parking vs Parking Meters ATTACHMENT I (Revised) FY 94/95 FY 95/96 FY 96/97 FY 97/98 Account Actual Actual Estimate Estimate Revenues Structure Attendant Parking (portion related to parking structures) N/A 51.004.710 $2,430,000 2,570,000 (1196-6/96) Parking Meters (portion related to parking structures) 1,917,878 1,067.460 N/A N/A (7/95-12/95) Structure Parking Permits 719,255 720.450 720,000 720,000 (7195-6/96) Municipal Ordinance Violations (portion related to parking structures) 1,280.646 640.320 N/A N/A (7/95-12/95) Parking FaCility Tax 71.926 144.480 315.000 329,000 Sub.total Revenues 3,989,705 3,577,420 3,465,000 3,619,000 Expenditures Attendant Parking Contract N/A 566,780 808.500 854.300 (9195-6/96) Parking Meter Collection Costs (portion related only to parking structures) 61,096 32.082 N/A NIA (7/95-12/95) Parking Meter Repair Costs (portion related only to parking structures) 55,051 31.344 N/A N/A (7/95-12/95) Sub-total Expenditures 116,147 630,206 808,500 854.300 Net Income (Rev - Expend) $3,873,558 $2,947,214 $2,656,500 $2,764,700 Estimated FY 96/97 Deficit: Parking Meters vs. Attendant Parking $1,217,058 Estimated FY 97/98 Deficit: Parking Meters vs Attendant Parking = $1,108,858 wwdocslArlenelParkprog xis ~ f:\atty\muni\laws\mjm\parkrat2.res City Council Meeting 1-28-97 Santa Monica, California RESOLUTION NO. 9117 (CCS) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING PARKING RATES IN THE DOWNTOWN PARKING STRUCTURES AND FINDING THAT PARKING RATE INCREASES ARE EXEMPT FROM THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, the downtown parking structures serve the Third Street Promenade and adjacent commercial district; and WHEREAS, the City desires to provide convenient and "user friendly" parking to visitors, residents and employees; and WHEREAS, the city has affirmed its commitment to the continuing revitalization of the Bayside District, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. As of the effective date of this Resolution, the rates to be charged in Parking Meter Zone D shall be: a. During the hours of 8:00 A.M. to 6:00 P.M" parking shall be without charge for the first two (2) hours, and $,75 per 30 minutes or part thereof, for all time beyond the second hour up to a maximum of Seven Dollars ($7.00) per day. b. During the hours of 6:00 P.M. to 8:00 A.M. the following day, parking shall be Three Dollars ($3.00) per entry for each vehicle regardless of the amount of time the vehicle is parked a space in Zone D. 1 c. Permits for parking in Parking Meter Zone D shall be sold at a rate of Sixty-Five Dollars ($65.00) per month for unreserved spaces. d. Permits for parking in Parking Meter Zone D shall be sold at a rate of Seventy-Five Dollars ($75.00) per month for unreserved spaces effective January 1, 1998. SECTION 2. The City Council finds that the establishment, modification, structuring, restructuring or approval of parking rates in the downtown parking structures contained in section 1 is for the purpose of meeting operating expenses, including employee wage rates and fringe benefits and/or obtaining funds for capital projects necessary to maintain service within existing service areas. SECTION 3. The city Council hereby finds as follows: The increase in parking rates in the downtown parking structures is established to meet operating expenses, including employee wage rates and fringe benefits, or obtain funds for capi tal projects necessary to maintain service within existing service areas. SECTION 4. Pursuant to Public Resources Code section 21080(b) (8), the rate increase provided for in section 1 is exempt from the provisions of the California Environmental Quality Act of 1970, PUblic Resources Code sections 21000 ~ sea. 2 ~ ..... SECTION 5. The city Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: .~ A /~ i , . j" i '4 ' ':, (...",,-' '"> Y "'-'l,J...u <- MARSHA JONES"MOUTRIE City Attorney 3 ","dopted and approved thIS 28th of January. 1997 l 'D1A1YlC?~ \ - - \1ayor I hereby certIfy that the foregoing Resolution 9117(CCS) was duly adopted at a meeting of the Cny CouncIl held on the 28th of January. 1997 by the foHowing vote ","yes l\oes Abstam Absent Councllmembers CouncIlmembers Councllmembers CouncIl members Feinstem. Gensel. Holbrook O'Connor. Rosenstein Greenberg :\'one Ebner ATTEST ~"~"\i~ Cltv'Clerk ".