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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
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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
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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
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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
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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
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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
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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
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$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
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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
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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)
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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
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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.
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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.
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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:
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MARSHA JONES"MOUTRIE
City Attorney
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","dopted and approved thIS 28th of January. 1997
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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
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Cltv'Clerk
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