SR-417-010 (15)
PCD:SF:EG:F:\pcd\share\2001Council Report\Coastal Rcmd2001
Council Meeting: March 27, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Summer 2001 Beach Parking: Revenue Estimates for Increasing All-
Day Parking Rates in South Beach Lots
INTRODUCTION
This report responds to a request from Council to evaluate the revenue gains from
increasing the all-day parking rates in the South Beach parking lots.
BACKGROUND
At its meeting held March, 6, 2001, City Council authorized the implementation of the
recommended changes to the beach and Pier parking program, including an increase
of the maximum rate to $8. Council also directed staff to add a new section of short-
term parking to the 2030 Barnard Way lot in time for Memorial Day Weekend rather
than wait until mid-summer to evaluate the need for more short-term parking. The
additional 92 short-term parking spaces were forecasted to result in a $45,500 loss to
the Beach Fund and $4,500 loss in City parking taxes. Council directed staff to
estimate the revenue gained by increasing the all-day rate in the two southern lots
(2030 and 2600 Barnard Way) as a way to compensate for the loss from the
additional short-term spaces.
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DISCUSSION
Revenue Estimates:
Two alternatives were developed to replace the existing $5 all-day year-round
parking rate in the 2030 and 2600 Barnard Way lots with variations on the rate
structure in the northern beach lots:
Alternative 1:
This alternative is identical to the structure in the northern lots, with
summer and shoulder weekend rates set at $7 and other rates as shown:
Summer Shoulder Winter
Weekday $6 $5 $5
Weekend/Holiday $7 $7 $5
Alternative 2:
This alternative increases the maximum summer and shoulder
weekend rate by only $1, to a maximum peak rate of $6, with the other rates the
same as the northern area, as shown:
Summer Shoulder Winter
Weekday $6 $5 $5
Weekend/Holiday $6 $6 $5
The estimated revenue impacts are summarized in the attached Table A. Alternative
1 produces $50,900 in additional revenue, enough to compensate for the $45,500
estimated loss from the additional 92 short-term spaces. Alternative 2 produces
$21,800 in additional revenue, partially compensating for the loss.
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Congestion Management:
A congestion management component of the Coastal Parking Rate Program was
designed to encourage greater use of the large southern area lots where ample parking
is available and to relieve pressure on the highly congested central area around the
Pier. The Summer 2000 evaluation was inconclusive concerning the congestion
management effects of reducing the Southern Area rate from $7 to $5. On March 6,
2001 the Council approved the increased Central Area peak rate of $8, creating a $3
pricing differential during peak summer weekends if a $5 Southern Area rate is
maintained. Increasing the Southern Area rate would narrow the differential with the
Central Area. Increasing the Southern Area rate to $7 (Alternative 1) would produce
only a $1 differential with the Central Area rate, offering a minor incentive to park in the
Southern Area. By increasing the southern rates to $6 (Alternative 2), the $2
differential adopted last year would be maintained. Continued marketing will help get
the word out to encourage use of the Southern Area lots.
Community Input:
The Main Street Merchants Association (MSMA) and the Ocean Park Community
Organization (OPCO) both support reduced all-day rates in the Southern Area beach
lots, as well as more short-term parking in these lots, as a way to encourage beach
goers to park in the beach lots rather than in the Main Street lots and on neighborhood
streets. Both organizations have expressed concern with the proposal to increase the
rates. The Pier Restoration Corporation (PRC) also supports reduced rates in the
Southern Area.
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BUDGET/FINANCIAL IMPACT
As stated above, Alternative 1 is estimated to restore $50,900 to the Beach Fund with
a corresponding $5,100 increase in parking tax revenues, which would completely
compensate the anticipated loss from adding the 92 additional short-term spaces.
Alternative 2 is estimated to restore $21,800 to the Beach Fund by, with a
corresponding $2,200 increase in parking tax revenues, partially compensating for
the loss and requiring greater subsidy to the Beach Fund from the General Fund.
However, improved revenue collection in the short term lots resulting from increased
machine reliability, a new parking operator with improved procedures and added
enforcement is likely to produce an improved revenue stream over last year.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to increase the
Southern Area all-day parking rates by $1 to partially off-set the revenue loss
resulting from expanded short-term parking area, while maintaining the congestion
management component of the program at the same level as last summer.
Prepared by: Suzanne Frick, Director, Planning and Community Development
Ellen Gelbard, Deputy Director Planning and Community Development
Lucy Dyke, Transportation Planning Manager
Barbara Stinchfield, Director, Community & Cultural Services
Elaine Mutchnik, Acting Open Space Manager
Jeff Mathieu, Director, Resource Department
Mark Richter, Manager Economic Development
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TABLE A
ESTIMATED REVENUE IMPACTS OF INCREASED ALL-DAY RATES
IN THE
2030 AND 2600 BARNARD WAY PARKING LOTS
1 1
Program Elements Beach Fund Revenue LossImpact on Revenue
(Compared to no Coastal
Parking Rate Program)
Staff Recommended Program ($218, 000) NA
(March 2001)
Council Adopted Program, ($263,500) $45,500 additional loss compared
including 92 more short-term to staff recommended program
spaces
(March 2001)
Alternative 1:
Increase all-
($212,600) Generates an additional $50,900,
day peak rate in 2600 & 2030 which completely compensates loss
$7 maximum
lots by$2 to
from additional short-term spaces
Alternative 2:
Increase all-
($241,700) Generates an additional $21,800,
day peak rate in 2600 & 2030 which partially compensates loss
$6 maximum
lotsby$1 to
from additional short-term spaces
1
Doesn?t include additional 10% loss of City parking tax revenue.
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