SR-417-005 (40)
F:\PCD\Share\council2002\Parking Meter Rates
Council Meeting: December 17, 2002 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject:Conceptual Approval of Parking Meter Fee Increase and Additional Meter
Locations
INTRODUCTION
This report recommends that the City Council approve in concept a parking meter rate
increase to $0.75 per hour and $1 per hour and installation of new parking meters in
several locations. Following this conceptual approval, staff would develop an
implementation plan and initiate procurement of required technology. The City Council
would then have the opportunity to approve the rate increase and award a bid for the
purchase of meter technology at the last meeting in February in conjunction with the mid-
year budget review.
BACKGROUND
The City staff is developing recommendations to address a structural deficit projected for
its operating budget. One revenue measure available to the Council is increased meter
fees. Meter fees in the City are lower than for comparable areas in adjacent cities and
the level of the fees charged is at the discretion of the City Council. The City has not
raised parking rates overall since 1991, and, in most places, hourly parking rates are
lower than a one-way bus fare.
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In conjunction with the rate increase, staff proposes to modernize the parking meter
system by replacing mechanical meters with electronic meters that can accept stored
value cards for payments, to install meters at a number of currently unmetered locations
where parking serves commercial and institutional uses and is in high demand, and to
eliminate the need for the on-street meter permit program (and reduce administrative
costs as detailed below).
DISCUSSION
Currently Santa Monica?s parking meter rates ($.50 per hour and $.35 per hour in most
locations) are lower than in surrounding communities.
Table 1: Meter Rates in Surrounding Communities (surveyed June, 2002)
1$ per hour $.75 per hour Other
Manhattan Beach West Hollywood West L.A. $.50
Venice Beach Redondo Beach (near beach) Glendale $.40-.60
Old Town Pasadena Hermosa Beach (near beach)
Beverly Hills
Sunset Strip
Westwood
Santa Monica last increased meter rates overall in 1991, eleven years ago. If the
Council chooses to pursue a parking rate increase, staff recommends that Downtown
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parking and parking adjacent to the coast be set at $1 per hour and the rate for other
areas of the City be set at $.75 per hour. Staff estimates that approximately $3 million in
additional revenue would be collected from meters on an annualized basis if this rate
structure were adopted by the City Council. Proceeds of meter rates increased to $1 per
hour in the Downtown (estimated at $950,000 annually) have been considered by the
Downtown Parking Task Force and the Council as one of several funding sources for
proposed downtown parking improvements.
Staff recommends the replacement of all mechanical mechanisms with electronic meters
in conjunction with the rate increase. The City?s mechanical meters are very old and due
for replacement based on age. New meters could be installed with updated rates,
thereby avoiding costs of modifying each of 6,000 existing mechanisms. Several types
of electronic meters have been tested in the City, and they have proven to be more
reliable and effective than mechanical meters. In addition, because they can accept
stored value cards, electronic meters are more convenient and provide a higher level of
service for users.
The new meters would allow for a phase out of the on-street meter program, a permit
program established to allow long-term daily parkers a non-coin payment alternative
before stored-value cards were available. Elimination of this program would save staff
time currently allocated to processing 5,000 permit requests per year and also increase
access to long-term meters.
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The one-time cost for mechanism replacement, signs and meter modifications is
estimated at $2,450,000. The additional annual cost for Treasury Division collection
activities is estimated at $45,000. The revenue generated is estimated at $1,500,000 in
FY ?04 and $3,000,000 annually thereafter.
In addition to the fee increases, staff proposes to install meters at spaces adjacent to
commercially zoned uses near the intersections of streets with Wilshire Boulevard or
Santa Monica Boulevard, and near Santa Monica College and John Adams Middle
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School on Pearl Street and 16 Street. Approximately 360 meters could be installed in
these locations at a cost of $340,000. They could be expected to generate revenue of
$170,000 in FY ?04 and $340,000 annually thereafter.
At this time staff seeks direction on whether Council is willing to consider a meter rate
increase so that staff can proceed with an implementation program, including
procurement of signs and electronic mechanisms. Complete change-out of meters is
expected to take three to eight months following delivery of the equipment. If Council
approves this recommendation, staff will develop specifications for equipment and
installation and solicit bids. With this preliminary work completed, City Council could
award contracts for equipment and installation shortly after adopting any ordinance and
resolution implementing an increase in February ?03.
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BUDGET/FISCAL IMPACT
This item directs staff to proceed to solicit input from the community and initiate the
procurement process. The decision to implement a rate increase will be considered on
February 23, 2002.
RECOMMENDATIONS
Staff recommends that the City Council:
1. Approve in concept the increase in parking meter rates to $1 per hour and $.75 per
hour.
2. Direct staff to solicit input from business and community groups on the proposed rate
increase and meter modernization program by making presentations for interested
groups at their regular meetings.
3. Direct staff to initiate procurement of signs and mechanisms required to implement a
rate increase.
4. Direct staff to initiate procurement of new meters for approximately 360 new spaces
adjacent to commercial uses on side streets that intersect Santa Monica Boulevard
th
and Wilshire Boulevard and on Pearl Street and 16 Street adjacent to Santa Monica
College and/or John Adams Middle School.
Prepared by: Suzanne Frick, Director, Planning and Community Development
Lucy Dyke, Transportation Planning Manager
Ralph Bursey, City Treasurer
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