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SR-308-003 (7) -RP:DTA:VR:lb e Sibt5---CJCJ3 e council Meeting: March 10, 1987 Santa Monica, FROM: city Staff California II-A MAR 1 0 1987 MAR 1 7 1987 TO: Mayor and City Council SUBJECT: Recommendation to Adopt Resolution Increasing Beach Parking Lot Fees to $4.00 on Weekdays and $5.00 on Weekends INTRODUCTION This report provides Council with information on the history of beach parking lot fees, the current financial status of the Beach Fund, and recent changes to the statewide beach parking lot fee schedule made by the State of California. The report also recommends that council approve the increase of beach parking lot fees from the current $3.00 to $4.00 for weekday parking and $5.00 for weekend parking. BACKGROUND The State-owned Santa Monica beach is operated and maintained by the City of Santa Monica under an operating agreement between the city and the State Department of Parks and Recreation. That agreement gives the City the authority to increase beach parking lot fees to a level which will not exceed the State fees by more than 25%. The current beach parking fee of $3.00 per vehicle was established by resolution on June 30, 1981. Before that increase, fees of $.75 per day were established in 1957, fees of $2.00 were established in 1978, and fees of $2.00 for weekdays and $2.50 for weekends were established for several years. II-A MAR 1 0 1987 MAR 1 7 1981 e e BEFORE DISTRIBUTION CHECK CONTENT OF ALL DISTRIBUTION OF RESOLUTION # -~71( Date 3)1h'J FOR CITY CkERK'S ACTION ORDINANCE # Coune 11 ~1eetlng Agenda Item # ~~~ ;Yo Introduced: Adopted: AU-lAYS PUBLISH AOOPl'Jill ORDINANCES* *Cross out Attorney's approval ~ Was It amended? F, VOTE- AffIrmatIve: Negative- AbstaIn: (L Absent: ~~~ PROOF von::: WItH -1\NOTHER ~SO}J BEFORE ANYTHING DISTK.iDuTluN: 0RIGINJ\L t:o be signed, sealed and (;-{) ~ filed in Vault. NEWSPAPER PUBLICATION (Date' ) Department originating staff report ( * ) *Ci ty Attorney does not want copies of his ordiI}ances or resolutions. J.!an2 gement Ser~.i<;e~ Lynne Bar.re,tte - urdInances only ~ .- Agency mentioned In document or staff report (certlhed?) SubJect file (agenda packet) I Counter file 1 Others: (ReVIew for deparu,e..nts who need to kncM). turport Parking Auth. AudItorum Personnel BUIldIng Dept. Planning FInance Police (en- forcement?) Cu'llmlIU ty and Econanic {lev I Fire Purchasing Recr/Parks General Servo Library Transportation_____ Treasurer Manager ~ SE~D FOUR COPIES OF ALL ORDINANCES TO: CODrD SYSTEMS, At tn Peter i-1acl'ear ie .L -' 0 'lain' r-':r~et A~~-I y~w Jersey_OZ717 SEND FOUR COPIES OF ALL CmnTNANrpc;; TO: DebZil :'<IyrIck SANTA MONICA MUNICIPAL COURT .' 725 MAIN STREE1; Room 118 SA,'TTA i>fONICA, CA 90401 *Check Code Sect~ons before senfu.ng. '\ TOTAL COPIES RECREATION AND F....~ COMMISSION ACTION e At its regularly scheduled meeting of February 19, 1987, the Recreation and Parks Commission approved the increase of beach parking lot fees from $3.00 to $4.00 per vehicle to bring Santa Monica fees in line with the State and County beach lots and recommended the increase to the City Council. BUDGET/FINANCIAL IMPACT Based upon the current number of cars parked (540,000), if parking lot fees are raised to $4.00 for weekdays and weekends, a $330,000 deficit in the fund is still projected for the coming fiscal year. Significant cost cutting efforts would therefore be necessary to balance the fund. with an increase to $4.00 for weekdays and $5.00 for weekends, (based on approximately 540,000 cars parked annually and a subtotal of 310,000 parked on weekends), the Beach Fund would experience a positive balance of approximately $3,000. RECOMMENDATIONS staff recommends that Council adopt the attached resolution increasing beach parking lot fees, effective April 1, 1987, to $4.00 for weekday parking and $5.00 for weekend parking. Prepared by: Don Arnett Director Recreation and Parks Dodie Mosby Business Manager Department of Recreation and Parks dmsrbpf Effective April ~1987 the state is inCreaS~g their parking lot entrance fees to $4.00. The Los Angeles County Department of Beaches and Harbor also plans to raise their parking fees to $4.00 which will result in uniform parking fee increases throughout the region. CURRENT FINANCIAL STATUS OF THE BEACH FUND As part of the City's beach operating agreement with the State, all revenues generated by beach activities must only be used for maintenance and services related to the beachfront. The Beach Fund is used to pay for cleaning and maintenance, operations personnel, police beach patrols during the summer months, a portion of the cost of the Harbor Patrol, the county Lifeguards (costs for which are currently set at 33.5% of Beach Fund income), and other recreational-related improvements and programming. Revenue for the Beach Fund is generated from beach concessions and parking fees. currently parking fees are the chief source of revenue. In a 1982 financial study conducted by Hamilton, Rabinovitz and Szanton, Inc. the Beach Fund was predicted to go into deficit in FY 1984-85. However, through various cost-cutting efforts, improved methods of maintenance and the income from the McDonald's concession lease, the city has been able to prevent the Fund from running a deficit. However, without any increase in the parking fee, a deficit of $690,000 is currently projected in the Beach Fund for 1987-88. e CA:RMM:rmd445jhpca City Council Meeting 3-10-87 e Santa Monica, California RESOLUTION NUMBER 7391(CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTION 2A OF RESOLUTION NU~BER 1786 (CCS) INCREASING BEACH PARKING LOT RATES AND FINDING THAT BEACH PARKING LOT RATE INCREASES ARE EXEMPT FROM THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. In order to increase the maximum beach parking lot rate from $3.00 to $5.00, subsection A of section 2 of Resolution Number 1786 (CCS) is amended to read as follows: A. The rates to be charged shall be fixed by the City Manager from time to time, but in no event shall exceed Five Dollars ($5.00) per day. SECTION 2. The City Council finds that the establishment, modification, structuring, restructuring, or approval of beach parking lot rates 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. - 1 - e e SECTION 3. The city council hereby finds as follows: A. The increase in beach parking lot rates is established to meet operating expenses, including employee wage rates and fringe benefits, and/or obtain funds for capital projects necessary to maintain service within existing service areas. B. Pursuant to the Beach Operating Agreement between the City of Santa Monica and the state of California, all beach parking lot revenues may only be used in connection with expenses for operation of or capital improvements in the subject beach area. C. The rate increase is necessary to fund lifeguard service at the beach. 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 et seq. SECTION 5. Resolution Number 6300 (CCS) is repealed. SECTION 6. 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: (l..,-G"1-.7\- '-- . \...- ROBERT M. MYERS City Attorney u - 2 - e e apprO~7th day of \hA^3 ~-~ ~ - - '" Mayor chi 1987. Adopted and Resolution No. 7391(CCS) was the city of Santa Monica at a meeting thereof held on March 17, 1987 by the following council vote: Ayes: Councilmembers: Finkel, A. Katz, H. Katz, Reed, Zane and Mayor Conn Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: Jennings ATTEST: /) -t {,-L~'-'1( jl)J WcJJr..q city Clerk