SR-210407-1D~~~
City Council Report
City of
Santa Monica
City Council Meeting: December 4, 2007
Agenda Item: ~~
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Update of Downtown Parking Financing and Operations Plan
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional services agreement with Walker Parking Consultants to prepare
a Downtown Parking Operations Plan and to update the Downtown Parking Program
financing plan in an amount not to exceed $200,000.
Executive Summary
Construction of public parking facilities in accordance with the Downtown Parking
Program developed by the Downtown Parking Task Force and adopted by Council on
May 9, 2006, will require an update of the Downtown Parking Program financing plan to
reflect current construction costs and market conditions. The update will include an
evaluation of current conditions and an estimate of revenue opportunities from parking
rates, in-lieu fees, property-based assessments and other revenue sources to support
the parking program. Updating the financing plan and parking rates related to
expansion of Downtown parking facilities provides an opportunity to evaluate options for
enhancing the effectiveness, customer service, parking pricing and technology of
parking operations in the downtown area. Staff solicited proposals from parking and
financial consultants and recommends Walker Parking Consultants, in association with
Keyser Marston Associates, for an amount not to exceed $200,000. Funds are available
in the Redevelopment budget.
Background
The Downtown Parking Program, developed and recommended by the Downtown
Parking Task Force and adopted by Council in May 2006, calls for continued careful
management of the City's parking resources to encourage people to "park once" in the
downtown area. The Program calls for the seismic upgrading of Parking Structures Nos.
2, 4 and 5, the demolition and reconstruction of Parking Structures Nos. 1, 3 and 6, and
construction of up to two parking structures to add a total of up to 1,712 additional
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parking spaces to the downtown parking inventory over aten-year period. Prior to the
planning of any parking demolition or new construction, parking needs and growth in the
Downtown area will be reviewed.
Seismic upgrading has been completed for Parking Structure No. 5; seismic upgrading
is underway for Parking Structure No. 4 and the seismic upgrading planned for Parking
Structure No. 2 is in the design stage. Planning for demolition and reconstruction of
Parking Structure No. 1 is scheduled to commence during the current fiscal year.
Discussion
The cost for construction of the parking facilities was estimated in 2002 to be $92.5
million, with funding to come from a variety of sources, including increases in parking
rates and property assessments. Since that time, construction costs have increased
significantly and market conditions, including parking rates in competitive destinations
and in local private facilities, have changed. These changes have prompted the need
for updates of the parking program cost estimates and financing program. An update of
the cost estimates is currently underway. Updating the financing program provides an
opportunity to evaluate and make recommendations regarding the downtown parking
operations; as parking pricing is an important consideration for both financing and
operations.
In August 2007, after consultation with the Bayside District Board of Directors, staff
distributed a request for proposal for parking and financial consultants to evaluate
parking operations and update the financing program. The proposal received from the
recommended consulting team of Walker Parking Consultants, Inc., in cooperation with
Keyser Marston Associates, responded to the Scope of Work in the RFP, as follows:
1. Review recent development trends based on an adopted standard of 2.1 parking
spaces per 1,000 sq. ft. of development.
2. After review of parking rates for short- and long-term parking for downtown
Parking Structures Nos. 1 through 10, the Civic Center Parking Structure, the
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Library Parking facility, and on-street parking rates, make recommendations
about appropriate pricing strategies to encourage efficient use of existing spaces
by the different user groups.
3. Evaluate the City's current in-lieu parking fees and recommend changes in the
methodology, as appropriate.
4. Prepare a parking financing plan based on updated construction cost estimates,
revenue estimates from revised parking rates, in-lieu fees, property-based
assessments and other resources.
5. Evaluate current operations and recommend opportunities for enhanced
operational functions to introduce into those parking structures that are
rehabilitated as well as those new structures that are to be constructed. Issues to
be studied include a centralized valet parking system, pay on foot systems, and
parking validation programs. The consultant is asked to make recommendations
about parking oversight and management.
Previous Council Actions
Council approved the Downtown Parking Program and certified the EIR on May 9, 2006.
Environmental Analysis
In January 2006, the City prepared and certified a program environmental impact report
for the City of Santa Monica Downtown Public Parking Program (SCH No.
20021 21 1 22). Preparation of a financing plan to implement the Program is consistent
with the previous EIR approval.
Contractor/Consultant Selection
Staff mailed the Downtown Parking Program Financing Project to 15 firms, posted
notice of the RFP on the City's home page and received proposals from three firms:
Carl Walker Parking, Tierra West Advisors and Walker Parking Consultants in
partnership with Keyser Marston Associates. An interview panel consisting of staff from
Redevelopment, Economic Development, Transportation Management, Planning,
Financing and the Bayside District, recommended the team of Walker Parking
Consultants and Keyser Marston Associates.
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Walker Parking Consultants ("Walker") has a 41 year history with 13 offices throughout
the United States and a staff of 250 professionals. The firm has extensive experience in
the parking industry and has prepared over 1,000 studies for municipal clients dealing
with parking supply and demand projections, parking management plans, and
operations assessments. Walker will be supported by Keyser Marston Associates
("KMA"), a full service real estate, financial and economic consulting firm specializing in
real estate advisory services for the public sector. KMA has consulted for the City on a
variety of assignments, including the original Downtown Parking Program financing
plan. The interview panel agreed that the team of Walker and KMA brought together
strength in the disciplines needed for the successful completion of this assignment.
Public Outreach
On August 23, 2007, staff advised Bayside District Board of Directors that the City was
soliciting proposals for preparation of a Downtown Parking Financing Plan. The
Executive Director of the Bayside District provided input on the draft RFP before it was
distributed and participated with staff on the interview panel.
Financial Impact and Budget Action
Staff recommends a contract not to exceed $200,000. Funds are available in Account
No. 0170621.589000.
Prepared by:
Miriam Mack, Economic Development Manager
Approved:
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Andy Agle, Director
Housing and Economic Development
Forwarded to Council:
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