SR-031108-8A~~ City Council and
~~tY a, Redevelopment Agency Report
Santa Monica
City Council and Redevelopment Agency Meeting: March 11, 2008
Agenda Item:
To: Mayor and City Council
Chairperson and Redevelopment Agency
From: Andy Agle, Director of Housing and Economic Development
Subject: Parking Structures 7 and 8 -Proposed Attendant Parking Program,
Proposed Fagade Improvement Program and Consideration of Colorado
Streetscape Issues
Recommended Action
Staff recommends that the Redevelopment Agency (Agency):
1. direct staff to process changes necessary to convert Parking Structures 7 and 8
to attendant parking for the purpose of integrating these two facilities within the
downtown parking management system;
2. provide project direction to pursue valet parking at Parking Structures 7 and 8
subject to conditions set forth herein and direct staff to commence preparation of
necessary text amendments to the City's valet parking ordinance, returning to
Council at a future date for formal approvals;
3. provide project direction on the proposed conceptual fagade improvement
designs for Structures 7 and 8 and the incorporation of optional ancillary
pedestrian oriented uses of retail and potential bike parking;
4. direct staff to prepare an agreement that assigns responsibility of leasing and
management of proposed pedestrian oriented retail uses to Macerich;
5. direct staff to negotiate terms with Macerich for the construction of proposed
parking attendant and fagade improvements; and
6. provide direction on desired timing of proposed streetscape improvements on
Colorado Avenue.
1
Staff recommends that the City Council (Council):
1. authorize the City Manager to execute a Third amendment to Contract No. 8551
with Pugh +Scarpa, in an amount not to exceed $240,000, for the completion of
schematic design services and related work.
Executive Summary
Parking Structures 7 and 8 at Santa Monica Place, owned by the Redevelopment
Agency, were built in 1979, providing 1,968 spaces for the Downtown. Since receiving
seismic upgrades in 2002 and 2003, no additional capital improvements have been
made to these two parking facilities. Given the extensive remodel at Santa Monica
Place and the opportunity to coordinate proposed Parking Structure programs with the
Remodel project and the broader Downtown fagade improvement program, City staff
seeks direction on the following:
Attendant Parking Program: An attendant parking program is proposed for Structures 7
and 8 to integrate the operations of these two facilities within the broader Downtown
parking system, and to better coordinate Downtown parking strategies, manage peak
parking demand periods, and reduce confusion through consistent parking procedures
and pricing.
Valet Parking: Macerich has proposed valet parking as a customer convenience. Staff
seeks agency direction on pursuing the necessary ordinance changes to support
implementation of weekday, daytime valet parking in Structures 7 and 8.
Fagade Improvement Program and Use of Ground Floor: Fagade improvements are
proposed for Structures 7 and 8 in order to better integrate with the improvements at
Santa Monica Place as well as the fagade improvements for public Parking Structures 1
through 6. Pugh +Scarpa has developed a conceptual design (Attachment A) which
includes solar photovoltaic panels, trex-clad veneers, colored channel glass enclosing
stairwells, public art and creation of space for ground-level pedestrian-oriented uses. In
addition to consideration of the overall design approach, staff seeks direction on the
following related issues:
• Use of the ground-level spaces for retail, bicycle-transit facilities or art display
Leasing and management of the retail spaces
• Construction of proposed improvements
Colorado streetscape Improvements: The Parking Structure Fagade Improvement
Program and Santa Monica Place remodel project were intended to include streetscape
improvements along Colorado Avenue. Staff seeks Council direction on whether
streetscape improvements on Colorado should be addressed at this time or be deferred
until such time as a streetscape program for Colorado is developed and there is more
2
certainty on whether Colorado Avenue will serve as the alignment alternate for the
Exposition light rail.
Discussion
Attendant Parking -Integrated Downtown Parking Management:
The City successfully converted other downtown parking facilities to attendant parking
approximately fifteen years ago. The conversion has provided benefits to the downtown
and was well received by parkers. Since then the City has invested in parking
management, both in terms of staff and technology, and has been able to accommodate
a significant increase in parking activity in the downtown with a proportionately smaller
investment in new parking spaces. Including Structures 7 and 8 in this system would
improve coordination of parking strategies, reduce confusion through consistent parking
procedures and pricing, and allow for better management of peak parking demand
periods.
The City currently operates public parking Structures 1 through 6 and 9 in the
Downtown through an attendant-parking program, whereby patrons take tickets on entry
and pay based on the amount of time parked. From 8 a.m. to 6 p.m., patrons are
provided two hours free, charged one dollar for each additional thirty minutes, with a
seven dollar daily maximum. After 6 pm, patrons entering a facility pay a flat fee of
three dollars. Monthly parkers pay $75 per month, plus parking tax, to use these
facilities.
In contrast to Structures 1 through 6 and 9, under a sublease with the City, Macerich
operates Structures 7 and 8, providing athree-hour free period, after which additional
parking is not allowed and autos may be ticketed by the City. Parking after 6 p.m. is
assessed athree-dollar flat fee from Thursday through Sunday, and monthly parking is
provided free to most Santa Monica Place employees.
3
Given the need to streamline operations and to eliminate pricing inconsistencies, City
staff and Macerich representatives have developed proposed contract terms for the
conversion of the structures to attendant parking. The terms are intended to be fiscally
neutral for the City/Agency and Macerich relative to current operations associated with
Structures 7 and 8. The proposed terms are as follows:
• Rates: Parking rate schedule for Structures 7 and 8 will be modified to be
consistent with Structures 1 through 6 and 9.
Operations: Structures 7 and 8 will managed under the direction of an expanded
City Parking Office and operating responsibility will be included in the City's
parking operator contract (currently Parking Concepts Inc.). Standard Parking
currently operates the limited parking attendant program on Thursday through
Sunday in Structures 7 and 8 for Macerich.
• Maintenance: Macerich will continue to assume responsibility for maintenance of
Structures 7 and 8, as well as provide enhanced security.
• Distribution of parking revenues: Currently, the Sub-lease Agreement between
the City and Macerich provides fora 50/50 split. of all parking revenues generated
from Parking Structures 7 and 8, following reimbursement to the City for
administrative costs and to Macerich for maintenance costs. In order to ensure
that the conversion to attendant parking does not negatively affect the finances of
the City or Macerich, staff recommends that the current arrangement remain,
with adjustments to include reimbursement to the City for operational costs, and
reimbursement to the City and Macerich for equal participation in up-front capital
costs (such as installation of parking control systems, "pay on foot" machines, a
central cashiering system, painting, re-striping, signage, and other associated
equipment) necessary to convert Structures 7 and 8 to attendant parking. The
recovery period for capital costs is proposed at seven years. The Sub-Lease
Agreement between the City and Macerich is proposed to include a provision that
the City is guaranteed a distribution of no less than $277,000 (plus CPI) in any
year for lost parking citation revenue in Structures 7 and 8 due to the conversion.
4
Thus, if the distribution to the City is less than the $277,000, the difference is to
be disbursed to the City before the split of 50/50 is applied. Attachments B and
C are provided to illustrate the current and proposed distribution.
Santa Monica Place Employee Parking: The "Off-Site Parking Agreement"
between the City and Macerich is proposed to be modified to allow the 278
monthly passes for employee parking to be available at Structures 7 and 8,
Monday through Friday, and at the Civic Center Parking Structure, Saturday and
Sunday. Currently, the agreement does not address weekday parking, though
Santa Monica Place employees have been parking in Structures 7 and 8 on
weekdays and in Parking Structure 5 on weekends for many years. As of
January 2008, Santa Monica Place employees have been parking at the Civic
Center Parking Structure on weekends. Macerich currently pays for weekend,
off-site parking for employees. Under the proposed terms, Macerich would pay
for weekday employee parking at a rate equivalent to 50 percent of the monthly
parking fees elsewhere in the Downtown. This rate in combination with the
weekend rate would be competitive with the monthly rate elsewhere in the
Downtown.
Installation.. of the parking controls is estimated to costs $2,000,000 and would
necessitate re-striping, resulting in a loss of 41 parking spaces. Although the
conversion will require some loss of spaces, it is expected. that the incorporation of
these facilities into the overall program for downtown will actually improve availability
because it allows for consolidated management and provision of real-time information
on occupancy. In any case, the Civic Center Parking Structure will accommodate
replacement parking for the 41 spaces. The existing "Off-Site Parking Agreement"
between the City and Macerich which provides for 278 parking spaces off-site, will be
modified accordingly.
Valet program - In an effort to provide convenience for its customers and patrons to the
downtown, Macerich proposes to operate a valet parking program upon re-opening of
5
Santa Monica Place. Macerich proposes to operate its valet program by parking
vehicles at Structures 7 and 8, Monday through Friday, from 8 a.m. to 6 p.m. During
other hours (evenings and weekends when retail parking demand is highest), valet-
parked vehicles would be parked in private parking facilities. Currently, the City allows
valet parking as one element of a coordinated parking system, and regulates valet
parking operations located within the boundaries of Ocean Avenue, Fifth Street,
Colorado Avenue, and Wilshire Boulevard. Similar to the other parking valet services in
the downtown, Macerich's proposed program would be subject to the City's valet
parking permit requirements and applicable fees.
Macerich's valet program is distinguished by its proposal to use Structures 7 and 8 to
park patrons' vehicles. Permitting such a request would require an amendment to the
Santa Monica Municipal Code -Valet Parking Ordinance Chapter 6.120, to allow valet
parking to take place in a publicly owned parking structure. The Agency would need to
authorize staff to pursue the appropriate text amendment application and environmental
analysis. Staff recommends that the Agency direct staff to pursue a valet program that
allows Macerich to operate daytime valet parking at Structures 7 and 8 provided that the
Transportation Management Division finds that Macerich's proposal will allow for 1)
access to the parking spaces at Parking Structure 7 and 8 remain open to the public
and not limited to the exclusive use of Macerich, 2) the valet program will not adversely
affect downtown circulation, 3) the valet program will not significantly compromise
revenue collection or circulation within the parking structures and 4) the day time valet
program complies with the requirements of the City's existing valet parking ordinance.
Parking revenues at Structures 7 and 8 would not be affected as the patrons of
Macerich's proposed valet program must pay the same standard fees that apply to self
parkers, with whatever surcharge Macerich determines is necessary to defray the costs
of providing the valet service.
6
Fagade Improvement Program:
On June 26, 2007, Council authorized the City Manager to execute a second
amendment to Contract No. 8551 with Pugh +Scarpa to provide concept designs for
fagade improvements for Structures 7 and 8. To date, Pugh +Scarpa has completed
the concept designs provided in Attachment A. A contract amendment in an amount not
to exceed $240,000 is requested to finalize the schematic designs ($170,000) and
related work efforts ($70,000).
As shown on Attachment A, solar photovoltaic systems installed on the roof decks at
Structures 7 and 8 have been integrated into the proposed designs to address the City's
Solar Santa Monica Initiative and electricity-saving objectives. As a separate item on
the Council agenda in the near future, the City's Energy and Green Building Programs
staff will present recommendations to invest in the installation of photovoltaic systems at
Structures 2, 4, 5, 7 and 8.
In addition to featuring sustainable energy elements, Pugh + Scarpa's design concept
includes a number of other improvements such as new Trex-clad veneers, colored
channel glass enclosing stairwells, public art, and street-level pedestrian-oriented
spaces. The purpose of incorporating pedestrian-oriented uses as part of the proposed
fagade improvement program is to enhance the pedestrian experience by creating a
more dynamic public space with improved connections between the mall and other
downtown destinations. Under the proposed fagade improvement concept, the Frank
Gehry-designed chain link curtain on the south-facing side of Structure 8, which spells
out Santa Monica Place, will be retained and restored. Preliminary cost estimates for
Structure 7 and 8 fagade improvements program is $4.5 million. The fagade
improvements would be funded by Agency funds allocated for structure improvements,
as well as the $1.4 million payment from Macerich for removing part of Structure 7.
7
Ground-Level, Pedestrian-Oriented Uses
Staff has investigated the viability of locating retail and bike parking at the street level
base of Structures 7 and 8.
Retail at Structure 7: Retail constructed in the form of small kiosk-type commercial
operations such as coffee stand, newsstand, florist, personal accessories, etc. could be
located within the existing 10-foot-wide landscape area located along Broadway, with no
loss of parking spaces and no need to address the 10-foot grade difference from the
first level of the parking facility and street sidewalk.
Arts Spaces at Structure 8: Another contemplated use of ground-level spaces in
Structure 8 is the creation of small art exhibit spaces to help enliven the pedestrian
environment of Colorado Avenue. When the Bayside Corporation District Board
reviewed the Pugh + Scarpa conceptual designs on October 25, 2007, they
recommended the elimination of the proposed exhibit spaces at the base of Structure 8
on Colorado because of concerns about the difficulty in managing rotating art exhibits.
While staff believes that there are arts opportunities in the location, the overall
pedestrian environment may be better served by using the parking set-back for widened
sidewalks, from the current width of 9 feet to 20 feet. If the Agency wants to retain both
the exhibit space and widen the sidewalk, the exhibit space can be recessed into
Structure 8; though this would result in the loss of approximately thirteen parking
spaces.
Retail at Structure 8: Similar retail uses described for Structure 7 could also be
developed for Structure 8, and accomplished through reconfiguration of an area located
at Second and Colorado, which would result in the loss of approximately ten parking
spaces. Preliminary discussions with leasing experts indicate that retail spaces in this
section of Colorado Avenue may be difficult to rent due to the auto-oriented nature of
Colorado Avenue in this block. However, the future terminus of the Exposition Light
8
Rail on Colorado Avenue, as well as the implementation of the Civic Center Specific
Plan, could increase the future feasibility of retail in this location.
Bicycle Transit Centers: The City's Downtown Urban Design Plan (adopted 1997)
emphasizes balancing the streets to accommodate mixed modes of traffic, making
streets bicycle-friendly and providing bicycle parking throughout downtown, with
activated storefronts to enliven the pedestrian experience. The City's Circulation
Element (revised 1998) also contains as one of its major objectives a focus on non-
motorized transportation and includes a set of policies that encourage addition of
bicycle lanes and bicycle parking. In an effort to meet the City's sustainability objectives
and to support the development of a multi-modal transportation system that reduces
pollution and motor vehicle congestion, the City's Planning and Community
Development staff successfully obtained a grant funding commitment from the Los
Angeles County Metropolitan Transportation to build aBike-Transit Station in Structure
2 featuring attendant and self-parking as well as a bike center office, rental and retail
space, a restroom/changing room and storage lockers .
Given the potential to provide additional bike parking for the downtown and to satisfy an
existing Coastal Commission condition of approval on the Santa Monica Place project
requiring 100 bike parking spaces, City staff has initially explored the feasibility of
providing additional bike station-type facilities in the ground floor of Structures 7 and/or
8, potentially as part of a system of bike stations. Preliminary evaluation indicates that
both parking structures could support bike-transit centers.
Further study would need to confirm the feasibility and appropriateness of constructing
bicycle parking facilities at Structures 7 and/or 8. Based on findings, operational
arrangements (private, public, or public/private partnership) and pricing would be
determined as the City-wide program is developed.
9
Considerations Related to Pedestrian-Oriented Uses
• Street Activation via Retail -- Encourages retail uses and services to enhance
visual interest and pedestrian vitality. Approximately 3,000 square footage of
new retail could be created and a formal determination regarding operators (that
include the City, Macerich or a private contractor to oversee leasing, managing
and operating these spaces) would be made by Council and Agency, at a later
date.
• Bike Ridership and Bike Parking -- Encourages bike ridership, promotes
alternative modes of transportation, reduces traffic congestion in the downtown,
and provides secure and convenient bicycle parking. Construction of bike
parking facilities at Structure 7 and/or Structure 8 would potentially result in loss
of approximately 24 car parking spaces (approximately eleven spaces at
Structure 7 and thirteen spaces at Structure 8). However, in return, an estimated
150 additional bike parking spaces would be created for the Downtown. This
would be designed and coordinated with the feasibility study currently underway
on Parking Structure 2 and the City's plan for a bike transit mobility center.
• Parking Spaces - If the highest priority is to preserve the greatest number of car
parking spaces possible for the downtown, retail could be constructed at
Structure 7 (resulting in no loss of parking spaces) and Structure 8 would not be
changed, eliminating proposed pedestrian oriented uses at Second and
Colorado, resulting in no street activation measures.
• Staff Recommendation- To promote a mix of uses and support sustainable
transportation objectives, staff recommends that the fagade improvement
program include construction of pedestrian oriented uses at both Structures 7
and 8. The pedestrian-oriented spaces should be configured in such a way as to
maximize the efficiency of the limited areas, and designed to be sufficiently
flexible to accommodate a variety of staffing and operating scenarios, including
10
the potential to change use from retail to bike parking facility and vice versa over
time. The pedestrian-oriented use at the Structure 8, on corner of Second Street
and Colorado Avenue, in particular, should be designed to accommodate both
potential uses.
In terms of operational scenarios for the pedestrian-oriented uses, the leasing and
managing responsibilities of the retail spaces could be assumed by the City, Macerich
or a third party, such as the agent who runs the cart program on the Promenade. Given
Macerich's expertise in retail leasing, as well as the opportunity to ensure that the
parking structure leasing complements the retail mix within Santa Monica Place, staff
recommends that an agreement be prepared to assign this responsibility to Macerich.
Operations of bicycle parking facilities would be determined as the City-wide program
for bicycle parking facilities in the downtown is developed.
To maximize savings relative to project time and construction costs, as well as to
eliminate conflicts among multiple construction entities on a single site, it is
recommended that the Agency direct staff to negotiate terms with Macerich to perform
the construction of the proposed attendant parking and fagade improvements. Agency
staff would hire an independent construction inspector to ensure proposed construction
is completed in accordance with the City's standards. At a future date, staff will return
to the Agency and Council with any necessary approvals including adoption of
resolutions to waive the proposed construction from competitive bidding. Construction
of the attendant parking and fagade improvements will be subject to prevailing wage
and all applicable State and local laws. A summary itemizing staff recommendations is
provided in attachment D.
Colorado Avenue Streetscaoe Issues
Because a streetscape program has not yet been developed for Colorado, staff seeks
direction on whether streetscape improvements including reconstructed sidewalks,
pedestrian lighting between Second and Fourth Streets, and street trees on Colorado
11
Avenue, should be carried out in conjunction with the proposed Fagade Improvement
Program or, alternatively, whether streetscape improvements should be deferred until
such time as a streetscape program for Colorado Avenue is developed and there is
more certainty regarding the exposition light rail alignment. If streetscape
improvements are deferred, the existing sidewalks and trees on Colorado Avenue
between Second and Fourth Streets will be maintained until improvements are
implemented in the future.
In addition, deferment of streetscape improvements on Colorado would affect a
condition of Agency approval on the Santa Monica Place remodel project, which
requires Macerich to perform certain improvements on Colorado, in front of the Mall and
Macy's. Staff would need to prepare a public notice to modify Macerich's conditions of
approval to relieve them of their obligation to carry out improvements (demolish and
replace sidewalks, pavement and landscaping, and install pedestrian lighting and street
trees) in exchange for an in-lieu payment. Macerich has expressed that they would
prefer to proceed with construction of improvements, however, if required to pay in-lieu,
they urge the City to complete streetscape improvements in front of the Mall and Macy's
on Colorado by 2009.
Given the extensive remodel of Santa Monica Place and the scope of the proposed
Fagade Improvement Program, staff recommends that Council authorize the
implementation of the streetscape improvements on Colorado between Second and
Fourth Streets, with the understanding that the improvements would be completed by
Fall 2009 and that the proposed light-rail or other improvements may necessitate
relocation of certain streetscape improvements in the future.
CEQA Analysis
Once the Agency provides direction on the proposed project, staff will complete
environmental review, prepare necessary reports and resolutions, and return to Council
and Agency at a future date for formal approval and any necessary CEQA review.
12
Commission Action
The parking structure facade concept has been reviewed and recommended to the
Council by the Bayside District Board of Directors on October 25, 2007. Following
direction from Council, staff will submit the fagade improvement concept for Parking
Structures 7 and 8 to the Architecture Review Board (ARB) for approval.
Next Steps
Following Agency directives from this meeting, staff will return at a later time to obtain
formal authorization to proceed with:
• Negotiations with Macerich for terms of construction related to Attendant Parking
and Fagade Improvements Program
• Resolution to waive public bidding for construction of improvements
Application to the City and Coastal Commission for applicable permits
Financial Impacts and Budget Actions
1. Funds for the third amendment of Contract No. 8551 in an amount not to exceed
$240,000 are available in account 0770776.589000;
2. Funds for the City's portion of the parking attendant improvements currently
estimated at $1 million are available in account 0770776.589000;
3. Funds for parking structure Fagade Improvements in the amount of $3,158,623 are
available in account 0170621.589000; and
4. Upon receipt of the payment from Macerich for the relinquishing of the easement on
Parking Structure 7, an appropriation of $1.4 million should be made to account
0160621.589000. These funds will be made available for the costs associated with
the Facade Improvement Program on Parking Structures 7 & 8.
13
Prepared by:
Elana Buegoff, Senior Administrative Analyst
Nia Tang, Senior Administrative Analyst
Approved:
Andy Agle, Directo
Housing and Economic Development
Forwarded to Council:
Attachment A: Proposed Facade Improvement Concepts
Attachment B: Current Parking Revenue Distribution
Attachment C: Proposed Parking Revenue Distribution
Attachment D: Summary of Issues and Recommendations
14
Parking Structures 7 and 8
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ATTACHMENT A PARKfNO ~AaA~es
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CURRENT
PARKING REVENUE DISTRIBUTION
GROSS REVENUE
-PARKING TAX
NET REVENUE
ATTACHMENT B
CITY MACERICH
1. PARKING PROGRAM ADMIN COSTS X
2. PARKING PROGRAM OPERATIONAL AND FACILITIES
MAINTENANCE COSTS X
3. CITY PREFERENCE PAYMENT X
4. MACERICH PREFERENCE PAYMENT X
REMAINING GROSS REVENUES
50% / \ 50%
CITY I ~ MACERICH
PROPOSED
PARKING REVENUE DISTRIBUTION
GROSS REVENUE
-.PARKING TAX
NET REVENUE
1. PARKING PROGRAM OPERATIONAL COSTS
2. PARKING PROGRAM ADMIN COSTS
3. CITY PREFERENCE PAYMENT
4. ATTENDANT PARKING ANNUALIZED CAPITAL IMPRV COSTS
5. MACERICH PREFERENCE PAYMENT
6. FACILITIES MAINTENANCE COSTS
ATTACHMENT C
CITY MACERICH
X
X
X
X X
X
X
KEEP WHOLE RELATIVE TO TODAY
50%
CITY
LOST CITATION REVENUE*
OTHER CAPITAL COSTS
50%
MACERICH
SECURITY
OTHER OPERATING
" IF DISTRUBUTION TO CITY IS LESS THAN
$277,000 (PLUS CPI) IN ANY YEAR, THE DIFFERENCE
IS DISBURSED TO CITY BEFORE REVENUE SPLIT
ATTACHMENT D
Summary of Issues and Recommendations
Parking Structures 7 and 8
Issue Recommendation Agency Council
-. _w
1 Conversion to attendant parking Move forward x
2 Valet parking program
3 Fagade improvements
Pursue text amendments x
Move forward, including
flexible, pedestrian-oriented x
spaces
4 Leasing of retail
5 Construction in parking structures
6 Colorado streetscape improvements
Move forward with Macerich x
Move forward with Macerich- x
Move forward in near-term x
7 Design contract amendment Authorize amendment x
Reference Contract
No. 8900
(CCS/RAS) and
amendment to
Contract No. 8551
(CCs)