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sr-051110-8cc7 City ®uncil e Ciiy of Santa Adoniea~ City Council Meeting: May 11, 2010 Agenda Item: To: Mayor and City Council From: Carol Swindell, Director of Finance Eileen Fogarty, Director of Planning and Community Development Subject: Resolution establishing new parking rates for Downtown. Structures 1-9, Main Library, Civic Center Parking Structure, and Civic Auditorium Lot. Recommended Action Staff recommends that City Council adopt attached resolution (Attachment A) establishing new parking rates for Downtown Structures 1-9, Main Library Structure, Civic Center Parking Structure, and the Civic Auditorium Lot, as a first phase in implementing the Walker Parking Study recommendations. Executive Summary Pursuant to the direction of City Council at the September 8, 2009 Council meeting, staff proposes changes to parking rates in Downtown City-owned parking structures, consistent with recommendations of the Walker Parking Study. The proposed rate changes included in this report were developed through additional study of rates in comparable areas and ongoing consultation with the Bayside District Corporation. The Bayside District generally supports the Walker Study recommendations. After lengthy discussions with the Bayside District Parking Committee and members of the public, staff recommends that the decision to reduce "two hours free" parking in the Downtown be deferred until a later time. This report details the proposed rate changes. The proposed rate changes for this first phase are as follows: 1) Increase the maximum daily rate in Downtown Structures 1 through 9 from $7.00/day to $9.00/day and the Civic Center maximum from. $8.00/day to $9.00/day. 2) Increase the monthly rate for Structures 1 through 9 from $82.50/month to $121.00/month. 3) Increase the evening flat rates in Downtown Structures 1 through 9 from $3.00 to $5.00 and implement new evening maximum rates for the Main Library Structure, Civic Center Parking Structure, and Civic Auditorium lot at a lower rate of $3.00. The recommended changes provide lower cost parking options during evenings and weekends in peripheral locations. Furthermore, the recommended changes provide 1 lower cost monthly parking rates outside of the Downtown core. These recommended changes are also consistent with the policy objectives of the LUCE in Germs of improving the management of parking resources as a part of the City's overall transportation system. The implementation of the rate changes proposed herein will provide additional revenue, a portion of which can be used to finance the reconstruction of Parking Structure #6. Full implementation of the Walker Parking Study recommendations will provide additional revenue. Background The Walker Parking Study, endorsed by Council on September 8, 2009, was afollow-up to the Downtown Parking Program, adopted by Council on May 9, 2006. The Walker Parking Study evaluated parking .operations and market conditions in Downtown Santa Monica and analyzed revenue opportunities from parking rates, in-lieu fees, property- based assessments ahd other sources as a means to fund recommended improvements. Walker's overall recommendation was that other than the additional 576 parking spaces planned in the reconstruction of Parking Structure Nos. 1 and 6, Downtown Santa Monica does not need additional public parking at this time. Rather, in coordination with the citywide Transportation Management Strategy identified for implementation in the Circulation Element of the LUCE, Walker recommended implementation of several actions to support access to Downtown. These actions included: ® Strategically increase on-street and off-street public parking rates in the Downtown core to more efficiently and effectively utilize existing public and private parking resources to meet parking needs, thereby creating greater availability of parking for visitors to Downtown; ® Use increased parking revenues to fund additional programs to support employee access to Downtown by transit, bicycle and carpooling; o Use increased parking revenues to support shuttle service to outlying. parking resources, including the Civic Center Parking Structure during parking structure reconstruction; ® Use parking revenues to enhance parking operations, parking technology, wayfinding, parking occupancy assessment and capital replacement and repair; ® Implement a centralized valet operation to access private parking spaces during off- peak periods, supplemented by agreements with office building owners to make empty spaces available to the public on evenings and weekends; and 2 • Regularly review parking occupancies and adjust parking rates to encourage optimal use of public parking resources. At its September 8. 2009 meeting, City Council directed staff to return with actions necessary to implement the recommendations of the Walker Parking Study. On February 23, 2010 staff presented an implementation plan for the recommendations of the Walker Parking Study. At that meeting, staff noted that that in order to implement the pricing recommendations of the Walker Study, a phased approach would need to be developed. Certain recommendations, such as changes to parking structure rates, are relatively easy to implement and require little or no capital .costs. Other recommendations, such as changes in parking meter technologies, require more time and substantial capital investment. Therefore, actions proposed by staff related to the Walker Study recommendations will occur in a phased manner. The first phase is recommended to be proposed rate adjustments for Downtown parking structures. Discussion At the February 23, 2010 Council meeting, staff stated that a rate study would be completed prior to implementing any of the rate changes proposed by the Walker Parking Study. In addition to conducting the rate study, staff worked directly with the Bayside District Corporation through regular monthly Parking Implementation Committee meetings to refine the proposed rate changes. The following sections describe the rate study, the development of the proposed parking rate changes in coordination with the Bayside District Corporation, public outreach, and the proposed rate changes. Rate Study A summary of the rate study completed by staff is attached to this staff report (Attachment B). 3 Bavside District Corporation Input The proposed Implementation Plan was endorsed by the Bayside District Corporation's Parking Implementation Committee on January 12, 2010 and the Bayside Board on January 28, 2010. Following support of the Implementation Plan, staff met with the Bayside District Corporation's Parking Implementation Committee on February 8, 2010 and March 9, 2010 to refine the proposed parking rate changes. On March 25, 2010 the proposed rate changes were supported by the Bayside District Corporation Board. The Bayside District Corporation did not endorse the initial recommendation in the Walker Parking Study to reduce the existing "two hours free" parking for Downtown Structures 1-9 to "one hour free." As noted in the rate study, the majority of destination retail areas in the greater Los Angeles area provide some form of "free" parking for patrons; therefore, staff recommends maintaining the existing "two hours free" parking until a viable and effective alternative system, such as validations, can be identified. The Bayside District Corporation also advocated for reduced-cost monthly parking at selected City-owned facilities for employees who work in the Downtown area. For this reason, staff recommends maintaining the existing monthly parking rates at the Main Library Structure, Civic Center Parking Structure, and Civic Auditorium lot, while also recommending an increase in the monthly parking rate for Downtown Structures 1-9. In these cases, the Walker Study recommended an increase in monthly parking rates for all City-owned facilities. Public Outreach During the development of these proposed rate changes, staff heard input from the public through public comment at Bayside District Corporation meetings. Additionally, staff met with the Chamber of Commerce shortly after the Council's September action to gather input on the Walker Study and potential implementation plans. 4 Proposed Rate Changes The proposed rate changes are as follows: Downtown Structures (PS1 - 9): • Maintain existing "2 hours free' parking in Downtown Structures (PS 1-g) • Maintain existing rates'(8:00 AM to 6:00 PM) at $1.00 per 30 minutes • Increase evening flat rates (after 6:00 PM) from $3.00 to $5.00 • Increase daily maximum rates from $7.00 to $9.00 • Increase monthly parking rates from $82.50 to $121.00 Main Library Structure: • Maintain hourly rates at $0.50 per 30 minutes, or $1.00 per hour • Maintain daily maximum rates at $10.00 • Maintain weekend (Saturday and Sunday) and holiday daily flat rate at $3.00 • Implement new evening maximum rate (after 4:00 PM until 11:00 PM) at $3.00 • Maintain monthly parking rate at $82.50 Civic Center Parking Structure and Civic Lot: • Reduce hourly rates from $1.60 per 20 minutes, or $4.80 per hour, to $1.50 per 20 minutes, or $4.50 per hour • Increase daily maximum rates from $8.00 to $g.00 • Implement new evening flat rate(after 6:00 PM until 6:00 AM) at $3.00 • Maintain weekend (Saturday and Sunday) and holiday-daily flat rate at $3.00 • Maintain monthly parking rate at $82.50 • Implement :daily flat rate up to $15.00 for event days, with. approval of the City Manager. Financial Impacts & Budget Actions The Walker Parking Study recommends using the changes in parking rates as a means to manage traffic and parking and also as a funding mechanism to implement parking programs. The Parking Structure 6 staff report, agenda item 8-D, also identifies funds generated from this recommendation as one of the sources to fund that project. Finance 5 staff is scheduled to bring forward a financing strategy for the Walker Study recommendations in early fall, following completion of a comprehensive organizational review currently underway. The recommendations in this report would generate approximately an addition $175,000 per month or $2,100,000 annually in revenue. The financing of the reconstruction of Parking Structure 6 is consistent with the Walker recommendations and would leave approximately $1,500,000 annually to fund other study recommendations. Since the rate changes at the Civic Center Parking Structure and Civic Auditorium Lot would only be effective on non-event days, no change in event-related parking revenues is anticipated. Community and Cultural Services Department staff estimate $32,587 in additional event-related parking revenues for FY2010-2011 Community and Cultural Services Department staff estimates a loss in revenue of $10,918.80 (based on 2009 parking sales data for the Civic Auditorium lot) due to the proposed reduction in hourly rates. Due to the proposed new rates, a net increase in parking revenue of $54,959 is estimated for FY2010-2011. Prepared by: Sam Morrissey, P.E., Principal Transportation Engineer Approved: Forwarded to Council: o~~~~ ~ 1~~~ ~~ -.~ Carol Swindell Rod Gould Director of Finance City Manager ~. Eileen Fogarty Director, Planning an Commu ity Development 6 Attachments: A. Resolution B. Summary of Rate Study Attachment A Resolution Attachment 6 Rate study Summary of Rate Study Updated: February 8, 2010 The Walker Parking Study (Walker Study) included recommendations to adjust parking rates in Downtown Parking Structures (Structures 1-6 and 9). The rate adjustments proposed in the Walker Study are summarized below: • Increase the evening flat rate from $3 to $5 e Increase the maximum daily rates from $7 to $9 • Increase the monthly rate from $82.50 to $121.00 • Charge $1 per hour beginning in the second hour and charge $2 per hour for each additional hour Note: The rate changes shown above are the recommendations of the Walker Study and not identical to those recommended for implementation as part of Phase 1 and described in the May 11, 2010 City Council meeting staff report. City staff conducted a study of parking rates in similar areas throughout Southern California. Parking rates for facilities (surface lots or structures) were obtained for the following areas: • Downtown Los Angeles e Mid-Wilshire • West Hollywood • Hollywood Area • Other Retail Centers o Westfield Century City o West Hollywood Gateway o Paseo Colorado o The Grove o The Americana o The Sunset 0 8000 Sunset o Westside Pavilion • Entertainment Districts o Huntington Beach. o Newport beach o San Diego The average rates charged in parking facilities throughout Southern California are as follows: '..Structure Rates Around the SoCal Area 'I`Favs7erd8c~~4o>rRate'x ~ '~ ~ '` pt~n'i(ttiC~~~a#e . , .yr_ ; _ 1Z 1Sti t5 M? ~ati~ 2QM~ FIOU~ 14~a 8;~ QK " i~ 'e5 ~ W ~t ~ ~ ~ k~k l f ,~s~c~u , nc >~ y trm t ~e e ~ ~ nc s ~ AVERAGE $1.05 $2.26 $1.55 $6.24 $18.87 $10.69 $11.65 $13.29 $158.84 $234.59 $123.54 $120.45 ~ x ROUNDED AVERAGE $1.00 $2.00 $2.00 $6.00 $19.00 $11.00 $12.00 $13.00 $159.00 $235.00 $124.00 $120.00 Source: Citywide Rate Survey, City of Santa Monica and Central Parking, November 2009 Page 1 of 5 As shown on the table above, the average hourly rates, daily maximum rates, and monthly rates are all well above the Walker Study recommendations.. However, it is important to recognize that the areas surveyed have unique characteristics, and many of the areas (such as Downtown Los Angeles) have substantially higher parking rates than recommended in the Walker Study. To account for the unique characteristics and associated higher parking rates of areas such as Downtown Los Angeles, City staff identified selected areas included in the rate survey in order to compare the Walker Study recommended rates for Downtown Santa Monica to areas with similar features and attractions. For the purposes of this comparison, the following areas were identified: • Adjacent Shopping Areas o Westfield Century City o West Hollywood Gateway o The Grove • Downtown Areas o Hollywood and Highland o San Diego Gaslamp Quarter o San Diego Convention Center • Other Similar Areas o Paseo Colorado The chart below presents a comparison of all rates and parking costs for adjacent shopping areas (large shopping centers with paid parking): Page 2 of 5 $30.00 $25.00 $20.00 v ~. $15.00 $10.00 $5.00 or rarrcmg ~osis ror Ha~acenc ~noppmg wreas $0.00 1 2 Santa Monica -Walker Recommended Self Parking ®westField Ceniury City Self Parking -^WCCAMC VaI '. ®WCC Restaurant West Hollywood Gateway Self Parking ='^^The Grove Self Parking ~^^^^The Grove Self Parking -Valet 'a7he Grove Cinema 3 4 5 6 7 8 9 Duration (hrs) Source: Citywide Rate Survey, City of Santa Monica and Central Parking, November 2009 Note that with the proposed Walker Study rate increases, the City of Santa Monica's Downtown structure parking rates would generally remain lower than other identified areas. Only self parking at the Westfield Century City would cost less than Downtown Santa Monica. In terms of longer-term parking, the City of Santa Monica would continue to offer the lowest cost daily maximum parking at $9.00 for six hours or more, while other areas range from $12.00 to $24.00. /[ j yt i Page 3 of 5 The chart below presents a comparison of all rates and parking costs for similar Downtown areas as described previously: Comparison of Parking Costs for Similar Downtown Areas Sizoo 5io.oD I ~ Santa Monica -Walker Recommended Self Parking i m_ $8.00 ~ n., i ~` d ~ ~ !q= -San Diego Convention Center ~ ~~ a w ~~+~ ~ $6.00 ~,...:' ~_ ,ts` ~ ~^^^^San Diego Gaslamp 4uarte r $4.00 --- - - ". $2.00 ~ ..*°~ i ---Hollywood and Highland Self Parking $0.00 1 2 3 4 5 6 7 8 9 Duration (hrs) Source: Citywide Rate Survey, City of Santa Monica and Central Parking, November 2009 The chart above shows that with the Walker Study recommended rates, Downtown Santa Monica's Parking Structure rates would be generally consistent with both the Hollywood and Highland center and Downtown San Diego's Gaslamp Quarter. It would cost more to parkin Downtown Santa Monica for six hours ($9.00), yet at eight hours the cost to park in Downtown Santa Monica would be between the cost to park at Hollywood and Highland or in Downtown San Diego's Gaslamp Quarter. Many of the shopping areas surveyed include some "free parking," in most cases it is the first hour free. The Americana, the Grove; and West Hollywood Gateway shopping plazas all offer the first hour free; the Paseo Colorado shopping center offers the first 1.5 hours free with valet; while the Westfield Century City shopping center offers the first three hours free. Currently the city of Santa Monica provides two hours free. The Walker Study recommendation to provide the first hour free and charge $1.00 for the second hour will continue to be evaluated and may be implemented at a later point in time. Page 4 of 5 One of the most significant findings of the rate survey is that in adjacent shopping areas the daily maximum rates tend to be substantially higher than the Walker Study recommended rates. This is assumed to be a specific strategy used to deter long-term parking in the shopping center structures. In many locations, the shopping centers (such as Westfield Century City and others) are surrounded by commercial office buildings. In these locations, the parking rates make it unattractive for employees of adjacent commercial buildings to park for long periods in the shopping center facilities. Page 5 of 5 Reference Resolution No. 10475 (CCS).