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~;tYOf City C®uncil Rep®rt
Santa Monica
City Council Meeting: November 9, 2010
Agenda Item: 3 _ R
To: Mayor and City Council
From: Carol Swindell, Finance Director
Subject: Amend Contract with Central Parking System to Add Operation of the 400.
block of Colorado, 1326 Fifth Street, and Main Street Parking Lots
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute an amendment to
Contract #9050 (CCS) with Central Parking System to add to scope of work
operation of the 400 block of Colorado, 1326 Fifth Street and Main Street
parking lots. Increase the annual operating budget of the contract by $174,000
annually to $5,582,738.
2. Approve the budget changes as outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
Over the past year, the Business and Revenue Operations Division has completed an
internal review of parking operations and has developed an Implementation Plan for the
Walker Parking Study. Both the Walker Study and internal reviews have identified the
need to have coordinated parking operations to effectively manage the operations and
maintenance of the City's parking resources. Ensuring consistent operation of all of the
City's parking resources also furthers the goals of the Land Use and Circulation
Element (LUCE) and traffic and parking plans as various planned projects in the
downtown and Civic Center begin construction. Incorporating the operations of the Main
Street, 1326 Fifth St., and, potential interim use of the lot on the 400 block of Colorado,
would further these goals. In the downtown, this recommendation is expected to
increase revenue sufficiently to cover all increased cost. Although the recommendation
is not projected to increase revenue at the Main St. lots, it would improve the overall
operation and maintenance of those lots, providing a better experience for Main St.
parkers.
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Background
On April 7,-2009, Council authorized a contract with Central Parking System to operate
the City's off-street parking locations through 2012. Central Parking System currently
operates all City-owned parking structures and the beach parking lots. Adding
operations for the Main Street, 1326 Fifth Street, and the lot on the 400 block of
Colorado supports the City's efforts to establish a unified parking operation citywide to
ensure consistency in the operations and customer experience at all City parking
locations. This unified program is also supported by the Council's action to install
standard equipment at the parking locations. Incorporation of these lots into parking
operations will further provide for the implementation of the Walker Parking Study
recommendations and the detailed development of a replacement parking strategy
during the construction of Parking Structure 6 and the demolition of Parking Structure 3.
Discussion
400 block of Colorado lot
The former Sears Tire Center on the 400 block of Colorado is the expected terminus for
the Exposition Light Rail line. Staff recommends that the City utilize the site as a
temporary public parking lot, both to meet the demand for parking spaces and to
generate income for the Big Blue Bus Fund until such time as the site is needed for
construction staging for the light rail line. The site can accommodate approximately 450
parking spaces, will be operated with automated payment equipment; and will be
accessible at all times. An annual operating expenditure increase of $52,000 is
anticipated as well as an increase in Big Blue Bus Fund revenue of $465,500. The
revenue assumption is based on current downtown parking rates without the 2 hours
free period. The annual operating cost is base on number of daily collections,
inspections, and parking spaces. Paving of the lot to allow for parking is anticipated to
cost approximately $150,000. The duration of time the City would be able to operate the
lot as parking is currently unknown. To ensure that the estimated cost to pave and
operate the lot is recovered, staff would confirm the ability to allow vehicles to use the
parking lot for at least a year prior to authorizing the additional work.
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1326 Fifth Street
The City parking lot at 1326 Fifth Street can accommodate 100 parking spaces. This lot
will be operated with automated payment equipment and is critical to the downtown
replacement parking program discussed in an October 12. 2010 Information Item. An
operating expenditure increase of $59,000 is needed to manage this lot which is
anticipated to increase General Fund revenue by $180,991. The revenue assumption is
based on current downtown parking rates without the 2 hours free period.
Main Street Parking Lots
The Main Street Parking Lots located between the 2300 and 2800 blocks of Neilson
Way are currently operated using 351 single space parking meters that only accept coin
payment. On October 12, 2010, Council authorized the purchase and installation of
automated payment equipment at these lots. In addition to maintenance and operations
of the pay-on-foot machines, incorporating these lots into the Central Parking Systems
parking contract will provide daily inspections, basic cleaning and maintenance of the
lots, identical to the operations and maintenance of the beach lots. This portion of the
recommendation would improve the operations and maintenance of the lots but not
result in increased revenue. An operating expenditure increase of $30,000 is needed
for the remainder of this fiscal year. The annual cost for operation and maintenance of
the parking lots by Central Parking Systems is estimated at $63,000. In addition to
collection and equipment maintenance, Central Parking Systems will also be
responsible for daily maintenance services, including but not limited to, parking lot
sweeping, trash removal, signage, general cleaning and repairs, graffiti removal,
landscape maintenance, and basic parking spaces restriping. The operating budget also
covers armored car service, daily facilities inspections, credit card processing cost and
reconciliation. If the lots are continued to be operated as they currently are with City
staff collecting the money from the new multi-space meters and no daily maintenance,
the estimated annual cost is $30,000 and is within existing operating budgets.
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The total annual increase in operating expenditures of $174,000 for all three locations
covers supervisory, maintenance and revenue collection services provides by Central
Parking System for all. three parking facilities listed above and. will be recovered through
increased parking revenue throughout all locations.
400 block of Colorado and 1326 Fifth Street Parking Rates
On November 23, 2010, staff plans to bring to Council a parking rate resolution that
proposes to incorporate additional changes to match historical operational practices.
That report will include a recommendation that parking rates for the two downtown
locations be set similar to public parking rates in the Bayside District without the two
hours free. The proposed monthly parking rate is $121.00, per month and short-term
parking would be $1.00 for each 30 minutes.
Financial Impacts and Budget Actions
The following FY10-11 budget changes will be necessary:
1. Increase the following revenue accounts:
Account: 01225.404270 Amount: $ 90,500
Account: 41642.402650 Amount: $232,750
2. Appropriate the following operating expenditures:
Account: 01225.555010
Amount: $87,000
Prepared by:
Frank Ching, Parking Coordinator
Approved:
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Carol Swindell
Director, Finance Department
Forwarded to Council:
Rod Gould
City Manager
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Reference Amended
Contract No. 9050 (CCS).