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SR 02-12-2019 3J City Council Report City Council Meeting: February 12, 2019 Agenda Item: 3.J 1 of 6 To: Mayor and City Council From: David Martin, Director, Parking Operations (PCD) Subject: Award RFP to Smarking, Inc. for Parking Data Analytics Management Services Recommended Action Staff recommends that the City Council: 1. Award RFP #182 to Smarking, Inc., a California based company, for the parking data management and analytics services for the Planning and Community Development Department; 2. Authorize the City Manager to negotiate and execute an agreement with Smarking, Inc. in an amount not to exceed $1,219,000 (including a 10% contingency) for five years with future year funding contingent on Council budget approval. Summary The City owns and operates 42 public parking facilities with approximately 14,000 available off-street parking spaces, with an additional 5,800 on-street parking meters deployed throughout the city. Currently, several different parking management systems are employed to capture data and manage transactions at these facilities. Staff seeks to data-mine the parking data from these off-street parking facilities and on-street parking meters to proactively manage parking demand and improve the customer experience. As part of the City’s larger focus on using data analytics to drive overall performance, staff recommends awarding an agreement to Smarking, Inc. to provide the City with one streamlined parking data management system that allows staff to aggregate vast quantities of data to maximize future parking availability and pricing, and make more informed staffing decisions based on data analytics. Discussion Due to the locations and unique designs of the various public parking facilities, the 2 of 6 city currently uses four customized parking access and revenue control systems that provide payment options and access to the facilities and on -street parking meters. These systems process massive quantities of data that are difficult to arrange in understandable formats. Staff activated a provision in the existing agreement with SP Plus (#10201 CCS), the City’s parking operator, and Smarking, Inc. as the subcontractor, to aggregate the City’s parking data from the various parking technology systems into one holistic data analytics platform that essentially processes the data into a single, consistent tabular and graphical format. The work effort was conducted within the Planning and Community Development Department budget as part of a pilot program to produce a comprehensive parking utilization and rate study to understand the effects on the parking enterprise after the 2016 arrival of the Expo Light Rail. The data aggregation was done in such a way to protect the privacy of our parking services users. All of the anonymous parking transaction data was aggregated onto a secured and proprietary platform that remains in compliance with all applicable current and amended Payment Card Industry Data Security Standard (“PCI DSS”) security requirements. The parking transaction data is encrypted and then transferred onto servers hosted in the cloud. The data stored on the servers only contains entry/exit ticket information and transaction amounts, and does not contain any customer personal information (e.g. name, credit card number). This is a unique feature of the Smarking tool, and it is customized to work with the data gathering systems that Santa Monica currently uses in its parking operations program. Use of the Smarking, Inc. tools and consultant team members that includes data scientists, engineers, and analysts allowed staff to:  Provide real-time parking occupancy information that can quickly be displayed on our existing and soon to be upgraded dynamic wayfinding signage to reduce parking and traffic congestion throughout the City, as well as improve direction and guidance information broadcast to the public across web-based media  Make more informed operational and staffing deployment decisions based on 3 of 6 peak occupancy and occupancy contribution analysis (e.g. transient parkers versus monthly parkers), thereby improving customer service for residents and visitors using the facilities  Provide policy makers the means to make data driven decisions based on historical and real-time evidence that clearly represents parking behavior throughout the City  Improve the accuracy and frequency around gathering and reporting parking data to stakeholders  Measure and report on the results of policy and pricing decisions more frequently in highly useful graphical and tabular formats  Make the City’s parking data more accessible and transparent for use by other City Departments and the public  Make improved land use decisions to strategically repurpose underutilized parking into higher and better uses  Analyze parking demand for each facility and over various time frames, and propose demand-responsive parking pricing strategies to manage the weekday and weekend demands in the Downtown core to Council on March 6, 2018 based on data analytics and predictive demand modeling The initial $0.2 million pilot partnership with Smarking, Inc. has yielded a significant return on investment, as Council ultimately adopted a new parking pricing strategy during its April 24, 2018 meeting that is still on track to recover the $3-5 million in revenues lost over the last two years due to a downward trend of parking transactions related to changing mobility patterns. To provide some additional context, in the past the City has paid upwards of $0.3 million to consultants for one-off parking pricing and utilization studies, that while successful, were only snapshots in time that did not provide an ongoing parking data management tool for City staff to utilize for future in- house parking studies. Establishing an ongoing, real-time parking data information system is consistent with data-driven, metrics based 21st century municipal management of its parking enterprise. 4 of 6 Vendor Selection RFP Data RFP Posting Date RFP Posted On RFP Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 7/16/18 City's Online Bidding Site Santa Monica Daily Press 89 10 9/13/18 RFPs Received Selection Criteria All Traffic Solutions eVolving Apps Municipal Code SMMC 2.24.073 Cambridge Transportation Passport Labs Evaluation Criteria Training/credentials/experience, competence/skill, ability to perform services promptly, sufficiency of financial/other resources, character/reputation, and price. CloudParc, Inc. Smarking, Inc. Conduent T2 Systems Cubic Transportation Systems Xaqt, Inc. Justification to Award An evaluation panel of representatives from various departments, including Finance, Planning and Community Development, Information Systems, and Human Resources reviewed and ranked all proposals using the criteria set out in the RFP. Based on criteria set out in SMMC 2.24, staff recommends Smarking as the best qualified firm to provide the parking data analytics and management services. As an industry leader in parking data analytics and business technologies, Smarking, Inc.’s deep understanding of parking dynamics and experience with working with over 45 various parking access and revenue control systems (including the City’s current parking technology systems) would allow the City the flexibility to seamlessly integrate with any parking systems vendor. Smarking, Inc. has provided parking data management and pricing policy analysis to other comparable parking operations with similar dynamic characteristics as the City, including the Miami Parking Authority; City of Long Beach; City of Walnut Creek; City of Aspen; City of Santa Cruz; and the City of Grand Rapids. In addition to a very detailed staff data management tool, the Smarking platform would also provide a publicly accessible parking map that would present information of historical and real- 5 of 6 time key parking metrics in an easy to understand visual format, based on a Google Maps layer commonly used on the City’s website, that is accessible via desktops, and mobile devices. The map would be used to help communicate parking dynamics and identify where parking is typically available throughout the City. Smarking would also supplement the data analytics platform with periodic consulting services including regular (at least once a year, if not more frequently) pricing policy and strategy analysis, predictive occupancy and financial modeling, impacts of more sustainable travel modes on parking demand, reporting and analytics support, and related parking rate change/utilization studies. The agreement also provides for the consultants’ participation in stakeholder outreach and City Council meeting presentations. Award of this agreement would permit staff to model several complicated proposed outcomes that support the City’s goals around mobility and land use before presenting choices to City Council. Past Council Actions Meeting Date Description 03/06/2018 (Attachment B) Parking Management Pricing Strategies Study Session 04/24/2018 (Attachment C) Adoption of a Resolution Revising Public Parking Rates Financial Impacts and Budget Actions Staff seeks authority to award a contract with Smarking, Inc. for parking data management and analytics services. Funds are available in the FY 2018-19 Planning and Community Development Department budget. Future year funding is contingent on Council budget approval. Request Amount FY 2018-19 Budget Department/CIP Account # Total Contract Amount $237,000 01700008.552010 $1,219,000 6 of 6 Prepared By: Michael Towler, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. Oaks Initiative Disclosure Form B. 2018 - Downtown Parking Management Pricing Strategies Study Session - Staff Report C. 2018 - Adoption of a Resolution Revising Public Parking Rates - Staff Report D. Written Comments 18 CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. 19 CITY OF SANTA MONICA OAKS INITI ATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benef its include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12- month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ Smarking  Inc Wen  Sang,  Maokai  Lin,  Kurt  Wedel,  Wayne  Fenton,  Cassius  Jones Wen  Sang  and  Maokai  Lin Cassius  Jones Head  of  Enterprise  Accounts 8/24/2018 650-­‐380-­‐5114cassius@smarking.net City Council Report City Council Meeting: March 6, 2018 Agenda Item: 4.A 1 of 23 To: Mayor and City Council From: David Martin, Director, Parking Operations (PCD) Subject: Downtown Parking Management Pricing Strategies Study Session Recommended Action Staff recommends that the City Council: 1. Direct staff to draft an ordinance modifying the Santa Monica Municipal Code (“SMMC”) Section 3.16 related to on-street parking management and Section 3.04 related to the establishment of off-street public parking fees; 2. Review and provide direction to staff on the proposed parking management strategies consistent with the policies in the Land Use and Circulation Element (“LUCE”) to further manage congestion, improve public parking services, address downtown residents’ parking desires, and encourage shifts toward more sustainable modes of transportation; 3. Direct staff to report annually on the State of Citywide Parking, including a financial and operational analysis as well as recommendations for future year parking rate adjustments. Executive Summary Parking policy and parking facilities have been integral to the evolution of Santa Monica, particularly our vibrant Downtown and three miles of beachfront. The City owns and/or operates 43 parking facilities with approximately 14,000 available public parking spaces. These parking facilities help support the diverse local economy by providing convenient access to housing, retail centers, hotels and restaurants, employment, a public beach and community parks, education and recreation centers, special events, and municipal services and social service agencies alike. Both policy and the market for parking are changing, however. There is increasing recognition of the high economic and environmental cost of subsidized parking, and growing recognition that in a region where there are seven parking spaces for every car that greater attention must be paid to the efficient utilization of parking. 2 of 23 Council adopted policies outlined in the Land Use and Circulation Element (“LUCE”) and Downtown Community Plan (“DCP”) suggest that parking pricing is one of the most effective strategies to reduce traffic congestion, encourage the shift towards alternative modes of transportation, and facilitate a more efficient use of existing parking supply. Based on a comprehensive analysis of the aggregated parking transaction and occupancy data, staff seeks Council direction on employing a demand-responsive parking pricing strategy in the Downtown core and peripheral parking facilities to proactively manage the various weekday and weekend demands, including traffic , congestion and circulation challenges. These policy shifts are part of the City’s larger focus on the Strategic Goal of creating a new model of mobility, one that Council reaffirmed during its wide-ranging February 27, 2018 study session, emphasizing the importance of aligning our policies and investments to support a more livable community. In addition, these concepts reflect changing mobility patterns as alternate travel modes including ride share companies, bike share, electric scooters, and the advent of autonomous vehicles reshape how people travel, with the apparent net impact of reducing and/or redistributing locational parking demand. Staff believes that creating a weekday versus weekend pricing structure throughout the Downtown and peripheral facilities would better align pricing with demand to ensure that there is at least 15% availability at all times in all facilities, and allow the City to maintain sufficient ongoing revenues to fund parking, traffic and circulation programs, and other essential public services. Staff recommends that Council review and provide comment on the proposed parking management strategy options, and direct staff to return to Council in the future with the necessary resolutions to adopt revised transient parking rates and permit fees. Additionally, staff recommends that Council direct staff to draft an ordinance for first reading modifying the SMMC Section 3.16.170 and Section 3.04.035 to streamline the process and modernize the municipal code to reflect the current practice of setting on- street and off-street parking rates based on the policies and goals outlined in the LUCE and DCP. 3 of 23 Over the previous five months, Staff conducted study sessions with various stakeholders throughout the City to ensure that the needs of the communities represented by the respective stakeholders were considered in the overall proposed parking management strategies. Feedback from each body is incorporated in the strategies outlined in the Discussion Section of the staff report. Background On May 11, 2010, Council adopted a resolution establishing new parking rates for off - street parking as a first phase in implementing the 2009 Walker Parking Study recommendations. The Walker Parking Study found that there was an imbalance in pricing between the different parking facilities within Downtown resulting in the unintended consequence of putting visitors, employees, and transient and monthly parkers in competition for the most convenient and often least expensive spaces while other spaces in the City remained unoccupied. Walker Parking consultants provided recommendations consistent with the LUCE to better manage parking demand and maximize efficiency of the public parking supply in Downtown Santa Monica. The Walker Parking Study recommended that the City:  Increase on-street and off-street public parking rates in the Downtown to more efficiently and effectively utilize existing public and private parking resources to meet parking needs, thereby creating greater availability of parking for visitors in the Downtown  Use increased parking revenues to enhance parking operations, parking technology, wayfinding, parking occupancy assessments, and capital repairs and replacements  Review parking occupancies regularly and adjust parking rates to encourage optimal use of public parking resources On July 10, 2012, Council adopted a resolution establishing new parking fees at citywide on-street parking meters, off -street parking facilities, and beach parking lots, including a reduction in the Downtown grace period from two hours to 90 minutes. These changes were informed by a parking rate study conducted by Walker Parking 4 of 23 Consultants in 2012, consistent with the LUCE and the 2009 Walker Parking Study with the continued goal of:  Managing parking demand to ensure availability in all locations and better use of underutilized parking resources  Identifying the relationship between the pricing of public parking, private parking, adjacent land uses and parking demand  Reviewing parking occupancies and adjust parking rates to encourage optimal use of public parking resources  Developing an objective, technical and transparent process by which to set public parking rates On May 10, 2016, Council adopted a resolution establishing revised parking rates for the Civic Center and Downtown parking facilities to address increased high weekday occupancies and discourage potential “park and ride” activity due to the arrival of the Expo Light Rail. Staff anticipated that the rate increase would result in an a dditional $4.2 million in ongoing revenues beginning in FY 2016-17 based on utilization rates at that time and some attrition in transient transactions because of the higher rates. Staff monitored parking occupancies over the course of the first year of Expo Light Rail service. Attachment A includes a detailed year over year analysis of transactions, utilization, parking duration and peak occupancies for each parking facility. Discussion Parking policy is ultimately driven by the City’s larger policy goals, including supporting the Mobility Strategic Goal and contributing to the City’s Framework of Economic Opportunity and fiscal sustainability. This report seeks direction for staff to undertake a transition in parking policy that involves a range of inte rrelated changes. Accordingly, this report breaks down the concepts via the following sections: 1. Analysis of Parking Occupancies, Transactions, and Durations 2. Proposed Downtown and Peripheral Parking Facility Pricing Strategies 3. Other Items for Council Consideration 5 of 23 4. Alternative Pricing Strategies for Future Consideration 5. Annual State of the Citywide Parking Report 6. Public Outreach and Communication with Boards and Commissions Section 1 – Analysis of Parking Occupancies, Transactions, and Durations (Sessions) In FY 2015-16, there were 7.6 million total (transient and permit) parking transactions in the Downtown core and peripheral facilities discussed in this staff report. In FY 2016-17, there were 7.1 million total parking transactions, resulting in a 0.5 million, or 7%, reduction when compared to the prior year. The data included in Attachment A shows that the parking rate increase in FY 2016-17, in conjunction with increased popularity of Transportation Network Companies (“TNC”) and the increased demand in Expo Light Rail ridership (Attachment B) had a direct impact on parking behavior in the City, particularly successful in achieving the following goals:  Reducing total parking sessions in these Downtown core facilities  Discouraging park and ride activity in the Downtown core facilities  Reducing high weekday peak occupancies in most of the Downtown parking facilities  Freeing up parking for short-term parking for residents and Downtown visitors  Encouraging parkers to utilize less expensive parking facilities on the periphery of the Downtown core, or consider shifting to alternative modes of transportation The reduction in total parking transactions continued into the first half of FY 2017-18. In light of this, on February 13, 2018, staff included a $3.9 million, or 7%, reduction in projected General Fund parking revenues as part of the Midyear Financial Status Update to Council. The midyear budget adjustment corrects the previous ongoing revenue projection related to the FY 2016-17 parking rate increase and accounts for the current shift in how staff believes people travel into the Downtown, including the following:  Expo Light Rail ridership realized a significant increase when it began six-minute headway service in March 2017. The City’s Traffic Management Division also 6 of 23 implemented a signal priority protocol for Expo trains around this time, giving the rail “the green light” versus surrounding traffic. Expo now has a significant time and frequency advantage it did not have prior to March 2017. Additional information related to Expo Light Rail Ridership Statist ics are included in Attachment B.  The Police Department worked out “geo-fenced” customer pick up solutions with Lyft and with Uber. As such, these TNC operators have streamlined their operations making them even more attractive for use in our downtown, and along Main Street. The significance is that TNC customers are able to get greater access to downtown and Main Street venues than ever before. This provides a competitive time and money advantage over the pricing and location of our parking structures and lots.  The nature of downtown shopping is changing significantly. As mentioned in the Midyear Financial Status Update, many customers are switching from visiting brick and mortar stores and making bulk purchases to on-line shopping. While there were also slight decreases in the average peak occupancy for weekdays and weekends in some of the Downtown and peripheral facilities during the first half of FY 2017-18, other parking facilities either maintained existing peak occupancies or realized increases primarily due to their proximity and accessibility to the Downtown. Section 2 – Proposed Downtown and Peripheral Parking Facility Pricing Strategies The LUCE and the DCP include specific language about how to better manage the parking resource and achieve greater mode shift to other more sustainable transportation options. The LUCE suggests managing parking in Santa Monica as a limited resource, ensuring that adequate parking is available for residents, employees, and visitors by establishing an availability target of at least 15% of spaces in every lot and garage at all times. It also suggests that the City should adjust parking prices and the hours of enforcement to meet this target, varying by time of day, season, and location. Moreover, the LUCE recognizes that parking provides a substantial positive 7 of 23 revenue stream to the City that should continue well into the future. The DCP echoes many of the core parking management principles of the LUCE, including maximizing the use of the Citywide parking inventory of available spaces and actively reviewing parking data to address occupancy, traffic, access and circulation challenges. The DCP goes a step further and recommends an integration of public and private spaces into a shared network with real-time information to further inform policy decisions. Setting sensible parking pricing is one of the most effective strategies to manage demand, ensure parking availability at all times, maximize the use of underutilized facilities, reduce traffic congestion, and encourage the use of more sustainable modes of transportation. Staff included three strategy options for Council consideration, r eview, and discussion. Based on the Council adopted policies mentioned above, staff seeks Council direction on the concept of implementing a demand-responsive parking pricing strategy that sets different rate structures on weekdays and weekends based on th eir different demand patterns. The proposed pricing adjustments included in this staff report would continue the multipronged strategy of:  Balancing the needs of the community, including residents, businesses, employees, and visitors alike, with a focus on establishing a new rate structure that welcomes and favors residents as our priority users into the Downtown area,  Facilitating desired turnover and incentivizing longer term parking sessions outside of the Downtown core,  Encouraging the mode shift towards sustainable transportation options, and  Maintaining sufficient revenues to reinvest in traffic, parking, and other essential public services programs. To achieve the aforementioned objectives, staff asks that Council consider and provide feedback on the following range of choices included in Options A, B, and C: 1. Extend the pilot Downtown employee discount validation parking program for one additional year, through June 30, 2019 8 of 23 2. Use shorter pricing periods, ensuring minimal impact on short-term parking sessions and progressively increasing the incremental parking rates for successive time periods. This is designed to encourage long-term parking sessions in the less expensive parking facilities outside of the Downtown core, or to encourage consideration of mode shift 3. Set monthly parking permit fees to 11 times the transient weekday daily maximum rate, limiting monthly permit parking holders’ access to one or two facilities 4. Reduce the free “grace period” in the Downtown core facilities, Parking Structures 1-8 and Ken Edwards Center, from 90 minutes to 60 minutes 5. Reduce the free “grace period” in Parking Structure 9, a non-Downtown core facility located north of Wilshire Blvd., from 90 minutes to 30 minutes Option A Downtown Core Parking Structures 1 and 3 – Current and Proposed Facility Current Proposed Current Proposed PS 1 17.50$ 25.00$ 17.50$ 30.00$ PS 3 17.50$ 25.00$ 17.50$ 30.00$ Weekday Daily Max. Weekend Daily Max. The proposed incremental parking rate tables and graphs are included in Attachment C. Parking Structures 1 and 3 are both located on 4 th Street between Wilshire Blvd. and Santa Monica Blvd. with a combined inventory of 674 total parking spaces. Below is a table outlining the average peak occupancies for Parking Structures 1 and 3 for weekdays and weekends: Facility FY 15/16 Weekday FY 16/17 Weekday FY 17/18 Weekday FY 15/16 Weekend FY 16/17 Weekend FY 17/18 Weekend PS 1 91% 85% 82% 99% 96% 88% PS 3 100% 99% 95% 100% 100% 95% 9 of 23 Both facilities regularly reach weekday and weekend peak occupancies between 11 a.m. and noon, maintain peak occupancies through 8 p.m., and do not begin to significantly taper off until after 9 p.m. Staff believes that the excessively high weekday and weekend peak occupancies are due to the limited capacities and proximity of these two facilities to the Third Street Promenade and surrounding businesses. Additionally, these are the first two parking facilities introduced to travelers along the Wilshire corridor when headed south on 4th street. Historical City pricing strategies suggest these facilities be priced similarly to the other facilities within the Downtown core to avoid customer confusion an d reduce circulation and congestion problems related to simply shifting travel from one location to another. However, based on the data and price sensitivity, staff seeks Council direction on setting parking rates for these facilities slightly higher than the rest of the parking portfolio to respond to the specific demand in these facilities with a goal of ensuring at least 15% availability at all times. Staff anticipates that this pricing strategy will shift parkers to other less expensive facilities within the Downtown core or periphery, thereby facilitating a more efficient use of the overall Downtown parking availability. Downtown Core Parking Structures 2, and 4 through 8 – Current and Proposed Facility Current Proposed Current Proposed PS 2 17.50$ 20.00$ 17.50$ 25.00$ PS 4 17.50$ 20.00$ 17.50$ 25.00$ PS 5 17.50$ 20.00$ 17.50$ 25.00$ PS 6 17.50$ 20.00$ 17.50$ 25.00$ PS 7 17.50$ 20.00$ 17.50$ 25.00$ PS 8 17.50$ 20.00$ 17.50$ 25.00$ Weekday Daily Max. Weekend Daily Max. The proposed incremental parking rate tables and graph s are included in Attachment C. Parking Structures 2, and 4 through 8 are located within the Downtown core between Wilshire to the north, Colorado to the south, 4th Street to the east, and 2nd Street to the 10 of 23 west. Below is a table outlining the average peak occupancies for the aforementioned facilities: Location FY 15/16 Weekday FY 16/17 Weekday FY 17/18 Weekday FY 15/16 Weekend FY 16/17 Weekend FY 17/18 Weekend PS 2 73% 62% 58% 69% 56% 48% PS 4 83% 76% 71% 81% 73% 71% PS 5 70% 61% 62% 70% 70% 67% PS 6 79% 70% 76% 84% 77% 77% PS 7 70% 68% 62% 84% 82% 75% PS 8 50% 55% 56% 76% 77% 80% Most of these Downtown parking facilities regularly reached weekday peak occupancies around noon and maintained peak occupancy through 8 p.m. before sharply tapering off after 8 p.m. On the weekends, most of these facilities regularly reached peak occupancies by noon and maintain peak occupancy to as late as 9 p.m. before sharply tapering off in the late night. Staff believes that setting the parking rates for th ese facilities slightly lower than the proposed rates for Parking Structures 1 and 3 will:  Account for anticipated increase in parkers shifting from parking in Parking Structures 1 and 3 due to the rate differential  Improve traffic circulation within the Downtown core  Take a proactive approach in better managing congestion while ensuring 15% availability within all of the Downtown core facilities at all times 11 of 23 Ken Edwards Center Parking Structure – Current and Proposed Facility Current Proposed Current Proposed KEC 17.50$ 20.00$ 17.50$ 10.00$ Weekday Daily Max. Weekend Daily Max. The proposed incremental parking rate tables and graphs are included in Attachment C. The Ken Edwards Center Public Parking Structure is located on 4th Street between Broadway and Colorado Avenue with 98 available parking spaces. These parking spaces are available to all on a first come first served basis. Below is a table outlining the average peak occupancies for this facility: Location FY 15/16 Weekday FY 16/17 Weekday FY 17/18 Weekday FY 15/16 Weekend FY 16/17 Weekend FY 17/18 Weekend KEC 79% 78% 76% 15% 15% 17% The Ken Edwards Center Parking Facility regularly reached weekday peak occupancy around 11 a.m., slowly tapering off through 3 p.m., and then experienced a sharp decline after 4 p.m. Staff believes that this is due to the various programs offered at the Ken Edwards Community Center during the week. Parking in this facility is subsidized by the General Fund through free parking validations provided to Ken Edwards Community Center program users. On the weekends, the facility is significantly underutilized, reaching peak occupancy around 17% at noon, and gradually emptying throughout the afternoon. Staff believes that the low weekend usage is due to limited weekend programs offered at the Ken Edwards Community Center as well as a lack of permanent signage indicating this is a public parking facility. Staff recently installed temporary signage on the weekends to direct traffic into the facility to temporarily address this issue. As a result, there has been a slight uptick in transactions and occupancy in this facility. 12 of 23 Based on the occupancy and transaction data, staff recommends increasing the weekday daily maximum rate from $17.50 to $20.00, and reducing the weekend daily maximum rate from $17.50 to $10.00. Staff believes that the proposed rate structure aligns with the demand for this facility, ensuring that there will not be any weekday parking spillover from other Downtown core parking facilities due to price differential. Staff anticipates that the proposed weekday rate would ensure 15% availability at all times for Ken Edwards Center program users. The proposed reduction in the weekend rate is to maximize the use of this underutilized facility on the weekend. Downtown Peripheral Parking Structures 9 and 10 – Current and Proposed Facility Current Proposed Current Proposed PS 9 17.50$ 17.00$ 17.50$ 20.00$ PS 10 17.50$ 17.00$ 17.50$ 20.00$ Weekday Daily Max. Weekend Daily Max. The proposed incremental parking rate tables and graphs are included in Attachment C. Parking Structure 9 is located outside of the Downtown core on 4th Street just north of Wilshire Blvd. and shares an alley on Third Court with Parking Structure 10, for a combined inventory of 381 total spaces between the two facilities. Below is a table outlining the average peak occupancies for these two facilities: Location FY 15/16 Weekday FY 16/17 Weekday FY 17/18 Weekday FY 15/16 Weekend FY 16/17 Weekend FY 17/18 Weekend PS 9 81% 64% 69% 66% 60% 56% PS 10 55% 48% 44% 80% 70% 62% Staff believes that pricing these two facilities similarly will help balance the demand between them and reduce on-street traffic in the Downtown core as part of the overall peripheral parking pricing strategy. Staff anticipates that the proposed rate structure will ensure at least 15% availability as these are the two most northern parking facilities in 13 of 23 the entire portfolio and are likely to attract new parkers shifting from Parking Structures 1 and 3, and parkers shifting from the Downtown core due to the rate differential and easier accessibility from Wilshire Blvd. Downtown Peripheral Parking - Civic Center Lot and Structure – Current and Proposed Facility Current Proposed Current Proposed Civic Lot 14.00$ 14.00$ 5.00$ 5.00$ Civic Structure 14.00$ 14.00$ 5.00$ 5.00$ The proposed incremental parking rate tables and graphs are included in Attachment C. Below is a table outlining the average peak occupancies for the two facilities: Location FY 15/16 Weekday FY 16/17 Weekday FY 17/18 Weekday FY 15/16 Weekend FY 16/17 Weekend FY 17/18 Weekend Civic Lot 70% 50% 43% 43% 34% 28% Civic Structure 84% 60% 54% 60% 43% 37% The proposed changes reflect adjustments to the weekday and weekend incremental rate at the Civic Center parking facilities without adjusting the grace period, and without adjusting the weekday or weekend daily maximum rate. The proposed incremental rate adjustments are simply correcting the imbalance in the Downtown core incremental parking rates versus non-Downtown core facilities. It currently costs more to park in the weekday at the Civic Center for three hours ($5.50) than it does in the Downtown core facilities ($3.10). The proposed changes keeps long-term parking sessions in these facilities less expensive than the Downtown core, thus continuing to support the holistic parking strategy that ensures maximum use of all parking facilities in the citywide parking portfolio. Staff will return to Council with the results of the recently begun Walker Parking Consultants Civic Center parking impact study and a broader Civic Center parking policy discussion in the future. 14 of 23 Downtown Periphery Parking - Main Library Structure – Current and Proposed Facility Current Proposed Current Proposed Main Library 10.00$ 14.00$ 5.00$ 5.00$ Weekday Daily Max. Weekend Daily Max. The proposed incremental parking rate tables and graphs are included in Attachment C. The Main Library Parking Structure is located on Santa Monica Blvd. between 6th Street and 7th Street with 529 available parking spaces. Below is a table outlining the average peak occupancies for the Main Library Parking Structure: Location FY 15/16 Weekday FY 16/17 Weekday FY 17/18 Weekday FY 15/16 Weekend FY 16/17 Weekend FY 17/18 Weekend Main Library PS 77% 83% 71% 52% 51% 45% The Main Library Parking Structure regularly reached peak occupancy around 11 a.m., maintained peak occupancy through 6 p.m. before sharply tapering off in the evening. The high weekday peak occupancy can be attributed to long-term weekday parkers taking advantage of the cheaper all day parking rate ($10 .00), when compared to the Downtown all day parking rate ($17.50) and Civic Center all day parking rate ($14.00). Staff anticipates parkers will shift from the Downtown core to the Library due to the price differential; therefore, the proposed rate structure would allow the Main Library Parking Structure to service these parkers and ensure 15% availability at all times. 15 of 23 Monthly Parking Permits for Downtown and Peripheral Parking Facilities Parking Facility Current Monthly Rate Proposed Monthly Rate Difference ($) Difference (%) Parking Structures 1 and 3 $176.00 $275.00 $99.00 56% Parking Structures 2, 4 through 8 $176.00 $220.00 $44.00 25% Ken Edwards Center $176.00 $220.00 $44.00 25% Parking Structure 9 $176.00 $187.00 $11.00 6% Parking Structure 10 $132.00 $187.00 $55.00 42% Civic Center Parking Lot and Structure 1 $160.00 $160.00 $0.00 0% Main Library $82.50 $154.00 $71.50 87% Affordable Housing 2 $65.00 $65.00 $0.00 0% Currently, the “anytime access” Downtown monthly parking permits for Parking Structures 1-9 and Ken Edwards Center are $176 per month, which is equivalent to about 10 times the weekday daily maximum transient parking rate of $17.50. As most full-time employees work an average of 22 days per month, this effectively represents 12 days of discounted or subsidized parking for monthly permit holders. Staff recommends increasing the monthly parking permit rate to 11 times the weekday daily maximum rate of the respective facilities, in an effort to balance the demand of regular long-term Downtown employees with the need to ensure parking availability for transient, Santa Monica residents, and visitors who frequent Downtown. The proposed monthly permit rates would also create a rate structure that is in alignment with LUCE, DCP goals, and Council policy. This action allows complete transparency of the hidden subsidy provided with monthly parking. Setting the monthly parking permit rates to 11 times the weekday daily maximum rate effectively represents a 50% discount or subsidy for monthly parking permit holders. As stated in the LUCE, “unrealized revenues related 1 Staff does not recommend any changes to the monthly parking permit in the Civic Center Parking Lot and Structure at this time due to the recently begun parking impact study being conducted by Walker Parking Consultants. 2 Staff does not recommend any changes to the Affordable Housing monthly parking permits at th is time. 16 of 23 to subsidized parking is money that could otherwise be used for capital repairs and operating cost of providing parking and incentives for alternative modes of transportation.” Staff recommends a gradual and well broadcasted phasing in of the monthly parking permit increases over the course of next fiscal year for Parking Structures 1 and 3, Parking Structure 10, and the Main Library Parking Structure. This would allow staff time to conduct outreach to the impacted customers and provide alternative parking options, if necessary, in other facilities based on a review of transactions and durations in the other facilities. Option B Option B reflects a more moderate increase to the parking rates in the parking facilities, as outlined below: Facility Current Proposed Current Proposed PS 1 17.50$ 20.00$ 17.50$ 25.00$ PS 3 17.50$ 20.00$ 17.50$ 25.00$ Weekday Daily Max. Weekend Daily Max. Facility Current Proposed Current Proposed PS 2 17.50$ 17.00$ 17.50$ 20.00$ PS 4 17.50$ 17.00$ 17.50$ 20.00$ PS 5 17.50$ 17.00$ 17.50$ 20.00$ PS 6 17.50$ 17.00$ 17.50$ 20.00$ PS 7 17.50$ 17.00$ 17.50$ 20.00$ PS 8 17.50$ 17.00$ 17.50$ 20.00$ Weekday Daily Max. Weekend Daily Max. Facility Current Proposed Current Proposed KEC 17.50$ 17.00$ 17.50$ 10.00$ Weekday Daily Max. Weekend Daily Max. 17 of 23 Facility Current Proposed Current Proposed PS 9 17.50$ 17.00$ 17.50$ 17.00$ PS 10 17.50$ 17.00$ 17.50$ 17.00$ Facility Current Proposed Current Proposed Civic Lot 14.00$ 14.00$ 5.00$ 5.00$ Civic Structure 14.00$ 14.00$ 5.00$ 5.00$ Weekday Daily Max. Weekend Daily Max. Facility Current Proposed Current Proposed Main Library 10.00$ 12.00$ 5.00$ 5.00$ Weekday Daily Max. Weekend Daily Max. Parking Facility Current Monthly Rate Proposed Monthly Rate Difference ($) Difference (%) Parking Structures 1 and 3 $176.00 $220.00 $44.00 25% Parking Structures 2, 4 through 8 $176.00 $187.00 $11.00 6% Ken Edwards Center $176.00 $187.00 $11.00 6% Parking Structure 9 $176.00 $187.00 $11.00 6% Parking Structure 10 $132.00 $187.00 $55.00 42% Civic Center Parking Lot and Structure $160.00 $160.00 $0.00 0% Main Library $82.50 $132.00 $49.50 60% Affordable Housing $65.00 $65.00 $0.00 0% The detailed rate tables and graphs are included in Attachment D. Option C Council could consider implementing some of the proposed rate changes in Option A or Option B in phases, including adopting some of the proposed rate changes without any adjustments to the grace periods at this time. Depending on the guidance provided by 18 of 23 Council at this study session, staff will return to Council with any necessary ordinance and/or resolutions in the future. Rate Survey of Privately-owned Parking Facilities in the City of Santa Monica Staff conducted a survey of parking rates for privately owned parking facilities within the City of Santa Monica, as these facilities directly affect parking demand and traffic circulation in the City. Attachment E includes a rate graph of six privately owned parking facilities and their respective weekday parking rates. Most of these private parking facilities reach a weekday daily maximum parking rate between $20.00 and $22.50 at three hours of parking, and none of them provides free grace periods without validation to their customers. These same private parking facilities have a flat weekend rate ranging from $6 to 12 upon entry. Staff believes that the proposed parking rate adjustments to the City facilities included in this staff report take into account the market conditions, are aligned with Council adopted policies and parking management strategies, and are appropriately priced to ensure that there is not an unintended consequence of parking spillover to City facilities due to pricing imbalances between public and private parking facilities. Section 3 – Other Items for Council Consideration 3A – Ordinance Section 3.16.170 of the SMMC governs the process in which on -street parking meter rates can be adjusted, including specific target occupancy rates, the amount and frequency of rate changes, the amount in which and the minimum and maximum range in which on-street meter rates can be adjusted. This policy and process is outdated and does not align with other provisions in the municipal code, particularly Section 3.04.035 that allows off-street parking rates to be established and changed from time to time via resolution. Staff recommends streamlining the process and modernizing the municipal code to reflect the current practice of setting on-street and off-street parking rates based on policies and goals outlined in the LUCE and DCP. As part of a holistic parking management strategy, on-street parking rates should be set in tandem with off-street parking rates to facilitate the turnover of on-street parking spaces more frequently and 19 of 23 making them available for short-term use, directing traffic off the streets into the parking facilities, and ensuring at least 15% availability at all times. 3B – Adjust Free Disabled Placard Parking Policy in Off-Street Parking Facilities Council adopted a policy via resolution to provide free parking for vehicles displaying ADA placards for the following on-street parking meters and off-street City parking facilities:  On-street parking meters (in conformance with State law)  Preferential parking zones 1-5 (in conformance with State law)  Main Library Parking Structure  Main Library Parking Surface Lot  Civic Center Parking Structure and Parking Lot (except during capacity events)  Beach Parking Lots (South, Central, and North)  Pier Deck Parking Lot  Parking Structure 10  Main Street Parking Lots (Lots 9, 10, 11, and 26)  Mid-City Parking Lots (Lots 7, 8, and 12)  Downtown Parking Lots (Lots 27, 28, 29, and 30) Staff recommends adjusting this policy to eliminate free ADA parking for the Main Library Parking Structure and Parking Structure 10 as these facilities have higher average peak occupancies than some of the other parking facilities in the overall City parking portfolio. Additionally, Parking Structure 10 has a total of 81 parking spaces, two of which are reserved for ADA parking. By charging for ADA parking in these specific facilities, ADA parking spaces will become more available to residents and visitors by discouraging long-term transient parking and “storage parking” in these spaces. This proposed adjustment was discussed with stakeholder representatives of the Commission for the Senior Community and the Disabilities Commission. 3C – Adjust Rate for Annual Senior Beach Parking Permit 20 of 23 The annual Senior Beach parking permit allows California residents, ages 62 and over, to park at all Beach parking lots (excluding Pier Deck) during posted time limits of sunrise to sunset. The annual permit fee is $2.20 and is valid from April 1 to March 31. There are currently 3,000 permits made available to eligible California residents, with 42% of which are purchased by Santa Monica residents while the remaining 58% purchased by non-Santa Monica residents. Below are the current rates for an annual Senior Beach parking permit in the following neighboring beach cities:  Los Angeles County Beaches and Harbor Senior Parking Permit - $25  Orange County Beach Parking Pass for Seniors and Disabled - $35  Long Beach Day Parking Pass for Seniors - $75  Huntington Beach Senior Parking Pass - $75 Staff recommends adjusting the rates to $25 to align with Los Angeles County Beaches and Harbor rates (lowest rate amongst the neighboring beach cities). This proposed pricing change was discussed with stakeholder representatives of the Commission for the Senior Community and the Disabilities Commission. Section 4 – Alternative Pricing Strategies for Future Consideration By way of background, below are some of the commonly used demand-responsive parking pricing strategies employed by various agencies to ensure availability at all times in their facilities: Congestion Pricing – is a demand-side solution of setting prices to reduce parking, traffic and congestion during high peak occupancy or rush hours. This pricing method is supposed to encourage users who can be flexible in their usage times to shift their use away from peak periods to times when it is less expensive. Below are some of the congestion pricing options:  Time of Day Pricing (“Time Bands”) – set parking rates based on peak parking demand patterns (i.e. cheaper parking during low-demand morning hours, 21 of 23 increased parking rates during high-demand afternoon hours, and reduce parking rates for low-demand evening hours)  Day of Week Pricing – sets parking rates based on the different demand patterns during weekday and weekends  Progressive (“Length of Stay”) Parking Pricing – sets parking rates to facilitate a desired rate of turnover, maintain rates for desired short-term parking at a lower rate and then escalate rates with time Dynamic Pricing – is another demand-side solution that sets pricing based on real-time changes in the market. This pricing strategy would allow the City to increase rates when demand is high and lower rates when demand is lower based on real-time occupancies in each of the facilities. This would require a significant investment in new parking technologies and systems and each of the various parking and traffic systems would need to interface with each other in real-time to supply the necessary data to facilitate this pricing strategy. This strategy is not proposed for Santa Monica parking facilities at this time. Section 5 – Annual State of the Citywide Parking Report Staff recommends that Council direct staff to report annually on the State of Citywide parking. This report would including the following:  Analysis of parking revenues, including utilization and availability data by location, day of week, and parking type  Analysis of parking operating and capital expenditures, including progress reports on capital improvement projects  Operational assessment and services update  Parking asset management update including planned equipment replacement  Emerging parking trends and technologies  Key accomplishments  Various challenges of Citywide parking operations and proposed opportunities for improvement 22 of 23  Future year parking rate recommendations based on data analytics and Council adopted parking policies  Progress towards meeting Council strategic goals Section 6 – Public Outreach and Communication with Boards and Commissions Staff conducted study sessions with the following Boards and Commissions to ensure that the needs of the communities represented by the respective commissions were considered with the proposals included in this staff report:  Commission for the Senior Community – October 2017  Santa Monica Library Board – October 2017  Chamber of Commerce – November 2017  Disabilities Commission – November 2017  Downtown Santa Monica, Inc. – November 2017  Santa Monica Travel and Tourism – January 2018 Official feedback from each body was thoroughly considered and incorporated herein. Attachment F includes formal responses from the respective bodies. Staff will return to the Boards and Commissions with additional study sessions to further discuss these topics and inform these stakeholders of broader parking management strategies. Recommended Next Steps Staff recommends the adoption of specific rate changes consistent with Option A to address Council concerns of traffic congestion, Downtown circulation, parking availability, and reductions in free parking. However, based on comments, feedback, and discussion at this study session, staff will return to Council at the March 27, 2018 Council meeting with specific rate proposals and enabling ordinances and resolutions. 23 of 23 Prepared By: Michael Towler, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. Parking Analytics B. Expo Light Rail Info, Tables and Graphs C. Option A Pricing D. Option B Pricing E. Private Parking Facility Rate Comparison F. Boards and Commissions Letters G. Written Comments H. Powerpoint Presentation City Council Report City Council Meeting: April 24, 2018 Agenda Item: 7.A 1 of 7 To: Mayor and City Council From: David Martin, Director, Parking Operations (PCD) Subject: Introduction and First Reading of an Ordinance Modifying Sections of the Santa Monica Municipal Code Related to the Management of Parking and Adoption of a Resolution Revising Public Parking Rates Recommended Action Staff recommends that the City Council: 1. Introduce for first reading an ordinance (Attachment A) modifying the Santa Monica Municipal Code (SMMC) Section 3.16 related to on-street parking management and 3.04 related to off-street parking management; and 2. Adopt the attached resolution (Attachment B) establishing new transient parking rates and permit parking fees for various City parking facilities. Executive Summary This report presents information and requests actions necessary to adopt the revised Downtown transient parking rates and permit fees following the public hearing held last month. On March 6, 2018, staff proposed various demand-responsive parking pricing strategies options for Council consideration to further manage congestion, improve public parking services, address Santa Monica residents’ parking desires, and encourage shifts towards more sustainable modes of transportation. Council heard from the public and various stakeholders within the City, and directed staff to return to Council with modifications to the recommended pricing strategy that, in the short term, take into account input from Council and the community, and in the long-term, strategically address the reduction of subsidized parking by providing increased investments in diverse mobility options. Background 2 of 7 On May 11, 2010, Council adopted a resolution (Attachment C) establishing new parking rates for off-street parking as a first phase in implementing the 2009 Walker Parking Study recommendations. The Walker Parking Study found that there was an imbalance in pricing between the different parking facilities within Downtown resulting in the unintended consequence of putting visitors, employees, and transient and monthly parkers in competition for the most convenient and often least expensive spaces while other spaces in the City remained largely unoccupied. Walker Parking consultants provided recommendations consistent with the LUCE to better manage parking demand and maximize efficiency of the public parking supply in Downtown Santa Monica. On July 10, 2012, Council adopted a resolution (Attachment D) establishing new parking fees at citywide on-street parking meters, off-street parking facilities, and beach parking lots, including a reduction in the Downtown free parking “grace” period from two hours to 90 minutes. These changes were informed by a parking rate study conducted by Walker Parking Consultants in 2012, consistent with the LUCE and the 2009 Walker Parking Study. On May 10, 2016, Council adopted a resolution (Attachment E) establishing revised parking rates for the Civic Center and Downtown parking facilities to address increased high weekday occupancies and discourage potential “park and ride” activity due to the arrival of the Expo Light Rail. Discussion On March 6, 2018, staff conducted a study session (Attachment F) with City Council that included various demand-responsive parking pricing strategy options for Council consideration. Staff sought Council direction on the concept of implementing a demand - responsive parking pricing strategy that sets different parking rate structures on weekdays and weekends based on their different demand patterns. The proposed parking strategies were based on a detailed analysis of parking transactions and occupancies in each Downtown parking facility, and were designed to:  Facilitate at least 15% parking availability in all facilities at all times 3 of 7  Redirect long-term parking sessions to less expensive parking facilities outside of the Downtown core  Maximize the use of existing public parking inventory  Address occupancy, traffic, access and circulation challenges  Encourage consideration of travel mode shift  Reduce subsidized parking for monthly permit holders Prior to developing the parking pricing strategies for Council consideration, s taff conducted study sessions with various stakeholde rs throughout the City to ensure that the needs of the communities represented by the respective stakeholders were considered and included in the overall proposal to Council. During this thorough six month outreach process, staff received verbal and written comments from residents and stakeholders in the City that supported staff’s overall proposal to address traffic congestion and excessively high parking facility peak occupancies. However, the feedback on how to address these challenges varied amongst stakeholders. For example, there was unequivocal support from Santa Monica Travel and Tourism, which promotes the City of Santa Monica as a travel destination as well as local employment opportunities in the City, on all of the staff proposed pricing strategies (Attachment G). There were other stakeholders in the City who also supported the overall goals, but recommended addressing the current challenges with varied pricing alternatives, primarily being the preservation of the free parking for the first 90 minutes in the Downtown core parking facilities. Attachment H includes formal written comments from these stakeholders, community members and residents. In light of the comprehensive discussion and feedback, Council directed staff to return to Council promptly with the necessary ordinance and resolution to adopt the proposed parking rate increases with the following modifications: Immediate Parking Pricing Strategies  Maintain first 90 minutes free parking period in PS 1 -9 and KEC 4 of 7  Increase parking rates; however maintain a uniform parking rate structure across Downtown core facilities, PS 1-8 and KEC, to avoid customer confusion  Eliminate monthly parking in PS 1 and PS 3, providing alternative parking options, if necessary, in PS 9 and PS 10 based on availability  Draft an ordinance that streamlines the process and modernizes the municipal code to reflect the current practice of setting on-street and off-street parking rates based on goals outlined in the LUCE and DCP  Continue subsidizing parking for Ken Edwards Center and Santa Monica Emeritus College program users  Develop new subsidized parking options for Main Library program users  Continue to invest incremental parking revenues over the FY 2009-10 base year into parking traffic, access, and circulation programs, including transit subsidy options Staff recommends that Council adopt the attached resolution that includes the immediate parking pricing strategies as submitted for implementation by July 1, 2018. This proposal addresses the immediate implementation of the necessary ordinance and resolution to establish rates in a timely manner. 5 of 7 Long-term Parking Management Strategies Staff will work with city stakeholders and other City Departments to develop a long-term comprehensive strategy that is aligned with the City’s larger focus on supporting a more livable community, and return to Council on or before June 30, 2019 with specific long term strategy proposals for Council approval and adoption. Among the steps staff will take going forward are the following:  Partner with City Departments, stakeholders, and TNC businesses to create mobility options that support the use of more sustainable travel modes  Evaluate the effectiveness of a SM Resident Downtown Access Parking Program and a Downtown Merchant Validation Program  Work with stakeholders to analyze the feasibility of pursuing a universal valet parking program  Return to Council with a comprehensive strategy that addresses the reduction of free or subsidized parking with investments in tangible mobility options  Return to Council annually to report on the State of Citywide Parking Judicial Council Parking The fee resolution also extends the bulk parking fee for the California Judicial Council for twelve months from July 2018 to June 2019 in anticipation of the multipurpose sports field, with a possible request for a six month extension if construction demands allow. The Council has made progress in promoting alternative options for its employees, customers, and jurors; however, the Council requires additional time to address budget impacts and to develop programs to address its minimum parking needs, particularly for members of the public who utilize the court’s services. Financial Impacts and Budget Actions 6 of 7 Due to the ever-changing conditions surrounding current and emerging transportation options and parking alternatives, revenue projections in establishing budgets are as much an art as a science, and predictive models developed by staff to gauge parking revenues fall into this category. The model used to develop the proposed pricing strategy is based on the concept of demand elasticity and recognizes that both occupancy and elasticity changes throughout the day, including research that suggests that elasticities tend to be higher when there are more alternative transportation options. The proposed parking rate and permit fee adjustments account for parkers shifting amongst the Citywide parking facilities, and takes a proactive approach to managing demand across the remaining parking facilities, slightly increasing the Downtown core parking rates to encourage parkers to shift to less expensive facilities without oversaturating any given facility due to significant rate differential between structures. Lessons learned from the FY 2016-17 parking rate change suggest that not making the secondary rate increase to other peripheral parking facilities within the Downtown portfolio would result in potential overcrowding in those facilities. Staff believes that the following range between $3 million and $5 million of increased revenues is sound, prudent, and based on an elasticity model that has included several years of data from Santa Monica parking facilities as well as benchmarking against industry standards of practice and in comparison with other parking operation s with similar characteristics. While no model will exactly predict total revenues, staff is confident that it has established a fairly strong case for these predicted increases, if the recommendation is approved as submitted for implementation by July 1, 2018. The anticipated revenues would primarily recover the revenues lost over the last 1-2 years due downward trend of parking transactions related to the changing mobility patterns. Staff will include the revenue projections as part of the FY 2018 -19 Exception Based Budget, and will continue to actively monitor parking activity in the various facilities and adjust revenue estimates, if necessary, during the FY 2018 -19 midyear budget. 7 of 7 Prepared By: Michael Towler, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. Ordinance B. Resolution C. 05-11-10 staff report D. 07-10-12 staff report E. 05-10-16 staff report F. 03-06-18 staff report G. SMTT Board Letter H. Other Boards and Commissions I. Written Comments J. Powerpoint presentation 1 Thania Montoya From:The SEO Doctors <theseodoctors@gmail.com> Sent:Monday, February 11, 2019 8:35 PM To:Clerk Mailbox Subject:Council 2/12/19 - Item 3J Follow Up Flag:Follow up Flag Status:Flagged Smarking payment for parking data services. Lol, the name. Yes. Korie Schmidt (310)600-2278 TheSEODoctors@gmail.com Item 3-J 02/12/2019 1 of 1 Item 3-J 02/12/2019 REFERENCE: Agreement No. 10806 (CCS)