HomeMy WebLinkAbout11/7/2023 Item 6a, McDonald (RFP Clarification) - Staff CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 7, 2023
TO: Mayor and Council
FROM: Whitney McDonald, Assistant City Manager
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6A - PARKING PROGRAM UPDATE AND AUTHORIZE
ADVERTISEMENT OF A REQUEST FOR PROPOSALS FOR A PARKING
RATE STUDY
The purpose of the memorandum is to address a Councilmember comment to clarify the
language in the Draft Rate Study RFP (Attachment A to the staff report). The Draft RFP
references a goal of “revenue optimization.” To clarify, the City intends the rate study to
identify opportunities to ensure a financially self-supporting program. As an enterprise
fund, the Parking Fund needs to set fees and rates at levels that fully cover the total direct
and indirect costs - including operations, capital outlay, and debt service. However, unlike
private sector activities, there is no intent to realize profits on its services.
The Parking Fund was formally established in 1975 and, since that time, it has been
accounted for as an enterprise fund. Under generally accepted accounting principles
(GAAP), different types of governmental activities are accounted for differently depending
on their purpose. Enterprise funds are used to account for services that are similar to
private sector activities where the intent is to finance or recover the cost of providing
services primarily through user charges. The Parking Fund operations are accounted for
within a separate set of self-balancing accounts that comprise its assets, liabilities, fund
equity, revenues, and expenses.
The City has two policies guiding the Parking Fund revenue structure:
City General Plan Policy Chapter 2 Section 13.1.2. City Parking Programs: City
parking programs shall be financially self‐supporting.
City Fiscal Policy 3a: Enterprise Fund Rates: The City will set fees and rates at levels
that fully cover the total direct and indirect costs—including operations, capital outlay, and
debt service.
Item 6a - Parking Program Update and Request for Proposals for a Parking Rate Study Page 2
In order to enhance clarity regarding the consistency of the RFP language with City Policy,
staff propose the following changes to Attachment A – Draft Rate Study RFP, Pg. 3,
Section A – first paragraph:
Current Language
“The City is requesting proposals from qualified and experienced firms to
conduct a comprehensive parking rate study. We are interested in
understanding our current parking rates, evaluating the competitiveness of
our rates compared to other municipalities of similar size and population
and identifying opportunities for revenue optimization.”
Revised Language (Underlined sections have been added):
“The City is requesting proposals from qualified and experienced firms to
conduct a comprehensive parking rate study for the Parking Fund. This is
an enterprise fund, and the City will set fees and rates at levels that
fully cover the total direct and indirect costs—including operations, capital
outlay, and debt service. We are interested in understanding our current
parking rates, evaluating the competitiveness of our rates compared to
other municipalities of similar size and population and identifying
opportunities for revenue optimization to ensure the City parking programs
shall be financially self‐supporting now and in the near future.”