HomeMy WebLinkAboutItem 4a. Parking Rate Study Review and Consideration of Potential Rate Adjustments Item 3a
Department: Public Works
Cost Center: 5101
For Agenda of: 5/14/2024
Placement: Public Hearing
Estimated Time: 120 Minutes
FROM: Matt Horn, Public Works Director
Prepared By: Alex Fuchs, Mobility Services Business Manager
Donna King, Parking Program Manager
SUBJECT: PARKING RATE STUDY REVIEW AND CONSIDERATION OF
POTENTIAL RATE ADJUSTMENTS
RECOMMENDATION
1. Receive a presentation on the draft Parking Rate Study, including consideration of
preliminary recommendations, provide direction regarding the selected rate options
for adoption and implementation, and provide direction to staff to finalize the Parking
Rate Study; and
2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, establishing parking rates for the City’s parking structures and
for parking permits”; and
3. Introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of
San Luis Obispo, California, amending Title 10, Chapter 52 (Parking Meters and
Parking Payment Centers), of the Municipal Code Modifying Hourly Parking Rates On-
Street and In Surface Parking Lots.”
POLICY CONTEXT
Section 4.141 of the General Plan’s Land Use Element (LUE) addresses parking for the
Downtown area. The policy states that the City must ensure there is a diversity of parking
opportunities and any major increases in parking supply should take the form of structures
located on the perimeter of the commercial core.
The Parking Services program of the Public Works Department offers a variety of hourly
rates and permits to provide access to on -street, surface lot, and structured parking
facilities for use by employees, businesses, and visitors of the Downtown area. The City
recently began construction on the fourth public parking structure, the Cultural Arts District
1 Policy 4.14 Parking - The City shall ensure there is a diversity of parking opportunities in the Downtown.
Any major increments in parking supply should take the form of structures, located at the edges of the
commercial core, so people can walk rather than drive between points within the core. Retail uses outside
the core, and professional office developments, may have on-site parking for customers and clients.
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Parking Structure (CADPS), in alignment with the City’s goals for Downtown parking and
access.
Section 13.12 of the General Plan’s Circulation Element (CE) states that the City shall
manage curb parking downtown to encourage short-term use and that parking programs
shall be financially self‐supporting.
Parking Services actively manages curb parking through time-limited parking and
strategically located commercial and passenger loading zones. Limited timed parking on -
street in the core of Downtown encourages use of off -street facilities for long-term parking
needs. Parking Services is also responsible for maintaining the long-term fiscal health of
the Parking Fund and ensuring that all obligations and financial policies are met.
Appropriately set hourly parking rates and permit fees ensure the fund can meet these
obligations and policies.
Economic Resiliency, Cultural Diversity, and Fiscal Sustainability is a Major City Goal as
identified in the adopted 2023-25 Financial Plan. Parking Services plays a critical role in
fostering a vibrant local economy by effectively managing parking demand and access to
Downtown. The Parking Fund must also maintain fiscally responsible and sustainable
operations as indicated in the General Plan CE Section 13.1.2.
REPORT-IN-BRIEF
Council received an update on the Parking Services program in November 2023 and ,
based on better than anticipated bond financing and construction costs for the CADPS
project, reinstated the first hour free and free Sunday parking in the structures to provide
immediate, temporary relief to address community concerns. Council also author ized a
Request for Proposals for a Parking Rate Study. In January 2024, the City contracted
with Dixon Resources Unlimited to complete the Parking Rate Study.
This report details the five main areas of the study: Community Outreach, Parking Supply
and Occupancy, Program and Operational Changes, Financial Modeling, and Preliminary
Recommendations. The preliminary recommendations from the Parking Rate Study
include suggestions for various program and operational changes, including improved
communication and parking signage, and improved technology following completion of a
technology roadmap. Staff is recommending moving forward with these
recommendations as well as other administrative changes to parking programs and
operations that are discussed further in this report. These changes include:
Reduce the number of mobile apps to one vendor;
Expand the on-street time limit from 2 to 3 hours;
Lower validation costs to $1 per hour;
Increase the number of 10-hour and structure permits available;
Reinstate a gated parking system at 842 Palm following evaluation of available
2 Commercial Parking. Policy 13.1.1 Curb Parking - The City shall manage curb parking in the downtown
to encourage short‐term use to those visiting businesses and public facilities. Policy 13.1.2 City Parking
Programs - City parking programs shall be financially self‐supporting.
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gated system technologies; and
Implement incentives program once a single mobile app vendor is selected.
In addition, Dixon Resources Unlimited provided three rate change options that prioritiz e
different key takeaways from community feedback. The three options include:
continuing the first hour free in parking structures (Option A),
lowest rates (Option B), or
a balanced approach (Option C).
Each of the three options would support fiscally sustainable and technologically feasible
parking services, so staff is supportive of implementing any of the three options. Each
option prioritizes different rate structures and would create different impacts to the
community. A range of feedback has been provided by community members and
stakeholder groups at various points in the process, which has included significant
outreach and input opportunities. This feedback has included varying degrees of support
for different aspects of the three options. In light of the community input and the
conclusions in the Rate Study that any of the three options would be financially and
technologically feasible, staff is recommending that Council consider and select one of
the three options. Notably, staff is recommending one slight modification to each of the
options that would maintain the current permit cost for on-street 10-hour meter spaces
($60/month) and reduce permit costs for all structure permits to $45/month. Draft
resolutions and ordinances have been provided to implement any of the three options, as
well as the additional program modifications recommended by staff.
DISCUSSION
Background
The City recognizes the importance of providing accessible and affordable parking
options for community members, businesses, and visitors of the Downtown area. As such,
it is essential to periodically assess the existing hourly parking rates and parking permit
fees to ensure alignment with the City's goals of maintaining an efficient, equitable, and
financially self-supporting public parking system. The City’s parking rates and fees must
sufficiently cover the Parking Fund’s annual operating costs, debt service payments, and
capital projects needs.
For over a decade, City financial plans have discussed and budgeted for the construction
of a fourth public parking structure based on projected future need and development.
Funding mechanisms to cover anticipated debt service repayment centered on hourly
parking rates to ensure immediate and long-term sustainability of the Parking Fund. The
2021-23 Financial Plan3 included a full discussion of the current position of the Parking
Fund and the need for rate increases over multiple years to support the construction and
debt service associated with the new parking structure, as well as ongoing funding needs
for parking services. Council approved on-street and off-street rate increases effective
July 1, 2021, with the understanding that staff would return with additional rate increases
as part of the 2022-23 Supplemental Budget.
3 June 1, 2021 – Item 6a – Adoption of the 2021-23 Financial Plan
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On June 7, 20224, Council adopted the Fiscal Year (FY) 2022-23 Supplemental Budget
which included multiple hourly parking rate increases. Two of the rate increases were put
into effect between January 2023 and July 2023, effectively doubling rates across all
public parking facilities. The increases were based on the best available information for
construction costs and debt service repayment estimates for the new Cultural Arts District
Parking Structure (CAD-PS), as well as expenditure needs for the parking program. Staff
were directed to then monitor and evaluate opportunities to further modify rates
depending on final construction costs and interest rates at time of bond issuance.
Just prior to the rate increases, parking infrastructure and technology changes occurred.
Those changes included the transition from single space parking meters to multi -space
parking meters in summer 2021 and summer 2022 and the introduction of mobile
payment applications in fall 2021. The technology changes were necessary due to the
age of the existing parking asset, which did not support current communications
technology. In summer 2023, changes were also made to the gate system at the 842
Palm Street parking structure to address queueing during peak usage. These changes
instituted a gateless system that requires users to pay for parking upon arrival rather than
at exit (a “park-pay-play” model rather than a “park-play-pay” model that is in use in the
City’s other two parking structures).
In February 20235, when Council adopted the Access and Parking Management Plan
(APMP), Council directed staff to return with a study evaluating all parking rates and fees.
With the adoption of the 2023-25 Financial Plan, Council allocated $150,000 in FY 2023-
24 to complete a parking rate study, which would present recommended operational and
programmatic changes including hourly rates and permit fees to address concerns from
the community about the recent rate increases while maintaining a solvent Parking Fund.
Parking rate studies are typically completed by agencies every two to five years to assess
parking demand, occupancy rates, and revenue generation trends, as well as to address
future capital and operational needs.
Based on better than anticipated bond financing and construction costs for the CADPS,
staff returned to Council on November 7, 20236, to provide an update on the Parking
Services program including consideration of near-term parking rate relief options
addressing community concerns. Council adopted Resolution No. 11456 (2023 Series)
reestablishing the first hour free for the structures and free Sunday parking in the
structures effective November 23, 2023 through June 30, 2025, to provide immediate,
temporary relief. Table 1 shows the rate changes that occurred between January 2023
and November 2023.
4 June 6, 2022 – Item 6a – Adoption of the 2022-23 Supplemental Budget
5 February 21, 2023 – Item 6a. Adoption of the 2023 Access and Parking Management Plan
6 November 7, 2023 - Item 6a. Parking Program Update and Authorize Advertisement of a Request for
Proposals for a Parking Rate Study
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Table 1: Downtown Parking Rates
Effective
January 1, 2023
Effective
July 1, 2023
Effective
November 23, 2023
On-Street Parking
Downtown Core, 2-hr $ 2.00 $ 4.00 $ 4.00
Outer Perimeter, 10-hr $ 1.50 $ 3.00 $ 3.00
Parking Structures
1st Hour $ 0.00 $ 3.00 $ 0.00
Hourly (after 1st hour) $ 1.50 $ 3.00 $ 3.00
Sunday (5 AM – 11:59 PM) $ 1.50/hr. $ 3.00/hr. $ 0.00
Daily Max $ 6.00 $ 12.00 $ 12.00
Overnight $ 15.00 $ 15.00 $ 15.00
On November 7, 2023, Council also authorized the advertisement of a Request for
Proposals (RFP) for a Parking Rate Study to evaluate various rate and program scenarios
based on community input, existing parking supply, occupancy, and length of stay data
analysis, and future needs and demands. Through the rate study process, the selected
consultants would then develop parking priorities and recommendations, taking into
account community and downtown business parking concerns, as well as financial
requirements for the parking program.
Parking Rate Study
The Parking Rate Study is a comprehensive evaluation of parking rates and permit fees
aimed at rightsizing rates to maintain a self-supporting Parking Fund while also enhancing
the user experience and supporting a vibrant economy. The result of the study is a report
that summarizes the input and data gathered to develop financial models of various
scenarios, as well as recommendations for immediate and future changes.
On January 23, 2024, the City Manager approved the award of the contract to Dixon
Resources Unlimited (Dixon) to complete the Parking Rate Study. The study is broken
down into five main areas: Community Outreach, Parking Supply and Occupancy Study,
Program and Operational Changes, Financial Modeling, and Preliminary
Recommendations. These areas are summarized below and in detail in the draft Parking
Rate Study report included as Attachment A.
Community Outreach Analysis
The Parking Rate Study project plan prioritized community input. Parking plays a critical
role in the customer satisfaction of the Downtown area, and the community has been
actively engaged in providing input throughout the rate study process. One of the main
feedback opportunities for community input during the rate study was an online
community survey available through the City’s Open City Hall7 process. The survey was
open for four weeks and received 2,784 responses, which is a significant response rate
for this type of survey. The survey responses represent approximately 230 hours of
community input. Key findings from the survey include:
7 https://communityfeedback.opengov.com/portals/sanluisobispoca/Issue_13598
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Duration of stay
Most community members indicated that the current 2-hour on-street time limit is
not enough.
Both residents and visitors indicated that they typically stay in Downtown for 3
hours.
When asked about their most recent trip to Downtown, most residents stayed for
2 hours.
Cost of Parking
Both residents and visitors indicated that cost is the most important factor when
looking for parking.
Most business owners indicated that they believe the 2023 paid parking rate
increase has led to a drastic decrease in business revenue.
Availability of Parking
Most community members reported that they can find parking in 5 minutes or less.
Downtown Employee Parking Options
Most business owners indicated that they do not provide parking for employees,
and their employees typically have a hard time finding nearby parking.
Most employees indicated that they do not purchase the Quarterly Structure Pass
or 10-hour meter permit.
Community members also provided input via community meetings, phone calls, emails,
and social media posts that were included in the Community Outreach Summary section
of the draft Parking Rate Study report. The Public Engagement section of this report below
provides detailed information on community and stakeholder meetings.
Parking Supply and Occupancy Study
Parking supply and occupancy studies allow the use of data regarding parking space
usage to make parking management decisions. Dixon Resources Unlimited performed
an inventory of on-street parking spaces and both private and public off -street parking
spaces in and around the Downtown area8. Occupancy data, including length of stay
information, was collected in two-hour intervals between 9 a.m. and 9 p.m. on
Wednesday, February 28th, Saturday, March 2nd, and Saturday, March 9th. While this is
a point in time observation and might not align with actual usage year -round, Dixon
Resources Unlimited has recommended that continual and ongoing data collection using
the City’s License Plate Reader (LPR) technology be used to identify seasonal and time
of day trends. The parking space inventory and occupancy data were then used to
8 The study area is the same as what was used for the 2023 Access and Parking Ma nagement Plan (APMP)
update to assure an ‘apples-to-apples’ comparison.
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produce block-by-block heat maps based on percentage of spaces occupied. Below are
the key findings from the supply and occupancy study:Occupancy
The average occupancy rates for each public parking zone did not exceed the 85%
threshold9 at any point during the study.
A few private off-street lots exceeded the 85% threshold at various times of the
day, with 12 out of 97 private lots recording a peak occupancy of 100% during at
least one data collection time. However, no public off -street locations exceeded
85% at any point observed.
The highest average occupancy rate for on -street (66%) was observed on a
Wednesday between 11:00 a.m. – 1:00 p.m.
The highest average occupancy rate for public off -street (41%) was observed on
a Saturday between 1:00 p.m. – 3:00 p.m.
Length of Stay
81% of vehicles observed on-street stayed less than two hours and 94% stayed
less than four hours.
71% of vehicles observed in public off -street locations stayed less than two hours
and 87% stayed less than four hours.
21% of vehicles observed in private off-street locations stayed less than two hours
and 60% stayed less than four hours.
The data that was collected for the Parking Rate Study and for the APMP update occurred
at different times of the year and on different dates10,however, the Parking Rates Study
data is the most recent occupancy data collected. The peak overall occupancy observed
during the Parking Rate Study was 44% on Wednesday, February 28, 2024, at 1:00 p.m.
as shown by Figure 1 below. Peak overall occupancies observed during the 2023 APMP
update, outside of the Farmer’s Market closures, was 63% on Thursday, July 21, 2022,
at 1:00 p.m. and 62% on Saturday, September 24, 2022, at 7:00 p.m.
It is consistent between both study periods that peak occupancy tends to be on a weekday
around lunch time. Both studies also observed occupancies below the 85% threshold
throughout the survey periods. Staff will continue data collection for ongoing analysis to
assist staff and Council in making future parking management decisions.
9 When parking space usage is observed to be at or above the 85% threshold, then spaces are considered
well-used but it is still possible for drivers to find a space without cruising a round waiting for another driver
to leave.
10 Occupancy data for the 2023 APMP occurred on a Thursday and Saturday in both July and September
2022.
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Figure 1 – Peak Occupancy (Wednesday, 2/28/2024, 1 p.m.)
Source: Dixon Resources Unlimited, 2024
Program and Operational Changes – Improvements to the User Experience
The results from the community outreach and data collection results of the study were
used to determine if elements of the City’s parking programs and operations should be
changed. These changes are different than the financial modeling performed by the
consultants because they are likely to have a minor impact on the Parking Fund, but a
potentially significant impact on the overall user experience. Some of the program
changes will require technology changes, and a technology implementation plan will be
needed and is planned for the near future.
Table 2 summarizes the changes analyzed through the Parking Rate Study and the
criteria used to evaluate them. Feasible means that the change is either currently possible
(Y) or not possible (N) using existing hardware and software. Impact to User Experience
evaluates to what degree (Significant, Moderate, Minimal) the change will affect the end
user’s experience. Timeframe means how long it may take to implement (Short = Less
than one year, Medium = one year, and Long = two or more years). Cost is how much the
consultants estimate it would be to implement based on industry experience. Priority is
an overall summary level (High, Medium, Low) considering all other factors as well as
community input. Each of these potential program or operational changes are described
in more detail following Table 2.
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Table 2: Program and Operational Changes Summary
# Description Feasible
(Y/N)
Impact to User
Experience Timeframe Cost Priority
1 Reduce Number of Mobile Apps Y Significant Medium Low High
2 Expand On-Street Time Limits Y Moderate Short Low Low
3 Benefits for Downtown Employees Y Moderate Short Medium Medium
4 Validation Program Enhancements Y Minimal Short Low Medium
5 Signs and Communication Y Significant Medium Medium High
6 Local Incentives Program Y Moderate Medium Low Low
7 Variable Rate Pricing Models N Minimal Long Low Low
8 Structure Gating System Updates Y Significant Medium High High
9 On-Street “Grace” Period Y Minimal Short Low Medium
1. Reduce the Number of Mobile Apps
Mobile apps improve the user experience by giving additional options to pay for
parking without walking to a meter or pay station to start or extend a parking session.
When there are too many payment options, the process can beco me confusing to
message and confusing for the end user and thus the user experience is impacted.
Multiple payment options can also cause technical issues for parking management
programs.
Dixon recommends reducing the number of mobile apps to one and addin g a pay-by-
text option utilizing the same single app vendor. This will offer the convenience of
three payment options to the user (pay station/meter, mobile app, or text) while
balancing the technological needs of the City, ease of communication to the user, and
enhancing the overall user experience. This change will need to be made holistically
utilizing the technology implementation plan. Staff also recommends implementing
this operational change.
The cost associated with reducing the total number of Mobile Apps is considered low
and will require some signage modifications at pay stations, revisions to web site
information, and increased communication needs. These implementation costs have
not been factored into the rate study but will be funded using existing operating funds
within the Parking Service Program.
2. Expand On-Street Time Limits (2 hours to 3 hours)
Community feedback suggested that community members feel a two -hour time limit
in the core on-street parking spaces is not long enough. Parking management best
practices encourage shorter time limits on-street in core parking spaces with longer
term parking available on the perimeter and in off -street parking locations to improve
turnover in high demand spaces. Paid parking rates on-street that are higher than off-
street parking locations also encourage turnover by using price as a driver. Changing
the time limit from 2 hours to 3 hours is expected to have minimal fiscal impact and
impact on driver behavior. While Dixon does not recommend implementing this
operational change, as it differs from industry best practice to encourage turnover in
the core, staff recommends implementing this change as requested by the community.
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The cost associated with expanding on-street time limits is considered low and will
require some signage modifications for on-street parking areas, revisions to web site
information, and increased communication needs. These implementation costs have
not been factored into the rate study but will be funded using a combination of existing
operating funds within the Parking Service Program and existing Capital Improvement
Plan funding. The timeframe for implementation would begin on July 8, 2024, and
signage would be updated and expected to be complete by Fall 2024.
3. Benefits for Downtown Employees
The City offers monthly parking passes to all community members including downtown
employees, and business owners that provide discounted options for parking on -street
outside of the core, off-street in a surface parking lot, or in one of the City’s parking
structures. The City offers 10-hour meter permits for $60 per month that are used to
park at designated spaces on-street and in surface lots. The City also offers structure
permits for $85 per month that are used to access a designated parking structure. To
encourage greater program participation and use of structures by long-term parkers,
Staff recommends lowering the cost of structure permits from $85 per month to $45
per month.
The cost associated with implementation is low as the changes are largely
administrative with the necessary website and increased communications needs.
While the revenue impacts of this change are included in one of the proposed options
for Council’s consideration (Option C), staff is recommending that, regardless of the
selected rate option, this change be implemented across all of the options. This would
provide a low-cost benefit to frequent visitors of the downtown and may increase
occupancy of the City’s parking structures. It should be noted that staff is planning to
not limit the sale of the number of parking structure permits initially and will adjust as
needed based upon usage and parking structure occupancy. Based upon current
systems and technologies in place, the initial implementation of parking structure
permits would be limited to a specific parking structure. With future technology
improvements, the plan is to make any structure permit available for use in any parking
structure based upon customer needs.
4. Validation Program Enhancements
Validation tickets are currently sold to businesses in quantities of 100 tickets for $200
which is a 33% savings on hourly parking rates. Each validation ticket can be used at
one of the gated public parking structures and is equivalent to one hour of parking. An
immediate change can be implemented to reduce the cost of validation tickets to 100
tickets for $100 ($1 per hour). Staff recommends implementing this lower cost
validation option immediately, and Dixon recommends evaluating future validation
options as new technology is considered through the technology implementation plan.
5. Signs and Communication
Staff will focus outgoing communications to key audiences (downtown businesses and
residents, current permitholders, downtown employees, downtown visitors) to keep
them better informed before, during, and after any parking services changes. To do
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this, staff will use the expectations outlined in the City's Public Engagement and
Noticing Manual. Staff will also work on simplifying parking signage, better promoting
parking discount programs and providing front-line staff with the information and
resources necessary to communicate any changes effectively in the field. Rollout of
all new signage will be included in the Technology Implementation Plan, which is
tentatively scheduled to be completed this winter 2024. However, certain signs like
those for mobile apps will be replaced once a single vendor is selected.
6. Local Incentives Program
In 2023, the City implemented a local incentives program (the “Park Local Program”)
in the 842 Palm Street parking structure that was met with mixed reviews due in part
to technological difficulties encountered that created significant frustration and
confusion. A different approach to the Local Incentives Program can be implemented
for specific events or seasons whereby all mobile app users receive a set discount or
credit that can be applied to a future parking session. For example, if there is an
upcoming community event that would have a local draw, the City c ould opt to send
codes to app users or send promotional material to local users to promote the event
with discounted parking rates for the event. Dixon recommends pursuing promotional
discounts once a single mobile app vendor is selected.
The cost associated with this type of local incentives program is considered low and
will require revisions to website information, and increased communication needs
related to the incentives. Future incentives programs will require further coordination
with Downtown SLO and development of a framework for implementation for City-
sponsored and, potentially, externally-sponsored promotional efforts.
7. Consider Variable Rate Pricing Models
Variable rate pricing models (ex. block time payments, tier-based pricing, demand-
based pricing) allow cities to adjust hourly rates based on real-time information to
better manage parking demands. Under different pricing models, rates can increase
or decrease depending on observed occupancy, length of stay, time of day, or season.
These models are often difficult to communicate and difficult for users to understand.
Certain models like tier-based pricing would not be possible to implement successfully
with the current hardware and software technologies used by the City. Demand based
pricing that changes based on seasonal occupancy rates could be considered in the
future as ongoing occupancy data analysis is completed. Dixon does not recommend
use of variable rate pricing models given how difficult they are to communicate and
understand and uncertainty around the ability of existing technologies to support
implementation.
It should be noted that during community outreach work, comments were received
that indicated that increasing parking cost when parking is in high demand was
counter intuitive to the business community, as it could be considered punitive against
businesses during the busy times of the year when much of the businesses ’ revenue
is obtained. This model is also counter intuitive to provide a simple and predictable
parking model for the community.
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Prior revisions to the City’s Municipal Code incorporated a tier-based pricing
framework for potential future implementation of this pricing model. However, in light
of recommendations from Dixon, a desire to maintain simplicity in the City’s parking
rates, and the technological uncertainties with implementing this pricing model, staff
has incorporated revisions to the Municipal Code in the ordinance proposed for
introduction as part of this agenda item.
8. Structure Gating System Updates
One of the key themes from the community input was that the community was
dissatisfied with the park-pay-play model at the gateless 842 Palm Street parking
structure. Staff is researching strategies to update to a gated solution for the three
existing structures, including changing the 842 Palm Parking Structure to a gated
solution, as well as for CADPS. The change to a gated solution in the 842 Palm
Parking Structure will allow the change from a park-pay-play model to a park-play-pay
model, which is more in line with community expectations.
Staff is currently reviewing different technologies for a gated solution with the CADPS
project and will return to Council in the winter of 2024 with a selected solution, as well
as the proposed technology implementation plan.
9. On-Street “Grace Period”
A “grace period” is considered the time after a parking session has expired (either due
to total time in a parking spot in excess of the posted time limit or the expiration of the
timed and paid session) before being subject to citation. Community feedback
requested both an increase to the grace period before a citation can be issued and to
implement a period prior to payment being required for quick trips and pick-ups. In
response to community feedback, the City recently doubled the grace period from
three minutes to six minutes from the time a parking session expires to the time a
citation can be issued. An additional increase to the grace period (up to 15 minutes)
will be implemented to address this community request.
As for offering a free parking period prior to payment, current technology does not
allow for a delayed start to a parking session. Enforcement officers are trained to
check the surrounding area and nearby pay stations prior to writing a warning or
citation to ensure someone is not at the pay station paying when a citation is issued.
Officers also assist customers with using pay stations and downloading payment apps
when they see people near pay stations or reading parking signs. It should be noted
that on several instances customers have reported different experiences with
enforcement. The current process to address these issues is during the parking
citation appeal process, where the standard process is to waive citations for first time
citation recipients and instances where signage was unclear. Additionally, Staff will
evaluate of the use of on-street spaces in the core to assess whether additional
passenger loading zones (10-minute time limit) spaces should be installed for
customers making quick trips downtown.
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Financial Modeling – Rightsizing Rates
The Parking Rate Study is scoped to perform a thorough analysis of parking rates and
parking permit cost and to provide informed recommendations to better align rates with
the needs of the community while maintaining a sustainable Parking Fund. Dixon
evaluated many financial scenarios, as listed in Figure 2. Some of the scenarios
considered were feasible when modeled alone but were demonstrated to be financially
infeasible when modeled in combination with other scenarios. Other scenarios, like
implementation of tier-based pricing, regardless of financial impact, are not possible given
the existing technology constraints.
The chart below identifies the financial modeling scenarios and general levels of feasibility
for each. The green highlights in the feasibility column indicate a high level of feasibility
while the yellow and red highlighted cells indicate a moderate to unfeasible scenario
respectively. It should be noted that the yellow highlighted c ells can be implemented, but
the cost of that one scenario would limit other reductions that could be made and might
not represent the community’s highest priority at this time.
Figure 2: Financial Modeling Scenarios Summary
Dixon uses a proprietary financial modeling tool which encompasses multiple parking
related data points like occupancy rate, length of stay, compliance rate, and others to
determine potential revenue impacts of individual scenarios. Occupancy rates and length
of stay data points for the parking rate study models are informed by observations made
during the parking supply and occupancy portion of the study while others are based on
industry norms.
Scenarios were individually modeled, however, when multiple scenarios were combined,
the cumulative impacts were greater than the sum of their parts. For example, the
combined impact of reducing the hourly rate in the structures and continuing the first hour
free is greater than when each is modeled separately. This is in recognition of the interplay
between the various rate and operational scenarios that change parking demand. Dixon
packaged multiple scenarios together into options for the Council’s consideration.
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Financial Model Package Options – What Does it Look Like?
Dixon developed and presented multiple rate and benefit options at multiple community
meetings and stakeholder meetings. Based on the feedback received, Dixon provided
three package options that each prioritize a key takeaway from the study’s outreach and
engagement activities: Option A prioritizes keeping the first hour free in the structures,
Option B prioritizes lowest possible rates, and Option C prioritizes reducing rates and fees
across multiple programs and parking areas. Table 3 summarizes the main elements of
each option and Tables 4, 5, 6, and 7 compare the differences between current rates and
proposed rates of the three options.
Table 3: Financial Model Package Options Summary
(Rates in bold and underlined indicate a rate reduction from existing rates)
Option A: Prioritizes
First Hour Free
Option B: Prioritizes
Lower Rates
Option C:
Balanced Approach
On-Street Rates Core: $4.00/Hr
Outer: $3.00/Hr
Core: $2.75/Hr
Outer: $2.25/Hr
Core: $3.00/Hr
Outer: $2.50/Hr
On-Street Hours M-S 9 AM – 9 PM
Su 1 PM – 9 PM
M-S 9 AM – 9 PM
Su 1 PM – 9 PM
M-S 9 AM – 9 PM
Su 1 PM – 9 PM
Structure Rates $2.50/Hr, $10 Daily Max
First Hour Free
$2.00/Hr, $8 Daily Max
Paid First Hour
$2.00/Hr, $8 Daily Max
Paid First Hour
Off-Street Hours 7 Days per Week 7 Days per Week 7 Days per Week
Permit Rates11
10Hr Meter Permit:
$60/mo
Structure Permit: $85/mo
10Hr Meter Permit:
$60/mo
Structure Permit:
$85/mo
10Hr Meter Permit:
$45/mo
Structure Permit:
$65/mo
Option C, Balanced Approach, is Dixon’s recommended option that offers lower rates on-
street and off-street, as well as reduction in monthly permits costs. The trade-off with
Option C is that the first hour free in the structures must be reinstated to maintain a
sustainable long-term fund forecast. Dixon, as a general approach to public parking
management, prioritizes lower rates across all parking areas instead of free parking in
certain areas or at certain times. This also includes Sunday parking. By charging for
Sunday parking, this expands the customer base for parking fees and lowers the cost to
all users and not just those who choose to visit the downtown on Sunday.
There has been significant discussion between Dixon, City staff, and the community,
including Downtown SLO, its Parking and Access Committee, and its parking task force,
regarding the option packages and regarding offering free parking to encourage visitors
and locals to park and shop downtown. Parking industry best practices show that offering
free parking can be a detriment to downtown businesses. When free parking is offered
for a limited time (e.g. first hour free in the structures), this encourages parkers to make
11 Permit rates shown in this table are recommended by Dixon. Staff is recommending that permit rates ,
regardless of the rate model selected by Council, be revised to $60 per month for 10-hour meter permits
for designated spaces on-street and in surface lots and $45 per month for parking structure permits. This
is intended to encourage increased occupancy in parking structures and to provide a low-cost solution for
employees and frequent downtown visitors.
Page 18 of 127
Item 3a
quicker trips and to leave before the free time period expires. Programs that offer free
parking in structures is also inconsistent with the goal of providing a long-term parking
alternative to shorter term on-street parking. Additionally, offering free parking in certain
areas or at certain times requires higher rates elsewhere to offset the lost revenue.
Nonetheless, feedback from the community indicates that the first hour free offers benefits
to the San Luis Obispo community and region that may be greater than the negative
parking management impacts it creates. The first hour free subsidy has been provided
since the first structure opened in the 1980s and is now synonymous with downtown
parking for many residents, business owners, and regular visitors. The first hour free was
removed as part of the prior rate action that became effective in July 2023, and, in
recognition of community feedback received in the summer and fall of 2023 and changes
in the Parking Fund’s financial outlook following completion of financing and construction
contracts for the CADPS structure, on November 7, 2023, Council took action to reinstate
the first hour free in structures through June 30, 2025, and undertake a rate study to
comprehensively evaluate rates and parking programs.
Given that all three rate options presented by Dixon maintain a financially sustainable
Parking Services program, are technologically feasible, and provide benefits in the form
of decreases in parking rates, and in light of the mixed community response to aspects
of the three options, staff is supportive of implementing any of the three options and has
provided a draft Ordinance and Resolution to implement any of them:
Attachments B and C provide a draft Ordinance and Resolution to implement
Option A;
Attachments G and F provide a draft Ordinance and Resolution to implement
Option B; and
Attachments E and F provide a draft Ordinance and Resolution to implement
Option C.
All of the draft resolutions would implement changes to reduce monthly structure permit
rates to $45/month and to leave monthly permit rates for 10-hour on-street permits at
$60/hour, which differs slightly from the rate packages presented by Dixon. All of the draft
resolutions and ordinances would also implement the operational and programmatic
changes described above. If Option B or C is selected, staff would recommend that the
first hour free program be eliminated at the same time as the rate reductions go into effect.
Finally, at multiple community meetings and stakeholder meetings, individuals requested
that Dixon model an option that included both maintaining the first hour free and reduction
to hourly parking rates on-street and in the structures. Dixon modeled a scenario whereby
the first hour free would be maintained and hourly rates would be reduced to $3.00 per
hour in the core area, $2.00 per hour in the outer area, and $2.00 per hour in the
structures. This scenario results in an average annual loss of almost $1.3 million per year
which immediately jeopardizes the solvency of the Parking Fund.
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Item 3a
Items Not Analyzed in the Parking Rate Study
Several items came up during the community outreach events that were not in the study’s
scope of the work and that relate to broader financial and General Plan policies. These
items included whether the Parking program should continue to operate as an Enterprise
Fund, whether the General Fund should subsidize parking rates on a one -time or on-
going basis, and impacts parking rates have on sales tax revenue. The following section
briefly addresses these items.
Parking as an Enterprise Fund
Enterprise funds are used by the City to account for services that are similar to private
sector activities where the intent is to finance or recover the cost of providing the services
through user charges (rates and fees). The City has operated paid parking since 1947,
however, the Parking Enterprise Fund was not formally established until 1976. Since then,
it has been the City’s policy to set parking fees and rates so that they fully cover the total
(direct and indirect) costs of the City’s parking services. This means the General Fund
does not subsidize the Parking Fund and, conversely, the Parking Fund does not
subsidize the General Fund as described in the whitepaper “Parking Fund Financial
Policies” published on May 1, 2000, and included as Attachment D to this report.
As noted in the Policy Context section of this report, it is a General Plan policy that the
City’s parking program be self-supporting. Any proposed changes to Parking’s status as
a designated enterprise fund would require General Plan amendments and likely other
policy document amendments.
General Fund Subsidization
The General Fund has not subsidized the Parking Fund since the formation of the Parking
Enterprise Fund in 1976. In January 2024, City Council approved a loan from the
Infrastructure Investment Fund (IIF) to the Parking Fund for the purchase of the 1166
Higuera Street property. The loan will be paid back by the Parking Fund over a thirty-year
term with interest. The loan does not jeopardize capital projects intended to be funded by
the IIF including projects like the Highway 101/Prado Road interchange. If amendments
were made to applicable General Plan and financial policies governing the Parking Fund
to allow a General Fund subsidy to the Parking Fund, a nd depending on any subsidy
amounts, trade-offs would need to be made in the form of deferral or defunding of City
services, programs, or projects.
Sales Tax Revenue
The City tracks and reports aggregated sales tax across the City and by several identified
business areas within the City. In general, that data has remained relatively aligned with
broader economic trends at the State and County level. For example, in 2023, average
sales tax revenue (excluding Local Revenue Measure G-20) was down across the board,
for Downtown San Luis Obispo (-3%), the City of San Luis Obispo (-2.8%), the County of
San Luis Obispo (-2.7%), and the State of California (-2.1%). Downtown San Luis Obispo
also remains the second highest sales tax revenue generating business area in the City
after the Los Osos Valley Corridor.
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Item 3a
Sales tax revenue increases or decreases are based on a broad scope of economic
factors and an additional study would be required to identif y all of those factors and
associated impacts.
Next Steps
Implementation of any changes approved by City Council should be phased in and done
with time and consideration. Much of the feedback from the community was related to the
number of changes that occurred in a very short time and it is the intent of the rate study
to provide changes in an appropriate time frame. The schedule below is recommended
for a cohesive process that will address immediate needs of the community while
recognizing a need for more thorough evaluation of technology and equipment before
implementation of certain operational and programmatic changes.
1. June 4, 2024 – Second reading of Ordinance for recommended on-street and lot
rate changes;
2. July 8, 2024 – Recommended rate changes take effect; and
3. Winter 2024 – Present recommendations from Technology Implementation Plan
for additional operational and programmatic changes
Previous Council Action
On November 7, 2023, Council authorized the advertisement of the Request for
Proposals to complete a parking rate study. Additionally, Council adopted Resolution No.
11456 (2023 Series) authorizing free parking for all users of the City parking structures
from November 23, 2023, through June 30, 2025 for 1) one hour free parking each day
and 2) free parking all day on Sundays from 5:00 a.m. – 11:59 p.m. Council also directed
staff to return at a later date with an Ordinance foregoing the on -street parking rate
increase previously approved to take effect July 1, 2025.
On June 6, 2023, Council authorized the adoption of the 2023 -25 Financial Plan, which
included the allocation of $150,000 to complete a parking rate study.
On April 18, 2023, the City Council adopted Resolution No. 11410 (2023 Series)
establishing a Park Local Pilot Program whereby registered San Luis Obispo County
residents would receive one hour free in the 842 Palm Street parking structure.
On February 21, 2023, City Council received and adopted the 2023 Access and Parking
Management Plan (APMP). Council also directed staff to conduct a rate study of all
parking rates and fees and to return at a later time with recommendations for their
consideration. Council also directed staff to create a pilot program to continue to provide
San Luis Obispo County residents with one hour free parking in the structures.
On June 7, 2022, Council approved three parking rate increases with the adoption of the
FY 2022-23 Budget Supplement, as well as the elimination of the first-hour subsidy for all
customers of the downtown parking structures.
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Item 3a
Public Engagement
The following stakeholder and community outreach efforts have been completed as part
of the parking rate study:
Community Meetings
February 13th from 6:00 p.m. to 8:00 p.m. at the Library Community Room
February 14th from 12:00 p.m. to 1:00 p.m. (Virtual Meeting)
April 4th from 6:00 p.m. to 8:00 p.m. at the Ludwick Community Room
April 5th from 12 p.m. to 1:30 p.m. (Virtual Meeting)
May 2nd from 5 p.m. to 6:30 p.m. (Virtual Meeting)
Stakeholder Meetings
Downtown SLO Parking and Access Committee (3 meetings)
Downtown SLO Parking Rate Study Task Force (4 meetings)
o The Downtown SLO Parking and Access Committee created a dedicated
task force to review and provide input on the parking rate study throughout
the project. The task force is made up of various downtown representatives
including retail, restaurant/bar, office, second floor retail, and residents.
SLO Chamber of Commerce Economic Development Committee (1 meeting)
Parking Steering Committee (3 meetings)
Online Community Survey
An online survey was available using the City’s Open City Hall forum from February 6 th
through March 8th. The survey provided an opportunity for the community to submit
additional information about their parking experiences in the downtown. The survey
received almost 2,800 responses from individuals identifying themselves as residents,
visitors, business owners, and/or employees.
Farmers Market Events
Staff set up a booth at two Farmers Market events on February 15th and February 22nd
promoting the Online Community Survey. Event attendees could complete the survey at
the booth using tablets furnished by the City.
Project Team Email and Social Media Posts
The project team distributed an email to the public on all communications and promotions
for the Parking Rate Study. Between February 5 th and March 11th, the consultant received
over 80 emails and 60 social media responses.
CONCURRENCE
The departments of Administration, Finance and Public Works concur with the
recommendations of this report and agree that either Option A, B or C of the rate
scenarios are feasible models for implementation.
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Item 3a
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2024-25
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:
Total $ $ $ $
Table 4 below identifies the total potential revenue, expenditures, and changes in financial
position for each of the options as forecasted by Dixon’s financial modeling tool. The
expenditures shown were provided by the City to Dixon and includes budget changes and
requests prepared for the FY 2024-25 Supplemental Budget Review. The expenditures
include reduced capital costs for parking structure asset maintenance projects presented
to Council at the November 7, 2023 meeting.
Options A, B, and C forecast a sustainable Parking Fund , and the additional scenario that
was requested by the community presents a negative financial position in each of the five
forecast years. Recommended program and operational changes are not included in
these forecasts as they are assumed to have a minor or minimal financial impacts.
These forecasts are provided with the understanding that changing multiple elements at
the same time could result in unanticipated impacts. The options do not include changes
in parking demand. Parking demand is affected by multiple external factors beyond rate
changes, which makes demand forecasting inherently difficult to predict. Any changes
approved will be closely monitored and reported to Council as part of the City’s existing
financial reporting process.
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Item 3a
Table 4: Fiscal Impacts of Preliminary Recommended Options
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Baseline: Current Rate Structure
Revenues $ 10,322,784 $ 10,291,784 $ 11,946,484 $ 12,145,551 $ 12,169,406
Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902
Change in
Financial
Position
$ 337,564 $ 432,612 $ 1,417,042 $ 2,027,166 $ 1,603,504
Option A: Prioritizes First Hour Free in the Structures
Revenues $ 10,283,870 $ 10,269,870 $ 10,731,105 $ 10,732,372 $ 10,755,227
Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902
Change in
Financial
Position
$ 298,650 $ 410,699 $ 201,663 $613,988 $ 189,325
Option B: Prioritizes Lower On-Street Rates
Revenues $ 9,991,861 $ 9,977,861 $ 10,874,136 $ 10,875,403 $ 10,898,258
Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902
Change in
Financial
Position
$ 6,641 $ 118,690 $ 344,694 $ 757,018 $ 332,356
Option C: Balanced Approach
Revenues $ 10,213,959 $ 10,199,959 $ 11,096,234 $ 11,097,501 $ 11,120,356
Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902
Change in
Financial
Position
$ 228,739 $ 340,788 $ 566,792 $ 979,117 $ 554,454
Community Requested Scenario
Revenues $ 8,680,258 $ 8,666,258 $ 9,127,493 $ 9,128,760 $ 9,151,615
Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902
Change in
Financial
Position
- $ 1,304,963 - $ 1,192,914 - $ 1,401,949 - $ 989,624 - $ 1,414,287
ALTERNATIVES
1. Council could choose to adopt the Option A rate model. Council could choose to
adopt Option A as the selected rate model for parking rates in the downtown. Staff
agrees that either Option A, B, or C provide feasible rate models. If Council chooses
to move forward with this recommendation, included as Attachment B and C are the
corresponding draft Ordinance and Resolution to implement Option A.
2. Council could choose to adopt the Option B rate model. Council could choose to
adopt Option B as the selected rate model for parking rates in the downtown. Staff
agrees that either Option A, B, or C provide feasible rate models. If Council chooses
to move forward with this recommendation, included as Attachment G and F are the
corresponding draft Ordinance and Resolution to implement Option B.
3. Council could choose to adopt the Option C rate model. Council could choose to
adopt Option C as the selected rate model for parking rates in the downtown. Staff
agrees that either Option A, B, or C provide feasible rate models. If Council chooses
Page 24 of 127
Item 3a
to move forward with this recommendation, included as Attachment E and F are the
corresponding draft Ordinance and Resolution to implement Option C.
4. Council could choose not to adopt the attached Resolution and/or not introduce
the attached draft Ordinance. This action is not recommended by staff because
community input from the rate study clearly indicates an immediate need to implement
further parking rate and program changes to promote economic activity downtown.
5. Council could choose to direct staff to conduct additional community outreach
before approving any parking rate and/or program changes. This action is not
recommended because staff and the consultant team conducted a significant amount
of outreach as part of the rate study.
6. Council could choose to adopt parking rates and/or program changes not
analyzed through the Parking Rate Study. This action is not recommended
because adopting parking rates and/or program changes without first understanding
the financial impacts of them could jeopardize the lon g-term health of the Parking
Fund.
ATTACHMENTS
A - Parking Rate Study Draft Report
B - Draft Ordinance amending Title 10, Ch. 52 of the Municipal Code rescinding the
parking rate increase planned for July 1, 2025 for Option A
C - Draft Resolution establishing rates for parking structures and for parking permits for
Option A
D - Parking Fund Financial Policies
E - Draft Ordinance amending Title 10, Ch. 52 of the Municipal Code removing the parking
rate increase planned for July 1, 2025, and reducing on-street surface lot parking rates
for Option C
F - Draft Resolution establishing rates for parking structures and for parking permits for
Option B or Option C
G - Draft Ordinance amending Title 10, Ch. 52 of the Municipal Code removing the parking
rate increase planned for July 1, 2025, and reducing on-street and surface lot parking
rates for Option B
Page 25 of 127
Page 26 of 127
May 6, 2024 DRAFT 1
Downtown
San Luis Obispo
Parking Rate
Study Report
Prepared for the
City of San Luis Obispo
May 6, 2024
DRAFT VERSION 1.1
Page 27 of 127
May 6, 2024 DRAFT 2
Table of Contents
Introduction .......................................................................................................................................... 3
Purpose ............................................................................................................................................. 3
Background ...................................................................................................................................... 3
Study Area ......................................................................................................................................... 4
Rate Study Development Process .................................................................................................. 4
Community Outreach .................................................................................................................. 5
Data Collection ............................................................................................................................. 5
Parking Rate Model Options ............................................................................................................... 6
Option A: Retain Free Hour ............................................................................................................. 7
Option B: Prioritizing the Lowest Rates ......................................................................................... 8
Option C: Prioritizing Value in Structure Parking .......................................................................... 9
Other Financial Modeling Scenarios .......................................................................................... 11
Recommendation .......................................................................................................................... 12
Supply and Demand Assessment ................................................................................................... 13
Public -Private Agreements ........................................................................................................... 14
Parking Enterprise Fund ............................................................................................................... 15
Program and Operations Recommendations ................................................................................ 15
Demand-based Parking Pricing ................................................................................................... 15
Parking Programs .......................................................................................................................... 16
Technology & Signage Recommendations ................................................................................ 18
Other Considerations ................................................................................................................... 21
Next Steps ...................................................................................................................................... 23
Appendix A - Community Outreach Summary .............................................................................. 25
Appendix B – Downtown SLO Parking Utilization Report ............................................................. 39
Appendix C - Financial Modeling Scenarios ………………………………………………………….i
Page 28 of 127
May 6, 2024 DRAFT 3
Introduction
Purpose
This Downtown San Luis Obispo Parking Rate Study Report (Report) was developed by Dixon
Resources Unlimited (DIXON) for the City of San Luis Obispo (City) to model, forecast, and
evaluate parking rates for on-street and off-street public parking. This Report identifies three
parking rate models developed based on discussions with City staff and feedback from the
community. DIXON provides an evaluation of three parking rate models and offers a
recommendation to the City.
Background
On July 1, 2023, the City implemented a two-fold increase to its public paid parking rates, and
at the same time, the City removed the first hour free. The community vocalized their
dissatisfaction with the rate increases, resulting in Council action in November 2024 to return
the first hour free and introduce free parking on Sundays in the parking structures. These rate
changes are summarized in Table 1. The current parking rate structure is set to expire on June
30, 2025, as it is predicted that the parking fund will no longer be sustainable by that date. The
Council implemented the current rate structure as an interim solution so other options could
be further explored and evaluated.
As a result, the City contracted DIXON to conduct a parking rate study and develop this Report
to support City staff and Council in discussions of changes to be made to the paid parking rate
model and program in order to meet the following goals:
• Develop a consistent and simple rate structure that is easy to communicate.
• Encourage people to patronize Downtown San Luis Obispo (SLO).
• Align premium pricing with on-street core spaces, and value pricing with on-street
periphery and off-street spaces.
• Ensure the Parking Enterprise Fund maintains a financially sustainable forecast.
Table 1. 2023 Rate Changes
Effective
January 2, 2023
Effective
July 1, 2023
Effective
November 23, 2023
On-street/
Lot Rates
Core: $2.00/h
Outer: $1.50/h
Core: $4.00/h
Outer: $3.00/h
Core: $4.00/h
Outer: $3.00/h
Off-street
Rates
$1.50/h, $6.00 daily
max, first hour free
$3.00/h, $12.00 daily
max
$3.00/h, $12.00 daily
max, first hour free,
free parking Sundays
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May 6, 2024 DRAFT 4
Study Area
This Report has been developed to address parking management in Downtown SLO. Figure 1
shows the Study Area, which includes 1,306 on-street spaces, and 1,255 public off-street
spaces 1 across 8 locations.
Figure 1. Downtown San Luis Obispo Study Area
Rate Study Development Process
The rate study comprised the following activities:
• Review of background documentation provided by the City, including the 2023 Access
and Parking Management Plan (APMP).
• On-site assessment of parking conditions that included DIXON and City staff.
• An update count of the City’s existing public parking inventory, as well as an
identification of private off-street parking inventory that could potentially be leveraged
for public-private agreements and other means of expanding public parking supply.
• Parking utilization study and data analysis based on a three-day sample of occupancy
data collected.
1 Space counts for the existing Palm -Nipomo Lot are excluded due to its closure for the construction of
the new Cultural Arts District Parking Structure.
Page 30 of 127
May 6, 2024 DRAFT 5
• Community outreach, including the creation of a public participation plan that offered
a series of five community meetings, a public input survey that received over 2,700
responses, as well as a project email where the public has submitted over 90 email
comments.
• Stakeholder engagement, including presentations and engagement with the
Downtown SLO Parking Taskforce, Parking & Access Committee, Parking Steering
Committee, and the Chamber of Commerce.
• Supply and demand analysis to identify areas of parking surplus or shortage.
• Financial modeling to evaluate more than sixteen (16) paid parking rate scenarios and
program elements.
Community Outreach
Community engagement was prioritized as part of this rate study and feedback was collected
from various channels, including a survey, social media, community meetings, and emails.
General themes that emerged include challenges related to technology and payment
methods, safety improvements desired in parking garages, calls for rate reductions and
maintaining free parking periods, concerns regarding transparency in recent changes, worries
about the impact on locals, visitors, and businesses, and suggestions to reduce evening
parking hours.
The full Community Outreach Summary can be found in Appendix A.
Data Collection
The parking utilization study conducted by DIXON found that overall parking occupancy rates
typically remained below 85% across all zones 2, with fluctuations observed based on time and
location. Peak occupancy of 100% was noted in certain on-street and private off-street areas
during various data collection times, indicating localized congestion. Weekdays generally saw
higher on-street parking occupancy compared to weekends, while public off-street locations
showed varying occupancy rates throughout the day. Additionally, parking turnover rates in
public parking locations are relatively high, with 59% of vehicles staying between 0-2 hours.3
Compared to the previous parking study done in 2022, parking utilization results measured by
DIXON were lower on average for both the on-street and public off-street locations.4 Both
parking utilization study results 5 found that most drivers are staying for less than 4 hours.
2 85% occupancy is an important benchmark as industry best practice indicates that occupancy at or
exceeding this level indicate that parking management actions may be necessary.
3 According to the parking utilization study completed by DIXON that covered two days of public on-
street and off-street occupancy.
4 This is expected as DIXON under the City’s direction conducted the weekday data collection on a
Wednesday, while the 2022 study collected data on a Thursday, when there is Farmer’s Market.
5 Turnover data collected in the previous parking study is only as granular as the street level and was
categorized as either short-term parkers staying less than 4 hours, or long-term parkers staying for 4 or
more hours. DIXON’s turnover data was analyzed at the block face level and was broken down into each
data collection time interval, thus yielding more specific results.
Page 31 of 127
May 6, 2024 DRAFT 6
The generally low parking utilization seen across public parking inventory could be due to high
parking rates and the poor user experience using parking technology as shared through
community feedback. The full Parking Utilization Report can be found in Appendix B.
Parking Rate Model Options
DIXON was scoped to evaluate a list of at least sixteen (16) scenarios and elements as part of
this rate study. These included variables such as adjusting operating hours, considering
different rate structures, and evaluating changes in permit parking fees and incentive
programs. DIXON’s extensive financial modeling efforts accounted for occupancy rates,
predicted compliance rates, and different parking rate structures in the development of a five-
year forecast of projected parking program revenues. Annual expenditure figures used in the
financial modeling to determine the parking rate model options were provided by the City and
is what will be presented as part of the Fiscal Year 2024-25 Supplemental Budget Review.
After financial modeling efforts, discussions with City staff, evaluation of parking utilization data,
and analysis of community feedback received, DIXON has narrowed the options down to three
rate models summarized in Table 2. These options were selected in an effort to incorporate a
range of community suggestions in tandem with considering the City’s program goals and
financial sustaiability requirements. This section expands on each option with the associated
financial projections, rate changes compared to status quo, and the predicted impacts based
on the goals of the rate change. It further expands on why certain scenarios requested for
consideraton are not recommended for City, and concludes with DIXON’s recommendation.
Table 2. Summary of Parking Rate Model Options
Option A:
Retain Free Hour
Option B:
Lowest Rates
Option C:
Structure Parking
On-street/
Lot Rates
Core: $4.00/h
Outer: $3.00/h
Core: $2.75/h
Outer: $2.25/h
Core: $3.00/h
Outer: $2.50/h
On-street/
Lot Hours
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM – 9 PM
Off-street
Rates
$2.50/h, $10.00 daily
max, first hour free
$2.00/h, $8.00 daily
max
$2.00/h, $8.00 daily
max
Off-street
Hours 7 days per week 7 days per week 7 days per week
Permit Rates 10h meters: $60/mo
Structures: $85/mo
10h meters: $60/mo
Structures: $85/mo
10h meters: $45/mo
Structures: $65/mo
For context, today’s rates and operating hours are as follows:
• On-street/lot rates: Core spaces at $4.00/hour; Outer spaces at $3.00/hour.
o Operating hours are Monday to Saturday 9 AM - 9 PM, Sundays 1 PM - 9 PM.
Page 32 of 127
May 6, 2024 DRAFT 7
• Off-street rates: $3.00/h, $1 2.00 daily max, first hour free.
o Operating hours are Monday to Saturday, 24 hours.
• Permit rates: 10h meter permits are $60/month; Structure permits are $85/month.
Option A: Retain Free Hour
The community largely emphasized that retaining the free hour is an important aspect of the
parking program. As such, Option A prioritizes how it would be possible to achieve this given
that the current model is forecasted to no longer be financially sustainable in mid-2025.
Table 3. Option A Rate Model
Option A: Retain Free Hour
On-street/Lot Rates Core: $4.00/h; Outer: $3.00/h
On-street/Lot Hours Mon-Sat, 9 AM - 9 PM; Sundays, 1 PM - 9 PM
Off-street Rates $2.50/h, $10.00 daily max, first hour free
Off-street Hours 7 days per week
Permit Rates 10h meters: $60/mo; Structures: $85/mo
Figure 2. Option A Projected Revenue, Expenses, and Change in Financial Position
Impacts
If the City proceeds with Option A, changes include:
• Decreasing off-street rates by $0.50/h and decreasing the daily maximum by $2.
• Increas ing off-street operating days from six days per week to seven.
Option A would continue the existing “hourly” rate structure (in which a set amount is charged
per hour in each location). A benefit of an hourly rate structure is that it can be easy to
communicate and understand.
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Meanwhile, with Option A, the hourly rate for off-street parking would be decreased, which is
aligned with the industry best practice of pricing off-street spaces lower than premium on-
street spaces to encourage long-term parkers to park in underutilized structure spaces;
however, it is important to mention that this must be associated with improvements to the
parking structure experience as rates are only one factor for drivers to determine where to park,
or whether to patronize Downtown SLO. Given the City utilizes a Parking Enterprise Fund
whereby the parking program must remain financially sustainable, Figure 2 demonstrates that
the financial projections for this option support a sustainable solution.
Option B: Prioritizing the Lowest Rates
Community feedback has indicated that residents and visitors value the cost of parking,
specifically the ability to find parking at a low rate, as the most important factor when looking
for parking. Option B is focused on decreasing parking rates as much as possible while
considering the financial sustainability of the Parking Enterprise Fund.
Table 4. Option B Rate Model
Option B: Lowest Rates
On-street/Lot Rates Core: $2.75/h; Outer: $2.25/h 6
On-street/Lot Hours Mon-Sat, 9 AM - 9 PM; Sundays, 1 PM - 9 PM
Off-street Rates $2.00/h, $8.00 daily max
Off-street Hours 7 days per week
Permit Rates 10h meters: $60/mo; Structures: $85/mo
Figure 3. Option B Projected Revenue, Expenses, and Change in Financial Position
6 Hourly rates ending at .25 and .75 increments may cause an operational challenge for calculating the
cost of parking sessions at intervals of less than 1 hour. The City may consider addressing this by
rounding values up to the nearest.00 or .50 mark.
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Impacts
If the City selects Option B, changes include:
• Decreasing on-street and surface lot rates by $1.25/h in core spaces, and $0.75/h in
outer spaces.
• Decreasing off-street rates by $1.00/h and decreasing the daily maximum by $4.
• Increasing off-street operating days from six days per week to seven days.
• Removing the first hour free in parking structures.
Like Option A, Option B would also continue to utilize an hourly rate structure, which is
considered the easiest rate structure to communicate. Option B achieves many of the goals
identified in the Introduction: it continues an hourly rate structure that is easy to communicate,
the reduced rates would likely contribute to increased patronage of Downtown SLO (especially
if combined with a proactive marketing campaign), and the pricing strategy is aligned with
industry best practices while ensuring that the Parking Enterprise Fund remains financially
sustainable.
Option C: Prioritizing Value in Structure Parking
To effectively manage parking inventory, it is a best practice to structure rates so that the most
convenient parking with the highest demand is priced at a premium to encourage turnover.
Meanwhile, offering lower rates in outer core and off-street locations can encourage utilization
for longer parking sessions and help balance parking demand to alleviate congestion. The City
can appropriately price its premium, value, and long-term parking spaces to encourage the
differentiation of parking space utilization based on the intended purpose of the parking
session. Figure 4 offers a visual definition of this industry best practice. Option C aims to realign
the rate model such that it accurately reflects this practice, given that outer spaces are currently
valued at the same rate as parking structure spaces. Additionally, Option C offers the flexibility
to decrease the cost of parking permits while still being financially sustainable overall. Lower
permit rates can encourage higher utilization and program participation.
Figure 4. Industry Best Practice of Valuing Parking
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Table 5. Option C Rate Model
Option C: Structure Parking
On-street/Lot Rates Core: $3.00/h; Outer: $2.50/h
On-street/Lot Hours Mon-Sat, 9 AM - 9 PM; Sundays, 1 PM – 9 PM
Off-street Rates $2.00/h, $8.00 daily max
Off-street Hours 7 days per week
Permit Rates 10h meters: $45/mo; Structures: $65/mo
Figure 5. Option C Projected Revenue, Expenses, and Change in Financial Position
Impacts
If the City selects Option C, changes include:
• Decreasing on-street and surface lot rates by $1.00/h in core spaces, and $0.50/h in
outer spaces.
• Decreasing off-street rates by $1.00/h and decreasing the daily maximum by $4.
• Increasing off-street operating days from six days per week to seven days.
• Removing the first hour free in parking structures.
• Reducing permit rates by $15/month for 10h meters, and $20/month for structures.
Option C offers an ideal parking rate structure that addresses the community’s interest in lower
rates while also aligning with industry best practices to balance parking demand and utilization.
For the City, the rates suggested in Option C are generally straightforward to implement
operationally while also enabling financial sustainability. The City can also encourage more
employees to participate in the permit program with lower permit rates along with increased
promotion. This option would support rightsizing the parking demand and encourage higher
utilization of parking structures.
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Other Financial Modeling Scenarios
The following are a set of financial modeling scenarios that DIXON evaluated as part of its
scope of work which led to the development of the three rate model options described above.
Some of these scenarios have been deemed inapplicable to the City or unfeasible, given the
rationale provided below.
• Evaluate reduction in operating hours: DIXON was asked by the City and the
community to evaluate a reduction in operating hours, with variations including the
reduction of evening weekday paid parking hours and the reduction of Sunday on-
street/lot paid parking hours. While the reduction of operating hours may suggest an
increased freedom for visitors to park, in actuality it reduces the City’s ability to best
manage parking supply and demand. Reducing operating times would undermine the
intent of using paid parking as a parking demand management tool, since paid parking
is intended to encourage factors like on-street turnover, utilization of the structures, and
participation in the employee permit program. There are alternative ways to incentivize
downtown patronage that do not compromise the effectiveness of the program, such
as lower hourly rates, reduced permit rates, and the opportunity for parking validations
and promotional codes. Additionally, it was identified by financial modeling that
reducing operating hours does not enable much flexibility in reducing parking rates
without compromising program sustainability.
• Evaluate retaining versus eliminating the free hour: Depending on the scenario,
offering the first hour free can cost the program between $2.0–2.7 million in potential
revenue. Based on the parking utilization study, the majority of drivers are estimated to
park in Downtown SLO between 0-2 hours. As such, the free hour significantly impacts
the ability for the Parking Enterprise Fund to remain financially sustainable. However,
the online survey found that drivers would prefer to typically visit Downtown for 3 hours.
The inclusion or elimination of the first hour free, as well as the opportunity to lower
rates, will impact parking behavior and may influence the desired and actual lengths of
stay.
• Evaluate deferring future approved rate increase. City Council had already
determined that the rate increase originally scheduled for July 1, 2025, is to be
canceled.
• Evaluate rates for the new Cultural Arts District Parking Structure. Based on
community sentiment that the paid parking program needs to be simple and easy to
understand, DIXON generally recommends that the new parking structure pricing
should remain consistent with the other parking structures.
• Evaluate block time payments. Block time payments are identified as a pricing model
typically applied to off-street parking locations that feature an early-bird entry rate, an
all-day rate, and an evening rate. For example, this could be a low flat rate for early
morning entry, a higher rate for daytime entry, and the lowest rate for evening entry. A
block-time payments model encourages all-day parking but may appear like a rate
increase for those who only need to park for a limited number of hours. As such, this is
not recommended for inclusion as part of the final set of rate model options.
• Evaluate tier-based pricing. The 2023 APMP definition is that if parking occupancy
exceeds certain limits (such as 85% use), the City should consider increasing the parking
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rate incrementally based on the length of time parked (i.e. the second hour price is
more than the first, and so on). There are several reasons as to why this model is
unsuitable for the City:
o This option increases the complexity of on-street parking and is more difficult to
communicate and enforce, which is the opposite of the public’s request for
simplicity.
o The City’s current paid parking technology ecosystem is not able to operate and
enforce this pricing model. While the policy may appear straightforward, the
operational challenges associated with the current multi-vendor mobile
approach in the City limits the ability to implement this successfully.
o The tier-based model places a higher cost on staying longer, which may make
customers feel rushed in order to avoid an escalated rate, leading to an impact
on downtown businesses.
• Evaluate the daily maximum in structures to incentivize longer-term parking.
According to the parking utilization study, only 4% of people park in structures for more
than five hours per parking session, indicating a negligible financial impact in revenue.
It is more important to evaluate the hourly rate of parking structures at this time.
• Evaluate permit parking fees. Based on the information provided by the City, DIXON
considered the rates for commercial loading zone permits, monthly street parking
permits, quarterly parking passes, preferential parking district permits, and daily special
event and construction parking permits. The general recommendation is that the price
of these permits should cover the operating costs to be identified by City staff, including
the potential revenue loss of a parking space that would otherwise be offered for public
paid parking. Two of the permit types (specifically the 10-hour meter permits and the
structure permits) carry sufficient volume, and changes to their rate are evaluated as
part of the three rate model options provided. The remaining commercial permit types
have been evaluated and are generally not recommended for a rate change given the
low quantities sold unless the City determines that the cost of administering the permit
and removing the space temporarily from the public parking supply exceeds the current
price of the permit. The residential (preferential) permit type will be evaluated following
the receipt of further Council direction.
Recommendation
While all three of the options would achieve financial sustainability, DIXON recommends the
City move forward with Option C based on the ability to align with the community’s input, the
City’s goals, and industry best practices most closely. Paid parking rates would be decreased,
offering a more affordable and customer-friendly parking experience. Meanwhile, the
operating times provide sufficient coverage for the City to effectively manage parking demand.
The reduction in permit rates also offers a benefit to employees and can help improve the
distribution of parking demand and maximize convenient parking availability for customers.
Option C best aligns with industry best practices regarding the valuation of different types of
parking spaces.
The financial modeling performed is based on actual data to date. Despite best efforts to
predict how parking behavior may change over time, every element of parking is
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interconnected, and it is difficult to predict the true changes in utilization and compliance over
time. As such, it is critical that the City continues proactive monitoring of any changes in parking
demand and supply as a result of changes, as well as ongoing data collection to identify and
determine any future parking management policy decisions.
Table 6. Recommendation of Rate Model Options Summary
Option A:
Retain Free Hour
Option B:
Lowest Rates
Option C:
Structure Parking
On-street/
Lot Rates
Core: $4.00/h
Outer: $3.00/h
Core: $2.75/h
Outer: $2.25/h
Core: $3.00/h
Outer: $2.50/h
On-street/
Lot Hours
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM – 9 PM
Off-street
Rates
$2.50/h, $10.00 daily
max, first hour free
$2.00/h, $8.00 daily
max
$2.00/h, $8.00 daily
max
Off-street
Hours 7 days per week 7 days per week 7 days per week
Permit Rates 10h meters: $60/mo
Structures: $85/mo
10h meters: $60/mo
Structures: $85/mo
10h meters: $45/mo
Structures: $65/mo
Supply and Demand Assessment
Effective parking management aims to make parking easy, convenient, and accessible. The
parking industry benchmark for when policy changes should be considered is when parking
occupancy exceeds 85%; maintaining an occupancy rate of 85% minimizes congestion and
maximizes utilization of parking assets, but exceeding this rate can make it challenging to find
available parking, contributing to traffic congestion and spillover challenges. Using this
threshold, the City should consider how the parking program may evolve and make data-
driven policy decisions over time.
On average, on-street parking utilization rates in the Downtown Study Area did not exceed the
85% threshold; however, multiple block faces experienced high occupancy at several times of
the day throughout the limited data collection period, including those along Higuera Street,
Morro Street, and Marsh Street.7 To address these areas of higher congestion and to ensure
parking supply and demand is balanced throughout the entire Downtown, the City could plan
to increase future public parking supply near these locations by leveraging public-private
agreements to maximize the use of underutilized private off-street locations. Making
improvements to existing public parking structures such as at the Marsh Street and Morro-Palm
7 There could be additional areas with periods of high demand. The commentary is based on a limited
sample limited sample of two days of public parking occupancy data. See Appendix B for the Parking
Utilization Report.
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structures is a way to encourage more off-street parking utilization and provide relief to some
of the more congested on-street locations.
Figure 6. Private Off-street Locations
Public -Private Agreements
The City should consider pursuing Shared Parking Agreement opportunities to increase
parking supply and better manage parking demand Downtown. Parking utilization data
collected at 97 private off-street lots revealed that several of these locations are underutilized,
even during peak periods such as mealtimes.
Shared parking agreements are an effective way to increase parking supply and manage
parking demand, and they can be designed to be mutually beneficial with agreed upon
parameters and a revenue share. The parking lot owner would authorize the City to implement
and post signage and equipment for time limited, permitted, and/or paid public parking on
the property. This could be during or outside of the owner’s posted business hours. The City
would then have the ability to offer these spaces as public parking or permit spaces, while the
private lot can benefit from the City resources for parking enforcement at their lot locations.
Shared parking agreements are one of the most cost-effective ways of increasing public
parking supply since they optimize the use of existing infrastructure and avoid the costly
investment in building and maintaining new facilities.
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Parking Enterprise Fund
The City’s existing Parking Enterprise Fund allows for revenues generated from the parking
program to be reinvested back into the Fund. To maintain program transparency and ensure
adaptability, the City may consider identifying program revenue and expenses at a higher level
of detail in program reporting to better track the impact of changes to the program. For
example, if the City were to update the price of 10-hour meter permits or structure permits, it
would be beneficial to identify and separate the quantity of revenue that comes from the 10-
hour meter and structure permits from other permit types especially for the purchase periods
before and after the permit rate change.
Program and Operations Recommendations
DIXON was also asked to evaluate recommendations for a variety of other program and
operational elements that are associated with the general parking experience. This section
covers those recommendations.
Demand-based Parking Pricing
The 2023 APMP defines demand-based pricing as increasing rates on blocks (or parking
facilities) with occupancy above a certain threshold (e.g. 85%) and decreasing rates on blocks
(or parking facilities) with occupancy below a certain threshold (e.g. 50%). This is illustrated in
Figure 7.
As identified earlier, the City generally does not experience occupancy in excess of 85% in all
of its zones. The community has expressed support for demand-based parking rates, and this
strategy would be worth considering in the future if there is a high amount of parking demand
clustering in certain areas. It will be important for the City to introduce an ongoing data
collection strategy since there must be enough data year-round to understand parking
occupancy trends. This could mean regularly capturing data at seasonal or monthly intervals at
a variety of times throughout weekdays and weekend days. The City already has License Plate
Recognition (LPR) cameras for enforcement, and these could also be used as a tool for efficient
data collection.
The City is recommended to integrate the 85% threshold into the Municipal Code to enable
flexible and data-driven parking program changes. Ideally, the Parking Program Manager
Figure 7. Demand-based Pricing
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would have the authority to make incremental rate adjustments within an established range of
rates, without needing full Council review each time. The City can then establish a paid parking
rate review cycle to periodically analyze the data collected to identify whether any parking
management actions need to be taken. Sufficient ongoing data collection must be
implemented in order to make this work.
The City should also be careful to clearly define “demand-based” parking, as there have been
several definitions of this strategy expressed in public discussion.
Parking Programs
Business Validation Program
The City has shared that a total of 3250 physical and 793 digital validations have been
redeemed over a one-year period in parking structures, predominantly by hotels. These
validation tickets can currently be purchased by merchants for $200 per bundle of 100
validations, with each validation offering one free hour. If the City proceeds with any of the rate
model options identified in this Report, the City could lower the price of these validation
bundles to $100 for 100 validation tickets so that there is still a discount offered to participating
merchants.
Jury Parking
The City acts upon an agreement with the County whereby free parking is granted for all jurors.
Jurors must receive a validation code that allows them to initiate a free parking session.
Currently, jurors must first park, then receive a 15-minute grace period to walk to jury services
and procure a parking validation. The juror then must walk back to the parking structure to
initiate and validate their parking session. This process is highly inconvenient and the juror’s
parking experience is not customer service friendly.
The City should enable jurors to start a parking session via mobile payment or on a tablet at
the courthouse. In order to increase convenience, the City should also provide jurors with the
ability to register their license plates ahead of their jury duty session and distribute demand by
enabling jurors to park at any parking structure (currently they are asked to park in only one
specific parking structure).
The City should discuss with their paid parking vendor (IPS) about the opportunities to set up
this configuration to improve the parking experience of jurors and streamline parking
operations for courthouse and City staff. This is also discussed in the Technology & Signage
Recommendations section below.
Local Incentives
Currently, locals are able to leverage the first hour free incentive in parking structures that is
offered to visitors and residents alike. However, two of the rate model options presented
suggest removing the first hour free given that it is a costly incentive for the City to provide. As
an alternative to blanket policies like “first hour free,” the City can leverage mobile payment
apps to send push notification and offer parking discount codes to locals. Locals can be
defined as residents who have their vehicle or driver’s license registered to an address in the
City proper as determined and/or approved by Council.
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This opportunity provides a benefit to the community that can be leveraged as an incentive
throughout the year, especially during off-peak periods in order to encourage patronage. For
example, it could make sense to offer locals discounted parking on weekday mornings if
parking demand is generally low. The City may not want to make discount codes valid during
high demand periods such as on Friday evenings or during special events. The benefit of the
code-based approach is that it offers the City the flexibility to apply custom business rules to
maximize promotional capabilities.
Downtown Employee Parking
The City has an opportunity to further support the parking experience of employees who work
in Downtown SLO. It is recommended that the City consider offering lower rates for employee
permits as opposed to developing a new employee permit type. The City should ensure that
the pricing is also affordable for service workers. Given that there are already two applicable
permit types available (the 10-hour meter permit and the structure permit), the City should
focus on increasing their usage through the following steps:
• Offer discounts for employers to manage permits for employees. 45% of
Downtown business owners surveyed offer City parking permits to their employees. To
incentivize employers to provide and manage permits for their employees, the City can
offer employers a bulk discount of 10% on either permit type beginning at a quantity of
five permits purchased.
• Digitize the permit process. Employee permits (as well as all other permit types)
should be digitized to reduce administration costs for the City and improve the
experience of permit buyers. This enables employers to manage permits online,
including the ability to update the license-plates associated with the permits they can
allocate to employees to address turnover and maximize utilization of a fewer number
of permits purchased. In the meantime, while an in-person permit renewal process is
still required, the City can consider offering automated recurring purchases for
employers, like a subscription, which is in effect until the employer cancels. This would
also increase flexibility and reduce hassle for employers.
• Increase promotion of City parking permits towards business owners and
employees. 67% of business owners and 82% of employees surveyed do not have a
City parking permit. Qualitative feedback indicates that a selection of this group was
not aware of or do not see the benefits of procuring a permit. The City should focus on
outreach through Downtown SLO, the Chamber of Commerce, and other business
groups to ensure that employers and employees are aware of the benefits of having a
pass (and any employer bulk purchase discounts).
Additional recommendations to support employee parking include:
• Consider adding employee-designated parking supply. Should parking occupancy
in parking structures routinely exceed 85% occupancy, the City is encouraged to review
off-street parking supply in and around the Downtown SLO and develop shared parking
agreements in order to provide more employee parking options for permit holders.
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• Consider micromobility, micro-transit, and other alternate transportation
programs. Per the 2023 APMP’s recommendation, the City is encouraged to continue
evaluating alternative transportation ideas to support employee parking, such as
shuttles that bring employees from long-term parking lots to their place of business and
incentives to support taking public transportation or a form of micromobility as
opposed to driving a personal vehicle.
Technology & Signage Recommendations
The City currently has one gateless parking structure, two gated parking structures, and one
parking structure under construction (the “Cultural Arts District Parking Structure”) that is
anticipated to be opened in 2026. Users can pay for on- and off-street parking sessions via pay
stations, single-space meters, and multiple mobile payment application options.
Based on the on-site assessment and community feedback, the City can benefit from
improvements to the parking experience, especially at parking structures. There are also
opportunities to improve the efficiency of parking enforcement and operations with
technology, and to improve parking experience with wayfinding and signage improvements.
The following are several recommendations for the City to consider:
• Increase vendor oversight. The City should consider increasing vendor oversight to
better manage expectations for both the City and vendor and establish a collaborative
environment that allows for those expectations and responsibilities to be openly
communicated.
o Introduce performance standards. For new vendor agreements and future
vendor agreement updates, the City should consider introducing performance
standards and carrying out performance reviews in order to ensure
accountability of the vendors and maintain a level of agreement between the
City and vendor.
• Reduce to a single mobile payment app. The City should consider reducing the
mobile payment application options available to the public in order to simplify the paid
parking experience and reduce sign blight and confusion. Consolidating the number
of vendors also improves the administrative experience, reduces operational
inconsistencies between vendors, streamlines the facilitation of promotional campaigns
such as in-app discount codes, and reduces expenses in terms of aggregator
transaction fees. Currently, the City pays an additional transaction fee to the service that
aggregates mobile payment app vendors. The savings would be nominal, estimated at
$20,000 per year; but these are savings, nonetheless and support an improved
customer and operational experience.
o Introduce ability to initiate and extend parking sessions via mobile app. The
City should consider working with the mobile payment vendor to introduce
mobile parking session initiations to accommodate for juror parking at Palm
Street Garage by eliminating the need for jurors to return to the parking
structure once they check-in at the courthouse in order to start their parking
session. Based on the final approved policies, the City should also consider
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introducing the ability to extend parking sessions via mobile app for a more
seamless and convenient parking experience.
• Implement a license plate-based enforcement model in the downtown. License
plate-based enforcement means that usage of parking spaces in accordance with
posted parking policies—such as paid parking, permit parking, and time limits—is
monitored and enforced based on license plate numbers. The usage of License Plate
Recognition (LPR) systems to enforce parking is more efficient and replaces antiquated
methods like tire chalking and the display of paper receipts or permits on the
dashboard. Drivers would instead have permits or paid parking sessions associated
with their license plate number and enforcement can utilize LPR to verify that the vehicle
has a valid parking session. The City already has two vehicles equipped with LPR
technology and enables drivers to pay by license plate at pay stations and on mobile
payment apps. The City should set regular established routes for LPR-equipped
vehicles to drive around Downtown SLO and leverage the use of LPR to identify parking
violations and collect data.
• Enable the use of vehicle-mounted mobile License Plate Recognition (LPR)
systems for data collection. The City’s existing vehicle-mounted LPR technology is
integrated with paid parking and citation management technologies to monitor for
compliance based on license plate numbers, and it automates several manual
enforcement processes to maximize efficiency and coverage. In addition to being a
parking compliance tool, LPR cameras can collect data for parking utilization analysis,
which will enable the City to determine various metrics such as the level of parking
congestion, turnover rates, and repeat parking trends to support data-driven parking
policies and regulations in the future. To date, the City has typically relied on parking
studies conducted by consultants, which show snapshots in time. It is critical to continue
ongoing data collection so that occupancy and turnover analysis can be based on a
larger data set and be used to identify seasonal and time of day trends.
• Install lane control and speed impediments to slow traffic for LPR optimization and
safety in the parking structures. The City should consider implementing lane control
and speed impediment measures to ensure LPR is able to properly record plate reads
upon vehicle entry in the parking structures, as well as to improve safety for pedestrians
and other vehicles.
• Increase safety in parking structures to increase utilization. The City should consider
making improvements to the parking structures including lighting, paint, and security
enhancements in order to create a more welcoming environment for drivers and
encourage the community and visitors to park in the parking structures.
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• Improve signage and wayfinding at parking structures. The City should consider
improving the signage and wayfinding at the parking structures to improve the parking
experience and eliminate confusion for drivers. The City can leverage digital signage
on the kiosks themselves to message parking rules to drivers when they are first
initiating their parking session, such as the current free parking initiatives. Considering
the gateless solution is not as common and may not be as familiar for drivers, the City
should communicate the expectations to drivers as clearly and directly as possible such
as through instructional signage at the ingress points to communicate the “park, pay,
play” concept to visitors, such as the example in Figure 8.
o Assess the installation of wayfinding signage. The City should adjust the
location and angle of digital wayfinding signs, especially to parking structures,
so that they are visible from the perspective of drivers on the street.
o Leverage Free -Flow fixed LPR camera system to populate digital signs with
occupancy at parking structures. The City should consider leveraging the
Free -Flow fixed LPR camera system at the City-owned parking structures to
populate the existing digital signs with occupancy counts. Digital occupancy
signs display up-to-date information can improve the parking experience for
Downtown visitors by enabling them to make simple and straightforward
parking decisions and can also help increase utilization at the parking structures.
Additionally, having digital signs at the parking structures can create a more
cohesive, dynamic parking ecosystem that can improve circulation in the
Downtown area and eliminate the need to circle the blocks in search of an
available parking space. The City already has digital signage infrastructure
installed and needs to consult a vendor to identify what fixes are needed to
activate them again, even if it is to simply demonstrate whether the parking
structure is full or available.
• Conduct a regular audit of parking signage. There are inconsistencies in the signage
currently installed in Downtown SLO. The City is currently updating a set of signage to
increase legibility and size. Once this project is complete, the City should implement a
practice to regularly audit signage for consistency and maintenance. Additionally, the
City should consider the following parking signage improvements:
o Design a parking brand. A consistent brand and design for signage can help
enhance the City’s identity through a cohesive visual aesthetic, as well as
Figure 8. Sample Pay on Entry Sign
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increase recognition of parking signs. The City could consider creating a parking
logo specific to SLO that can be used on signage. The City should ensure that
signage colors, sizes, and symbols are consistent and easy to recognize.
o Emphasize visibility of time limits on signage. The City should emphasize any
time limits applied to on-street parking spaces onto signage, given that it is
currently unclear to the general public when there is a time limit applied to a
space.
• Maintain continuity in paid parking infrastructure placement. To promote a parking
experience that is easy to navigate, the City should ensure that placement of on-street
pay stations are recognizable and predictable in all parts of Downtown. For example,
pay stations could be located at the corners of every block, or perhaps mid-block.
Continuity in pay station placement helps drivers easily identify locations paid parking
applies, and ensure they have sufficient time to make their payments within the grace
period.
• Leverage single-space meters at loading zones and short-term spaces. The City
should consider shifting the remaining single-space meters to yellow-domed meters in
loading zones and short-term spaces that convert to paid parking after loading zone
times. This can help to simplify expectations for drivers and allow the parking space
types to be easily distinguishable. To further improve the parking experience, the City
should place individual signs on the meters detailing the loading zone parking rules,
which would allow for the excess signs to be taken down from the curb and declutter
the instructions on the digital displays of pay stations.
o Install pay stations at the 10-hour spaces. To replace the single-space meters
at the 10-hour on-street spaces, the City should install pay stations to maintain
continuity for the paid parking experience and further emphasize that pay
stations are for long-term parking, while single-space meters are for loading
zones and short-term parking only. Installing pay stations to maintain 10-hour
on-street spaces will also introduce cost savings on single-space meter fees
when spaces are occupied by permitted vehicles.
Other Considerations
• Improve communication of parking policies. Community feedback has highlighted
confusion on existing incentives and updated operational hours. The City should focus
on improving communication of parking policies and any associated incentives. The
associated confusion with the changed policies may have led to reduced patronage of
Downtown SLO.
• Develop and execute a comprehensive communication plan. Given the high
frequency of parking program changes that have occurred in the City over the past year,
the City should plan on a comprehensive public relations and communication strategy
focused on both in-person and digital outreach to inform the public on what the policies
are. The City should consider executing outreach immediately to address the current
frustrations of residents and visitors to Downtown SLO, and once again when a new
parking rate model has been confirmed and put into effect. This plan should activate
ambassadors in the business community, the City’s own Parking Ambassadors,
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temporary signage in and around paid parking zones, and outreach to out-of-town
communities who may otherwise frequently visit Downtown SLO. This plan should be
adapted and repeated to inform the public of future changes. Specifically, elements of
this communication plan can be tied to incentives that can be implemented through a
mobile payment parking app:
o Promotions, such as discounts and deals for the upfront purchase of a bundle of
paid parking hours.
o Sign-up opportunities, such as a number of free hours offered for those who sign
up for a mobile payment app.
o Incentives, such as discount codes for certain user groups.
o Community events, with booths where the public can participate in games to win
a certain number of free hours.
• Continue collaborating with the Downtown SLO Parking Taskforce. The City should
continue collaborating with the Downtown SLO Parking Taskforce beyond receiving
Council direction to ensure that the implementation of parking program changes is
aligned with and supported by the local business community. At a minimum, the
Downtown SLO Parking Taskforce should be engaged for a one-year period following
the City’s decision on which option to pursue. In order to support the downtown
business community, it is important to prioritize communication and transparency in the
implementation and decision-making of initiatives.
• Develop an event parking plan. Downtown SLO features a number of regular events,
such as the Farmer’s Market every Thursday. Event parking management is a unique
element that is focused on creating a game plan for agencies to tackle a large, predicted
influx in parking demand. This would call for increased staffing resources, temporary
signage, and additional oversight in order to ensure a smooth experience during
events. The City should develop an event parking plan to address parking demand
fluctuations like for the Farmer’s Market or other local events.
• Transition parking enforcement staff into Parking Ambassadors. For the regular
operation of the parking program, and especially during times of parking program
changes, it is important that an emphasis is placed on customer service (with a focus on
education and warning notices). Currently, the City has parking enforcement staff and
Parking Ambassador roles. The City should ensure that parking enforcement staff also
receive ambassadorship and customer service training as all parking staff should
embody Parking Ambassador responsibilities. Parking enforcement and existing
Parking Ambassador staff are encouraged to walk the streets and structures of
Downtown SLO and provide friendly, in-person support and information to those who
are unsure of how to navigate the paid parking ecosystem. This encourages increased
compliance and helps shift the perception that staff are seeking compliance with
approved policies.
• Audit loading zones. During DIXON’s parking inventory update and business owner
feedback, it was identified that there appears to be a significant number of loading
zones in the 700 block of Downtown SLO. The City is advised to perform an audit,
evaluate the need for loading zones in that location, and assess whether there are
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spaces that could be converted to paid parking spaces to support the public parking
supply.
• Consider potential impacts of parking rate changes on residents. Surrounding
neighborhoods may need to be prepped for residential (or preferential) permits. The
City should be prepared to identify spillover effects and the municipal code should be
prepared to present the opportunity for residents to apply for a residential permit zone
in the future.
• Consider the impact of parking minimums. The reduction and elimination of parking
minimums has become a statewide (and nationwide) trend in response to housing
affordability challenges and a push for more transit-oriented development. Unless car
ownership rates actually decline in SLO, certain neighborhoods may experience an
increase in demand for on-street public parking if new developments are built without
sufficient parking supply to meet the true demand. In line with the previous
recommendation, the City should closely monitor the impact of reduced parking
requirements, especially through ongoing data collection efforts, to evaluate parking
demand especially around proposed development sites and in residential areas. There
could be a need to introduce new parking and mobility programs in response to
evolving needs.
Next Steps
It is highly recommended that the City considers making incremental changes to the paid
parking program moving forward. The community has shared that the multitude of program
changes occurring in a short period of time in 2023 has caused negative impacts. The method
of how changes are implemented is just as important as the changes themselves.
This Report has covered potential changes in parking rates, operating hours, free time,
incentives, permit program fees, different rate models, technology changes, and other
program changes. Changes in each element can lead to changes in parking behavior. As such,
the City should consider adjusting a minimal number of elements each time, then focus on
collecting data to evaluate the impacts before identifying the next set of changes. This is an
ideal process to gradually rebuild SLO’s paid parking program into one that fits the
community’s needs while being financially sustainable.
The City should collaborate with the Downtown SLO Parking Taskforce to prioritize changes
and ensure transparency of the program. For example, if parking rates are adjusted following
the City’s receipt of this Report, a discussion on paid parking operating hours could be the next
set of decision points once the effects of parking rate changes have settled and there is new
data on turnover and occupancy. A further factor to consider could be how the City can offer
additional incentives for residents, employees, and business owners. The City and the
Downtown SLO Parking Taskforce should consider the community’s priorities, as ranked in
survey responses:
1. Cost: finding a space that is priced at a low rate
2. Speed: quickly finding an available parking space
3. Convenience: finding a space right next to the destination
4. Experience: finding a space in a clean and well-lit environment
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The City and the Downtown SLO Parking Taskforce are encouraged to re-evaluate the program
on an annual basis to evaluate the data collected, understand the current parking experience,
and identify how to proceed with addressing the next set of improvements.
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Appendix A - Community Outreach Summary
The City of San Luis Obispo (City) conducted an online survey and held two community
meetings during February and March 2024 to solicit feedback from the public regarding their
parking experience in Downtown San Luis Obispo (Downtown SLO). Additionally, DIXON
monitored email and social media feedback from the community during the same timeframe.
The following subsections describe the results and key themes from community outreach
efforts.
Summary of Key Themes
Below is a summary of key themes from a combination of insights from the survey, social media
feedback, community meeting feedback, and email feedback.
• Technology issues and general confusion regarding how to pay for parking (pay
stations, multi-vendor mobile payment apps, rate structures, signage)
• Increase safety and user experience in garages, especially in gateless structure
• Lowering rates and retaining free hours/days
• Concerns about transparency (2023 changes happened too quickly)
• Concerns about negative impact to locals, visitors, businesses
• Decrease evening paid parking operating hours
Survey Results
The online survey hosted on Open City Hall was open for 31 days starting on February 6, 2024,
and closing on March 8, 2024. A total of 2,784 responses were received from SLO’s residents,
visitors, business owners, and employees regarding their parking experience in Downtown
SLO. Survey respondents were divided into resident or visitor at the beginning of the survey
and were later given the opportunity to identify as a business owner, employee, or N/A to
answer additional questions. Due to the survey structure, it appears as if the total number of
responses across the four audience groups appears to exceed the total number of survey
respondents; however, a respondent can be both a resident and a business owner, for example.
The table below shows the breakdown of the number of responses by audience group.
Audience Group Number of Responses
Residents 1,715
Visitors 1,069
Business Owners 104
Employees 235
Key findings from the survey for each audience group are summarized below.
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Residents – 1,715 respondents
Of the 2,784 respondents, 1,715 were residents of SLO who offered input on their parking
experience in Downtown:
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Visitors – 1,069 respondents
Of the 2,784 respondents, 1,069 offered input on their experiences acting as a visitor or patron
in Downtown SLO:
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Business Owners – 104 respondents
Of the 2,784 respondents, 104 were business owners in Downtown SLO who offered the
following data:
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Employees – 235 respondents
Of the 2,784 respondents, 235 were employees of Downtown SLO who offered the following
data:
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Community Meetings
Four community meetings were held, with two being held virtually via Zoom, and the others
being held in-person. The following table summarizes the details of each community meeting:
Name Date(s) Setting Number of Attendees*
Community Meeting
Round 1
February 13, 2024 In-Person 35
February 14, 2024 Virtual 20
Community Meeting
Round 2
April 4, 2024 In-Person 22
April 5, 2024 Virtual 15
Community Meeting
Round 3
May 2, 2024 Virtual 12
*Including DIXON and/or City staff.
Overview of Community Meeting Rounds
• The first round (comprised of one in-person and one virtual meeting) focused on
identifying and receiving feedback from the community on their parking experiences.
• The second round (comprised of one in-person and one virtual meeting) focused on
sharing preliminary findings from community outreach, the parking utilization study,
and initial financial modeling.
• The third round (comprised of one virtual meeting) focused on sharing the final parking
rate model options for community feedback.
Key Themes
Community Meeting Round 1
• Paid Parking Rates: Current rates are too high, were changed too quickly, and are
negatively impacting businesses and visitors. Rates should be more affordable,
including discounted rates for certain groups, free parking hours/days, and longer time
limits. Some community members have recommended dynamic pricing structures.
• Technology Issues and User Experience: Confusion and frustration with the current
parking system, including difficulties with payment methods, time limits, use of the
gateless structure, mobile apps, and signage. It should be simple and consistent in how
one pays for parking. Residents are asking for immediate action to improve the gateless
structure parking experience.
• Transparency: Desire for more transparency and communication from the city
regarding parking policies and changes.
• Prioritizing Locals: Advocacy for the prioritization of local residents and businesses in
parking policies over tourism-related interests, such as through resident benefit
programs.
Community Meeting Round 2
• Financial Modeling: Emphasis on lowering rates as a top priority for community
members. Confusion about the structure of the parking enterprise fund.
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• Technology Issues and User Experience: Desire for improvements to wayfinding and
signage at parking structures, and more clear communication of existing rate structures
to eliminate confusion.
• Welcoming back locals: Desire for programs and marketing efforts to welcome locals
back to Downtown San Luis Obispo and rebuild trust with the community, such as a
marketing campaign through promotional codes on the mobile payment apps.
Community Meeting Round 3
• Financial Modeling: Emphasis on lowering rates as a top priority for community
members. Interest in convenient, accessible short-term parking for pick-up/drop-off
and running errands. Interest in ensuring that parking program revenue is minimal in
order to achieve the lowest rates possible.
• Parking Fund: Interest in exploring potential alternative funding sources for the Parking
Fund.
Email and Social Media Feedback
DIXON received email commentary and monitored SLO’s social media sites (Instagram,
Facebook, and Twitter) for feedback from February 5th to March 11th. Approximately 80 emails
and 60 social media comments were received. The following key themes and
recommendations were identified:
• Paid Parking Rates and Operations: Community members recommended changing
the paid parking hours to end at 6PM instead of 9PM, keeping the first hour free to
encourage business activity, and free parking on Sundays. There was also interest in
implementing demand-driven parking rates. General concerns around the
inconsistency of pricing structures between on-street and off-street were mentioned,
and community members recommended adding more signage to make the pricing
structures easier to understand. Some community members recommended a
discounted parking rate for residents.
• Technology Issues and User Experience: Community members expressed difficulty
with using the kiosks and trying to estimate time needed to park prior. Inability to add
time to parking session via mobile app was also mentioned.
• Safety: Community members expressed that cleanliness and safety should be a priority,
and that some parking structures feel unsafe due to poor lighting. Community members
also expressed feeling unsafe when walking from a parking space to their destination.
• Accessibility: Several community members expressed a desire for more
loading/unloading spaces around downtown, as well as more accessible parking
spaces. Community members also expressed a desire for better transit options,
including more frequent bus routes downtown to encourage less vehicle use.
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Appendix B – Downtown SLO Parking Utilization
Report
Methodology
Dixon Resources Unlimited (DIXON) collected parking data on behalf of the City of San Luis
Obispo (City) as part of the Parking Rate Study (Study) to demonstrate the current parking
conditions for 161 on-street block faces, 97 private off-street lots, 5 public off-street lots, and 3
public off-street structures in Downtown San Luis Obispo (SLO).
Data collection for the on-street and public off-street parking locations 8 occurred on one mid-
(Wednesday 2/28/2024), and one weekend day (Saturday 3/2/2024). Data collection was
conducted using a mobile license plate recognition (LPR) device9 that was operated by DIXON
field staff at the on-street and public off-street locations within the study areas at 9am, 11am,
1pm, 3pm, 5pm, and 7pm for each day of collection along a consistent driving route. Additional
8 Parking occupancy data could not be collected at the public parking lot on the corner of Palm St &
Nipomo St due to construction for the Cultural Arts District Parking Structure.
9 The results for the multi-level parking structures are reported for each structure as a whole, rather than
by level. This is because the equipment used for data collection is GPS-based, which cannot distinguish
between levels of the structure.
Study Area Map
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data collection using a drone was done on one mid-weekday (Wednesday 2/28/2024) and one
weekend day (Saturday 3/9/2024 10) for private off-street locations at the same time intervals.
The LPR data and drone footage were used to calculate the average parking occupancy and
turnover (length of stay) rates throughout the study area. The data analysis process
automatically anonymizes all license plate numbers by hashing the data. Real license plate
numbers were not stored or retained for the Study. The parking occupancy rate refers to the
percentage of parking spaces that have parked cars. Turnover values are based on how long
vehicles stayed between the first collection time and the last collection time each day. Results
were calculated for each block face (individual side of the street bordered by intersections) and
each parking facility for this assessment.
Key Considerations
The parking industry considers the ideal target parking occupancy rate to be 85 percent,
meaning that there are approximately one or two parking spaces available per block face. This
occupancy rate minimizes congestion and maximizes utilization of parking assets. Areas that
regularly exceed 85 percent occupancy are considered overly congested. Likewise, areas that
regularly are well below 85 percent are considered underutilized. The goal is to seek a
balanced parking system that remains at or near 85 percent occupancy during most times on
average, knowing that there will realistically be some exceptional or outlier times.
When parking durations are long, this means that the turnover of parking spaces is low.
Conversely, when durations are short, this means that turnover is high. High turnover maximizes
the number of drivers that can utilize parking assets, which is especially important in
commercial areas due to proximity to goods and services and the need for customer access.
The findings in this Parking Utilization Report are based on a limited sampling of data, and it is
recommended that the City collects data on a more regular basis to have a better
understanding of how parking utilization varies throughout the year in Downtown SLO.
Key Takeaways
• The average parking occupancy rates for each zone did not exceed 85%.
• The lowest average occupancy rates observed for on-street (42%), public off-street
(12%), and private off-street (29%) were all observed on a Saturday at 9AM.
• The highest average occupancy rates observed for on-street (66%) and private off-street
(61%) were both observed on a Wednesday at 11AM.
• The highest average occupancy rate for public off-street (41%) was observed on a
Saturday at 1PM.
• Several on-street block faces exceeded a peak occupancy of 85% at various times of
the day, with 80 out of 161 on-street block faces recording a peak occupancy of 100%
during at least one data collection time.
• A few private off-street lots exceeded a peak occupancy of 85% at various times of the
day, with 12 out of 97 private lots recording a peak occupancy of 100% during at least
10 Drone collection was done on a different Saturday due to weather conditions.
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one data collection time. However, no public off-street locations exceeded 85% at any
point observed.
• The daily average on-street occupancy rate was higher on a weekday (60%) compared
to a weekend day (56%).
• Average public off-street occupancy varied throughout the day, ranging between 23%
to 36% during the weekday and 12% to 41% on the weekend.
• Average private off-street occupancy also varied throughout the day, ranging between
44% to 61% during the weekday and 28% to 48% on the weekend.
• Public parking turnover is relatively high. Most vehicles were observed for just a single
round of data collection, and therefore were parked between 0-2 hours at the on-street
and public off-street locations. The percentage of vehicles that stayed for 0-2 hours for
each location were:
o On-street (Weekday): 73%
o On-street (Weekend): 71%
o Public Off-street (Weekday): 69%
o Public Off-street (Weekend): 70%
Private parking turnover is lower. Most vehicles were observed to have stayed for two data
collection rounds in a row, and therefore were parked between 2-4 hours at private off-street
locations. The percentage of vehicles that stayed for 2-4 hours were:
o Private Off-street (Weekday): 29%
o Private Off-street (Weekend): 31%
Parking Utilization Study Findings
The following figures display total average parking occupancy and turnover results for the
study area.
Occupancy
On-Street
Average On-Street Occupancy
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Weekday Average On-Street Occupancy Heatmap
Average Total Occupancy = 60%
Weekend Average On-Street Occupancy Heatmap
Average Total Occupancy = 56%
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Public Off-Street
Average Public Off-Street Occupancy
Weekday Average Public Off-Street Occupancy Heatmap
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Private Off-Street
Private off-street occupancy was analyzed by evaluating the drone footage and counting the
number of parked vehicles observed in each lot.
Weekend Average Public Off-Street Occupancy Heatmap
Average Private Off-Street Occupancy
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Weekday Average Private Off-Street Occupancy Heatmap
Weekend Average Private Off-Street Occupancy Heatmap
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Turnover
The average turnover percentages over the course of each day are shown based on
observations during data collection. The tables and stacked bar charts show a percentage
breakdown of the number of cars that were observed either between 0-2 hours, 2-4 hours, 4-6
hours, 6-8 hours, or more than 8 hours based on the data collection rounds. The heat maps
show the average daily length of stay per block face and parking lot.
On-Street
Average On-Street Turnover
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Weekday Average On-Street Turnover Heatmap
Weekend Average On-Street Turnover Heatmap
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Public Off-Street
Average Public Off-Street Turnover
Weekday Average Public Off-Street Turnover Heatmap
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Private Off-Street
Private off-street turnover was analyzed by evaluating the drone footage and comparing the
observed vehicles between the collection times per lot.
Weekend Average Public Off-Street Turnover Heatmap
Average Private Off-Street Turnover
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Weekday Average Private Off-Street Turnover Heatmap
Weekend Average Private Off-Street Turnover Heatmap
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City of San Luis Obispo
Parking Rate Study
Financial Models
May 6, 2024
i
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Existing Rate Zones
•All of the following financial scenarios
are projected figures.
•All proposed changes in the financial
modeling scenarios assume changes
taking effect July 1, 2024.
•Year 1 refers to FY 24-25 (July 1, 2024,
to June 30, 2025).
•Models are based on estimated
compliance of 60%. Base model
occupancy rates draw from the 2-days
of data collected in February/March
2024. Further ongoing data collection
is required to increase accuracy for
future modeling purposes.
•Definitions refer to Access and
Parking Management Plan (APMP) last
updated 2022.
•Recommendations are based on
existing conditions and City-provided
inventory data.
ii
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Scenarios to Evaluate
Financial Modeling Scenarios
1. Evaluate reduction of operating hours by eliminating on-street paid parking.
2. Evaluate reduction of operating hours by eliminating paid parking on-street Sundays 1PM – 9PM.
3. Evaluate expanding the paid on-street parking hours on Sunday.
4. Evaluate deferring future approved rate increases. –This scenario is no longer standing and is skipped.
5. Evaluate rates specifically for the new Cultural Arts District Parking Structure (FY 25-26, planned launch early 2026).
6. Evaluate block time payments.
7. Evaluate tier-based parking pricing.
8. Evaluate maximum daily max in the structures to incentivize longer term parking.
9. Evaluate permit parking fees.
Program and Operations Options
10. Evaluate demand-based parking pricing.
11. Evaluate the current validation program and possible enhancements.
12. Consider programs to benefit the local community/local-specific incentives.
13. Consider programs to benefit downtown employees.
14. Evaluate the costs and benefits of user experience enhancement of reduction in the number of supported mobile apps.
15. Evaluate the costs and benefits of user experience enhancement of signage, customer service, and communications.
16. Other adjustments related to vendors and technology.
17. Other adjustments related to parking structures.
iii
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1a. Evaluate reduction of operating hours by eliminating on-street paid parking from 6PM –
9PM.
Financial Modeling Scenarios
Proposed ChangeCurrent Conditions
Mon-Sat paid parking hours
decrease by 3 hours 9 AM – 6 PM
Sunday paid parking hours decrease by 3
hours 1 PM – 6 PM
Mon-Sat paid parking hours are 9 AM – 9 PM
Sunday paid parking hours are 1 PM – 9 PM
Comments:
•Community feedback indicates reducing paid parking hours as the top priority.
•Decline in Projected Revenue of ~$1.60 million.iv
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1b. Evaluate reduction of operating hours by eliminating on-street paid parking from 7PM –
9PM.
Financial Modeling Scenarios
Comments:
•Community feedback indicates reducing paid parking hours as the top priority.
•Decline in Projected Revenue of ~$1.07 million.
Proposed ChangeCurrent Conditions
Mon-Sat paid parking hours
decrease by 2 hours 9 AM – 7 PM
Sunday paid parking hours decrease by 2
hours 1 PM – 7 PM
Mon-Sat paid parking hours are 9 AM – 9 PM
Sunday paid parking hours are 1 PM – 9 PM
v
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2. Evaluate reduction of operating hours by eliminating paid parking on-street Sundays
1PM – 9PM.
Financial Modeling Scenarios
Proposed ChangeCurrent Conditions
Free parking on Sundays
paid parking is Mon-Sat only
Sunday paid parking hours are 1PM – 9PM
Comments:
•Community feedback indicates bringing back free parking on Sundays as top priority.
•Decline in Projected Revenue of ~$619.8k.
vi
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3. Evaluate expanding the paid on-street parking hours on Sunday.
Financial Modeling Scenarios
Comments:
•Community feedback is not supportive of expanding paid parking hours on Sundays.
•Increase in Projected Revenue of ~$309.9k.
Proposed ChangeCurrent Conditions
Sunday paid parking hours increase by 4
hours to match Mon-Sat hours 9 AM – 9 PM
Sunday paid parking hours are 1PM – 9PM
vii
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5. Evaluate rates specifically for the new Cultural Arts District Parking Structure (FY 25-26,
planned launch early 2026).
Financial Modeling Scenarios
Proposed ChangeCurrent Conditions
The structure is introduced with the same rate
as that of other structures ($3/h, $12 max).
There are no rates for this parking structure
today.
Comments:
•To increase consistency across the program and reduce confusion, all structures should have the
same rate model.
•Community feedback indicates a clear pricing structure as top priority.
•Increase in Projected Revenue of ~$402.9k.
Fiscal Year 25-26 Fiscal Year 25-26
viii
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6. Evaluate block time payments.
Definition: For parking structures, this pricing model introduces an early-bird entry rate, an all-day rate, and an evening rate.
Financial Modeling Scenarios
Proposed ChangeCurrent Conditions
Structure rates become:
•Early bird: $8 for entry between 5 AM - 8 AM
•All day: $12 entry between 8 AM – 6 PM
•Evening: $7 entry from 6 PM – 12 AM
•Overnight permit required from 12 AM – 5 AM
Structure rates are currently $3/h, $12 max
Comments:
•Community feedback indicates a clear pricing structure as top priority. This model removes fear of
exceeding time limits. However, clear communication is avoid framing of a rate increase.
•Community feedback indicates there are insufficient long-term parking options.
•Increase in Projected Revenue of ~$1.58 million.ix
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7. Evaluate tier-based parking pricing.
APMP Definition: If parking occupancy exceeds certain limits (such as 85% use), consider increasing the parking rate
incrementally based on the length of time parked (i.e. the second hour price is more than the first, and so on).
Financial Modeling Scenarios
Comments:
•Community feedback indicates a clear pricing structure as top priority.
•Parkers typically stay for 2-3 hours.
•Decrease in Projected revenue of ~$1.28 million.
Proposed ChangeCurrent Conditions
On-street paid parking features tiered model:
*all other conditions, including operating hours, stay constant.
On-street paid parking is an hourly rate
model ($3-4/hour)
Outer
•Tier 1: $2.50/h (Hours 1 and 2)
•Tier 2: $3.75/h (Hour 3)
•Tier 3: $5.75/h (Hours 4+)
Core
•Tier 1: $3/h (Hours 1 and 2)
•Tier 2: $4.50/h (Hour 3)
•Tier 3: $6.75/h (Hours 4+)
Challenging to implement.
x
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8. Evaluate maximum daily max in the structures to incentivize longer term parking.
Financial Modeling Scenarios
Proposed ChangeCurrent Conditions
Lower daily max to $10
(assuming new hourly rate of $2/h)
Daily max is $12
(when hourly rate is $3/h)
Comments:
•Community feedback indicates finding a parking space at a low rate as the top priority.
•Lowering daily max increases opportunity of usage.
4% of people park in structure for more than 5
hours, indicating a negligible financial impact
in revenue but high opportunity to publish
lower prices.
xi
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9. Evaluate permit parking fees.
Financial Modeling Scenarios
Proposed ChangeCurrent Conditions
•Quarterly 10h Meter Permit: $135 ($45/mo)
•Quarterly Structure Permit: $195 ($65/mo)
•Quarterly Overnight Permit: $375
•Commercial Loading Zone Permits: $60
•Preferential Parking Permits: $20/year
•Monthly 10h Meter Permit: $60
•Quarterly Structure Permit: $255 ($85/mo)
•Quarterly Overnight Permit: $375 ($125/mo)
•Commercial Loading Zone Permits: $60
•Preferential Parking Permits ($20/year)
Comments:
•Digitize the permit management process and remove manual hang tags.
•Convert all permits to multiple options for renewal process (69% employees surveyed would prefer a quarterly option)
•Decrease in Projected Permit Revenue by ~$197k, however increased utilization can come with better outreach. 81.5% of
surveyed employees don’t have a permit and only 40% of permit users find the process easy.
Year 1 Projection Year 1 Projection
xii
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10. Evaluate demand-based parking pricing.
APMP Definition: Increase rates on blocks (or parking facilities) with occupancy above a certain
threshold (e.g. 85%) and decrease rates on blocks (or parking facilities) with occupancy below a
certain threshold (e.g. 50%).
Program and Operations Options
Proposed ChangeCurrent Conditions
Rates are reviewed every year, and changes are
initiated based on the 85% threshold.
Rates are reviewed and changed upon Council
direction.
Comments:
•Implement ongoing LPR-based data collection.
•Integrate the 85% threshold into Municipal Code.
•Identify a peak and non-peak rate that is reviewed
annually. However, other agencies have demonstrated
that sufficient ongoing data collection must be
implemented to make this work.
•Community feedback indicates support for demand-
driven parking rates.Example of Demand-based Pricing
Requires ongoing data
collection to implement.
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11. Evaluate the current validation program and possible enhancements.
Program and Operations Options
Proposed ChangeCurrent Conditions
If the City pursues the DIXON recommendation of
lowering the off-street rate:
Merchants can purchase 100 validation tickets for
$100. Each validation offers 1h free.
Merchants can purchase 100 validation tickets
for $200. Each validation offers 1h free.
Comments:
•3250 physical and 793 digital validations redeemed per year in garages. Program is primarily
utilized by hotels.
•Improve the jury parking and validation process
•Ability to start parking session via mobile pay or on a tablet at the Courthouse.
•Ability to register plate ahead of time, enable parking at other garages.
xiv
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12. Consider programs to benefit the local community/local-specific incentives.
Program and Operations Options
Comments:
•Eliminate 1-hour free from an operational standpoint. Strategy is to lower rates overall and offer
other locals benefits instead.
•Focus on pushing benefits (e.g., discount codes) to locals as opposed to guaranteeing a
standard number of free hours to locals.
•Discourages those who re-enter to leverage free time.
•Identify definition of “local” – focus on people who live in the City proper.
•Community has called for 2-3 free hours in light of rate increases. This is not sustainable.
Removing free hour in
structures increases
projected revenue by
$2.3 million.
With free hour Without free hour
xv
Page 91 of 127
13. Consider programs to benefit downtown employees.
Comments:
•Introduce Employee Parking Permits Program
•Enable employers to manage permits for employees
•Offer discounted permit rates for Downtown business owners to purchase permits in bulk
•Continue micromobility and micro-transit evaluations
•Encourage usage of low-income permit options.
Program and Operations Options
xvi
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14. Evaluate the costs and benefits of user experience enhancement of reduction in the
number of supported mobile apps.
Program and Operations Options
Proposed ChangeCurrent Conditions
City pays transaction fees to the mobile
payment vendor only.
City pays $0.05/transaction to CurbTrac,
alongside transaction fees to the mobile
payment vendors.
Comments:
•Improves administrative experience by reducing the number of vendors, reducing
inconsistencies between vendors, reducing expenses by an estimate of ~$20,000/year.
•Improves customer experience by reducing confusion and sign blight.
xvii
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15. Evaluate the costs and benefits of user experience enhancement of signage, customer
service, and communications.
Comments:
•Fix existing digital signage infrastructure such that it is functional and offers occupancy counts.
•Adjust the location of digital wayfinding signs to parking structures so that they are visible from
the view of drivers on the street. Improve wayfinding to pay stations.
•Introduce a uniform signage design.
•Develop clear in-person and digital communication plan for informing the public of future
changes.
•Ensure both Parking Enforcement and Parking Ambassador roles are focused on supporting
education, compliance, and customer experience.
•Emphasize time limits on on-street parking signage.
Program and Operations Options
xviii
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16. Other adjustments related to vendors and technology.
Comments:
•Improve pay station user experience.
•Install pay stations at 10h spaces.
•Shift remaining single-spaced meters to yellow domed meters in loading spaces that convert to
paid parking after loading zone times.
•Continuity in infrastructure placement.
Program and Operations Options
xix
Page 95 of 127
17. Other adjustments related to parking structures.
Comments:
•Improve instructional signage at the gateless garage that helps drivers understand the “park, pay,
play” concept (see banner to the right)
•Install lane control/speed impediment to slow traffic for LPR optimization and safety
•Increase safety through lighting improvements and paint opportunities, security presence
Program and Operations Options
Sample pay on arrival signage
xx
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O ______
ORDINANCE NO. ____ (2024 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 10, CHAPTER 52 (PARKING
METERS), OF THE SAN LUIS OBISPO MUNICIPAL CODE MODIFYING
HOURLY PARKING RATES ON-STREET AND IN SURFACE PARKING
LOTS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states
that the City parking programs shall be financially self-supporting; and
WHEREAS, parking rates are used as a tool to effectively manage parking
demand for both on-street and off-street public parking areas; and
WHEREAS, on June 21, 2022, the City Council adopted Ordinance No. 1714
(2022 Series) approving multiple hourly rate increases for the on-street areas and
municipal parking lots effective January 2, 2023, July 1, 2023, and July 1, 2025 which
were deemed necessary to offset the construction costs and corresponding debt service
repayment for the new Cultural Arts District public parking structure and to maintain a
fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a
Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s
Parking program rates and fees and to develop parking priorities and recommendations
to help address community and downtown parking concerns; and
WHEREAS, on November 7, 2023, the City Council authorized release of a
Request for Proposals (RFP) to conduct a parking rate study and directed staff to return
with an Ordinance rescinding the on-street parking rate increase originally planned for
July 1, 2025; and
WHEREAS, financial modeling completed through the parking rate study
demonstrates that the previously approved rate increase planned for July 1, 2025 , is not
necessary to maintain a fiscally solvent Parking Fund; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council of City Hall, 990 Palm Street, San Luis Obispo, California, on May
14, 2024, to consider parking rate and fee options to address the public’s concerns while
also maintaining a fiscally solvent Parking Fund including recommended changes to Title
10, Chapter 52 of the Municipal Code.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Section 10.52.010 (Paid Parking zone - Rates) of the San Luis
Obispo Municipal Code is hereby amended as follows:
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Ordinance No. _____ (2024 Series) Page 2
O ______
10.52.010 Paid Parking zone—Rates.
A. Within the area enclosed by a solid line on the parking rate zone map
(Exhibit A) the parking of vehicles on streets or in municipal parking lot s
may be controlled and regulated with the aid of parking meters as defined
in section 10.04.110 and/or parking payment centers as defined in section
10.04.120.
B. Within the cross-hatched area designated on the parking rate zones map
(Exhibit A) the base rate for parking meters on streets or in municipal
parking lots shall be one dollar and fifty cents per hour effective January 2,
2023. The rate in this area shall increase to three dollars per hour effective
July 1, 2023.
C. Within the grey-shaded area designated on the parking rate zones map
(Exhibit A), the base rate for parking meters on streets or in municipal lots
shall be two dollars effective January 2, 2023. The rate in this area shall
increase to four dollars per hour effective July 1, 2023. The rate in this area
shall increase to five dollars per hour effective July 1, 2025.
D. The tier-based parking rates, which allow a customer to extend their parking
session beyond the posted number of hours, are as follows:
1. Tier 1: The base hourly rate per rate zone
2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier
1 time and is 50% above the Tier 1 rate rounded up or down to the
nearest twenty-five cent increment whichever is closer.
3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s)
and is 50% above the Tier 2 rate rounded up or down to the nearest
twenty-five cent increment whichever is closer.
E. Signage for the tier-based parking rates reflects the number of hours a
vehicle may park at the base hourly parking rate (Tier 1) before subsequent
tiered rates take effect.
1. 1+ parking rate: Parking up to one hour at the base hourly parking rate
before Tier 2 is in effect.
2. 2+ parking rate: Parking up to two hours at the base hourly parking rate
before Tier 2 is in effect.
3. 3+ parking rate: Parking up to three hours at the base hourly parking
rate before Tier 2 is in effect.
4. 4+ parking rate: Parking up to four hours at the base hourly parking rate
before Tier 2 is in effect.
D.F. The Public Works Director may periodically adjust the hourly parking rates
on any block or set of blocks within the areas designated on the parking rate
zones map (Exhibit A) during the time of operation as detailed in section
10.52.020 up to and including 120% of the effective hourly rate based on
the observed occupancy. Hourly parking rates shall be adjusted not more
than every 30 days.
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Ordinance No. _____ (2024 Series) Page 3
O ______
(Ord. 1714 § 1 (Exh. A), 2022; Ord. 1699 § 2, 2021: Ord. 1683 § 1 (Exhs. A, B),
2020: Ord. 1635 § 1 (Exhs. A, B), 2017: Ord. 1620 § 1 (Exh. A), 2015; Ord. 1568
§ 1, 2011: Ord. 1552 § 2, 2010; Ord. 1532 § 2, 2009; Ord. 1492 § 1, 2006: Ord.
1233 § 1, 1993: Ord. 1194 § 1, 1991: Ord. 1099 § 1, 1987: prior code § 3213)
SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this ordinance, or any other provisions of the
city' s rules and regulations. It is the city' s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
SECTION 3. Environmental Determination. These amendments to Title 10
Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a “Project”
under California Environmental Quality Act (CEQA) Guidelines Sec. 15378.
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Ordinance No. _____ (2024 Series) Page 4
O ______
SECTION 4. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the _____ day of ______, 2024, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following
vote:
AYES:
NOES:
ABSENT:
________________________________
Mayor Erica A. Stewart
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 100 of 127
Ordinance No. _____ (2024 Series) Page 5
O ______
Exhibit A
Page 101 of 127
Page 102 of 127
R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING PARKING RATES FOR THE
CITY’S PARKING STRUCTURES AND FOR PARKING PERMITS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states
that the City parking programs shall be financially self-supporting; and
WHEREAS, parking rates are used as a tool to effectively manage parking
demand for both on-street and off-street public parking areas; and
WHEREAS, on June 7, 2022, the City Council adopted Resolution No. 11334
(2022 Series) establishing new rates for the parking structures and approved elimination
of the first sixty minutes free in all parking structures subsidy, effective July 1, 2023, which
were deemed necessary to offset the construction costs and corresponding debt service
repayment for the new Cultural Arts District public parking structure and to maintain a
fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a
Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s
Parking program rates and fees and to develop parking priorities and recommendations
to help address community and downtown parking concerns ; and
WHEREAS, on November 7, 2023, the City Council adopted Resolution No. 11456
(2023 Series) reinstating the first sixty minutes free in all parking structures subsidy, free
parking all day on Sundays in all parking structures, and free on-street and off-street
parking locations during the annual downtown holiday parade hour of 6:00 p .m. – 11:50
p.m. as a way to provide temporary relief for businesses, visitors, and employees from
the significant rate and fee increases until June 30, 2025; and
WHEREAS, on November 7, 2023, the City Council authorized release of a
Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s
Parking program rates and fees and the parking rate study commenced in January 2024;
and
WHEREAS, significant outreach was conducted for the parking rate study which
demonstrated that maintaining the first sixty minutes free in all parking structures subsidy
is a top priority to address the community and downtown parking concerns; and
WHEREAS, financial modeling completed for the parking rate study demonstrates
that maintaining the first sixty minutes free in all parking structures subsidy and a slight
reduction in the hourly rate in all parking structures can be implemented without
jeopardizing the Parking Fund’s long-term fiscal health; and
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Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, the continued support of the downtown by providing the first hour free
in all parking structures, provides economic benefits to the community and assists with
applicable parking policies shifting on-street parking to off-street parking structures; and
WHEREAS, at a special meeting on May 14, 2024, the City Council considered
parking rate and fee options to address the public’s concerns while also maintaining a
fiscally solvent Parking Fund; and
WHEREAS, the Comprehensive Fee Schedule will be updated to reflect the new
and updated parking rates as described below.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Resolution No. 11334 (2022 Series) is hereby rescinded.
SECTION 2. Effective July 1, 2025, upon expiration of Resolution No. 11456
(2023 Series), the first sixty minutes free in all parking structures subsidy shall be
maintained.
SECTION 3. Effective July 8, 2024, the hourly rate in all parking structures shall
be $2.50 per hour, including Sundays.
SECTION 4. Effective July 8, 2024, the maximum daily and overnight parking rate
in all parking structures shall be $10.00 per day, including Sundays.
SECTION 5. Effective July 8, 2024, the lost ticket rate in all parking structures
shall be $10.00 per ticket per day, including Sundays.
SECTION 6. Effective July 8, 2024, the hourly validation program rate for gated
parking structures shall be $1.00 per hour.
SECTION 7. Effective July 1, 2024, the fee for monthly parking structure permits
for all parking structures shall be $45 per month.
SECTION 8. Effective July 1, 2024, the fee for 10-hour meter permits shall be $60
per month.
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Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 9. Environmental Review. The California Environmental Quality Act
(CEQA) does not apply to the recommended action in this report because the
recommended action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
The adoption of parking structure and parking permit rates is considered an administrative
activity of a government agency that will not result in direct or indirect physical impacts
on the environment.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 24.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 105 of 127
Page 106 of 127
City of
San Luis Obispo
Parking Fund Financial Policies
May 1, 2000
The purpose of this “white paper” is to address four
concerns that have recently emerged about the
Parking Fund:
When was the Parking Fund created? How is it
funded? How are these funds used?
What is the City’s policy regarding the use of
Parking Fund resources? Has the Parking Fund
ever subsidized the General Fund?
How were past property purchases funded? And
based on this, what fund should receive the
proceeds from any land sales?
How are residential parking districts funded?
Do related revenues cover costs?
PARKING FUND CREATION
Based on a review of budget documents, the City
has used meters for at least 45 years (and perhaps
longer than that, but
our budget files only
go back to 1955).
However, a formally
distinct Parking Fund
was not established
until 1975. Before this, parking-related activities
were accounted for as just another General Fund
expenditure like police, fire or street maintenance,
with any parking-related revenues recorded in the
General Fund as well. In short, until 1975, there was
no formal separation of ongoing financial activities
related to parking—revenues or expenditures—from
other General Fund transactions.
Parking Enterprise Fund. Since it was first
formed in 1975, the Parking Fund has been
accounted for as an enterprise fund. Under
generally accepted accounting principles, 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 City has five enterprise funds (water, sewer,
parking, transit and golf). Each enterprise fund is a
separate and distinct
accounting entity, and
as such, the operations
of each fund are
accounted for within a
separate set of self-balancing accounts that comprise
its assets, liabilities, fund equity, revenues and
expenses.
The Parking Fund is a
separate accounting entity
from all other City funds.
This means that the financial condition and results
from operations can be uniquely determined for each
enterprise fund.
Parking Fund Sources and Uses. Based on the
1999-01 Financial Plan, the following summarizes
Parking Fund sources and uses for 1999-00:
1999-00 Parking Sources: $2.7 Million
Meters
45%
Fines
18%
Other
10%
In-Lieu Fees
4%
Structures
18%
Leases
5%
The Parking Fund was not
created until 1975, but we’ve
had parking meters for at
least 45 years.
As reflected above, parking meters on City streets
and parking lots are the Parking Fund’s largest
revenue source, bringing in about $1.2 million
annually and accounting for almost half of total
revenues. Daily fees and passes at the two parking
Page 107 of 127
Parking Fund Financial Policies Page 2
structures bring in about $475,000 annually and
account for about 18% of total revenues. Parking
fines bring in about the same amount of revenue as
the two structures ($480,000). These top three
revenues—meters, structures and fines—account for
over 80% of total Parking Fund revenues.
1999-00 Parking Uses: $1.9 Million
Debt Service
35%
Operations
59%
CIP Projects
6%
Operations and Maintenance. At about $1.1
million annually, day-to-day operations account
for almost 60% of total Parking Fund
expenditures. This includes “direct” activities
like maintaining parking lots and repairing
meters, collecting revenues from about 1,600
meters, enforcing parking regulations, collecting
fines, and operating and maintaining two
structures with 669 spaces. Parking
management and planning costs are also paid by
the Parking Fund, along with “indirect” costs
like insurance and engineering support services.
CIP Projects. These vary significantly from
year-to-year. In some years (like 1999-00),
these can be relatively small. In other years,
however, they can be very large. In 1997-99, for
example, the CIP budget included funds for
expanding the Marsh Street structure.
Debt Service. This represents the City’s
principal and interest payment of $650,000
annually on bonds issued to help fund
construction of the City’s two parking structures.
Revenues Versus Expenditures. As reflected
above, we project that revenues in 1999-00 will
exceed expenditures by about $800,000. These
net” revenues will be used to fund future Parking
Management Plan programs and projects.
Additional Financial Information About the
City’s Parking Fund. The following excerpts from
the City’s 1999-01 Financial Plan about the Parking
Fund are provided in Exhibit A:
Parking Program Narrative
CIP Projects and Descriptions
Debt Service Obligations
General Government Cost Allocations
Changes in Financial Condition
Provided in Exhibit B are the following audited
financial statements for the City’s Parking Fund for
the last completed fiscal year (1998-99):
Balance Sheet
Income Statement
A
Statem
LLOWED PARKING FUND USES
ent of Cash Flows
City Policies Regarding Enterprise Funds. As set
forth in the attached excerpt from the City’s 1999-01
Financial Plan (Exhibit C), it is the City’s policy to
set parking fees and rates that fully cover the total
costs (direct and indirect) of the Parking Fund,
including operations, capital outlay and debt service.
This means that the
General Fund does not
subsidize the Parking
Fund, and the Parking
Fund does not subsidize the General Fund. In short,
parking revenues are solely dedicated for parking
purposes. On the other hand, General Fund revenues
should not be used for parking purposes.
Parking revenues are solely
dedicated to parking
purposes.
But what are “parking purposes?” The purpose
of the Parking Fund is to finance programs and
projects intended to achieve our parking goals.
Expenditures that do
this are accomplishing
a “parking purpose,”
and thus are a
legitimate use of
Parking Fund revenues.
The City’s parking
goals are set forth in a number of policy documents,
including the General Plan, Parking Management
Simple Test
Expenditures intended
to achieve the City’s
parking goals are an
appropriate use of
Parking Fund sources.
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Parking Fund Financial Policies Page 3
Plan and Financial Plan. The following summarizes
parking goals from the Financial Plan and the
Parking Management Plan:
1999-01 Financial Plan. As provided in Exhibit A,
the purpose of the City’s Parking Program is to
implement the Parking Management Plan and direct
the operation and maintenance of the City's parking
facilities. Program goals are:
Adequate, safe and attractive parking for
visitors, customers and employees in the
downtown and Railroad Square.
Adequate neighborhood parking for residents.
Recovery of all program costs through user
charges and other program revenue.
Thus, any expenditure that accomplishes these
purposes and goals would be an appropriate use of
Parking Fund resources.
Parking Management Plan. As reflected above, the
Parking Management Plan is a major policy
document in setting parking goals and objectives.
As such, it is a major driver in determining
appropriate uses of Parking Fund resources.
Originally adopted in 1987 and last updated in 1995,
the Parking Management Plan establishes vehicle
parking policies and programs that apply throughout
the City, not just the downtown. Plan goals include:
Support the commercial core as a viable
economic and cultural center and preserve its
historic character.
Support goals of the Downtown Concept Plan.
Provide enough parking in the commercial core
for visitors and employees.
Reduce the demand for employee parking
through various programs such as carpooling.
Support the transportation strategy presented in
the General Plan Circulation Element.
Again, expenditures that help achieve these goals as
well as the more detailed policies and programs set
forth in this Plan would be appropriate uses of
Parking Fund resources.
Has the Parking Fund Ever Subsidized the
General Fund? No. Since its inception in 1975,
Parking Fund revenues have been used solely for
parking purposes. However, as discussed below, the
City has provided significant subsidies to the
Parking Fund by
providing it with land
at no cost. Further, a
significant portion of
Parking Fund
revenues comes from
street meters. The
General Fund has never charged the Parking Fund
for the use of this valuable right-of-way.
The Parking Fund has never
subsidized the General Fund.
However, the General Fund
has provided land to the
Parking Fund at no cost.
Summary. Programs and projects financed by the
Parking Fund will vary from year-to-year based on
the approved Financial Plan and Budget. Rather
than focusing on the type of expenditure in
determining whether it is an appropriate use of
Parking Fund resources, the simple test is to ask:
Does this expenditure help us achieve our parking
goals?
If it does, then it is an allowable use of the Parking
Fund revenues. (Deciding if it is a high priority use
is a different issue, best answered through the City’s
goal-setting and budget process; but we need to
distinguish between an allowed use and a good one).
Viewed in a somewhat different way, the economy
of a billion people changed almost overnight based
on the simple observation that it doesn’t matter if a
cat is black or white as long as it catches mice. In
determining the appropriate use of Parking Fund
resources, we should focus on whether the
expenditure will “help us catch mice” (achieve our
parking goals), not on its “color” (the specific type
of expenditure we use to achieve these goals).
FUNDING PROPERTY PURCHASES
Since adoption of the City’s first Parking
Management Plan in 1987, all parking-related
property purchases
have been funded
through the Parking
Fund. However,
before then, we used a
We have used both General
and Parking Funds to acquire
parking-related properties in
the past.
Page 109 of 127
Parking Fund Financial Policies Page 4
variety of funding sources in purchasing parking-
related properties. After almost 50 years,
determining how each of them was acquired would
be a major research task. However, on a case-by-
case basis as this issue has arisen, we have
researched old property, budget and audit files to
determine acquisition funding sources. The
following are two examples:
Palm Street-Court Street Project. In response to
the recent Palm Street-Court Street proposal from
the Copeland’s, we have extensively researched the
source of funding for the City properties that would
be potentially affected by this project, and
discovered the following about the two affected
parking lots:
Court Street. There
are three separate
parcels on this site.
Parcels A and B
about 75% of the
site) were purchased
with parking
revenue bonds in
1961; and Parcel C (about 25% of the lot, and the
site of the old Obispo Theater) was acquired in 1984
with General Fund revenues.
Palm-Monterey.
These parking lots
were acquired over a
number of years:
Lot 3” in 1957 and
1958; “Lot 11” in
1966; and the corner
lot at Morro and
Palm in 1981. All of these properties were
purchased with General Fund revenues.
San Luis Obispo
Little Theater
Project. As part of
this project
proposal, we
researched the
funding source for
Lot 14” on
Monterey and Palm Streets between Nipomo and
Broad. We found that it was purchased in 1976 with
General Fund revenues.
Impact on Parking Fund Equity. The favorable
affect of General Fund property purchases on
Parking Fund equity is reflected in the audited
financial statements provided in Exhibit B for 1998-
99, which show $1,854,000 in contributed capital.
This reflects the value of properties “contributed” to
the Parking Fund by the General Fund.
In accordance with generally accepted principles,
this is based on the value of the properties at the
time of purchase (or contribution). As noted above,
many of these properties were purchased by the
General Fund many years ago, and as such, their
market value is much higher today than the “book”
value recorded in our financial statements.
What Fund Should Receive the Proceeds from
the Sale of Parking-Related Properties? This
should be determined based on the original funding
source:
C
If the property was purchased through the
Parking Fund, then the proceeds should always
be recorded in the
Parking Fund.
If the property
was purchased
with General Fund revenues, then the use of the
proceeds is discretionary by the City: they may
appropriately be used for Parking or other
purposes.
Application of this Principle. Let’s put this
principle in the context of several property sales
currently under consideration. If we were to sell
Court Street, about 75% of the proceeds should go to
the Parking Fund based on its direct “equity” share
in this property. The balance of the proceeds could
be used for other purposes, since the General Fund
paid for about 25% of this site. This is also the case
for the sale (or alternate use) of lots 3, 11 and 14,
since the General Fund paid for these as well.
This principle also applies to the Parking Fund’s use
of the City’s right-of-way for revenue (parking
meter) purposes. This is why no compensation is
provided by the General Fund if on-street metered
spaces are removed for other public purposes: the
Parking Fund never paid for their use to begin with.
Proceeds should be allocated
based on the original funding
source.
A
B
C
A B
11
3
14
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Parking Fund Financial Policies Page 5
In the case of the recent acquisition and remodel of
the office building on 879 Morro Street for the
Utilities Department, the Parking Fund will be fully
reimbursed for the loss of two surface parking
spaces next to the Palm Street structure as part of
this project.
RESIDENTIAL PARKING DISTRICTS
As set forth in the Parking Management Plan, the
Parking Fund covers more than just the downtown;
it has community-wide parking responsibilities,
including residential parking districts throughout the
City and Railroad Square.
What is the fiscal impact of the residential
parking districts on the Parking Fund? As
summarized in Exhibit D, we took a detailed look at
this in 1997. This
analysis shows that the
revenues from the
residential parking
districts fully recover
related costs; in fact, there is a small surplus (about
6,000 annually).
What if these costs were not fully recovered?
Based on City parking goals, it would be appropriate
to account for these costs in the Parking Fund even
if they were not fully offset by related revenues.
Our enterprise fund policy does not require that
every specific activity within the fund be fully offset
by related revenues. Just as in the private sector,
there are activities within each of our enterprise
funds that generate more revenues than others;
prices are set accordingly based on overall business
strategies (in our case, desired policy outcomes) and
market forces.
While there are several examples of this in each of
our enterprise funds, there are excellent ones within
the Parking Fund itself.
For example, it is clear that the direct daily fees and
pass revenues from the parking structures do not
come anywhere near recovering their operating,
maintenance and capital costs. Similarly, it does not
cost us any more to maintain parking meters in the
core” area of downtown, but for very valid business
reasons, our hourly rate for them is higher than in
the outlying areas.
In summary, not every activity within an
enterprise—public or private—can or should be a
profit center. As such, in complying with our
enterprise fund policies, it is not necessary for every
specific activity within the fund to recover its cost as
long as the fund as a whole is adequately covering
its total costs.
SUMMARY
The following is a recap of the answers to the
questions raised at the beginning of this “white
paper:”
The Parking Fund as a distinct accounting entity
was formed in 1975.
Revenues from residential
parking districts fully
recover their costs.
Revenues from meters, structures (daily fees and
passes) and fines are the Parking Fund’s main
revenue sources, accounting for over 80% of
revenues. These revenues are used in funding
the operating, debt service and capital costs
incurred in achieving the City’s parking goals.
Parking Fund revenues are restricted for parking
purposes. This means parking revenues may be
used in funding programs and projects intended
to achieve the City’s parking goals. These goals
are set in a number of policy documents,
including the General Plan, Parking
Management Plan and Financial Plan.
The Parking Fund has never subsidized the
General Fund.
Parking property purchases have been funded by
both the General Fund and the Parking Fund.
Proceeds from land sales (or changes in use)
should be recorded in the Parking Fund if
Parking Fund revenues were used to purchase
the property. If the General Fund purchased the
site, then the proceeds may be used for parking
or other purposes.
Revenues from residential parking districts fully
recover their costs.
Page 111 of 127
Parking Fund Financial Policies
EXHIBITS
A. 1999-01 Financial Plan: Excerpts on Parking
1. Parking Program Narrative
2. CIP Projects and Descriptions
3. Debt Service Obligations
4. General Government Cost Allocations
5. Changes in Financial Condition
B. 1998-99 Audited Financial Statements
1. Balance Sheet
2. Income Statement
3. Statement
C. Budget and Fiscal Policies: Enterprise Fund Rates and Fees
D. Residential Parking District Cost Analysis: July 14, 1997
Note: These Exhibits are not attached in this
handout, but they are available upon request from
the Department of Finance:
Phone: 805.781.7125
Email: bstatler@slocity.org
Page 112 of 127
Attachment E
Draft Ordinance reflecting Option C, as listed in the Staff Report
O ______
ORDINANCE NO. ____ (2024 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 10, CHAPTER 52 (PARKING
METERS), OF THE SAN LUIS OBISPO MUNICIPAL CODE MODIFYING
HOURLY PARKING RATES ON-STREET AND IN SURFACE PARKING
LOTS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states
that the City parking programs shall be financially self-supporting; and
WHEREAS, parking rates are used as a tool to effectively manage parking
demand for both on-street and off-street public parking areas; and
WHEREAS, on June 21, 2022, the City Council adopted Ordinance No. 1714
(2022 Series) approving multiple hourly rate increases for the on-street areas and
municipal parking lots effective January 2, 2023, July 1, 2023, and July 1, 2025 which
were deemed necessary to offset the construction costs and corresponding debt service
repayment for the Cultural Arts District public parking structure in order to maintain a
fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a
Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s
Parking program rates and fees and to develop parking priorities and recommendations
to help address community and downtown parking concerns; and
WHEREAS, on November 7, 2023, the City Council authorized release of a
Request for Proposals (RFP) to conduct a parking rate study; and
WHEREAS, the parking rate study recommendations include reducing hourly
parking rates on-street and in municipal parking lots along with other recommended
changes to address the community and downtown parking concerns; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council of City Hall, 990 Palm Street, San Luis Obispo, California, on May
14, 2024, to consider parking rate and fee options to address the public’s concerns while
also maintaining a fiscally solvent Parking Fund including recommended changes to Title
10, Chapter 52 of the Municipal Code.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Section 10.52.010 (Paid Parking zone - Rates) of the San Luis
Obispo Municipal Code is hereby amended as follows:
Page 113 of 127
Ordinance No. _____ (2024 Series) Page 2
O ______
10.52.010 Paid Parking zone—Rates.
A. Within the area enclosed by a solid line on the parking rate zone map
(Exhibit A) the parking of vehicles on streets or in municipal parking lots
may be controlled and regulated with the aid of parking meters as defined
in section 10.04.110 and/or parking payment centers as defined in section
10.04.120.
B. Within the cross-hatched area designated on the parking rate zones map
(Exhibit A) the base rate for parking meters on streets or in municipal
parking lots shall be one dollar and fifty cents per hour effective January 2,
2023. The rate in this area shall increase to three dollars per hour effective
July 1, 2023. two dollars and fifty cents per hour effective July 8, 2024.
C. Within the grey-shaded area designated on the parking rate zones map
(Exhibit A), the base rate for parking meters on streets or in municipal lots
shall be two dollars effective January 2, 2023. The rate in this area shall
increase to four dollars per hour effective July 1, 2023. The rate in this area
shall increase to five dollars per hour effective July 1, 2025. three dollars
per hour effective July 8, 2024.
D. The tier-based parking rates, which allow a customer to extend their parking
session beyond the posted number of hours, are as follows:
1. Tier 1: The base hourly rate per rate zone
2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier
1 time and is 50% above the Tier 1 rate rounded up or do wn to the
nearest twenty-five cent increment whichever is closer.
3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s)
and is 50% above the Tier 2 rate rounded up or down to the nearest
twenty-five cent increment whichever is closer.
E. Signage for the tier-based parking rates reflects the number of hours a
vehicle may park at the base hourly parking rate (Tier 1) before subsequent
tiered rates take effect.
1. 1+ parking rate: Parking up to one hour at the base hourly parking rate
before Tier 2 is in effect.
2. 2+ parking rate: Parking up to two hours at the base hourly parking rate
before Tier 2 is in effect.
3. 3+ parking rate: Parking up to three hours at the base hourly parking
rate before Tier 2 is in effect.
4. 4+ parking rate: Parking up to four hours at the base hourly parking rate
before Tier 2 is in effect.
DF. The Public Works Director may periodically adjust the hourly parking rates
on any block or set of blocks within the areas designated on the parking
rate zones map (Exhibit A) during the time of operation as detailed in
section 10.52.020 up to and including 120% of the effective hourly rate
based on the observed occupancy. Hourly parking rates shall be adjusted
not more than every 30 days.
Page 114 of 127
Ordinance No. _____ (2024 Series) Page 3
O ______
(Ord. 1714 § 1 (Exh. A), 2022; Ord. 1699 § 2, 2021: Ord. 1683 § 1 (Exhs. A, B),
2020: Ord. 1635 § 1 (Exhs. A, B), 2017: Ord. 1620 § 1 (Exh. A), 2015; Ord. 1568
§ 1, 2011: Ord. 1552 § 2, 2010; Ord. 1532 § 2, 2009; Ord. 1492 § 1, 2006: Ord.
1233 § 1, 1993: Ord. 1194 § 1, 1991: Ord. 1099 § 1, 1987: prior code § 3213)
SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this ordinance, or any other provisions of the
city' s rules and regulations. It is the city' s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
SECTION 3. Environmental Determination. These amendments to Title 10
Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a “Project”
under California Environmental Quality Act (CEQA) Guidelines Sec. 15378.
Page 115 of 127
Ordinance No. _____ (2024 Series) Page 4
O ______
SECTION 4. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days p rior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of ______, 2024, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following
vote:
AYES:
NOES:
ABSENT:
________________________________
Mayor Erica A. Stewart
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 116 of 127
Ordinance No. _____ (2024 Series) Page 5
O ______
Exhibit A
Page 117 of 127
Page 118 of 127
Attachment F
Draft Resolution reflecting Option B or Option C, as listed in the Staff Report
R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING PARKING RATES FOR THE
CITY’S PARKING STRUCTURES AND FOR PARKING PERMITS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states
that the City parking programs shall be financially self-supporting; and
WHEREAS, parking rates are used as a tool to effectively manage parking
demand for both on-street and off-street public parking areas; and
WHEREAS, on June 7, 2022, the City Council adopted Resolution No. 11334
(2022 Series) establishing new rates for the parking structures and approved elimination
of the first sixty minutes free in all parking structures subsidy, effective July 1, 2023, which
were deemed necessary to offset the construction costs and corresponding debt service
repayment for the new public parking structure in order to maintain a fiscally solvent
Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a
Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s
Parking program rates and fees and to develop parking priorities and recommendations
to help address community and downtown parking concerns; and
WHEREAS, on November 7, 2023, the City Council adopted Resolution No. 11456
(2023 Series) reinstating the first sixty minutes free in all parking structures subsidy, free
parking all day on Sundays in all parking structures, and free on-street and off-street
parking locations during the annual downtown holiday parade hour of 6:00 p .m. – 11:50
p.m. as a way to provide temporary relief for businesses, visitors, and employees from
the significant rate and fee increases that went into effect July 1, 2023 ; and
WHEREAS, on November 7, 2023, the City Council authorized release of a
Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s
Parking program rates and fees; and
WHEREAS, the parking rate study recommendations include elimination of the
first sixty minutes free in all parking structures subsidy, elimination of free parking all day
on Sundays, a reduction of the hourly rate and maximum daily rate, and a reduction in
the monthly parking rate in all parking structures along with other recommended changes
to address the community and downtown parking concerns; and
WHEREAS, at a special meeting on May 14, 2024, the City Council considered
parking rate and fee options to address the public’s concerns while also maintaining a
fiscally solvent Parking Fund; and
Page 119 of 127
Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, the Comprehensive Fee Schedule will be updated to reflect all new
and updated parking rates as described below.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Resolution No. 11334 (2022 Series) is hereby rescinded.
SECTION 2. Effective July 8, 2024, the first sixty minutes free in all parking
structures subsidy shall be eliminated. A fifteen-minute grace period shall be provided
upon entry into all parking structures before the hourly parking structure rates apply.
SECTION 3. Effective July 8, 2024, hourly rate in all parking structures shall be
$2.00 per hour including Sundays.
SECTION 4. Effective July 8, 2024, the maximum daily and overnight rate in all
parking structures shall be $8.00 per day, including Sundays.
SECTION 5. Effective July 8, 2024, the lost ticket rate in all parking structures
shall be $8.00 per ticket per day, including Sundays.
SECTION 6. Effective July 8, 2024, the hourly validation program rate for all
parking structures shall be $1.00 per hour.
SECTION 7. Effective July 1, 2024, the fee for monthly structure permits for all
parking structures shall be $45 per month.
SECTION 8. Effective July 1, 2024, the fee for 10-hour meter permits shall be $60
per month.
Page 120 of 127
Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 9. Environmental Review. The California Environmental Quality Act
(CEQA) does not apply to the recommended action in this report because the
recommended action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 24.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 121 of 127
Page 122 of 127
Attachment G
Draft Ordinance reflecting Option B, as listed in the Staff Report
O ______
ORDINANCE NO. ____ (2024 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 10, CHAPTER 52 (PARKING
METERS), OF THE SAN LUIS OBISPO MUNICIPAL CODE MODIFYING
HOURLY PARKING RATES ON-STREET AND IN SURFACE PARKING
LOTS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states
that the City parking programs shall be financially self-supporting; and
WHEREAS, parking rates are used as a tool to effectively manage parking
demand for both on-street and off-street public parking areas; and
WHEREAS, on June 21, 2022, the City Council adopted Ordinance No. 1714
(2022 Series) approving multiple hourly rate increases for the on-street areas and
municipal parking lots effective January 2, 2023, July 1, 2023, and July 1, 2025 which
were deemed necessary to offset the construction costs and corresponding debt service
repayment for the new Cultural Arts District public parking structure in order to maintain
a fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a
Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s
Parking program rates and fees and to develop parking priorities and recommendations
to help address community and downtown parking concerns; and
WHEREAS, on November 7, 2023, the City Council authorized release of a
Request for Proposals (RFP) to conduct a parking rate study; and
WHEREAS, the parking rate study recommendations include reducing hourly
parking rates on-street and in municipal parking lots along with other recommended
changes to address the community and downtown parking concerns; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California,
on May 14, 2024, to consider parking rate and fee options to address the public’s
concerns while also maintaining a fiscally solvent Parking Fund including recommended
changes to Title 10, Chapter 52 of the Municipal Code.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Section 10.52.010 (Paid Parking zone - Rates) of the San Luis
Obispo Municipal Code is hereby amended as follows:
Page 123 of 127
Ordinance No. _____ (2024 Series) Page 2
O ______
10.52.010 Paid Parking zone—Rates.
A. Within the area enclosed by a solid line on the parking rate zone map (Exhibit
A) the parking of vehicles on streets or in municipal parking lots may be
controlled and regulated with the aid of parking meters as defined in section
10.04.110 and/or parking payment centers as defined in section 10.04.120.
B. Within the cross-hatched area designated on the parking rate zones map
(Exhibit A) the base rate for parking meters on streets or in municipal parking
lots shall be one dollar and fifty cents per hour effective January 2, 2023.
The rate in this area shall increase to three dollars per hour effective July 1,
2023. two dollars and twenty-five cents per hour effective July 8, 2024.
C. Within the grey-shaded area designated on the parking rate zones map
(Exhibit A), the base rate for parking meters on streets or i n municipal lots
shall be two dollars effective January 2, 2023. The rate in this area shall
increase to four dollars per hour effective July 1, 2023. The rate in this area
shall increase to five dollars per hour effective July 1, 2025. two dollars and
seventy-five cents per hour effective July 8, 2024.
D. The tier-based parking rates, which allow a customer to extend their parking
session beyond the posted number of hours, are as follows:
1. Tier 1: The base hourly rate per rate zone
2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier
1 time and is 50% above the Tier 1 rate rounded up or down to the
nearest twenty-five cent increment whichever is closer.
3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s)
and is 50% above the Tier 2 rate rounded up or down to the nearest
twenty-five cent increment whichever is closer.
E. Signage for the tier-based parking rates reflects the number of hours a
vehicle may park at the base hourly parking rate (Tier 1) before subsequent
tiered rates take effect.
1. 1+ parking rate: Parking up to one hour at the base hourly parking rate
before Tier 2 is in effect.
2. 2+ parking rate: Parking up to two hours at the base hourly parking rate
before Tier 2 is in effect.
3. 3+ parking rate: Parking up to three hours at the base hourly parking rate
before Tier 2 is in effect.
4. 4+ parking rate: Parking up to four hours at the base hourly parking rate
before Tier 2 is in effect.
DF. The Public Works Director may periodically adjust the hourly parking rates
on any block or set of blocks within the areas designated on the parking rate
zones map (Exhibit A) during the time of operation as detailed in section
10.52.020 up to and including 120% of the effective hourly rate based on
the observed occupancy. Hourly parking rates shall be adjusted not more
than every 30 days.
Page 124 of 127
Ordinance No. _____ (2024 Series) Page 3
O ______
(Ord. 1714 § 1 (Exh. A), 2022; Ord. 1699 § 2, 2021: Ord. 1683 § 1 (Exhs. A, B),
2020: Ord. 1635 § 1 (Exhs. A, B), 2017: Ord. 1620 § 1 (Exh. A), 2015; Ord. 1568
§ 1, 2011: Ord. 1552 § 2, 2010; Ord. 1532 § 2, 2009; Ord. 1492 § 1, 2006: Ord.
1233 § 1, 1993: Ord. 1194 § 1, 1991: Ord. 1099 § 1, 1987: prior code § 3213)
SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this ordinance, or any other provisions of the
city' s rules and regulations. It is the city' s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
SECTION 3. Environmental Determination. These amendments to Title 10
Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a “Project”
under California Environmental Quality Act (CEQA) Guidelines Sec. 15378.
Page 125 of 127
Ordinance No. _____ (2024 Series) Page 4
O ______
SECTION 4. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of _______, 2024, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 126 of 127
Ordinance No. _____ (2024 Series) Page 5
O ______
Exhibit A
Page 127 of 127
Parking Rate Study
Public Hearing
May 14, 2024
2021-23 Financial Plan identified the need for rate increases over multiple
years to support construction and debt service costs for CADPS as well as
ongoing funding needs
July 2021 – Council approved on-street and off-street rate increases
June 2022 – Council adopted the FY 2022-23 Supplemental Budge which
included hourly parking rate increases effective January 2023 and July 2023
Parking infrastructure and technology changes occurred in 2021-2023
February 2023 – Council adopted the Access and Parking Management Plan
and directed staff to return with a study evaluating rates and fees
November 2023 – Council adopted a resolution reestablishing the first hour
free and free Sunday parking in the structures through June 30, 2025
Background – How did we get here?
October 2023 – Internal and external stakeholder review of draft RFP
City Parking Steering Committee 9/28/23
Chamber of Commerce 10/5/2023
Downtown SLO 10/10/23
November 2023 – City Council authorized advertisement of RFP
December 2023 – Review of proposals by committee
January 2024 - Approval of contract with Dixon
Rate Study Background
The request for proposals (RFP) was a collaborative effort between City
Council, Downtown Organizations, and Staff.
Discussion Outline
Introduction and Project Overview
Community Outreach Summary
Data Collection Summary
Parking Rate Model Options and Recommendations
4
Extensive parking and transportation management
experience
Holistic approach to parking management
Overall recommendations and training
Implementation support services
Parking Studies Implementation Support
Stakeholder Engagement Contract Management
Technology/Automation Solicitation/Procurement
Monetization Modeling Revenue Reconciliations
Best Practice
Comparisons
Integrated Solutions
CA Alameda CA Palo Alto MI Birmingham
CA Anaheim CA Pasadena MT Whitefish
CA Berkeley CA Paso Robles NJ Atlantic City
CA Beverly Hills CA Riverside NJ Princeton
CA Costa Mesa CA San Francisco NM Albuquerque
CA Chico CA San Jose NV Las Vegas
CA Davis CA San Leandro NV Reno
CA Downey CA Sausalito OR Beaverton
CA Fresno CA Seal Beach OR Portland
CA Los Angeles (DOT)CA Tustin TX Austin
CA Los Angeles County CO Denver TX Dallas
CA Monterey CT New Haven UT Park City
CA Mountain View CT Stamford UT Salt Lake City
CA Napa FL Brevard County UT Springdale
CA Newport Beach FL Seaside WA Seattle
CA Norwalk HI Maui WA Spokane
CA Oakland ID Boise WA Vancouver
CA Oceanside IL Oak Park WI Milwaukee
Clients include:
DIXON Company Profile 5
Parking Rate Study Overview
Community Outreach
•Round 2 of Community Meetings to present data and draft recommendations
City Council Presentation
Community Outreach
•Round 1 of Community
Meetings
•Public Input Survey
•Stakeholder Engagement
Data Collection
•Inventory collection
•Parking occupancy
collection
Financial Modeling
•Assessing the financial
impact of various rate
models for Downtown SLO
Finalize Recommendations
Community Outreach
•Round 3 community meeting to present final rate model options
6
Stakeholder Meeting Summary
Name Date(s)
Downtown SLO Parking Taskforce
February 13, 2024
April 4, 2024
May 2, 2024
Parking & Access Committee March 5, 2024
City Parking Steering Committee February 22, 2024
Chamber of Commerce March 7, 2024
7
Community Outreach Overview
Online survey received 2,784 total responses between February 6, 2024,
and March 8, 2024.
Five community meetings were held, totaling over 100 attendees.
Approximately 80 emails were received from community members.
Over 60 comments were received on City of SLO’s social media posts
(Instagram, Facebook, Twitter).
Name Date(s)Setting Number of Attendees*
Community Meeting Round 1 February 13, 2024 In-Person 35
February 14, 2024 Virtual 20
Community Meeting Round 2 April 4, 2024 In-Person 22
April 5, 2024 Virtual 15
Community Meeting Round 3 May 2, 2024 Virtual 12
8
Summary of Key Themes
Combined from survey, community meetings & email/social media
feedback:
Parking Experience
Technology issues and general confusion regarding how to pay for parking (pay
stations, multi-vendor mobile payment apps, rate structures, signage)
Increase safety and user experience in garages, especially in gateless
structure
Concerns about transparency (2023 changes happened too quickly)
Concerns about negative impact to locals, visitors, businesses
Policy / Rates
Lowering rates and retaining free hours/days
Decrease evening paid parking operating hours
9
Survey Results
Total Responses: 2,784 (approx. 230 hours of community feedback)
Residents: 1,715 respondents
Visitors: 1,069 respondents
Business Owners: 104 respondents
Employees: 235 respondents
* All respondents first completed either the Resident or Visitor set, then could
either identify as a Business Owner, Employee, or N/A and end the survey.
10
Survey Results: Residents & Visitors Feedback
Parking Experience
Both groups are dissatisfied with the current paid parking technology experience.
When visiting Downtown SLO, both groups prefer to stay for 3 hours.
Both groups believe the current 2-hour on-street time-limit is insufficient.
Both groups feel safe when using parking structures.
Most residents can find an available parking space in 5 minutes or less.
Many visitors take more than 5 min to find an available parking space.
Policy / Rates
Both groups see cost as the most important factor when looking for parking.
Residents want reduced paid parking operating hours.
11
Survey Results: Business Owners &
Employees Feedback
Parking Experience
Both groups believe the current 2-hour on-street time-limit is not enough time for customers.
Both groups believe their customers typically have a challenge finding nearby parking.
Most business owners believe that their employees typically have a challenge finding nearby parking.
34% of employees park within a block from work, while 31% typically park 4 or more blocks away.
Policy / Rates
Both groups would prefer to renew both on-street and structure parking permits quarterly.
Most business owners believe their business revenue has drastically decreased since the 2023 paid parking rate increases.
12
Targeted Data Collection
Study Area
Collection Schedule
Wednesday, February 28
Saturday, March 2
Saturday, March 9
Run 1 Run 2 Run 3 Run 4 Run 5 Run 6
9:00 AM 11:00 AM 1:00 PM 3:00 PM 5:00 PM 7:00 PM
Parking Occupancy
Total Average Peak Occupancy = 49%
DIXON - March 2, 2024 Walker Consultants - July 23, 2022
Total Average Peak Occupancy = 58%
Saturday Peak Occupancy (1-3pm)
14
Parking Occupancy
DIXON - March 2, 2024 Walker Consultants - September 24, 2022
Total Average Peak Occupancy = 47%Total Average Peak Occupancy = 62%
Saturday Peak Occupancy (7-9pm)
15
Parking Occupancy
= Peak Time
High Congestion on Saturdays
11 -3pm
7-9pm
Zone 1 has 2-hour max spaces
Zone 1 is more congested than
Zone 2
Zone 1 is busier during meal
times, especially on Saturday
Zone 1 On-street (Core)
16
Parking Occupancy
= Peak Time
High Congestion on weekdays
11 -3pm
Zone 2 has 10-hour meter spaces
Zone 2 is more congested on
weekdays when more employees
park in long term spaces
Zone 2 On-street (Outer)
17
Parking Occupancy
= Peak Time
3 Garages, 4 Lots
Average peak occupancy rate
of 49%
Consider shared parking
opportunities with private off-
street lots (94 within study area)
Public Off-street
18
Parking Management
Parking Management
No such thing as free parking
Easy, convenient, accessible
Making data-driven decisions
Avoid band-aid solutions
Compliance-based approach to managing parking
Sustainability & adaptability
20
Existing Rate Zones
21
Key Considerations
Consistent and simple rate structure easy to communicate
Increase turnover and parking availability
Encourage people to patronize Downtown SLO
Align premium pricing with on-street core spaces, and value pricing with
on-street periphery and off -street spaces
Ensure Parking Enterprise Fund maintains a financially sustainable
forecast
22
Program and Operations Approaches
Demand-based pricing
Improve the jury parking & validation process
Consider local incentives
Employee parking options
More accessible permit pricing options
Bulk discount for employers managing permits
Consider alternate transit options
Simplify mobile payment approach
Focus on Parking Ambassador approach
Improve digital wayfinding
The City has already initiated some technology improvements.
There is also an upcoming implementation/technology roadmap.
23
Summary of Financially Sustainable Options
Option A:
Retain Free Hour
Option B:
Lowest Rates
Option C:
Structure Parking
On-street
Rates
Core: $4.00/h
Outer: $3.00/h
Core: $2.75/h
Outer: $2.25/h
Core: $3.00/h
Outer: $2.50/h
On-street
Hours
Mon -Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon -Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon -Sat, 9 AM - 9 PM
Sundays, 1 PM – 9 PM
Off-street
Rates
$2.50/h, $10.00 daily max
First hour free $2.00/h, $8.00 daily max $2.00/h, $8.00 daily max
Off-street
Hours 7 days per week 7 days per week 7 days per week
Permit Rates •10h meter permit: $60/mo
•Structure permit: $85/mo
•10h meter permit: $60/mo
•Structure permit: $85/mo
•10h meter permit: $45/mo
•Structure permit: $65/mo
DIXON
Recommendation
Option A: Prioritizes First Hour Free in Structures
Changes from current model in yellow highlight
Structures
•$3.00/h, $12 daily max
$2.50/h, $10 max
•First hour free
•Operating hours: 24/7, 7 days/wk
•Free Sundays remove
On-street/Lots
•Core (Zone 1): $4.00/h (No change)
•Outer (Zone 2/3): $3.00/h (No change)
•Operating hours: Mon-Sat 9 AM – 9 PM
Sundays 1 PM – 9 PM
Permits
•10h meter permit: $60/mo
•Structure permit: $85/mo
*
* Expenditure figures are derived from the Supplemental Budget version from April 15, 2024.
** Change in Financial Position = Profit or Loss
**
25
Option B: Prioritizes Lowest Rates
Permits
•10h meter permit: $60/mo
•Structure permit: $85/mo
On-street/Lots
•Core (Zone 1): $4.00/h $2.75/h
•Outer (Zone 2/3): $3.00/h $2.25/h
•Operating hours: Mon-Sat 9 AM – 9 PM
Sundays 1 PM – 9 PM
Structures
•$3.00/h, $12 daily max
$2.00/h, $8 max
•First hour free remove
•Operating hours: 24/7, 7 days/wk
•Free Sundays remove
*
Changes from current model in yellow highlight
* Expenditure figures are derived from the Supplemental Budget version from April 15, 2024.
** Change in Financial Position = Profit or Loss
**
26
Option C: Prioritizes Structure Parking
On-street/Lots
•Core (Zone 1): $4.00/h $3.00/h
•Outer (Zone 2/3): $3.00/h $2.50/h
•Operating hours: Mon-Sat 9 AM – 9 PM
Sundays 1 PM – 9 PM
Permits
•10h meter permit: $60/mo
$45/mo
•Structure permit: $85/mo
$65/mo
Structures
•$3.00/h, $12 daily max
$2.00/h, $8 max
•First hour free remove
•Operating hours: 24/7, 7 days/wk
•Free Sundays remove
* Expenditure figures are derived from the Supplemental Budget version from April 15, 2024.
** Change in Financial Position = Profit or Loss
*
Changes from current model in yellow highlight
**
27
Staff Recommended Program and Operational Changes
Reduce to One Mobile Payment App
Expand On-street Core Time Limits from 2 to 3 hours
Downtown Permit Enhancements
Maintain 10-hour permits at $60
Reduce Structure Permit Rates to $45
Increase Number of Permits Issued
Validation Program Enhancements
Reduce Cost to $1 per hour (Immediate)
Improvements with Technology (Down the road)
Update Signs Improving User Experience Incorporating Changes
Promotional Discounts thru Single Vendor App
Transition to Updated Gated System for All Structures
Summary of Staff Recommended Options
Option A:
Retain Free Hour
Option B:
Lowest Rates
Option C:
Balanced Approach
On-street Rates Core: $4.00/h
Outer: $3.00/h
Core: $2.75/h
Outer: $2.25/h
Core: $3.00/h
Outer: $2.50/h
On-street Hours Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM – 9 PM
Off-street Rates $2.50/h, $10.00 daily max
First hour free
$2.00/h, $8.00 daily max
Paid First Hour
$2.00/h, $8.00 daily max
Paid First Hour
Off-street Hours 7 days per week 7 days per week 7 days per week
Permit Rates 10h meter permit: $60/mo - Structure permit: $45/mo
Increase number of permits offered
Validation 100 hours for $100 ($1 per hour)
Core on-street Time limits increased from 2 hours to 3 hours
Improvements
Reduce to single payment app and offer promotional discounts
Updated signage improving user experience
Transition to consistent pay at exit gated systems in all structures
Communications Strategy
Public Relations
Press release announcing Council Decision
Interviews with local media (KSBY, Tribune, New Times)
Social Media Posts (Facebook, Instagram, Linked In, Twitter)
Print Collateral
Parking Information Toolkit for Downtown Businesses
Updated Parking Brochure for distribution at Visitors Center,Downtown SLO,
Chamber of Commerce, Cal-Poly and Mobility Services Office
Website
Updated Parking Landing Page
Redesign of Parking Information pages
Signage
Rollout of City-Wide Parking Signage updates
Next Steps
June 4, 2024
Second Reading of Ordinance for On-street and Lot Rate Changes
July 2024
Monthly structure permit rates take effect – July 1
Validation discounts take effect – July 1
Rate Changes take effect – July 8
Summer 2024
Single mobile payment app implementation
Phase 1 sign improvements
Winter 2024
Technology Implementation Plan presented
•Promotional app discounts
•Phase 2 sign plan and budget
•Gated system plan and budget
Recommendation
Recommendation from Council Agenda Report:
1. Receive a presentation on the draft Parking Rate Study, including consideration of preliminary
recommendations, provide direction regarding the selected rate options for adoption and
implementation, and provide direction to staff to finalize the Parking Rate Study; and
2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo,
California, establishing parking rates for the City’s parking structures and for parking permits”; and
3. Introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis
Obispo, California, amending Title 10, Chapter 52 (Parking Meters and Parking Payment Centers),
of the Municipal Code Modifying Hourly Parking Rates On-Street and In Surface Parking Lots.”
4. Direct staff to implement staff recommended program and operational changes.
Council Alternatives
1.Council could choose to adopt the Option A rate model. Council could choose to adopt Option A as the selected rate
model for parking rates in the downtown. Staff agrees that either Option A, B, or C provide feasible rate models. If
Council chooses to move forward with this recommendation, included as Attachment B and C are the corresponding draft
Ordinance and Resolution to implement Option A.
2.Council could choose to adopt the Option B rate model. Council could choose to adopt Option B as the selected rate
model for parking rates in the downtown. Staff agrees that either Option A, B, or C provide feasible rate models. If
Council chooses to move forward with this recommendation, included as Attachment G and F are the corresponding draft
Ordinance and Resolution to implement Option B.
3.Council could choose to adopt the Option C rate model. Council could choose to adopt Option C as the selected rate
model for parking rates in the downtown. Staff agrees that either Option A, B, or C provide feasible rate models. If Council
chooses Item 3a to move forward with this recommendation, included as Attachment E and F are the corresponding draft
Ordinance and Resolution to implement Option C.
Parking Fund Long Term Forecast
CIP Projects