HomeMy WebLinkAboutItem 5j. Ordinance No. 1735 2nd Reading amending Chapter 52 of the Municipal Code (Parking Rates) Item 5j
Department: Public Works
Cost Center: 5101
For Agenda of: 6/4/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Jennifer Rice, Deputy Director of Mobility Services
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1735 (2024
SERIES) AMENDING CHAPTER 52 OF THE MUNICIPAL CODE
(PARKING RATES)
RECOMMENDATION
Adopt Ordinance No. 1735 (2024 Series) 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
Parking Structure (CADPS), in alignment with the City’s goals for Downtown parking and
access.
Section 13.1.2 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.
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Item 5j
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.
DISCUSSION
Background
On May 14, 2024, the City Council introduced Ordinance No. 1735 (2024 Series),
amending Title 10 Chapter 52 of the Municipal Code to remove the parking rate increase
planned for July 1, 2025, and reduce on-street and surface lot parking rates. This
Ordinance implements Option B presented the draft Parking Rate Study completed by
the City’s retained consultant, Dixon Resources Unlimited, and presented as part of the
public hearing conducted on May 14, 2024. Following discussion of the rate study and
the options presented in it, the four present Councilmembers unanimously approved the
introduction of the ordinance and adoption of a resolution to implement reduced rates in
the City’s parking structures, reduced parking pass rates for the structures, and reduced
validation costs. Council also provided direction to staff to implement additional
operational changes to the City’s parking services, including:
Increase the time limit for on-street parking in the Downtown Core from 2 to 3
hours;
Reduce to a single payment app;
Develop a program to offer additional promotional discounts offerings;
Update signage to improve the user experience;
Transition to a consistent pay-at-exit gated systems at all structures; and
Develop a validation program and short duration on -street parking to facilitate
attendance at public meetings, minor governmental needs, and library access.
Ordinance Summary
The proposed Ordinance (Attachment A) amends Title 10 Chapter 52 of the Municipal
Code to remove the parking rate increase planned for July 1, 2025, and reduce on-street
and surface lot parking rates. The City’s downtown on-street parking spaces consists of
two different paid parking zones, one primarily within the core of the downtown and a
second primarily on the fringe of downtown. Each zone has a specific paid parking rate.
On June 21, 2022, the City Council approved 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. Consistent with the 2024
Parking Rate Study, the proposed ordinance removes the future July 1, 2025, rate
increase.
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Item 5j
Additionally, the proposed ordinance includes a reduction of on-street hourly rates from
$4 to $2.75 for the core zone, and from $3 to $2.25 for the fringe areas.
Finally, the proposed ordinance also removes tier-based parking rates, consistent with
recommendations from the 2024 Parking Rate Study, as they are difficult to communicate
and understand and there remains uncertainty around the ability of existing technologies
to support implementation.
If adopted, the proposed ordinance will become effective on July 8, 2024.
Previous Council Action
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
On November 7, 2023, the City Council approved a Request for Proposals to
complete a Parking Rate Study. Action items also included adopting Resolution
No. 11456 authorizing free parking in the structures for the first hour each day, all
day on Sundays, and during the holiday parade, from November 23, 2 023 to June
30, 2025. Additional direction included that staff bring back an ordinance to forego
the on-street parking rate increase originally planned for July 1, 2025.
On May 14, 2024, the City Council introduced Ordinance No. 1735 (2024 Series),
amending Title 10 Chapter 52 of the Municipal Code to remove the parking rate
increase planned for July 1, 2025, and reduce on -street and surface lot parking
rates. Action also included adoption of Resolution 11493 reducing the rates for the
City’s parking structures and parking permits. Additionally, Council directed staff
to implement program and operational changes including:
o Reducing to one mobile payment app
o Expand on-street core time limits from 2 to 3 hours
o Validation program enhancements
o Update signs improving user experience incorporating changes
o Promotional discounts thru single vendor app
o Transition to updated gated system for all structures
Public Engagement
In accordance with the City’s noticing requirements for proposing amendments to the
Municipal Code, a legal ad was published in The New Times on May 4, 2024, 10 days
prior to introduction of the ordinance and an additional legal ad will be published on May
30, 2024, 5 days prior to final adoption. Additionally, contents of the ads will be published
to the City’s website, with e-notifications sent to subscribers of City News. The public will
have an opportunity to provide public comment in writing prior to the meeting or as public
comment during the meeting. The Council Agenda Report for the May 14, 2024 Special
Meeting discusses the extensive community outreach and engagement efforts completed
as part of the parking rate study.
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Item 5j
CONCURRENCE
The City’s Attorney’s Office and Finance Department concur with staff’s recommendation.
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 $N/A $N/A $N/A $N/A
Table 1 below identifies the total potential revenue, expenditures, and changes in financial
position for the approved rates 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.
The forecast indicates a sustainable Parking Fund. Recommended program and
operational changes are not included in these forecasts as they are assumed to have a
minor or minimal financial impacts. Operational and rate changes will be closely
monitored and reported to Council as part of the City’s existing financial reporting process.
Table 1: Fiscal Impacts of Council Approved On-Street Rates
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
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
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Item 5j
ALTERNATIVES
1. Modify the ordinance as proposed. The City Council may modify the ordinance
before adoption. Depending on the type of changes proposed, modification of the
ordinance may require reintroduction and then adoption during subsequent public
hearings, which will delay implementation of the ordinance .
2. Do not adopt the 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.
ATTACHMENTS
A - Ordinance No. 1735 (2024 Series)
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O 1735
ORDINANCE NO. 1735 (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:
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Ordinance No. 1735 (2024 Series) Page 2
O 1735
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 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 in municipal lots
shall be two dollars and seventy-five cents per hour effective July 8, 2024.
D. 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.
(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. 1735 (2024 Series) Page 3
O 1735
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 14th day of May 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
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Ordinance No. 1735 (2024 Series) Page 4
O 1735
Exhibit A
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1
Parking Rate Study Implementation
June 4, 2024
2
Parking Rate Study Implementation Schedule
June
•Notices will go out to existing garage permit holders
•Purchase of July garage permits will be available starting June 17
July 1st
•Reduced garage structure permit rates start ($45)
•3-hour time-limit on-street scheduled to be posted and programmed
•Reduced price validation ($1 per hour) will be available for purchase
•Rate reduction testing begins for on-street and structure rates
•Modified enforcement between July 1 -July 8
July 8th
•Reduced rates for on-street and structures will officially begin
3
Operational Changes
Summer 2024
•Evaluate and implement courtesy parking options at Library and Civic Center
•Begin preparation of Technology Roadmap, with frequent DT SLO Task Force check-
ins
•Reduce to 1 Mobile App -Request best and final offer from existing app vendors
•Implement Sign Plan (Phase 1) with single app vendor
•Start selection process for vendors for updated gating systems
•Discuss short list of gating system options and vendors with DT SLO Task Force
Winter 2025
•Technology Roadmap presented to Council
•Updated Gated systems contracted
•Comprehensive Sign Plan update (Phase 2)
4
Marketing & Communications
Summer 2024 (June, July & August):
•Updated business toolkit (developed in coordination with DT SLO
businesses)distributed
•Hourly rate reduction promotions
•‘Support Local’ promotions to incentivize customers to come
downtown
•A campaign promoting garage parking Fall 2024: (September,
October & November):
•Roll out the single app information
•Special promotions for street parking w/promotional discounts via the
app
Winter 2024 (November & December):
•Free parking for the holidays
•Buy Local Bonus promotions
Spring/summer 2025:
•Consistent gated technology at all parking garages
•Fun parking validation promotions and giveaways