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HomeMy WebLinkAbout06-12-2012 b3 2012 parking fund reviewi counci lacen Oa Repout M eeting Date June 12, 201 2 Item Number B 3 C I T Y O F S A N L U I S O B I S P O FROM : Jay Walter, Director of Public Work s Prepared By : Robert Horch, Parking Services Manage r SUBJECT : PARKING FUND REVIEW 201 2 RECOMMENDATION S 1.Review and discuss the 2012 annual Parking Fund Review . 2.Conceptually approve the Parking Enterprise Fund budget of 2012-13, with final action on June 19, 2012 with the adoption of the. 201 .1-13 Financial Plan Supplement . DISCUSSION The Parking Fund is healthy and can cover its current and anticipated expenses, capital projects , and debt service obligations while maintaining at least 20%minimum working capital (reserve) pe r City policy. The fund started this fiscal year with over $6 .6 million dollars in working capital . Several revenue increases were approved last year to help secure funding for the proposed Palm - Nipomo parking structure which will be needed in the next five to seven years because of the los s of City's parking supply due to redevelopment and increased parking demand downtown. Parking revenues appear to be slightly below projections for 2011-12 .This is due to delays t o original revenue projection dates for the implementing Sunday parking, installation of the credi t card capable meters, and the delay in neighborhood enforcement . The credit card capable meter s and parking enforcement officer have slightly affected revenue projections as staff had gauged a higher revenue generation based upon an earlier implementation dates . In this fund review, a fe w modifications have been made to adjust for the actual implementation dates and changed projec t deliveries . The Chinatown project assumptions were modified to reflect the new "phased" approac h to that project . A Significant Operating Program Change (SOPC) was added to provide for th e Deputy Director leave coverage . The fund analysis also continues to show a projection of bondin g for $15 million dollars for the Palm-Nipomo parking structure without increasing the projected deb t service payments . The Parking Fund's expense for the Cost Allocation Plan was slightly reduce d based on the adoption of the newest plan . These changes are relatively minor and do no t substantially impact the fund . Parking Accomplishments in 2011-1 2 Although the Fund Review is focused on financial and budgetary information, it is important t o look back at the accomplishments that have occurred during this past fiscal year .Council's approval of the Parking Fund budget allows the City to provide improved services and support . The following is a list of highlights that Parking Services have been able to accomplish in the 2011 - 12 fiscal year . B3-1 Parking Fund Review 2012 Page2 1.Resurfaced parking lots at Railroad Square . 2.Began implementation of the Public Works Assessment . 3.Established new Downtown "super-core" with 400 credit card capable parking meters . 4.Assisted and participated in the Neighborhood Wellness Major City Goal . 5.Participated in the Downtown Maintenance project . 6.Began charging for residential district parking permits . 7.Implemented Sunday Parking Services . 8.Hired and trained new parking staff. 9.Assisted with the Safe Night Life Parking and parking updates for RVs and over-size d vehicle parking . 10.The Parking Manager assisted in coverage for the Deputy Director of Public Works . 11.The Parking Manager continued to represent the City as the Downtown Champion . Parking Revenues Last year City Council approved several revenue increases including charging on Sundays, a new super-core area with credit card capable parking meters, weekend residential parking enforcement , and some minor fine/fee increases . Parking revenues for 2011-12 are anticipated to be less tha n projections by about $200,000 . This is primarily due to delays in implementing Sunday parking, th e new credit card capable meters, and a change in the schedule of the Major City Goal fo r Neighborhood Wellness . Expenditures will also be slightly less due to the delay in starting up the neighborhood enforcement program . Sunday parking was projected to begin in September 2011 but started in June 2012 . The credit card meters and rate increase were projected to begin in Novembe r 2011 but instead started in March 2012 . The part-time parking officer assigned to enforcing in residential neighborhoods was supposed to start in February 2012 but full enforcement started in May 2012 . All three of these projects are now operational and staff anticipates that revenue projections will meet revenue projections in the coming year . Since these projects were delayed , there will also be lower expenses for costs associated with the projects . As of May 16, 2012, with approximately 2 months of being in service, these new meters hav e brought in $153,985 of gross revenues . Roughly 30% of that revenue was made by credit car d payments . The percentage of credit card use is anticipated to increase in the coming months as mor e of the public feel comfortable paying by credit card at a meter . It is too early to tell whether tha t percentage will increase as high as other cities have experienced, which can be as high as 50%. We are seeing a 20% increase in revenue with the higher hourly rate of $1 .50 in the super-core . With the additional credit card payment option, revenues for these meters will increase by at least 20 % for FY 2013 . Staff continues to monitor the meter use and will be performing an in-depth analysi s of the new meters as their use stabilizes . We are getting favorable feedback by many on th e convenience of using a credit card at the meters . Table 1 shows Parking revenue trends with actuals from the three previous fiscal years, a projectio n for this year, and the budgeted amounts for the two years of this fmancial plan period . Parking fine s and investments are continuing to show a decline . Fines have declined because the City is issuin g fewer parking citations city wide due to higher levels of compliance . Staff believes this is becaus e the public is less inclined to risk a parking citation because they cannot afford it in these toug h B3-2 Parking Fund Review 2012 Page 3 economic times . With the State & County surcharges of $13 added to the City's fine,the public i s even more vigilant in avoiding parking violations . Fine revenues have also declined due to the transfer of Police Department-issued parking fines to the General Fund in 2009 . Other revenu e sources are fairly stable by comparison . Table 1 : Parking Revenue Trends 2008-09 2009-10 2010-11 2011-12 2011-12 20 12-1 3 Revenues Actual Actual Actual Projected 13ud2et 13udgc t Metered Lots 362,800 392,100 402,900 436,400 4 4 500 415 .00 0 Meters on Street 1,036,000 1,141,900 1,193,000 1,212,900 1 .~0 101) I -I ',6 .5(1 0 Structures 743,000 713,700 739,500 758,000 814 ,,O o Long-Term Parking 376,900 349,900 364,200 398,500 4 .(()(i Leases 216,400 204,800 209,300 202,600 2 1(1 .200 o ,3()(i Parking In-Lieu 15,100 12,800 15,400 5,700 21 .U()O =. 82i (i Parking Fines 770,500 690,500 645,500 587,000 uu,')(I) 00-1 o Investments 442,100 292,200 165,400 244,500 1 32(io0 ~~.uO(i Totals 3,962,800 3,797,900 3,735,200 3,845,600 4,030 .500 7,586 .800 Again, the overall downturn in revenues is relatively modest in comparison to other non-parkin g City revenue sources . Staff anticipates increased revenues for FY 2012-13 due to a full year o f credit card meters, Sunday parking, and neighborhood parking enforcement . In 2012-13 the fund will receive almost $3 .4 million in In-Lieu fees from the Garden Street Terraces and Chinatow n projects if they stay on schedule . This is for both the mitigation for the lost parking spaces in City owned lots and for new unmet parking demand . In the same year, lease revenues will increase b y $165,000 for the repayment of the $2 .4 million loan to the Garden Street Terraces development . Significant Operating Program Change s Due to the extended leave of the Deputy Director of Public Works, there is an additional request fo r $22,400 in contract services for 2012-13 . The Parking Manager has been assigned 1/3 of th e Deputy Director's management responsibilities . Additional contract services can be used a s explained in the SOPC as provided in the 2012-13 Budget Supplement (Attachment 2). Budget Balancing Strategie s In order to assist in the overall effort to have a more sustainable budget, the Parking Fund continue s to look for opportunities to reduce spending and make minor revenue adjustments . Managemen t salary concessions have occurred at the beginning of the 2012 . Based on salary and benefit update s provided by Finance, 6 .8% salary and benefits concessions from SLOCEA, assumed to commenc e on January 1, 2013,and increased City PERS contributions commencing July 1, 2013 are integrate d into the fund review . There will be additional year end savings for fiscal year 2011-12 due to lower expenses because of the delays in the implementation of Sunday parking and the credit card meters . Timing of Redevelopment Project s There are three major projects that will continue to affect the Parking Fund in the next few years : the Garden Street Terraces project, the Chinatown project, and the Palm-Nipomo parking structur e project . The Garden Street Terrace project is forecast to begin in January 2013 . The first phase o f Chinatown is forecast in May 2013 . The Garden Street Terraces and Chinatown projects redevelo p city-owned parking lots creating a loss of parking supply while increasing downtown parkin g Parking Fund Review 2012 Page4 demand. This will ultimately trigger the need for the City to construct the Palm-Nipomo parkin g structure so there is not a substantial loss of available downtown parking . Along with the temporary delay with the Environmental Impact Report (EIR) process and the phasing of the Chinatow n project it is unlikely that the City will need to start construction within the five year period of thi s Fund Review . Existing capacity in current structures and the delays in the redevelopment project s allow a more prudent construction schedule for the Palm-Nipomo project . However, staff ha s included the project in the fund review (forecast to start construction in July 2015 and open i n January 2017) to show its financial impact if it is built sooner rather than later . Since it is difficul t for staff to know exactly when this structure will be needed, staff has based the forecast on th e soonest time frame that construction could occur . If the projects occur later, then it will only benefi t the Parking Fund financially since major expenses are deferred. As Council is aware, the Chinatown project assumptions have changed since the last fund review . The agreement was updated and the project is now phased with the Monterey Street developmen t occurring first and the Hotel development occurring five to eight years later . The key change s include: 1.The City retains part of the reconfigured parking lots 3 and 11 until the hotel is constructe d allowing for the Parking Fund to generate more revenues for a few years . 2.The "phased" approach lowers the applicant's payment of parking space replacemen t mitigation for the net amount of lost parking spaces for parking lot realignment and loss o f parking near Monterey Street . 3.The applicant will now be responsible for any unmet parking demand in the form of parkin g in-lieu fees for the Monterey Street development . 4.The "phased" approach to Chinatown may further postpone the construction and expense s associated with the Palm-Nipomo parking structure . FISCAL IMPAC T Attached to this report is a detailed analysis of the Parking Fund revenues, expenditures, an d changes in financial position. It includes the key assumptions used in preparing this review . Consistent with the analysis presented to the Council with the 2011-13 Financial Plan, there i s sufficient funding for the operations, capital projects, and debt service needs of the Parking Fund . ALTERNATIV E Council at its discretion can adopt all or part of the of the requested significant operating progra m changes, capital improvement projects,or revenue enhancements presented in this report . ATTACHMENT S 1.2012 Parking Fund Analysi s 2.Significant Operating Program Chang e T :\Council Agenda Reports\2012\2012-06-12\Parking Fund Review 2011-12 (Walter-Horch-Mudgett)\CAR 2012 Pkg Fun d Review .doc ATTACHMENT 1 Parking Enterprise Fun d 2012-13 Financial Plan Supplemen t Parking Enterprise Fun d2012Fund Analysi s June 12,201 2 B3-5 Attachment 1 Page 2 2012 Parking Fun d TABLE OF CONTENT S Contents I . OVERVIEW 3 II . 2011-13 FINANCIAL PLAN 3 a.Summary of Operating Programs 3 b.Capital Improvement Programs 3 c.Revenues 4 d.Debt Service 5 III . ASSUMPTIONS 5 1.General Assumptions 5 2.Parking Lots 5 3.Street Parking 6 4.Parking Structures 6 5.Long Term Parking 6 6.Parking Leases 7 7.Parking In-Lieu 7 8.Investment Earnings 7 Parking Fines 8 10.New Demand & Residential 8 11.Transportation & General Government Expenses 8 12.Capital Improvement Plan (CIP) Expenses 9 13.Debt Service 9 IV . EXHIBIT A — 2011-13 Changes in Financial Position 10 Attachment 1 Page 3 City O f san Luis oBisp o 2012 Parking Fund Repor t I.OVERVIEW This report presents the financial condition of the Parking Fund, based on the revise d 2011-13 Financial Plan for 2012-13 operating program budgets, and recommend s program and capital requests to address the identified needs in the Parking and Acces s Plan .The Chinatown and Garden Street Terraces projects have been programmed int o this budget cycle, however these projects may or may not occur in the time frame s projected . The Palm Nipomo parking structure environmental process has bee n temporary delayed due to overnight parking restrictions of large vehicles and R .V . vehicles . However, the Palm-Nipomo parking structure has been programmed into F Y 2015-16 to show the future fiscal impact . During the prior year, 2014-15 the debt servic e for the 842 Palm Street and original Marsh Street structures conclude . II.2011-13 FINANCIAL PLA N a.Summary of Operating Program s The 2011-13 revised operating budget projections for the Parking Service s Enterprise Fund . Operating cost information for the Parking Services program i s provided on page D-83 of the 2011-13 Financial Plan . Staffing $1,009,100 Contract Services $471,800 Other Operating Expenses $160,000 Minor Capital $- Total Parking Services $1,640,900 1 .953,0110 2 .0032001,993,80 0 General Government $549,300 or)$482,300 Total Parking Services Operating $2,190,200 2 .5I6,7(1(1 II,500 $2,476,100 The Fund Analysis includes a reduction in staffing expenditures as a result o f employee concessions and increase in contract costs for the purchase and ongoin g services of the new credit card parking meters, one-time contract services increas e of $22,400 to support workload efforts during an interim leave of the Deput y Director of Public Works . b.Capital Improvement Program s The table below shows the 2011-13 Capital Improvement Program an d assumptions for capital projects . The 2011-12 fiscal year included the purchas e and installation of the credit card accepting meters in the Downtown . The 2012 - 13 fiscal year has two capital projects projected for parking lot resurfacing and th e painting of the Marsh Street Parking structure . ZUIU-AI.)1I-12 2012-13 °-~,flT_-1 4 tual ualvtct 13ud ct Prt~jcrtCt l 1,205,10 0 568,100 220,60 0 B3-7 Attachment 1 Page 4 The Palm-Nipomo Parking Structure is projected for 2015-16 fiscal year, th e earliest date at which construction could occur . Parkin Capital Program 611-12 2ti1x-13 2i1 -I1 15 24415-1 Iluclet ud_..!Prol_~t,~i I'~oircte,l Projecte d Parking Lot Resurfacing (lots 2,3,11 ) Marsh Street Parking Structure Paintin g Replace Go-4 - Enforcement Vehicle s City Website Upgrade MS Office Replacement Credit Card Meters Firewall Web filter/Securit y Network Equip . Replacement Radio Replacement (handheld & mobile) Palm Nipomo Constructio n Carryover from Previous Years Debt Service Projections in Out Years* 95,00 0 $60,00 0 $5,00 0 $3,100 $9,50 0 $9,500 $ 20,000,000 $71,500 $299,100 Total Parking Capital Program 5 2,136,900 S 195,000 $ 234,600 $19,000 $ 20,299,10 0 Revenue s Parking Fund revenues are projected to increase in FY 2012-13 as a result o f several programmatic changes such as the addition of Sunday parking, a ne w super-core area with credit card capable parking meters, weekend residentia l parking enforcement, and some minor fine/fee increases . 64-lit 41,'o l 11;it,<`s xP l,=1a :e;l_n.J~et P I Pirated Ir,aed Revenues Service Charge s Parking Meter Collection s Lots 392,100 402,900 332,300 335,700 358,50 0 Streets 1,141,900 1,193,0001,451,000 1,465,500 1,612,10 0 Parking Structure Collections 713,700 739,500 '!!914,500 923,600 1,016,00 0 Long-Term Parking Revenues 349,900 364,200 382,100 385,900 437,60 0 Lease Revenues 204,800 209,300 377,400 379,600 401,00 0 Parking In-Lieu Fees 12,800 15,400 21,400 21,900 22,300 Other Service Charges (9,600)900 100 100 10 0 Total Service Charges 2,805,600 2,925,200 3,478,800 3,512,300 3,847,60 0 Investment and Property Revenues 292,200 165,400 108,600 111,300 130,40 0 Fines and Forfeitures 690,500 645,500 ~ r 649,700 656,200 623,60 0 Other Revenues - New Demand (6,000)70,700 118,800 167,00 0 Total Revenues 3,788,300 3,730,100 4,01x .5 ,I 5 t,,tiiei 4,307,800 4,398,600 4,768,600 Attachment 1 Page 5 d . Debt Service Debt Service for the Palm- Nipomo Parking Structure is scheduled to being th e earliest date the project could occur in 2015-16 . 1 1 I3lld„el n13-1 PrOjcc1cI 2(114I ~ Proic.1 'Ul I ( Pr01CCte d 54-1 .1(1(1 $532,800 $-$ 423 .i1iio $422,200 $421,400 $420,60 0 54Su11 $548,900 $546,300 $548,900 $$-$1,500,00 0 1().111!0 $10,000 $10,000 $10,000 I .S25,600 $1,513,900 $977,700 $2,479,500 III. ASSUMPTION S The following assumptions have been programmed into the long term forecast of th e Parking Fund. -The Chinatown and Garden Street Terraces projects impact three of th e City's parking lots . The dates of when these projects occur are staff's estimate of th e soonest they could occur . If they occur later than projected it will allow for additiona l revenues to accumulate for the Fund . 1.General Assumption s Minimum working capital (reserve) should equal at least 20% of the total Operatin g Program expenditures according to the City's fiscal policy and Standard and Poor's ratin g criteria . 2.Parking Lot s a.Assumes a conservative 1% growth in parking demand . b.Assumes increases to parking meter rates for lots 2, 3, 4, and 11 in 2011-12 from $1 .25 to $1 .50 (20% increase) and assumes additional revenue of approximatel y 20%with the meters that accept credit cards . (Approved by City Council on Apri l 5,2011). c.Assumes expansion of Sunday parking services beginning in 2011-12 .(Approve d by City Council on April 5,2011). d.10% rate increases are assumed for 2015-16,and every 3 years thereafter fo r periodic rate adjustments . e.The Memorandum of Agreement between the City of San Luis Obispo an d Garden Street SLO Partners, L .P ., assumes that all parking spaces for Lot 2 will be eliminated when the project begins . The soonest this will occur is Januar y 2013 . All direct revenues will cease for this location in January 2013 . f.The first phase of the Chinatown project calls for removal of the Yung building and reconfiguration of parking spaces in Lot 11 . The lot will be closed for 6 to 8 weeks of construction but no revenue loss is expected . The adjacent parking Lot 3 and surrounding street meters will be available for the lost parking supply and th e revenue will shift to these locations . (Assumed to occur in 2012-13). g.The first phase of the Chinatown project that removes parking for the Montere y Street development will reduce parking revenues in parking lots 3 & 11 . It i s I'arkiu Dcht' crci (H I-~' 842 Palm & Marsh until Jun 2014 Marsh Expansion until Aug 203 1 919 Palm until Jun 203 6 Palm-Nipomo (15mi1)until 2045 Dispatch Center Upgrade until J u n 2039 1 i i J i m I,5 '-7,Soo B3-9 Attachment 1 Page 6 assumed that there will be approximately a 33% loss of parking revenue in Lot 3 and a 22% loss of parking revenue in Lot 11 . (Assumed to occur in May 2013 ) h.It is anticipated that some of the drivers who would have parked in Lots 2, 3, and 11 will instead park in garages due to the loss of lot parking spots . With the firs t hour free policy in garages, it is anticipated that only 50% of the revenue s formally tied to lots 2, 3, and 11 will be retained through garage parking fees . i.Parking revenues from Lot 14 will cease due to the construction of the Palm - Nipomo parking structure in 2015-16 . j.It is anticipated that the drivers who park in Lot 14 will shift to buying 10 Hou r Meter Permits when Palm-Nipomo construction begins on the site of Lot 14 i n 2015-16 . 3 . Street Parkin g a.Assumes a conservative 1% growth in parking demand . b.10% rate increases are assumed for 2015-16, and every 3 years thereafter fo r periodic rate adjustments . c.Assumes increases to parking meter rates for lots approximately 198 on-stree t meters in 2011-12 from $1 .25 to $1 .50 (20% increase) and assumes additiona l revenue of approximately 20% with the meters that accept credit cards . (Approved by City Council on April 5, 2011). d.Assumes expansion of Sunday parking services beginning in 2011-12 . (Approved by City Council on April 5, 2011 ) 4 . Parking Structures a.Assumes a conservative 1% growth in parking demand . b.10% rate increases are assumed for 2015-16, and every 3 years thereafter fo r periodic rate adjustments . c.Assumes expansion of Sunday parking services beginning in 2011-12 . (Approve d by City Council on April 5, 2011 ) d.It is anticipated that some of the drivers who would have parked in Lots 2, 3, an d 11 will instead park in garages due to the loss of lot parking spots . Due to the first hour free policy in garages, it is anticipated that only 50% of the revenue s formerly tied to lots 2, 3, and 11 will be retained through garage parking fees . 5 . Long Term Parkin g a.Assumes a conservative 1% growth in parking demand . b.10% rate increases are assumed for 2015-16, and every 3 years thereafter fo r periodic rate adjustments . c.10-hour meter permit fees increase by $13,100 for lost parking in Lot 14 i n 2015-16 . d.Commercial Loading Zone permits will increase by $1,785 beginning in 2011-12 . e.Residential permit district permits will increase by $15,120 beginning in 2011-12 . B3-10 Attachment 1 Page 7 6 . Parking Lease s a.Assumes a conservative 1% growth in parking demand . b.Lease revenue of approximately $2,000 a year for trash leases in parking lot 2 wil l cease beginning in January 2013 due to the Garden Street Terraces Project . ($1,000 in 2012-13 and $1,000 in 2013-14). c.Section 16 of the Memorandum of Agreement between the City of San Lui s Obispo and Garden Street SLO Partners, L .P . states that the Parking Fund wil l loan the developer $2 .4 Million in 2012-13 . In 2012-13, the developer will begi n repayment to the City Parking Fund by paying approximately $165,000 per yea r for 30 years . d.An increase in lease revenues for 610 Monterey is estimated at $15,900 annually , including minor expenses and costs for the Housing Authority, beginning in th e 2009-10 fiscal year . 7 .Parking In-Lie u a.Garden Street in-lieu fees are a result of lost parking spots due to the Garde n Street Terraces Project . Section 14 of the Memorandum of Agreement betwee n the City of San Luis Obispo and Garden Street SLO Partners, L .P ., states that th e parking in-lieu fee will be $1,860,000 (62 parking spaces x $30,000/parkin g space) for the spaces lost due to the Garden Street Terrace Project . Estimated t o occur in 2012-13 . b.According to the agreement for the Chinatown project, the developer i s responsible for payment of In-Lieu fees for the unmet parking demand of th e Monterey Street development . Staff estimates that number at 45 spaces . (45 x 17,796 = 800,820). Estimated to occur in 2012-13 . c.According to the agreement for the Chinatown and the EIR mitigation measur e the developer is responsible for the lost parking spots due to the Chinatow n Project. For the Monterey Street phase the estimated net loss of parking is for 4 1 spaces . (41 x 17,072 = 699,952). Estimated to occur in 2012-13 . d.San Luis Obispo Resolution No . 9960, Section 4 states that the parking in-lieu fe e will be adjusted on July 1 of each year by the annual percentage change in th e U .S . Bureau of Labor Statistics consumer price index for all urban consumers fo r the prior calendar year . For 2011-12 and 2012-13 a 2% increase is assumed , 1 .5% for 2013-14, 2% for 2014-15 and 2 .5% for 2015-16 . The one-time payment for the replacement of the on-site public parking removed for Garden Stree t Terrace Project in Lot 2 is not adjusted by CPI according to clause 14 of th e Memorandum of Agreement . The one-time payment for the replacement o f public parking removed for the Chinatown Project is adjusted by CPI according t o the Agreement . 8 . Investment Earning s a . Assumes projected interest earnings of 2% annually . Attachment 1 Page 8 Parking Fine s a.Transfer of parking fines to the Police Department is approximately $94,20 0 annually . b.State and County surcharges of $13 per paid parking citation is added the n deducted from fine revenues . c.A total 9% decrease in fine revenues is due to loss of parking spaces resultin g from the construction of the Garden Street Terraces Project starting in Januar y 2013 . The decrease is 4 .5% in 2012-13 and 4 .5% in 2013-14 . d.Parking fine revenues will decrease by 2 .07% due to loss of parking spot s resulting from the construction of the Chinatown Project-Monterey Stree t development starting in May 2013 . e.A total 4% decrease in fine revenues due to the loss of Lot 14 for the constructio n of Palm-Nipomo parking structure in 2015-16 . f.10% rate increases is assumed for 2015-16, and every 3 years thereafter fo r periodic rate adjustments . g.Assumes a conservative 1% growth in parking demand . h.Parking fines attributed to the Neighborhood Wellness Major City Goal wil l provide $15,300 in 2011-12 and $22,900 in 2012-13 . 10 . New Demand &Residential a.Based on proposed new projects in downtown San Luis Obispo as provided by th e Planning Department, actual land uses are run through a demand model and ar e reduced by parking available on site . b.The average rate for the prior 3 years of roughly $1 .00 per vehicle in structures , assumed new demand will either compress into existing demand or go directly t o the structures . c.The scheduled rate increase in 2011-12 and the subsequent increases of 10 % every three years beginning in 2014-15 are assumed in the new demand . d.It is estimated that there is a base number of 500 parkers in the residential area s surrounding the downtown, assumes 5% capture in the City's facilities, times 1 2 months (500*0 .05*12=300). e.Assumes that monthly parking will be moved into the structures at a rate of $7 5 per month . f.Due to the downturn in the economy the new demand and residential impacts ar e anticipated to begin in 2013-14 . 11 . Transportation &General Government Expense s a.Transportation expenses increase by $64,700 for one-half of the staffing of th e Public Works Transportation Planner position beginning in 2011-12 . b.Transportation expenses will increase by $24,200 in 2011-12 and $38,000 i n 2012-13 for the part-time parking officer for the Neighborhood Wellness Majo r City Council Goal . B3-12 Attachment 1 Page 9 c.Transportation expenses will increase by $73,800 in 2011-12 and $72,400 i n 2012-13 for expansion of Sunday parking services and for the 400 new credit car d meters in the heart of the downtown . d.Transportation expenses attributed to parking lot 2 will decrease by $11,500 i n 2012-13 and by $17,500 in 2013-14 thereafter . e.Transportation expenses attributed to parking lots 3 and 11 will decrease b y $2,200 in 2012-13 and $3,300 in 2013-14 thereafter . f.Transportation expenses attributed to parking lot 14 will decrease by $6,500 i n 2015-16 and thereafter . Cost adjustments reflect projected annual CPI increases . General Government expenses were reduced by approximately $14,000 annuall y to $533,700 in the 2011-12 fiscal year due to recent changes in the city's methodology for calculating direct and indirect costs in the Cost Allocation Plan . 12 . Capital Improvement Plan (CIP) Expenses a.The Palm Nipomo parking structure construction is estimated at $20 million in 2015-16 . There will be a $5,000,000 contribution from working capital an d $15,000,000 proceeds from debt financing or Bond Issuance . b.Percentage expense increases per year are based on the historical annual percentage change in the U .S . Bureau of Labor Statistics Consumer Price Index . In 2009-10 and 2010-11 are assumed to experience 2%.For 2011-12 onward,a very conservative 4% expense increase per year is assumed (based on the 20 yea r historical average of the Consumer Price Index of 3%, as reported by the Burea u of Labor Statistics, plus an additional cushion of 1%). 13 . Debt Servic e a . Assumes a 30-year level debt service at 7%, no capitalized interest, net proceeds of $15,000,000 and bond issuance on July 1, 2015 . Interest payment and principa l payment is due beginning in 2015-16, estimated at $1 .5 million annually . g . h . Attachment 1 Page 1 0 IV .EXHIBIT A – 2011-13 Changes in Financial Positio n 2011-13 PARKING FUN D FINANCIAL SCHEDULES CHANGESINFINANCIAL POSITION - PARKING FUND ival 2011-1 13u .i<<ci Prui~ct~d 1,1 I'micete~l PIoh.,vt i 1L3LI.1 1 Revenue s Service Charge s Parking Meter Collection s Lots 392,100 402,900 332,300 335,700 358,500415.00 ) Streets 1,141;900 - 1,193,000 1 .-1,,nu 1,451,000 1,465,500 1,612,100 Parking Structure Collections 713,700 739,500 ).g un 914,500 923,600 1,016,000 Long-Term Parking Revenues 349,900 364,200 )1,382,100 385,900 437,600 Lease Revenues 204,800 209,300 ~li~_~!u,;un 377,400 379,600 401,000 Parking In-Lieu Fees 12,800 15,400 uun 21,400 21,900 22,300 Other Service Charges (9,600)900 1 n u~100 .100 100 Total Service Charges 2,805,600 2,925,200 3,478,800 3,512,300 3,847,600 Investment and Property Revenues 292,200 165,400 1 108,600 111,300 130,400 Fines and Forfeitures 690,500 645,500 649,700 656,200 623,600 Other Revenues - New Demand (6,000)70,700 118,800 167 ;00 0 Total Revenues 3,788,300 3,730,100 4,307,800 4,398,600 4,768,60 0 Expenditures Operating Programs Transportation 1,603,900 1,640,900 1,993,800 2,033,700 2,078,00 0 General Government 538,500 549,300 482,300 465,400 477,00 0 Total Operating Programs 2,142,400 2,190,200 2 I I ->u(1 2,476,100 2,499,100 2,555,00 0 Capital Improvement Plan Projects 100,200 624,100 !;.n■n,234,600 19,000 20,299,10 0 Debt Service 1,522,000 1,523,000 1,513,900 977,700 2,479,50 0 Total Expenditures 3,764,600 4,337,300 1 0 4,224,600 3,495,800 25,333,60 0 Other Sources (Uses) Proceeds from Debt Financing $15,000,00 0 Other Sources (Uses)17,200 (82,400)Iuni)l II Potential MOA Adjustments 50,700 51,200 51,700 Total Other Sources (Uses)17,200 (82,400)1 .'+un 50,700 51,200 15,051,700 Revenues and Other Sources Over (Under ) Expenditures and Other Uses 40,900 (689,600)133,900 954,000 (5,513,300) Working Capital, Beginning of Year 7,250,900 7,291,800 5,431,100 5,565,000 6,519,000 Working Capital, End of Year 7,291,800 6,602,200 I,I5,565,000 6,519,000 1,005,700 Min Required WC 428,480 438,040 503,340 502,3uu 495,220 499,820 511,000 B3-1 5 GENERAL GOVERNMEN T DEPUTY DIRECTOR LEAVE COVERAGE Request Summar y Adding contract services to provide critical program support during an extended leave of absence of the Deput y Director of Public Works position will cost $85,100 in contract services in 2012-13 . Key Objective s 1.Ensuring staff time is available to implement the Major City Goals of Transportation Congestion Relief an d Neighborhood Wellness . 2.Ensuring staff time is available to implement transportation capital improvement projects . 3.Ensuring staff time is available to assist with the Land Use and Circulation Element updates . 4.Maintaining compliance with grant implementation deadlines and requirements . 5.Developing grant and low interest loan opportunities will assist to maximize capital infrastructur e improvements and minimize expenses . 6.Ensuring implementation of the City's annual Traffic Operations Report . 7.Ensuring implementation of the City's Neighborhood Traffic Management Programs . 8.Completing the Los Osos Valley Road Interchange project . 9.Maintaining timely responses to citizen requests . 10.Completing the Bicycle Transportation Plan Update to remain eligible for Bicycle Transportation grants . Existing Situation : Factors Driving the Need for Chang e In September 2011, the Deputy Director of Public Works took an extended leave of absence ; staff expects him t o return to full-time work by January 2013 . The Deputy Director of Public Works position is responsible for planning, organizing, overseeing and reviewin g programs and activities for all transportation programs, including : transportation planning, traffic engineering , parking, bicycle, pedestrian, and public transit . Additionally this position is involved on a daily basis with th e private sector and reviews development for compliance with codes, ordinances and standards . This higher-leve l position is a key member of the departmental management team also serves as a departmental and City liaison an d provides effective customer service to the community and project applicants' on transportation and developmen t matters . This position often confers with and advises the City Council, Planning Commission, the Technica l Transportation Advisory Committee and other committees and commissions, developers and a variety o f community and stakeholder groups regarding transportation programs and directs all transportation planning , traffic engineering, transit, parking and permitting activities. Based upon the assumption that the Deputy Director would be able to return to work by January 2012, staff implemented a temporary rotating workload coverage program in the interim . The current Parking Service s Manager, Transportation Operations Manager and the Principal Transportation Planner assumed rotating coverag e for this position, each for a three-week block of time . During these acting assignments, the managers served i n the Deputy Director capacity attending critical meetings and negotiations with transit, development revie w agencies, planning committees and city departments . The acting roles also served to direct staff in th e implementation of policies, procedures and programs . This additional higher-level workload, on top of th e current workload of their positions, has proven to be an unsustainable long-term model . Recently it has become clear that the Deputy Director will not be returning to work full-time as previousl y anticipated. In response to this delayed return to work, and increasing transportation and development review workload , programs and policies, staff recommends the approval of additional contract services to provide critical progra m support during the absence of the Deputy Director . B3-16 GENERAL GOVERNMEN T DEPUTY DIRECTOR LEAVE COVERAG E Staff is essentially proposing to continue rotating coverage for this absence with the Traffic Operations Manager , Parking Service Manager and Principal Transportation Planner and backfill the shortages caused by thi s methodology with contract services . This represents the most cost effective solution by utilizing existing staff for higher cost functions and augmenting contracting services for lower cost functions . Goal and Policy Link s 1.Major City Goal — Preservation of Essential Services and Fiscal Healt h 2.Major City Goal — Traffic Congestion Relie f 3.Major City Goal — Neighborhood Wellness Program 4.Other Important Council Objectives — Infrastructure Maintenance 5.City of San Luis Obispo Land Use and Circulation Element Update s 6.Other major policies and plans such as the Neighborhood Traffic Management Program, Traffic Safet y Report, Traffic Operations Report, Bicycle Transportation Plan and the Short Range Transit Improvemen t Plan Program Work Complete d Since the onset of leave for the Deputy Director of Public Works - Transportation, staff has assessed th e increasing time constraints with increasing complexities related to the enterprise funds, workload balance, an d constraints facing supervisors and managers . The Deputy Director of Public Works — Transportation position ha s been back-filled on a rotating basis by the Parking Services Manager, Transportation Operations Manager and th e Principal Transportation Planner . These positions are being stretched beyond a level that is sustainable . Work and projects will need to be significantly delayed if additional contract services and support are not provided . Because the Deputy Director has been able to assist on a part time, but limited basis, the primary impact of hi s absence has been project delays due to other staff assuming the Deputy Director duties and assignments . To ensure that the City's highest priority projects remain on schedule, staff has identified the Deputy Directo r workload they have now assumed and the following list of division projects and tasks that could be assisted b y contracting out these services . Transportation Engineering : 170 Hours @ $180/Hr — Augment Contract Services by $30,000 The Traffic Operations Manager has been assigned 1/3 of the Deputy Director's management responsibilities fo r the division including planning, organizing, overseeing, and reviewing all activities in the Transportation & Development review division . In addition to management responsibilities a number of projects and programmati c tasks previously assigned to the Deputy Director have been reassigned to the Traffic Operations Manager such a s acting as traffic engineering lead on the Land Use & Circulation Element update, Broad Street Corridor, Chevro n development and other such high priority development projects . In addition, such tasks as those associated wit h the Los Osos Valley Road Interchange, MD2 development, Prado Road Connection, and implementation o f Neighborhood Wellness and Traffic Congestion Relief major city goals . The Traffic Operations manager has bee n responsible for the liaison functions associated with these reassigned projects and programs including conferrin g and advising City Council, Planning Commission, Technical Advisory Committees, developers and communit y stakeholder groups . The abrupt reassignment of these functions has had a significant impact on City Traffic Engineering services . Th e eight tasks listed below represent the most critical impacts of these reassignments and the necessary hours o f additional contract services to backfill . 1.Traffic Citizen Request : Investigations & Studies — 25 Hours 2.Prepare Grant Applications — 20 Hour s 3 CIP & DevRev Plan Checks — 20 Hours B3-17 GENERAL GOVERNMEN T DEPUTY DIRECTOR LEAVE COVERAG E 4.Traffic Control Review 30 Hour s 5.Laguna Village Shopping Center Monitoring — 10 Hour s 6.Speed Limit Updates — 20 Hours 7.Fixilini NTM Studies — 30 Hour s 8.South & Parker Turn Restriction — 15 Hour s Transportation Planning : 240 Hours @ $80/Hr - Augment Contract Services by $19,20 0 The Principal Transportation Planner has been assigned 1/3 of the Deputy Director's management responsibilitie s for the division including planning, organizing, overseeing, and reviewing all activities in the Transportation & Development Review division .Associated rotational duties include conferring and advising City Council , Planning Commission, advisory bodies, developers and community stakeholder groups .In addition t o management responsibilities, a number of projects and programmatic tasks previously assigned to the Deput y Director have been reassigned to the Principal Transportation Planner including the Los Osos Valley Roa d interchange project, transportation planning lead on the Land Use & Circulation Element update, Cit y representative on SLOCOG's Technical Transportation Advisory Committee, and transportation planning lead o n the Traffic Congestion Relief major city goal . The abrupt reassignment of these functions has had a significant impact on Transportation Planning services . The two tasks listed below represent the most critical impacts of these reassignments and the necessary hours o f additional contract services to backfill . 1.Caltrans Planning grant implementation — 160 Hour s 2.Misc . transportation planning project assistance — 80 Hour s Transit: 150 Hours @ $50/Hr — Augment Contract Services by $7,50 0 The Transit Services Manager is not currently a part of the Deputy Director rotation . However, the Transi t Services Manager has taken a lead role in presenting the City at SLOCOG meetings and hearings previousl y handled by the Deputy Director . Additionally, Transit staff has assisted Transportation Planning by fulfilling some of the duties of the Principal Transportation Planner . This assistance has had an impact on the ability for Transit Services to provide website updates, detour notices, event assistance, bus stop, schedule and rout e evaluations, and bus pass distribution . The two tasks listed below represent the most critical impacts of thi s workload shift . 1.Website maintenance and bus schedule changes -110 Hour s 2.Misc . Transit project assistance — 40 Hour s •Transit event assistance-WOW, Farmers Market, Earth Day etc . •Bus stop condition evaluation (tree trimming, graffiti, etc .) •Posting of detour and rider alerts at bus stop s • Route evaluation check ride s •Restocking bus pass outlets (Albertsons, Chamber & Senior locations ) Parking : 120 Hours- Augment Contract Services by $22,400 The Parking Services Manager has been assigned 1/3 of the Deputy Director's management responsibilities fo r the division including planning, organizing, overseeing, and reviewing all activities in the Transportation & Development review division . In addition to management responsibilities a number of projects and programmati c tasks previously assigned to the Deputy Director have been reassigned to the Parking Services Manager such a s the Public Works responsibilities for implementing the Neighborhood Wellness major city goal . Associate d rotational duties also include associated with these reassigned projects and programs including conferring an d advising City Council, Planning Commission, advisory bodies, developers and community stakeholder groups . The abrupt reassignment of these functions has had a significant impact on Parking Services . The three task s listed below represent the most critical impacts of these reassignments and the necessary hours of additiona l B3-18 GENERAL GOVERNMEN T DEPUTY DIRECTOR LEAVE COVERAG E contract services to backfill. The long term parking restriction issue that received Council direction on May 2012 is not included within this list because Parking staffing impacts are unknown at this time . 1.Railroad Square lease agreement renewals- 60 Hours @ $80/H r 2.Railroad Square parking options -120 Hours @ $120/H r 3.Misc . parking project assistance -40 Hours @ $80/H r Development Review : 80 Hours @ $75/Hr — Augment Contract Services by $6,00 0 The Development Review Supervising Civil Engineer is not currently a part of the Deputy Director rotation . However, the Supervising Civil Engineer in the Development Review division is tasked with reviewing and responding to development project proposals and inquiries at all stages of development . The Supervising Civil Engineer is often asked about process questions, fees, and anticipated requirement s before formal applications are submitted . Currently, the division is reviewing Planning Division applications for impacts, mitigation measures, and conditions, working drawings for building plan submittals and subdivision improvements . The Development Review division relies heavily on the Deputy Director position to convey traffic engineering information needed to anticipated applicatio n requirements for future developments, determine mitigation measures and correctly answer proces s questions . During the Deputy Director absence, Development Review staff has needed to attend thes e traffic/transportation committee meetings and workshops in order to have access to vital traffi c information . This assistance of the Supervising Civil Engineer in the Deputy Director's absence has had an impact o n the ability for the Development Review program to provide timely plancheck reviews, front counte r assistance, and development of conditions of approval, establishing fees and mitigation projects an d overseeing the implementation . The Development Review file management system is key in archivin g correspondence, direction, and prior decisions regarding development . It is important that the divisio n has access to Traffic Engineering Consultation in the absence of the Deputy Director . The two tasks listed below represent the most critical impacts of this workload shift . 1.File Management Coordination of Development files and unsorted files — 40 Hour s 2.Traffic Engineering Consultation, Development Project and Plan Check Reviews - 40 Hour s Environmental Revie w No Environmental Review required . Program Constraints and Limitation s The most significant constraint facing this request is the availability of funding, which if approved would not b e available until July 1, 2012 ;nine months after the Deputy Director first went out on leave . Due to the multi - faceted nature of these work programs, it is difficult for staff to identify one contract or consultant for the majorit y of this work . Staff will need to provide individual contract services and consultants for the significant variety o f program work . Stakeholder s Stakeholders include the Public Works Department staff and the community for which these transportation , transit, parking and development review services support. B3-19 GENERAL GOVERNMEN T DEPUTY DIRECTOR LEAVE COVERAG E Implementation Dat eTask 1 . Obtain approval from Council, advertise for contract services 2 . Seek proposals and award contracts for various projects July 201 2 August 201 2 Key Program Assumption s Funding approved for contract services . Program Manager and Team Support Program Manager .Director of Public Works Project Team Parking Services Manager ; Transportation Operations Manager ; Principal Transportation Manager ; Deputy Director of Public Works ; Transit Manager ; Supervisor Civil Engineer ; Administrative analyst . Alternative s 1 .Continue the Status Quo.The current situation is no longer considered sustainable, as projects are fallin g behind . There is not enough capacity in the three rotating managers to provide backfill for one full tim e Deputy Director position without lower level project & operations relief in each of the workgroups . Even with so many tasks delegated throughout the department, it has become more difficult to accomplish all th e work required to adequately meet the department's complex fiscal and analytic needs . A significant reduction in responsiveness and customer service would result with serious workload impacts on existing staff . Defer or Re-Phase the Request.To defer this request for the 2013-15 Financial Plan would cause furthe r reduction in the level of services and programs provided to the community . It is unknown when the Deput y Director will return from his leave . The interim rotating support staff model is unsustainable . A delay i n providing additional contract services to support the transportation and development review workload woul d result in a reduction in responsiveness and customer service would result with serious workload impacts o n existing staff and significant delays and deferring of transportation-related programs and services . 3.Change the Scope ofRequest.Council could choose to provide contract services funding for only the highes t priority of projects . This alternative is not recommended because it would not make the best use of limite d City funds . In developing this request staff identified a number of high priority City projects such as the Lo s Osos Valley Road interchange project and the Land Use and Circulation Element Updates that would be served by City staff expertise while consultants assist with other division duties . 4.Implementation in a Different Way .In lieu of contract services, the Council could direct the hiring of a contract employee to take the place of the Deputy Director to provide support in-house on an interim basis . An alternative of hiring a contract employee, full-time during 2012-13 would cost approximately $125,700 i n contract salary and benefits, and may be very difficult to obtain . Operating Progra m 50100 – Public Works Administratio n Cost Summary B3-20 GENERAL GOVERNMEN T DEPUTY DIRECTOR LEAVE COVERAG E The cost of contract salaries for a Deputy Director of Public Works would cost $85,100 for contract services i n 2012-13 . Line Item Description Account No .2012-13 Contr act Services 85,10 0 Contract Services = Transportation 50500-7227 49,20 0 Contract Services = Dev Review 50400-7227 6,000 Contract Services = Transit 50700-7227 7,500 Contract Services = Parking 50600-7227 22,40 0 Otht j atin~„ Espendiures 0 Total Operating Costs 85,100 B3-2 1 Page intentionally lef t blank .