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Home My WebLink About05/29/2003, PH3 - PARKING FUND REVIEW 2003-04 o council Wa�M Dacs acEnc)a izEpoRt 1w.N. 3 CITY O F SAN LUI S O B I S P O FROM: Michael D. McCluskey, Public Works Director 140__ Prepared By: David Elliott, Administrative Services Manager SUBJECT: PARKING FUND REVIEW 2003-04 CAO RECOMMENDATION 1. Review and accept the 2003 annual parking fund review; and 2. Conceptually approve the proposed operating program change requests and capital improve= ment plan requests contained in the preliminary 2003-05 Financial Plan, pending final budget review and adoption; and 3. Review and discuss options for Proxcard pricing. DISCUSSION Worksheet Assumptions The attached worksheet, "Changes in Working Capital - Parking Fund", projects sources of revenue and uses of revenue for the Parking Fund over the five-year period from 2003-04 to 2007-08. Worksheet projections are based on the following assumptions: 1. Revenue from parking meters, garage fees, Proxcard sales, meter permits, and fines will increase by one percent each year due to increased parking demand. 2. Fine and forfeiture revenue will decline by 10 percent overall after Lot 6 is closed and con- struction begins on the Court Street project. 3. Annual fine and forfeiture revenue will increase by $141,000 after the addition of one full- time parking enforcement officer in 2003-04. 4. Annual parking garage revenue will increase by $133,000 after hourly and daily rates are increased by 25 percent in July 2004. 5. Annual parking garage revenue will increase by $136,100 after completion of the Palm- Morro Parking/Office Building in October 2004. 6. Annual long-term parking revenue will increase by $36,200 after monthly Proxcard rates are increased by an average of 22.5 percent in July 2004. 7. Annual building lease revenues will increase by $34,700 after completion of the Marsh Street Garage Expansion office spaces in October 2003. 8. Ongoing operations appropriations will increase by three percent each year. 9. The following significant operating program changes will take effect (See detail starting on page 2): a. Enhanced Parking Enforcement @ $67,000 in 2003-04 and then $85,600 annually � -I Council Agenda Report—Parking Fund Review 2003-04 Page 2 b. Additional Contract Services @ $49,200 annually C. Additional Printing @ $6,500 annually d. Blue Light Security System Feasibility @ $5,000 in 2003-04 10. Capital project appropriations from fund balance will include (See detail on page 3): a. Electronic Parking Signs @ $200,000 in 2003-04 and $140,000 in 2004-05 b. Fleet Addition-Parking @$25,000 in 2003-04 C. Land Acquisition for Future Parking Garages @ $25,000 in 2003-04, $1.4 million in 2004-05, and $1.4 million in 2005-06 d. Palm-Nipomo Parking Garage @ $150,000 in 2003-04 and $300,000 in 2004-05 e. Traffic Signal Installation.at Broad and Pacific @ $80,000 in 2003-04 f Parking Fund Share of Information Technology Projects @ $16,900 in 2003-04, $2,300 in 2004-05, $82,800 in 2005-06, and $45,300 in 2006-07 11. Annual debt service for new capital projects will cost about $483,100. 12. Proceeds from a bond issue will finance appropriations for North Area Regional Facility (NARF) -Parking @ $3.5 million in 2005-06 and $350,000 in 2006-07 13. A reserve approximately equal to annual debt service will be maintained as required by contractual obligations. Conclusions From the worksheet Public Works has drawn the following conclusions: 1. Current parking rates plus scheduled future increases plus accumulated working capital balances will cover all planned operating expenses, capital outlays, and debt service obligations from 2003-04 through 2007-08. 2. After allowing for all reserve requirements, in 2007-08 there will be about $2.5 million available in unappropriated working capital. 3. Beginning in 2007-08, there will be about $500,000 of operating income available each year. Through debt financing, this level of income could pay for about $8 million in capital outlays. Significant Operating Program Change Requests Enhanced Parking Enforcement. Adding one Parking Enforcement Officer to the contract staff- ing of the Parking Program will cost $45,600 in 2003-04 and $63,700 in 2004-05. Acquiring one computerized electronic ticket writer for the new enforcement officer will cost $5,000 in 2003- 04. Processing additional citations generated by this position will cost $14,600 in 2003-04 and $19,500 in 2004-05. Printing the additional citations and citation envelopes generated by this position will cost $1,800 in 2003-04 and $2,400 in 2004-05. This position should generate a minimum $141,000 of additional citation revenue each year. Potential citation revenue could range as high as $295,000 each year. Additional Contract Services. Providing contract janitorial and sweeping maintenance in the new areas of the Marsh Street Garage will cost $30,800 per year. Providing contract elevator Council Agenda Report—Parking Fund Review 2003-04 Page 3 maintenance at this location will cost $3,500 per year. Processing an increased volume of park- ing citations will cost an additional $3,900 per year. Using express mail service to have the post office automatically forward citation payments to the contract citation processing firm will cost $5,000 each year. More frequent collection by the contract coin collection service will cost $6,000 more per year. Additional Printing. Printing a higher volume of parking citations, a higher volume of parking garage tickets, and two updated parking pamphlets will cost an additional $6,500 each year. Blue Light Security System Feasibility. Studying the feasibility of a blue light security system in the Marsh and Palm Street Parking Garages will cost $5,000 in 2003-04. CIP Project Requests Electronic Parking Signs. Installing new electronic parking signs along major downtown en- trance corridors will cost $200,000 in 2003-04. Installing internal electronic garage signs will cost $140,000 in 2004-05. Fleet Addition – Parking. Adding one new utility scooter to the Parking fleet for use by a new Parking Enforcement Officer will cost$25,000 in 2003-04. Land Acquisition for Future Parking Garages. Appraising land for future parking lot acquisition will cost $25,000 in 2003-2004. Acquiring land for needed surface parking lots or future garages will cost $1.4 million in 2004-05, and $1.4 million in 2005-2006. Palm-Nipomo Parking Garage. Developing the Pahn-Nipomo Parking Garage will cost $150,000 for conceptual design 2003-04 and$300,000 for environmental review in 2004-05. Traffic Signal Installation at Broad and Pacific. Installing a traffic signal at Broad and Pacific to comply with EIR requirements for the Marsh Street Garage Expansion will cost $120,000 in 2003-04. The General Fund will cover $40,000 of the cost, and the Parking Fund will cover the remaining $80,000. Parking Fund Share of Information Technology Projects. Covering the Parking Fund share of various information technology improvements will cost $16,900 in 2003-04, $2,300 in 2004-05, $82,800 in 2005-06, and $45,300 in 2006-07. North Area Regional Facility (NARF) – Parking. Developing the parking component of the North Area Regional Facility (NARF) will cost $3.5 million for land acquisition in 2005-06 and $350,000 for design in 2006-07. 3-� CO Council Agenda Report—Parking Fund Review 2003-04 Page 4 Options for Proxcard Pricing On January 17, 2003 the Council approved two general parking rate increases. These adjustments included raising the price of a Proxcard – in essence a monthly pass for the parking garages. For the Palm Street Garage, the Proxcard price went from $40 to $50 on April 1, 2003 and will go from $50 to $60 on July 1, 2004. For the Marsh Street Garage, the Proxcard price went from $50 to $60 on April 1, 2003 and will go from $60 to $75 on July 1, 2004. At that meeting some Councilmembers felt Proxcard prices were too low and that they failed to promote use of alternative transportation into the downtown. Consequently, the Council directed staff to prepare options for various Proxcard prices for consideration at the Parking Fund review. The following tables show various prices and the corresponding subsidies, assuming that full current Proxcard value is $120, based on 20 working days per month at the current $6 daily garage fee. Palm Street Garage Marsh Street Garage Price per Price per Month Subsidy Month Subsidy $50 (a) 58% $60 (a) 50% $60 50% $70 42% $70 42% $80 33%, $80 33%, $90 25%. $90 25% $100 17% $100 17% $110 9% (a) current price For two reasons staff is recommending that Proxcard prices remain at currently approved levels. First, the additional revenue would not be critical to the solvency of the Parking Fund. And second, increasing prices further would likely encourage drivers to park outside the garages in the adjacent residential neighborhoods. On May 9, 2003 the SLO Downtown Association Parking and Access Committee voted to support the staff recommendation that Proxcard prices remain at currently approved levels. 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