HomeMy WebLinkAbout06/06/2006, PH1C - PARKING ENTERPRISE FUND REVIEW 2006-07 council J=e 6,2"
j agcnda Report C
C I T Y OF SAN LU I S O B I S P O
FROM: Jay D. Walter,Director of Public Works
Prepared By: Timothy Scott Bochum, Deputy Director of Public Works
Robert Horch, Parking Services Manager
SUBJECT: PARKING ENTERPRISE FUND REVIEW 2006-07
CAO RECOMMENDATION:
1. Review and accept the 2006-07 Parking Enterprise Fund Review.
2. Approve the expenditure of approximately$88,600 of Unallocated Parking Enterprise Fund
balance for 2005-06 to implement the revenue enhancements as adopted by Council on
February 21, 2006.
DISCUSSION
This report presents the annual review of the Parking Enterprise Fund. During the past year,
Council approved revenue enhancements recommended by a community Task Force that would
provide sufficient revenues to fund the planning and debt service of the next parking structure
proposed at the corners of Palm and Nipomo streets. Council approved parking fine increases,
expanding the higher-rate downtown core meters, parking meter rate increases, adding meters to
Slack and Pismo Streets,'and increasing the hours of operation in the Marsh Street structure. The
analysis demonstrates that with the adopted revenue enhancements, the Parking Fund is healthy and
can afford the planning and debt service for another parking structure in the near future. There are
other parking lot projects that may or may not affect the health of the fund.
It is premature at this point to know with sufficient certainty whether these projects will in fact
occur and what their fiscal impact will be on the fund. There has been no accounting for these
projects but they are discussed in the 2006 Parking Fund Analysis attached to this report.
It is important to note that due to the nature of the fund and how revenues are derived, forecasting
of the Parking Fund has never been an exact science. Fines and meter revenues have a tendency to
vary depending on many issues such as tourism, whether Cal Poly is in session and amount of
Downtown construction disruption. For these reasons, it is important to be clear regarding the
assumptions that are used to forecast the Parking Fund. The assumptions for the fund are detailed in
the attached 2006 Parking Fund Analysis report.
Council Agenda Report: Parking Enterprise Fund Review 2006-07
Page 2
2006 Revenue Enhancements
On February 21, 2006, Council approved some of the revenue enhancements that came from
recommendations from the Parking revenue task force. In order to make these revenue
enhancements occur in 2006-07 and then again in 2009-10, the parking fund requires funding from
the unallocated working capital. Other than the annual staffing costs, the expenditures are one-time
only costs that will make it possible for the fund to increase revenues to build the next parking
structure,implement demand reduction programs, or acquire property to increase parking supply.
More specifically, in order to implement these adopted revenue enhancements, a series of purchases
and preparatory expenditures need to take place in fiscal year 2005-06. The budget for this is
approximately $88,600 to purchase of citation books, parking meters, meter parts, signage, and
salary for structure staffing. As previously mentioned, the funding for this would come from the
unallocated Parking Fund balance and be used at the end of 2005-06 or early 2006-07.
The table below reflects the approved revenue enhancements and the associated expenditures that
staff is requesting Council to approve.
Revenue
00. Description
Increase the top six parking violations 136,000 5,000 510.50600.7283 Printing
Expand the Downtown Core(2-hour zone)&increase rate to$1/hour 192,000 5,000 510.50600.7847 Meter Parts
Increase the meters outside the core to$0.75/hour 110,000 5,000 510.50600.7847 Meter Parts
Increase Marsh structure hours Mon.-Wed.until 10:00 p.m. 26,200 5,900 510.50600.7014 Temp.Salary
Add parking meters to Slack from Grand to Hathway 36,000 55,000 510.50600.7847 Meter Parts
Add parking meters to the 700 block of Pismo 11,040 12,650 510.50600.7847 Meter Parts
Totals 511,240 88,550
Revenue
,2009-10 Revenue Enhancements after costs Costs Account# Descripjion
Increase Downtown Core meters to$1.25/hour 48,000 5,000 510.50600.7847 Meter Parts
Increase the meters outside of the core to$1/hour 36,300 5,000 510.50600.7847 Meter Parts
Increase all hourly parking structure rates to$1/hour with 1st free 190,000 5,000 510.50600.7883 Signs
Totals 274,300 15,000
Staff recommends that the 2006-07 Revenue Enhancement expenditures be approved and budgeted
for 2005-06. Immediately after this approval these equipment will be ordered so the revenue
enhancements can occur in summer 2006.
ATTACHMENTS
1. 2006 Parking Fund Analysis
IA-CAR Reports\2006\Parking\Parking Fund Review Rpt.doc
ATTACHMENT 1
2006 Parking Fund Analysis
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June 6, 2006
Prepared by the
Public Works Department
city of san WIS OBISPO
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Attachment 1
Page 2
City of San Luis Obispo
2006 Parking Fund
TABLE OF CONTENTS
I. OVERVIEW
II. 2005-07 FINANCIAL PLAN
A. Summary of Operating Programs
B. Significant Operating Program Change Requests
C. Capital Improvement Plan Requests
D. Debt Service Payments
III. ASSUMPTIONS
IV. LOOKING TO THE FUTURE
A. Electronic Parking Way-finding Signs
B. Chinatown
C. Parking Lot 2 Redevelopment
D. Downtown Residential Parking Permit District
V. EXHIBIT A—FINANCIAL.SCHEDULES
1. Changes in Working Capital—Parking Fund
2. SOPC —Increase Contract Services for parking landscape
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' Attachment 1
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city of
San WIS OBISPO
2006 Parking Fund Report
I. OVERVIEW
This report presents the financial condition of the Parking Fund, based on the revised 2005-07
Financial Plan:2006-07 operating program budgets, recommended program and capital requests
to address the identified needs in the Parking and Access Plan, capital improvement projects, and
adopted city financial and infrastructure maintenance policies.
H. 2006-07 BUDGET
A. Summary of Operating Programs
2005-06 2006-07
REVISED BUDGET
Staffing 846,500 850,100
Contract Services 575;500 581,200
Other Operating Expenditures 151,100 154,200
Minor Capital 0 0
*Additional budget for revenue enhancements 88,600 5,900
Total Parking.Services $1,661,700 $1,591,400
B. Significant Operating Program Change Requests
2006-07
BUDGET
Increased Contract Services
Landscaping in Parking Lots 8,500
Total $8,500
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Attachment 1
Page 4
C. Capital Improvement Projects
2006-07 2007-08 2008-09 2009-10 2010-11
BUDGET BUDGET BUDGET BUDGET BUDGET
Financial Management System
Internet Voice 40,200
Technology management improvements 21,200 3,500
Fleet Replacement-2 Scooters 54,000
Traffic Safety Report Implementation
Palm-Nipomo Parking Structure 1,200,000 12,000,000
Parking Lot/Structure Maintenance 50,000 50,000 50,000 50,000
Fueling/Gate-control replacement
$ 1,200,000 $ 111,400 $ 12,107,500 $ 50,000 $ 50,000
Note*Costs for Palm Nipomo Structure are estimated and not yet approved by Council
D. Debt Service Payments
2006.07 2007-08 2008-09 2009-10 2010-11
BUDGET BUDGET BUDGET BUDGET BUDGET
Palm&Marsh(until Jun 2014) 500,800 498,600 502,200 499,300 502,200
Marsh Expansion(until Aug 203 1) 427,100 426,500 425,788 425,169 424,500
919 Palm 540,575 538,820 537,956 539,576 538,172
Palm Nipomo 868,000 868,000
Radio/Dispatch Center Upgrade 2,300 2,300 2,300 2,300 2,300
$ 1,470,775 $ 1,466,220 $ 1,468,244 $ 2,334,345 $ 2,335,172
Note*Debt Service payments for Palm Nipomo Structure are estimated and not yet approved by Council
III. ASSUMPTIONS
The following provides more detail for the key assumptions in Exhibits A-1 to this report, the
financial schedule showing the Parking fund's changes in financial position and the listing of
assumptions.
1. Revenue from meters, structure fees, passcard sales, meter permits, leases, and fines will
increase by one percent each year due to increased parking demand.
2. Annual parking structure revenues will increase by $137,664 in 2006-07 after the
completion of the 919 Palm structure.
3. The cost of ongoing operations will increase by two and a half percent each year due to
adjustments in the Consumer Price Index (CPI).
Attachment 1
Page 5
4. Meter and fine revenues will increase in 2006-07 when meter rates increase to $0.75 - $1
an hour and the top six most-issued violations are increased. Additional revenues will be
increased due to the meters on Slack and Pismo Streets.
5. The following significant operating program changes will take effect (See detail starting
on page 3):
a. Increase in Contract Services for parking landscape service @$8,500 in 2006-07.
6. Capital project appropriations from fund balance will include (See details on page 4):
a. Financial Management System @ $2,200 in 2005-06
b. Internet Voice @ $40,200 in 2007-08
c. Technology Management Improvements @ $21,200 in 2007-08 and $3,500 in
2008-09
d. Fleet Replacement-2 Scooters @ $54,000 in 2008-09
e. Traffic Safety Report Implementation @ $30,000 in 2005-06
f. Fueling & Gate Control System Replacement @ $1,200 in 2005-06
a. Parking Lot/Structure Maintenance @ $50,000 in 2007-08, $50,000 in 2008-09,
and$50,000 in 2009-10.
7. Annual parking structure revenues. are estimated to increase by $150,000 if the
Palm/Nipomo structure opens in 2009-10.
8. Annual long term revenue will decease by $6,400 for the loss of meters and $9,600 for
the loss of 10-hour meter permits in Lot 14 beginning in 2007-08.
9. Fine and forfeiture revenues will decrease by approximately 4 percent after Lot 14 is
closed and construction begins for the Palm/Nipomo Structure.
10. Annual lease revenues will decrease by $25,000 for loss of the 633 Palm Street
apartments beginning in 2008-09.
11. Meter revenue, 10-hour meter permit revenue, fine revenues from Lot 14, along with the
rental from 633 Palm will cease in 2008-09 when the Palm Nipomo begins construction.
12. Capital project appropriations for Palm/Nipomo Structure @ $1,200,000 in 2006-07, and
$12,000,000 in 2008-09.
13. Annual debt service for Palm/Nipomo will be approximately$868,000.
14. Proceeds from a bond issue will finance Palm/Nipomo Structure @ $12,625,000 in
2008-09.
15. Annual operating costs for Palm/Nipomo are estimated @ $150,000 beginning in
2009-10.
16. A reserve approximately equal to annual debt service will be maintained as required by
contractual obligations.
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Attachment 1
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VI. LOOKING TO THE FUTURE
A. Electronic Parking Way finding Signs
Staff is currently working on the design on the Electronic Parking Way-finding Signs CIP
approved by Council as part of the FY .2003-05 Financial Plan. These dynamic
informational signs are anticipated to go to construction in late 2007 and assist with
access notification for available parking structure capacity during peak season demand.
No additional allocations for this project are necessary at this time.
B. Chinatown Project
Although an application for the Copeland Chinatown project has been submitted (May
2005) a thorough analysis of fiscal and physical potential impacts to the Parking program
has not yet been completed. This analysis will be completed and brought forth to the
Council and community as a separate item from the Parking Fund review. Significant
changes to the Parking Fund will result from project implementation and are not
estimated in the current fund forecast.
C. Parking Lot 2 Redevelopment
The City is currently negotiating with a developer to begin a project incorporating public
parking Lot 2 on_Marsh and Broad Streets. This project has not been submitted for City
approval at this time. Significant changes to the Parking Fund will result from project
implementation and are not estimated in the current fund forecast.
D. Downtown Residential Parking Permit District
At the February 21, 2006 Council meeting, Council gave direction to staff to assess and
study beginning a downtown residential parking permit district around the downtown.
Additional staffing, meetings, and consulting services may be necessary for this
substantial and difficult of a project. Significant changes to the Parking Fund will result
from project implementation and are not estimated in the current fund forecast.
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Attachment 1
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EXHIBIT A
2006 PARKING FUND
FINANCIAL SCHEDULES
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