HomeMy WebLinkAbout05/01/2007, COMMUNICATION - PALM-NIPOMO GARAGE ----------
7RECEIVED COMU, -)CATIONS ITEM
1AM 01 29V
OUNCIL ,R CDD DIR
1Vlfemorandum SLO CITY CLERK B'CAO ,e FIN DIR
ACAO FIRE CHIEF
To: Council Members -�A7TORNEY ,®,P1N DIR
From: Andrew Carter RED FILE CLERK/ORIQ Ia'POLICE CHF
Date: 4/30/07 M NG AGENDA DEPT HEADS eREC DIR
eUTIL DIR
Re: Palm-Nipomo Garage DA 1 ITEM i _.._Z HR DIR._ _
The primary purpose of this correspondence is to put down in writing some of the financial
calculations I presented during our discussion on 4/24/07 of the proposed Palm-Nipomo garage.
1) As we learned during the meeting, Table 2 incorrectly estimated current construction costs
based on net new spaces instead of total spaces. Here's how the construction cost estimates
change:
Using Net New Spaces(incorrect)
D3 H2 H3
Cost per space $33;500 $64,500 $62,800
Net new spaces x 366 x 412 x 486
Total Cost $12,261,000 $26,574,000 $30,520,800
Using Total Spaces(correct)
D3 H2 H3
Cost per space $33,500 $64;500 $62,800
Total spaces x 445 x 491 x 565
Total Cost $14,907,500 $31,669,500 $35,482,000
2) I said the annual debt service for a$14.9 million garage would be about$1 million. This is
based on the anticipated debt service for the dispatch center just approved at Fire Station#l.
That project will cost$6.1 million and the annual debt service will be $420,000. S420K is to
$6.I M as$1026K is to$14.9M.
3) Table 3 says that Total Annual Operating Costs for the D3 garage would be $790 per space.
I said Annual Revenue for the garage might equal approximately$1000 per space. This is
based on averages in our current Parking Fund budget.
In the budget presented 06/06/06,Daily.Garage Fee revenue was projected at$807,000 for
2006/07. Long-Term Parking Revenue,most of which comes from the garages,was
projected at$436,200. The total of these two numbers I $1,243,200. There are 1211 spaces
in our three current garages. $1,243,200 divided by 1211 is$1027 per space.
4) I said that the Palm-Nipomo garage would therefore lose approximately$900,000 per year
after considering debt service.
$1027/space revenue- $790/space expense=$237/space annual profit before debt service.
$237/space profit before debt service x 445 spaces=$105,000 annual profit before debt
service.
$1,026,000 annual debt service - $105,000 annual profit before debt service=$921,000
annual loss after debt service.
5) I provided background information on construction costs for our last two garages.
The Marsh Street II expansion cost$9,156,100 to build. This data is from an August;2003
Council packet and includes design,construction management, and construction costs with
contingencies. It does not include land costs, EIR costs, or site preparation. There are 354
spaces in the Marsh Street expansion. The construction cost was therefore$25,865/space.
The Parking Fund portion of 919 Palm cost$9,106,000 for construction, inspection,and
contingencies. (4/18/06 Council packet.) The General Fund portion cost another
$3,978,500. There are 238 spaces in the garage— 193 Parking Fund spaces and 45 General
Fund spaces. The`worst case"cost for parking in 919 Palm was$47,181/space(9,106,000
divided by 193). The"best case"cost was$38,261/space($9,106,000 divided by 238).
Our consultant is estimating$33,500/space at Palm-Nipomo.
The secondary purpose of this correspondence is to ask Council to give staff direction in two
specific areas as they move forward with planning for D3:
1) Provide Council with revenue&cost projections for a metered garage vs. an attendant
garage. A metered garage would have lower operating costs(no parking attendants) and
higher revenue(through fines).. Construction cost could be more or less depending on the
trade-off between purchasing and installing meters vs. purchasing and installing the attendant
booths and gates.
2) Provide Council with a traffic flow analysis to justify establishing the primary entrance/exit
to the garage on Palm Street instead of Nipomo.