HomeMy WebLinkAbout08/15/1989, 5 - ESTABLISH PARKING USER FEES FOR RAILROAD SQUARE PROPERTY OWNERS AND BUSINESSES. MEETING DATE:
QJJq21J City Of San IUIS OBISPOisft
SWOON COUNCIL AGENDA REPORT NUMBER:
CDave Romero ,�Wayne Peterson Prepared by: Keith Opalewski
Public Works City Engineer Parking Coordinator
Subject: Establish parking user fees for Railroad Square property
owners and businesses.
CAO Recommendation:
By Motion:
A. Adopt resolution approving form of lease agreement for
businesses operating in the Railroad Square Parking Service Area.
B. Direct staff to begin negotiations with Southern Pacific for
use of their parking area and to implement other parking management
techniques as appropriate.
Background:
For many years, businesses in the Railroad Square service area
(Exhibit A) shared parking located on Southern Pacific Railroad
property, which offered inadequate parking facilities. The city
purchased the two-acre parcel as part of a beautification project
for the Railroad Square area. The project included renRovation of.
the train depot and improving the adjacent parking area in order to
insure its long-term maintenance and availability for both public
and private use.
In December 1985 the City Council approved a joint public/private
parking program (Exhibit B) for Railroad Square. The intent was to
provide functional and safe parking for all users and to establish
a means to generate fees to offset the city's costs for project
development and ongoing maintenance.
In May of 1987 a use permit was approved to allow joint or shared
use of the city-owned parking spaces in the Railroad Square Parking
Service Area. A provision of the use permit stipulated that
property owners who cannot provide their total required parking on
their own property must enter into an agreement with the City. The
agreement insures that property owners provide adequate parking for
existing uses and comply with City Zoning Regulations.
The depot rervovations, landscaping and parking lot improvements
were completed in the fall of 1987. The project was funded by a
combination of city and private funds along with matching funds
from the state. The breakdown is as follows:
City $480,000
Private $100,000 (City advanced these funds in anticipation of
reimbursement from user agreements)
State $545,000
Total $1, 125, 000 /
4111%V0,111 city Of san luis-owpo
COUNCIL AGENDA REPORT
Council Agenda Report
Page Two
Community Development staff met with Railroad Square users to
address the concerns of all parties in order to come to a mutual
agreement about terms of lease of these spaces. A $12 per space
per month figure was agreed upon, which includes amortization of
$100,000 at 8% over the 20 year life of the project. This monthly
fee is slightly below the minimum charge of $15 per month for
downtown lots, with other city lots averaging $33 per month
including the parking structure. The cost breakdown for operation
and maintenance is estimated at $8 per space with the remaining $4
applied to investment return. Monies will be collected on a
quarterly basis through the city's standard accounting and
collection procedures. The revenue flow from the user fees would
be approximately $25,000 annually, (based on 176 required spaces at
$12 per space per month) which will be allocated solely to the
City's Parking Fund.
In order to follow through with the program staff has prepared the
attached resolution and form of agreement. The key features of the.
lease agreement include the following:
Cost per space: $12 per month, paid quarterly in advance.
Space Allocation: Spaces are available on a first-come,
first-served basis.
Lease Term: Five (5) years, with three five year options.
Lease Adjustments: At the time of renewal, the city may adjust the
base lease payment by an amount equal to the
percent increase in the CPI during the preceding
five years, or 8% per year, whichever is less.
Lease Cancelable: The lease can be cancelled by lessee before the
lease term expires, upon 30 days notice,
provided that the lessee otherwise provides
required parking as approved by Community
Development. The City also retains the right to
cancel lease upon proper notice provided other
parking arrangements are available for users.
Enforcement: Failure to comply with lease may result in
review and revocation of the Joint Use parking
agreement(A 119-86)
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COUNCIL AGENDA REPORT
Council Agenda Report
Page three
Lease Changes: The lease agreement may be amended at any time
by the written consent of the city's CAO and the
consent of lessee.
Use Changes: City must be notified of any use changes,
subleases, or tenancy change which would
increase lessee's parking requirement. Any
change will be prohibited unless additional
parking is provided to meet Zoning Regulations.
The improved Railroad Square lot has been in use for about two
years and staff has observed its usage during that time. It
appears that the spaces nearest the businesses and Amtrak Depot
have been heavily used, and the spaces in the Southern Pacific lot
just north of the depot are under utilized, primarily due to the
relocation of SP train operations and Amtrak layoffs.
Therefore, to better manage parking in the area staff proposes to
work with SP and Amtrak and local merchants to set up a parking
program to distribute parking more evenly throughout all lots.
Staff intends to begin discussions with SP in order to .obtain use
of their lot as part of the overall management plan.
Depending on the outcome of the negotiations with SP and the
proposed parking distribution, staff will make recommendations for
improved parking usage.
Fiscal Impact
Revenues generated by the lease agreement will total approximately
($500,000) over a 20 year period. This will cover all operation
and maintenance costs ($2601000) , initial investment ($100,000) and
interest.
Other Department Comments
Community Development Department has determined a negative
declaration on environmental impact and granted approval of use
permit.
Consequence of not taking recommended action
Receipt of revenues which could be used for future improvements and
maintenance to the area will be delayed until agreements are
approved. Parking utilization will be less than optimal until some
management of the spaces is undertaken..
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COUNCIL AGENDA REPORT
Council Agenda Report
Page Four
Recommended Action
Adopt resolution approving form of lease agreements for Railroad
Square property owners. Direct staff to begin negotiations with
Southern Pacific for use of their parking lot, to continue to
monitor the parking demands of the area, and to implement parking
management improvements as appropriate.
Attachments: hibit A - Area Map
CER
hibit B - Resolution 5859, 1985 Series
esolution
Parking Lease Agreement Form
I. .
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RESOLUTION NO. (1989 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
LUIS OBISPO ESTABLISHING A PARKING USER FEE FOR
PROPERTY OWNERS IN THE RAILROAD SQUARE PARKING
SERVICE AREA
WHEREAS, the City of San Luis Obispo has improved the quality
of transportation and parking facilities in the area commonly
known as Railroad Square and
WHEREAS, the improvements have been completed and local
businesses and other users are deriving benefit from the
project; and
WHEREAS, the City Council approved a parking program for the
Railroad Square Parking Service Area which requires payment of
parking fees if property owners cannot provide on-site parking;
And
WHEREAS, the City has agreed to operate and maintain the
parking facilities and part of the costs for development and
maintainance are to be recovered from private participation in
a user fee program, and Council has heard public comment on
this matter;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
SAN LUIS OBISPO THE FOLLOWING:
Section 1. All property owners maintaining businesses that use.
the area served by Railroad Square parking facilities shall be
required to enter into a lease with the City, and that said
lease shall require the payment of $12 per space per month for
the term of the lease.
Section 2. As set forth in the lease agreement the City
retains the right to install parking meters or other control
devices in all or part of the Railroad Square parking area.
Provisions for leaseholders shall be made on a need only basis
to issue parking permits or other approved form of identifying
user vehicles whereby they would be exempt from paying
additional parking fees.
Section 3. The City shall monitor the parking demand in the
area and initiate improvements or changes as deemed necessary
and which are mutually agreed upon by property owners.
Section 4. The City shall continue to maintain, and if
possible, expand the parking facilites through the use or
` acquisition of additional railroad property.
Copies of this resolution shall be made available in the City
Clerk's Office.
Resolution No. (1989 Series)
Page 2
On motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution waspassed. and adopted this day
of , 1989.
Mayor
ATTEST:
CITY CLERK
APPROVED:
CITY NIS IVE OFFICER
FIN CE DIRE 0R I
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CITTVTORNE
COMMUNITY DEVEL�?MENT DIRECTOR
PUBLIC WORKS DIRECTOR
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RAILROAD SQUARE
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Department of Community powlopment
9W Palm Stmt/Post OHlos Box 321.San Luis 061W.CA 934M
RESOLUTION NO. 5859 (1985 SERIES) -�
A RESOLUTION .OF THE COUNCIL OF THE CITY OF SAN
LUIS OBISPO ESTABLISHING A PARKING PROGRAM FOR
RAILROAD SQUARE
WHEREAS, the City of San Luis Obispo wants to improve the quality
of transportation and parking facilities in the area commonly known
as Railroad Square, as shown in Exhibit "A"; and
WHEREAS, the City has received grant funds for improvements to
the Amtrak passenger station and surrounding street and parking
areas; and
WHEREAS, the. project requires matching local funding, a portion
of which is to come from private sources served by the new parking
facilities; and
WHEREAS, establishment of. a parking program will allow more
efficient use of planned facilities, and generate user fees to defray
the City's costs of developing and operating parking facilities; and
WHEREAS, a parking program has been prepared which outlines the
goals, products, and general procedures to be followed, with
implementation details to be developed concurrent with final
architectural plans for the project;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San
Luis Obispo the following:
SECTION 1. The area served by Railroad Square parking facilities
shall be as shown in Exhibit "A" .
R 5859
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CResolution No. 5859 (1985 Series)
Page 2
SECTION 2. Uses within the Railroad Square service area which
must use City parking facilities to meet Zoning or conditional use
permit requirements shall contribute toward the cost .of parking
facilities. Contributions shall be based on the number of spaces
required for each use, as determined by the Community Development
Director.
The City Engineer shall calculate actual city costs to develop,
operate, and maintain parking facilities and related improvements
over the project's 30-year life. Participating property owners and
tenants within the service area shall contribute an amount to be
determined by the City Council following a public hearing.
SECTION 3. The parking program shall be as outlined in the staff
report dated December 17, 1986, and as shown in Exhibit "B"..
Implementation details will return for Council approval.
SECTION 4. Copies of this resolution and attachments shall be
Made available by the City Clerk at the City-County Library in San
Luis Obispo, and in the City Clerk's Office in City Hall, 990 Palm
Street, San Luis Obispo, California.
On motion of councilman Griffin , seconded
by Councilman Settle , and on the following roll
call vote:
8- so 9
Resolution No. 5859 (1985 Series)
Page 3
AYES: Councilmembers Griffin, Settle, Dovey, Rappa and Mayor Dunin
NOES: None
ABSENT: None
the foregoing resolution was passed and adopted this 17th day
of necPmher , 1985.
Maycf Ron Dunin
ATTEST:
i
CITY CLERK PAMEIA VOGES
APPROVED:
City Admin s a ive Adffic
Finance Dir for
IQ06—
City At orney
Community Development Director
Public Works Department Director
13- 2
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FORM OF
PARKING LEASE AGREEMENT
This lease agreement was made and entered into this day of 1989,
by and between the CITY OF SAN LUIS OBISPO, a chartered municipal Corporation of the State of
California hereinafter referred to as "CITY", or "LESSOR", and
hereinafter referred to as "LESSEE"; and jointly referred to hereinafter as the "parties".
RECITALS
The parties enter into and execute this lease agreement with knowledge of and reliance on the
following facts
i
1. CITY has acquired and improved property in Railroad Square to provide parking and related
use facilities for the benefit of property owners, businesses, employees, customers,
residents, and visitors within the area.shown in Exhibit "A"; and
2. City Council Resolution No. 5859 (1985 Series) establishes a joint public/private parking
program for the area generally described as "Railroad Square", shown in Exhibit "A"; and
said program requires property owners within Railroad Square to contribute toward the cost
of developing and maintaining the parking facilities, and
3. CITY has approved a Use Permit (A 119-86) which allows joint use of city-owned parking
facilities in Railroad Square subject and which contains a condition that property owners
who cannot provide their total required parking as shown in Exhibit "B" on their own
�l property shall enter into a lease agreement with CITY to provide adequate parking for
their uses and to comply with CITY Zoning Regulations; and
Parking Lease Agreement
Page Two
4. By complying with the terms of this lease agreement, LESSEE fully satisfies CITY parking
regulations for the existing uses as shown in Exhibit "B", and for subsequent uses of
equal or lesser parking requirements, as determined by the City's Community Development
Director, and complies with the aforementioned CITY approvals.
TERMS OF LEASE
NOW, THEREFORE, in consideration of the mutual and respective covenants and promises set forth
herein and subject to all the terms and conditions hereof, the parties agree that:
A. JOINT PARKING USE. CITY agrees to provide 126 car parking spaces and 13 motorcycle spaces
for the joint use by LESSEE, authorized agents, employees, residents, customers, and
visitors on a non-assigned, first-come first-served basis.
B. LEASE RATE. LESSEE shall pay to CITY an amount of $12 (Twelve dollars and no cents) per
month parking space to lease parking spaces required for LESSEE's use, as shown in Exhibit
"B" but not provided onsite as required by Section 17.16.060 of the City's Zoning
Regulations".
C. PAYMENT SCHEDULE. Lease payments shall be paid quarterly in advance to the City Finance
Department by January 1, April 1, July 1, and October 1 of each year. A 10-day grace
period (until the 10th of the month) for lease payment shall be allowed. Lease payments
received after the grace period will be subject to late penalties. A late payment penalty
of 5% (five percent) of the quarterly lease payment may be assessed for each day that the
lease payment is delinquent.
D. LEASE TERM AND RENEWAL. This lease agreement shall be effective for five years, with
three five-year options for renewal. LESSEE shall notify the CITY in writing at least 30
days prior to renewing the lease. At the time of lease renewal, CITY may adjust the base
lease payment by an amount equal to the percent increase in the Consumer Price Index
1
Parking Lease Agreement
Page Three
during the preceding five-year lease period (U.S. Department of Labor, Los
Angeles-Anaheim-Riverside Area); or 8% (eight percent) per year during the lease period,
whichever is less. CPI lease rate increases shall apply only to the portion of the total
lease payment allocated for parking lot operation and maintenance, and not to the
amortized capital costs for the parking facilities.
E. TERMINATION. Notwithstanding section "D" above, any LESSEE who provides the required
parking as shown in Exhibit "B" on his own property, or otherwise complies with the
parking requirements in the City's Zoning Regulations in effect during the term of the
lease, may terminate this lease agreement before the lease has expired. Termination shall
be subject to prior city verification -that LESSEE complies with City parking
requirements. LESSEE shall notify the City's Parking Program Coordinator and the
Community Development Director in writing at least 30 days before terminating this
agreement. CITY shall retain the right to terminate said lease at time of renewal of each
five-year option. In the event of termination, CITY shall endeavor to assist property
owner with meeting their parking requirements as stipulated by the City Zoning
Regulations.
F. TENANCY OR USE CHANGES. LESSEE agrees to notify the Parking Program Coordinator and the
Community Development Director of any subleases, land use or tenancy changes which would
increase LESSEE's parking requirement as shown in Exhibit "B"; further, that such changes
will not be allowed unless additional parking is provided to meet the City's Zoning
Regulations, to the approval of the Community Development Director.
G. MAINTENANCE. CITY shall maintain the parking lot grounds, including landscaping, paving,
irrigation, pavement striping, curbs, traffic signage and similar improvements on
_ city-owned property. City retains- the right to modify the hours of operationand traffic
flow and the right to install parking meters or other control devices.as necessary to
j-13
Parking Lease Agreement
Page Four
insure the safe and efficient operation of the parking lot. If meters are installed, the
City agrees to establish a parking permit program or similar method (e.g. reserved spaces)
to exempt LESSEE and LESSEFs employees from paying meter fees within the Railroad Square
Parking Service Area.
H. LIABILITY. Nothing in this Agreement is intended to create duties, obligations to, or
third party rights. Nor is it intended to affect either party's contractual liability by
imposing any standard of care regarding ownership, leasehold, regulation, enforcement and
maintenance of parking lot grounds and related facilities different from the standard of
care imposed by law.
PARTIES understand and agree that neither CITY nor any officer or employee thereof is
responsible for any damage or liability occurring by reason of anything done or not done `
by the LESSEE under or in connection with any work,.authority, right, responsibility or
obligation or delegated to the LESSEE under this Agreement. It is also understood and
agreed that LESSEE shall defend, indemnify and save harmless CITY, all officers and
employees from all claims, suit, or actions of every name, kind and description brought
for or on account of injuries to or death of any person or damage to property resulting
from anything done or not done by the LESSEE under or in connection with any work,
authority, right, responsibility or obligation delegated to the LESSEE under this
Agreement.
Further, the PARTIES understand and agree that neither LESSEE nor any officer or employee
thereof is responsible for any damage or liability occurring by reason of anything done or
not done by the CITY under or in connection with any work, authority, right,
responsibility or obligation delegated to the City under this Agreement.
It is also understood and agreed that CITY shall defend, indemnify and save harmless the
LESSEE, all officers and employees from claims, suits or actions of every name, kind and
Parking Lease Agreement
Page Five
description brought for or on account of injuries to or death of any person or damage to
property resulting from anything done or not done by CTIY under of in connection with any
work, authority, right, responsibility or obligation or delegated to the CITY under this
Agreement.
I. TRAFFIC VIOLATIONS. LESSEE acknowledges that parking and traffic violations will be
enforced by CITY as provided for in the Municipal Code.
J. TRANSFERABILITY. LESSEE acknowledges that this lease is not transferable without prior
written approval of the Parking Program Coordinator and the Community Development
Director.
K. FAILURE TO COMPLY. Failure to comply with the terms of this lease shall be cause for
review of Use Permit A 119-86, and at CITY's sole discretion, may result in termination of
this lease agreement. At such review, CITY may modify, add, or delete conditions of
approval, or may revoke the use permit and terminate this lease agreement termination or
modification of the Use Permit or addition or deletion of use permit conditions will be
done by CITY pursuant to its inherent municipal authority, following CITY procedures for
public notice and hearing, and not as part of this agreement.
L. AMENDMENTS. This lease agreement may be amended at any time by mutual written consent of
the City Administrative Officer and the consent of LESSEE within the Railroad Square
Service Area, shown in Exhibit "A".
i
Parking Lease Agreement
Page Six
IN WITNESS THEREOF, the parties hereto have executed this agreement on the day and year
written above:
LESSEE:
CITY OF SAN LUIS OBISPO:
City Administrative Officer
ATTEST:
City Clerk
APPROVED AS TO FORM
City Attnrney
APPROVED AS TO CONTENT:
Community Development Director
Public Works Director
P/agreement
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San Luis omsp0 RAILROAD SQUARE
�■� Department of Community Devokgoment PARKING SERVICE ARE A
990 Palm Street/Post Ottlee So:321.San hula pplapo,CA 93406
city of san Luis osispo
PARKING CALCS WO R KS H EE's
Department of Community Development. 990 Palm Street/Post Office Box 321• San Luis Obispo. CA 934M OM 541-1001
Project Name Railroad Square Parking Program _ Fite Number_. A 119-86 -
1820 Osos Street _ Ptar>s Dated__.
Project Address --_---.. ._ . .._. - --
Cares Prepared by J. Hook Date 3/31/87 Zone C-S-S. Parking Provided.. _ 126
USE: AREA: RATE: SPACES REQUIRED
Joint use of city
parking lot by the ---
following uses: - -_-.. ----_---- _-__--
• Park Hotel 47
Railroad Square -- - _ -- -- —_-- - 82 —
• Alano Club/Printers 19
• Union Statation Grill 24
Del Monte Cafe 4
. Amtrak ------ - - 7
TOTALS: —_.. ____ —__— 183 spaces" -
COMMENTS: 130 spaces includes credit for additional bicycle/motorcycle snaces (4 space
e
credit). Request for joint use of city parking facilities does not require mixed-
use reduction. However with a 20t reduction, the reduction would be 183-37= 146 spac
(SLCMC 17.16.060.C) Actual parking reduction proposed = S3/183 = 29%. -
_ EXHIBIT B
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and U& apacaa (2) .C•' ,��� i
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