HomeMy WebLinkAbout09/19/1989, 4 - ESTABLISH PARKING USER FEES FOR RAILROAD SQUARE PROPERTY OWNERS AND BUSINESSES. (II�IIMI�IIIII��� ���II ".7 MEETING OATS
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COUNCIL AGENDA REPORT 'NUMBER:
Dave Romero Wayne Peterson Prepared by: Keith palewski.
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 the lease agreement for property
owners in the Railroad Square Parking Service Area.
B. Direct staff to begin negotiations with Southern Pacific to
secure additional parking in Railroad Square, and to implement
other parking management techniques as appropriate.
BACKGROUND
Historically, businesses in the Railroad Square service area (Exhibit
A) leased parking located on Southern Pacific Railroad property. The
J parking lot was not adequately maintained, and the city purchased the
two-acre parcel as part of a parking improvement and beautification
project. The project included renovation of the train depot and
improvments to the adjacent parking area in order to insure its
long-term maintenance and availability for public and private use.
The depot renovations, landscaping and parking lot improvements were
completed in 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
In December 1985, the City Council approved a joint public/private
parking program (Exhibit B) for Railroad Square. The intent was to
balance parking supply and demand for the various users, and to
establish a means to generate fees to offset the city's costs for
project development and ongoing maintenance.
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COUNCIL AGENDA REPORT
Council Agenda Report.
Page Two
In May 1987, an administrative use permit was approved to allow
joint or shared use of the city-owned parking facility. 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 ensures
that property owners provide adequate parking for existing uses and
comply with zoning Regulations.
EVALUATION
Community Development staff has met several times with Railroad
Square property owners to reach agreement on the terms of the
lease. A $12 per space per month figure was agreed upon, which
will reimburse the City for the $100, 000 private contribution, and
for City costs to operate and maintain the parking lot and
landscaping. This is based on amortization of the $100, 000 at 8%
over the 20-year lease term.
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. Given that the Railroad
Square's current parking demand substantially exceeds supply,
property owners must share parking spaces among themselves and with
Amtrak customers. At the recommended lease rate, the City's costs
are reimbursed while holding property owner costs to reasonable
levels for this area of town. Moreover, lease costs are tied to
the Consumer Price Index, and could rise at lease renewal by an
amount equal to the percent increase in the CPI, or by 8 percent
per year, whichever is less.
The cost breakdown for operation and maintenance is about $8 per
space with the remaining $4 applied to investment return. Monies
will be collected on a quarterly basis through 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 Parking Fund.
To implement the program, staff has prepared the attached
resolution and agreement. The key features of the lease agreement
include:
1. Cost per space: $12 per month, paid quarterly in advance. i
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00111, COUNCIL AGENDA REPORT
Council Agenda Report
Page three
2. Space Allocation: spaces are available on a first-come,
first-served basis.
3 . Lease Term: Five (5) years, with three five year renewal
options.
4. 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.
5. 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.
6. . Enforcement: Failure to comply with lease may result in review
and revocation of the Joint Use parking agreement (A 119-86).
7. 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.
8. Use Changes: City must be notified of any use changes,
subleases, or tenancy change which would increase the 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 appear underutilized, primarily due to the
relocation of SP train operations.__.
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 to secure additional
parking, either through lease or purchase, as part of our
long-range parking management for Railroad Square.
Depending on the outcome of the discussions and the proposed
parking distribution, staff will make recommendations for improved
parking usage. In addition to Public Work's parking management I
program, Community Development staff hope to continue work on the
J area's improvement and preservation. Railroad Square is a key
gateway to the City, and staff sees the need for additional
planning efforts in the near- to mid-term. This may include
setting commercial, cultural, or recreational land use objectives,
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ME 1 COUNCIL AGENDA REPORT
Council Agenda Report
Page Four
establishing design guidelines, or designing new public facilities,
such as a railroad museum or historic exhibit. However given the
current Council workprogram and available resources, it does not
appear timely to initiate such a planning effort before late 1990.
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 ($260, 000) initial investment ($100, 000) and'
interest.
OTHER DEPARTMENT COMMENTS
Community Development Department has determined a negative
declaration on environmental impact and granted approval of an
administrative use permit to implement the parking program. The
City Attorney has approved the form and content of the lease.
I
CONSEQUENCE OF NOT TARING THE 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.
RECOMMENDED ACTION
Adopt resolution which: 1) approves the lease agreement for
Railroad Square property owners, 2) directs 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: Exhibit A - Area Map
Exhibit B - Resolution 5859, 1985 Series
Draft Resolution
Draft Parking Lease Agreement
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moll I COUNCIL AGENDA REPORT
Council Agenda Report
Page Five
Attachments: Exhibit A - Area Map
Exhibit B - Resolution 5859 , 1985 Series
-Draft Resolution
Draft Parking Lease Agreement
I
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, th@ City ha@ ngr@@d to op@rat@ and IIIA 1 M-.A I II t-Jis;
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 facilities through the use or
acquisition of additional railroad property.
Resolution No. (1989 Series)
Page 2
Copies of this resolution shall be made available in the City
Clerk's Office.
On motion of seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was passed and adopted this
day of 1989
Mayor _
ATTEST:
CITY CLERK
APPRO
CITY MINIS T OFFICER
'FtN.ANrR DIRECTOR
CITY ATTO Y
COMMUNITY DEVELOPMENT DIRECTOR
PUBLIC WORKS DIRECTOR
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Department of Community dav� t PARKING SERVICE AREA
990 Palm Street/Poet Otitos Bo:321,San Luis Obispo,CA 93406
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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
1
Resolution 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:
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 DAremher 1985
MayRon Dunin
ATTEST:
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CITY CLERK PAMELA AVOGES -4—
APPROVED:
City Administ a ive 4ffic
Finance Dir for
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:City .At orney
Community Development Director
Public Works Department Director
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PARKING CALCS WORKSHEET
Department of Community Development, 990 Palm Street/Post Office Box 321, San Luis Obispo, CA 93406(805) 541.1000
Project Name_ Railroad Square Parking Program A 119-86
— Pile Number_.— -- --
1820 Osos Street.
Project Address ---_----• ._. . .._.. _ _ Plans Dated
J. Hook 3/31/87 C-S-S 126
Catcs Prepared Dy___. Date Zone _. Parking Provided..
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 spaces (4 space
credit). *Request for joint use of city parking facilities does not require mixed-
use reduction. However with a 20% reduction, the reduction would be 183-37= 146 snac
(SLOW 17.16.060.C) Actual parking_reduction proposed_ = 53/183 = 29%.
- _ EXHIBIT B
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usi shelter, for 16 people � !
ude: celephone, benches, i transit Infor.ecion Long-term park A `
loading cone -(2)
loading tone (2)
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lockers: for 16 bike iA
p a
stands: for 24 bike
and Aide spaces (2)
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standard handicapped CompaCtj total I motorcyc es \
18 10 28 9 Bike s ikei
23 2 7 32 2 / �Crs
31 2 12 IS Loading Zone
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50 1 18 69 7 R tion
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122 5 17 1174 18
Bus/t i shelter i I
Park & Ride spaces
Bus parking
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san Luis 4B1SnO INTERMODAL FACILITY
iigDepartment of Community Development
IMPROVEMENTS
teat/Pont OfficeBox 321,San hole Obispo,CA 93406 �
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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:
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 W'; 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 (A119-86) 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
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 I of each year. A I0-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:
Prepayment (Private Contribution)
LESSEE shall have the option to prepay his/her portion of the private contribution for
development of the Railroad Square Parking Service Area. Full reimbursement shall. be
based on the number of spaces required by Section 17.16.060 of the City's Zoning
,4 �
Parking Lease Agreement �)
Page Three
Regulations, as shown in Exhibit B. The prepayment rate for each required space as shown
in Exhibit B shall be $568 calculated by dividing the total private contribution
($100,000) by the total required spaces for Railroad Square (176). The prepayment amount
applies only to the amortized capital costs for parking facilities and not to operating or
maintenance costs. LESSEE shall be required to pay $8.00 per space for operating and
maintenance expenses for the term of the agreement. LESSEE can prepay the balance of
his/her private contribution at any time during the lease, whereby the amount due would be
prorated at the time of payment.
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 }
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
l
agreement.
I � �
u Parking Lease Agreement
Page Four
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 operation and traffic
flow and the right to install parking meters or other control devices as necessary to
insure the safe and efficient operation of the paiking 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 LESSEE's 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
Parking Lease Agreement
Page Five
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
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 CITY under or 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.
��9
Parking Lease Agreement
Page Six
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".
IN WITNESS THEREOF, the parties hereto have executed this agreement on the day and year
written above:
LESSEE:
CITY OF SAN LUIS OBISPO:
U
City Administrative Officer
ATTEST:
City Clerk
APPROVED AS TO FO M:
City Attorney
APPROVED AS TO CONTENT:
Community Development Director
Public Works Director
P/agreement
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