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HomeMy WebLinkAbout11/14/1989, 4 - CONSIDERATION OF WAIVER/MODIFICATION OF PARKING USER FEES FOR ALANO CLUB PROPERTY IN RAILROAD SQUAR l � - M 'NG DATE: A�lll city of San Luis OBISPOMain � , ,9 COUNCIL AGENDA REPORT `�'N"N'BE'L David F. Romero Wayne A. Pete on Prepared by: Keith Opalewski Public Works Director City Engin Parking Program Coordinator SUBJECT: Consideration of Waiver/Modification of Parking User Fees for Alano Club Property in Railroad Square CAO RECOMMENDATION: By motion, adopt policy that all users of parking spaces located within the Railroad Square Parking Service Area must pay the rate established in the approved lease agreement. BACKGROUND: At its meeting of September 19, 1989, Council adopted Resolution No. 6693 (Exhibit A) establishing a parking user fee for property owners in the Railroad Square Parking Service Area. Prior to the final vote by Council a public hearing was held to hear comments from people who would be affected by the user fees. A representative from the Alano Club conveyed that they are a non-profit organization and the proposed fee would pose a financial hardship. Council directed Alano Club to discuss the matter with their Board of Directors and propose a fee that they could pay. The September 28, 1989 letter (Exhibit B) to Mayor Dunin and Council states that the Alano Club could possibly pay $50 per month for their required parking spaces. DISCUSSION: The adoption of Resolution No. 6693 was the culmination of years of work by staff members, which included numerous meetings with property owners who would be affected by the parking program. It should be noted that the bulk of discussions centered around the monthly rate for parking spaces ($12.00 final rate). All property owners including the Alano Club signed planning applications (Exhibit C) confirming their support for the parking program. In fact, the establishment of a joint use parking program benefited all users by reducing the overall parking requirments from 176 required to the 130 spaces provided. The latter was contingent upon the premise that since it was a joint use parking area, all property owners would participate in the program. When the issue came before the Council only the Alana Club lobbied for a reduced rate based on the assumption that their services benefited the community and they were non-profit. Although the Alana Club may enjoy a non-profit tax exempt status for their community service, the property owned by them also includes two retail businesses. The retail businesses jointly have a five space parking requirement, which added to Alano's 20 space requirement converts to 25 spaces to be provided. Common parking provided in the parking lot off Church Street also is owned by the Alano Club. The total parking spaces in the lot is six, thereby reducing the total required spaces for the property to 19. The retail businesses are a source of revenue for the Alano Club. According to BIA figures the average cost for retail space in downtown is $1.50 per square foot. Thus, the 1428 square feet of space represents potential monthly income of $2142. The required monthly parking fee ($228) is only slightly more than 10% of their monthly rental income. 111111011.4111 city of san tins osispo NMZS COUNCIL AGENDA REPORT Council Agenda Report Page Two Contrary to Alano Club's claim of not being a normal member of the Railroad Square Association, the inclusion of retail businesses and the location of the club within the Railroad Square Parking Service Area suggests that they should pay the fair fee for Railroad Square parking spaces. ALTERNATIVES: Given the non-profit nature of the Alano Club the following options are possible to fulfill their parking requirements. Option A - Full market value of $228 per month for 19 required spaces. (Staff recommendation) Option B - Give additional (double) credit for the six off-site spaces on Church Street and reduce their parking required to 13 spaces ($158 monthly). Note: No other businesses receive double credit. Option C - Accept Alano Club's proposal of $50 per month which equates to a 4 space requirement. FISCAL IMPACT: - Accepting any other option besides full market value will reduce Railroad Square parking revenue by a range of $840 to $2136 annually. OTHER DEPARTMENT COMMENTS: Community Development concurs with staff that Alano Club should pay full market value for their parking. CONSEQUENCES OF NOT TAKING RECOMMENDED ACTION: Accepting a lower monthly parking fee for Alano Club will reduce the funding for the overall project. Furthermore, this action would set a precedent for other retail users to request a review and possible reduction in their parking requirement. RECOMMENDATION: Adopt policy that all users of parking spaces established by the joint use parking program pay full market value set forth in the lease agreement. ACTION TAKEN: _Approved as recommended as modified Denied Continued Vote: ,1111%jjQW1§j CTCy of san luis OBISpo COUNCIL AGENDA REPORT Council Agenda Report Page Three APPROVED: City A trative Officer Director of Finance City Attorn y Attachments: Resolution No. 6693 memorandum from Alano Club Board of Directors Planning Application I �-3 Alano Club, Inc. 1814 Osos St. — San Luis Obispo, CA -t IM 0D U .; •i To Ron Dunin Date. September 28, 1989 Mayor, San Luis Obispo Copies: NP. Petersen R. Pinard P. Rappa J. Reiss !1r// A. Settle From Bud B. Secretary, Alano Club Board of Directors OF A`MWsK, Subject Railroad Square Parking Lease Agreement You will recall that the Railroad Square Parking Lease Agreement. was discussed at the Council meeting of September 19, 1989. At that time I presented certain facts about the Alano Club of San Luis Obispo. I explained that we are a non-profit organization of sober alcoholics. We acquired the property in 1961 from Earl Bernard. who made, it available to us n, on an interest free loan, providing that it continue to serve recovering alcoholics. I also noted that while the Club is a distinct entity from Alcoholics Anonymous, it i.s the facility used by the Pioneer Group of AA and that 75 per cent of all AA meetings in San Luis Obispo useour facilities. In addition, the Club is a safe have for its members 7 days a week and we:. sponsor sober events for the entire recovery community throughout the year. I indicated to the Council that for these reasons we were not a normal member of the Railroad Square Association and that we simply could not afford to pay the assessment developed by city staff. At that point you, Fir. Mayor, asked if we .could afford to pay any part of the assessment. I replied that I did not 'Know but that I would raise the issue with the Board of Directors at our next meeting. The resolution in question then passed the Council with the understanding that we would apply for a waiver of the parking fees referred to in the draft lease agreement. The Alano Club Board of Directors met on September 27, 1989. After discussion and consultation with Club Manager- Pete Petersen , we determined that we. could probably manage to pay $50.00 per rionth. We are unclear as to the procedures that should be followed in order to obtain a formal waiver or modification of the financial terms contained in the Railroad Square Parking Lease Agreement, Your advise on this matter would be appreciated. OCT 2 CITY CLERK Sat:1.l:iS onl.SPo. l`p C-11A, 01' SAF WIS 01i1s�)o L PLANNING APPLICA) ION lr'r•r11111.-4.vM1L1,DPI1i . 49h Ditm:•I.IwI P O BV•el'.r • ... I)tu..•e r 17.4 r. . . \ •i', ,, .' .... '"� dud r',. 'r. . . .. . —___--_ _ rt• . -AIL ale !:I(pr%,pn'hnrr 9 Ir D, z. n'•: • .;r :I. +• �ar W can 10 a' •ti'••'-4~I✓W QW1- the aermit to allow a narking reductior. (176 recjired. 130 spaces provide) far a joint use ,parking program for Railroad Square, and to allow offsitP :larking. rr.:aucll:., _1820 nses St. . `mIxt osyaem a maeras, Railroad Square area +sass«:vmcoaaarkmemrawcvoes,a� APPLl WMMPIUBITATWM t Mw revoww tan can PRMMTV OTMEAJAUMOMMU AGENT• I naw ..aa rMno a001cid a are no aaaeaao met~ The woos latwn oro eanoJeW aDWIc~and eawnl w.y n.,r0 . •.ow to*ft 1a -Iry^N+net owrwI.nat m aOD' O � a appD.al 9/25/85 - . .s.• r ..-y„y.., -a NY..+....: :amu. �..�.L ' s'2y�'�.,6i!' r.�y'•' "s'.'� .- ��h..���'C!S' -�3�.?SC1T��'JY."5i..,1['A/�n!'flj RESOLUTION NO. 0-69J.. (1989 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING A PARKING USER FEE FOR PROPERTY OWNERS It+ THE R=AILROAD SQUAPE PAR::T_::C 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 implement parking control measures in.. all or part of the Railroad Square parking area. 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. R6693 i Resolution No. 6693 (1989 Series) Page 2 Copies of this resolution shall be made available in the City Clerk's Office. On motion of Mayor Duninseconded. by Councilwoman Pinard and on the following roll call vote: AYES: Mayor Dunin, Councilmembers Pinard, Rappa, Reiss and Settle NOES: None ABSENT: None the foregoing resolution was passed and adopted this ]Qrh day of September 1989 ayor Ron Dunin i ATTEST: pt-w" u CIT CLERK P oges APPROV CITY1 MINISTR'AT E OFFICER FINANCE DIRECTOR CITY ATTO Y COMMUNITY DEVELOPMENT DIRECTOR PUBLIC WORKS DIRECTOR .a, M1,- rNG AGENDA WE ITEM # Alano Club, Inc. 1814 Osos St. San Luis Obispo, CA M E M O R A N D U M To Ron Dunin Date November 9, 1989 Mayor, San Luis Obispo "Upies Finance Department P. Petersen From Bud B. Secretary, D Alano Club Board of Directors Subject Railroad Square Parking Lease Agreement You may recall that I wrote you on September 28, 1989 (copy enclosed) regarding the discussion of the Railroad Square Parking Lease Agree- ment that had occurred during the City Council meeting on September 1.9, 1989. In that memorandum I asked for a statement of procedures to enable us to obtain the waiver/modification of the termsof the draft lease agreement that was discussed that evening. I realize that there are many pressing issues that have to be dealt with, but since I last wrote to you we have recieved Invoice No. 7023 from the City of San Luis Obispo requesting payment of the amount specified in the draft agreement. While we are reluctant to ignore the invoice, we feel we can not take any action until we obtain some clarifications from you regarding the intent of the Council on September 19, 1989. We look forward to hearing from you and hope to get this issue settled and behind us at an early date. + RECEIVED NOV 1 4 ��; _ CITY CLERK f r SAN LUIS OBISPO. CA ✓ ,car E i Alarm Club, Inc . 1R l l Osus St. San Luis Obispo, CA �A M L M O R A i H U M To Ron Uunin Date September 28, 1989 Mayor, San Luis Obis"i,,, . Copies: P. Petersen R. Pinard P. Rappa J. Reiss From bud B. Secretary, &Z-fl)A. Settle Alano Club Board of Directors Subject Railroad Square Parking Lease Agreement You will recall that the Railroad Square Parking Lease Agreement was discussed at the Council meeting of September 1.9; 1989. At that time I presented certain facts about the Alano Club of San Luis Obispo. I explained that we are a non-profit organization of sober alcoholics. We acquired the property in 1961 from Earl Bernard who made it available to us on an interest free loan, providing that it continue to serve recovering alcoholics. I also noted that while the Club is a distinct entity from Alcoholics Anonymous, it i� the facility used by the Pioneer Group of AA and that 75 per cent of all AA meetings in San Luis Obispo use our facilities. In addition, the Club is a safe have for its members 7 days a week and we , sponsor sober events for the entire recovery community throughout the year. I indicated to the Council that for these reasons we were not a normal member of the Railroad Square Association and that we simply could not afford to pay the assessment developed by city staff. At that point you, Mr. Mayor, asked if we could afford to pay any part of the assessment. I replied that I did not know but that I would raise the issue with the BrIrd of Directors at our next meeting. The resolution in question then passed the Council with the understanding that we would apply for a waiver of the parking fees referred to in the draft lease agreement. The Alano Club Board of Directors met on September 27, 1989. After discussion and consultation with Club Manager Pete Petersen , we determined that we could probably manage to pay $50. 00 per month. We are unclear as to the procedures that shoutd be followed in order to obtain a formal waiver or modification of the financial terms contained in the Railroad Square Parking Lease Agreement. Your advise on this matter would be appreciated.