HomeMy WebLinkAbout06-16-2015 PH1A Parking Fund ReviewCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Timothy Bochum, Deputy Director of Public Works
Ryan Betz, Administrative Analyst
Jeff Brown, Parking Manager
Alex Fuchs, Assistant to the Parking Manager
SUBJECT: 2015 PARKING FUND REVIEW
RECOMMENDATIONS
1. Review and accept the 2015-16 Parking Fund financial review.
2. Conceptually approve the Parking Enterprise Fund budget of 2015-16 with final action on
June 23, 2015 with the adoption of the 2015-17 Financial Plan;
3. Adopt an ordinance approving an increase in parking meter rates to $1.50 at all credit
card capable meters relocated from surface parking lots 2, 3, and 11.
4. Adopt a resolution approving modifications to parking rates in the parking structures
effective August 1, 2015.
REPORT IN BRIEF
This report summarizes the 2015-17 Parking Fund Analysis, reviews the Parking Division’s
accomplishments, discusses the implications of downtown development relative to parking
supply, and recommends rate modifications which essentially expand the SuperCore and make
the structures more in line with the rates paid in the relocated lots and with each other.
Specifically, the following summarizes the major topics found within the report:
1. The Parking Division accomplished a number of important initiatives including the
implementation of the new Mission-Orchard Residential Permit District, new coin
collection contract agreement and the adoption of the Parking Services Organizational
Assessment
2. The Fund Analysis anticipates the financial implications of several downtown projects
including the Chinatown, Garden Street Terraces (GST) and Palm/Nipomo parking
structure.
3. A proposed Council study session in Fall 2015 to update the schedule for delivery of the
Palm/Nipomo parking structure and bring forward financing issues.
4. Two Significant Operating Program Change requests, including a new Assistant Parking
Manager position as recommended in the Parking Services Organizational Assessment.
5. A proposal to relocate existing credit card meters from surface parking lots 2, 3, and 11;
increasing the parking meter rate from $1.25 to $1.50; and increasing rates in the parking
structures hourly rate from $0.75 per hour to $1.00 per hour.
June 16, 2015
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2015-17 Parking Fund Review Page 2
DISCUSSION
This report presents the annual 2015 Parking Fund Review. It highlights adjustments made to
the Parking Fund Analysis since the preparation of the 2013-15 Financial Plan Supplement and
the 2014-15 budget.
As outlined in the 2015-16 Parking Fund Analysis (Attachment 1), which forecasts the financial
position of the Parking Fund through 2019-20, the City is able to:
1. Provide parking services and access for the Downtown businesses, visitors and patrons;
2. Provide parking services and enforcement for residential permit district areas;
3. Fund debt service for the completed parking structures as well as long-term financing
obligations for the Palm-Nipomo parking structure;
4. Meet bond covenants and debt ratios to maintain a strong bond rating;
5. Fund reserves as set by policy;
6. Continue capital maintenance projects to maintain assets and provide high quality
services; and
7. Promote revitalization and reinvestment in our Downtown by accommodating public-
private partnerships with the Garden Street Terraces and Chinatown projects.
2015-16 Parking Fund Analysis
The attached 2015-16 Parking Fund Analysis Report (Attachment 1) includes changes in
financial position, analysis assumptions, an update on major activities and programs, and
incorporates the following key financial impacts:
1. Lots 2, 3 and 11 will close in FY 2015-16 as part of the Garden Street Terraces (GST)
and Chinatown projects beginning construction.
2. Significant revenue changes that occur as a result of the above mentioned projects
including relocation of existing credit card meters and increased use of parking
structures as parking demand is relocated.
3. 2015-16 salary and benefit updates including increased City PERS contributions
commencing on July 1, 2015.
4. Two Significant Operating Program Changes.
5. The Palm-Nipomo Parking structure begins construction in FY 2017-18 and is partially
debt financed.
The Parking Fund continues to be healthy in its ability to support expenses, capital projects, and
debt service obligations. Furthermore, the Parking Fund is able to maintain the minimum 20%
reserve level in working capital in accordance with City Financial Management policies. This
report highlights significant issues that affect the Parking Fund for the FY 2015-17 Financial
Plan and beyond. Specifically, three major projects in the downtown area (Chinatown Project,
GST Project, and the Palm-Nipomo Parking Structure) result in significant changes in the
financial position projections for the Parking Fund as discussed herein.
Historically, the Parking Enterprise Fund has assumed the need for a 10% increase in revenues
every third year. This revenue increase is expected to come from periodic system-wide rate
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increases. Although a system-wide rate increase is not recommended to occur with the adoption
of the budget, it is anticipated to be presented for City Council consideration later in the year as
part of a study session to discuss the revised schedule, design and delivery of the Palm-Nipomo
Structure. It is worth noting that a similar system-wide rate increase will be needed in 2018-19.
This report seeks Council approval of two changes to parking rates as part of the Fund approval.
Rate changes recommended at this time are not system-wide but are to accomplish two goals.
First, an expansion of the Super Core area (Attachment 2) needs to occur with the relocation of
credit card meters from the lots being taken out of commission. Second, the long deferred rate
change in the parking structures should be implemented prior to the shift in parking demand to
align rates and establish an appropriate differential with street meter rates.
Super Core Expansion
Staff proposes relocating existing credit card meters from surface parking lots 2, 3, and 11 (due
to the GST and Chinatown projects) to other high activity locations and increasing the parking
meter rate from $1.25 to $1.50 to expand the super core parking area. This will add convenience
and customer-service amenities to a wider portion of the Downtown.
Structure Alignment
Staff proposes increasing rates in the parking structures so that all three parking structures are in
alignment with each other and with rates in the lots. The modification in rates is directly related
to the closure of surface parking lots 2, 3, and 11 due to construction of the Chinatown Project
and the GST Project, the loss of the higher return surface parking revenue and the need to have
the structures return higher yield as parking demand is redistributed.
Parking Fund Revenues
Overall, Parking Fund revenues are healthy as the economy continues to improve. Revenues
have largely stabilized since the installation of the credit card capable meters and enforcement of
Sunday parking implemented three years ago. Table 1 (on the following page) shows Parking
Fund revenue trends with actuals from the four previous years . The Phase I of Chinatown has
occurred sooner than expected. As a result, revenues for fines & forfeitures as well as lot
revenues will be down from historic at the end of FY 2014-15. This has been offset with the
payment of mitigation funds, ($838,000) for the lost public parking spaces paid by the
development and already collected in FY 14-15 Parking fines revenue fluctuates from year-to-
year depending on the number of violations, randomized enforcement, changes in Parking staff,
and a preference toward compliance over citation issuance. Overall, fines will likely be down
from projected by years end.
Long term parking revenue (10 Hour Permits, meter bags, etc.) for the fund are strong mostly
due to the addition of the Mission-Orchard residential district and the installation of 10-Hour
meters on Palm Street in front of Mission Prep School.
Looking forward into the Financial Plan forecast, the Parking Fund will see significant changes
in revenue line items starting in FY 2015-16. The loss of lots 2, 3 and 11 for the GST and
Chinatown projects will reduce lot revenues and redistribute parking demand into the structures
and adjacent street meters. Revenues in the structures as well as street meters are anticipated to
increase due to this relocated demand. In addition, increases are anticipated due to the relocation
of credit card meters from the lots along with rate increases as recommended in this report.
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Significant Parking in-lieu fees are anticipated in FY 2015-16 due to the construction of
Chinatown, Garden Street Terraces and the Granada Hotel projects. These fees, although shown
as revenues, are one time only and are income to be used for the development or maintenance of
parking that satisfies the demand requirements of new development projects within the Parking
In-Lieu fee area.
Table 1: Parking Fund Revenue Trends
2012-132013-142014-152015-162016-17
Revenues ActualActualBudgetBudgetBudget
Metered Lots 519,900534,002 530,300 174,200 (1)166,200
Meters on Street 1,305,6001,375,260 1,325,000 1,523,800 1,606,200
Structures 821,600845,574 863,800 1,044,200 1,183,700
Long-Term Parking 386,700423,363 391,500 430,600 434,900
Leases 205,300225,448 218,300 480,500 (2)482,900
Parking In-Lieu 822,3009,300 857,100 (3)3,760,100 (4)20,200
Parking Fines 631,100585,783 708,300 663,200 673,000
Other Revenue 100 100
Investments 33,600124,130 35,000 28,300 45,500
Totals4,726,1004,122,860 4,929,300 8,105,000 4,612,700
(1) Loss of Lot 2 due to Garden Street Terraces Project and loss of remaining Lots 3 and 11 due to Chinatown Project phase two
(2) Garden Street Terraces Project loan repayment and rent payment
(3) Chinatown Project phase one (Monterey Development)
(4) Parking In-Lieu fees for: Garden Street Terraces Project, Granada Inn Hotel & Bistro, and Chinatown Project phase two
Operating Program Expenses
The Parking Fund’s operating program budget was developed in order to provide the community
with high quality, safe parking and access services. The budget includes two Significant
Operating Program Change requests, as summarized on page 4 of Attachment 1. This includes
funding of a new Assistant Parking Manager position as recommended in the 2014 Parking
Services Organizational Assessment report in order to help with management and operations of
the parking program.
Capital Improvement Plan
The City’s 2015-20 five-year Capital Improvement Plan (CIP) identifies approximately $23.88
million projects to be constructed by the Parking Fund. Most notable of these will be the
construction of the Palm-Nipomo Parking Structure anticipated to begin in FY 2017-18.
Palm-Nipomo Parking Structure when constructed, will permanently remove approximately 77
metered parking spaces in the city-owned surface parking lot 14 and is anticipated to create
approximately 445 parking spaces; for a net total of 368 parking spaces. It is assumed that Palm-
Nipomo will cost $23.6 million to construct; $17.6 million from debt financing or Bond Issuance
and the remaining $6 million from the Parking Fund’s working capital. A Council study session
is anticipated in Fall 2015 to update schedule for delivery of the project and bring forward
financing issues.
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In 2015, the City will implement a pilot program using Vehicle License Plate Recognition (LPR)
to test improvements to enforcement efficiencies as well as operational savings.
Additionally, a parking structure assessment report will be conducted in FY 2015-16 to
determine the condition of existing garages and make recommendations for long term
maintenance to extend useful life of the facilities. A summary of all projects can be found on
page 4 of Attachment 1 and detailed project descriptions are included in the 2015-17 Financial
Plan (CIP).
Chinatown Project
The first phase of the Chinatown Project (Monterey Street development) began construction in
March 2015. The first phase permanently removed approximately 41 metered parking spaces
from the city-owned surface parking lots 3 and 11. The second phase of the Chinatown Project is
anticipated to begin in September 2015 and will permanently remove the remaining 110+/-
metered parking spaces in surface parking lots 3 and 11. All the parking meters removed from
parking lots 3 and 11 are credit card capable meters and will be relocated to other high demand
locations as discussed later in the report. The parking meters removed from parking lots 3 and 11
due to the first phase of the Chinatown Project have been relocated to surface parking lot 10 as
well as on-street along the 600 block of Higuera.
As part of Phase II construction of Chinatown significant changes occur to the Parking Fund.
The project will pay approximately $3,070,000 in one-time only parking in lieu and mitigation
fees in FY 2015-16. Revenues from lots 3 and 11 will cease and parking demand will relocate to
the structures and street meters.
Garden Street Terraces
Garden Street Terraces is anticipated to begin construction in July 2015. When constructed, the
project will permanently remove approximately 60 metered parking spaces in the city-owned
surface parking lot 2. All the parking meters removed from parking lot 2 are credit card capable
meters and will be relocated elsewhere in the downtown area.
In February 2014 the City and Garden Street SLO Partners, L.P. (Developer) renegotiated and
signed the Memorandum of Agreements (MOU) for the Garden Street Terraces Project. The final
MOU changed several financial implications for the Parking Fund. All of the assumptions are
programmed to occur in 2015-16. These include the following for the Parking Fund:
1. The Parking Fund will loan the Developer $500,000 in FY 15-16.
2. The estimated loan repayment amount will be $36,000 per year for 30 years with a
potential “buy out” balloon payment at the end of the 10-year period.
3. The base rent of $204,379 is assumed to go to the Parking Fund for approximately 9
years. Thereafter, the rent will go to the General Fund.
4. The Parking Fund will receive $245,960 in one time only Parking In-Lieu fees for 13
unmet parking spaces not provided on the project site.
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Proposed Revisions to Parking Rates and Service Charges
1. Super Core Expansion
Credit card meters have been a success and well-liked by parking users. Credit meters already
removed from parking lots 3 and 11 due to the first phase of the Chinatown Project have been
relocated to surface parking lot 10 as well as on-street along the high demand 600 block of
Higuera. Approximately 189 more credit card meters (on and off-street) will need to be relocated
when Chinatown Phase II and GST begin construction. These meters will be relocated to high
activity locations or where parking is anticipated to increase as part of the lot closures.
Staff recommends establishing the $1.50 per hour “Super Core” meter rate wherever these credit
card meters are redeployed. This is consistent with the philosophy of creating differential costs
between the super core and core meter rates and will help direct users to the parking structures.
Additionally the rate increase helps cover the cost of providing the convenience of credit card
acceptance. The following locations are proposed for credit meter relocation:
Location No. of Meters
1. Surface parking lot 10 * 27
2. 600 block of Higuera Street* 25
3. 1000 block of Higuera Street 23
4. 700 block of Marsh Street 28
5. 900 block of Marsh Street 13
6. 1000 block of Marsh Street 21
7. 1000 block of Monterey Street 10
8. 1000 block of Osos Street 16
9. 800 block of Palm Street 14
10. 600 block of Marsh Street 15
11. 1100 block of Nipomo Street 10
12. 600 block of Monterey Street 20
Total 222
*Already occurred due to phase one of Chinatown Project. Currently at the $1.25/hour rate
Attachment 2 is an ordinance expanding the $1.50 per hour SuperCore zone. Attachment 3 is a
map showing the area proposed for expansion.
2. Structure Alignment
The last rate enhancement in the parking structures occurred in 2004, over ten years ago, when
the hourly rate was increased from $0.60 per hour to $0.75 per hour. As lots 2, 3 and 11 close
and parking is redistributed it is important to keep pace with the significant loss of revenue
associated with the displacement of these high revenue locations.
The last recommendation for base parking structure rate increase was in 2009 when it was
proposed that an hourly rate enhancement from $0.75 per hour to $1.00 per hour should be
undertaken.
On July 7, 2009 the Council adopted a rate change for structures to be increased the following
year in July 2010. Subsequently, the Council deferred, and then ultimately cancelled, the rate
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increase until the economy improved. Since that time the Super Core has been established for
Downtown, core meter rates are now $1.25 per hour and credit card meters have been installed in
high activity locations. The economy has rebounded and redevelopment of Downtown is robust.
Implementing the base rate increase in the structures as lots 2, 3 and 11 are lost will help mitigate
the lost lot revenues due to lot closures. The “first 60 minutes free” provision of the structures is
proposed to be maintained.
Staff recommends enhancing the parking structure rates as part of the fund review to coincide
with closures of the lots. This will bring all structures into alignment with each other as far as
costs of use. Even with the proposed rate changes there still will be substantial differential
between the street and lot spaces and the structures. Not including the 60 Minute free program,
there will be a 50/25% differential between the Super Core ($1.50) and Core ($1.25) meter rates
with the hourly structure rates.
Below are the proposed structure rate changes:
1. Hourly rate: $0.75 per hour to $1.00 per hour
2. Daily maximum rate: $7.50 to $10.00
3. Structure validation booklets: $45 for 100 hours to $60 for 100 hours
4. Proxcards: Increase 842 Palm Street from $180 quarterly to $225 quarterly (919 Palm
and 871 Marsh are both currently at the $225 per quarter rate)
Attachment 4 is a resolution establishing the rate changes recommended for the structure
changes and the new hourly rate for the relocated credit card meters.
3. Credit Card Acceptance in Parking Structures
In 2009-10 Council approved a capital improvement project (CIP) for $113,000 to upgrade the
ticket dispensers and analog timers for the access and revenue control equipment in the parking
structures. The project did not include upgrading booth equipment to accept credit or debit. The
parking structure equipment has yet to be replaced and continues to operate beyond the typical
life expectancy of 10 years. This is partially a result of the manufacturer no longer producing or
supporting the existing equipment, limited alternative manufacturers and determining the public
acceptance of the credit card meter. Now that the new Parking Services Manager has been hired
this equipment replacement project will be reactivated. As part of the project, assessment of
available market technologies for ticket machines as well as booth payment options will be
researched and determined. Changes in project scope and/or project costs will be brought to
Council as part of the project package in FY 2015-16.
Parking Fund Accomplishments in 2014-15
Typically the Fund Review is focused on financial and budgetary information; however, it is
important to look back at the accomplishments that have occurred during the last fiscal year.
Council’s approval of the Parking Fund budget allows the City to provide improved services and
support. The following is a list of Parking Services’ accomplishments in the 2014-15 fiscal year:
4. Implemented the new Mission-Orchard Residential Permit District
5. New coin collection contract agreement
6. Adoption of Parking Services Organizational Assessment
7. Hiring a new Parking Manager
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8. New handheld devices for Parking Enforcement Officers
9. 919 Palm tile replacement
10. Elevator maintenance services contract agreement
11. Improved financial security by purchasing a new safe
12. Published the 2013-14 Annual Report
13. Establishment and enforcement of 2-hour parking zone on Slack Street near Cal Poly
14. Final payment made toward 842 Palm Structure artifacts study
15. Relocated parking meters from Lots 3 and 11 (closed due to construction) to Lot 10 and
the 600 block of Higuera as part of Chinatown Phase I project.
16. Re-commissioned the pay-on-foot machine at 919 Palm Street parking structure
17. Replaced damaged/old signs throughout various Residential Parking Permit Districts
FISCAL IMPACT
Attached to this report is a detailed analysis of the Parking Fund revenues, expenditures, and
changes in financial position. The 2015 Parking Fund Analysis includes the key assumptions
used in preparing Fund projections. Consistent with the analysis presented to Council in this
report and in the Preliminary 2015-17 Financial Plan, there are sufficient funds to support
operations, capital projects, and debt service needs of the Parking Fund.
ALTERNATIVES
Council, at its discretion, can adopt all or part of the requested significant operating program
changes, capital improvement projects, or revenue enhancements presented in this report.
ATTACHMENTS
1. 2015-17 Parking Fund Analysis
2. Draft Ordinance
3. Expanded SuperCore Area Map
4. Resolution Structure Rates 2015
\\chstore7\team\council agenda reports\2015\2015-06-16\budget 15-17 enterprise fund reviews)\parking\car - 2015 parking fund review (new).docx
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ATTACHMENT 1
Parking Enterprise Fund
2015-17 Financial Plan
Parking Enterprise Fund
2015 Fund Analysis
May 12, 2015
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Attachment 1 – 2015 Parking Fund Analysis
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2015 Parking Fund
TABLE OF CONTENTS
Contents
I. OVERVIEW ........................................................................................................................... 3
II. 2015-17 FINANCIAL PLAN ................................................................................................. 4
a. Summary of Operating Programs ........................................................................................ 4
b. Capital Improvement Program ............................................................................................. 4
c. Revenues .............................................................................................................................. 5
d. Debt Service ......................................................................................................................... 6
III. ASSUMPTIONS ..................................................................................................................... 6
1. General Assumptions ........................................................................................................... 6
2. Parking Lots ......................................................................................................................... 6
3. Street Parking ....................................................................................................................... 7
4. Parking Structures ................................................................................................................ 7
5. Long Term Parking .............................................................................................................. 8
6. Parking Leases ..................................................................................................................... 8
7. Parking In-Lieu .................................................................................................................... 8
8. Investment Earnings............................................................................................................. 9
9. Parking Fines ....................................................................................................................... 9
10. Transportation & General Government Expenses ......................................................... 10
11. Capital Improvement Plan (CIP) Expenses .................................................................... 10
12. Debt Service ................................................................................................................... 10
IV. EXHIBIT A – 2015-17 Changes in Financial Position ........................................................ 11
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Attachment 1 – 2015 Parking Fund Analysis
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2015 Parking Fund Report
I. OVERVIEW
This report presents the financial condition of the Parking Fund based on the preliminary
2015-17 Financial Plan. Significant projects are anticipated in the next two years that will
affect the Parking Fund. The Garden Street Terraces project has been programmed in July
2015 and the second phase of the Chinatown Project has been programmed in September
2015; however, the projects may or may not occur in the time frames projected. The Palm-
Nipomo parking structure is programed to begin construction in FY 2017-18 to show the
future fiscal impacts to the Parking Fund. As previously assumed in the long term forecast of
the Parking Fund, parking rate, fines and forfeiture adjustments will be necessary in FY
2015-16 and again in FY 2020-21 to fund anticipated expenses, capital projects, and debt
service obligations.
This review highlights a healthy fund in its ability to support both current and anticipated
expenses, capital projects, and debt service obligations while maintaining the minimum 20%
reserve level in working capital in accordance with the City Financial Management policies.
Parking Fund Accomplishments in 2014-15
Typically the Fund Review is focused on financial and budgetary information; however, it is
important to look back at the accomplishments that have occurred during the last fiscal year.
Council’s approval of the Parking Fund budget allows the City to provide improved services
and support. The following is a list of Parking Services’ accomplishments in the 2014-15
fiscal year:
1. Implemented the new Mission-Orchard Residential Permit District
2. New Coin collection contract agreement
3. Adoption of Parking Services organizational assessment
4. Hiring of a new Parking Manager
5. New handheld devices for Parking Enforcement Officers
6. 919 tiles replacement
7. Elevator maintenance services contract agreement
8. Improved financial security by purchasing a new safe
9. Published the 2013-14 Annual Report
10. Establishment and enforcement of 2-hour parking zone on Slack Street near Cal Poly
11. Final payment made toward 842 Palm Structure artifacts study
12. Relocated parking meters from Lots 3 and 11 (closed due to construction) to Lot 10
and the 600 block of Higuera as part of Chinatown Phase I project.
13. Re-commissioned the pay-on-foot machine at 919 Palm Street parking structure
14. Replaced damaged/old signs throughout various Residential Parking Permit Districts
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Attachment 1 – 2015 Parking Fund Analysis
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II. 2015-17 FINANCIAL PLAN
1. Summary of Operating Programs
Below is the summary of the preliminary 2015-17 Financial Plan operating budget
projections for the Parking Services Enterprise Fund. The CalJPIA Retrospective
Allocation Liability and the Cost Assumptions for the Class/Compensation Study are not
included in the total for Operating Programs but are shown for reference purposes only.
The Credits line in the operating budget shown below represents savings from the closure
of surface parking lots 2, 3, 11, and 14 due to development of Chinatown Project, Garden
Street Terraces Project, and Palm-Nipomo Parking Structure.
2014-152015-162016-172017-182018-192019-2020
Revised BudgetBudget ProjectedProjectedProjected
Staffing *1,179,900$ 1,350,624$ 1,310,591$ 1,343,356$ 1,376,940$ 1,411,363
Contract Services 747,420$ 670,100$ 683,750$ 700,844$ 718,365$ 736,324
Other Operating Expenses 284,319$ 223,271$ 235,458$ 242,051$ 248,828$ 255,795
CalJPIA Retrospective Work Comp
CalJPIA Retrospective Alloc. Lib.35,028$
Cost Assumptions for Class/Comp 11,220$ 11,220$ 11,444$ 11,673$ 11,907$
Palm-Nipomo Expenses 197,570$ 202,887$
Credits -$ (40,800)$ (41,700)$ (50,100)$ (51,200)$ (52,400)
Total Parking Services 2,211,6392,203,1952,188,0992,236,1512,490,5032,553,969
Note *: Staffing costs shown in the above table includes the SOPC requests shown in the table below.
FY 2015-17 Parking SOPC Requests
2014-152015-162016-172017-182018-192019-2020
Revised BudgetBudget ProjectedProjectedProjected
SOPC Asst Parking Services Manager -$ 53,000$ 58,400$ 64,300$ 70,495$ 77,000
SOPC Bicycle Transportation Imp -$ 16,500$ 17,500$ 18,375$ 19,294$ 20,258
69,500$ 75,900$ 82,675$ 89,789$ 97,258$ 2. Capital Improvement Program
Below is the summary of the preliminary 2015-17 Financial Plan capital project budget
projections for the Parking Services Enterprise Fund. The table below shows the 2015-17
Capital Improvement Program and assumptions for capital projects in the Parking Fund.
The Palm-Nipomo Parking Structure is projected for July 2017; the earliest date at which
construction could occur. Debt financing will be used to fund a significant portion of the
project.
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Attachment 1 – 2015 Parking Fund Analysis
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Parking Capital Program 2014-152015-162016-172017-182018-192019-20
Revised BudgetBudget ProjectedProjectedProjected
Fleet Replacement: 2 Go-4s 16,347$ 34,000$
Fleet Replacement: Utility Vehicle 27,100$
Fleet Replacement: Pickup Trucks 29,500$ 31,500$
Palm Nipomo Construction 23,600,000$
Parking Structure Assessment 66,667$ 10,000$
Marsh Street Parking Garage Circ. Improve.78,000$
IT MS Office Replacement 5,700$ 4,909$
IT Radio Replacement 10,100$
IT Storage Capacity Upgrade 5,600$
IT UPS Battery Replacement 646$
IT VM Infrastructure 3,065$ 3,065$
IT Vehicle License Plate Recognition 135,000$ 10,000$ 10,000$ 10,000$ 10,000$
IT VoIP 6,233$ 646$
IT Radio Handhleds 9,339$
IT Tait Radio System 633$ 9,339$
IT Firewall Replacement 4,069$
IT Network Swith Replacement 4,955$
IT Finance System Replacement 62,500$
Carryover from Previous Years
Palm-Nipomo Land acquistion and
Environmental 227,117$
Palm-Nipomo Design 1,067,873$
Other Carryover projects 387,267$
Total Parking Capital Program 299,164$ 1,962,570$ 50,798$ 23,641,272$ 83,485$ 120,998$
3. Revenues
It is anticipated that Parking Fund revenues will continue to steadily grow with the
economy. Revenue projections assume a conservative 1% annual growth. A 10 %
increase in revenues is assumed in 2015-16 and every 3 years thereafter for rate
enhancements. Parking meter revenue from surface parking lots will decrease
significantly beginning in FY 2105-16 due to the closure of lots 2, 3, 11, and eventually
14. Revenue from on-street metered parking and structure parking will increase as
drivers that would have parked in lots 2, 3, 11, and 14 park elsewhere downtown.
Displaced credit card meters will be relocated to new locations in the super core area and
rates will be adjusted. Lease revenues will increase significantly due to the rental
payment and loan repayment for Garden Street Terraces. One time parking in-lieu fees
will be significant in FY 2015-16 due to the Garden Street, Chinatown and Granada
Hotel projects.
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Attachment 1 – 2015 Parking Fund Analysis
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2014-152015-162016-172017-182018-192019-2020
Revised BudgetBudget ProjectionProjectionProjection
Revenues
Service Charges
Parking Meter Collections
Lots 530,300 174,200 166,200 155,400 170,900 172,600
Streets 1,325,000 1,523,800 1,606,200 1,622,200 1,784,400 1,802,300
Parking Structure Collections 863,800 1,044,200 1,183,700 1,201,700 1,476,500 1,647,400
Long-Term Parking Revenues 391,500 430,600 434,900 439,300 483,200 488,000
Lease Revenues 218,300 480,500 482,900 485,300 513,900 516,600
Parking In-Lieu Fees 857,100 3,760,100 20,200 20,400 22,400 22,600
Other Service Charges 100 100 100 100 100 100
Total Service Charges 4,186,100 7,413,500 3,894,200 3,924,400 4,451,400 4,649,600
Investment and Property Revenues 35,000 28,300 45,500 53,300 21,600 19,600
Fines and Forfeitures 708,300 663,200 673,000 672,900 771,200 782,000
Other Revenues
Total Revenues 4,929,400 8,105,000 4,612,700 4,650,600 5,244,200 5,451,200
4. Debt Service
Debt Service for 842 Palm and the original Marsh parking structures ended June 2014.
Debt Service for the Palm - Nipomo Parking Structure is scheduled to begin in FY 2017-
18, the earliest date at which construction could occur. Annual payments for Palm-
Nipomo will average $1.45 million depending upon final debt financing terms. The next
debt service to be retired is for the Marsh Street Parking Structure expansion which will
occur in August 2031.
Parking Debt Service 2014-152015-162016-172017-182018-192019-20
Revised BudgetBudget ProjectedProjectedProjected
842 Palm & Marsh until Jun 2014
Marsh Expansion until Aug 2031 421,399$ 420,577$ 419,729$ 418,856$ 417,955$ 417,027$
919 Palm until Jun 2036 537,847$ 540,439$ 539,899$ 538,755$ 539,803$ 540,275$
Palm-Nipomo until 2048 1,086,023$ 1,452,112$ 1,450,684$
Dispatch Ctr Upgrade until Jun 2039 9,900$ 9,800$ 9,800$ 9,800$ 9,700$ 4,200$
969,100$ 970,800$ 969,400$ 2,053,400$ 2,419,600$ 2,412,200$
III. ASSUMPTIONS
The following assumptions have been programmed into the long-term forecast of the
Parking Fund. For consistency in Fund projections, the estimated project dates are
assumed at the soonest the projects could occur. If the projects occur later than
anticipated, it will allow for additional revenues to accumulate for the Fund.
1. General Assumptions
Minimum working capital reserve should equal at least 20% of the total Operating
Program expenditures according to the City's fiscal policy and Standard and Poor's rating
criteria. Based upon this policy, the minimum reserve level should be approximately
$590,000. The year-end working capital greatly exceeds the minimum reserve policy
levels.
2. Parking Lots
a. Assumes a conservative 1% growth in parking demand.
PH1A - 14
Attachment 1 – 2015 Parking Fund Analysis
Page 7
b. Consistent with previously adopted policies, 10% rate increases are assumed for
2015-16 and every 3 years thereafter for periodic rate adjustments.
c. The Memorandum of Agreement between the City of San Luis Obispo and
Garden Street SLO Partners, L.P., assumes that all parking spaces for Lot 2 will be
eliminated when the project begins. The soonest this will occur is July 2015. All
direct parking-related revenues will cease for this location in 2015-16.
d. The first phase of the Chinatown Project (Monterey Street development) removed
approximately 41 parking spaces from Parking Lots 3 & 11 in February of 2015.
e. The second phase of the Chinatown Project will remove the remaining 100+/-
parking spaces from Parking Lots 3 & 11. It is assumed that there will be
approximately two months of revenue from the remaining portions of lots 3 &11. The
soonest this will occur is September 2015. All direct parking related revenues will
cease for this location thereafter.
f. It is anticipated that some of the drivers that would have parked in Lots 2, 3, 11,
and 14 will instead park in garages due to the loss of lot parking spaces. With the first
hour free in garages, it is anticipated that only 50% of the revenues formally tied to
Lots 2, 3, 11, and 14 will be retained through garage parking fees.
g. Approximately 60 of the credit card meters removed in Lots 2, 3, and 11 have
been relocated to Lot 10. It is assumed that there will be a 38% increase revenues
where credit card meters are relocated.
h. Parking revenues from Lot 14 will cease due to the construction of the Palm-
Nipomo parking structure in 2017-18.
3. Street Parking
a. Assumes a conservative 1% growth in parking demand.
b. Consistent with previously adopted policies, 10% rate increases are assumed for
2015-16 and every 3 years thereafter for periodic rate adjustments.
c. Approximately 143 of the credit card meters removed from Lots 2, 3, and 11 will
be relocated to high demand street locations and increase the revenue at those
locations by 38% in 2015-16 and 2016-17. Credit card meters will be relocated as
the lot closures occur.
4. Parking Structures
a. Assumes a conservative 1% growth in parking demand.
b. The long deferred parking structure rate increases (7/7/2009) will be implemented
and will include:
i. Hourly rate: $0.75 per hour to $1.00 per hour
ii. Daily maximum rate: $7.50 to $10.00
iii. Structure validation booklets: $45 for 100 hours to $60 for 100 hours
iv. Proxcards: Increase 842 Palm Street from $180 quarterly to $225 quarterly
(919 Palm and 871 Marsh are both currently at the $225 per quarter rate)
c. Consistent with previously adopted policies, 10% rate increases are assumed for
2015-16 and every 3 years thereafter for periodic rate adjustments.
PH1A - 15
Attachment 1 – 2015 Parking Fund Analysis
Page 8
d. It is anticipated that some of the drivers that would have parked in Lots 2, 3, 11,
and 14 will instead park in garages due to the loss of lot parking spots. Due to the
first hour free in garages, it is anticipated that only 50% of the revenues formerly
tied to Lots 2, 3, 11, and 14 will be retained through garage parking fees.
e. A study will be conducted in FY 15-16 to determine condition of the parking
structures and make recommendations for new annual maintenance plans to
extend the useful life of each structure and minimize emergency repair needs.
5. Long-Term Parking
a. Assumes a conservative 1% growth in parking demand.
b. Consistent with previously adopted policies, 10% rate increases are assumed for
2015-16 and every 3 years thereafter for periodic rate adjustments.
c. There was an increase in 10-hour Residential Meter Permit sales in 2014-15 due
to the establishment of a Residential Parking Permit District near the downtown
area.
6. Parking Leases
a. Assumes a conservative 1% growth in parking demand.
b. Consistent with previously adopted policies, 10% rate increases are assumed for
2015-16 and every 3 years thereafter for periodic rate adjustments.
c. Section 16 of the Memorandum of Agreement between the City of San Luis
Obispo and Garden Street SLO Partners, L.P. states that the Parking Fund will
loan the developer $500,000, assumed in 2015-16. In the same year, the developer
will begin repayment to the City Parking Fund by paying approximately $36,000
per year for 30 years with the option of a balloon payment buyout at the end of 10
years.
d. Section 4 of the Memorandum of Agreement between the City of San Luis
Obispo and Garden Street SLO Partners, L.P. states that the City and the
Developer will enter into a long-term lease (99 years) for surface parking lot 2.
e. Section 6 of the Memorandum of Agreement between the City of San Luis
Obispo and Garden Street SLO Partners, L.P. states that the Developer will an
annual rent equal to the annual net revenue from the operation of surface parking
lot 2. The fund review projects this amount at $204,379 however final annual
amount has yet to be determined and it may be more or less depending upon time
of calculation. The annual base rent shall be increased on the first day of every
third fiscal year by the amount of increase in the Consumer Price Index (CPI) for
the period of three (3) years immediately preceding but in no event shall the
increase be less than two percent (2%) nor more than four percent (4%) per year,
for a cumulative total increase of not less than six percent (6%) and not more than
twelve percent (12%) in any three year period.
7. Parking In-Lieu
a. Under City ordinance the developer for Garden Street Terraces Project is
responsible for payment of parking in-lieu fees for the unmet parking demand for
the Garden Street Terraces project. Staff estimates that number at 13 spaces (13 x
$18,920 = 245,960) with payment estimated to occur in 2015-16. PH1A - 16
Attachment 1 – 2015 Parking Fund Analysis
Page 9
b. Under City ordinance the developer for Under City ordinance the developer for
the Chinatown Project is responsible for payment of in-lieu fees for the unmet
parking demand of the project. Staff estimates that number at 51 spaces (51 x
$19,070 = $972,570) with payment estimated to occur in 2015-16.
c. According to the agreement for the Chinatown and the EIR mitigation measure
San Luis Obispo Resolution No. 9960, the Chinatown Project is responsible for
payment of mitigation fees for the displaced public parking spaces that occur
upon development. Section 4 states that the parking in-lieu fee will be adjusted
on July 1 of each year by the annual percentage change in the U.S. Bureau of
Labor Statistics consumer price index for all urban consumers for the prior
calendar year. This is estimated at 2.8% for the five (5) years within this report.
d. As part of the first phase of the project (Monterey Street development) staff
determined that 45 spaces were displaced. (45 x $18,641 = $838,900). The
payment occurred in 2014-15.
e. Staff estimates Phase II construction will displace the final 110 spaces in FY
2015-16. And that cost will be $2,097,700 for the permanent loss of public
parking with the payment estimated to occur in 2015-16.
f. Under City ordinance the developer for the Granada Hotel Expansion Project is
responsible for payment of in-lieu fees for the unmet parking demand of the
development. Staff estimates that number at 22 spaces (22 x $19,070 = $419,540)
with payment estimated to occur in 2015-16.
g. Phase II construction of Chinatown will remove the 8 Parking fund spaces located
on the 955 Morro property. The General Fund is responsible for reimbursement to
the Parking Fund for these lost parking spaces because they were used to buy
down the cost of parking spaces in the 919 Palm Street office building. Final
payback timing and amounts will be calculated as Chinatown Phase II is
completed.
8. Investment Earnings
a. Assumes projected interest earnings of 0.5% annually.
9. Parking Fines
a. Assumes a conservative 1% growth in parking demand.
b. Consistent with previously adopted policies, 10% rate increases are assumed for
2015-16 and every 3 years thereafter for periodic rate adjustments.
c. Transfer of parking fines to the Police Department is approximately $104,400
annually.
d. State and County surcharges of $13 per paid parking citation is added then
deducted from fine revenues.
e. It is very difficult to estimate the effect on fines for of the loss of the parking lots
scheduled for FY 15-16. A total 9% decrease in fine revenues is assumed due to
the loss of surface parking lots 2, 3, and 11 resulting from the construction of the
Garden Street Terraces Project and the Chinatown Project. The two year period of
the Financial Plan will be volatile because substantial portions of the Downtown
will be under reconstruction and compliance rates could be substantially different
that regular operations. Parking fine revenues were not reduced in 2014-15 for the
PH1A - 17
Attachment 1 – 2015 Parking Fund Analysis
Page 10
first phase of the Chinatown Project (Monterey Street development) but are
assumed fully in 2015-16.
f. A total of 20% decrease in State and County surcharges is assumed due to the loss
of surface parking lots 2, 3, and 11 resulting from the construction of the Garden
Street Terraces Project and the Chinatown Project starting in 2015-16.
g. A total 1% decrease in fine revenues due to the loss of Lot 14 for the construction
of Palm-Nipomo parking structure in 2017-18.
10. Transportation & General Government Expenses
a. Transportation operating expenses were increased by $8,800 in 2015-16 and
$9,000 in 2016-17 in response to the SOPC request for additional state mandated
fire alarm testing and inspection.
b. Transportation operating expenses attributed to Parking Lot 2 will decrease by
$21,400 in 2015-16 and thereafter.
c. Transportation operating expenses attributed to Parking Lot 14 will decrease by
$7,400 in 2017-18 and thereafter.
d. Contract Services cost adjustments reflect projected annual CPI increases of 2.5%
in staffing costs and 2.8% in other operating expenses.
e. General Government expenses were increased to $711,600 in 2015-16 due to
recent changes in the City’s methodology for calculating direct and indirect costs
in the Cost Allocation Plan.
f. General Government cost adjustment assumes a 2.0% annual increase.
g. Non-staffing savings of 2.25% bi-annually are programmed in 2016-17 and 2018-
19 (found in Other Sources – Savings Non-Staffing).
h. Staffing savings of 2.5% are programmed in 2015-16 and annually thereafter
(found in Other Sources – Savings Staffing).
11. Capital Improvement Plan (CIP) Expenses
a. The Palm Nipomo parking structure construction is estimated at $23.6 million in
2017-18. There will be a $6,000,000 contribution from working capital and
$17,600,000 proceeds from debt financing or Bond Issuance. Final amounts will
be determined as the project construction documents move forward in the City
process.
b. Assumes Finance and Information Technology capital projects that have
associated Parking Fund support will occur in the projected years.
c. A vehicle license plate recognition pilot program ($135,000) will occur in FY 15-
16 to determine if the technology can improve operational costs and enhance
enforcement in the Downtown and residential neighborhoods.
12. Debt Service
a. Assumes a 30-year level debt service, net proceeds of $17,600,000 and bond
issuance on July 1, 2018. Interest payment and principal payment is due
beginning in 2017-18, estimated at $1.45 million annually.
PH1A - 18
Attachment 1 – 2015 Parking Fund Analysis
Page 11
IV. EXHIBIT A – 2015-17 Changes in Financial Position
2015-17 PARKING FUND
FINANCIAL SCHEDULES
PH1A - 19
CHANGES IN FINANCIAL POSITION - PARKING FUND BUDGET
2013-142014-152015-162016-172017-182018-192019-20
Actual Year-End
Revised ProjectionProjectionProjectionProjectionProjection
Revenues
Service Charges
Parking Meter Collections
Lots 534,002 530,300 174,200 166,200 155,400 170,900 172,600
Streets 1,381,090 1,325,000 1,523,800 1,606,200 1,622,200 1,784,400 1,802,300
Parking Structure Collections 845,574 863,800 1,044,200 1,183,700 1,201,700 1,476,500 1,647,400
Long-Term Parking Revenues 423,363 391,500 430,600 434,900 439,300 483,200 488,000
Lease Revenues 225,488 218,300 480,500 482,900 485,300 513,900 516,600
Parking In-Lieu Fees 857,100 3,760,100 20,200 20,400 22,400 22,600
Other Service Charges (7,033) 100 100 100 100 100 100
Total Service Charges 3,402,484 4,186,100 7,413,500 3,894,200 3,924,400 4,451,400 4,649,600
Investment and Property Revenues 124,130 35,000 28,300 45,500 52,700 21,000 19,000
Fines and Forfeitures 585,783 708,300 663,200 673,000 672,900 771,200 782,000
Other Revenues 10,464
Total Revenues 4,122,861 4,929,400 8,105,000 4,612,700 4,650,000 5,243,600 5,450,600
Expenditures
Operating Programs
Transportation 1,869,872 2,211,639 2,133,695 2,112,199 2,153,475 2,400,714 2,456,711
Proposed SOPC (Asst. Parking Manager)53,000 58,400 64,300 70,495 77,000
Proposed SOPC (BTP)16,500 17,500 18,375 19,294 20,258
General Government 609,320 604,225 711,587 711,587 711,587 711,587 711,587
Total Operating Programs 2,479,192 2,815,864 2,914,782 2,899,686 2,947,737 3,202,090 3,265,556
Capital Improvement Plan Projects 347,510 1,812,636 280,313 50,798 23,625,572 83,485 120,998
Debt Service 1,474,619 969,100 970,817 969,389 2,053,434 2,419,570 2,412,187
Total Expenditures 4,301,321 5,597,600 4,165,912 3,919,873 28,626,743 5,705,145 5,798,741
Other Sources (Uses)
Cashflow adjustment for working capital
Savings Non-Staffing 19,447 20,885 21,978
Savings Staffing 23,328 38,071 37,205 38,171 39,166 40,189
Operating Transfers In 69,738
Operating Transfers Out (5,400)
Proceeds from Debt Financing 17,600,000
Other (35,028)(500,000)
Potential MOA Adjustments
Total Other Sources (Uses)- 72,085 (461,929) 58,089 17,638,171 61,144 40,189
Revenues and Other Sources; Over (Under)
Expenditures and Other Uses (178,460) (596,115) 3,477,158 750,916 (6,338,572) (400,401) (307,952)
Working Capital, Beginning of Year 7,076,753 6,898,293 6,302,178 9,779,336 10,530,253 4,191,681 3,791,279
Working Capital, End of Year 6,898,293 6,302,178 9,779,336 10,530,253 4,191,681 3,791,279 3,483,328
Reserve 563,173 582,956 579,937 589,547 640,418 653,111
Unreserved Working Capital 9,196,380 9,950,315 3,602,133 3,150,861 2,830,217
PH1A - 20
Attachment 2
ORDINANCE NO. ____ (2015 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING EXHIBIT “A” IN SECTION 10.52.010 (PARKING METER ZONE-RATES)
OF
THE SAN LUIS OBISPO MUNICIPAL CODE
WHEREAS, California Vehicle Code section 22508 prohibits a local authority from establishing
parking meter zones or rates except by ordinance; and
WHEREAS, pursuant to Vehicle Code section 22508, the City of San Luis Obispo (“City”) has
established parking meter zones and rates as set forth in Chapter 10.52 of the City’s Municipal
Code; and
WHEREAS, the City parking program needs to continue to be self-sufficient for its financial
commitments; and
WHEREAS, the City needs to financially support the operation and debt service of the next City
parking structure; and
WHEREAS, the Council has considered the staff report and considered the proposed changes to
the parking meter rates at a public meeting on June 16, 2015.
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Section 10.52.010 of Chapter 10.52 of the San Luis Obispo Municipal
Code is hereby amended to expand the $1.50/hour parking meter zone as shown in Exhibit A.
SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this ordinance, or any other provisions of the City’s rules and regulations.
It is the City’s express intent that each remaining portion would have been adopted irrespective
of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be
declared invalid or unenforceable.
SECTION 4. A summary of this ordinance, together with the names of the Council members
voting for and against it, shall be published at least five (5) days prior to its final passage, in the
Telegram-Tribune, a newspaper published and circulated in this City. This ordinance will go
into effect at the expiration of thirty (30) days after its final passage.
PH1A - 21
Ordinance No. ____ (2015 Series) Attachment 2
Page 2
INTRODUCED on the 16th day of June 2015, AND FINALLY ADOPTED by the Council of
the City of San Luis Obispo on the __ day of ____ 2015, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
____________________________________
J. Christine Dietrick
City Attorney
PH1A - 22
Attachment 2
Exhibit A
PH1A - 23
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PH1A - 24
Lot14 Lot 9
Lot15Lot 10
Lot 2
Lot 4
Lot 11
Lot 3
MarshParkingStructure
Lot 13
Palm ParkingStructure
919Palm
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M O N T E R E Y
W A L N U T
P A C I F I C
M O N T E R E Y
P A L M
P E A C H
M A R S H
P A C I F I C
H I G U E R A
M A R S H
P I S M O
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H I G U E R A
D A N A
Parking Rate Zones
Z
0 200 400 600 800 1,000Feet 20150506
Proposed rate enhancement from$1.25/hr to $1.50/hr
$1.50/hr Zone
$1.25/hr Zone
$0.75/hr Zone
$1.00/hr Structure
Attachment 3
PH1A - 25
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PH1A - 26
ATTACHMENT 4
RESOLUTION NO. _____ (2015 SERIES)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO
APPROVING AN INCREASE TO THE PARKING STRUCTURE RATES AND
REPEALING PRIOR RESOLUTIONS.
WHEREAS, the City parking program needs to continue to be self-sufficient for its
financial commitments; and
WHEREAS, the City wishes to provide secure and user friendly parking for all users of
the parking structures; and
WHEREAS, the City needs to financially support the operation and debt service of the
next City parking structure; and
WHEREAS, the Council has considered the staff report and held a public hearing on the
proposed changes to the parking structure hourly, daily, and quarterly fees and parking validation
program.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. All parking structure rates will be increased effective August 1, 2015.
SECTION 2. The hourly parking structure rate will be increased to $1.00 per hour with
the first sixty (60) minutes free.
SECTION 3. The maximum daily parking structure rate will be increased to $10.00 per
day.
SECTION 4. The 842 Palm parking structure access cards will be increased to $225 per
quarter.
SECTION 5. The Parking Validation Program for downtown merchants will be
increased to $60 for 100 tokens or stickers.
SECTION 6. Resolution Number 10273 (2011 Series) is hereby repealed and
superseded to the extent inconsistent herewith.
PH1A - 27
Resolution No. ___ (2015 Series) Attachment 4
Page 2
Upon motion of ______________________, seconded by ____________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this ___ day of _______, 2015.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
____________________________________
J. Christine Dietrick
City Attorney
PH1A - 28
Preliminary Budget Review
City Council Workshop #3
2015-17 Financial Plan
June 16, 2015
Presented By: Alex Fuchs, Assistant to Parking Manager
Ryan Betz, Administrative Analyst
Parking Fund Review
Budget Workshop Series
2015-17 Preliminary Budget Review
June 9
1.Key Budget Issues
2.Major City Goal Work Programs
3.General Fund Operating Programs
June 11
1.Capital Improvement Plan
June 16
1.Enterprise Fund Reviews
2.Water/Sewer Rate Reviews
June 23
1.Budget Adoption
2
Tonight’s Presentation Overview
1.2014-15 Accomplishments
2.Major Assumption Changes
3.Expenditure & Revenue Projections
4.Proposed SOPCs & CIPs
5.Proposed Revenue Enhancements
6.Tentative timeline of the Palm/Nipomo
Parking Structure
7.Review Recommendations
3 2015-17 Preliminary Budget Review
Tiles Replacement at 919 Palm
Establishment of Mission Orchard
Parking District
Final Payment Towards Artifacts Study
Major 14-15 Accomplishments
4 2015-17 Preliminary Budget Review
2-Hour Zone Along Slack St.
2013-14 Annual Report
Organizational Assessment
Major Assumptions for 2015-17
5 2015-17 Preliminary Budget Review
1.Chinatown Project Phase 2
a.Start date September, 2015
b.Lost parking Mitigation:
$2.1M in 2015-16
c.In-Lieu fees for unmet parking demand
$973k in 2015-16
d.Loss of surface parking lots 3 & 11
(145 spaces)
Chinatown Project
Garden Street Terraces
2.Garden Street Terrace (GST)
a.Anticipated start date, July 2015
b.Loss of surface parking lot 2
(59 spaces)
Major Assumptions for 2015-17
6
4.Other
a.General Government increased from $604k to
$711 k
b.Relocation of credit card meters to Lot 10 and
on-street locations
c.Decrease in Fines & Forfeitures of 9% due to
loss of surface parking lots
3.Granada Hotel
a.In-Lieu fees for unmet parking demand: $422k in
2015-16
Granada Hotel Expansion
2015-16 Revenue Projections - $8.1M
7 2015-17 Preliminary Budget Review
Meters-
Lots
2%
Meters-
Streets
19%
Structures
13%
Long-
Term
5%
Fines
8%
Parking
In-Lieu
47%
Lease
6%
2015-16 Expenditure Projections $4.2M
8 2015-17 Preliminary Budget Review
Debt.
Service
23%
Staffing
32%
Contract
Services
16%
Operating
5%
General
Govt.
17%
CIPs
7%
Proposed Significant Operation Program Changes
(SOPCs) & Capital Improvement Projects (CIPs)
9
SOPCs
1.Assistant Parking Manager position –$53k (net)
2.Admin. Hearing Officer - cost neutral
CIPs
1.Parking Structure Facility Assessment and
Rehabilitation Study - $75k in 2015-16, $10k in
2016-17
2015-17 Preliminary Budget Review
Maintenance on 842 Palm
Structure Marsh Street Parking Structure
Circulation Improvements
2.Marsh Street Parking Garage Circulation
Improvements - $78k in 2015-16
3.Vehicle License Plate Recognition System -
$135k in 2015-16, $10k annually
2015-17 Parking Fund Summary
10
CHANGES IN FINANCIAL POSITION - PARKING FUND BUDGET
2013-14 2014-15 2015-16 2016-17 2017-18
Actual Year-End
Revised Projection Projection Projection
Total Revenues 4,122,861 4,929,400 8,105,000 4,612,700 4,650,000
Total Operating Programs 2,479,192 2,815,864 2,914,782 2,899,686 2,947,737
Capital Improvement Plan Projects 347,510 1,812,636 280,313 50,798 23,625,572
Debt Service 1,474,619 969,100 970,817 969,389 2,053,434
Total Expenditures 4,301,321 5,597,600 4,165,912 3,919,873 28,626,743
Total Other Sources (Uses)- 72,085 (461,929) 58,089 17,638,171
Revenues and Other Sources; Over (Under)(178,460) (596,115) 3,477,158 750,916 (6,338,572)
Working Capital, Beginning of Year 7,076,753 6,898,293 6,302,178 9,779,336 10,530,253
Working Capital, End of Year 6,898,293 6,302,178 9,779,336 10,530,253 4,191,681
Reserve 563,173 582,956 579,937 589,547
Unreserved Working Capital 9,196,380 9,950,315 3,602,133
Proposed Revenue Enhancements
11
1.Structure Alignment – Mitigates the loss of
revenue from the closure of high revenue locations
(Surface Parking Lots 2, 3 & 11 )
a.Hourly rate: $0.75/hr. to $1.00/hr.
b.Daily maximum rate: $7.50 to $10.00
c.Validation booklets: $45 to $60 for 100 hours
d.Proxcards: $180 quarterly to $225 quarterly
(Old Palm Only)
2015-17 Preliminary Budget Review
2.SuperCore Expansion – Maintains the existing
meter rate while promoting consistency among the
on-street rate zones
a.Relocation of credit card capable meters to Lot
10 and various on-street locations
SuperCore Expansion
12 2015-17 Preliminary Budget Review
Palm/Nipomo Parking Structure
13
Palm/Nipomo Parking Structure
Tentative Schedule
14
July
2015
Council Adopts
2015-17 Budget
Oct.
2015
Council Study
Session on
Palm/Nipomo
Parking Structure
Dec.
2015
Issue RFP(s) for
environmental &
design
Earliest
Construction Can
Begin
July
2017
Recommendations
15
1.Conceptually approve the Parking Enterprise Fund budget of 2015-16;
2.Adopt an ordinance approving an increase in parking meter rates to
$1.50 at all credit card capable meters relocated from surface parking
lots 2, 3, and 11 ; and
3.Adopt a resolution approving modifications to parking rates in the parking
structures effective August 1, 2015.
2015-17 Preliminary Budget Review
Questions
16
10-Hour Meter Permit Sales
17 2015-17 Preliminary Budget Review
18
CHANGES IN FINANCIAL POSITION - PARKING FUND BUDGET
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Actual Year-End
Revised Projection Projection Projection Projection Projection
Revenues
Service Charges
Parking Meter Collections
Lots 534,002 530,300 174,200 166,200 155,400 170,900 172,600
Streets 1,381,090 1,325,000 1,523,800 1,606,200 1,622,200 1,784,400 1,802,300
Parking Structure Collections 845,574 863,800 1,044,200 1,183,700 1,201,700 1,476,500 1,647,400
Long-Term Parking Revenues 423,363 391,500 430,600 434,900 439,300 483,200 488,000
Lease Revenues 225,488 218,300 480,500 482,900 485,300 513,900 516,600
Parking In-Lieu Fees 857,100 3,760,100 20,200 20,400 22,400 22,600
Other Service Charges (7,033) 100 100 100 100 100 100
Total Service Charges 3,402,484 4,186,100 7,413,500 3,894,200 3,924,400 4,451,400 4,649,600
Investment and Property Revenues 124,130 35,000 28,300 45,500 52,700 21,000 19,000
Fines and Forfeitures 585,783 708,300 663,200 673,000 672,900 771,200 782,000
Other Revenues 10,464
Total Revenues 4,122,861 4,929,400 8,105,000 4,612,700 4,650,000 5,243,600 5,450,600
Expenditures
Operating Programs
Transportation 1,869,872 2,211,639 2,133,695 2,112,199 2,153,475 2,400,714 2,456,711
Proposed SOPC (Asst. Parking Manager)53,000 58,400 64,300 70,495 77,000
Proposed SOPC (BTP)16,500 17,500 18,375 19,294 20,258
General Government 609,320 604,225 711,587 711,587 711,587 711,587 711,587
Total Operating Programs 2,479,192 2,815,864 2,914,782 2,899,686 2,947,737 3,202,090 3,265,556
Capital Improvement Plan Projects 347,510 1,812,636 280,313 50,798 23,625,572 83,485 120,998
Debt Service 1,474,619 969,100 970,817 969,389 2,053,434 2,419,570 2,412,187
Total Expenditures 4,301,321 5,597,600 4,165,912 3,919,873 28,626,743 5,705,145 5,798,741
Other Sources (Uses)
Cashflow adjustment for working capital
Savings Non-Staffing 19,447 20,885 21,978
Savings Staffing 23,328 38,071 37,205 38,171 39,166 40,189
Operating Transfers In 69,738
Operating Transfers Out (5,400)
Proceeds from Debt Financing 17,600,000
Other (35,028)(500,000)
Potential MOA Adjustments
Total Other Sources (Uses)- 72,085 (461,929) 58,089 17,638,171 61,144 40,189
Revenues and Other Sources; Over (Under)
Expenditures and Other Uses (178,460) (596,115) 3,477,158 750,916 (6,338,572) (400,401) (307,952)
Working Capital, Beginning of Year 7,076,753 6,898,293 6,302,178 9,779,336 10,530,253 4,191,681 3,791,279
Parking Org Study 2014
19 2015-17 Preliminary Budget Review
Projected
Revenue
from
Structures
2015-16
Projected
Revenue
from Meters
2015-16
Rate
Enhancement
Rate
Enhancement
Near Term:
“ In addition to the parking demand generated by the new development, a significant number of
parking spaces are scheduled to come on line Downtown when the long-planned Palm/Nipomo
Parking Structure is built. The question is whether these spaces, in this location, can or will mitigate
the parking issues created by the new development and what efforts by Parking Services will be
necessary to make the most of Palm/Nipomo.”
Parking Org Study 2014
20 2015-17 Preliminary Budget Review
Projected
Revenue
from
Structures
2015-16
Projected
Revenue
from Meters
2015-16
Rate
Enhancement
Rate
Enhancement
1.However, our analysis also suggests that the number of public spaces necessary to serve the
new development appear to be available in the existing parking structures.
2.Only a fraction of the spaces in the Palm/Nipomo parking structure appear to be necessary at
this time to serve the new development.
3.In the case of the Marsh Street developments it is questionable as to whether walking
distances will discourage the use of that structure.
4.Even if the demand for parking spaces for the new developments is higher than projected, with
the exception of Monterey Place, the use of the Palm/Nipomo parking structure will be
challenging given the location vis-à-vis the new development.
Findings:
Parking Org Study 2014
21 2015-17 Preliminary Budget Review
Projected
Revenue
from
Structures
2015-16
Projected
Revenue
from Meters
2015-16
Rate
Enhancement
Rate
Enhancement
5.At the very least, significant parking management and policy efforts would need to take
place to shift current and future parking into the Palm/Nipomo parking structure from other
locations.
6.While more spaces in the Palm/Nipomo structure may eventually be needed to accommodate
parking to serve development that is unforeseen or not identified in our study, more than half
the spaces planned are not currently needed, now or in the foreseeable future.
7.The significant cost of the structure suggests to us that greater efforts should be made to
manage the existing supply of parking to accommodate the new development rather than
simply adding spaces, especially when those spaces are not convenient to new
development.
8.While a Palm/Nipomo parking structure built with fewer parking spaces than planned would
increase the cost per net new parking space added, a smaller parking structure would be less
expensive to contract than the currently planned parking structure.
Findings:
Parking Org Study 2014
22 2015-17 Preliminary Budget Review
Projected
Revenue
from
Structures
2015-16
Projected
Revenue
from Meters
2015-16
Rate
Enhancement
Rate
Enhancement
Near Term Recommendations:
Projected Revenue from Proposed Rate
Enhancements
23 2015-17 Preliminary Budget Review
0
0.5
1
1.5
2
2.5
Structure Alignment SuperCore Expansion
Mi
l
l
i
o
n
s
Projected
Revenue
from
Structures
2015-16
Projected
Revenue
from Meters
2015-16
Rate
Enhancement
Rate
Enhancement
Current & Proposed Development Near
Palm & Nipomo Parking Structure
24
Monterey
Place
SOHO
Garden Street Terraces
San Luis Square
Parking Meter Historical Rate Enhancements
25
Rate
Enhancement
Associated
with the
Formation of
SuperCore
Not Shown
Parking Structure Historical Rate Enhancements
26
Approved but not implemented