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HomeMy WebLinkAbout06-14-2016 Item 04 2016-17 Parking Enterprise Fund Review Meeting Date: 6/14/2016 FROM: Daryl Grigsby, Director of Public Works Prepared By: Timothy Bochum, Deputy Director of Public Works Alexander Fuchs, Parking Services Supervisor Ryan Betz, Administrative Analyst SUBJECT: FISCAL YEAR 2016-17 PARKING ENTERPRISE FUND REVIEW RECOMMENDATIONS 1. Review and discuss the Fiscal Year (FY) 2016-17 Parking Fund Review (Attachment A); and 2. Conceptually approve the FY 2016-17 Parking Enterprise Fund budget, with final action with the adoption of the FY 2016-17 Financial Plan Supplement; and 3. Adopt a Resolution approving an increase in Fines and Forfeitures for miscellaneous violations. DISCUSSION Background This report presents a review of the annual Parking Enterprise Fund for Fiscal Year (FY) 2015- 16 and a forecast for the FY 2016-2017 Supplemental Financial Budget. This review looks at key issues and trends which could have an impact on the overall health of the fund. In this regard, staff is pleased to report that the Parking Fund is balanced and the revised FY 2016-17 Supplemental Financial Budget is consistent with the operating assumptions adopted in the 2015- 17 Financial Plan with minor adjustments discussed below. Consistent with previously adopted policies, the long-term forecast of the Parking Fund continues to assume a 10% system-wide rate, fines and forfeiture adjustment every three years. The forecast shows these will be necessary in FY 2018-19 and again in FY 2020-21 to fund anticipated expenses, capital projects, and debt service obligations. Minor fine adjustments are recommended in FY 2016-17 to increase fines for the overtime parking violations, no permit in lot violations, 72-hour violations, and nighttime parking of large vehicles violations. The Palm-Nipomo parking structure is programed to begin construction during FY 2017-18. The anticipated costs for the Palm-Nipomo parking structure were developed several years ago, and staff will be working with a consultant to update the cost and project timeline. A parking structure rehabilitation and assessment study, including anticipated costs to replace outdated structure equipment, is anticipated to be completed in FY 2016-17. 4 Packet Pg. 98 This review highlights a healthy fund that is able to support both current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. As outlined in the FY 2016-17 Parking Fund Analysis (Attachment A), which forecasts the financial position of the Parking Fund through FY 2019-20, the City is able to: 1. Provide parking services and access for the Downtown businesses, visitors and patrons; and 2. Provide parking services and enforcement for residential parking permit district; and 3. Fund debt service for the completed parking structures as well as long-term financing obligations for the Palm-Nipomo parking structure; and 4. Meet bond covenants and debt ratios to maintain a strong bond rating; and 5. Meet Enterprise Fund reserves as set by City policy; and 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. Parking Fund Accomplishments in FY 2015-16 Although the Fund Review is focused on financial and budgetary information, it is important to look at the accomplishments that have occurred during this past fiscal year. The following is a list of some of the highlights that Parking Services has accomplished in FY 2015-16. 1. Worked with project applicants, property and business owners and the public to begin construction of the Garden Street Terraces project and Phase II of the Chinatown project. 2. Successfully relocated existing credit card meters from surface parking lots 2, 3, and 11; increased the parking meter rate from $1.25 to $1.50 at these locations; and increased rates in the parking structures hourly rate from $0.75 per hour to $1.00 per hour. 3. Hired a new Parking Services Supervisor as approved in the 2015-17 Financial Plan and recommended in the Parking Organizational Study (2014). 4. Conducted a Palm-Nipomo Parking Structure update for Council in January 2016 and reactivated the project for environmental and design. Summary of Operating Programs There have been minimal revisions to the Parking Fund expenses for FY 2016-17. 1. Consistent with the General Fund assumptions, Parking Staffing, Contract Services, and 4 Packet Pg. 99 Other Operating expenses assume an increase of 3% in 2017-18, 3.25% in 2018-19, and 3.5% in 2019-20 for anticipated changes in Memorandum of Agreement (MOA), Cost of Living Adjustments (COLA), and minimum wage. 2. Operating expenses for Palm-Nipomo are programmed beginning in FY 2018-19 but could be delayed depending upon the start of construction of the structure. 3. The amount budgeted for General Government decreased by $26,984. Table 1: Expenditures Expense Category 2015-16 Budget 2016-17 Budget 2016-17 Revised Variance Operating Programs Transportation 2,328,330$ 2,188,099$ 2,188,099$ 0% General Government 711,587$ 711,587$ 684,603$ -4% Total Operating Programs 3,039,917$ 2,899,686$ 2,872,702$ -1% Capital Improvement Plan Projects 1,952,970$ 50,798$ 50,798$ 0% Debt Service 970,817$ 969,389$ 969,400$ 0% TOTAL EXPENDITURES 5,963,704$ 3,919,873$ 3,892,900$ -1% Capital Improvement Program Below is the summary of the anticipated 2016-17 Financial Plan capital project budget projections for the Parking Services Enterprise Fund. 1. New Parking Structure. To be conservative, the Palm-Nipomo parking structure is projected for July 2017; the earliest date at which construction could begin. Debt financing will be used to fund a significant portion of the project. The current project construction estimate is $23.6 million with $17.45 million in debt financing. 2. Parking Structure Equipment Retrofit. Although not programed into the Fund Analysis (Attachment A), staff anticipates the need for additional funding for replacing outdated parking structure equipment. This project was originally estimated as a retrofit to the existing equipment. Unfortunately, the manufacturer is now out of business and a retrofit is not possible. Instead, a full replacement of the parking structure’s control system is needed. The project is currently funded at $113,000, however a review of the equipment replacement costs is projected to exceed that amount. Though a final amount is not yet known, staff will be combining this assessment of what equipment fits the structures best with the Parking Structure Assessment and Rehabilitation Study project, funded at $135,000. This is anticipated to begin in FY 2016-17. Staff will ask the consultant to recommend equipment retrofits for existing structures as well as equipment for the new Palm-Nipomo parking structure. We anticipate having this product as a first item of work for the consultant and expect to come to Council at the FY 2016-17 Mid- Year with recommendations for any additional funding. 4 Packet Pg. 100 3. New Parking Demand and Supply Model. Staff anticipates a return to Council in FY 2016-17 with a request for use of Parking Fund monies to pursue the development of a Downtown parking demand and supply model. This project is not shown in the Fund Analysis because a total cost for the project is not yet known. This project would result in a tool similar to the City’s traffic model. It would help forecast the parking and access needs for the Downtown area, analyze issues such as extending the Parking In-Lieu fee program east of Santa Rosa Street, assist in developing appropriate pricing strategies for parking, and assess individual development projects for adequacy in parking supply. Development of a portion of this model was anticipated to be completed as part of a joint effort with the project proposal for the old Shell station site. However, that particular project is no longer being pursued by the applicant and the need for better tools to help staff analyze parking scenarios still exists. In addition, it became apparent during the in- depth parking study associated with the Palm/Nipomo Structure that such a tool would save hours of staff time and yield accurate information easily and quickly to help policy makers and the community comprehensively understand Downtown parking dynamics. None of the aforementioned projects are included or assumed in this budget review, they are all subject to future Council review and action that will be requested at a later date. 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. However, the last half of FY 2015-16 has seen the closures of Lots 2, 3 and 11 and significant changes in parking locations habits (and revenue) are expected. Table 2: Revenues Revenue Category 2015-16 Budget 2016-17 Budget 2016-17 Revision Variance Service Charges Parking Meter Collections Lots 174,200 166,200 166,200 Streets 1,523,800 1,606,200 1,539,100 -4% Parking Structure Collections 1,044,200 1,183,700 1,054,700 -11% Long-Term Parking Revenues 430,600 434,900 434,900 Lease Revenues 480,500 482,900 500,500 4% Parking In-Lieu Fees 2,787,530 20,200 20,200 Other Service Charges 100 100 100 Total Service Charges 6,440,930 3,894,200 3,715,700 -5% Investment and Property Revenues 28,300 45,500 48,200 6% Fines and Forfeitures 663,200 673,000 669,900 Other Revenues 0 TOTAL REVENUES 7,132,430 4,612,700 4,433,800 -4% Revenues in the structures as well as on-street meters are anticipated to continue to increase due 4 Packet Pg. 101 to this relocated demand as a result of the lot closures. Table 3 below shows Parking Fund revenue trends with actuals for the previous three years, the budgeted amount for the two financial plan years, and revised amounts for FY 2016-2017. Significant Parking In-Lieu fees were collected in FY 2015-16 due to the construction of Chinatown and the Garden Street Terraces projects. These fees, although shown as revenues, are one -time only and are 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 3: Parking Fund Revenue Trends (1) Loss of Public Parking Lots 2, 3, and 11 to construction projects (2) Garden Street Terraces project loan repayment and rent payment (4) Parking In-Lieu fees for Garden Street Terraces, Granada Hotel & Bistro, and phase 2 of the Chinatown project Fines and Forfeitures are not anticipated to change to significantly over the next fiscal year. There is a recommendation included with this Fund review to increase the fine amounts for the following violations: 1. 72-Hour violation from $23 to $33 2. Nighttime parking of large vehicles (oversized vehicle) violation from $23 to $33 3. Overtime parking violation from $38 to $43 4. No permit in lot violation from $33 to $38 At this time, the fiscal impact for these fine amount changes will be minimal. An analysis of citations from January 2015 to December 2015 shows the increase in fine amounts will generate approximately $6,000 in additional revenue. Table 4 below compares the current parking violation fine amounts with other municipalities in the area. 4 Packet Pg. 102 Table 4: Parking Violation Fine Amount Comparison SLO City SLO City Cuesta Arroyo Paso Current Proposed Cal Poly College Grande Robles 10.36.050 USE OF STREETS FOR STORAGE OF VEHICLES PROHIBITED $23 $33 $58 10.36.150 NIGHTTIME PARKING OF LARGE VEHICLES $23 $33 10.36.235 RESTRICTED PARKING - NO PERMIT LOT $33 $38 $40 $39 10.40.010 OVERTIME PARKING $38 $43 $35 $68 $53 $33 VIOLATIONCODE Overall, it is anticipated that Parking Fund revenues will continue to steadily grow as the economy improves from the recession. Consistent with previous adopted policies, Revenue projections assume a conservative 1% annual growth and a major 10% increase in revenues is assumed in FY 2018-19 and every 3 years thereafter for periodic rate enhancements. FISCAL IMPACT As shown in the Parking Enterprise Fund Financial Analysis (Attachment A), staff is projecting an end of year working capital of $9,643,354 in FY 2015-16 and $9,673,056 in FY 2016-2017. The 2016 Parking Fund Analysis includes the key assumptions used in preparing Fund projections. Consistent with the analysis presented to the Council in this report and in the 2015 - 2017 Financial Plan, there are sufficient funds to support operations, capital projects, and debt service needs of the Parking Fund. Attachments: 4.a a - 2016-17 Supplement Parking Fund Analysis 4.b b - Resolution Approving an Increase in Fine Amounts 4 Packet Pg. 103 Parking Enterprise Fund 2016-17 Financial Plan Supplement Parking Enterprise Fund 2016 Fund Analysis 4.a Packet Pg. 104 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 2 June 14, 2016 TABLE OF CONTENTS I. OVERVIEW ........................................................................................................................... 3 II. 2015-17 FINANCIAL PLAN ................................................................................................. 3 a. Summary of Operating Programs ........................................................................................ 3 b. Capital Improvement Program ............................................................................................. 4 c. Revenues .............................................................................................................................. 5 d. Debt Service ......................................................................................................................... 5 III. ASSUMPTIONS ..................................................................................................................... 6 1. General Assumptions ........................................................................................................... 6 2. Parking Lots ......................................................................................................................... 6 3. Street Parking ....................................................................................................................... 6 4. Parking Structures ................................................................................................................ 6 5. Long Term Parking .............................................................................................................. 6 6. Parking Leases ..................................................................................................................... 7 7. Parking In-Lieu .................................................................................................................... 7 8. Investment Earnings............................................................................................................. 7 9. Parking Fines ....................................................................................................................... 7 10. Transportation & General Government Expenses ........................................................... 7 11. Capital Improvement Plan (CIP) Expenses ...................................................................... 8 12. Debt Service ..................................................................................................................... 8 IV. EXHIBIT A – 2015-17 Changes in Financial Position .......................................................... 9 4.a Packet Pg. 105 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 3 2016 Parking Fund Report I. OVERVIEW This report presents a review of the annual Parking Enterprise Fund for the FY 2015-16 and a forecast for FY 2016-17. This review looks at key issues and trends which could have an impact on the overall health of the fund. To this regard, staff is pleased to report that the Parking Fund is balanced and the revised 2016-17 budget will be consistent with the operating assumptions adopted in the 2015-17 Financial Plan with some minor adjustments. As previously assumed in the long-term forecast of the Parking Fund, system parking rate, fines and forfeiture adjustments will be necessary in FY 2018-19 and again in FY 2020-21 to fund anticipated expenses, capital projects, and debt service obligations. Minor fine adjustments are recommended in the FY 2016-17 primarily to increase fines for the 72-hour violations and overnight large trailer violations. The Palm-Nipomo parking structure is programed to begin construction during the 2017-18 fiscal year to show the future fiscal impacts on the Parking Fund. 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. II. 2015-17 FINANCIAL PLAN 1. Summary of Operating Programs Below is the summary of the revised 2015-17 Financial Plan operating budget projections for the Parking Services Enterprise Fund. Operating expenses for Palm-Nipomo is programed to begin during FY 2018-19 but could be delayed depending upon construction start date or delays during construction. 4.a Packet Pg. 106 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 4 2015-16 2016-17 2016-17 2017-18 2018-19 2019-2020 Budget Budget Revised Projected Projected Projected Staffing 1,309,824$ 1,310,591$ 1,268,891$ 1,349,909$ 1,393,781$ 1,478,627 Contract Services 670,100$ 683,750$ 683,750$ 704,263$ 727,151$ 771,416 Other Operating Expenses 223,271$ 235,458$ 235,458$ 242,522$ 250,404$ 266,425 CalJPIA Retrospective Work Comp CalJPIA Retrospective Alloc. Lib.35,028$ Cost Assumptions for Class/Comp 11,220$ Palm-Nipomo Expenses 197,570$ 202,887$ Total Parking Services 2,203,195 2,229,799 2,188,099 2,296,694 2,371,336 2,516,468 2. Capital Improvement Program Below is the summary of the revised 2015-17 Financial Plan capital project budget projections for the Parking Services Enterprise 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. Parking Capital Program 2015-16 2016-17 2016-17 2017-18 2018-19 2019-20 Budget Budget Revised Projected Projected Projected Fleet Replacement: 2 Go-4s 34,000$ Fleet Replacement: Utility Vehicle 27,100$ 27,100$ Fleet Replacement: Pickup Trucks 29,500$ 31,500$ Palm Nipomo Construction 23,600,000$ Parking Structure Assessment 66,667$ 10,000$ 10,000$ Marsh Street Parking Garage Circ. Improve.78,000$ IT MS Office Replacement 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$ 3,065$ IT Vehicle License Plate Recognition 135,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ IT VoIP 6,233$ 646$ IT Radio Handhleds 9,339$ IT Tait Radio System 633$ 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$ Parking Structure Equipment Upgrades 113,000$ Other Carryover projects 544,980$ Total Parking Capital Program 2,233,283$ 50,798$ 50,798$ 23,641,272$ 83,485$ 120,998$ 4.a Packet Pg. 107 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 5 Although not shown in the table above, staff anticipates the need for additional funding for the upgrade of the parking structure equipment project currently funded at $113,000. A final amount is not yet known. Staff will be combining this with the Parking Garages Assessment and Rehabilitation Study project that will being in FY 2016-17 and will ask the consultant to recommend equipment retrofits for existing structures as well as the new Palm-Nipomo parking structure. 3. Revenues It is anticipated that Parking Fund revenues will continue to steadily grow as the economy improves from the Great Recession. Consistent with previous adopted policies, Revenue projections assume a conservative 1% annual growth and a major 10% increase in revenues is assumed in 2018-19 and every 3 years thereafter for periodic rate enhancements. Anticipating revenue changes for the closures of Lots 2, 3, and 11 have been forecast however, revenue changes due to public redistribution from these closures may be off depending where people choose to park after closures. 2015-16 2016-17 2016-17 2017-18 2018-19 2019-2020 Revised Budget Revised Projection Projection Projection Revenues Service Charges Parking Meter Collections Lots 174,200 166,200 166,200 155,400 170,900 172,600 Streets 1,523,800 1,606,200 1,539,100 1,554,500 1,709,900 1,727,000 Parking Structure Collections 1,044,200 1,183,700 1,054,700 1,065,200 1,171,700 1,276,000 Long-Term Parking Revenues 430,600 434,900 434,900 439,300 483,200 488,000 Lease Revenues 480,500 482,900 500,500 502,900 531,800 534,500 Parking In-Lieu Fees 2,787,530 20,200 20,200 20,400 22,400 22,600 Other Service Charges 100 100 100 100 100 100 Total Service Charges 6,440,930 3,894,200 3,715,700 3,737,800 4,090,000 4,220,800 Investment and Property Revenues 28,300 45,500 48,200 54,900 21,000 15,800 Fines and Forfeitures 663,200 673,000 669,900 666,600 733,300 740,600 Other Revenues Total Revenues 7,132,430 4,612,700 4,433,800 4,459,300 4,844,300 4,977,200 4. Debt Service Debt Service for the Palm-Nipomo Parking Structure is scheduled to begin in FY 2017- 18. Annual payments for Palm-Nipomo are estimated to average $1.4 million depending upon final debt financing terms. The next debt service to be retired is for the Marsh Street Parking Structure expansion, which will occur in August 2031. 4.a Packet Pg. 108 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 6 Parking Debt Service 2015-16 2016-17 2016-17 2017-18 2018-19 2019-20 Revised Budget Revised Projected Projected Projected Marsh Expansion until Aug 2031 420,578$ 419,729$ 419,729$ 418,856$ 417,955$ 417,027$ 919 Palm until Jun 2036 540,439$ 539,899$ 539,899$ 538,755$ 539,803$ 540,275$ Palm-Nipomo until Jun 2047 1,086,023$ 1,452,112$ 1,450,684$ Dispatch Ctr Upgrade until Jun 2039 9,800$ 9,800$ 9,800$ 9,800$ 9,700$ 4,200$ 970,817$ 969,428$ 969,428$ 2,053,434$ 2,419,570$ 2,412,187$ III. ASSUMPTIONS The following assumptions have been programed into the long-term forecast of the Parking Fund. 1. General Assumptions a. 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 $575,000. The year-end working capital greatly exceeds the minimum reserve policy levels. b. Consistent with previously adopted policies, Parking Fund Revenue sources assume a conservative 1% annual growth and a 10% increase every three years for periodic rate adjustments. 2. Parking Lots a. Parking revenues and expenses from Lot 14 will cease due to the construction of the Palm-Nipomo parking structure in FY 2017-18. 3. Street Parking a. No major changes in Street Parking assumptions have been programed. 4. Parking Structures a. It is anticipated that some of the drivers that would have parked in Lot 14 will instead park in garages due to the loss of lot parking spaces. Due to the first hour free in garages, it is anticipated that only 50% of the revenues formerly tied to Lot 14 will be retained through garage parking fees. b. A study will be conducted in FY 2016-17 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. There was an increase in 10-Hour Parking Meter Permit sales in FY 2015-16 due to the establishment of a Residential Parking Permit District near the downtown 4.a Packet Pg. 109 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 7 area and the recent closure of three public parking lots downtown. Future increases in 10-Hour Parking Meter Permit sales are limited by the total number of permits available throughout a given fiscal year. 6. Parking Leases a. 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 2016-17. 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. b. 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. No Parking In-Lieu fee assumptions have been programed. 8. Investment Earnings a. Assumes projected interest earnings of 0.5% annually. 9. Parking Fines a. Transfer of parking fines to the Police Department is approximately $105,400 for FY 2016-17. b. State and County surcharges of $13 per paid parking citation is added then deducted from fine revenues. c. A total 1% decrease in fine revenues due to the loss of Lot 14 for the construction of Palm-Nipomo parking structure in FY 2017-18. 10. Transportation & General Government Expenses a. Transportation operating expenses attributed to Parking Lot 14 will decrease by $7,400 in FY 2017-18 and thereafter. b. Parking Staff, Contract Services, and Other Operating expenses assume an increase of 3% in FY 2017-18, 3.25% in 2018-19, and 3.5% in 2019-20 for 4.a Packet Pg. 110 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 8 anticipated changes in Memorandum of Agreement (MOA), Cost of Living Adjustments (COLA), and minimum wage. c. General Government expenses decreased by $26,984 in FY 2016-17 due to the results of the FY 2014-15 Cost Allocation Plan. d. General Government assumes no annual increase. 11. Capital Improvement Plan (CIP) Expenses a. The Palm Nipomo parking structure construction is estimated at $23.6 million in FY 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 as a carryover project in FY 2016-17 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 FY 2017-18, estimated at $1.4 million annually. 4.a Packet Pg. 111 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) 2016 Parking Fund Analysis Page 9 IV. EXHIBIT A – 2015-17 Changes in Financial Position 2015-17 PARKING FUND FINANCIAL SCHEDULES CHANGES IN FINANCIAL POSITION - PARKING FUND BUDGET Mid-Year Adopted Revised Projected Projected Projected 2015-16 2016-17 2016-17 2017-18 2018-19 2019-20 Revenues Service Charges Parking Meter Collections Lots 174,200 166,200 166,200 155,400 170,900 172,600 Streets 1,523,800 1,606,200 1,539,100 1,554,500 1,709,900 1,727,000 Parking Structure Collections 1,044,200 1,183,700 1,054,700 1,065,200 1,171,700 1,276,000 Long-Term Parking Revenues 430,600 434,900 434,900 439,300 483,200 488,000 Lease Revenues 480,500 482,900 500,500 502,900 531,800 534,500 Parking In-Lieu Fees 2,787,530 20,200 20,200 20,400 22,400 22,600 Other Service Charges 100 100 100 100 100 100 Total Service Charges 6,440,930 3,894,200 3,715,700 3,737,800 4,090,000 4,220,800 Investment and Property Revenues 28,300 45,500 48,200 54,900 21,000 15,500 Fines and Forfeitures 663,200 673,000 669,900 666,600 733,300 740,600 Other Revenues Total Revenues 7,132,430 4,612,700 4,433,800 4,459,300 4,844,300 4,976,900 Expenditures Operating Programs Transportation 2,328,330 2,188,099 2,188,099 2,296,693 2,574,833 2,663,305 General Government 711,587 711,587 684,603 684,603 684,603 684,603 Total Operating Programs 3,039,917 2,899,686 2,872,702 2,981,296 3,259,436 3,347,908 Capital Improvement Plan Projects 1,952,970 50,798 50,798 23,641,272 83,485 120,998 Debt Service 970,817 969,389 969,400 2,053,434 2,419,570 2,412,187 Total Expenditures 5,963,704 3,919,873 3,892,900 28,676,002 5,762,491 5,881,093 Other Sources (Uses) Cashflow adjustment for working capital Operating Transfers In Operating Transfers Out (151,011)(186,930)(43,100) Proceeds from Debt Financing 17,600,000 Other 38,071 GST Loan per Council Approval (500,000) (11,198) Total Other Sources (Uses)38,071 - (511,198) 17,448,989 (186,930)(43,100) Revenues and Other Sources; Over (Under) Expenditures and Other Uses 1,206,797 692,827 29,702 (6,767,713) (1,105,121) (947,293) Working Capital, Beginning of Year 8,436,557 10,279,336 9,643,354 10,972,163 4,204,450 3,099,329 Working Capital, End of Year 9,643,354 10,972,163 9,673,056 4,204,450 3,099,329 2,152,036 4.a Packet Pg. 112 At t a c h m e n t 4 . a : a - 2 0 1 6 - 1 7 S u p p l e m e n t P a r k i n g F u n d A n a l y s i s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN INCREASE IN PARKING CITATION FINES WHEREAS, State law provides, in Vehicle Code Section 40203.5, that cities establish the amount of parking penalties, fees, and surcharges; and WHEREAS, State law authorizes the City to recover administrative fees, parking penalties, fees and collection costs related to civil debt collection, late payment penalties, and other related charges; and WHEREAS, the City wishes to provide secure and user friendly parking for all users of the parking structures; and WHEREAS, the parking program needs to continue to be self-sufficient for its financial commitments; and WHEREAS, the Council considered the staff report and held a public meeting on the proposed changes to the parking citation fine amounts. NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Effective July 1, 2016, the City of San Luis Obispo Penalty Schedule is hereby amended as set forth in Exhibit "A" attached hereto and incorporated herein by this reference. Upon motion of ___________________, seconded by_____________________ and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this ____ day of ___________, 2016. _______________________ Mayor Jan Marx ATTEST: _____________________________ Lee Price, MMC Interim City Clerk 4.b Packet Pg. 113 At t a c h m e n t 4 . b : b - R e s o l u t i o n A p p r o v i n g a n I n c r e a s e i n F i n e A m o u n t s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) Resolution No. _____ (2016 Series) Page 2 R ______ APPROVED AS TO FORM: _____________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Lee Price, MMC Interim City Clerk 4.b Packet Pg. 114 At t a c h m e n t 4 . b : b - R e s o l u t i o n A p p r o v i n g a n I n c r e a s e i n F i n e A m o u n t s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) Resolution No. _____ (2016 Series) Page 3 R ______ EXHIBIT A CITY OF SAN LUIS OBISPO PENALTY SCHEDULE EFFECTIVE DATE: 7/1/2016 CODE & SECTION DESCRIPTION PENALTY SLMC 10.12.050 INTERFERENCE WITH POLICE/AUTHORIZED OFFICER 93 SLMC 10.14.030 OBEDIENCE TO TRAFFIC CONTROL DEVICES 58 SLMC 10.14.090 UNAUTHORIZED PAINTING ON CURBS 58 SLMC 10.34.020 OVERNIGHT CAMPING (10pm - 6 am) 100 SLMC 10.36.020 STOPPING OR STANDING IN PARKWAYS PROHIBITED 33 SLMC 10.36.030 STOP/STAND/PARK IN VIOLATION OF CHAPTER 33 SLMC 10.36.040 NO PARKING ZONE - PROHIBITED PARKING - Also Taxi Zone (d) 53 SLMC 10.36.050 USE OF STREETS FOR STORAGE OF VEHICLES PROHIBITED 33 SLMC 10.36.070 REPAIRING OR GREASING VEHICLE ON PUBLIC STREET 23 SLMC 10.36.080 WASHING OR POLISHING VEHICLES 23 SLMC 10.36.090 PARKING ADJACENT TO SCHOOLS 23 SLMC 10.36.100 PARKING PROHIBITED ON NARROW STREETS 23 SLMC 10.36.110 PARKING ON GRADES 23 SLMC 10.36.120 UNLAWFUL PARKING - PEDDLERS, VENDORS 23 SLMC 10.36.130 EMERGENCY PARKING SIGNS 23 SLMC 10.36.140 LARGE/COMMERCIAL VEHICLE PARKING NEAR INTERSECTION 23 SLMC 10.36.150 NIGHTTIME PARKING OF LARGE VEHICLES 33 SLMC 10.36.160 NIGHTTIME PARKING OF VEH W/OPERATING AIR/REFRIGERATION 23 SLMC 10.36.200 PARKING IN A RESIDENTIAL PERMIT PARKING AREA 38 SLMC 10.36.230 PERMITS - DISPLAY OF PERMITS 28 SLMC 10.36.235 NO PERMIT LOT 38 SLMC 10.40.010 TIMED PARKING 10 MINUTES TO 10 HOURS (Overtime Parking) 43 SLMC 10.40.020 BACKING INTO PARKING SPACE PROHIBITED 28 SLMC 10.40.040 PARKING PARALLEL ON ONE-WAY STREETS 21 SLMC 10.40.050 DIAGONAL PARKING 21 SLMC 10.40.060 PARKING SPACE MARKINGS 33 SLMC 10.40.070 NO STOPPING ZONE 21 SLMC 10.40.080 ALL NIGHT PARKING PROHIBITED (3-5am) 38 SLMC 10.44.020 CURB MARKING TO INDICATE NO STOPPING/PARKING REGS. 23 SLMC 10.44.030 EFFECT OF PERMISSION TO LOAD/UNLOAD IN YELLOW ZONE 53 SLMC 10.44.040 EFFECT OF PERMISSION TO LOAD/UNLOAD IN WHITE ZONE 33 SLMC 10.44.050 STANDING IN ANY ALLEY 33 SLMC 10.44.070 DISABLED PARKING 338 SLMC 10.48.010 CERTAIN VEHICLES PROHIBITED IN CENTRAL DISTRICT 58 SLMC 10.48.020 ADVERTISING VEHICLES 33 SLMC 10.48.030 ANIMAL DRAWN VEHICLES 33 SLMC 10.48.040 TRUCK ROUTES 88 SLMC 10.48.050 COMM. VEHICLES PROHIBITED FROM USING CERTAIN STREETS 88 4.b Packet Pg. 115 At t a c h m e n t 4 . b : b - R e s o l u t i o n A p p r o v i n g a n I n c r e a s e i n F i n e A m o u n t s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) Resolution No. _____ (2016 Series) Page 4 R ______ SLMC 10.48.060 MAX. GROSS WT. LIMITS OF VEHICLES ON CERTAIN STREETS 88 SLMC 10.52.040 PARKING METERS - OPERATIONAL PROCEDURES 23 SLMC 10.52.050 UNLAWFUL TO PARK AFTER METER TIME HAS EXPIRED 33 SLMC 10.52.060 UNLAWFUL TO EXTEND TIME BEYOND LIMIT 15 SLMC 10.52.070 IMPROPER USE OF METER 15 SLMC 10.52.080 PARKING METERS/STANDARDS - PROPER USE 15 SLMC 10.52.110 MOTORCYCLE SPACES 15 CVC 5204(a)* CURRENT TAB IMPROPERLY ATTACHED *25 CVC 21113(a) VEHICLE OR ANIMAL ON PUBLIC GROUNDS-MOVING 116 CVC 21113(b) VEHICLE OR ANIMAL ON PUBLIC GROUNDS-PARKING 33 CVC 21113 (c) DRIVEWAYS, PATHS, PARKING FACILITIES ON GROUNDS 33 CVC 22500.1 STOPPING/STANDING/PARKING: FIRE LANE 116 CVC 22500(a) STOPPING/STANDING/PARKING: WITHIN INTERSECTION 33 CVC 22500(b) STOPPING/STANDING/PARKING: ON A CROSSWALK 33 CVC 22500(c) STOPPING/STANDING/PARKING: BETWEEN SAFETY ZONE 33 CVC 22500(d) STOPPING/STANDING/PARKING: W/IN 15' FIREHOUSE ENTRANCE 33 CVC 22500(e) STOPPING/STANDING/PARKING: PUBLIC/PRIVATE DRIVEWAY 33 CVC 22500(f) STOPPING/STANDING/PARKING: ON SIDEWALK 33 CVC 22500(g) STOPPING/STANDING/PARKING: ALONG/OPPOSITE OBSTRUCT 33 CVC 22500(h) STOPPING/STANDING/PARKING: ON ROADWAY SIDE OF VEHICLE 33 CVC 22500(i) IMPROPER PARKING IN BUS ZONE 263 CVC 22500(j) STOPPING/STANDING/PARKING: IN TUBE OR TUNNEL 33 CVC 22500(k) STOPPING/STANDING/PARKING: UPON BRIDGE EXCEPT AUTH 33 CVC 22500(l) IMPROPER PARKING IN WHEELCHAIR ACCESS 263 CVC 22502(a) CURB PARKING 33 CVC 22502(b) PARKING OPPOSITE DIRECTION OF TRAFFIC 33 CVC 22502(c) CURB PARKING - WHEELS MORE THAN 18 INCHES FROM CURB 33 CVC 22504(a) UNINCORPORATED AREA PARKING 33 4.b Packet Pg. 116 At t a c h m e n t 4 . b : b - R e s o l u t i o n A p p r o v i n g a n I n c r e a s e i n F i n e A m o u n t s ( 1 3 6 7 : 2 0 1 6 - 1 7 P a r k i n g E n t e r p r i s e F u n d R e v i e w ) Page intentionally left blank. FY 2016-17: Supplemental Budget Review June 14, 2016 Presented By: Alexander Fuchs, Parking Services Supervisor Ryan Betz, Administrative Analyst Parking Fund Review Key Points 1.Staff Recommendations 2.2015-16 Accomplishments 3.Major Assumption Changes 4.Revenue & Expenditure Projections 5.Proposed Increases in Parking Violation Fine Amounts 2 PARKING FUND: 2016-17 Supplemental Budget Review Staff Recommendations 3 1.Review and discuss the FY 2016-17 Parking Enterprise Fund Review 2.Conceptually approve the FY 2016-17 Parking Enterprise Fund budget, with final adoption of the FY 2016-17 Financial Plan Supplement 3.Adopt a Resolution approving an increase in Fines and Forfeitures for miscellaneous violations PARKING FUND: 2016-17 Supplemental Budget Review Major 2015-16 Accomplishments 4 1.Worked with stakeholders to begin construction of the Garden Street Terraces project and Phase II of the Chinatown project PARKING FUND: 2016-17 Supplemental Budget Review 2.Successfully relocated existing credit card meters from surface parking lots 2, 3, and 11; maintained hourly rate for parking meters relocated to on-street locations; and increased the parking structure hourly rate from $0.75/hr. to $1.00/hr. 3.Conducted a Palm-Nipomo Parking Structure update for Council in January 2016 and reactivated the project for environmental and design work 4.Hired two key leadership positions: Parking Services Manager and Parking Services Supervisor. Major Assumption Changes 5 1.General Government expenses decreased by $27,000 2.Parking Lot 2 closed later than anticipated, while Lot 3 & 11 closed sooner than anticipated 3.Aligned Parking Fund expenditure assumptions with General Fund assumptions 4.Modified forecast from the FY 15 -16 Mid-Year Adjustments PARKING FUND: 2016-17 Supplemental Budget Review Revenue Projections 6 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 Adopted FY 16-17 ($4.6M) Revised FY 16-17 ($4.4M) PARKING FUND: 2016-17 Supplemental Budget Review Expenditure Projections 7 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Staffing Contract Operating General Government CIP Debt Service Adopted 16-17 ($3.9M) Revised FY 16-17 ($3.9M) PARKING FUND: 2016-17 Supplemental Budget Review Parking Fund 5-Year Forecast 8 PARKING FUND: 2016-17 Supplemental Budget Review CHANGES IN FINANCIAL POSITION - PARKING FUND BUDGET Mid-Year Adopted Revised Projected Projected Projected 2015-16 2016-17 2016-17 2017-18 2018-19 2019-20 Total Service Charges 6,440,930 3,894,200 3,715,700 3,737,800 4,090,000 4,220,800 Investment and Property Revenues 28,300 45,500 48,200 54,900 14,500 9,000 Fines and Forfeitures 663,200 673,000 669,900 666,600 733,300 740,600 Other Revenues Total Revenues 7,132,430 4,612,700 4,433,800 4,459,300 4,837,800 4,970,400 Total Operating Programs 3,039,917 2,899,686 2,872,702 2,981,296 3,259,436 3,347,908 Capital Improvement Plan Projects 1,952,970 50,798 50,798 23,641,272 83,485 120,998 Debt Service 970,817 969,389 969,400 2,053,434 2,419,570 2,412,187 Total Expenditures 5,963,704 3,919,873 3,892,900 28,676,002 5,762,491 5,881,093 Total Other Sources (Uses)38,071 - (511,198) 17,448,989 (186,930)(43,100) Revenues and Other Sources; Over (Under) Expenditures and Other Uses 1,206,797 692,827 29,702 (6,767,713) (1,111,621) (953,793) Working Capital, Beginning of Year 8,436,557 10,279,336 9,643,354 9,673,056 2,905,343 1,793,722 Working Capital, End of Year 9,643,354 10,972,163 9,673,056 2,905,343 1,793,722 839,929 Proposed Fine Amount Increases 9 Code Section Description of Violation Current Amount Proposed Amount 10.36.050 72-Hour (Storage of Vehicles Prohibited) $23 $33 10.36.150 Nighttime Parking of Large Vehicles Prohibited $23 $33 10.40.010 Overtime Parking $38 $43 10.36.235 No Permit in Lot $33 $38 PARKING FUND: 2016-17 Supplemental Budget Review Palm/Nipomo Update 10 Items being worked on: 1.Reactivated Consultant Team to prepare revised Scope of work (In Progress) for design & EIR 2.Combined Palm/Nipomo and Mission Plaza Extension projects into one Traffic Impact Study 3.Revised project description for EIR RFP underway PARKING FUND: 2016-17 Supplemental Budget Review Staff Recommendations 11 1.Review and discuss the FY 2016-17 Parking Enterprise Fund Review 2.Conceptually approve the FY 2016-17 Parking Enterprise Fund budget, with final adoption of the FY 2016-17 Financial Plan Supplement 3.Adopt a Resolution approving an increase in Fines and Forfeitures for miscellaneous violations PARKING FUND: 2016-17 Supplemental Budget Review Questions 12 PARKING FUND: 2016-17 Supplemental Budget Review 13 Parking Structure Occupancy 14 - 20,000 40,000 60,000 80,000 100,000 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Number of Vehicles Parked in All Parking Structures Lot 2 Closed Upper Portion of Lot 3 & 11 Closed PARKING FUND: 2016-17 Supplemental Budget Review 10-Hour Meter Permit Sales 15 0 500 1,000 1,500 2,000 2,500 2012-13 2013-14 2014-15 2015-16 (Projected Thru End of Year) Quarterly Permits Monthly Permits PARKING FUND: 2016-17 Supplemental Budget Review CHANGES IN FINANCIAL POSITION - PARKING FUND BUDGET Mid-Year Adopted Revised Projected Projected Projected 2015-16 2016-17 2016-17 2017-18 2018-19 2019-20 Revenues Service Charges Parking Meter Collections Lots 174,200 166,200 166,200 155,400 170,900 172,600 Streets 1,523,800 1,606,200 1,539,100 1,554,500 1,709,900 1,727,000 Parking Structure Collections 1,044,200 1,183,700 1,054,700 1,065,200 1,171,700 1,276,000 Long-Term Parking Revenues 430,600 434,900 434,900 439,300 483,200 488,000 Lease Revenues 480,500 482,900 500,500 502,900 531,800 534,500 Parking In-Lieu Fees 2,787,530 20,200 20,200 20,400 22,400 22,600 Other Service Charges 100 100 100 100 100 100 Total Service Charges 6,440,930 3,894,200 3,715,700 3,737,800 4,090,000 4,220,800 Investment and Property Revenues 28,300 45,500 48,200 54,900 14,500 9,000 Fines and Forfeitures 663,200 673,000 669,900 666,600 733,300 740,600 Other Revenues Total Revenues 7,132,430 4,612,700 4,433,800 4,459,300 4,837,800 4,970,400 Expenditures Operating Programs Transportation 2,328,330 2,188,099 2,188,099 2,296,693 2,574,833 2,663,305 General Government 711,587 711,587 684,603 684,603 684,603 684,603 Total Operating Programs 3,039,917 2,899,686 2,872,702 2,981,296 3,259,436 3,347,908 Capital Improvement Plan Projects 1,952,970 50,798 50,798 23,641,272 83,485 120,998 Debt Service 970,817 969,389 969,400 2,053,434 2,419,570 2,412,187 Total Expenditures 5,963,704 3,919,873 3,892,900 28,676,002 5,762,491 5,881,093 Other Sources (Uses) Cashflow adjustment for working capital Operating Transfers In Operating Transfers Out (151,011)(186,930)(43,100) Proceeds from Debt Financing 17,600,000 Other 38,071 GST Loan per Council Approval (500,000) (11,198) Total Other Sources (Uses)38,071 - (511,198) 17,448,989 (186,930)(43,100) Revenues and Other Sources; Over (Under) Expenditures and Other Uses 1,206,797 692,827 29,702 (6,767,713) (1,111,621) (953,793) Working Capital, Beginning of Year 8,436,557 10,279,336 9,643,354 9,673,056 2,905,343 1,793,722 Working Capital, End of Year 9,643,354 10,972,163 9,673,056 2,905,343 1,793,722 839,929 Parking Fund Revenue Trends 17