HomeMy WebLinkAbout4/16/2019 Item 13, Grigsby (2)
City of San Luis Obispo, Council Memorandum
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DATE: April 15, 2019
TO: City Council
FROM: Daryl Grigsby, Public Works Director
VIA:
Derek Johnson, City Manager DJ
SUBJECT: Council Questions Regarding the Item 13: Parking Fund
Staff have received several questions regarding the Parking Fund discussion section associated
with Item 13 Strategic Budget Direction. Note, the Parking Fund is discussed on at pages 117
through 120 of the Agenda Packet.
1) Please discuss the reasons for the drop off in monthly parking permits and long-term
meter demand.
The January 2018 rate increases has had some effect on demand for permits based on type.
a. “Quarterly” 10-Hour Permits. The number of “Quarterly” 10-Hour meter permits
sold has remained consistent over the last few years even with the rate increase.
These quarterly permits offer a savings from parking costs in the structures and in
the core metered zones. The number sold are capped each quarter at 400 and sell
out each quarter.
b. “Monthly” 10-hour Permits. There has been a softening of demand in purchase
of “Monthly” 10-hour meter permits. These permits were previously capped at 200
per month (600 per quarter) and prior to the 2018 increase, were selling out about
95% of the time for the prior two year period.
In January 2018 these permits went from $40/month to $60/Month, a 33% increase.
The prior $40/month cost was a significant cost savings for monthly parkers. The
rate adjustment was to bring the 10-hour meters in closer alignment with the cost
of parking structures. (The current rate is a 52% savings in 10-hour meters as
opposed to Marsh or 919 Palm). Sales dropped initially in reaction to this price
adjustment, but the most recent month saw 429 permits sold. On the upside there
are meters that are available now for hourly users who choose not to pay for a
monthly pass or park “further out”. Of the $432,000 estimated in the 10-Hr. meter
revenue for the current year, we think this downturn will result in a $35-40,000
reduction by year’s end if permits continue to rebound.
Due to this variability in permit purchasing and Council’s previously approved
increase for July 2019 for the 10-permits staff is reviewing this issue and will return
to Council during the June budget adoption with a recommendation.
Item #11 Strategic Budget Direction Page 2
Fiscal Year 17-18 Fiscal Year 18-19
1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q
10 Hr Permit
Monthly
532 600 533 462 399 427 469
10 Hr Permit
Quarterly
400 400 400 400 400 400 400
Avg Permits per
Month
577 600 578 554 533 542 556
Table 1- Recent 10 Hr. Permit Statistics
2) Where are the planned locations for the $157,000 expenditure to replace on street
parking meters?
Two major investments to continue to upgrade and replace parking meters are proposed to be
included in the 2019-21 Financial Plan. Depending upon final cost per meter, the programs can
be accelerated to match the approved budget. See map for locations.
a. Staff is proposing upgrading some meters to have credit card capabilities outside of
the “super core”. This will convert most of the meters in the $1.50/hour zones for
credit card capable meters. Staff.
b. The existing credit card meters are showing age, and some are in need of
replacement. This project will begin the replacement in the ”super core” zone
($2/Hr.) and will start on our highest activity locations such as Higuera Street and
Lot 10 on the corner of Higuera/Nipomo Street.
If you have any questions, please contact Tim Bochum, Deputy Director Public Works, at (805)
781-7203 or tbochum@slocity.org
City of San Luis Obispo, Council Memorandum Year 1 CC Meter Replacement Year 2 CC Meter Replacement Year 1, 2 Coin to CC Meter Upgrade