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Home My WebLink About04/21_1/1992, 2 - PARKING STRUCTURE RATES Original agenda report f*--q the meeting of 4/7/92. IIIry�I�Ill�llllln I I � MEETING DATE: II II � Cityo San L,41S osispo Ap.r. I COUNCIL AGENDA REPORT ITEM NUMB : 41 FROM: Dave Romero �- Prepared by: Keith Opalewski Public Works Director Parking Manager SUBJ: Parking Structure Rates CAO RECOMMENDATION: Adopt a resolution rescinding Resolution 6963 (1991 Series) and approving increasing parking structure rates to 50 cents per hour with the first 90 minutes free and a maximum of $3 . 00 per day. BACKGROUND: In April of 1991, the City Council adopted new rates for the parking structures as part of an overall financial plan to eliminate the parking program's negative cash flow. The new rates included offering the first 90 minutes free in order to encourage usage of the facilities. This 90 minute free component was the recommendation of the business community which continues to have strong support for this option. However, because of the popularity and overwhelming success of offering free parking in the structures, the parking program is losing approximately $20, 000 per year, therefore, parking structure rates need to be re-evaluated. DISCUSSION: Approximately 65% of Marsh Street and 42% of Palm Street parking structure users park for free. This converts to 600-900 cars per day that do not pay anything to use the City's parking structures. Based on current rates this represents an annual income of $143 , 000 vs. the budget projection of $163 , 000. Given the success of the 90 minute free option, and subsequent loss to the parking program, staff took the issue of parking structure rates to the BIA and Parking Management Committees for discussion. Initially, the proposal was to leave the rates at 40 cents per hour and a maximum of $3 .20 per day, but roll back the free time to 60 minutes instead of 90 minutes free. Although this would be more cost effective to implement and recoup approximately $25, 000 annually, it was not supported by the BIA Parking Committee. The BIA countered with a proposal to leave the first 90 minutes free but increase the rates to 90 minutes free and 50 cents per hour with a maximum of $4 . 00 per day. This option was discussed at the Parking Management Committee, which in turn, countered with 90 minutes free and 50 cents per hour with a maximum of $3 . 00 per day. °in,sir►iilV►Illllllll�i' ��Ill city o� Sant 3 osiSpo Gia; COUNCIL AGENDA REPORT Council Agenda Report Page Two I It was felt that reducing the daily rate would encourage more people to use the parking structures, while increasing the hourly rate slightly would still be acceptable to users. The new proposed rates also have an added benefit of having more even rates (50 cents and $3 . 00 vs. 40 cents and $3 . 20) to work with, both for the user and parking attendants. It is the consensus of the committees and staff that failure to adopt higher parking structure rates would continue the negative cash flow situation for parking structure operations. CONCURRENCES: The final proposal of the first 90 minutes free and 50 cents per with a maximum of $3 . 00 per day did receive final approval from the BIA Parking Committee as well as the BIA Board. Staff also concurs with the higher hourly rate and lower daily rate. FISCAL IMPACT: I Without adjusting the parking structure rates the parking program will continue to lose an additional $20, 000 annually based upon current rates and number of users (option b) . a. current revenue budget-------------$163,000 b. revised revenue projection---------$143, 000 c. current rate with 60 minutes free--$166, 000 d. new rate 50 cents and $3. 00 max.---$172, 000 Proposed Rate e. new rate 50 cents and $4. 00 max.---$180, 000 i The proposed rate (option d) is estimated to generate $172 , 000 annually, which is approximately $10, 000 more than the projected income for the current fiscal year. Maintaining current rates and rolling back to 60 minutes free parking (option c) would basically meet the current revenue projection ($163 , 00 current budget vs. $166, 000 for 60 minutes free) . The higher rate of 50 cents per hour and a maximum of $4 .00 per day (option e) would generate $180, 000 annually. Although this would help the parking program maintain a more positive cash flow, it was not supported by the parking committees, and could be counter productive for consistent use by all day parkers. In short, the proposed rate will help with the cash flow situation without deterring short and long-term users. The average short- term user (2-hours or less) will only have to pay the equivalent of 25 cents per hour. Comparable cities with parking structures (Monterey, Santa Barbara, Santa Monica and Santa Rosa) average 50 cents per hour with the top range being $1. 00 per hour. Ilei»�i►Il�illlllll�liji��1 city of San ' 's OBISPO COUNCIL AGENDA REPORT Council Agenda Report Page Three I ALTERNATIVES: Although maintaining status quo for parking structure rates is possible, it does not address the issue of eliminating the drain on the parking program's cash flow. The various alternatives for different rates have been discussed by the Parking committees and the final option of 90 minutes free and 50 cents per hour with a maximum of $3 . 00 per day has the support of all concerned parties. Raising rates for meters or fines to adjust for the drain on the garage component of the parking program is not recommended at this time. These components are meeting revenue projections since they were raised last year, whereas the garage component is not. I I Attachment: Resolution I i I � I i I RESOLUTION NO. (1992 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO RESCINDING RESOLUTION 6963 (1991 SERIES) AND APPROVING THE PARKING STRUCTURE RATES OF THE FIRST 90 MINUTES FREE, 50 CENTS PER HOUR AND $3 .00 PER DAY MAXIMUM WHEREAS, the City of San Luis Obispo wishes to maintain high usage of its two parking structures; and WHEREAS, the parking program needs to be self-sufficient for its financial commitments; and WHEREAS, the BIA and Parking Management Committees have discussed options to increase parking structure rates while maintaining the free parking option for the City's parking structures. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: 1. Resolution 6963 (1991 Series) is hereby rescinded. 2 . Effective June 1, 1992 all city parking structures in the downtown shall offer the first 90 minutes free parking and the new hourly rate for said parking structures shall be 50 cents per hour with a maximum of $3 . 00 per day. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this day of , 1992 . MAYOR RON DUNIN 0147 T Resolution NO. (1992 Series) ATTEST CITY CLERK APPROVED: CITY MINISTRATIVE OFFICER JAAJ CI O TE FINANCE DIRECTOR PUBLIC WORKS DIRECTOR PARK NG MANAG