HomeMy WebLinkAbout06/01/2004, PHI D - PARKING FUND REVIEW 2004-05 counat M"611T D A
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CITY OF SAN LUIS OBISPO
FROM: Michael D. McCluskey, Public Works Director
Prepared By: David Elliott,Administrative Services Manag
SUBJECT: PARKING FUND REVIEW 2004-05
CAO RECOMMENDATION
1. Review and accept the 2004 annual parking fund review.
2. Conceptually approve one proposed new operating program change request and one new
capital improvement plan request,pending final budget review and adoption.
DISCUSSION
Worksheet Assumptions
The attached worksheet; "Changes in Working Capital - Parking Fund", projects sources of
revenue and uses of revenue for the Parking Fund over the five-year period from 2004-05 to
2008-09. Worksheet projections are based on the following assumptions:.
1. Revenue from parking meters, garage fees, passcard sales, meter permits, and fines will in-
crease by one percent each year due to increased parking demand.
2. Annual parking garage revenue will increase by $144,000 after hourly and daily rates are in-
creased by 25 percent in July 2004.
3. Annual parking garage revenue will increase by $140,400 after completion of the Palm-
Morro Parking/Office Building in January 2005.
4. Annual long-term parking revenue will increase by $41,500 after monthly Proxcard rates are
increased by 25 percent in July 2004.
5, Ongoing operations appropriations will increase by three percent each year.
6. The following significant operating program change will take effect:
a. 919 Palm Street Garage Operations @$45,600 in 2004-05 and $136,800 each year start-
ing in 2005-06
7. Capital project appropriations from fund balance will include:
a. Electronic Parking Signs @ $140,000 in 2004-05
b. Fleet Replacment- Parking @ $52,000 in 2004-05
c. Land Acquisition for Future Parking Garages @ $730,000 in 2004-05 and $1,400,000 in
2005-06
c. Palm-Nipomo Parking Garage @ $300,000 in 2004-05 and $1,200,000 in 2005-06
d. Parking Fund Share of Information Technology Projects @ $2,300 in 2004-05, $82,800
in 2005-06, and $45,300 in 2006-07
8. Proceeds from a bond issue in the amount of $16,000,000 will finance appropriations for
construction of the Palm-Nipomo Parking Garage.
9. Annual debt service for new capital projects will cost about $1,162,400.
l- I �
J
Parking Fund Review 2003-04 Page 2
10. A reserve approximately equal to annual debt service will be maintained as required by con-
tractual obligations.
Conclusions
From the worksheet Public Works has drawn the following conclusions:
1. Current parking rates plus increases scheduled to take effect in July 2004 plus accumulated
working capital balances will cover all planned operating expenses, capital outlays, and debt
service obligations from 2004-05 through 2008-09.
2. After construction of the Palm-Nipomo Parking Garage starts, increases in debt service will
cause annual expenditures to exceed annual revenues by $443,900 in 2007-08 and $765,000
in 2008-09. Continuing to operate with these annual deficits will exhaust the working capital
of the Parking Fund and make the fund technically insolvent by 2009-10. (Because
construction of the Palm-Nipomo Parking Garage has not been included in previous
projections for the Parking Fund, this situation has not been anticipated before this year.) To
prevent this situation from becoming a problem, options and recommendations for increasing
parking rates will have to be addressed during the 2005-06 Parking Fund review.
New Significant Operating Program Change Request
919 Palm Street Garage Operations. Operating the public parking portion of the new 919 Palm
Street Garage will cost $45,600 in 2004-05 and $136,800 each year starting in 2005-06.
New CIP Project Request
Fleet Replacement — Parking. Replacing two 1997 GO-4 Interceptor utility scooters in the
Parking fleet with two new utility scooters will cost $52,000 in 2004-05.
ATTACHMENTS:
1. Changes in Working Capital—Parking Fund
2. Capital Improvement Plan Request—Fleet Replacement
3. Significant Operating Program Change Request—919 Palm Street Garage Operations
L\]Council Agenda Reports\2004 agenda reportsMansportation and Development Review(Bochum)\Parking(Horch)\Parking Fund Review
04-05.doc
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TRANSPORTATION-,• s •
FLEET REPLACEMENT- PARKING
CIP Project Summary
Replacing two 1997 GO-4 Interceptor utility scooters with two new utility scooters in the Parking fleet will
cost$52,000 in 2004-05.
Project Objectives
1. Maintain fleet reliability
2. Keep maintenance costs reasonable
3. Improve employee productivity
4. Maintain safety for Parking Service Officers
5. Discourage scofflaws from violating parking ordinances
6. Implement Parking Management Plan requirements that"parking laws will be strictly enforced"
7. Manage the downtown street parking inventory by encouraging regular turnover
Existing Situation
The decision to replace a fleet unit is based on a combination of the following factors:
1. Actual miles or hours of operation compared to expected miles or hours
2. Actual years of operation compared to expected years
3. Possible unsuitability of the equipment for future operations
4. Evaluation of mechanical condition by the Fleet Maintenance Supervisor
5. Evaluation of maintenance costs by the Fleet Maintenance Supervisor
The scooters to be replaced entered service in 1997. Under Fleet Management Policy replacement guidelines,
these units should be evaluated for possible replacement when they reach six years of age or 30,000 miles of
service. Although they have only accumulated about 20,000 miles, they are almost seven years old. In an
effort to stretch budget resources, staff tried to hold off this replacement for the 05-07 financial period and
thus did not submit as a part of the 03-05 budget. However, reliability of the vehicles is now suffering,
maintenance costs are escalating, and downtime has affected Parking Services. Thus, the Fleet Manager is
now recommending replacement.
It is particularly important to have reliable scooters, because when they are out of service for repair, the
Parking Enforcement Officer must patrol on foot. When that happens,revenue plummets.
Goal and Policy Links
Fleet Management Policy(Section 405 of the Finance Management.Manual)
Adopted Parking Management Plan
Project Work Completed
Public Works has met with the Parking Manager to insure that the units to be acquired have been correctly
specified.
Environmental Review
No environmental review is required.
`'c 1J
FACHME I6
TRANSPORTATION-
FLEET
• ♦ .FLEET REPLACEMENT- PARKING
Project Phasing and Funding Sources
Project Costs by Type
Project Costs
To-Date 2003-04 2004-05 2005-06 2006-07 Total
Equipment Acquisition 52,000 52,000
Total 52,000 52,000
Project Funding Source:Parking Fund
Department Coordinator and Project Review/Support
Department Coordinator: Robert Horch
Project Review and Support. Ron Holstine and Dave Elliott
Operating Program
Parking(50600)
Project Effect on the Operating Budget
Hours of time needed for project coordination: 10
Description of Units to be Replaced: Replacement Unit and Cost Detail*:
City Fleet Number: 9826 9827 Make: G04
Model Year: 1997 1997 Model: Interceptor
Make: GO-4 G04 Description: Utility Scooter
Model: Interceptor Interceptor Base Vehicle Cost: $21,640
Description: Utility Scooter Utility Scooter Sales Tax @7.25 Percent: $1,569
Year Entered Service: 1997-98 1997-98 Delivery: $300
Scheduled Replacement Year: 2003-04 2003-04 Light Bar: $300
Recommended Replacement Year: 2004-05 .2004-05 Radio: $1,000
Original Acquisition Price: $20,000 $20,006 Contingencies @ 5 Percent: $1,240
Estimated Surplus Value: $2,000 $2,000 Total Acquisition Cost: $26,049
Odometer Reading at 04/04: 18,779 19,693 'two required
Total Maintenance Cost at 04/04: $8,285 $8,280
Target Age: 6 6
Projected Age at Replacement: 7 7
Target Mileage: 30,000 30,000
Projected Mileage at Replacement: 19,260 20;200
. .
ATTACHO3
i 0
919 PALM STREET GARAGE OPERATIONS
Request Summary
Operating the public parking portion of the new 919 Palm Street Garage will cost$45,600 in 2004-05 and
$136,800 each year starting in 2005-06.
Key Objective
Provide public parking for the Court Street development project.
Factors Driving the Request for Change
The new 919 Palm Street Garage is scheduled to begin operations in March 2005 with the attendant booth staffed
for I1-1/2 hours per day on Mondays, Tuesdays, and Wednesdays and for 15-1/4 hours per day on Thursdays,
Fridays, and Saturdays. Required contract services will include parking controls maintenance, deck sweeping
and scrubbing, security guard patrol,janitorial maintenance, elevator maintenance, printing, alarm monitoring,
and uniform laundering. Full utilities services will also required.
The need for these staffing and services costs was anticipated two years ago in the original CIP project request
for the garage. This request appears on pages E-7 through E-13 of the 2001-03 Financial Plan Supplement and
Approved 2002-03 Budget.
Implementation
Task bate --
Negotiate
. -
Negotiate terms with existing contractors for expansion of services November 2004
Draft and submit required amendments to existing agreements December 2004
Execute amendments January 2005
Begin contract services at the new garage March 2005
Submit personnel requisitions for new parking attendants December 2004
Advertise for parking attendant positions January 2005
Hire parking attendants and begin training February 2005
Operating Program
Parking(50600)
Al IAURN 13
919 PALM STREET GARAGE OPERATIONS
Cost Summary
Line Item Description Account No. 2004-05
Staffing- - -- 15,000
Salaries-Temporary 510.50600.7014 13,700
Medicare 510.50600.7044 200
Unemployment 510.50600.7046 100
Workers Comp Insurance 510.50600.7048 1,000
Contract Services 26,400
Contract Services 510.50600.7227 23,300
Laundry and Linen Service Contracts 510.50600.7259 1,100
Printing 510.50600.7283 2,000
Other Operating Expenditures 4,200
City Water Service 510.50600.7603 300
City Sewer Service 510.50600.7604 100
Electric Utility Service 510.50600.7605 3,600
Telephone Services 510.50600.7617 100
Trash Service 510_.50600.76.21 100
Total Operating Costs 45,600
Y-�
council memonanbum
RED FILE Nr_u ED
June 1, 2004 MEETING AGENDA JUIN 01 2004
DATE ITEM #T l Ib
TO: City Council SLO CITY CLERK
VIA: Ken Hampian, City Administrative Officer
FROM: Mike McCluskey, Director of Public Worksvvl- �
Dave Elliott, Administrative Services Manager
SUBJECT: Parking Fund Review 2004-05
Item 1Don the 06/01/04 Council Agenda
The document "Changes in Working Capital—Parking Fund", which is Attachment 1 to the
agenda report for Item 1D on the 06/01/04 Council agenda, contains two data errors.
In the first, the revenue shown for street parking meter collections in 2008-09 is $663,200. This
amount should be$933,200. In the second error, staff missed the debt service requirements for
the 919 Parking Garage set to begin in 2005-06. You'll see the debt service line item increases
from $909,700 (first document) in 05-06 to $1,539,800 (revised attached document).
The first was caused by a formula in the background detail spreadsheet not correctly summing all
the cells in the 2008-09 column for street parking meter collections. So revenues go up by
$270,000 but only for the last year of the analysis. But expenses for debt service on the 919
Parking Garage go up by $630,000 beginning much earlier in 2005-06. This shows that if
projected costs associated with the Palm/Nipomo Parking garage are correct that the Parking
Fund balance will remain positive until the end of 2006-07 and go negative thereafter. On the
other hand, eliminating the Palm/Nipomo construction/bonding costs from the spreadsheet
altogether results in a Parking Fund balance at the end of 2008-09 of$431,000.
Clearly, therefore, as the design and implementation of the Palm/Nipomo Parking Garage
proceeds in the future, a very key issue will be its cost and its impact to the Parking Fund and
parking rates. Staff is making no recommendations at this time for major changes in Parking
rates as there is much more study and many decisions lie ahead before our approach and timing
for this garage are known.
COUNCIL DD DIA
I CAO �FINVR
CACAO ;i-FIRE CHIEF
12-ATTORNEY -2-FIW DIR
Attachment: Revised Changes in Working Capital —Parking ZCLERK-0910 P-P000E CHF
13 Dom, T HtADS ZREC DIR
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LWdmin DivisionTudget information12004-05 BudgettEnterpnse Fund Rate Reviewslcc memo changes to parking fund analysis 6-1-04.doc
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