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HomeMy WebLinkAbout05/04/1993, 6 - STATUS REPORT ON REVIEW OF LIGHTED SIGN PROVISIONS OF THE SIGN ORDINANCE. M TE NG -g3 RE9 cul = city of San lu, OBIspo COUNCIL AGENDA REPORT - FROM: o . Arnold B. Jonas,/Community Development Director SUBJECT: Status report on review of lighted sign provisions of the Sign Ordinance. CAO RECOMMENDATION: Direct staff to complete the requested. review process, and return to Council with a recommendation for possible ordinance amendment. BACRGROIIND: During the Council meeting of April 131 1993, Council directed staff to initiate consideration of an amendment to the zoning regulations addressing illuminated signs within office zones. The request came as a result of Council's consideration of the appeal of the Century 21 sign on Broad Street. Council provided this direction with the understanding that the effort will be limited only to a sign illumination issue, and will not create a workload or priority problem relative to other higher priority Community Development Department projects. DISCUSSION: since Staff has made significant and rapid progress initiating work on this request. Alternatives for amended text language have been developed and reviewed with the City Attorney, public review of a Negative Declaration of Environmental Significance (ND) for.the project has been initiated, and Architectural Review Commission comment has been solicited. Considering the requirement for a 21 day public comment period on the ND, and assuming Planning commission consideration is limited to one hearing date, we expect the remainder of processing to be scheduled as follows. May 19, last day for written comment on the ND:: May 26, Planning Commission hearing. June 15, City Council hearing. We are pleased to be able to respond so quickly to Council's interest in this matter, considering the number and priority of other projects currently underway. i /- f/t9',3 -� I�III�I�III�IIIIIIIII,II�III MEETING GATE: ci or I►��uil san lues oB�spo COUNCIL AGENDA REPORT ITEM NUMBER: FROM: Mike McCluskey, Public Works Direct r Prepared by: Keith Opalewski, Parking anager SUBJECT: Parking Meter Rate Increase CAO RECOMMENDATION: Introduce an ordinance to print amending section 10-52-010 (Parking Meter Zone Rates) of the Municipal Code to change all parking meters and change the effective date of rate changes to 40 and 60 cents per hour on July 1, 1994 and 50 and 70 cents per hour on January 1, 1998. DISCUSSION: In 1987 Council approved an ordinance to increase parking meter rates from 20 to 30 cents per hour effective January 1, 1988, with subsequent rate increases at 5 year intervals (35 cents in 1993, 45 cents in 1998 and 60 cents in 2003). In 1991 Council approved an ordinance change to establish a variable meter rate system which increased 450 core meters from 30 to 50 cents per hour. This increase was part of an approved financial program that included higher fines and penalties for parking citations along with increased parking structure rates. The additional revenues were needed to offset a negative cash flow within the parking fund. Last October staff began the process to solicit bids for the planned January 1, 1993 nickel increase, but due to the economic environment it was decided to postpone the process until after the first of the year.. In January the issue of moving forward with the planned increase was discussed with the BIA Parking Committee. At their recommendation, staff looked into the possibility of delaying the increase until 1994 or 1995 but at a higher rate than the planned 5 cent increase. After considering several different scenarios for delayed rate increases, the BIA Parking Committee approved a recommendation for a new rate structure and a revised timetable for meter rate increases. The new rate structure would be 40 cents per hour for non-core meters and 60 cents per hour for core meters. Both rates would be effective on July 1, 1994. The planned increases for 1998 and 2003 were also discussed and the BIA made a commitment to support the future rate change of an additional 5 cents per hour above the current rate change planned for January 1, .1998. This results in a more even progression of two 10 cent increases over the next 10 years. However, as we found with the current pre-approved 5 cent rate increase, realistically the 1998 and 2003 rates will also be reviewed for their fiscal impact before they would be acted upon. Staff concurs with the BIA recommendation of deleting the 5 cent 1993 increase and implementing a 10 cent increase in 1994 (40 and 60 cents per hour) and an additional 5 cents more than the current increase that was planned for in 1998 (revised rates of 50 and 70 cents per hour). One of the driving factors for recommending a higher rate was the cost to implement a meter rate overhaul. Since it will cost the same to increase the rate by a dime as opposed to a nickel, opting for a higher rate at.a later date offers a quicker recovery time to recoup capital ��i�llllillll1° ���U City o� san Luis osispo WiS COUNCIL AGENDA REPORT Council Agenda Report Page Two I costs and results in meters generating revenues at an increased level. The revised rates also j present a more "user friendly" coin configuration of 40, 50, 60 and 70 cents as opposed to the previously planned 35, 45, 55 and 65 cents. In addition, given the current calendar, the amended timetable provides for a better implementation date of having all the new mechanisms ready for field installation by July 1, 1994. Since it takes 4-6 months to complete the entire overhaul of all meters, the bid process to solicit a vendor to supply the rebuilt-exchange mechanisms at the adjusted rate can begin in January, thus avoiding any negative public relations during the critical holiday shopping months of November and December. The field conversion to the new rate mechanisms will begin on July 1, 1994, with all of the new mechanisms in place by mid-July. I Another consideration in delaying the meter rate increase is that it will allow the opportunity for the economic picture to brighten and thus make the increase more palatable. Overall, the 10 cent adjustment in 1994 is a winning proposition for both the City and the business community. FISCAL IMPACT: A major factor in considering a higher meter rate was the conversion cost. The current estimate, based on January 1, 1993 preliminary quotes by the two major meter manufacturers, is $90,000 to overhaul and convert the 1550 meters. This cost includes a completely remanufactured mechanism that is guaranteed against defect for two years. The conversion cost is the same whether the increase was 5, 10, or 25 cents per hour. Therefore, the consensus of the BIA and staff is that the City gets a better return for its investment by implementing the higher rate at a later date. Further deferral of rate changes may not save money since the meters should be periodically reconditioned and based upon experience and current time in service this should occur no later than 1994. i In terms of lost revenue due to the delay, the City will not realize the previously anticipated increase in cash flow of$90,000 per year. The eighteen month delay will represent a$135,000 loss in new meter revenues. However, when these figures are compared to the amount of revenue generated for the first eighteen months of the 10 cent increase in July 1994, the City will basically break even by January 1, 1996. Current overhaul funds that are earmarked for j this year's increase ($63,000 in contract services) will not be expended during the current fiscal year and be reallocated toward the revised rate increase, augmented by an additional $27,000 in contract services for the 1993-94 fiscal year. The parking fund reserves(projected at a range of $300-$350,000 by June 30, 1993) can maintain ongoing operations and minor CIP projects and supplement the 1993-95 parking budget with the necessary funds to complete the meter overhaul without jeopardizing the solvency of the parking program. The higher rate will continue to generate revenues at an accelerated rate from the previously planned nickel increase. The projected net increase of 10 cents more per hour would produce approximately $180,000 more than the nickel rate over the next 4 years. From a fiscal z� uill':11111i' ��u�ll city of San WIS OBISPO MoZa COUNCIL AGENDA REPORT Council Agenda Report Page Three standpoint, deferring the rate increase for now, will place the parking fund balance in a better ' ! situation in the future. Furthermore, the recommended 1998 rate adjustment of 45 and 65 cents per hour increased to 50 and 70 cents per hour will produce additional revenues of$90,000 per year. This too, will allow the parking program to meet ongoing costs as well as help offset future bonded indebtedness for additional parking structures or help retire our current debt service at an earlier date. ALTERNATIVES: 1. Direct staff to immediately implement the 1993 nickel increase as in the Muni Code. ! 2. Defer increase to a future date. 3. Recommend a different rate of 5, 15 cents or other rate change. Although implementing the pre-approved 5 cent increase this year is still an option, the j arguments for not doing it at this time still hold true. Those being that we get a better return for our investment, a potential for better acceptance by the public due to the delayed timetable and moderate increase, and additional revenues beyond.previous projections will be generated once it is fully implemented in the field. The other option considered by staff and the BIA was the possibility of postponing the increase even further, but at a Still higher rate ( 25 cents per hour in July 1995). As with the other rate increases the conversion cost would be the same as the 10 cent increase. Although revenues would be substantially higher with this option (approximately $240,000 per year higher than the dime), the substantial jump in rates (50-83% increase under our current 2-tier rate structure) would not be readily accepted by the business community, and certainly not by the public. Based on the high potential for a. strong negative impact, this option was not recommended. The recommended increase of 10 cents per hour in July 1994 represents the best course of action for all concerned parties. The same holds true for increasing the rates in 1998 so current and future rates are in increments of 10 cents each as opposed to larger one time adjustments. I ! Exhibit A Legislative Draft Meter Rates j Exhibit B Proposed Meter Rate Ordinance I i I I I �-3 OLEGISLATIVE DRAFT Chapter 10.52 PARKING METERS Section: 10.52.010 Parking Meter Zone--Rates. A. Within the area enclosed by a dashed line on the parking meter zone map (Exhibit 1), the parking of vehicles on streets or in municipal parking lots may be controlled and regulated with the aid of parking meters. B. The parking meter rate shall be thirty cents per hour effective January 1, 1988. Parking meter rates shall be increased to the following amounts over the next 15 yeas: OEffective Date of Increase Rate janttar-y 1, July 1, i94 X35 $:40 January 1, 1998 $45 S.5. January 1, 2003 $.60 C. Within the area enclosed by diagonal lines on the parking meter zone map (Exhibit 1), the rate for parking meters on streets or in municipal parking lots shall be fifty cents per hour effective June 1, 1991. Parking meter rates for this higher-rate zone shall be increased to the following amounts over the next 15 years: Effective Date of Increase Rate 3a y-1;-1933 July 1, ;.1994 $4 $. 60 January 1, 1998 $:65 January 1, 2003 $.80 b� EXHIBIT A I , `J Ordinance No. (494 1993Series) Page Two SECTION 2: A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least 5 days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this city. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the day of on motion of seconded by , and on the following roll call vote: AYES: NOES: ABSENT: -' MAYOR PEG PINARD ATTEST: CITY CLERK APPROVED: CITY ATTORNEY ' rn El El § cli 1S 3dd3d � s OSNHOP S N s oa t ~ Q M8 a o, o 2 13 xO ° V5 a VINVS S 8 sos is 0aaowrg gEl -11 El [ § `L] El = = E . --1 ag S N3aays Got Goe El ❑ 80 El O 0 I 006 OOGt OOII OOZI OQ£l 001't o Q� S HOV38 0 S '1s wav0 C EXHIBIT 1 ORDINANCE NO. (1993 SERIFS) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING SECTIONS 10.52.010 (PARKING METER RATES) CHAPTER 10.52 (PARKING METERS) OF THE SAN LUIS OBISPO MUNICIPAL CODE BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. 10.52.010 of the San Luis Obispo Municipal Code is hereby amended to read as follows, effective June 1, 1991:. 10.52.010 Parking Meter Zone--Rates. A. Within the area enclosed by a dashed line on the parking meter zone map (Exhibit 1), the parking of vehicles on streets or in municipal parking lots may be controlled and regulated with the aid of parking meters. B. The parking meter rate shall be thirty cents per hour effective January 1, 1988. Parldng meter rates shall be increased to the following amounts over the next 15 years: Effective Date of Increase Rate July 1, 1994 $.40 January 1, 1998 $.50 January 1, 2003 $.60 C. Within the area enclosed by diagonal lines on the parking meter zone map(Exhibit 1), the rate for parking meters on streets or in municipal parking lots shall be fifty cents per hour effective June 1, 1991. Parking meter rates for this higher-rate zone shall be increased to the following amounts over the next 15 years: Effective Date of Increase Rate July 1, 1994 $.60 January 1, 1998 $.70 _ January 1, 2003 $.80 ��D Ordinance No. (1993 Series) Page Two SECTION 2. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least 5 days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this city. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the day of on motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: MAYOR PEG PINARD ATTEST: CITY CLERK APPROVED: 0 C �-0 rn El El co -� is � s o sNH r 8 N s oa CL CL a s 0 0 5oso' A�' El .aaGO soaa � W g C $ w El cot Cl E 8 ad � a 006 0001 0011 OOZI OOfI OOY► e 17 S H� 0 • 'JS W ' EXHIBIT 1 '"111111 jI111 city of San LUIS OBISPO MEEnNs oarE: COUNCIL AGENDA REPO T ITEM NUMe6i: FROM: William C. Statler, Director of Finance Prepared by: Linda Asprion, Revenue Manager��� SUBJECT: LATE FEE ON DELINQUENT ACCOUNTS CAO RECOMMENDATION ■ Adopt a resolution effective July 1, 1993, implementing a monthly late fee in the amount of$10 or 1S9o,whichever is greater, on all accounts that have not been paid within 30 days of the due date. ■ Introduce an ordinance amending the municipal code to provide for setting penalties on delinquent business and transient occupancy taxes by resolution. DISCUSSION Background There ar�f which issue invoices/bills to City customers: ■Utility billin which bills costo ers for ater and sewer on a bi-month) basis. This system pr uces approximat 1y 75,000 lls annually. y L ■ Business tax which bill cu o rs operating a business in the City. This system produces approximate) 12,000 newal notices annually. ■ Transient occupancy tax (TOT) which bills all motels/hotels-c=toomers a monthly basis for the tax collected from their patrons. Approximaa issued annually. ■ General accounts receivable which issues invoiceor lease payments, parking permits,. subventions, damage to City property, parking-in-lieu fees, and insurance payments. Invoices are produced on either a quarterly,monthly, or annual 'basis depending on the type of invoice. During a one year period approximately 3,30 invoices are billed through the accounts receivable system. Curren y the City charges a $5 late fee on delinquent utility bills; $10 or 10% monthly, (whichever is greater) on delinquent business tax and TOT accounts;.and does not charge a late fee on delinquent general accounts receivable. Staff is recommending the implementation of a standard late fee for all four systems which will appropriately recognize the costs associated with collecting funds from customers who are delinquent in paying amounts due to the City on a unified basis. 7-/ r ' +����►i��u►►Illli� ° il�lll city of San tui S OBISPO WOrms COUNCIL AGENDA REPORT Why the sane late fee for aU four systems? A standard late fee will be easier to administer, provide equity in the assessment of late charges, and will cover the costs associated with tracldng delinquent accounts and submitting them to a collection agency as well as the lost opportunity cost from not having the funds available for use by the City. The initial late fee will be assessed 30 days after the due date of the invoice/bill. Each month the invoice remains unpaid,an additional $10 or 1.5% of the amount due (whichever is greater) will be added to the account balance. What do other cities charge for late fees? Many of the municipalities contacted do not charge a monthly late fee on their accounts receivable and many of the cities have private utility companies for water and sewer. As such we expanded the survey to include some local businesses to determine what they charge for delinquent accounts. The survey results for monthly late fees are as follows: CITY WATER OTHER ACCOUNTS Palm Springs n/a $3.00 or 1% whichever is greater San Juan Capistrano n/a none Petaluma $10 $5.00 or 10% whichever is greater Visalia n/a none Davis 10% none Santa Barbara n/a none Camarillo 10% none Santa Maria $9 none Ventura 10% none Santa Cruz 10% 1.5% Monterey n/a 2.0% Napa $10 or 10% whichever $5.00 or 1.5% whichever is greater is greater County of San Luis Obispo 10% on property taxes Telegram Tribune 1.5% Quaglino's 1.5% Gottschalks 1.65% As reflected above, the proposed late fees are comparable to those charged by local businesses and other municipalities. -a �����►�►��I�Illilllllh► II�III city of San Luis osispo COUNCIL AGENDA REPORT FISCAL IMPACT It is not anticipated that the amount of late fees collected will be significantly more than is currently collected. In the case of business tax and TOT delinquencies, the amount of the late fee is actually being reduced to conform to generally accepted business practices (although the current maximum on the amount of the penalty for late payment of business taxes is being eliminated). Once the chronic delinquent accounts recognize that a late fee will be added to the account balance, we are optimistic that more accounts will be paid in a timely manner. As part of our standard procedure, if a customer is having difficulty in making the payment, individual consideration will be provided for extended payment terms that will not be subject to late charges. SUMMARY I The City's utility billing, business tax, transient occupancy tax, and general accounts receivable systems are used to bill customers for a variety of services and fees owed to the City. Staff is recommending a monthly late fee in the amount of $10 or 1.5%, whichever is greater, be implemented to cover the City's administrative cost for follow-up on the delinquent payment and in lost opportunity cost from not having the funds available for use by the City. ATTACHMENTS ■ Resolution implementing a late fee on accounts receivable invoices ■ Ordinance amending the municipal code to provide for setting penalty charges on delinquent business and transient occupancy taxes by resolution. RESOLUTION NO. (1993 SERIES) O RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO SETTING LATE FEES ON DELINQUENT ACCOUNTS WHEREAS, the City of San Luis Obispo bills customers for a variety of services and fees; and WHEREAS, the City of San Luis Obispo has determined that customers who do not pay their invoices within 30 days of the due date are delinquent in making their payment. NOW, THEREFORE, the City Council of the City of San Luis Obispo finds and resolves that: SECTION 1. Effective July 1, 1993, monthly late fees in the amount of$10 or 1.5% on the balance outstanding, whichever is greater,will be charged and added to the balance of delinquent accounts which have not been paid within 30 days of the due date. SECTION 2. Effective July 1, 1993, Municipal Code Section 4.20.110, adopted by Resolution 6447, will be rescinded. Upon motion of , seconded by and on the following roll call vote: U AYES: NOES: ABSENT: the foregoing resolution was adopted this day of . 1993. Mayor Peg Pinard ATTEST: City Clerk Diane Gladwell APPROVED: i ttor ey ORDINANCE (1993 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING SECTIONS 3.01.505, AND 3.04.080 OF THE SAN LUIS OBISPO MUNICIPAL CODE RELATING TO PENALTIES ON DELINQUENT PAYMENTS WHEREAS, the City of San Luis Obispo is implementing a standard late fee on all delinquent accounts; and WHEREAS, amending sections 3.01.505 and 3.04.080 of the municipal code is necessary to establish penalties for delinquent payment of business and transient occupancy taxes by resolution; and WHEREAS, the City Council has held a hearing to consider the proposed changes; NOW THEREFORE BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Chapter 3.01, Section 3.01.505, Delinquencies and Penalties, is hereby amended to read as follows: 3.01.505 Delinquencies and Penalties delkiquen4 date, the Fiflanee Dir-eeter- shall add a penalty ef te4 and neJ100ths ($10". ME �efteh m.ei.q.th after- the deliftElueney thereof-; > > penalty te be added ift ne event shall emeeed ene hundfed (190%) pefeent ef the afn :x.::;.; «.>;:... ,x.;q :Hx..x<.:.:ax .r..>•. :..r:.:. .:.v:. Wit`I•atl'n�e to pap t'Ite bt�stness pax required bys.t'�e pr6v�sot�s of t��s cha�ter,pri�xyto the e7�n��uency slate,t�ewDrrectttz�of I'tttanee:stall ai��l � penalty >T�e,amo��t o#��ts�e�a�t} sh�`all be set by:resoluton �f,t}te �� Oou�cal SECTION 2. Chapter 3.04, Section 3.04.080, Penalties and interest, is hereby amended to read as follows: 3.04.080 n,,.,,,kie. G---rT'Yaud if 1 tax a i cratrot—deter-fflinca--ihat the • , ame,dat t the t shall ll 1 added l t in ad•t .. t,, the penalties stated : .ubse t: e.ey tam impesed by this ehapter- shall pay inter-est at the fate ef ene half ef ene pefeent pef t, w the •tt r . 1 ...FBe delinquent , nfi! paid. B. Penalties Mer-ged %ith Tax. Every penalty impesed and seeh interest as aeepaes undeF the pr-&Asiens ef this seetien shall beeeme a part ef the tk her-ein required te b-e 3�l UBfl, l�elirtquences end Penalties A, l�elintiitenty 4 Any d©peralttr who fails'tn remit any#ax mpi�seby this chapter yF.:..n,::.:: n.......... .. n: Q v. v.nv:n,..,.vn:v✓::.;':.mv:iin..vCY.!.V}>::?!:,:>p,:,vni. +v.,:v.:v:: iiCi:i.i: .v iso#thine tune requ;red shad pay a peril# , ..........................amount A# w1b wdl be set by resoit7ion flUnClu JFraud if the xax adminisiraior determines that the u�rayme�it o ani r'entrtt2nce dti tinder tis raptez ;S die #fl frauds a ?�nal#' 4f twen#y fivereen#ofh ............ ..... .. .. .................... :. ....::.n,.n:'v:::..nye.env:::n.:::::...:.:n.:::.: :,..:.:.»n'::.:.n,:.:::. »rn.......:.aY}:^:iii:^'::iY.:v:::..:'Yi:.ii:. aatourit of the#ax shall lie added the#e#o in addttttri to .........penalties $tared an subsecttorl `r�ftll$ sectior G Pettaltteserge u!tt1 Tax Everyealt} imposed ttn+er 113ezovis3otls of tbi section shall become a,pa�_of,the tax, �eretn re�n�ed tp�be patclM SECTION 3. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published once in full, at least five (5) days prior to the final passage in the Telegram-Tribune, a newspaper published and circulated in said City, and the same shall go into effect July 1, 1993. O 7-6 i INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at its meeting held on the day of , 1993, on motion of seconded by , and on the following roll call vote: AYES: NOES: ABSENT: Mayor Peg Pinard ATTEST: City Clerk Diane Gladwell APPROVED: w At rn � 7-7 ENDA MEETI _� AITEM ! � DATE IVA For. A.M. jp• •t IPMO' 1. M • r 01 Phorw r. FAX ' wmm.r . emtdon NQBU ppp� , NwrAw 6 .. , yu Cd POW Y�dst�t9 WGfOapain Ceneconhdd • r at►tw IN USA COPIESTO: i ❑•D-.otp Action ❑ FYI Coan(S ❑ CDD D R CAO ❑ FIN.DIP, ACAO PPRE a=- r�r ATTOXNEY IQ FNJ DIR IJ CL- l</OP,?r_-. n PGLtCECFL ❑ MGMT.TEs M C1 W-:C DLA: O