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HomeMy WebLinkAbout12/04/1990, 5 - CONSIDERATION OF CONTINUING MODIFICATION OF PARKING USER FEES FOR ALANO CLUB PROPERTY IN RAILROAD S �I�IM�� I�IIIIIIIIIII�A VIII (� ' MEETING DATE: u San -lues OBISPO - �� c� or COUNCI AGENDA REPORT ITEM NUMBER: Dave Romero Wayne Peterson Prepared by Keith Opalewski Public Works City Engineer Parking Program Coordinator SUBJECT: Consideration of continuing modification of parking user fees for Alano Club property in Railroad Square. CAO RECOMMENDATION: By motion, direct staff to discontinue the double credit for Alano Club's six off-site parking spaces and require them to pay the established rate for all required parking spaces. BACKGROUND: In September 1989, the City Council adopted Resolution (#6693) establishing a parking user fee for property owners in the Railroad Square Parking Service Area. The rate for parking was set at $12 per space per month and all property owners agreed to pay this amount. In November of 1989, the Alano Club appealed the rate established in the lease and indicated they could not meet their financial obligation. Several options were discussed at the November 14 Council meeting, which included a low monthly rate of $50 or giving double credit as opposed to single credit for some off- site parking spaces. The latter option was chosen by the Council, with staff direction that the double credit for 6 off- site spaces be reviewed by Council in one year. (See Attachment) Council further addressed the Alano Club's concerns by suggesting that they apply for financial assistance through the Human Relations Commission (HRC) 1990-91 Grants-In-Aid (GIA) process, which they did. As the HRC received requests for more than double the $75, 000 budgeted, they determined that their funding recommendations would have to be prioritized according to demonstrated need. Since the Alano Club had requested GIA funds primarily to offset the parking assessment, the HRC did not recommend funding for this agency. DISCUSSION: During the past year all property owners in the Railroad Square Parking Service Area have been paying their parking fees for all of their required spaces. This includes the Del Monte Cafe, which is located across Santa Barbara Street, Railroad Square Office Complex and the Park Hotel. The Union Station Grill has also been paying but it has not been operational due to a fire. S-/ f� city of sar,, aIs OBIspo p WInMe COUNCIL AGENDA REPORT Council Agenda Report Page Two The concept of giving double credit to the Alano Club for its off-site parking is beneficial to the them, but not equitable to other property owners. The Railroad Square Office Bldg. and Park Hotel share a 20 space off-site lot. And the Del Monte Cafe's spaces are also off-site from the main parking area. If the double credit is to continue for the Alano Club, then other property owners should also receive the same benefit. Even though Alano Club is non-profit, they own retail property which is part of Railroad Square and it does generate revenue just like other businesses in the area. Based on this fact and the issue of equality, the double credit for its off-site spaces should be discontinued. The Alano Club has been contacted about the December 4 meeting and staff's recommendation to discontinue the double credit option. ALTERNATIVES: Option A - Discontinue the double credit for Alano Club. (Staff recommendation) . Option B - Continue the double credit for Alano Club. Option C - Offer double credit for all property owners with off- site spaces. FISCAL IMPACT: Continuing the double credit option for Alano Club continues to reduce the parking revenue from the Railroad Square Parking Service Area. It also establishes special provisions that should be applied uniformly, so all property owners receive the same benefit. If this option is implemented the parking revenue would beisubstantially reduced. The annual loss of revenue ranges from $840 if Alano Club continues alone, to $71.76 if all eligible property owners were given double credit. Any loss of revenue is critical in light of the parking program's current cash flow problem. OTHER DEPARTMENT CONCURRENCES: The Community Development Department concurs with staff that the Alano Club should pay the established rate for all spaces and make no special distinction for off-site spaces. CONSEQUENCES OF NOT TAKING RECOMMENDED ACTION: Maintaining the lower rate for Alano Club will continue to reduce parking funds. It will also allow other property owners to request the same privilege. Attachment: November 1989 Staff Report Minutes of November 14, 1989 City Council meeting u '� M NG GATE; city o f san tuts osispo �'U / � 19 COUNCIL AGENDA REPORT MEM NUMBER: FROM: .Y David F. Romero Wayne A. Peter on Prepared by: Keith Opalewski Public Works Director City Engin Parking Program Coordinator SUBJECT: Consideration of Waiver/Modification of Parking User Fees for Alano Club Property in Railroad Square CAO RECOMMENDATION: By motion, adopt policy that all users of parking spaces located within the Railroad Square Parking Service Area must pay the rate established in the approved lease agreement. BACKGROUND: At its meeting of September 19, 1989, Council adopted Resolution No. 6693 (Exhibit A) establishing a parking user fee for property owners in the Railroad Square Parking Service Area. Prior to the final vote by Council a public hearing was held to hear comments from people who would be affected by the user fees. A representative from the Alano Club conveyed that they are a non-profit organization and the proposed fee would pose a financial hardship. Council directed Alano Club to discuss the matter with their Board of Directors and propose a fee that they could pay. The September 28, 1989 letter (Exhibit B) to Mayor Dunin and Council states that the Alano Club could possibly pay $50 per month for their required parking spaces. DISCUSSION: The adoption of Resolution No. 6693 was the culmination of years of work by staff members, which included numerous meetings with property owners who would be affected by the parking program. It should be noted that the bulk of discussions centered around the monthly rate for parking spaces ($72.00 final rate). All property owners including the Alano Club signed Fanning applications (Exhibit C) confirming their support for the parking program. In fact, the establishment of a joint use parking program benefited all users by reducing the overall parking requirments from 176 required to the 130 spaces provided. The latter was contingent upon the premise that since it was a joint use parking area, all property owners would participate in the program. . When the issue came before the Council only the Alano Club lobbied for a reduced rate based on the assumption that their services benefited the community and they were non-profit. Although the Alana Club may enjoy a non-profit tax exempt status for their community service, the property owned by them also includes two retail businesses. the retail businesses jointly have a five space parking requirement, which added to Alano's 20 space requirement converts to 25 spaces to be provided. Common parking provided in the parking lot off Church Street also is owned by the Alano Club. The total parking spaces in the lot is six, thereby reducing the total required spaces for the property to 19. The retail businesses are a source of revenue for the Alano Club. According to BIA figures the average cost for retail space in downtown is S1.56 per square foot. Thus, the 1428 square feet of space represents potential monthly income of $2142. The required monthly parking fee ($228) is only slightly more than 10% of their monthly rental income. �� S'3 City Of Safi ells 061Sp0 i - Nii COUNCIL AGENDA REPORT Council Agenda Report Page Two Contrary to Alano Club's claim of not being a normal member of the Railroad Square Association, the inclusion of retail businesses and the location of the club within the Railroad Square Parking Service Area suggests that they should pay the fair fee for Railroad Square parking spaces. ALTERNATIVES: Given the non-profit nature of the Alano Club the following options are possible to fulfill their parking requirements: Option A - Full market value of $228 per month for 19 required spaces. (Staff recommendation) Option B - Give additional (double) credit for the six off-site spaces on Church Street and reduce their parking required to 13 spaces ($158 monthly). Note: No other businesses receive double credit. Option C - Accept Alano Club's proposal of $50 per month which equates to a 4 space requirement. FISCAL.IMPACT: Accepting any other option besides full market value will reduce Railroad Square parking revenue by a range of $840 to $2136 annually. I OTHER DEPARTMENT COMMENTS: Community Development concurs with staff that Alano Club should pay full market value for their parking. CONSEQUENCES OF NOT TAKING RECOMMENDED ACTION: Accepting a lower monthly parking fee for Alano Club will reduce the funding for the overall project. Furthermore, this action would set a precedent for other retail users to request a review and possible reduction in their parking requirement. RECOMMENDATION: Adopt policy that all users of parking spaces established by the joint use parking program pay full market value set forth in the lease agreement. ACTION TAKEN: _ Approved as recommended as modified Denied Continued Vote: ' T� 11111lll�iljji city of san Luis osispo COUNCIL AGENDA REPORT Council Agenda Report Page Three APPROVED: City A inistrative Officer Director of Finance V City Attorn v Attachments: i Resolution No. 6693 Memorandum from Alano Club Board of Directors Planning Application I s RESOLUTION NO. (1989 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING A PARKING USER FEE FOR SERVICE AREA WHEREAS , the City of San Luis Obispo has improved the quality of transportation and parking facilities in the area commonly }mown as Railroad Square; and WHEREAS, the improvements have been completed and local businesses and other users are deriving benefit from the project; and r.ERE�,S , the City Council approved a parking program for the railroad Square Parking Service Area which requires payment of parking fees if property owners cannot provide on-site parking ; "L'CDETa C ..h= Clt.. has agreed to operate and maintain the ,parking facilities and part of the costs for development and naintainance are to be recovered from private participation in a user fee program, and Council has heard public comment on this natter; NO-" , THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN LUIS OBISPO THE FOLLOWING: Section 1 . All property owners maintaining businesses that use the area served by Railroad Square parking facilities shall be required to enter into a lease with the City, and that said lease shall require the payment of $:2 per space per month for the term of the lease. Section 2 . As set forth in the lease agreement the City retains the right to implement parking control measures in all or part of the Railroad Square parking area. Section 3 . The City shall monitor the parking demand in the area and initiate improvements or changes as deemed necessary and which are mutually agreed upon by property owners. Section 4 . The City shall continue to maintain, and if possible, expand the parking facilities through the use or acquisition of additional railroad property. - � � Resolution No. bt.)93 ( 1989 Series) Page 2 Copies of this resolution shall be made available in the City Clerk's Office. On motion of Mayor Dunin seconded by Councilwom. ai-, ?inard and on the following roll call -Vote: - - AYES : Xavor Dunin, Councilmem.bers Pir.,-. C . R cps , ?eiss and fettle NOES : None ABSENT.• None the foregoing resolution was passed and adopted this 1 Q dav of ;e7-ember 1989 4 Wayor Roll. L"Unin O ATTEST: I U tff,k Voges APPROVE CITY �,A MINISTFiC E OFFICER 7"INANCE DIRECTOR CITY-. ATTORY COMMUNITY bvvti;bPMENT DIRECTOR OPUBLIC WORKS DIRECTOR Alano Club, Inc . 1814 Osos St. San Luis Obi s,,c, CA -- To mon uuni❑ [ ate September- a_vor, San Luis Obispo Copies: W. Petersen R. Pinard P. Ra ppa J. Reiss A. Settle From bud B. Secretary, 6 �) Ro ams Alano Club Board of Directors 9.OFA Mujs K% Subject Railroad Square Parking Lease Agreement Ycu t•;ill recall that the Railroad Square Parkire Lease Agreement was discussed at the Council meeting of September 19, 1989. At that time I presented certain facts about the Alano Club of San Luis Obispo. I explained that we are a non-profit ernaniza.tion of sober alcoholics. We acquired the property in 1961 from Earl Bernard who made it available to us on an interest free loan, providing that it continue to serve recovering alcoholics. I also noted that while the Club is a distinct entity from Alcoholics Anonymous, it is the facility used by the Pioneer Group of AA and that 75 per cent of all AA meetings in San Luis Obispo use our facilities. In addition, the Club is a safe have for its members 7 days a week and we sponsor sober events for the entire recovery community throughout the year. I indicated to the Council that for these reasons we were not a normal member of the Railroad Square Association and that we simply could not afford to pay the assessment developed by city staff. At that point you, ,Ir.; f'tayor, asked if we could afford to pay an.y pert of the assessment. I replied that I did not know but that I would raise the. issue with the Board of Directors at our next reeting. The resolution in question then passed the Council with the understanding that we v:ould apply for a waiver of the parking fees referred to in the draft lease agreement. The Alano Club Board of Directors ret on Secte-ber 27, 1989. After discussion and consultation with Club ManagerPete FetEr-en , we determined that :•re could probably manage to pay 550. 00 per ::onth. Ve are unclear as to the procedures that sh.culd be followed in order to obtain a formal waiver or modification o` the financial terms contained in the Railroad Square Parking Lease Acree-:ent. Your advise on this matter would be appreciated. e g OCT �!'Y CLERK . . C.I P', lip sA1 IU1--i O 11s�)( PLANNING APPLICAI ION C . •, . . .- UIO/.n -;nP,,,'.IiLnl NU E+• ,r .• .—. __.r' _._.—IL . . _.�__—_ �C Al Use Detmit to allow a uerkinq mducticr. (11E na.:reu, 130 soAces provided: fir a ,point use parlin0 progral' for Railroad S^uarr•I .Ind 'n •.11nW ,ffsi•o iarki•;. r. as.... 1820 nsns St. •.x,It--X! D...�- Vaualm% Railroad Square area rY Drscl'Won La_ –— -- . wac. _ U&: Asxmsw t Dycw w~3-355-3;,.l:�SZ S _ wau"tanv6 v D""w APPUCANT/REPRE3Eif AME, I u" ,womm mm cw PNOPEIIfY OMNEIUMJTMDRIZED AGENT' .... ..y .-•.�M saw".an and"manaeira fflsg W Tre rnMnlylC D", ca"Wated aapbratr aw caft r-10.Il I.•I •wD n as to 1 .ITr Ingnl ro aooea+who,I r11 .DD• er W aoDra.N _ 9,25186 �MwebnNrorwegr ":y... - �, has ..T_, :�• _.. ui'p.•. lay/S' f►n-�DMt"sv:wrsepr.'�'.••' .'+Yw�'*Mt'� C i Council Agenda November 14, 1caq _ BUSINESS ITEMS — 4. PARKING USER FEES WAIVER (ROMERO/554 - 20 min. ) Consideration of waiver/modification of parking user fees for the Alanc Club property in Railroad Square. RECOMMENDATION: By motion, adopt policy that all users of parking spaces located within the Railroad Square Parking Service area must pay the rate established in the approved lease agreement. RomeAo** FiNAL ACTION: POZi.ey adopted .that at i "eu oparking 6pace,6 i'ocated tL;ith,in Voges** the Rai&,oad Square Parking aenvice area mws.t pay the nate mtabti,shed �n ti7te Mase agreement. AL'arnc Chub tc• b2 y.cvct: e;:e-y' c ec-• t 6oA 6 o66-6 to apaeea on ChuAeh St. and reduced paAkin to 7 ' y c 3 5pacca. _. CIRCULATION ELEMENT - PHASE II (ROSSI/462 - 30 min. ) ($7588/moan. , r i'�LCY -iC come back to Cou;lcit Lc th,L1'. Consideration of approving an agreement with DKS Associates to complete Phase II of the circulation studies. RECOMMENDATION: Adopt resolution approving an agreement between the City and DKS Associates to complete specified ciruculation studies and authorize the mayor to execute agreement as recommended. Roaa L** FINAL ACTION Rebo.Zuti.on No. 6718 adopted appnov.Lng an agreement between the Vogea* City and. DKS Aaaoc ateb to complete 6peciiied eikeulation atudiu and Mayon au,tho, i.zed to execute agreement as amended by Counc,i,Z. th,i,6 evening. Counc i.r" nece,ive a.tatt6 %epo4t6 on m,i.ruatee by the Tranbponttati.on Technical Adv.i6ony 6. WATER ALLOCATION INFORMATION (ROSSI/517 - 30 min. ) Committee (TAC) . Consideration of information on A) allocation of new sources; B) retrofit ratio; and C) demand from exempt projects. RECOMMENDATION: Review information and direct staff as desired. Roaa.i* FINAL ACTION: Stas) ditected to bring back ,the WateA and Wa,6tewateA Management Ef-ement and Attoeati.on Regutationa with amendmenth and optiowe as di,6c",sed thi,a evening. 7. PERFORMING ARTS CENTER AGREEMENT (DUNN/851) Consideration of an agreement ;y;Zth:- the City, Cal Poly University and the Foundation for the Performing Arts for construction of a Performing Arts Center on the Cal Poly Campus. RECOMMENDATION: Adopt resolution approving agreement as recommended. Dunn* FINAL ACTION: Agreement approved as recommended. Page 5 of 6 - �S-!3 52 City Council Minutes Page 5 Tuesday, November 14, 1989 - 7:00 p.m. Robert Holley, appellant, expressed concern that this item could set a precedent for allowing similar applications which could cause a negative visual and litter impact downtown, and also constitute unfair competition due to the limited overhead needed for that kind of operation. John Bushnell, representing McLintock's, urged that if Council approves this application, that an ordinance or condition be initiated limiting the number of such applications. Becky Hoffman, SLo Brewing, .supported the hot dog cart, and stated that it could be a visual attraction downtown. Councilwoman Raofla expressed concern that if this or .other similar applications were approved, that it would be appropriate to require a business license and downtown Business Improvement Area fees. She recommended that the City develop guidelines as to how to best use vacant property in the downtown. After discussion, moved by Settle/Rapp (5-0) to adopt Resolution No. 6717 denying the appeal and upholding the Planning Commission action with an amendment to condition No. 14, to provide that no more than one cart be allowed on this lot. OUpon general consensus Council requestet that a subcommittee be formed consisting of one BIA member and one Chamber of Commerce member to report back on proposed guidelines for allowing tem racy uses on vacant land in the downtown. This is recommended to come tack when Council reviews the City's Downtown Plan. 4. PARKING USER FEES WAIVER (File No. 554) Council considered a waiver/modification of parking user fees for the Alano Club property in Railroad Square. Dave Romero, Public Works Director, reviewed the agenda report with the. recommendation that Council adopt a policy that all users of parking spaces located within the Railroad Square parking service area pay the rate established in the approved lease agreement. He also submitted three alternatives if Council chose to provide some relief to the non-profit Alano Club. No one spoke for or against the proposal. After brief discussion, moved by Pinard/Ranna (2-3, Counc 'lmembere Reiss, Settle and Dunin voting no) to adopt the policy that all users of parking spaces located within the Railroad Square Parking service area pay the established rate. Motion failed. Moved by Dunin/Settle (2-3, Councilmembers Rappa, Reiss and Pinard voting no) to support staff's recommended option B, to provide a additional or double credit for the six offsite spaces on Church Street, and reduce the Alano City Cc nci- Minutes Page 6 - Tuesday, November 14, 1989 - 7:00 p.m. Clubs parking required to 13 spaces at a cost of $158.00 monthly. Motion failed. Then moved by Settle/Dunia (3-2, Councilmembers Pinard and Rappa voting no) to provide the Alano Club a one-year additional double credit for six offsite spaces on Church Street and reduce the parking to 13 spaces for $158.00 a month. Motion carried. Moved by RIP-RA Dunin (5-0) to adopt the policy that all users of parking spaces located within the Railroad Square Parking service area pay the rate established in the approved lease agreement, with policy to come back to Council within one year. Motion carried unanimously. 9:00 p.m. , aAX2 Dunin declared a recess; 9:15 p.m. , City Council reconvened, all Councilmembers present. 5. CIRCULATION ELEMENT - PHASE II (F le No. 462) Council considered approval of an agreement with DKS Associates to complete Phase II of the circulation studies. Terry Sanville, Principal Planner, revi wed the agenda report with the recommendation Council adopt a resoluti n approving the agreement with DKS Associates to complete specified circul ktion studies and authorize the Mayor to execute the agreement. After brief discussion, moved by Ra a les (5-0) to adopt Resolution No. 6718 to approve an agreement between the City and DKS Associates to complete specified circulation studies and autho ize the Mayor to execute the agreement as amended by Council this evening. Upon general consensus, Council requested that it receive status reports or minutes by the Transportation Technical Advisory Committee (TAC) . 6. WATER ALLOCATION INFORMATION (File No. 517) Council reviewed a report submitted by ndy Rossi, Interim Community Development Director, concerning allocaion of A) new water sources; 8) retrofit ratio; and C) demand from exem t projects. Randy Rossi, Interim Community Developm nt Director, reviewed the agenda report with the recommendation that dur ng review of the General Plan Water and Wastewater Management Element and Allocation Regulations, that staff favored A) allocating all new sources to regaining a balance between normal use and safe yield; 8) keeping the 2-1 etrofit ratio; C) keeping the current categories of exempt projects. If theouncil is concerned about exempt projects, staff suggests having only th se non-residential additions that are up to 1000 square feet, or 50% of exist ng floor area, whichever is less, be exempt; and D) effective.July, 1990 thr ugh June 1991, and following years, having water use increase a maximum of Ine percent per year, regardless of the AGENDA r) ;W F ITE 1,10 aro Club , Inc . !O14 Osos St. Sar Luis Obispo,. CA To Mon Dunin Date N'overiber 9, 19')9 I'layor, San Luis Obispo ipies Finance Department P. Petersen From Sud BE . Secretary, L4� � 1no Club 'D-oard Directors c" Diors I L SubJect Railroad Square Parking Lease Arreement :'c.j ma- retail that .-irote you on September 28 1089 ! cor).y encliosed; rp-,:ar-ding the ciscuss,lon of the Railroad Square Parkin:.-. Leasc =,qjree- el, that occurred during the Citl. Council meeting -or, SeDL nber 19C 9. In that memorandum, I asked for a statement of procedures to O enable us to obtain the waiver/modification of the teras of the drafir, lease aareemen- that was discussed that evening. I realize that there are many pressing issues that have to be dealt with, but since I last wrote to you we have recieved Invoice .'Io. 7023 from the City of San Luis Obispo pignore invoice ,o requesting payment of the amount specified in the -- . draft aareenenWhile we are reluctant to ithe i ' i I ce , we ,eel we can not take any action until we obtain some clarifications from vou regarding the intent of the Council on September ' 9 , 1989. !."e look forward to hearing from you and hope to get thi issue settled, and behind us at an early date. RECEIVED NOV 1 A CITY '-'LZEP!- SAN -:A 3 Aland (I III) . 11114 Wcn Sail Luis Uh i spo, 0 1: i1 10 Ija Le sept(2111hilt, 714, Sail Luis Ohir,i Lopies Petersen P Pinard P Ra ppa J Pei ss From U. Secretary, A. Settle t- lano Club Board of Directors C ubjec i iii 11 rood S(,ua re P2 1'k i ri:� L'(: s rec a I 'i tha t the Ra i I t-n-i 4 e it t l-ja s d t a I,l:i Ila Lease An reem-, sc:1ss"2d at thQ Council i;seetiml Uf 19 , 19801 . At that t i p re;e ri te d certain facts about , h.r, Alaric. Club of San Luis Obispo, e,.:,12iiied that we area non-profit(_ ' t 0 1-111-�I)i 7-1 t i 0 r 1 of s 0 1)P I, alcoholics. property Pe r ty i n 196 1 fl-c'iii Earl 1'ni-nard who made it available to us a �liired the M I-,e on r: interest free 1 o art , pro v i d i 11 o that i*t continue to serve recovering alcoiolics. I also noted that while the Club i s a distinct entity f ro!;i Alcoholics Anonymous, it is the facility used by the Pioneer Group of A" and that 75 per cent of all AA meetings in San Luis Obispo use our faci'liti (Ir Ir, additioll, the Club is a safe have for its well1hers 7 days a week arid sponsor sober events for the eiiti !-e recnv�,ry crimmiumity t I hrouyhout the VUdT . I indicated to the Council !;ie;,1,Ller c.�f the Railroad Square fPt- tl" t-r-,'IsOr's lye were nota normal afford -e AsIcciatioii and that we simply could not 1 Ord to pay the assessment d3 v?I �PI e d 11ticity staff. At that point you, N,-ycr, asked if we could afford tr, ['a v a It port of the assessvitent. I replied that I did not kno,,,; but that a t 1 ;could raise the issue with the R• � rd of Directors at our next meetino. The resolution in question then passed the Council with the understanding that we would apply for a waiver of the parking fees referred to in the draft lease agreement. The Alano Club Board of Directors :let on September 27, 1989 . After' di ­. ' !r. I i and consultation with Club Manatler Pet,.! 1'etersen , we determined that we could probably manage to pay S50. (?'.! per !;imlth. I..'e are unclear as to the procedurf,s t!!,It choljld be followed in order to 05tain a formal waiver- or modifiraf ift" of t-IW firlillicial terms contaitip(I it! L! i'a i I ro ad Square Parking Your advise on this i;jjtt,,j he allf)reciated.