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CC - (1) Adoption of a Resolution Establishing Parking Meter Fees, the Time Period Covered by Such Fees, the Time of Operation for the Parking Meter Locations (Including the Extension of Parking Meter Operations to 8 pm in Downtown) and Rescinding Resolution Number 2015-R013C; (2) Immediately Suspend the Valet Parking Fees for Businesses Greater than 1500 Square Feet and Impose the Valet Parking Fees Currently Established for Businesses Less than 1500 Square Feet on all Businesses Regardless of Size; and (3) Direct the City Manager to Update the Citywide Fee Schedule During the Fiscal Year 2016/2017 Budget Process to Reflect such Changes in Valet Parking Fees.
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Contact Person/Dept: Gabe Garcia / Public Works
Phone Number: (310) 253-5633
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (02/03/16); (E-Mail) Downtown Business Association (02/03/16); (E-Mail) Chamber of Commerce (02/03/16).
Department Approval: Charles D. Herbertson, Public Works Director/City
Engineer (02/02/16)
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RECOMMENDATION
Staff recommends the City Council (1) adopt a resolution establishing parking meter fees, the time period covered by such fees, the time of operation for the parking meter locations (including the extension of parking meter operations to 8 pm in Downtown); (2) rescind Resolution No. 2015-R013C; (3) immediately suspend the Valet Parking Fees for businesses greater than 1500 square feet and impose the Valet Parking Fees currently established for businesses less than 1500 square feet on all businesses regardless of size; and (4) direct the City Manager to update the Citywide Fee Schedule during the 2016-2017 budget process to reflect such changes in Valet Parking Fees.
BACKGROUND
On January 25, 2016, staff presented an update to the City Council regarding the 2010 Walker Downtown Parking Study (2010 Parking Study) with recommendations from the City’s consultant. The City Council directed staff to proceed pursuing the implementation of the recommendations to extend the parking meters’ hours of operation in the Downtown area to 8 pm.
Also this report will present the City Council Parking and Traffic Subcommittee’s recommendation to the immediately suspend the Valet Parking Fees for businesses greater than 1500 square feet and impose the Valet Parking Fees currently established for businesses less than 1500 square feet on all businesses regardless of size. If the City Council approves the Subcommittee’s recommendation, then the City Manager will update the Citywide Fee Schedule during the Fiscal Year 2016/2017 budget process to reflect such changes in Valet Parking Fees.
DISCUSSION
The recommendation to extend the hours of parking meter operations in the Downtown area was proposed in the 2010 Parking Study. The recommendations were reviewed by the City Council in late 2011. In January of 2012, the City Council authorized the extension of parking meter hours of operation to 11 pm, daily, in the Downtown area. Subsequently, in April of 2012, after concerns were expressed by the Downtown Business Association (DBA) and in light of a difficult economic environment due to the “Great Recession,” the City Council rescinded the extended hours and returned them to Monday through Saturday, 8 am to 6 pm.
In 2015, in anticipation of the update to the 2010 Parking Study, staff and representatives of the DBA collaboratively discussed the topic of extended parking meters’ hours of operation to 8 pm (excluding Sunday enforcement) in the Downtown area. The DBA board voted to support the extension of the hours of operation to 8 pm, from Monday through Saturday (and exclude Sunday enforcement). The DBA’s board provided a letter to staff indicating their support for the extension.
Staff recommends that the City Council adopt the proposed resolution to extend the meter hours of operation (and enforcement) in the Downtown area. The proposed new hours of operation, if adopted, would be 8 am to 8 pm, Monday through Saturday. The only change in the resolution is the extension of hours of operation in the Downtown area - there are no changes to any of the existing parking meter rates Citywide, nor to the hours of operation outside of Downtown.
According to the Police Department, existing staffing resources are adequate to enforce the additional hours proposed.
Suspension of Certain Valet Parking Fees
The Valet Parking Program has two sets of fees, adopted by Resolution 2013-R034, in Exhibit H-1, page 54 and 55 (attached for your reference): One is intended for businesses under 1,500 square feet, and the other for businesses greater than 1,500 square feet. The fees are the following:
Description of Valet Parking Fees Greater than Less than
1500 Sq. Ft. 1,500 Sq. Ft.
Application Fee $168.00 per hour $168.00
(For the initial sponsor application) (Minimum 3 hours)
Weekly Fees
(Payable in advance on a monthly basis)
Each valet station of up to 100’ long $102.00 $20.00
For an additional 20’ beyond 100’ $26.00 $20.00
For an additional 40’ beyond 100’ $61.00 $25.00
Late Fee 10% of monthly 10% of monthly
(If weekly fee is paid after the 5th fee, per day late, fee, per day late,
of the month) not to exceed 50% not to exceed 50%
of monthly fee of monthly fee
Biannual Permit Fee $306.00 $306.00
Modification Fee $168.00 per hour $168.00 per hour
(For study of any requested (minimum 3 hours)
Modifications and its cost/benefit)
Minimum 3 hours
Wayfinding Sign Fee $55.00 per sign $55.00 per sign
Operating without a Permit 2x the Application 2X the Non-Small
fee, plus first Business Participant
Biannual Permit Application fee plus
Fee first Biannual Permit
Fee
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The Valet Parking Program was established to benefit patrons of Downtown businesses, and has a universal valet parking service (drop off and pickup individual vehicles at any station), which parks approximately 30,000 vehicles per year currently from four valet stations. After managing the Valet Parking Program since 2009, staff has observed the Program also does the following: (1) prevents circling around Downtown blocks, (2) prevents double-parking to wait for parking spaces to be vacated by others, (3) relieves congestion, and (4) contributes to the use of unutilized or underutilized parking resources. Additionally, through staff’s relationship with the DBA, staff became aware of the challenging economics of paying for the valet parking service operations through voluntary DBA membership dues.
To encourage the benefits afforded by the universal valet parking service and to support its economic sustainability and the viability of the operations and, therefore, the longevity and value-added benefits of the valet parking service, staff recommends the City Council immediately suspend and rescind the fees, under the column “Greater than 1,500 Square Feet” in the previous table, and contained in Exhibit H-1 of Resolution No. 2013-R034 and to impose the fees under column “Less than 1,500 Square Feet” on all businesses regardless of size. If the City Council approves the suspension of the higher set of fees, staff recommends it direct the City Manager to update the Citywide Fee Resolution during the Fiscal Year 2016/2017 budget process to reflect such changes to the Valet Parking Fees. These valet parking fees would apply to all Citywide Valet Parking Program participants.
FISCAL ANALYSIS
Should the City Council extend the hours of parking meter operations to 8 pm in the 223 metered parking spaces in Downtown area identified by the 2010 Parking Study, staff anticipates that meter revenue Downtown would increase. According to the 2010 Parking Study findings, between the hours of 6 pm and 8 pm, the parking meter occupancy rates range from 94% to 98%. In estimating revenue projections, staff used a conservative occupancy of 80% between 6 pm and 8 pm, during 50 weeks of the year (2 weeks were conservatively discounted as holidays). At the present Downtown meter rate of $1.50 per hour, the parking meter revenue increase for the two additional hours six days per week is projected to be approximately $160,560 per year, or $13,380 per month. Additionally, an increase in revenue from parking infractions is anticipated, but staff does not have data to estimate the revenue generated thereform.
Should the City Council permanently suspend the higher of the two valet parking fees, staff estimates an annual revenue loss of approximately $16,924.80, or $1,410.40 per month. This represents a savings in operating expenses to the DBA, which will help to make the valet parking service in the Downtown area unsustainable and ensure its longevity.
ATTACHMENTS
1. Proposed Resolution including the extension to 8 pm Monday through Saturday for parking meter operations in Downtown
2. Exhibit H-1, pages 54 and 55 of Resolution 2013-R034
3. Letter from Downtown Business Association re Meter Rates
4. Letter from Downtown Business Association re Valet Parking
RECOMMENDED MOTION(S)
That the City Council:
1. Adopt a resolution establishing parking meter fees, the time period covered by such fees, the time of operation for the parking meter locations (including the extension of parking meter operations to 8 pm Monday through Saturday in Downtown) and rescinding Resolution No. 2015-R013C; and,
2. Immediately suspend the Valet Parking Program fees for businesses greater than 1500 square feet and impose the Valet Parking Fees currently established for businesses less than 1500 square feet on all businesses regardless of size; and,
3. Direct the City Manager to update the Citywide Fee Schedule during the 2016/2017 budget process to reflect such changes in Valet Parking Fees.