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HomeMy WebLinkAbout1996-05-06 City Council (14)City of Palo Alto C ty Manager’s Report 8 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: POLICE AGENDA DATE: May 6, 1996 CMR:244:96 SUBJECT:Approval of Budget Amendment Ordinance Amending the 1995-96 Municipal Fee Schedule Relative to Attendant Parking Lot Fees REQUEST In December 1995, after Council approval an attendant parking lot operation was implemented in Lot S. Council approved a one year trial period as a part of the Comprehensive Downtown Parking Plan. Since the opening of the lot, staff and members of the Chamber of Commerce Parking Committee have been monitoring its usage and have completed a four month evaluation. Based upon the results of the evaluation and the conclusion that the lot is underutifized, and after discussions about alternatives, a recommendation to change the current fee structure has been developed. This report, therefore, requests Council approval of a Budget Amendment Ordinance to accomplish the change. RECOMMENDATIONS Staff recommends that Council approve the attached Budget Amendment Ordinance that would change the 1995-96 fees for use of the attendant lot. Currently, the fees are as follows: 0-2 hours; $1, 2-3 hours; $2, 3-4 hours; $4, 4-10 hours: $8. Seniors who use the services of La Comida and the Senior Coordinating Council (SCC) may park free for two hours with a validation from the SCC. Staff recommends that the fees be changed to provide flee parking for the first hour and a $2 fee for 1-3 hours. The fees for subsequent hours, together with the free two hour parking for seniors, would remain unchanged. POLICY IMPLICATIONS The only change to existing policy associated with the attendant lot will be to allow all users free parking for the first hour. CMR:244:96 Page 1 of 5 EXECUTIVE SUMMARY In September 1995, Council authorized the Mayor to execute an agreement with National Parking Corporation for the operation of the attendant parking lot at Lot S. This authorization occurred after Council approved a one year trial period for an attendant lot as part of the Comprehensive Downtown Parking Plan. The intent of the attendant lot was to provide for longer term parking at a minimal cost and to increase the parking capability at that location. The fees for use of the lot were included in the current Municipal Fee Schedule. At the time of Council approval, staff indicated that an evaluation would be completed at the end of the year’s trial period. However, staff and members of the Chamber’s Parking Committee concur with feedback, that has been received from downtown merchants and members of the public about the underutilization of the lot. As a result, a four month evaluation was completed and a summary of that evaluation is provided in this report. Based upon the analysis of the evaluation, the consensus of opinion was that a change is needed to increase the use of the lot. In discussions with the Parking Committee, several alternatives were considered. Information regarding those options are also provided in this report. Evaluation Summary_ The attendant lot began operation on December 4, 1995. Since then, a total of 11,545 people have used the lot. Attachment A provides a breakdown by month and by time periods of use. The data clearly indicate that the greater majority, of people who have used the lot, has done so for two hours or less. It is interesting to note, however, that while over the first three months of operation there has been an overall decrease in the number of non-validated users, for March, the numbers are increasing again. Additionally, the number of long-term (i.e., 3 hours or more) users has steadily increased over the four months, although long-term users still represent only about five percent of parkers. Since the middle of March, the number of people who have used the lot for one hour or less has also been tracked. This data indicate 30 percent of the people use the lot for one hour. It should be noted, however, that one quarter of those people used the lot for ten minutes or less, and they have not been charged. As part of the evaluation, feedback from merchants and citizens has also been received. The response has been mixed. Some people have objected to having to "pay" to park in the downtown area. Others, especially some merchants, have indicated that the availability of long- term parldng for a minimal cost, is very beneficial. Information from the Senior Coordinating Council representatives has been that there have been no problems from the perspective of their staff and constituency, other than work associated with the validation process. CMR:244:96 Page 2 of 5 Alternatives Based upon the conclusion that the lot has not been used to its fifll capacity and on the evaluation information, staff and the Parking Committee considered several alternatives. The alternatives were considered in the context of increasing the overall use of the lot. The following is a summary of the alternatives: Permit/Attendant Lot Combination - The idea of maintaining a portion of the lot as attendant operated and converting another portion to permit spaces was discussed. This idea was dismissed due to the belief that this mixture would be very confusing to users. Additionally, due to the lot’s centralized location within the downtown area, a considerable amount of opposition, to the elimination of general parking spaces for permit parking, was anticipated. Expanded Validation - The altemative of expanding the validation process to businesses was discussed. Currently, the only validation that occurs is associated with the SCC and users of their services. While some interest for an expanded program was expressed, there was concern on the part of some merchants that unless all businesses participated, the public would visit their establishments only for the purpose of receiving validations. The general consensus was that in the future, the implementation of such a program would probably be advantageous; but until additional experience with the operation of the lot has been achieved, it would, be better to wait before attempting an expanded program. Return Lot to General Usage - The conversion of the lot back to its original status of a two-hour, free parking lot was also considered. The overwhelming opinion about this idea was that four months was not long enough to obtain a true picture of the lot’s operation and that another alternative should at least be tried before abandoning the concept. Provide First Hour Free Parking - The altemative that received the most support, and is being recommended, was to provide everyone who used the lot the first hour of parking without charge. The thought behind this idea was that people may be more apt to use the lot for longer periods, if their first hour were free. The belief that this change, together with a significant publicity campaign to increase downtown visitor information about the lot and some additional-signage directing people to the lot, will quite probably increase use. In order to minimize the City subsidy of the lot operation, the recommendation also includes a slight change in the fee structure so that two dollars would be charged for use from one to CMR:244:96 Page 3 of 5 three hours. Pending Council approval of this recommendation, staff would continue to monitor usage and return to Council in another four months with a subsequent evaluation. During this four month period, staff and the Parking Committee will work on options that would result in the lot becoming a cost-recovery operation. These options will include a paid validation program, a potential increase in hourly rates, and/or a vendor business plan approach. It should be noted that this recommendation would not change the current agreement for users of the Senior Coordinating Council services in that they would continue to receive two hours of free parking. FISCAL IMPACT The current agreement with the vendor to operate the attendant lot for one year is $62,670. The original estimated net revenue projection associated with the lot was $103,000. Attachment B indicates that based upon the first four months of operation, only $10,390 in revenue has been received, while $22,705 has been paid to the vendor. Projected at this level over a year’s period, the gross revenue would be approximately $31,170. Staff estimates the proposed change in the fee schedule will result in an additional 10 percent reduction ($3,000) in revenue, or gross revenue of about $28,170 when based on actual-to-date usage. This means that the City would subsidize the operation of the lot at an approximate armual cost of over $34,500. ($28,170 less costs of $62,670) Keeping in mind that the intent of the proposed change in fee structure is to increase usage, staff is hopeful that revenue would be received so as to reduce the City’s subsidy. The revenues and expenditures for this program come from the parking permit fund. It is anticipated that a permit fee increase will be required in 1997-98 to cover the expenses of the parking district, including the attendant lot subsidy. ENVIRONMENTAL ASSESSMENT This project is considered exempt from environmental review. ATTACHMENTS Attachment A - Non-Validated User Information by Month Attachment B Ordinance PREPARED BY: Lynne Johnson, Assistant Police Chief CMR:244:96 Page 4 of 5 DEPARTMENT HEAD REVIEW: CITY MANAGER APPROVAL: Chief G, City CC:Susan Frank, Chamber of Commerce Kathi Gwyrm, Senior Coordinating Council Barbara Gross, Downtown Merchants CMR:244:96 Page 5 of 5 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE MI!NICIPAL FEE SCHEDULE FOR THE FISCAL YEAR 1995-96 BUDGET TO AUTHORIZE FREE PARKING FOR THE FIRST HOUR AT ATTENDANT LOTS. WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 19, 1995 did adopt a budget for fiscal year 1995-96; which included the Municipal Fee Schedule; and WHEREAS, the Municipal Fee Schedule establishes a fee schedule for parking in attendant lots; and WHEREAS, the Municipal Fee Schedule must be amended to provide the first hour of parking free at all attendant lots; and WHEREAS, this change attempts to address some of the parking space issues in the downtown area. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The 1995-96 Municipal Fee Schedule, adopted as part of the 1995-96 budget, is hereby amended as shown on Exhibit "A", being page 60 of the Municipal Fee Schedule, relative to Police Department fees. Exhibit "A" is attached hereto and incorporated herein by reference. SECTION 2. reserves. This budget amendment will have no impact on SECTION 4. As specified in Section 2.28.080(h) of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 5. The Council of the City of Palo Alto hereby finds that the enactment of this ordinance is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 6. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Deputy City Administrative Department Manager, Services Police Chief