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HomeMy WebLinkAbout1996-09-09 City Council (12)City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: POLICE AGENDA DATE: September 9, 1996 CMR:384:96 SUBJECT:Attendant Parking Lot - Termination of the National Parking Corporation Agreement and Resolution Amending the Parking Zone Map Related to Off-Street Parking REQUEST This report requests that Council authorize staff to terminate the agreement with the National Parking Association for the operation of the attendant parking lot at Lot "S" and adopt the attached Resolution amending the parking zone map for the Downtown District, so that Lot "S" reverts to its original use as a free two-hour color zone lot. RECOMMENDATIONS Staff recommends that Council 1) authorize staff to terminate the agreement with the National Parking Corporation effective September 30, 1996, and 2) adopt the attached resolution which would change Lot "S" back to its original use as a free, two-hour color zone lot. POLICY IMPLICATIONS The operation of the attendant lot represented the first time that the City charged a fee for parking in a public lot, ’other than for permit parking. The intent of the lot was to provide additional long and short-term downtown parking through the use of existing spaces and the addition of valet parking in the same lot. The lot never came close to reaching its capacity, and it is not cost effective to keep the lot operational as a paid lot. EXECUTIVE SUMMARY On January 24, 1994, the City Council approved the elements of the Comprehensive Downtown Parking Plan that was jointly developed by the Chamber of Commerce and City staff. One element of the plan was the conversion of Lot S into an attendant lot for a one-year trial period. Lot S was chosen for this trial due to its central location within the downtown area. It had 86 parking spaces available for free two-hour parking. The conversion provided the potential for 125 spaces with an attendant on duty to double park cars. CMR:384:96 Page 1 of 4 On September 11, 1995, Council approved the agreement with the National Parking Corporation to manage the attendant lot. The lot commenced operation on December 5, 1995. Fifteen spaces were set aside for the Senior Center and all other spaces required a fee. Prior to and during the operation of the attendant lot, City staff met with representatives from the Chamber of Commerce, the Downtown Marketing Committee, merchants, and representatives from the Senior Coordinating Council in attempts to make the attendant lot a success. However, due in large part to the increase of the number of available parking spaces provided by the success of the color zone plan, the lot never came close to being used to full capacity. On most days, a number of unused spaces could be observed in the lot. Originally, the Council approved a fee structure as follows: 0-2 hours -$1 2-3 hours -$2 3-4 hours -$4 Over 4 hours - $8 Daily maximum-$8 On May 9, 1996, the Council approved staff’s recommendation to change the fee structure to provide the first hour of parking free. This change was requested in an effort to increase longer term use of the lot by providing the first hour at no cost. At that time, the Council also approved a change to the fee structure so that two dollars was charged for use from one to three hours (CMR:244:96). The Council also directed staff to comment on the desirability and/or impacts of providing the first two hours free instead of just the first hour. Since that time, staff has monitored the daily use of the lot. As demonstrated in Attachment A-l, about 51 percent of the people who have.used the lot have done so for one hour or less and only about 4 percent have used the lot for overflow hours. The theory that once people were parked in the lot, they would be more apt to continue parking for longer periods of time was proven not to be accurate. During this four month period, staff has observed an average use of four or more hours by only eight to ten vehicles per day. During this time, staff has also worked with the Chamber’s Parking Committee to determine whether the option of a paid validation program would be viable. In discussions with a number of merchants, it was very apparent there was little, if any, interest on their part to participate in any sort of validation program. Staff also considered the alternatives of increasing the hourly rates, pursuing a vendor business plan approach, and/or using an automated system for collecting fees. None of these concepts has been presented to Council for consideration due to the general reluctance of people to pay any amount for parking in the lot. CMR:384:96 Page 2 of 4 Based upon the under-utilization of the lot, together with the costs associated with its operation and the lack of other viable alternatives, staff believes it is in the City’s best interest to change Lot S back to its original two-hour free parking and to terminate the agreement with the National Parking Corporation, effective September 30, 1996. Pending Council approval of the resolution, fees for parking Lot S would not be charged effective September 11. Staff has discussed this recommendation with the Chamber’s Parking Committee and with a representative of the Senior Coordinating Council. They are in agreement with the recommendation. The effective termination date of September 30 has been selected in order to give the vendor time to make the necessary changes to end the operation. Council will recall that part of the approval for the trial of the attendant lot included a provision to meet the needs of users of the Senior Center. Fifteen spaces in the lot had been designated for use by Senior Center users for two hours of free parking with validation by the Senior Center. Under the proposed change back to two-hour free parking, the 25 spaces (the number designated for senior use prior to the attendant lot concept) in Lot C will still be retained for Senior Center users; and there will be a greater number of available two-hour free spaces in Lot S.for their use as well. It should be noted that visitors to the downtown area who desire to park for longer periods of time will still be able to park in the three-hour zones at the Civic Center and the Cowper/Webster Garages. Individuals and businesses can still purchase the $10 all-day parking permits, which may be bought up to six months in advance and dated On the day that they are to be used. Free daily permits are also available to those people who carpool. Private paid parking is also available at the 525 University Avenue garage in the 400 block of Cowper Street and at 440 Cowper Street. FISCAL IMPACT Staff originally projected that the net revenue associated with Lot S would be about $103,000 for one year. The current agreement with National Parking Corporation is for $62,670. Receipts through the month of July (eight months) totalled $21,357, while the cost for National Corporation’s management was $45,442. Based upon an entire year’s projections using this information, the City would subsidize the operation of the lot in the approximate amount of over $36,000 if the agreement was not terminated. Under the terms of the agreement with National Parking Corporation, the City is obligated to pay for National Corporation’s cost of the portable parking booth and parking computer for one year, after which time the City would technically own the equipment. However, while National CMR:384:96 Page 3 o1’ 4 Parking Colporation has no current use for the equipment, they have offered to waive the last three payments of $675 per month in return for their assuming possession of the property. ENVIRONMENTAL ASSESSMENT This project is categorically exempt from environmental review as it involves the use of existing facilities. ATTACHMENTS Attachment A - User Information by month Attachment B - Cost/Revenue by month Resolution CMR:244:96 PREPARED BY: DEPARTMENT HEAD REVIEW: Don Hartnett, Police Lieutenant Lynne Johnson, Assistant Police Chief CITY MANAGER.APPROVAL: Susan Frank, Chamber of Commerce Kathy Gwynn, Senior Coordinating Council Barbara Gross, Downtown Merchants Committee CM~:384:96 Page 4 of 4 REVENUE/PAYMENT ATTACHMENT B DEC 95 JAN 96 FEB 96 MAR 96 APR 96 MAY 96 JUNE 96 JULY 96 TOTAL ?rojected over 12 months ATTENDANT PARKING LOT TOTAL DEPOSIT $2,828 $2,273 $2,448 $2,841 $2,576 $2,993 $2,566 $2,832 $21,357 $32,035 VENDOR INVOICE $5,415 $5,683 $6,370 $5,237 $5,763 $5,613 $5,405 $5,956 $45,442 $68,163 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE PARKING RESTRICTIONS FOR THE DOWNTOWN DISTRICT OF PALO ALTO RELATING TO OFF-STREET ATTENDANT PARKING The City Council of the City of Palo Alto does~RESOLVE as follows: SECTION i. Recitals. (a) Resolution No. 7413, adopted November 14, 1994, established certain parking restrictions in the Downtown Business District; and, (b) Resolution No. 7554, adopted November 20, 1995, amended the parking restrictions in the Downtown Business District to provide an attendant parking operation at Lot "S" for which a parking fee was authorized to be charged; and, (c) Insufficient usage of the attendant parking service offered in Lot "S" now confirms that the attendant parking operation should be terminated. SECTION 2. The attendant parking operation in the City owned off-street Parking Lot "S", known as the Bryant-Florence lot, which was established by Resolution No. 7554, is hereby terminated effective on the date of October 7, 1996. SECTION 3. The parking zone map for the Downtown District of Palo Alto, adopted pursuant to Resolution No. 7413, is hereby amended to designate Parking Lot "S" for free two hour parking. The amended parking zone map is attached hereto as Exhibit "A" and incorporated herein by reference. // // // // // 960904 syn 0042677 1 SECTION 4. The City Council finds that this project is categorically exempt from the provisions of the California Environmental Quality Act ("CEQ~’), in accordance with Section 15301 of the CEQA Guidelines (pertaining to existing .facilities). Therefore, no environmental assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Planning and Community Environment Police Chief Chief Transportation Official 960904 syn 0042677 Downtown Palo Alto Parking Lots Free 2 Ho~Jr Pa~king Free 2 Hour & Permit Parking Free 2 Hour & Senior Center Permit Parking Free 3 Hour Pe(mit Pc{king Permit Parking I I Tasso Street 400 Cowper Street Kipling Street 400 Waverley Street Florence Street c~ Bryant Street "400 Rarnona Street ~ 400 Emerson Street 400 High Street II Webster Street 600 500 81 600 OIImon Street 500 5OO 600 500 6OO 6OO 600 Alma Street City City of Palo Alto Manager’s Report 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 underutilized, 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 free 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 fu’st 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 downtownmerchants 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 parking 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:2A4:96 Page ~2 of 5 Alternatives Based upon the conclusion that the lot has not been used to its full 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 alternative 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 tree 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 alternative 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, staffwould 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 annual 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 pemait 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: DURKIN Chief CC:Susan Frank, Chamber of Commerce Kathi Gwynn, Senior Coordinating Council Barbara Gross, Downtown Merchants CMR:244:96 Page 5 of 5 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALOALTO AMENDING THE MUNICIPAL FEE SCHEDULE FOR THE FISCALYEAR 1995-96 BUDGET TO AUTHORIZE FREE PARKING FOR THEFIRST 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