HomeMy WebLinkAbout2002-07-22 City Council (17)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:JULY 22, 2002 CMR:346:02
SUBJECT: INCREASED PARKING IN-LIEU FEE
This is an informational staff report. No Council action is required.
BACKGROUND
The in-lieu parking fee ordinance (PAMC 16.57) was enacted by Council in January 1995.
This ordinance allows certain nonresidential development within the boundaries of the
downtown assessment district to pay a fee instead of providing the normally-required off-
street public parking. The collected fees are to be used to help offset the costs of any new
public parking facilities constructed in the assessment district. Only certain properties may
qualify to pay this fee as defined in PAMC 18.49.100(d) (Attachment A). This fee was
proposed and adopted after Council adopted new regulations for the CD zoning district in
1986. In 1995, the fee was initially calculated to be $17,800 per parking space, based on a
comprehensive study of the cost of parking structures in various Bay Area cities and the
possible locations and types of facilities that might be built in downtown Palo Alto.
In October 1998, Council approved revisions to PAMC 16.57. New parking structures for
Lots S/L and R were under consideration and the projected cost per space of the new
structures was substantially higher than the existing in-lieu fee. One revision was to increase
the parking in-lieu fee in the event that the Council approved a new public parking garage.
As stated in the findings for the revised ordinance, it was Council’s intent that the amount of
tl~e fee equal the full cost of providing the required number of parking spaces in any new
parking structures. The revised ordinance also increased the fee to $30,250 per.parking
space, reflecting the estimated cost per net new parking stall of the highest-cost structure
under consideration at that time. The fee is updated annually per the construction cost index
for the San Francisco Bay Area as published in the "Engineering News Record", the
McGraw Hill Construction Weekly. The current in-lieu parking fee is $32,898 per parking
space.
CMR:346:02 Page 1 of 3
DISCUSSION
According to PAMC 16.57.030, the fee must be recalculated at the time the construction
contract for a new parking facility is awarded. The recalculated fee must be based on the
actual incurred design costs to that point, plus the construction cost and authorized
contingency, based on the construction contract award. (A second recalculation must take
place after the project is completed, based on the actual incurred design and construction
costs.)
City Council approved two new parking structures on Lots S/L and Lot R. Both garages
were designed at the same time and a single construction contract was awarded on April 15,
2002 to build both garages simultaneously. Construction began on May 20. In the event that
more than one project is undertaken, PAMC 16.57.030 requires that the in-lieu fee be based
on the highest cost per net new parking space. In this case, both garages were designed and
constructed under one contract (in part, to keep costs lower), so the in-lieu fee has been
calculated based on the combined costs divided by the combined net new parking spaces.
The attached spreadsheet provides a recalculation of total cost as described PAMC
16.57.030. The total cost includes design costs plus design contingencies, the construction
bid with authorized contingency, plus all related staff and administrative costs up through
the award of the construction contract. The total cost as calculated above is $36,358,558.
The number of net new parking spaces for both facilities (new garage spaces minus existing
spaces lost on the lots) is 713. The cost per net new space is therefore $50,994 (total cost/net
new parking spaces). The updated fee represents a 55 percent increase over the existing fee
of $32,898. No Council action is required for this increase to take place.
TIMELINE
The effective date of the increased in-lieu parking fee will be August 15, 2002. Information
regarding the updated fee was made available at the Development Center on July 15, 2002.
ATTACHMENTS
A. PAMC Section 18.49.100
B. Parking Structures R and S/L Costs as of Award of Construction Contract
CMR:346:02 Page 2 of 3
PREPARED BY:
CARL STOFFEL
Transportation Engineer
DEPARTMENT HEAD:
EMSLIE
. of Planning and
Community Environment
CITY MANAGER APPROVAL:~
EMIL; HARRISON
Assistant City Manager
cc:Tracy Hutchison, President, Chamber of Commerce
Chamber of Commerce Parking Sub-committee
CMR:346:02 Page 3 of 3
Document.http://nt2.scbbs.com/cgi-bin/om_isapi.d...ocode-3&jump=l 8.49.100&softpage=ref Doc
ATTACHMENT A
18.49.100 Parking regulations.
The provisions of Chapter 18.83 regarding loading requirements, bicycle facility requirements, parking
requirements for residential uses, and parking requirements for nonresidential uses outside a parking assessment
district, formed and assessed under Bond Plan G financing pursuant to Title 13, shall apply in the CD district.
However, with respect to on-site and off-site parking space requirements for nonresidential uses within an
assessment district wherein properties are assessed under a Bond Plan G financing pursuant to Title 13, the
following requirements shall apply in the CD district in lieu of the requirements of Chapter 18.83:
(a) On-Site Parking. Any new development, any addition or enlargement of existin~ development,
or any use of any floor area that has never been assessed under any Bond Plan G financing pursuant to Title 13,
shall provide one parking space for each two hundred fifty gross square feet of floor area, except as may be
exempt from such requirement by the provisions of subsection (b) of this section. The purpose of this subsection
is to regulate the number of parking spaces required. Requirements for the size and other design criteria for
parking spaces shall continue to be governed by the provisions of Chapter 18.83.
(b) Exceptions. The requirement for on-site parking provided in subsection (a) of this section shall
not apply in the following instances:
(1)Square footage for:
(A)Handicapped access which does not increase the usable floor area, as determined pursuant to
Section 18.49.060(b)( 1);
(B) An increase in square footage in conjunction with seismic rehabilitation, pursuant to Section
18.49.060(b)(2);
(C)Historic Structures in Categories 1 and 2. Each historic structure in Categories 1 and 2 may take
advantage of the following exceptions during the life of the building:
(i) An increase in square footage of a historic building in Categories 1 and 2, pursuant to Section
18.49.060(b)(3), and
(ii) A conversion to commercial use of a historic building in Categories 1 and 2 that is fifty feet or
less .in height and that has most recently been in residential use, if such conversion is done in conjunction with
exterior historic rehabilitation approved by the director of planning and community environment upon the
recommendation of the architectural review board in consultation with the historic resources board. Such
conversion must not eliminate any existing on-site parking;
(D)A minor increase of two hundred square feet or less, pursuant to Section 18.49.060.(b)(4);
(E)At or above grade parking, though included in the FAR calculations, as set forth in Section
18.49.060(a) shall not be subject to the on-site parking regulations of subsection (a) of this section.
(2) Vacant parcels shall be exempt from the requirements of subsection (a) of this section at the time
when development occurs as provided herein. Such development shall be exempt to the extent of parking spaces
for every one thousand square feet of site area, provided that such parcels were at some time assessed for parking
under a Bond Plan E financing pursuant to Chapter 13.16 or were subject to other ad valorem assessments for
parking.
(3) No new parking spaces will be required for a site in conjunction with the development or
replacement of the amount of floor area used for nonresidential use equal to the amount of adjusted square
footage for the site shown on the engineer’s report for fiscal year 1986-87 for the latest Bond Plan G fmancing for
parking acquisition or improvements in that certain area of the city delineated on the map of the University
Avenue parking assessment district entitled, "Proposed Boundaries of University Avenue Off-Street Parking
Project #75-63 Assessment District, City of Palo Alto, County of Santa Clara, State of California," dated October
30, 1978, and on file with the city clerk. However, square footage which was developed for nonresidential
purposes or which has been used for nonresidential purposes but which is not used for such purposes due to
vacancy at the time of the engineer’s report shall be included in the amount of floor area qualifying for this
exemption. No exemption parking requirements shall be available where a residential use changes to a
nonresidential use, except pursuant to subdivision (1)(C) of this subsection.
. (c) Off-Site,Parking. Parking required by this chapter may be provided by off-site parking,
provided that such off-site parking is within a reasonable distance of the site using it or, if the site is within
an assessment district, within a reasonable distance of the assessment district boundary and approved in
writing by the director of planning and community environment. The director shall assure that sufficient
covenants and guarantees are provided to ensure use and maintenance of such parking facilities, including
an enforceable agreement that any development occurring on the site where parking is provided shall not
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Document http://nt2.scbbs.com/cgi-bin/om_isapi.d...ocode-3&j ump=l 8.49.100&softpage=ref_Doc
result in a net reduction of parking spaces provided, considering both the parking previously provided and
the parking required by the proposed use. ¯
(d) In-Lieu Parking Provisions. In connection with any expansion of the supply of public parking
spaces within the CD commercial downtown district, the city shall allocate a number
of spaces for use as "in-lieu parking" spaces to allow development to occur on sites which would otherwise be
precluded from development due to parking constraints imposed by this chapter. Off-site parking on such sites
may be provided by payment of an in-lieu monetary contribution to the city to defray the cost of providing such
parking. Contributions for each required parking space shall equal the incremental cost of providing a net new
parking space in an assessment district project plus cost for the administration of the program, all as determined
pursuant to Chapter 16.57 of Title 16 of this code, by the director of planning and community environment, whose
decision shall be final. Only sites satisfying one or more of the following criteria, as determined by the director of
planning and community environment, shall be eligible.to participate in the in-lieu parking program:
(1) Construction of on-site parking would necessitate destruction or substantial demolition of a
designated historic structure;
(2) The site area is less than ten thousand square feet and it would not be physically feasible to
provide the required on-site parking;
(3) The site is greater than ten thousand square feet, but of such an unusual configuration that it
would not be physically feasible to provide the required on-site parking;
(4) The site is located in an area where city policy precludes curb cuts or otherwise prevents use of
the site for on-site parking;
(5) The site has other physical constraints, such as a high groundwater table, which preclude
provision of on-site parking without extraordinary expense.
(e) Underground Parking. Underground parking deeper than two levels below grade shall be
prohibited unless a soils report or engineering analysis demonstrates that regular pumping of subsurface water will
not be required.
(Ord. 4256 § 2, 1995: Ord. 3896 § 5, 1989: Ord. 3736 §§ 1, 2, 1987: Ord. 3696 § 1 (part), 1986)
18.49.110 Pedestrian regulations.
The pedestrian shopping combining district of Chapter 18.47 shall apply to the area of the CD district
designated "P" combining district as shown on Map 4* inCOrporated within this chapter.
(Ord. 369..___~6 § 1 (part), 1986)
18.49.120 Ground floor (GF) regulations.
The ground floor combining district of Chapter 18.50 shall apply to the area of the CD district designated
"GF" combining district as shown on Map 5* incorporated ~,ithin this chapter.
(Ord. 4098. § 1, 1992: Oral. 3696 § 1 (part), 1986)
18.49.130 Historic preservation.
Historic structures or sites designated on the historic inventory and located within the geographical
boundaries of the CD commercial downtown district shall be subject to the regulations contained in the historic
preservation ordinance, Chapter 16.49~ of the Palo Alto Municipal Code.
(Ord. 3696 § 1 (part), 1986)
18.49.140 Recycling storage.
All new development, including approved modifications that add thirty percent or more floor area to
existing uses, shall provide adequate and accessible interior areas or exterior enclosures for the storage of
recyclable materials in appropriate containers. The design, construction and accessibility of recycling areas and
enclosures shall be subject to approval by the architectural review board, in accordance with design guidelines
adopted by that board and approved by the city council pursuant to Section 16.48.070.
(Ord. 4069 § 9, 1992)
Chapter 18.50 GROUND FLOOR COMBINING DISTRICT (GF) REGULATIONS
Sections:
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ATTACHMENT B
PARKING STRUCTURES R AND S/L COSTS AS OF AWARD OF CONSTRUCTION CONTRACT
Feasibility Study Costs - Watry
Contract Planner for EIR
Public Works misc costs budget
Prelim Design/EIR - Watry
City’s Teen Ctr/Surplus Space design
Prelim Design Contract Engr - Turner
Assessment District - Harris
Final Design - Watry
City’s Teen Ctr/Surplus Space design
Final Design Contract Engr,- Turner
Aesbestos Removal @ Teen Ctr
Construction Admin - Watry
Contr Admin/Mtgs - Surplus Space/Watr
Construction Admin & Testing - Turner
Construction Bid - McCarthy .
Building Permits
Appraisals for bldgs adj to Lot R and S/L
Title reports for prop adj to Lot R and S/L
420 Florence Easement- Rominger
420 Florence Easement- Plemmons
420 Florence Easement- Denson
Jungle Copy Easements - VanDerVort
Reimbursables (printing, postage, etc)
Staff costs - design (from 7/1/01 - 5/31/02)
Staff costs - constr (from 7/1/01 - 5/31/02)
Re-hab of old PAMF lot for permit parking
Re-strip/sign curbside parking downtown
Contingencies
Total Cost
I Encumbered
$70 000
$45 000
$5 000
$682 136
-$70 200
$167 412
$72 400
$1,636 000
-$62 000
$285 138
$i4 950
$69 200
-$17500
$6,014,814
$22,535,000
$265 919
$15 000
$1 ooo
$26 000
$26 000
$26 000
$50 ooo
$1o ooo
$153 186
$58 096
$25 000
$10,000
$32,113,551
$4,245,007
$36,358,558
C°ntingency I Date
$7,000 12/4/95
$0 1/22/98
$0 1/22/98
$34,100 1/22/98
$0 1/22/98
$16,741 1/22/98
$7,000 8/8/99
$163,000 6/4/01
$0 6/4/01
$28,514 6/4/01
$0 2/7/02
$6,920 4/15/02
$0 6/4/01
$601,481 4/15/02
$3,380,250 4/15/02
$0 5/02/02
$0 12/30/01
$0 2/28/02
$0 6/1/02
$0 6/1/02
$0 6/1/02
$o
$o
$o
$o
$o
$o
Existing Spaces - Lot R
New Spaces - Lot R
Net Spaces Gained - Lot R
74
212
138
Existing Spaces - Lot S/L
New Spaces - Lot S/L
Net Spaces Gained - Lot S/L
115
69O
575
Total Net Space Gain
Total Spaces
713
902
[Cost per Net Space added $50,993.771Updated In-Lieu Fee
c:///parking/misc/Parking Structure Cost as of Construction Contract Award.xls, 7/8/02