REPORT TO THE CITY COUNCIL
January 12, 2017
FROM: JENNIFER CLARK, Director
Development and Resource Management Department
THROUGH: KELLI FURTADO, Assistant Director
Development and Resource Management Department
BY: DEL ESTABROOKE, Housing and Neighborhood Revitalization Manager
Development and Resource Management Department
SUBJECT
Title
Actions pertaining to Parking Fees:
1. Adopt a Finding of no possibility of significant effect on the environment, per staff determination, pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA).
2. ***RESOLUTION - 531st Amendment to the Master Fee Schedule Resolution (MFS) No. 80-420 to add, adjust, and delete various parking fees.
Body
RECOMMENDATION
Staff recommends Council adopt an environmental finding that this project will have no possibility of impact on the environment pursuant to CEQA and approve: (1) the allowance of the first hour of parking to be free in Garages 4, 7, and 9; (2) a flat rate fee of $60.00 per stall per month for bulk annual parking contracts with a minimum of fifty (50) stalls; (3) tiered meter rates with the highest rate being $1.50 per hour and the lowest rate at $1.00 per hour; and (4) an increase in Meter Occupancy Permit from $120.00 to $150.00 per month. The Meter Occupancy Permit would increase as a direct increase of the meter rates.
EXECUTIVE SUMMARY
The City of Fresno currently operates parking garages, parking lots, and approximately 1,900 parking meters in downtown. Parking is provided to the public as well as multiple federal, state, and local agencies and businesses at contracted rates. The City of Fresno retained Walter P. Moore (WPM) in 2015 to complete a facility assessment for the City owned parking garages and lots. Based on this assessment, WPM developed a Capital Asset Management Plan (CAMP) and a Parking Rate Analysis to determine the appropriate rates the City should be charging in the lots, garages, and at parking meters. In an effort to support the City’s downtown revitalization efforts, and to ensure that repairs are made to the garages in a timely manner, staff is requesting that Council approve the first hour of free parking in Garages 4, 7 and 9, a set price of $60.00 per stall per month for bulk annual parking contracts with a minimum of fifty (50) stalls, an adoption of tiered meter rates with the highest rate being $1.50 per hour and the lowest rate at $1.00 per hour, and a fee of $150.00 per month for the Meter Occupancy Permit.
BACKGROUND
In 2015, the City contracted with WPM to complete a facility assessment for all City owned parking facilities. As part of the facility assessment, WPM developed a CAMP that details a ten year deferred maintenance plan that outlines approximately $9.8 million worth of deferred maintenance repairs. WPM presented the findings of the facility assessment in a workshop to Council on January 14, 2016.
Following the parking facilities assessment, WPM completed a Parking Rate Analysis for the City’s on-street and off-street parking facilities. WPM was tasked with analyzing the City’s current parking rates and providing recommendations for changes to the rates based upon the City’s downtown revitalization efforts and the needs identified in the parking facility assessment. WPM representatives conducted a workshop for Council on December 1, 2016, outlining the findings and recommendations of the Parking Rate Analysis.
As part of the Parking Rate Analysis, WPM reviewed the City’s existing parking contracts, which range from $25 to $60 per stall per month in City owned garages. These contracts are with various public agencies and private entities. WPM’s analysis identified that many of these contracts are deeply discounted and recommended the City charge a minimum of $60 per stall per month for the bulk contracts with 50 or more stalls. Furthermore, WPM’s analysis indicated that the majority of the garages are operating at 50% occupancy or less. To encourage increased use of the garage facilities, staff is recommending that Council approve an hour of free parking in garages 4, 7, and 9. This recommendation is consistent with WPM’s recommendations and will free up valuable on-street parking meters.
The City currently operates approximately 1,900 parking meters in downtown Fresno with an existing rate of $0.75 per hour. WPM reviewed the City’s existing conditions and concluded that the current on-street parking meter rates do not encourage parking in the City’s off-street lots and garages. On-street parking rates should be set to encourage short-term use. To encourage increased use of the garage facilities and to free up valuable on-street parking meters, staff is recommending that Council approve a tiered rate for parking meters of $1.50 per hour in heavily used areas to $1.00 per hour in less occupied areas. The proposed hourly parking meter rate increase is projected to generate approximately $300,000 annually (over 2016 reported profits). Additionally, staff is recommending that the Meter Occupancy Permit be increased from $120.00 to $150.00 per month to reflect the change in meter rates. These recommendations are consistent with WPM’s recommendations and staff believes this will further support the City’s downtown revitalization efforts. The additional revenue will be used to address the deferred maintenance identified in the WPM facility assessment and to eventually implement equipment upgrades, such as smart meters throughout downtown.
Additionally, with Council’s approval of this item, starting on July 1, 2018, staff shall administratively update the parking fees adjusted by this resolution annually to reflect the twelve month percentage change in the U.S Bureau of Labor Statistics Consumer Price Index (CPI) (Urban Wage Earners and Clerical Workers for the San Francisco-Oakland-San Jose Area), for the most current month that data is available, or 3% whichever is less.
Lastly, staff’s recommendations, as identified in the WPM Parking Rate Analysis, are outlined in the attached resolution which proposes to amend the Master Fee Schedule.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment of this project and, pursuant to CEQA Guidelines, section 15061(b)(3), has determined with certainty that there is no possibility that this project may have a significant effect on the environment. Therefore, this project is not subject to CEQA.
LOCAL PREFERENCE
Local preference was not implemented because this item does not involve a contract bid
FISCAL IMPACT
It is anticipated that the proposed changes to the parking meter rates alone will generate an additional $300,000 per year in revenue. This increase in revenue will help address the deferred maintenance identified in the parking facility assessment and will help to mitigate the General Fund’s subsidy for parking. Together the change in Parking Contract Rates, Meter Rates, and the Meter Occupancy Permit will generate approximately $866,000 in additional revenue.
Attachments:
Resolution - 531st Amendment to the Master Fee Schedule Resolution No. 80-420