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Home My WebLink AboutItem Q July 15, 1999 AGENDA REPORT To: Honorable Mayor and Members of the City Council From: Dan Dorsey, Assistant to the City Manager Attention: Keith Till, City Manager Subject: ANALYSIS OF MAIN STREET PARKING LOTS & PROPOSED AMENDMENTS TO PARKING METER ORDINANCE #1441 SUMMARY OF REQUEST After reviewing various proposed amendments to Parking Meter Ordinance #1441, Council approve one of the alternatives. BACKGROUND Seventy-seven (77) parking meters were installed in the Main Street municipal parking lots in February, 1999. The goals of this parking meter program were essentially three- fold: 1. To promote optimal utilization of the Main Street parking lots for customer parking. 2. To attract business customers while keeping beach visitors out of the Main Street lots. 3. To generate revenue. City Ordinance #1441 established "parking meter fees" of$1.00 per hour/25 cents per fifteen-minute increments. The ordinance also established "hours and days of operation" of 8:00 a.m. until 10:00 p.m. on every day. Because of the subsequent, perceived under-utilization of the Main Street parking lots, Council directed staff to prepare a report on the off-street parking meter program and, if warranted, to draft proposed amendments to Ordinance#1441 regarding parking meter fees and hours and days of operation. [ For purposes of identifying specific parking lot locations on Main Street, attached "TABLE #1" is a graphic which refers to the parking lot on the 100 block of Main Street as"Lot A," the parking lot on the East side of Electric Avenue as "Lot B" and the parking lot on the west side of Electric Avenue as"Lot C." ] Agenda Item: 9' 3 ANALYSIS Any perceived under-utilization of the Main Street lots may, in fact, be partially caused by the cost for metered parking--$1.00 per hour. A more likely cause, however, is the large availability of free parking on Main Street as well as Central and Ocean avenues (a total of 257 spaces). Vehicle occupancy rates in the metered lots only begin to increase when parking availability on Main Street is exhausted. Staff realizes, though, that Council eschews the installation of parking meters on Main Street for the immediate future. Some under-utilization is related to perception—since residents' cars as well as vehicles with "Merchant" parking decals are no longer allowed to use the Main Street lots, it appears as if the lots are"failing" when, in fact, these empty parking stalls represent freed-up spaces for customers. In addition, there have always been periods when these lots sit relatively empty because spaces on Main Street are available at certain times and days; these spaces are, of course, more convenient and they are always taken first by motorists. Certain changes to the existing parking meter program, however, could foster an increase in the utilization of the Main Street lots. Prior to effecting these changes, however, staff would need to establish criteria in order to measure the"success" subsequent to any program changes. One measurement of success could be established by using baseline comparisons. For example, if the hourly meter cost were reduced by 50% and, if revenues remained the same, then the program could be deemed a success because twice as many vehicles would be using the parking lots with no loss of income. SPILLOVER EFFECTS Unintended spillover effects could occur if metered parking were reduced to 50 cents per hour. The Main Street parking lot located in the 100 block("Lot A") could become heavily-populated—especially on weekends--by beach visitors who, naturally, would prefer to pay $1.00 for two hours of parking vis a vis the flat rate of$5.00 - $6.00 at the beach lot. Of course, beach visitors can also currently park for free on Main Street for two hours. Another unintended spillover effect could involve shorter hours of parking meter operation. "Lot A" is adjacent to several apartment complexes on Tenth Street. If the hours of operation ended at 6:00 p.m. each day, this lot could become impacted, after 6:00 p.m., by vehicles owned by nearby residents. MITIGATIONS In order to mitigate spillover effects, Council may want to consider implementing "summer" (higher) meter rates vis a vis"off-season" (lower) rates in order to optimize revenues and greater vehicle utilization of the Main Street parking lots. The higher summer rates would tend to discourage usage of the Main Street lots by beach visitors. -2- Council may also want to consider implementing different hours of operation at the Main Street parking lots. "Lot B" and "Lot C" (on Electric Avenue) could end their hours of operation at 6:00 p.m. because these lots are not adjacent to apartment complexes. In addition, these lots would provide additional parking for visitors to the Bay Theatre (movies generally commence at 6:00 p.m. each evening—except for weekends). On the other hand, "Lot A" could remain operational until 8:00 or 9:00 p.m. in order to discourage usage by nearby residents. PROPOSED AMENDMENTS TO ORDINANCE #1441 The following proposed alternatives are presented for Council consideration: I. Sustain the current parking meter policies regarding fees ($1.00 per hour/25 cents per fifteen-minute increments) and hours and days of operation (8:00 a.m. until 10:00 p.m. on every day) at all of the Main Street parking lots. 02. Approve "seasonal" parking meter fees and different hours of operation at the Main Street parking lots. This option would attempt to foster improved utilization of the parking lots, discourage usage of"Lot A" by beach visitors during the day-time and by residents during the evening hours. It is difficult to accurately predict how this alternative would impact future revenues— it depends on how motorists respond to the reduced parking meter fees during the off- season months. This option could foster a revenue decline of up to 20%, or revenues could remain the same or even modestly increase (when compared to current revenues): FEE LOT SEASON $1.00 per hour/25 cents per "A" June 1 – September 15 fifteen-minute increments 50 cents per hour/25 cents "B" & "C" Year-round per thirty-minute increments -and- PARKING LOT HOURS & DAYS OF OPERATION Lot"A" (100 block) 9:00 a.m. – 8:00 p.m. /everyday Lots"B" & "C" (Electric Ave.) 9:00 a.m. – 6:00 p.m. /everyday -3- 3. Approve uniform parking meter fees and hours of operation at all of the Main Street parking lots. This alternative would attempt to foster improved utilization of the parking lots by reducing fees by 50%--on a year round basis--and by shortening the hours of operation. However, the shortened hours of operation would allow residents to park their vehicles in "Lot A" after 6:00 p.m., which means that less parking capacity would be available to Main Street customers during evening hours. In addition, this option could foster a revenue decline of up to 30%, or revenues could remain the same as the current year: FEE HOURS & DAYS OF OPERATION 50 cents per hour(25 cents per thirty- 9:00 a.m. —6:00 p.m. /everyday minute increments) FURTHER ANALYSIS Alternative#1 is the status quo; it attempts to discourage day-time beach visitors and night-time residents from using any of the Main Street lots. This option also generates a positive revenue stream. This strategy, however, does not attempt to promote increased utilization of the Main Street parking lots. Alternative#2 also discourages day-time beach visitors and night-time residents from using"Lot A" specifically. In addition, it attempts to increase vehicle utilization during the off-season months at Lot"A" and on a year-round basis at Lots"B" and "C"; this alternative also provides free parking for Main Street customers at Lots"B" and "C" after 6:00 p.m. This option could result in a modest decline in revenues (when compared to the current income stream). Alternative#3 would improve vehicle utilization of the Main Street lots, but revenues would probably decline by 20—30%. In addition, under this strategy, "Lot A" would be used by many beach visitors during the day-time as well as by residents returning home in the evening. RECOMMENDATION Staff recommends that Council approve Alternative#2 and direct staff to draft appropriate amendments to Ordinance#1441 for Council approval at next meeting. [Addendum: Duncan Industries require approximately four to six weeks in order to prepare new"information plates," which are placed inside each parking meter housing (the"dome" on top). These plates provide public information regarding fees and hours and days of operation.] NOTED & , 'PROVED: - -- '071gft Dan D rs Keith R. Till, City Manager -4- TABLE #1 A 9C A.44Ri, c . DR . • c A 0 COMMERCIAL CORE ct` ��'%�, LOT "C" j / / cp Citi co 00:4i 7 V LOT "B" , e /\''`N 4" -Ny--- _-_ ' i t,,,\ „ Li 1 1, ..,„ _ ___/..... • \`/— ;' '�`' ie \L cb ..c.x 7 \ i --- \off vL __ - <----- LOT "A" FQ' yL PUBUC PARKING LOT CITY EMPLOYEE LOT