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Home My WebLink AboutItem R • 4 July 1, 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 CURRENT BEACH PARKING SYSTEM AND PROPOSED CHANGES SUMMARY OF REQUEST Council review the ensuing analysis of the current parking system at the 8t/10`h Street beach lot and approve one of the two recommended systems. BACKGROUND • Prior to 1996, the beach parking lots utilized a"pay as you enter/FLAT fee" rate structure on a year-round basis. In June, 1996 staff completed an analysis of several parking methodologies which could be implemented at the beach parking lots. These parking systems were evaluated on the basis of several criteria, the most important of which were: I. The parking design should foster an increase in vehicular utilization of the beach parking lots. 2. The parking system should, at a minimum, remain revenue neutral or, optimally, increase parking revenues. The city manager recommended, and the Council approved, a"hybrid" parking design which employed a"pay as you enter/(graduated)FLAT fee" during the summer months (a standard rate with a discount for late afternoon users); and a"pay as you leave/ HOURLY rate during the off-season months (a rate based on"units of time"). DATA "Table#1" compares parking revenues and vehicle occupancy rates between two different parking systems. The 8`h/10`h Street beach parking lot employed a FLAT rate system on a year-round basis during the fiscal years 1994-96. During the fiscal years 1996-99, the"hybrid" parking design was utilized, i.e., , a FLAT rate system was employed between early June and October 31; and an HOURLY rate was used between November 1 and early June. Agenda Item: /� --TABLE#1-- Comuarison of PARKING REVENUES and VEHICLE OCCUPANCY RATES at 8`/1001 Street Beach Lot PARKING REVENUES TRADITIONAL HYBRID FLAT FLAT& HOURLY 1994-95 1995-96 1996-97 1997-98 1998-99 $245,036 $303,508 $292,244 $273,071 $285,060 VEHICLE OCCUPANCY RATES TRADITIONAL HYBRID FLAT FLAT & HOURLY 1994-95 1995-96 1996-97 1997-98 1998-99 49,482 61,676 71,192 70,392 82,843 ANALYSIS Comparing data collected from two different parking systems during the course of a five- year period does not necessarily establish a"cause and effect" relationship between a particular parking design and revenues/occupancy rates because the data may be impacted by a host of other variables, e.g., weather, surf conditions, economic climate, etc. However, staff believes that the following conclusions are valid inferences based on the foregoing data: The revenue stream under the hybrid system is fairly consistent, although FY 1997-98 income probably suffered from extensive El Nino rainstorms and FY 1998-99 revenues were hampered by the cooler environment fostered by La Nina weather patterns. Vehicle occupancy rates, however, exhibit a marked improvement under the hybrid system. Vehicle counts rose by approximately 10,000 in 1996-97, leveled out during the El Nino year of 1997-98 and spiked upward by another 12,000 vehicles during the recently-completed FY 1998-99. This data would seem to indicate that the hybrid parking system continues to foster growth in vehicle occupancy rates at the 8th/10`" Street beach parking lot. Revenues appear to be fairly consistent, notwithstanding the unusual weather patterns during the past two years. In addition, FY 1995-96 may have been an exceptional revenue year, thereby skewing comparisons in subsequent years. -2- 1• A PROPOSED CHANGES TO THE PARKING SYSTEM IMPLEMENTING A "PAY AS YOU LEAVE/HOURLY RATE" SYSTEM ON A YEAR-ROUND BASIS: Predicting the consequences of implementing a year-round, pay as you leave/HOURLY rate system is largely a speculative enterprise because of the large number of variables which impact parking patterns at the beach. However, in an earlier experiment, staff did implement an HOURLY rate system in early July, 1996 in order to ascertain if this system could be applied on a year-round basis. This prototype, however, was abandoned when revenues declined by over $4,000 during the first 10 days of July (when compared to July, 1995 revenues). Staff recognizes that the duration of the 10-day experiment in 1996 may have been too short of a time frame in order to extrapolate valid inferences. However, the significant drop in revenues compelled staff to cut short the HOURLY rate prototype. INCREASE BEACH PARKING LOT UTILIZATION BY PROVIDING"FREE PARKING"AFTER 4:00 PM: Motorists who use the 8th/10t Street beach lot between 4:00 PM and 10:00 PM(when the lot closes), currently pay a FLAT rate of$2.00 at the entrance(this policy is in effect on a year-round basis, regardless of whether the system is"pay as you enter" or"pay as you leave"). REVENUE AND VEHICLE OCCUPANCY RATES: The following data reflect the revenues and vehicle occupancy rates between 4:00 PM and 10:00 PM at the 8`"/10th Street beach lot(July, 1998 —June, 1999): --TABLE#2-- VEHICLE REVENUE OCCUPANCY JUL 98: $ 7,308 3,654 AUG 98: $ 8,316 4,158 SEP 98: $ 3,058 1,529 OCT 98: $ 1,802 901 NOV 98: $ 786 393 DEC 98: $ 600 300 JAN 99: $ 1,088 544 FEB 99: $ 1,280 640 MAR 99: $ 1,212 606 APR 99: $2,662 1,331 MAY 99: $3,018 1,509 JUN 99: $ 4,938 2,469 $36,068 18,034 -3- The busy summer months (June— September, 1998) generated positive revenue and vehicle occupancy rates between 4:00 PM and 10:00 PM. Staff assumes that Council would approve the continued $2.00 cost of parking during the evening hours between June 1 and September 30 because of the revenues ($23,620) and vehicle occupancy rates (11,810) as reflected in FY 1998-99. However, revenues and occupancy rates, naturally, decline between October and May. The eight, off-season months generated $12,448 in revenues and an occupancy total of 6,224 vehicles (between 4:00 PM and 10:00 PM). Wages paid to parking lot attendants during a normal eight-month period would be: 8 months x *25 days per month x 6 hours per day x $7.04/hourly wage attendant = $8,448 * Between the hours of 4:00 PM —10:00 PM, the beach lot employs an attendant only an average of 25 days per month because of closures due to rain and inclement weather conditions. Even with an attendant employed between 4:00 PM and 10:00 PM during the off-season months, net revenue for the beach lot during evening hours was $4,000. The modest parking revenues generated by the evening parking rate of$2.00 would appear to provide an equally modest rationale for sustaining this current parking policy during the off- season months. In addition, whenever lot attendants close the booth early, the attendant currently leaves the gate arm in the "up" position until 10:00 PM in order to provide additional parking capacity for Main Street business customers. CRIME/ SECURITY: If an attendant left the beach lot at 4:00 PM each day, the parking system becomes "passive," i.e., the City would no longer"control" access to the beach lot. This lack of control would likely result in an increase in vehicular "cruising" of the lot as well as an increase in loitering and beach crime in general. IMPACT ON MAIN STREET PARKING METERS: If"free parking" were available at the beach lots after 4:00 PM, parking meter revenues at the Main Street lots would likely decline because motorists normally prefer free parking vis a vis metered parking. -4- r,. RECOMMENDATION Based on the parking revenues and vehicle occupancy rates under the hybrid system as well as the analysis of proposed changes to this system, staff recommends that Council either: 1. Approve the continued use of the hybrid parking design at the 86/10`h Street beach lot (including the $2.00 cost between 4:00 PM and 10:00 PM). -or- 2. Sustain the current parking system except for amending parking policy after 6:00 PM during the off-season months. In order to foster greater vehicle occupancy at the beach lot, this option would allow free parking after 6:00 PM between November 1 and March 31. No data is available which would allow staff to "predict" whether the second option would be revenue neutral or if a slight revenue loss would result. In addition, the issues regarding crime and lost revenue from parking meters would likely be only marginal concerns after 6:00 PM in the off-season months. Regardless of the choice made by Council, staff will continue to monitor parking patterns at the beach lots and submit timely reports to Council. NOTED • ND APPROVED: ." . t ter. Dan I •rs-y Keith Till 1111 City Manager -5-