City Council Meeting: December 4, 2007
Agenda Item: 1-D
To: Mayor and City Council
Subject: Update of Downtown Parking Financing and Operations Plan
Construction of public parking facilities in accordance with the Downtown Parking Program developed by the Downtown Parking Task Force and adopted by Council on May 9, 2006, will require an update of the Downtown Parking Program financing plan to reflect current construction costs and market conditions. The update will include an evaluation of current conditions and an estimate of revenue opportunities from parking rates, in-lieu fees, property-based assessments and other revenue sources to support the parking program. Updating the financing plan and parking rates related to expansion of Downtown parking facilities provides an opportunity to evaluate options for enhancing the effectiveness, customer service, parking pricing and technology of parking operations in the downtown area. Staff solicited proposals from parking and financial consultants and recommends Walker Parking Consultants, in association with Keyser Marston Associates, for an amount not to exceed $200,000. Funds are available in the Redevelopment budget.
The Downtown Parking Program, developed and recommended by the Downtown Parking Task Force and adopted by Council in May 2006, calls for continued careful management of the City’s parking resources to encourage people to “park once” in the downtown area. The Program calls for the seismic upgrading of Parking Structures Nos. 2, 4 and 5, the demolition and reconstruction of Parking Structures Nos. 1, 3 and 6, and construction of up to two parking structures to add a total of up to 1,712 additional parking spaces to the downtown parking inventory over a ten-year period. Prior to the planning of any parking demolition or new construction, parking needs and growth in the Downtown area will be reviewed.
Seismic upgrading has been completed for Parking Structure No. 5; seismic upgrading is underway for Parking Structure No. 4 and the seismic upgrading planned for Parking Structure No. 2 is in the design stage. Planning for demolition and reconstruction of Parking Structure No. 1 is scheduled to commence during the current fiscal year.
The cost for construction of the parking facilities was estimated in 2002 to be $92.5 million, with funding to come from a variety of sources, including increases in parking rates and property assessments. Since that time, construction costs have increased significantly and market conditions, including parking rates in competitive destinations and in local private facilities, have changed. These changes have prompted the need for updates of the parking program cost estimates and financing program. An update of the cost estimates is currently underway. Updating the financing program provides an opportunity to evaluate and make recommendations regarding the downtown parking operations, as parking pricing is an important consideration for both financing and operations.
In August 2007, after consultation with the Bayside District Board of Directors, staff distributed a request for proposal for parking and financial consultants to evaluate parking operations and update the financing program. The proposal received from the recommended consulting team of Walker Parking Consultants, Inc., in cooperation with Keyser Marston Associates, responded to the Scope of Work in the RFP, as follows:
1. Review recent development trends based on an adopted standard of 2.1 parking spaces per 1,000 sq. ft. of development.
2. After review of parking rates for short- and long-term parking for downtown Parking Structures Nos. 1 through 10, the Civic Center Parking Structure, the Library Parking facility, and on-street parking rates, make recommendations about appropriate pricing strategies to encourage efficient use of existing spaces by the different user groups.
3. Evaluate the City’s current in-lieu parking fees and recommend changes in the methodology, as appropriate.
4. Prepare a parking financing plan based on updated construction cost estimates, revenue estimates from revised parking rates, in-lieu fees, property-based assessments and other resources.
5. Evaluate current operations and recommend opportunities for enhanced operational functions to introduce into those parking structures that are rehabilitated as well as those new structures that are to be constructed. Issues to be studied include a centralized valet parking system, pay on foot systems, and parking validation programs. The consultant is asked to make recommendations about parking oversight and management.
Previous Council Actions
Council approved the Downtown Parking Program and certified the EIR on May 9, 2006.
In January 2006, the City prepared and certified a program
environmental impact report for the City of
Staff mailed the Downtown Parking Program Financing Project to 15 firms, posted notice of the RFP on the City’s home page and received proposals from three firms: Carl Walker Parking, Tierra West Advisors and Walker Parking Consultants in partnership with Keyser Marston Associates. An interview panel consisting of staff from Redevelopment, Economic Development, Transportation Management, Planning, Financing and the Bayside District, recommended the team of Walker Parking Consultants and Keyser Marston Associates.
Walker Parking Consultants (“Walker”) has a 41 year history with
13 offices throughout the
On August 23, 2007, staff advised Bayside District Board of Directors that the City was soliciting proposals for preparation of a Downtown Parking Financing Plan. The Executive Director of the Bayside District provided input on the draft RFP before it was distributed and participated with staff on the interview panel.
Staff recommends a contract not to exceed $200,000. Funds are available in Account No. C170621.589000.