City Council Meeting: December
4, 2007
Agenda Item: 1-D
To: Mayor and City Council
From:
Subject: Update of Downtown Parking Financing
and Operations Plan
Recommended
Action
Staff recommends that the City Council
authorize the City Manager to negotiate and execute a professional services
agreement with Walker Parking Consultants to prepare a Downtown Parking
Operations Plan and to update the Downtown Parking Program financing plan in an
amount not to exceed $200,000.
Executive
Summary
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.
Background
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.
Discussion
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.
Environmental Analysis
In January 2006, the City prepared and certified a program
environmental impact report for the City of
Contractor/Consultant Selection
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
Public Outreach
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.
Financial Impact and Budget
Action
Staff recommends a contract not to exceed $200,000. Funds are available in Account No.
C170621.589000.
Prepared by:
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Approved: |
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Forwarded to Council: |
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Andy Agle, Director Housing
and Economic Development |
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P. City
Manager |