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City Council Report

 

City Council Meeting: November 9, 2010

Agenda Item: 3-D

To:†††††††††††††† Mayor and City Council

From:†††††††††† Carol Swindell, Finance Director

Subject:††††††† Amend Contract with Central Parking System to Add Operation of the 400 block of Colorado, 1326 Fifth Street, and Main Street Parking Lots

 

Recommended Action

Staff recommends that the City Council:

1.     Authorize the City Manager to negotiate and execute an amendment to Contract #9050 (CCS) with Central Parking System to add to scope of work operation of the 400 block of Colorado, 1326 Fifth Street and Main Street parking lots. Increase the annual operating budget of the contract by $174,000 annually to $5,582,738.

 

2.     Approve the budget changes as outlined in the Financial Impacts and Budget Actions section of this report.

 

Executive Summary

Over the past year, the Business and Revenue Operations Division has completed an internal review of parking operations and has developed an Implementation Plan for the Walker Parking Study.Both the Walker Study and internal reviews have identified the need to have coordinated parking operations to effectively manage the operations and maintenance of the Cityís parking resources. Ensuring consistent operation of all of the Cityís parking resources also furthers the goals of the Land Use and Circulation Element (LUCE) and traffic and parking plans as various planned projects in the downtown and Civic Center begin construction. Incorporating the operations of the Main Street, 1326 Fifth St., and, potential interim use of the lot on the 400 block of Colorado, would further these goals. In the downtown, this recommendation is expected to increase revenue sufficiently to cover all increased cost. Although the recommendation is not projected to increase revenue at the Main St. lots, it would improve the overall operation and maintenance of those lots, providing a better experience for Main St. parkers.

 

 

Background

On April 7, 2009, Council authorized a contract with Central Parking System to operate the Cityís off-street parking locations through 2012.Central Parking System currently operates all City-owned parking structures and the beach parking lots. Adding operations for the Main Street, 1326 Fifth Street, and the lot on the 400 block of Colorado supports the Cityís efforts to establish a unified parking operation citywide to ensure consistency in the operations and customer experience at all City parking locations.This unified program is also supported by the Councilís action to install standard equipment at the parking locations.Incorporation of these lots into parking operations will further provide for the implementation of the Walker Parking Study recommendations and the detailed development of a replacement parking strategy during the construction of Parking Structure 6 and the demolition of Parking Structure 3.

 

Discussion

400 block of Colorado lot

The former Sears Tire Center on the 400 block of Colorado is the expected terminus for the Exposition Light Rail line. Staff recommends that the City utilize the site as a temporary public parking lot, both to meet the demand for parking spaces and to generate income for the Big Blue Bus Fund until such time as the site is needed for construction staging for the light rail line. The site can accommodate approximately 450 parking spaces, will be operated with automated payment equipment, and will be accessible at all times.An annual operating expenditure increase of $52,000 is anticipated as well as an increase in Big Blue Bus Fund revenue of $465,500. The revenue assumption is based on current downtown parking rates without the 2 hours free period. The annual operating cost is base on number of daily collections, inspections, and parking spaces. Paving of the lot to allow for parking is anticipated to cost approximately $150,000. The duration of time the City would be able to operate the lot as parking is currently unknown. To ensure that the estimated cost to pave and operate the lot is recovered, staff would confirm the ability to allow vehicles to use the parking lot for at least a year prior to authorizing the additional work.

 

1326 Fifth Street

The City parking lot at 1326 Fifth Street can accommodate 100 parking spaces. This lot will be operated with automated payment equipment and is critical to the downtown replacement parking program discussed in an October 12, 2010 Information Item. An operating expenditure increase of $59,000 is needed to manage this lot which is anticipated to increase General Fund revenue by $180,991. The revenue assumption is based on current downtown parking rates without the 2 hours free period.

 

Main Street Parking Lots

The Main Street Parking Lots located between the 2300 and 2800 blocks of Neilson Way are currently operated using 351 single space parking meters that only accept coin payment. On October 12, 2010, Council authorized the purchase and installation of automated payment equipment at these lots. In addition to maintenance and operations of the pay-on-foot machines, incorporating these lots into the Central Parking Systems parking contract will provide daily inspections, basic cleaning and maintenance of the lots, identical to the operations and maintenance of the beach lots. This portion of the recommendation would improve the operations and maintenance of the lots but not result in increased revenue. ††An operating expenditure increase of $30,000 is needed for the remainder of this fiscal year. The annual cost for operation and maintenance of the parking lots by Central Parking Systems is estimated at $63,000. In addition to collection and equipment maintenance, Central Parking Systems will also be responsible for daily maintenance services, including but not limited to, parking lot sweeping, trash removal, signage, general cleaning and repairs, graffiti removal, landscape maintenance, and basic parking spaces restriping. The operating budget also covers armored car service, daily facilities inspections, credit card processing cost and reconciliation.If the lots are continued to be operated as they currently are with City staff collecting the money from the new multi-space meters and no daily maintenance, the estimated annual cost is $30,000 and is within existing operating budgets.

 

The total annual increase in operating expenditures of $174,000 for all three locations covers supervisory, maintenance and revenue collection services provides by Central Parking System for all three parking facilities listed above and will be recovered through increased parking revenue throughout all locations.

 

400 block of Colorado and 1326 Fifth Street Parking Rates

On November 23, 2010, staff plans to bring to Council a parking rate resolution that proposes to incorporate additional changes to match historical operational practices. That report will include a recommendation that parking rates for the two downtown locations be set similar to public parking rates in the Bayside District without the two hours free. The proposed monthly parking rate is $121.00 per month and short-term parking would be $1.00 for each 30 minutes.

 

Financial Impacts and Budget Actions

The following FY10-11 budget changes will be necessary:

1.     Increase the following revenue accounts:

Account:†††††† 01225.404270†††††††††††††††††† Amount:††††††† $ 90,500

Account:†††††† 41642.402650†††††††††††††††††† Amount:††††††† $232,750

2.     Appropriate the following operating expenditures:

Account:†††††† 01225.555010††††††††††††††††† Amount:††††††† $87,000

 

Prepared by:

Frank Ching, Parking Coordinator

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

Carol Swindell

Director, Finance Department

 

Rod Gould

City Manager