FINANCE COMMITTEEDATE 4/27/09AGENDA ITEM
4
FINANCE COMMITTEE MEETING
Olympia, WashingtonApril 27, 2009
Parking Program Financial Analysis __________________________________________________________________
CITY MANAGER’SRECOMMENDATION: Option 1. Review Summary of Action Steps for the FinancialFeasibility of the Parking Services Strategic Business and forward toCity Council.STAFF CONTACT
: Lead Manager: David C. Riker, Director of Transportation753-8441,driker@ci.olympia.wa.us Assigned Staff: Kip P. Dernovich, Parking Program Manager753-8440, kdernovi@ci.olympia.wa.us
ORIGINATED BY
: Finance Committee
PRESENTERS ANDOTHERS NOTIFIED
:
Presenter:
•
Kip P. Dernovich, Parking Services Manager
ATTACHMENTS
:1.
BUDGET IMPACT/SOURCE OF FUNDS
: Funding is required from multiple sources pending what specificrecommendation is being addressed. Please see Summary of ActionSteps (Attachment 1) for a detailed timeline and cost for each specificrecommendation.
PRIOR COUNCIL/COMMITTEE REVIEW
: Land Use and Environment Committee, September 11, 2007City Council, September 11, 2007Finance Committee, February 12, 2008
BACKGROUND:
In mid 2008, the Finance Committee asked Parking Services to create aParking Services Strategic Business Plan for Downtown Parking. Thisplan will provide specific recommendations that will define the futureof parking within Downtown Olympia.The purpose of the Strategic Business Plan for Downtown Parking is todevelop a roadmap for how we focus our work over the next 4 years.The plan has been developed to be specific enough to address knownparking challenges, with immediate to near-term improvements. Theplan is also flexible enough to provide mid- and long-term solutions toassure that parking management strategies and programs areimplemented in a manner that best serves the unique and changingnature of the Downtown business environment.
ANALYSIS AND OPTIONS
: The full Parking Services Strategic Business Plan for Downtown Parkingwill be reviewed by the full City Council on May 12, 2009. The purposeof this staff report is to allow the Finance Committee the ability toreview the feasibility of the proposed action strategies, as well as theirfiscal impact on the Parking Special Account (PSA).The Parking Services Strategic Business Plan describes proposed goalsfor the current parking system that are summarized as follows:1.
A parking system that pays for itself2.
The right person in the right parking space3.
Condense parking so land is available for development
Goal # 1: A parking system that pays for itself.
A key element of theparking system is to provide a service in the most efficient andeffective manner possible. Another is to ensure that users of thesystem have a positive experience. Strategies under this goal addresscreating informed users of the system (web, brochures, andpresentations), reducing our operational costs (moving to a self-serviceapproach), and ensuring that ongoing revenues (rates and fees) supportoperations. Rates and fees must be addressed to make this possible.
Goal # 2: The right person in the right space.
When the wrong type ofparking system user parks in the wrong type of parking space, theentire parking system breaks down. Traffic congestion, irritability, airpollution and a negative impression of Downtown are a few of theoutcomes. By moving the free core to a pay system, the right user willutilize the right parking space. Rates are proposed to be set at $0.75per hour. While most will not consider that a lot of money for aconvenient parking spot right in front of their destination, they maymind having to carry change to pay a conventional meter. This and theability to minimize impacts on sidewalk walkability is why staffrecommends computerized pay-by-space pay box stations within the“Heart of the City”. These pay box stations replace up to tenconventional meters and can be equipped to accept coins, bills, creditcards, and parking debit cards.
Goal # 3: Consolidate parking so land is available for development.
The highest and best use of land within Downtown Olympia is mixed-use development. When multiple uses (retail, residential, andcommercial) are consolidated into one location, a synergy is created.Paying customers, jobs, and residents are brought into the Downtowncommunity. Currently there are only two fully developed block (nosurface parking) within Downtown Olympia.Specific strategies within this goal are to continue working with theDowntown Commuter Program and other Commute Trip Reductionefforts to reduce parking demand within Downtown. We have alsofound an interim solution to help replace parking lost to the ColpittsHousing Project. This is by acquiring off-street parking lots withinDowntown Olympia. When the parking is no longer required, theparking lots can be offered up for redevelopment.
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Moving to structured parking is another effective way to consolidateparking. Ensuring that the environment is right for a parking structureis a pre-cursor to any development. Specific actions include:
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No free parking in the area.
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Monthly garage passes cost $75 per month.
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Revenues increase or expenditures decrease 3% annually.
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Parking availability rates of 15% or less.
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Annual retail lease rates range from $10 to $22 per gross squarefoot.
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Retail/commercial located on the first floor of parking structure.
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Short-term parking within 3 to 4 blocks of parking structure isaltered to long-term or priced to drive individuals to the parkingstructure.
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Parking structure has a close proximity to multiple uses (24-hours).Both the Mills and Mills property and the DOT site should be explored aspossible future parking structure locations. Finally, City codealterations should be made to discourage the continuance of surfacelots within Downtown and the overbuilding of new parking supply withnew development.Implementation of these strategies should occur following City Councilapproval of the
Strategic Business Plan for Downtown Parking
. Thelong-term viability of this plan is attached to the financial position ofthe PSA. Expenditure policies for the PSA are prioritized as follows:1.
Debt service for existing facilities.2.
Maintenance and operation of existing facilities.3.
Acquisition and/or development of new supply.4.
Marketing and promotion of parking to priority users.5.
Coordinate funding of TDM programs.Each preceding strategy should reinforce those strategies that follow. Itshould be recognized that the overall plan is targeted to support along-term vision for economic growth and Downtown revitalization.Implementing this plan will be much more difficult to do than leavingthe system as it is or only making minor modifications, but staff feelsthat it is necessary to undertake these actions in order to meet thechallenges ahead.
Option 1
:
Review Summary of Action Steps for the Financial Feasibility of theParking Services Strategic Business and forward to City Council.
Implications1.
Provides the City with a detailed flexible approach on the future ofparking within Downtown Olympia.2.
Assists other City Departments in implementing the City Council’sgoals for Downtown Olympia.
Option 2
:
Modify the timeframes and/or list of proposed action steps for theParking Services Strategic Business Plan for Downtown Parking.Provide edits and feedback for full Council review at a later date.
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