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Home My WebLink About12/05/2017 14 Downtown Parking MetersBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT 1 Item No. 14. For Meeting of: December 5, 2017 ITEM TITLE: Downtown Parking Meters SUBMITTED BY: DannyAgsalog - Finance and Budget Director- (509) 576-6644 SUMMARY EXPLANATION: At the November 16, 2017 Council Briefing, Council asked staff to calculate the potential revenue if the proposed Downtown Parking Meters would allow the first hour to be free of charge and then charge $0.50 per hour thereafter. The cover memo dated November 27, 2017 details the potential revenues for the four parking lots based on the number of turnovers of vehicles utilizing the lots. ITEM BUDGETED: NA STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date D parking 11/30/2017 D Original Option 11/14/2017 Type Co\er Memo Backup Material 2 MEMORANDUM To: Honorable Mayor and Members of the Yakima City Council From: Cliff Moore, City Manager Date: November 27, 2017 Subject: Follow-up on parking meter revenue request (Barrel House Lot, Capitol Theater lot, the lot across Second Street Grill and the lot behind Second Street Grill adjacent to Wells Fargo) At the November 16, 2017 Council Briefing, you requested information about potential parking meter revenue if the Downtown Parking Meters were set to allow the first hour to be free of charge and then charge $0.50 per hour thereafter. Table 1 below shows the potential revenue that could be generated based on the following assumptions: 1. There are 284 available spaces for metered parking. Note: This number reflects an expectation that, on average, 122 parking passes are sold each month (revenue not included in the table below). 2. Proposed metered time is 9 hours per day (9am to 6pm). 3. Annual number of days to be metered 250 (no weekend and holidays). 4. According to the downtown parking study from September 2014, the average duration per vehicle in a parking space was 2.51 hours and the average turnover per parking space was 3.21 times per day. Table 1 - Estimated Revenue Based on Turnovers and Occupancy SPACE TURNOVERS 25% OCCUPANCY 30% OCCUPANCY 40% OCCUPANCY 0 $71,000.00 $85,200.00 $113,600.00 1 $62,125.00 $74,550.00 $99,400.00 2 $53,250.00 $63,900.00 $85,200.00 3 $44,375.00 $53,250.00 $71,000.00 4 $35,500.00 $42,600.00 $56,800.00 Table 2 below shows the previous revenue estimates with all the above noted assumptions, but does not include the one hour free option. Table 2 - Estimated Revenue Based on No Free First Hour SPACE TURNOVERS 25% OCCUPANCY 30% OCCUPANCY 40% OCCUPANCY 0 $79,875.00 $95,850.00 $127,800.00 1 $82,093.75 $98,512.50 $131,350.00 2 $84,312.50 $101,175.00 $134,900.00 3 $86,531.25 $103,837.50 $138,450.00 4 $88,750.00 $106,500.00 $142,000.00 3 As originally proposed, revenues generated by parking meters would be deposited to the City's 321 account for the downtown improvement and maintenance costs. This is consistent with the revenues collected for the parking permits. Reintroducing parking meters would come with some up -front, one-time costs. To cover the areas indicated, we would need to purchase two (2) additional meters for an estimated cost of $6,300.00; and we would need to upgrade the modems and batteries of the six (6) parking meters we currently own for an additional estimated cost of $5,769.00. The total cost of investment for these projects is estimated to be $12,069.00. It should be noted that there are free all day parking spaces for employees and customers available in three other locations downtown. The public parking lot across the street from the Yakima Police Department at Walnut and 3rd Street (90 spots), the public parking lot adjacent the City's YPAC building on Second Street (24 spots) and the parking lot across the street from the Yakima Herald Republic on the 4th Street (180 spots) will all remain open to public for all day's needs. 4 "OPTION 3" PARKING METER PLACEMENT "Option 3" involves up front hardware costs to enable full implementation of the plan. These costs include $5,769 to upgrade the batteries and modems on the existing six parking meters the City owns and $56,700 to purchase nine new parking meters bringing the total to $62,469 to provide parking meters for "Option 3." Servicing and enforcement of the meters would be provided by the current parking enforcement staff. The one-time cost of the upgrades would be offset by the potential revenue in the year of implementation. City staff analyzed the revenue impact of "Option 3" including an analysis of three different levels of occupancy. Other options that have a minimal impact on total revenue estimates include allowing 15 minutes of free parking and / or continuing to sell monthly permits for some spots in Lots 1 and 2. The scenarios in the chart below are inclusive of Parking Lot 2 (Millennium Plaza). If Parking Lot 2 were removed from either scenario, an estimated annual revenue of $38,531 (25% occupancy at a rate of $0.50 per hour) up to $123,300 (40% occupancy at $1.00 per hour) would need to be subtracted from the final total. The two scenarios are as follows: Scenario 1 - Free parking not offered Hourly Rate Per Hour 25% occupancy per space 30% occupancy per space 40% occupancy per space $0.50 $89,156 $106,988 $142,650 0.75 133,734 160,481 213,975 1.00 178,312 213,975 285,300 2018 Council Budget Presentation - 256 Scenario 2 - Free parking for the first 15 minutes Hourly Rate Per Hour $0.50 0.75 1.00 25% occupancy per space $86,680 130,019 173,359 30% occupancy per space $104,016 156,023 208,031 5 40% occupancy per space $138,688 208,031 277,375 2018 Council Budget Presentation - 257 W. Northwestern Mutual® December 5, 2017 Yakima City Council City Hall 129 N 2nd Street Yakima WA 98901 RE: Proposed Parking Fees and Meters Dear Council Members (current and future): Distributed at the Meeting 11-15-0 % iLf RECEIVED CITY OF YAKIMA DEC 05 2017 OFFICE OF fly COUNCIL CLU°, ChFC°, LTCP, CASL®, RICP° Financial Representative 117 E Yakima Ave Yakima, WA 98901 509 4571660 office 509 248 3552 fax 509 453 2868 home neal.springer@nm.com nealspringer.nm.com I am a financial representative with Northwestern Mutual and our offices are located at 117 East Yakima Avenue. Our prior office location was at 312 N 3rd Street, just outside the downtown core. Three years ago in an effort to accommodate a growing agency, we chose to move to our current location. Preferring to be downtown, our only concern regarding our move was parking, both for our employees and our clients. After numerous discussions with city staff and learning about the recent history of the removal of parking meters and the ongoing efforts of city staff to retain adequate parking space for businesses, visitors, and customers, we concluded that a move to downtown would be appropriate. Our perception was that the City of Yakima was making every effort to promote its downtown core and support the businesses that locate there. So now, after making that commitment to move based on City support for free and convenient parking, we are faced with a proposal by the City to charge our employees for parking just to be employed downtown. What was once a parking policy to promote downtown growth by removing fees and meters, is now being proposed to be the opposite. All of this coming after luring new business downtown just to tack on parking fees after the fact. Such a move would be extremely counter-productive and disingenuous at best to downtown business and the promotion of the city core as a whole. And all of this happening when you are trying to promote a plaza to the community with the primary concern being parking. This just doesn't make sense. So do the right thing and back off on any proposed parking fees for downtown. For the minimal net revenue this could produce, the negative repercussions from downtown businesses, visitors, residents, etc., and simply keeping your word on the long term policies you had previously adopted, all justify dropping this ill-conceived idea. Neal Springer LU, C, LTCP, CASL, RICP Financial Representative Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM), and its subsidiaries and affiliates. Neal W. Springer is an Insurance Agent of NM (life insurance, annuities and disability income insurance) and Northwestern Long Term Care Insurance Company, Milwaukee, WI, a subsidiary of NM (long-term care insurance), and a Registered Representative of Northwestern Mutual Investment Services, LLC, a wholly-owned company of NM, broker-dealer and member FINRA and SIPC. NM is not a broker-dealer. There may be instances when this agent represents insurance companies in addition to NM or its affiliates. The Chartered Advisor for Senior Living'(CASL® designation is conferred by The American College of Financial Services. CA Insurance Agent License #0E04125