SAN JOSE CAPITAL OF SILICON VALLEY

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1 CITY OP "3 SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL COUNCIL AGENDA: 6/9/15 ITEM: du Memorandum FROM: Jim Ortbal SUBJECT: SEE BELOW DATE: May 18, 2015 Date ST zt is' SUBJECT: REPEAL OF RESOLUTION NO AND ADOPTION OF PARKING PENALTY AND LATE PAYMENT PENALTY RESOLUTION RECOMMENDATION Adopt a resolution to repeal Resolution and set forth the Schedule of Parking Penalties and Late Payment Penalty for Parking Violations to increase certain parking penalties, and include the cost of special collections on any unpaid delinquent parking citation that is collected through special collection efforts, effective July 1, OUTCOME The proposed resolution will increase certain parking penalties between $5 and $10, and add the cost of collection of unpaid delinquent citations to the fine amount which will enable the City to collect the full amount of the parking citation due to the City. BACKGROUND Pursuant to California Vehicle Code (CVC) Section (a), the governing body of each jurisdiction establishes the schedule of penalties for parking violations within their jurisdictional limits, including those penalties set by the State. The Proposed Operating Budget includes a recommendation to increase certain parking citation fines by an amount between $5 and $10. Parking fines were last adjusted effective January 1, 2011 by an amount up to five dollars to enable the City to cover an additional $3 State of California surcharge on collected parking citations for the Trial Court Trust Fund, and to provide additional revenue to the General Fund. The City currently has an agreement with Turbo Data Systems, Inc. (Turbo Data) for a variety of processing and collection services, and operation of a local customer service center. As compensation for special collection services associated with citations that remain unpaid after a base level of collection efforts, Turbo Data receives 24% of collected revenues.

2 HONORABLE MAYOR AND CITY COUNCIL May 18, 2015 Subject: Establishment of Parking Penalty and Late Penalty Resolution Page 2 ANALYSIS There are certain categories of parking violations that have a direct impact on traffic safety, the environment, and the quality of life in neighborhoods. Issuance of citations for non-compliance with safety-related and street sweeping violations, such as parking in a crosswalk or in a posted No Parking zone for street sweeping activities, helps to heighten awareness around roadway safety and the need for curbs to be free of parked vehicles to optimize the effectiveness of street sweeping, with the goal of changing motorist behavior. The proposed resolution will increase twenty-seven parking penalties between $5 and $10, as highlighted on the attached proposed Schedule of Parking Penalties and Late Payment Penalty for Parking Violations. Through the existing processing and collection services agreement, Turbo Data pursues collection of parking citations through a variety of methods, including sending courtesy and past due notices, and placing holds on vehicle registration through the Department of Motor Vehicles (DMV). By the time a citation has been sent to the DMV for a registration hold, the registered vehicle owner has been sent a minimum of three notices, including the original citation, outlining the process to either pay or appeal the citation. The agreement provides for special collection services for citations that remain unpaid, including additional notices, follow-up research and filing the debt with credit bureaus, for which Turbo Data receives 24% of any revenue collected. Adding the cost of collection of unpaid citations to the fine amount, as authorized by the Vehicle Code, will enable the City to collect the full amount of the parking citation due to the City. It is estimated that the increased parking citation fines and special collection fees will generate approximately $700,000 in additional annual revenue. It is recommended the new parking penalties become effective July 1, EVALUATION AND FOLLOW UP The recommendations associated with the increased parking penalties and the special collections fee does not require follow-up. POLICY ALTERNATIVES City Council could elect not to increase parking penalties or add the cost of special collection efforts onto the amount of unpaid parking citations. This is not recommended as the City would need to offset the loss of additional revenues that were projected to balance the Proposed Operating Budget, and would forego the opportunity to collect the full amount of unpaid parking citations due to the City.

3 HONORABLE MAYOR AND CITY COUNCIL May 18,2015 Subject: Establishment of Parking Penalty and Late Penalty Resolution Page 3 PUBLIC OUTREACH This memorandum will be posted on the City's website for the June 9, 2015 Council meeting. COORDINATION This memorandum has been coordinated with the City Attorney's Office and the City Manager's Budget Office. FISCAL/POLICY ALIGNMENT The proposed fine increases are part of budget balancing in the Proposed Operating Budget for the General Fund. COST SUMMARY/IMPLICATIONS The recommended changes to the parking citation penalties and the special collection fee for unpaid citations will generate an estimated $700,000 in additional annual revenue. CEOA Statutorily Exempt, File No. PP10-067(a), CEQA Guidelines Section No Rates, Tolls, Fares and Charges. /s/ JIM ORTBAL Interim Director of Transportation For questions please contact Laura Wells, Department of Transportation Deputy Director at (408) Attachment

4 RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF CITY OF SAN JOSE SETTING FORTH THE SCHEDULE OF PARKING PENALTIES AND LATE PAYMENT PENALTY FOR PARKING VIOLATIONS AND REPEALING RESOLUTION NO , EFFECTIVE JULY 1, 2015 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. SCHEDULE OF PARKING PENALTIES The following parking penalties are hereby established for violations of San Jose Municipal Code (SJMC) and California Vehicle Code (CVC) regulations: SJMC Section Offense Base State Law Total Penalty Surcharges* Penalty Mobilehome or trailer parking Obedience to parking space Markings Unattended motor vehicle-keys in ignition Parking not to obstruct traffic Parked in parkways prohibited Prohibited to stop, stand or park vehicles where "No Parking" Parked for certain purposes 62, prohibited Parking on hills, curbing wheels No parking on narrow streets Parked in alleys Park on left-hand side of one way street restricted " California Government Code Sections 70302, 76000, 76100, 76101

5 SJMC Base State Law Total Section Offense Penalty Surcharges* Penalty Parking at an angle Parking prohibited where use of street necessary for cleaning, repair or construction of street or installation of underground facility Parking prohibited where use of street authorized for other than normal flow of traffic Violation of terms of permit for loading or unloading Use of streets for storage of vehicles prohibited Parking for disabled persons Reserved for disabled persons Parked in excess of posted time limit; Sunday & legal holidays excepted Stopping, standing or parking vehicles on certain streets, or portions thereof, during all or certain hours Parking in reserved areas Commercial vehicle parked on residential street Parking restrictions commercial vehicle Parking Circle-Drive *California Government Code Sections 70302, 76000, 76100, 76101

6 SJMC Section Offense Base State Law Total Penalty Surcharges* Penalty City Hall frontage parking restriction City employee parking lotspermits-use City Hall alley-parking restrictions Minnesota Avenue- off-street lot parking Parked Out of Space - Metered Expired/Unpaid Meter Failure to operate meter, meter not fully activated Failure to Pay at Lot Storage lien off-street parking Off-Street Parking Restrictions Parking in marked spaces Deposit of money in meter Unlawful to park after time expired Unlawful to extend time beyond limit Leaving vehicle after receipt of meter violation Deposit of money in meterairport parking Unlawful to park after time expired airport Residential parking permit required SJSU student parking area restrictions "California Government Code Sections 70302, 76000, 76100, 76101

7 SJMC Base State Law Total Section Offense Penalty Surcharges* Penalty Freight loading zone, use restriction Freight loading zone, time restriction A Special Freight Loading Zone permit required B Violation of Special Freight Loading Zone permit - usage Passenger loading zone, use restriction Passenger loading zone, time restriction Large Vehicle Parking City Parks Regulations Airport Parking Regulations *California Government Code Sections 70302, 76000,76100, 76101

8 cvc Section Offense Base State Law Total Penalty Surcharges* Penalty 21211(b) Parked in a bike path/lane (a) Parked in violation of Administrative Rules (a) Parked in an intersection (b) Parked blocking a crosswalk (c) Parked in a safety zone (d) Parked w/in 15' of a fire station driveway 22500(e) Parked blocking a driveway (f) Parked on/blocking sidewalk (g) Parked obstructing traffic beside excavation 22500(h) Double parked (i) Parked in a bus zone Parked in a tunnel (k) Parked on a bridge (1) Parked blocking a disabled sidewalk access Parked in a fire lane Parked the wrong way/over 18" from the curb Parked in space reserved for disabled *California Government Cpde Sections 70302, 76000, 76100, 76101

9 cvc Section Offense Base State Law Total Penalty Surcharges* Penalty Parked w/in 15'of afire hydrant Unattended unset parking brake Parked w/in T of a railroad track Parked blocking a disabled sidewalk access Entering an occupied intersection SECTION 2. LATE PAYMENT PENALTIES Late payment penalties shall be added to the Total Penalties as follows: A one-time late payment penalty of thirty-five dollars ($35.00) shall be added if the Total Penalty has not been paid within ten (10) days of the mailing of the notice of delinquency. SECTION 3. DEPARTMENT OF MOTOR VEHICLES SERVICE FEE A service fee for unpaid parking penalties shall be added to the Total Penalties as follows: A one-time service fee of three dollars ($3.00) shall be added if the Total Penalty has not been paid within forty (40) days of the notice of parking violation and a hold has been placed on the vehicle registration through the Department of Motor Vehicles. SECTION 4. CREDIT CARD SERVICE FEE A one-time service fee of three dollars ($3.00) for parking penalties paid by credit card shall be added to the Total Penalties, which shall be collected by the City or by the City's Parking Citation Processing and Collection contractor, to defer the cost of processing and collecting credit card payments. California Government Code Sections 70302, 76000, 76100, 76101

10 SECTION 5. FRANCHISE TAX BOARD COLLECTION FEE A collection fee for unpaid parking penalties and associated late payment penalties shall be added to the Total Penalties as follows: A one-time service fee of thirty-five percent (35%) of the Total Penalties owed shall be added if the Total Penalties have not been paid prior to the mailing of the Franchise Tax Board Pre-lntercept Notice. SECTION 6. SPECIAL COLLECTION FEE A collection fee for unpaid parking penalties and associated late payment penalties shall be added to the Total Penalties as follows: A one-time service fee of twenty-four percent (24%) of the Total Penalties owed shall be added if the Total Penalties have not been paid prior to the mailing of the Special Collection Notice. SECTION 7. Resolution No , setting forth the Schedule of Parking Penalties, effective January 1, 2011, is hereby repealed. SECTION 8. The provisions of this Resolution shall be operative commencing on July 1,2015. ADOPTED this day of, 2015, by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: ATTEST: SAM LICCARDO Mayor TONI TABER City Clerk