Honorable Mayor and Members of the City Council. Parking Policies and Fee Schedule Adjustments for City-Owned Garages

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1 Office of the City Manager To: From: Honorable Mayor and Members of the City Council Christine Daniel, Interim City Manager Submitted by: Andrew Clough, Director, Public Works Subject: Parking Policies and Fee Schedule Adjustments for City-Owned Garages RECOMMENDATION Adopt a Resolution: 1. Establishing new policies and fees for processing garage cardkeys; 2. Adjusting hourly parking rates at the Center Street Garage to help reduce coin handling; 3. Establishing new policies and fees for vehicles with disabled placards at City Garages; and 4. Rescinding Resolution No. 65,177 N.S. SUMMARY In March 2012 the installation of new Parking Access and Revenue Control System (PARCS) Equipment is automating all City garages, and will require monthly parkers at each of the City-owned Garages 1 to be issued new cardkeys. Coordinated with this transition, staff proposes to replace the current $25 refundable cardkey deposit for monthly parking patrons with a 1-time processing fee of $25. The Center Street Garage has a promotion for morning hours, when parking is charged at $1.50 for up to 2-hours if you exit the garage before 11:00am weekdays, or by 2:00pm urday. Staff recommends amending the Center Street morning rates to be $1.00 for the 1 st hour and $2.00 for up to 2 hours, if you exit the garage by 11:00am weekdays, or by 2:00pm urday. Adjusting these rates to whole numbers will help lessen the amount of coin transactions and streamline parking payments; and processing fewer coins should reduce the City s cash handling charges. Vehicles displaying Disabled Persons (DP) placards currently park at City garages without a fee. The Parking Management Operator employees, who handle parking transaction payments, release the exit gates for vehicles with DP placards. With garage automation there will be no cashiers at booths and thus no timely and effective mechanism to provide payment exemptions for vehicles with DP placards. 1 City Garages: Center Street, Telegraph Channing, and Oxford Street Milvia Street, Berkeley, CA Tel: (510) TDD: (510) Fax: (510) Website:

2 Parking Policies and Fee Schedule Adjustments for City-Owned Garages FISCAL IMPACTS OF RECOMMENDATION There are no costs to the City for the recommendation. All costs to implement changes to cardkey processing fees for all garages, morning flat rates at Center Street, and parking fees for DP placards at all garages are covered under the City s flat rate contract with LAZ, the City s Parking Management Operator. Cardkey Processing Fee The change in cardkey fees from a refundable deposit to a cardkey processing fee will save time for City and LAZ staff, who are both involved in the process to issue refund requests. Staff believes that elimination of cardkey deposit refunds will discourage patrons from the stop/start participation in the monthly parking program during short break periods from work and school. To implement the cardkey processing fee, staff will credit the $25 deposits already paid by current monthly parking participants from a refundable deposit to the processing fee payment for their account. Patrons who wish to opt out of the monthly parking program during a 1-time notification period would have until May 31, 2012 to make this choice, and receive their $25 refund. It is anticipated that based on current parking demand and the timing of the fee implementation, refund requests received will not have an impact on garage revenue. Center Street Parking Rate Adjustments Rate adjustments for 2-hour morning parking at Center Street will help reduce fees for handling coins, and based on current patterns of parking demand, can produce an increase in revenue without increasing the overall parking rates. The objective for rounding the rates to whole dollars is to reduce coin processing fees charged by the City s bank and revenue courier provider, and help streamline pay station transaction time. This is also consistent with rates at both Telegraph Channing and the Oxford Street Garages. Parking fees remain lower than the hourly on-street parking meter rate of $1.75 per hour. During a 3 month period in fall 2011, the Center Street Garage averaged 1,280 vehicles per month that took advantage of the promotional morning rate of $1.50 for up to 2 hours of parking. Based on this demand, reducing the 1 st -hour rate to $1 and increasing the rate for up to 2-hours to $2 has an estimated gross revenue increase of 25% or $7,670 annually. The following tables show the current and recommended parking rates. Current Rates: Center Street Garage Current Hourly Rates Minute Increments Exit by 11AM Exit after 11AM Exit by 2PM Exit after 2PM & All Day Sun Up to 1 hour (60 min) $1.50 $1.00 $1.50 $ hrs ( min) $1.50 $3.00 $1.50 $ hrs ( min) $6.00 $6.00 $6.00 $ hrs ( min) $10.00 $10.00 $10.00 $10.00 Page 2

3 Parking Policies and Fee Schedule Adjustments for City-Owned Garages 4+ hrs (daily maximum) Minute Increments Exit by 11AM Current Hourly Rates Exit after 11AM Exit by 2PM Exit after 2PM & All Day Sun (240+) $15.00 $15.00 $15.00 $15.00 Adjusted Rates: Center Street Garage Adjusted Hourly Rates Minute Increments Exit by 11AM Exit after 11AM Exit by 2PM Exit after 2PM & All Day Sun Up to 1 hour (60 min) $1.00 $1.00 $1.00 $ hrs ( min) $2.00 $3.00 $2.00 $ hrs ( min) $6.00 $6.00 $6.00 $ hrs ( min) $10.00 $10.00 $10.00 $ hrs (daily maximum) (240+) $15.00 $15.00 $15.00 $15.00 Disabled Placard Rate Adjustments The recommendation does not alter off-street surface lot DP parking at the Berkeley Way and Elmwood lots, where parking meters are used. During FY 2011, a combined total of 15,089 vehicles displaying DPP parked at City garages and received a fee waiver. For other vehicles, the current daily maximum of $15 is charged after 4 hours of parking at the Center Street and Oxford Garages, or $20 after 5 hours of parking at Telegraph Channing. Estimated Additional Revenue: charging vehicles displaying disabled person placards the current hourly parking rates at City garages (Center Street, Telegraph Channing, and Oxford) is expected to generate additional gross revenues from these garages. The potential annual revenue in the following table is based on all vehicles parking for the specified duration of time (a range from the minimum of up to 1 hour, or 2 hours, or daily maximums) at each garage. Garage Average DPP/Month Annual Revenue from Charging DP Parking Up to 1 hour 2 hours 4+ hours Center Street 838 $10,059 $15,089 $150,885 Telegraph Channing 211 $2,502 $5,004 $45,036 Oxford 209 $2,528 $7,584 $45,036 Totals $15,089 $27,677 $233,841 Revenue will be credited to the revenue account for each garage: Center Street ( ); Telegraph Channing ( ); Oxford Garage ( ) Page 3

4 Parking Policies and Fee Schedule Adjustments for City-Owned Garages CURRENT SITUATION AND ITS EFFECTS Cardkey Processing Fee Our City Garages have established monthly parking programs with different allotments of monthly parking spaces for each location. In addition to the monthly parking fee ($150), participants currently pay a refundable $25 fee for a cardkey that provides garage access and egress. Some monthly parkers cancel, then restart their monthly contracts on a short-term basis (less than 2 weeks), such as during winter breaks and summer vacations. This action creates stop/start record keeping and check processing cycles in order to refund and later receive the $25 cardkey deposits. In early April 2012, the new PARCS equipment is scheduled to go live in all City garages. This equipment requires all monthly parkers to be issued new cardkeys, so the timing of this change will correspond to updating monthly program participant records. Center Street Parking Rate Adjustments The Center Street Garage has parking rates that provide an incentive for short-term parking during morning hours ($1.50 for up to 2 hours of parking, exiting by 11:00am weekdays, or by 2:00pm urday). Approximately 1,270 patrons per month take advantage of this morning parking, generating revenue of about $1,900 per month. At present, parking attendants are on site to receive payments and provide change, as needed; this staffing will change in the coming month, with the introduction of PARCS. PARCS will automate operations at all City parking garages, and there will no longer be cashiers to take parking payments and issue change. Instead, Pay-on-Foot machines will be installed in each facility, and these allow patrons to pay by cash or credit card before returning to their vehicles to exit. There will also be the option to pay at a drive up machine when exiting the garage, which will accept only credit cards. Along with the implementation of PARCS, parking ambassadors and security personnel will be on-site to assist patrons and answer questions. In addition, garage managers will be able to see and speak with patrons who require any parking assistance using a centralized command center at the Telegraph Channing Garage, which will be equipped with camera monitors and an intercom system covering all 3 garages. Disabled Placard Fee Through March 2012 City garages are staffed by employees of the Parking Management Operator who handled parking transaction payments, and released exit gates for vehicles displaying DP placards without a fee. The installation of the new Parking Access and Revenue Control System (PARCS) currently being installed automates the garages and there is no timely and effective mechanism to provide payment exemptions for vehicles with DP placards. Neither the Americans with Disabilities Act (ADA) nor the California Vehicle Code (CVC) have regulations specific to vehicles with disabled placards used in off-street parking facilities (garages). Other private garages in Berkeley (Library Gardens, Allston Garage, UC Golden Bear, and Promenade) charge hourly parking rates for DP placard holders, Page 4

5 Parking Policies and Fee Schedule Adjustments for City-Owned Garages as do the garages in cities such as Walnut Creek, Oakland, and San Francisco. The Commission on Disability reviewed the recommendation for paid parking at its February 8, 2012 meeting, and had no comment and took no action. There is a separate process underway by City staff to address fraudulent use and abuse of disabled placards in Berkeley. BACKGROUND Council approved execution of the contract with LAZ Parking for off-street parking facilities management in June Since then, the City s Parking Services Manager has worked with LAZ and the PARCS equipment provider on the transition of the garage management, equipment installation, and program development. Council established the morning flat rate at the Center Street Garage after receiving requests in 2004 from the Downtown Merchants Association and the Farmers Market. The policy of the City has been to maximize available parking for short-term usage, and limit the supply of long-term commuter parking. Disabled placard parking has been waived for the full value of time at garages, the same as for on-street parking at meters. In recent years both private and other municipal garages have been charging for DP placards parking in off-street facilities. There is also growing evidence of increased use of fraudulent placards, and abuse of DP placards by those not authorized as holders. RATIONALE FOR RECOMMENDATION With the current transition of equipment and new cardkeys, staff recommends coordinating the change from a refundable deposit for monthly parking cardkeys to a processing fee of the same amount. Program participants would receive a credit for their existing deposit as the new processing fee, or have until May 31, 2012 to close their monthly parking account and receive the $25 refund. Patrons choosing to opt-out of the monthly parking program due to the processing fee (or any other reason) would have until May 31, 2012 to make this choice. At the Center Street Garage, adjusting the hourly morning rates to whole dollars is an effort to reduce coin processing fees, rather than continuing the rate of $1.50 that often requires patrons to make coin transactions. This is also consistent with the whole dollar rates at the other City garages. While the PARCS equipment will accept coins, bills or credit cards, inserting coins undoubtedly slows down the payment process. Lessening the amount of coin handling by the City s bank and revenue courier service provider (Brinks) is expected to produce a cost savings from reduction of their fees. Regarding DP placards, the City is currently automating its off-street garages. It is an appropriate time to be consistent with all transactions for vehicles using the garages since the automation does not provide a practical mechanism to differentiate between vehicles with and without DP placards. Page 5

6 Parking Policies and Fee Schedule Adjustments for City-Owned Garages ALTERNATIVE ACTIONS CONSIDERED There are no functional alternatives to the recommended actions. CONTACT PERSON Farid Javandel, Transportation Manager, Public Works, Danette Perry, Parking Services Manager, Public Works, Attachments: 1: Resolution Page 6

7 RESOLUTION NO. ##,###-N.S. ESTABLISH POLICIES AND FEE ADJUSTMENTS FOR THE CENTER STREET GARAGE, TELEGRAPH CHANNING GARAGE, AND OXFORD GARAGE; AND RESCIND RESOLUTION NO. 65,177-N.S. WHEREAS, Center Street, Telegraph Channing, and Oxford Garages have established monthly parking programs and rates, including payment of a refundable $25 fee for a cardkey that provides garage access and egress; and WHEREAS, standardized Parking Industry processes have moved away from collecting refundable deposits and migrated to implementing fees for specific services; and WHEREAS, in March 2012, the installation of new revenue control equipment will automate all City Garages (operating with machines only, no cashiers), including pay stations that accept cash and credit cards; and WHEREAS, adjusting the parking rates at the Center Street Garage to whole dollars can help streamline pay station payment transaction time, and reduce both the amount of coins used and the cash handling charges to process them; and WHEREAS, in recent years both private and other municipal garages have been charging for disabled placard parking in off-street facilities; and WHEREAS, adopting hourly parking rates to include vehicles displaying disabled persons placards is projected to generate additional revenue for the City; and WHEREAS, this Resolution replaces the policies and fee schedules for City Garages established by Resolution No. 65,177-N.S. NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that respective policies and fees for the municipal parking garages are established as follows: (1) The City s monthly parking program will charge program participants a $25 processing fee for each cardkey used to provide access and egress for the designated garage they use; and current participants who continue in the program will have their existing deposit transferred for this payment, or they may opt-out by May 31, 2012 and receive a refund of their $25. (2) The City s hourly parking rates at Center Street, Telegraph Channing, and Oxford Garages will include charging fees to vehicles displaying disabled placards. This does not alter off-street surface lot disabled placard parking at the Berkeley Way and Elmwood lots.

8 (3) The Center Street Garage shall have the following hours of operations and shall charge the following fees: Center Street Garage: Mon Fri: 5:15 AM to 12:00 Midnight : 7:00 AM to 12:00 Midnight Sun: 12:00 PM to12:00 Midnight Minute Increments Center Street Hourly Rates Exit after Exit by 11AM 11AM Exit by 2PM Exit after 2PM & All Day Sun Up to 1 hour (60 min) $1.00 $1.00 $1.00 $ hrs ( min) $2.00 $3.00 $2.00 $ hrs ( min) hrs ( min) hrs (240+) (daily max) Validations* $1.00 increments * Issued electronically via participating Merchants $1.00 increments $1.00 increments Center Street Flat Rates After 5 PM flat rate 5.00 Overnight charge Lost ticket Monthly Parking Cardkey processing fee Monthly parking (not to exceed 180 spaces) Monthly HOV parking Motorcycle monthly Special event Up to Bicycle Parking Free Early bird (M-F, in by 9am, out by 6pm) 8.00 $1.00 increments (4) The Telegraph Channing Garage shall have the following hours of operations and shall charge the following fees: Telegraph Channing Garage Mon Thu: 7:00 AM to 1:00 AM Fri-: 7:00 AM to 2:00 AM Sun: 8:00 AM to 10:00 PM Telegraph Channing Hourly Rates Minute Increments Validated* Non-Validated Up to 1 hour (60 min) hrs ( min) hrs ( min) hrs ( min) hrs ( min) Page 2

9 Telegraph Channing Hourly Rates Minute Increments Validated* Non-Validated 5+ hrs (daily max.) (301+ min) * Issued electronically via participating Merchants Telegraph Channing Flat Rates After 8PM flat rate 4.00 Overnight charge Lost ticket Monthly Parking Cardkey processing fee Monthly parking (not to exceed 105 spaces) Motorcycle monthly parking Special event Up to Bicycle Free Early bird (M-F, in by 9am, out by 6pm) 8.00 (5) The Oxford Garage shall have the following hours of operations and shall charge the following fees: Oxford Street Garage Mon Sun: 8:00 AM to 12:00 Midnight Oxford Street Hourly Rates Minute Increments Hourly Rates Up to 1 hour (0-60 min) hrs ( min) hrs ( min) hrs ( min) hrs (daily maximum) ( min) Validations* $1.00 increments * Issued electronically via participating Merchants Limit- 3 validations per ticket Oxford Street Flat Rates After 5PM flat rate 4.00 Overnight charge Lost ticket Monthly Parking Cardkey processing fee Monthly parking (not to exceed 20 spaces Early bird (M-F, in by 9am, out by 6pm) 8.00 Motorcycle monthly Special event Up to Bicycle Free Early bird (M-F, in by 9am, out by 6pm) 8.00 BE IT FURTHER RESOLVED that Resolution No. 65,177-N.S. is hereby rescinded. Page 3

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