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Recommendation to request City Attorney to prepare an ordinance establishing guidelines for downtown parking meter rates and revenue sharing between the City and Downtown Long Beach Associates.
(Districts 1,2)
DISCUSSION
With the adoption of the Fiscal Year 2005 budget, the City Council authorized the
increase of rates in the Downtown Parking Meter Zone. Subsequent to this action, City
staff and the Downtown Long Beach Associates (DLBA) met to discuss the impact of
increasing parking meter rates and how best to implement the change. Two primary
concerns were voiced by the DLBA: how to mitigate the impact of a rate increase on
Downtown residents and the need to provide for continued investment in the area to
sustain its economic success.
Currently the parking meter rate is $1 .00 per hour from 9:00am - 6:00pm. To increase
revenue further, it is proposed the time be extended to operate from 9:00am - 9:00pm.
While this recommendation is appropriate for core business areas, it will.unduly impact
the Arts District and residential areas; therefore, it is recommended that the Downtown
have different enforcement areas. (Exhibit A - provides a map of proposed rate
differences and Exhibit B -details proposed operating hours and rates.)
Historically, the City has provided a portion of the Downtown parking meter revenue to
the DLBA (Exhibit C). These funds were used to supplement DLBA efforts in promoting
the Downtown businesses and events. With the recommended changes, Downtown
parking meters will generate approximately $1,000,000+ in General Fund revenue. The
City and DLBA recommend the following revenue sharing proposal:
FY05 = $0 to DLBA
Y06, FY07, FY08 =$140,000 to DLBA
Y09 and beyond =
50 percent of net revenue to City General Fund
25 percent of net revenue to DLBA for infrastructure improvements
25 percent of net revenue to DLBA for Downtown marketing
This letter was reviewed by Deputy City Attorney Lisa Malmsten on June 14. 2005, and
Budget Management Officer David Wodynski on June 13,2005
TIMING CONSIDERATIONS
City Council action on this matter is not time critical.
FISCAL IMPACT
The City is in the process of optimizing parking operations, which will result in both
administrative savings and reduction in maintenance costs with the introduction of new
technology. It is estimated parking revenue will increase significantly over the next five
years providing new revenue to the General Fund. The agreement limits revenue
sharing during Fiscal Years 2005-2008 allowing the City more time to address the
General Plan structural deficit. In Fiscal Year 2009, the amount increases to 50 percent of
net proceeds being transferred to the DLBA to support downtown activities
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
[Respectfully Submitted,]