TITLE
Recommendation to authorize City Manager to execute an agreement with the Fourth Street Parking and Business Improvement Area (FSPBIA) for the City to process and remit net parking revenues generated from the private parking lot located at 2000 East 4th Street to the FSPBIA; and
Decrease appropriations in the Transportation Fund (SR 182) in the Public Works Department (PW) by $25,000 for parking lot lease payments no longer made by the City, and increase appropriations in the General Fund (GF) in the Public Works Department (PW) by $25,000, for parking meter collections, credit card transaction costs and net revenue transfers to the FSPBIA, offset by parking revenues. (District 2)
DISCUSSION
On February 10, 2009, the City Council authorized the lease (Lease) of the parking lot at 2000 East 4th Street (Parking Lot), at the southeast corner of the intersection of 4th Street and Cherry Avenue, for public parking purposes, at a monthly rental rate of $2,000, funded through Proposition A funds. Historically, the 4th Street Parking and Business Improvement Area (FSPBIA), which includes the business district known as Retro Row, funded the maintenance and management of the Parking Lot. The Department of Public Works collected the parking revenues and processed credit card transactions related to the Parking Lot and applied the net revenue to reimburse Proposition A funds. The FSPBIA assumed the Lease and funds the monthly Lease payment as well as maintenance and management costs of the Parking Lot, effective as of January 1, 2016. As a result, Proposition A funds will no longer be used to support the monthly lease payments for the Parking Lot.
The FSPBIA requests that the City continue to collect parking revenue and process credit card transactions from the single pay-station located in the Parking Lot. The Parking Lot is essential for the continuing success of the Retro Row business district. Under the new agreement, the City’s costs related to revenue collection and credit card processing will continue. City costs will be supported by Parking Lot revenues. Since the FSPBIA now funds the monthly Lease payment, together with maintenance and operational costs of the Parking Lot, the net parking revenues will be remitted to FSPBIA to support these costs.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 24, 2016 and by Budget Management Officer Victoria Bell on April 6, 2016.
TIMING CONSIDERATIONS
City Council action is requested on May 3, 2016, to ensure the agreement is in place expeditiously.
FISCAL IMPACT
Effective January 1, 2016, the Parking Lot lease payments have been paid by the FSPBIA. Therefore, an appropriation decrease of $25,000 in the Transportation Fund (SR 182) in the Public Works Department (PW) is included in the recommendation as lease payments will no longer be made by the City using Proposition A funding. The Public Works Department will continue to manage parking meter collection and payment processing, as well as remit net revenues to the FSPBIA. To support these acitvities, the recommendation also includes a request to increase appropriations by $25,000 in the General Fund (GF) in the Public Works Department (PW), fully offset by Parking Lot revenues.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER