Fiscal Note

Seattle Center Parking Rates

 

Department:

Seattle Center

Contact Person/Phone:

Margo Polley 684-7189

DOF Analyst/Phone:

Helen Welborn 233-7884

 

Legislation Title:     AN ORDINANCE relating to the Seattle Center Department; amending Section 17.19.010 of the Seattle Municipal Code, pertaining to Seattle Center parking charges

 

Summary of the Legislation:     The legislation authorizes increases to event-related parking rates to better reflect current market rates.  It also establishes greater flexibility (within a limit) for setting rates. 

 

Background:     The Seattle Center owns and operates six parking facilities:

·          Mercer Garage

·          Lot 4

·          1st Ave N Garage

·          Lot 5

·          5th Ave Parking

·          Lot 6

 

Revenue from these facilities is primarily generated from daily and monthly parking, though it also includes revenue from parking scrip, and reserved parking.

 

Parking revenue comprises approximately 15% of Seattle Center’s revenue.  Parking rates are set with regard to market forces (competition, affordability, demand management) and parking management strategies (carpool incentives, convenient parking for patrons attending events at various Seattle Center facilities, etc.).

 

While Seattle Center’s current rate ordinance caps event parking rates at $8, on Sonics game nights the Center’s private parking lot competitors charge as much as $20.  By changing the rate ordinance to allow a wider range of rates, the Center will have greater flexibility to be competitive and generate additional revenue.  (The last rate increases at Seattle Center were in 1999 when the event rates were increase $1, from $7 to $8 for up to 10 hours at all facilities  except the 5th Ave Lot. At that time 5th Ave events rates were $4 (carpool) and $7 (non-carpool); those rates increased by $1 to $5 (carpool) and $8 (non-carpool) in 2001.)

 

This proposed ordinance amends the existing ordinance by:

·        Allowing a wider pricing range (up to $20) in daily parking rates.  This provides greater flexibility to be competitive and generate additional revenue, while continuing to meet our many other goals, including providing affordable parking.  At this time we anticipate raising parking rates from $8 to $10 on Sonics games nights only.  There may be opportunities in selected locations and certain times to charge more and still be competitive, while leaving other locations priced as low as $5.

·        Allowing a wider pricing range (up to $100) in monthly parking rates.  Monthly parking is currently capped at $80 while our competition is over $100.   At this time, Seattle Center anticipates raising the monthly rate $5 per month in both 2003 and 2004. 

 

The department will continue to push rates within the constraints of the price elasticity of demand to maximize revenues.           

 

Changes that will be authorized by the legislation are shown in the table below:

 

Parking Categories

Existing

Proposed Range

Non-event (up to 10 hours)

$1-$7

$1-$8

Event (up to 10 hours)

$3-$9

$3-$20

Monthly

$30-$80

$30-$100

Event Carpool (based on occupancy)

Up to $11

Up to $20

Event Carpool (disabled permit)

Up to $10

Up to $15

Enforcement – surcharge on unpaid parking charge 14 days or more overdue

$15

$20

 

Public Private Partnership Review Status:  No

Is the legislation subject to public hearing requirements?  No

Fiscal Sustainability Issues (related to grant awards): No

 

Estimated Expenditure Impacts:

FUND     (List # and/or Account)

2002      

2003      

2004

None

 

 

 

TOTAL

 

 

 

           

Estimated Revenue Impacts:

FUND     (List # and/or Account)

2002

2003 Revenue     

2004 Revenue

11410 – Seattle Center Subfund

NA

204,701

282,701

11420 – Key Arena Fund

NA

0

0

 

 

 

 

TOTAL

 

204,701

282,701

 

Estimated FTE Impacts:

FUND     (List # and/or Account)

2002      

2003      

2004

NONE

 

 

 

TOTAL

 

 

 

 

Do positions sunset in the future?  NA

If yes, identify sunset date?

 

Other Issues:   This legislation brings Seattle Center parking rates up to current market prices, and increases flexibility in rate setting.