Form revised April 10, 2010

2011-2012 BUDGET LEGISLATION FISCAL NOTE

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Transportation (SDOT)	Margo Polley/684-8329	Stephen Barham/733-9084

Legislation Title: AN ORDINANCE related to parking rates; amending Section 11.16.121 of the Seattle Municipal Code to set new limits on parking rates at parking payment devices and to establish new policy objectives for setting parking rates.

Summary of the Legislation: This Ordinance amends Section 11.16.121 of the SMC to increase the existing maximum parking rate up to $4.00 per hour at parking payment devices, for parking in city rights-of-way and other city-controlled parking areas under the jurisdiction of the Seattle Department of Transportation (SDOT). 

Background: On-street paid parking is currently organized into a three-tier system.  Tier 1, the Downtown Urban Center bounded by Denny Way on the north, I-5 on the east, the waterfront on the west, and Chinatown/ID and Pioneer Square on the south, is currently priced at $2.50 per hour.  Tier 2 neighborhoods, which consist of mature business districts such as the University District and Capitol Hill, are priced at $2.00 per hour for short-term spaces.  Long-term (up to 10-hour) blocks in these areas, which are not adjacent to retail land uses and have lower parking demand, are priced at $1.25 per hour.  Tier 3 neighborhoods, which have lower parking demand, are priced at $1.50 per hour for short-term spaces, and $0.75 per hour for long-term. 

The proposed budget includes a recommendation to increase rates by $1.50 per hour downtown (Tier 1), from $2.50 to $4.00 per hour, and by $0.50 per hour in the Tier 2 and 3 neighborhoods outside downtown, to meet the City’s parking management, economic development, and transportation goals.  The proposed rate increase is the first in two years, with the previous increase having occurred four years prior to that. 

This legislation directs SDOT to set rates by individual neighborhoods based on observed occupancy with a new policy goal of achieving one or two open parking spaces per block face.

Pursuant to a Statement of Legislative Intent (118-3-A-1) adopted by Council during the budget process, SDOT expects to complete a city-wide study of parking occupancy during 2010.  SDOT will report back to Council’s Transportation Committee by January 15, 2010 with its evaluation of new parking rates for each neighborhood (not by rate tiers) to achieve policy objectives based on the findings of the 2010 parking occupancy study. 

For the proposed budget, SDOT planned to raise on-street rates from $2.50/hour to $4.00/hour in Tier 1 (downtown), and by $0.50/hour in Tier 2 and 3 neighborhoods.  This would move on-street rates closer to off-street rates and is estimated to result in a 9% increase in the availability of on-street parking spaces, improving access for customers and easing congestion and emissions associated with vehicles circulating to find parking. 

For the proposed budget, SDOT used the following planning assumptions to estimate revenues:

$4.00 per hour for short-term	$2.50 per hour for short-term; $1.25 per hour for long-term	$2.00 per hour for short-term; $0.75 per hour for long-term
Pioneer Square	South Lake Union	Westlake Avenue North
Waterfront	Uptown	Providence
Financial District	Broadway	Roosevelt
Retail District	First Hill	Green Lake
Belltown	Pike-Pine	12th Avenue
Chinatown / International District	Ballard	Fremont
	University District
	Uptown Triangle
	Denny Triangle

Before recommending a parking rate increase, the following parking management objectives were considered (as listed in Seattle Municipal Code 11.16.121): 

o To maintain adequate turnover of on-street parking—In areas where parking demand and occupancy are high, higher rates will encourage more parking turnover for short-term customer visits.  

o To encourage an adequate amount of on-street parking availability for a variety of parking users, efficient use of off-street parking facilities, and enhanced use of transit and other transportation alternatives—Off-street garage rates for short-term parking in the downtown area are significantly higher than on-street rates, causing drivers to search for much less expensive, but often unavailable, on-street parking.  Increasing the on-street parking rate will help reduce the pricing disparity for short-term stays between on-street and off-street parking.

o To reduce congestion in travel lanes caused by drivers seeking on-street parking—Recent traffic studies in New York City and Los Angeles documented that, on average, 30 percent of vehicles circulating downtown were made up of drivers circling for available on-street parking.

The proposed paid parking rate increase is intended to make on-street parking more accessible for shoppers and visitors.  These efforts are especially important considering the expected Center City growth and impending construction-related traffic and parking complications anticipated from the Alaskan Way Viaduct and Seawall Replacement project and other major transportation projects.

Based on planning assumptions used in the proposed budget, the assumed rate increase would result in additional estimated gross parking revenues of $4.8 million in 2011, offset by one-time implementation costs up to $628,000 plus first-year credit card processing costs of $312,000.  Annual gross parking revenues in 2012 and beyond specific to this proposal to increase the daytime paid parking rate would increase by an estimated $6.1 million, offset by estimated credit card processing costs of $416,000.

At this time, SDOT does not expect gross revenues or costs to be significantly different than planning assumptions used in the proposed budget.

__X_ This legislation has financial implications. Please complete all relevant sections that follow.

Summary of Changes to Revenue Generated Specifically From This Legislation:.

	Revenue Source	2011 Proposed	2012 Proposed
Total Fees and Charges Resulting From Passage of This Ordinance	Parking Fees General Subfund (00100)	$4.8 million	$6.1 million

Notes:  Hourly paid parking rates were last changed in the first quarter of 2009, from $1.50/hour citywide to a three-tiered pricing system ($1.50/$2.00/$2.50 per hour for short-term parking.) The estimated one-time installation and ongoing costs for 2011 are $940,000.  The estimated 2012 ongoing costs are $416,000.  The 2011 gross revenue estimate in the table above presumes a partial year, with a rate increase deployed in the first quarter.  The 2012 gross revenue estimate in the table above presumes a full year. 

Anticipated Total Revenue from Entire Program, Including Changes Resulting From This Legislation:

Fund Name and Number	Revenue Source	Total 2011 Revenue	Total  2011 and 2012 Anticipated Revenue from Entire Program
General Subfund (00100)	Parking Fees	$32.8 million	2011: $32.8 million   2012: $35.2 million
TOTAL		$32.8 million	$68.0 million

What is the financial cost of not implementing this legislation? The proposed rate increase will result in approximately $4.8 million of additional revenue to the General Fund for 2011 and $6.1 million in 2012.  From a parking management perspective, if the parking rate were not increased, on-street parking availability would continue to be at full capacity, and turnover would decrease because of the large difference between on- and off-street rates.

Does this legislation affect any departments besides the originating department?  This legislation may also affect the Department of Finance and Administrative Services (FAS), which collects cash from pay stations.  The 2011 Proposed Budget maintains a level of staffing that contemplates a slight increase in cash collections.

What are the possible alternatives to the legislation that could achieve the same or similar objectives? There do not appear to be alternatives to accomplish the management of parking demand.

Is the legislation subject to public hearing requirements? No.

· Other Issues (including long-term implications of the legislation): None.

Please list attachments to the fiscal note below: None.