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Attachment 2 - Cost Recovery EvaluationAugust 1, 2023 1 Memorandum To: Town of Los Gatos From: Dixon Resources Unlimited Date: August 1, 2023 Re: Parking Program Cost Recovery Evaluation Introduction By request of the Town of the Los Gatos (Town), Dixon Resources Unlimited (DIXON) is hereby providing an evaluation of three potential next steps for the parking program: introducing off-street paid parking only, retaining status quo, and introducing on- and off-street paid parking. This memorandum highlights the Town’s progress to date on previous recommendations and expands on the Town’s paid parking options, including the benefits and disadvantages, policy adjustments required, initial implementation steps, and financial impact of each option. This memorandum also reiterates general recommendations that should be applied regardless of what path the Town selects. The steps outlined in the 2019 Parking Roadmap, as well as this memorandum, should be taken incrementally with ongoing evaluation and community feedback to shape future actions. Steps outlined in either document do not need to be followed in exactly the same order as they are presented. The documents are meant to be used to highlight important considerations, measures, and best practices to optimize operations, regardless of the approach chosen. The Town is encouraged to adjust the implementation approach as needed to design a program that best fits the unique and ever-changing needs of the community. Goals As a reminder, the Towns goals for the parking program are to: •Develop a parking program that can grow and adapt over time while maintaining the small-town charm; •Achieve a balance between parking and loading options to support diverse needs of business owners, employees, customers, residents, and visitors; •Develop a financially-sustainable parking solution that supports downtown businesses while providing a customer-friendly parking experience; •Support downtown vitality through parking policies that improve access and safety; and •Provide ongoing management and oversight to track performance and optimize the operation. ATTACHMENT 2 August 1, 2023 2 Progress to Date Of the recommendations made within Phase 1 of the Parking Roadmap, the Town has made progress on the following:  Established a Downtown Employee Parking Permit Program. About 1,000 employee parking permits have been requested to date. However, these permits are free, meaning that the program does not generate any revenue to cover its own operating costs and does not contribute to the Parking Budget. Also, free permits make it harder to know when employees no longer need a permit as they have no incentive to communicate staffing updates to the Town. This makes it difficult to keep the permit pool database accurate and the Town may give more permits than needed over time.  Budgeted for a (quarter-time) Parking Program Staff Member. In June 2020, a temporary Parking Program staff member [0.25 Full Time Equivalent (FTE)] was hired to begin the Parking Roadmap implementation. The 0.25 FTE temporary position expired June 2023 and has been vacated by the current employee. Funding to keep this position has not been proposed. The burdened annual salary for a full-time Parking Manager position has therefore been included in the financial models for all parking program options that the Town is considering.  Released Requests for Proposal (RFPs) for Pay Station equipment and Mobile Payment application vendors to evaluate the proposed costs of each.  Data collection with License Plate Recognition (LPR) is possible as the Town has one purchased LPR system and is budgeting to acquire a second unit. The Town is only using it for enforcement at this moment and there is the opportunity to implement a policy to leverage LPR for data collection.  Identified wayfinding improvement cost estimates for fabricating and installing recommended signage for the greater Downtown area. The Town will be seeking approval of bids at a future Council meeting. Existing Conditions Today, the Town offers free on- and off-street parking, with time limited spaces set to a maximum of 90 minutes, two hours, and three hours. Time limits are in effect from Monday to Saturday, 9am to 6pm. The Town is currently running a pilot Employee Permit Parking Program. Employees in Downtown Los Gatos are currently offered parking permits free of charge. Employees in the Civic Center area (also known as the “Olive Zone”) are charged at an annual rate of $248 for permits. Additionally, there is a residential parking permit program that exists for five (5) districts charged at an annual rate of $42/permit. This report leverages the results of a financial modeling exercise that was completed with the following assumptions: • Parking space inventory counts reflect current, post-pandemic levels and includes deductions for on-street spaces now occupied by parklets. • Moving forward, any established Oak Meadow Park parking fee will apply to all visitors, including residents, seniors, and visitors with physical disabilities (all who are currently able to park for free). August 1, 2023 3 Program Scope As the Town considers the following parking program options, it will also have to decide whether the scope includes only the Downtown Zone or both the Downtown and Olive Zones. The map in Figure 1 below demonstrates the boundaries of each zone, while Table 1 below shows the inventory of parking spaces per zone. Inventory of Time Limited Parking Spaces* On-Street Off-Street # of Spaces, Downtown 440 435 # of Spaces, Olive Zone 175 23 Total # of Spaces 615 458 It is highly recommended for the Town to include the Olive Zone in the program scope from the onset, regardless of which option is selected. New regulations implemented in just one area often push parking issues to surrounding areas as drivers seek free or unregulated parking elsewhere. These impacts are termed “spillover effects.” Implementing paid parking in just the Downtown area will likely lead to drivers parking for free in the Olive Zone and Table 1. Parking Space Inventory Per Zone Figure 1. Map of Downtown and Olive Zone Boundaries Map prepared by Lynx Technologies, Inc. *Does not include ADA, employee permit, electric vehicle charging, or loading spaces. August 1, 2023 4 walking Downtown, creating parking supply challenges in the Olive zone. Implementing parking program changes at once to both zones will reduce spillover effects and ensure an equitable approach for residents, business owners, and employees in and around both areas. See Appendix B for a breakdown of projected paid parking revenue between Downtown and the Olive Zone for select scenarios. The Rationale for Paid Parking The options provided in this document include suggestions for a paid parking program to be implemented in the Town. The primary purpose of paid parking is as a parking demand management strategy, which encourages drivers to park in underutilized locations, improve availability in spaces requiring higher turnover, and encourage alternative modes of transportation when available. The industry uses a benchmark of 85% occupancy to determine whether parking management actions need to be taken—block faces that frequently see higher than 85% occupancy means that drivers will spend more time looking for parking, which leads to increased congestion and greenhouse gas emissions. The Parking Roadmap report stated that Los Gatos has a parking management challenge rather than a parking supply shortage. Paid parking is an effective strategy used by other Bay Area agencies like Alameda, Berkeley, Fremont, and Santa Rosa to manage the supply and demand of parking spaces. Aside from being a parking management strategy, paid parking can also provide benefits such as increasing flexibility for drivers and providing the potential to generate revenue that can be reinvested into the Town. When agencies set up time limits on parking spaces, it prevents patrons from staying, shopping, or enjoying the location for longer than the posted duration. Replacing time limits with a pay-to-stay model gives drivers the opportunity to stay for as little and as long as they want. With today’s technology, drivers can also conveniently extend their parking sessions via text or by a mobile app, which takes away the hassle of having to come out and pay at a pay station or meter. Paid parking also provides the opportunity to generate funds that can be reinvested into programs and infrastructure. If the Town proceeds with an option that generates revenue, the Town is encouraged to identify goals and projects to fund as part of the implementation process. This enables both the Town and the public to clearly see how paid parking revenues are reinvested. Some examples of projects the Town can invest paid parking revenue into include: Bay Area Agencies with Paid Parking in Downtown or Key Commercial Zones Alameda Berkeley Burlingame Daly City Fremont Mill Valley Oakland Redwood City San Anselmo San Francisco San Jose San Mateo San Rafael Santa Rosa South San Francisco Tiburon Vallejo Table 2. Select Agencies with Paid Parking in Public Spaces August 1, 2023 5 • Rebuild streetscape (such as for the N. Santa Cruz sidewalks) • Perform a feasibility study to consider building a garage to provide additional parking spaces (for example, on Lot 6) • Implement a downtown community shuttle • Perform parking lot maintenance, such as general restriping and resurfacing • Introduce dynamic parking guidance signs and systems to improve wayfinding The Town Council has already established a fund for parking revenues to be allocated for parking program and Downtown improvements. The fund includes revenue generated from the agreement with Tesla for its Supercharging network in the Northside Lot. Besides predetermining how paid parking revenue will be invested, it is also general industry best practice to ensure that where possible, paid parking is introduced either for both on- street and off-street locations simultaneously, or on-street first. This is because on-street spaces are considered the more “premium” spaces in terms of value to both businesses and customers. Overarching Strategies Regardless of the option selected by the Town, the following strategies should be applied to all options: • Oak Meadow Park Parking: The Town should shift responsibility of parking management at Oak Meadow Park to the parking program. This means that funding for the Park Services Officer will come from the Parking Budget, and the revenue from parking payments to be reallocated from the General Fund to the Parking Budget. This move would enable the Town to consolidate Oak Meadow Park as part of a cohesive parking management strategy, ensuring consistency and equity across all parking facilities. • Short-term Parking: The Town should implement one or two 30-minute time-limited parking spaces per block face to accommodate for quick stops, such as for deliveries, ride hailing, and pick-ups. These spaces will remain free for use and the time limit ensures fast turnover. They can either be applied at the beginning and/or end of each block face for convenience, or in the middle of each block face for even faster access to the shops on that block face and to free up corners for the potential installation of pay stations. • Employee Permit Program: The Downtown Employee Permit Parking Program is a pilot program that began in July 2022. After adjustments to the number of spaces allocated, a survey was completed in April 2023 that demonstrated 72% of participating employees experienced improvements in their parking experience. As such, the Town is recommended to conclude the pilot and permanently adopt a program such that it can continue to benefit workers in the Town’s Downtown. • Employee Permit Rates: Currently, the Town charges $248 annually for Olive Zone employee permits, while there is no fee for the Downtown employee permits. First, the Town should ensure that the same program rates prevail across both employee permit parking zones to prevent employees from paying a lower permit fee and walking to August 1, 2023 6 the other zone. It is recommended that the Town introduce a charge for the Downtown permits and reduce the cost of the Olive Zone permits to ensure equity between the two zones. Second, the Town should have two monthly prices: a regular permit rate and a low-income rate1. Offering permits with a monthly fee is recommended as it provides the Town with the most flexibility to adjust policies in the initial period and is ideal for temporary and part-time employees in roles that have higher turnover. The recommended rates to introduce are as follows: Low-Income Permit Rate $5/month (translate to $60/year) Regular Permit Rate $10/month (translates to $120/year) These rates are significantly lower than what was previously proposed in the Parking Roadmap as the Town piloted the Downtown Employee Permit Parking Program at no cost to employees, as opposed to introducing the program with a fee from the start. Rates are reduced to the amounts shown above to encourage adoption. In the financial modeling workbook, it was estimated that half of the employee permits sold would be at the low-income rate. • Rename the Olive Zone: The Town had named the Civic Center area “Olive Zone,” originally with the plan of ultimately identifying other zones and giving them color- based names. Currently, the term “Olive Zone” is used to refer to a geographic area that contains a no reparking rule. The color-based zone naming plan has not continued, and therefore the Town should consider relabeling the area with an easily referenced term related to the purpose or main landmarks of the area, such the “Civic Center Zone.” • Repurposing Parking Spaces: To implement an effective employee parking plan, the Town must re-evaluate which locations are ideal for employee parking so as not to impact visitor parking. To increase the quantity of dedicated employee parking spaces, the Town can consider repurposing the Alpine Lot (L7) into an employee parking lot and identifying employee permit-only spaces along Villa Ave. The Town should ensure that any on-street employee permit-only spaces are not directly in front of any businesses since that would displace parking from customers. • Residential Permits: The Town should introduce an escalating rate structure2 to the Residential Parking Permit Rate to encourage residents to utilize on-site parking options (such as in the garage or on the driveway) where possible and reduce excess car parking on-street. It is important to note that an escalating rate structure is intended to influence demand and not to generate higher revenue. Today, Los Gatos enables an address to register up to 4 permits and it is recommended that the Town 1 It is recommended that the Town identify the low-income rate criteria based on that of an existing government-operated or -regulated program in the Town or County (e.g., a utility program). Otherwise, the Town can set an income threshold, such as the State’s minimum wage level or according to Santa Clara County’s income limits. 2 The rate structure recommended here differs from that of the original Parking Roadmap. This is due to the addition of a low-income permit rate and a preference to maintain the first permit at the current rate. Additional permits escalate by $20, which is consistent with that of the original Parking Roadmap. August 1, 2023 7 continue with that cap. Verified low-income households3 should be able to register all 4 of their permits at the low-income rate. As the Town does not have data regarding which proportion of current residential permitholders may qualify for low-income status, the financial modeling performed for this report assumes no low-income permits sold. Low-Income Permit Rate $25/year Permit 1 $42/year Permit 2 $60/year Permit 3 $80/year Permit 4 $100/year • Staffing Improvements: The associated “Staffing Plan for Downtown Parking” memorandum (Staffing Plan) delivered in conjunction with this memorandum provides recommendations on staffing roles and levels per function, per parking program option. The Town’s parking operations are currently understaffed, and the Town should provide the required additional staffing counts listed to improve compliance and operational effectiveness. • Paid Parking Equipment: For the options that involve hourly paid parking, the Town should introduce pay stations (kiosks) and mobile payments as the two primary means of paying for parking with credit card. The Town will need to update the Town Code to enable mobile payments. The Town is advised to install one coin-enabled pay station per zone (a zone is identified as an area with the same rate structure) to increase accessibility for unbanked and technology- light people. The industry standard is to install one pay station for every ten on-street spaces, and one pay station per level of an off-street parking facility installed near pedestrian exit routes. Pay stations have a small footprint (approximately 1-2 square feet, see Figure 2) to accommodate any narrow sidewalks, and can be installed in the corners of blocks so that they also serve the attached side streets. Figure 3 indicates the proposed locations where pay stations would be placed. 3 Similar to the employee permit program, the Town can utilize the low-income criteria of an existing government-operated or -regulated program in the Town or County or set an income threshold. Figure 2. Demonstrated Footprint of a Pay Station August 1, 2023 8 Figure 3. Proposed Location of Pay Stations (for Option 3) Map prepared by Lynx Technologies, Inc. August 1, 2023 9 • Free All-Day Parking Lots and Signage: As the Town wishes to retain the Northside Lot and Miles Avenue area for free all-day parking, the Town should install additional signage that informs visitors and residents of this and directs them to the sites. Regardless of whether paid parking is implemented, this is a great strategy to improve utilization of these off-street lots. In the future, the Town should consider the option of implementing dynamic wayfinding signage, which can reduce congestion and confusion by informing drivers where to find available parking. Digital signs (such as the one shown in Figure 4) can be designed with the aesthetic of the community in mind so that the signage integrates visually with its environment. • Time Limits within the Olive Zone: Due to parking challenges around the Los Gatos High School, the Town can consider retaining time limits and a no reparking rule on top of any added parking regulations in the area. This can extend throughout the Olive Zone, or at minimum in areas impacted by student parking. This is to ensure that students who can afford to pay for parking all day do not take up premium on-street spaces that should be reserved for customers of local businesses. The Town should ensure a no reparking rule for time limits is included in the Town Code. • Outreach Strategy: The Town is encouraged to initiate an outreach plan to engage local businesses and the Chamber of Commerce on the future of the parking program. The plan should be tailored if Council has proceeded with a given option. If paid parking is to be implemented, the plan should focus on sharing the benefits and impacts of paid parking on local businesses and aim to host discussions on how parking revenues can be reinvested. Businesses are usually interested in investments which increase foot traffic and the customer length of stay and may be supportive of shuttle services, streetscape improvements, and merchant validation programs. What is a Merchant Validation Program? Merchant validation programs are a great way for businesses to encourage customers to visit or spend money at businesses in areas where paid parking is implemented. Businesses can acquire a package of coupons or codes at a bulk reduced rate, which they can then hand out to customers to activate a certain period of free parking. The amount of free parking time is decided by the agency. Customers will park in a paid parking space, visit a participating business, and the business provides a coupon or code to the customer which enables them to redeem, for example, one hour of free parking. This benefits customers, especially in the introduction of a paid parking program, as they earn free hours and educates them on how to use paid parking equipment. Businesses also mutually benefit by inviting in new customers who are looking for a parking validation coupon, which increases foot traffic and brand awareness. Figure 4. Sample digital signage with custom wrap to retain small town charm August 1, 2023 10 Parking Program Options The Town is presenting four main options to Council following the most recent presentation given in the December 2022 Town Council meeting. Option 1 addresses the direction that Council has requested further research into (which consists of introducing paid parking only for off-street locations), Option 2 refers to maintaining status quo, and Option 3 demonstrates the benefits of implementing a comprehensive paid parking program that is sustainable (in which projected expenses are covered by parking revenue) with two rate structures shared in the form of Option 3A and 3B. At a high level, the options are generally differentiated as follows: All options include shifting Oak Meadow Park parking responsibilities and revenue to the Parking Budget and require the procurement and installation of one (1) pay station on-site. The following section outlines the advantages and disadvantages of each option, and any considerations that are important to note. A table summarizing the key points can be found in Appendix A. OPTION 1 The Option 1 addresses the Council’s interest in reviewing the option of introducing only off- street paid parking in current limited day-time parking facilities, while keeping the on-street spaces free with a time limit of two hours: On-Street Strategy Off-Street Strategy Year 1 Net Impact 2-hour time limit (with no reparking rule) 3-hour time limit (Olive Zone), 2 hours free, pay to stay at $2.50/hour (Downtown) -$382,449.14 Pay-to-stay would only apply to off-street parking spaces that currently feature time limits. Any all-day parking locations (such as Northside Lot and the Miles Avenue area) will remain as is, without time limits or paid parking. Impacts The benefits of Option 1 include the ability to incrementally introduce the concept of paid parking to residents and visitors. It also provides the Town with a chance to purchase pay station equipment at a lower quantity and test it prior to a potential expansion of paid parking in the future. However, there are a number of concerns with the Option 1. Introducing paid off-street parking does not solve any on-street parking management issues (and may even exacerbate them) as there is no incentive to park in available off-street spaces when on- street spaces are free. Only long-term parkers, such as employees, would see a benefit to parking off-street due to the no reparking rule. OPTION 1 Retain status quo of time limits for on-street parking and introduce off-street paid parking. Program is not financially sustainable. OPTION 2 Retain status quo of time limits for on- and off-street parking. Program is not financially sustainable. OPTION 3A Introduce on-street and off-street paid parking at the lowest rates feasible. Program is financially sustainable. OPTION 3B Introduce on-street and off-street paid parking at market rates. Program is financially sustainable. August 1, 2023 11 Additionally, this model of offering 2 hours free and the option to pay and stay longer (also known as the customer value rate model) has been tested in other cities and invalidated as a sustainable option since it typically results in a majority of transactions being free. This results in minimal parking revenue to cover any capital and operating expenses, leading to a financially unsustainable program. This is not a recommended approach for the Town. Policy Requirements In order to implement this option, a no reparking rule must be introduced and enforced at all time-limited spaces in order for the time limits to be effective in increasing turnover and availability of parking spaces. The Northside Lot and Miles Avenue area should continue to have free all-day parking, without time limits. What is the No Reparking Rule? This rule prohibits reparking within the same block on the same side of the street within two (2) hours of the last session and is intended to ensure that time limits fulfill their purpose of reducing the length of stay. Without the no reparking ordinance, drivers can simply move their car to a new space each time, effectively nullifying the purpose of time limits and disincentivizing employee participation in the permit program. Enforcing the no reparking rule is best conducted using LPR technology, which can be programmed to monitor for time limits and reparking designations. Patrols should ideally occur hourly; however, the frequency depends on available staffing. This has been factored into the associated Staffing Plan. It is important to note that the no reparking rule explained here applies to time limits, whereas the Town’s current no reparking rule listed in Sec. 15.40.065 of the Town Code refers to no reparking in the context of vehicle storage. For the purposes of this program, the ordinance should indicate that the no reparking rule does not apply to any all-day parking lots established by the Town. Parking rates should be adjusted should occupancy rates exceed the standard industry benchmark of 85%. The Town can choose to either set this as a business rule or encode it within the Town Code. To support this, the Town should implement ongoing data collection for occupancy counts and utilization rates. Initial Implementation Steps If this option is selected, the key initial actions are:  Adopt a “Park Once” motto and establish a no reparking rule for all on-street locations.  Hire or reassign a current employee as a full-time Parking Manager to backfill the expired quarter-time role and identify the parking division’s organizational structure.  Review the Town Code to ensure the selected paid parking program can be executed, especially regarding the no reparking rule for time limits and payment methods.  Initiate shift of Oak Meadow Park parking responsibilities and revenue to the Parking Budget.  Install and procure a pay station for Oak Meadow Park.  Ensure consistent time limit signage stating the no reparking rule and enforcement hours is implemented in all impacted areas. August 1, 2023 12  Implement time limited parking signage for 30-minute short-term spaces.  Shortlist proposals and interview vendors proposals for the Pay Station and Mobile Payments RFPs.  Introduce escalating rate to the Residential Parking Permit Program.  Introduce the same low-income and regular rate across all employee parking permits.  Review the associated staffing plan and prepare to hire any additional staffing and adjust the enforcement schedule as described. OPTION 2 The Option 2 suggests minimal change to the current parking demand management strategy by retaining the existing time limits for on-street and off-street parking: On-Street Strategy Off-Street Strategy Year 1 Net Impact 2-hour time limit (with no reparking rule) 3-hour time limit (with no reparking rule) -$135,649.59 The Northside Lot and Miles Avenue area would continue to have free all-day parking, without time limits. The only change is the addition of a pay station at Oak Meadow Park with parking fees set to match those of Vasona County Park. Impacts This option is the considered the least impactful to the Town’s current operations and results. It is the easiest option to implement and reduces the amount of change that needs to be introduced to the public. Retaining time limits would also give employees an incentive to participate in the permit program. However, there are many downsides, including that current parking management issues are not addressed, and customers continue to go without the flexibility to pay-to-stay longer. Should the Town find that visitors and residents have difficulties finding long-term parking, then the Town may consider converting some time-limited lots to all-day parking. By selecting Option 2, the Town may have to revisit the parking management discussion in the near future in order to evaluate paid parking again or other review its strategies (though paid parking is already one of the most versatile parking management strategies). Also, continuing in the status quo is financially unsustainable. Policy Requirements To ensure that time limits are effective as a parking management tool, the Town must implement and enforce the no reparking rule for time limits, as explained in Option 1. Initial Implementation Steps If this option is selected, the key initial actions are:  Introduce the same low-income and regular rate across all employee parking permits.  Adopt a “Park Once” motto and establish a no re-parking rule for all time-limited areas.  Review the Town Code to ensure the selected paid parking program can be executed, especially regarding the no reparking rule for time limits. August 1, 2023 13  Initiate shift of Oak Meadow Park parking responsibilities and revenue to the Parking Budget.  Install and procure a pay station for Oak Meadow Park.  Ensure consistent time limit signage stating the no reparking rule and enforcement hours is implemented in all impacted areas.  Implement time limited parking signage for 30-minute short-term spaces.  Introduce escalating rate to the Residential Parking Permit Program.  Review the associated staffing plan and prepare to hire any additional staffing and adjust the enforcement schedule as described. OPTION 3 Options 3A and 3B both suggest paid parking at on-street and off-street locations. As mentioned in Option 1, the customer value rate model has been proven unsustainable and the Town is therefore recommended to select a paid parking model that does not include any free hours on-street. Under Option 3, there are two different rate models recommended where both lead to an outcome of excess revenue and cost recovery. OPTION 3A: implementing the lowest paid parking rates while still achieving cost recovery. On-Street Strategy Off-Street Strategy Year 1 Net Impact 0 hours free, Pay to stay at $1.25/hour 2 hours free, Pay to stay at $1/hour $365,203.46 OPTION 3B: implementing paid parking at market rates. On-Street Strategy Off-Street Strategy Year 1 Net Impact 0 hours free, Pay to stay at $3/hour 2 hours free, Pay to stay at $2.50/hour $1,984,873.65 This off-street strategy does not apply to any existing all-day parking lots (such as the Northside Lot and the Miles Avenue area). Impacts Introducing paid parking where parking was previously free could be a big change for the public. The benefits of this option include introducing low rates with a very cost-efficient off- street model, which are two factors in successfully directing longer-term drivers to off-street locations. On-street turnover is important as this ensures the availability of premium parking space for patrons who support the local business economy. However, introducing on-street paid parking requires a significantly higher number of pay stations, which increases both the one-time capital and recurring operational costs of the parking program. The reception of a paid parking program is also highly dependent on how it is introduced to residents and local business stakeholders. To support adoption, the Town is encouraged to develop a public outreach plan and consider implementing a merchant validation program. August 1, 2023 14 Option 3B specifically offers the added benefit of higher revenue, which enables the Town to imagine the infrastructure and technology upgrades it could fund, as well as the opportunity to hire more staff to support the operation. However, the pay-to-stay rates are a significant jump up from the free parking that used to be there. Policy Requirements With the removal of time limits, a no reparking ordinance will no longer be required. Like with Option 1, parking rates should be adjusted should occupancy rates exceed the standard industry benchmark of 85%. The Town can choose to either set this as a business rule or encode it within the Town Code. To support this, the Town should implement ongoing data collection for occupancy counts and utilization rates. Initial Implementation Steps If this option is selected, the key initial actions are:  Adopt a “Park Once” motto and encourage drivers who need long-term parking to park off-street. Public education and outreach campaigns are highly recommended.  Hire or reassign a current employee as a full-time Parking Manager to backfill the expired quarter-time role and identify the parking division’s organizational structure.  Review the Town Code to ensure the selected paid parking program can be executed, especially regarding payment methods.  Initiate shift of Oak Meadow Park parking responsibilities and revenue to the Parking Budget.  Install and procure a pay station for Oak Meadow Park.  Remove any existing signage referring to time limits on- or off-street and implement new signage referring to 30-minute short-term spaces.  Shortlist proposals and interview vendors for the Pay Station and Mobile Payments RFPs.  Introduce escalating rate to the Residential Parking Permit Program.  Introduce the same low-income and regular rate across all employee parking permits.  Review the associated staffing plan and prepare to hire any additional staffing and adjust the enforcement schedule as described. August 1, 2023 15 Recommendation The Town should consider how each option contributes to the five established parking program goals of being adaptive over time, supporting diverse needs, being financially- sustainable, improving access and safety, and optimizing operations. The table below quickly sums up how each option supports the program goals. Goal Option 1 Option 2 Option 3A Option 3B Adapts over time Yes Yes Supports diverse needs Yes Yes Yes Yes Financially sustainable Yes Yes Improves access and safety Yes Yes Yes Optimizes operations Yes Yes Yes The Town is encouraged to pursue an option which achieves as many of the key parking program goals as possible. In the table above, both versions of Option 3 would achieve all the goals listed. The Town should first and foremost ensure that the program is financially sustainable where projected revenue exceeds expenses already in the first year. Parking should at the very least be a cost-neutral program and not become a net negative expense for the Town. Any excess revenue generated can be set aside and reinvested in an assessment district, for example, to help pay for facility maintenance, enforcement, infrastructure improvements, or transportation alternatives. Flexibility is also key for the Town. Options 3A and 3B are the only options that offer a holistic and versatile parking management tool as it sets the Town up for a demand-based parking program where paid parking rates can be adjusted depending on parking demand trends. It also increases access for drivers, who can park for as long as they wish to thanks to the pay- to-stay model. Once the Town has decided on which of the options to pursue, the Town should prioritize pursuing the initial implementation steps listed for that option, define further steps based on the original Parking Roadmap, review the associated staffing plan to implement the appropriate staffing levels, and implement an ongoing data collection effort to evaluate results. It is critical that the Town continuously adapts the phased approach provided in the larger Parking Roadmap such that the steps are relevant to the community’s current needs. June 29, 2023 16 Appendix A - Summary of Strategy and Financial Impacts per Option Option 1 Option 2 Option 3A Option 3B Strategy On-/Off- Street For Downtown only: - Free, 2h time limit on-street - 2h free, then $2.50/h off-street For Olive Zone: - Free, 2h time limit on-street - Free, 3h time limit off-street For Downtown & Olive Zone: - Free, 2h time limit on-street - Free, 3h time limit off-street For Downtown & Olive Zone: - 0h free, $1.25/h on-street - 2h free, $1.00/h off-street For Downtown & Olive Zone: - 0h free, $3.00/h on-street - 2h free, $2.50/h off-street Permits/ Other - Escalating rate model for Residential Parking Permits: Permit 1 $42; Permit 2 $60; Permit 3 $80; Permit 4 $100; low-income permit $25 (per year) - Employee Parking Permits (all zones): $10/month ($120/year); $5/month for low-income rate ($60/year) - Introduce 30-minute short-term spaces on-street - Shift Oak Meadow Park responsibilities and revenue to parking fund. Policy - Add no reparking rule. - Add no reparking rule. - Remove most time limits. - Remove most time limits. Benefits - Enables Town to trial paid parking equipment with a smaller scope. - The no reparking rule will improve availability of on- street parking. - Minimal changes to implement. - Minimal outreach and public education required. - Gentle introduction of paid parking with low rates. - Removal of time limits enhances customer flexibility. - Maximizes revenue to fund other initiatives. - More likely to encourage parking space turnover. - Maximizes employee utilization of permit zones. Drawbacks - May not change on-street parking behavior without consistent enforcement. - Program is unsustainable. - Program is unsustainable. - Customers have very few options for all-day parking. - Generates less revenue to fund other initiatives. - More expensive for customers and visitors. Equipment Needs + 1 pay station (Oak Meadow) + 9 pay stations (Downtown) + 1 pay station (Oak Meadow) + 1 pay station (Oak Meadow) + 29 pay stations (Downtown) + 18 pay stations (Olive Zone) Staffing Needs4 + 1 Park Services Officer Temp + 1 Parking Manager FTE + 1 Maintenance Worker FTE + 1 Parking Control Officer FTE + 1 Park Services Officer Temp + 1 Parking Manager FTE + 1 Parking Control Officer FTE + 1 Park Services Officer Temp + 1 Parking Manager FTE + 1 Maintenance Worker FTE + 1 Admin Assistant FTE + 2 Parking Control Officer FTE Estimated Annual Budget5 Revenue Total $300,388.50 $254,409.00 $1,443,872.24 $3,111,057.20 OPEX Equipment6 $142,718.65 $12,054.14 $256,670.69 $304,185.46 Staffing $540,118.99 $378,004.45 $821,998.09 $821,998.09 Total OPEX $682,837.64 $390,058.59 $1,078,668.78 $1,126,183.55 Year 1 Net Gain/Loss -$382,449.14 -$135,649.59 $365,203.46 $1,984,873.65 Initial CAPEX7 $217,500.00 $56,000.00 $540,500.00 $540,500.00 4 The quantity of additional staffing per option may vary from the recommendations of the Staffing Plan depending on the Town’s hiring practices. 5 Annual budget considers additional revenue and expenses beyond the current parking program budget. 6 Equipment operating costs include software fees, credit card transaction fees, mobile payment convenience fees, spare parts, and warranty (where applicable). 7 Capital expenditures include pay station hardware, one-time platform integrations, vehicles, LPR units, handheld citation devices, and signage investments. June 29, 2023 17 Appendix B – Paid Parking Revenue Projections by Zone Option 1 Option 2 Option 3A Option 3B Oak Meadow ZONE TOTAL $125,875.00 $125,875.00 $125,875.00 $125,875.00 Downtown On-Street $0.00 $0.00 $837,144.00 $2,009,145.60 Off-Street $45,979.50 $0.00 $18,391.80 $45,979.50 ZONE TOTAL $45,979.50 $0.00 $855,535.80 $2,055,125.10 Olive Zone On-Street $0.00 $0.00 $332,955.00 $799,092.00 Off-Street $0.00 $0.00 $972.44 $2,431.10 ZONE TOTAL $0.00 $0.00 $333,927.44 $801,523.10 COMBINED TOTAL $171,854.50 $125,875.00 $1,315,338.24 $2,982,523.20 June 29, 2023 18 Appendix C – Summary of Required Staffing Levels (from Staffing Plan)8 Option 1 Option 2 Option 3A/B Program Management + 1 FTE Parking Manager + 1 FTE Parking Manager + 1 FTE Parking Manager + 1 FTE Admin Assistant Enforcement + 1 FTE PCO + 1 FTE PCO + 2 FTE PCOs Field Staff + 0.5 FTE Maintenance Worker + N/A + 1 FTE Maintenance Worker 8 The quantity additional staffing here may differ from that described in the paid parking options due to the Town’s current hiring practices. June 29, 2023 19 Appendix D – Parking Map for the Downtown Zone Map prepared by Lynx Technologies, Inc. June 29, 2023 20 Appendix E – Parking Map for the Olive Zone Map prepared by Lynx Technologies, Inc.