Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/20/2018
ITEM NO: 10
DATE: MARCH 14, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO
BRING FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO
PROVIDE A COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
RECOMMENDATION:
Review downtown parking information and direct staff to bring forward a budget proposal for
consultant services to provide a comprehensive analysis of downtown parking.
EXECUTIVE SUMMARY:
This report addresses the topic of parking in the downtown and is a combination of a number of
sub-topics. The topics have been grouped into one report to allow for coordinated discussion
on the interwoven aspects of each. Due to the complexity and importance of the discussion,
the Council may wish to consider a holistic study of parking utilizing a parking consultant to fold
in all of the topics, as provided for in the “next steps” section of this report and as
recommended by staff.
BACKGROUND:
Los Gatos has long struggled with the perception that the Downtown has a parking supply issue.
Recently, the Transportation and Parking Commission conducted a quantitative survey of
parking spaces which found high utilization in the downtown core and some capacity in the
North Lot and on Miles Avenue. Managing this supply challenge can be accomplished through
the addition of parking spaces, managing the use of existing spaces, or both.
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SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO BRING
FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO PROVIDE A
COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
MARCH 14, 2018
S:\COUNCIL REPORTS\2018\03-20-18\10 ADowntown Parking\Staff Report.FINAL.docx 3/15/2018 4:38 PM MM
BACKGROUND (cont’d):
The Town has managed the use of spaces historically through implementation of time limited
parking, with two-hour, three-hour, and unlimited time spaces.
DISCUSSION:
Pilot Time Limit Parking Changes
At the February 20, 2018 meeting, the Council provided several ideas for a pilot change to time
limited parking. Based on the ideas presented by Council members, staff provides the following
components to a pilot.
1. Adjust areas in parking lots 1 through 5 that are currently three-hour parking to four-
hour parking. Staff will adjust signage and enforcement to accommodate the change.
2. Convert unlimited parking in lots 1 and 2 to four-hour parking.
3. Collect data on the pilot:
a. Customer feedback via email.
b. Count of occupancy levels in the North Lot and lots 1 through 5 at 8 a.m., 10
a.m., and 12 p.m. on Tuesday, Thursday, and Friday at the beginning of the third
month of the pilot.
c. Observe pedestrian traffic between the North Lot and downtown.
d. Report on citations issued during the pilot in relation to historic data. Staff
anticipates a reduction in revenue from parking citations during the pilot
program.
If the Council wishes to move forward with this pilot, staff will implement it beginning May 1,
for a period of three months. Field counts for data collection will rely on the continued
assistance of the Transportation and Parking Commission while staff will address signage
changes and other data collection and reporting efforts.
Paid Parking
Staff has reviewed the opportunities for paid parking and condu cted a high-level review of
other jurisdictions’ use of paid parking.
Specific to the local perspective, the Chamber of Commerce at a recent board meeting provided
unanimous consensus on the idea of paid parking. The Transportation and Parking Commissi on
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SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO BRING
FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO PROVIDE A
COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
MARCH 14, 2018
S:\COUNCIL REPORTS\2018\03-20-18\10 ADowntown Parking\Staff Report.FINAL.docx 3/15/2018 4:38 PM MM
DISCUSSION (cont’d):
has had a number of discussions on the parking congestion in downtown and believes that paid
parking should be seriously considered as a means of managing parking behavior.
Staff has reviewed the costs for installation of a system, the potential operating cost, and the
revenue associated with a paid parking system. Utilizing a pay by license plate kiosk and web
application-based system, the startup costs are estimated at $900,000. Annual operating costs
for a paid parking system are approximately $400,000.
Staff compared revenue from systems in Capitola and Healdsburg where published revenue
data are available. Staff incorporated demand-based pricing in two scenarios with a low-cost
scenario reaching a high of $1 per hour and a high-cost scenario reaching $2 per hour. With
these scenarios, revenue between $1.3M and $2.2M is achievable.
With a revenue stream of this magnitude, the project would have a payback on the initial
investment of less than one year. Ongoing revenue in excess of $500,000 could fund other
Town improvements, including potential capital projects in the downtown.
The above calculations include conservative per hour rates and lower than experienced parking
occupancy. Staff anticipates parking citation revenue to continue, but there may be some
impact to that revenue, depending on the details of the program. There may also be a desire to
include employee parking permits in the program as well as other elements that impact
revenue.
Staff consulted with two parking control system vendors in researching this program. One of
the firms offered the opportunity to pilot their system. In the pilot program , the company
would provide the equipment and the Town would manage the pilot on a limited scale. This
might include, as an example, paid parking in parking lot 5 and on the curb along North Santa
Cruz at Main Street. A pilot would allow for public feedback on paid parking as well as
observations on what changes paid parking makes on parking behaviors.
If the Town Council is interested in paid parking, staff recommends that the Council pursue a
detailed analysis as part of a comprehensive study with a parking consultant.
Parking Garage
The Council Ad Hoc Committee on Parking and Infrastructure has reviewed the options for a
parking garage downtown. Attachment 1 is the report from the last Ad Hoc Committee
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SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO BRING
FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO PROVIDE A
COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
MARCH 14, 2018
S:\COUNCIL REPORTS\2018\03-20-18\10 ADowntown Parking\Staff Report.FINAL.docx 3/15/2018 4:38 PM MM
DISCUSSION (cont’d):
meeting and reflects the background of the potential project as it stands currently. Whereas
many items in this report address managing existing parking spaces, this item represents adding
capacity to relieve the parking pressure.
In summary, the project involves approximately 320 parking spaces (200 net new), 18 market
rate housing units, and six below market rate (BMP) housing units. The multi -use facility has
evolved and options for a garage only, limited residential, and a full project with two
underground levels of parking were explored.
In exploring this project, it became evident that the market rate residential would be able to
cover a large portion of the garage costs, but not all of it. This means the Town would need t o
finance between $5M and $13M of the project. The Committee also learned that the cost of
funding the project for a private developer (cost of capital) is far more expensive than for the
Town to fund the project.
As the Town does not have access to this amount of capital in a way that would allow for paying
for the project up front, staff reached out to a company experienced in issuing debt for public
projects to provide an analysis of the project finances. The analysis includes issuing both thirty-
year and twenty-year bonds at the start of the project for the total garage portion of project
costs. One scenario includes calling some of those bonds when funds become available at about
year five, when the residential units are sold. The bonds would provide the mechanism for
financing the project and the Town would need to identify a source of funds to pay back that
financing. The thirty-year bond analysis shows that, for the first five years the Town would
incur approximately $1M annually of debt service costs associated with paying off the bonds.
At year five, assuming the residential sale returns funds to the Town to allow for paydown of
some of the construction debt, the costs for the remaining 25 years would be approximately
$400,000 per year in debt service. While this model of financing significantly decreases the cost
of the project, it also shifts significant risk to the Town in that any cost overruns or market
underperformance on value from the sale of the residential units would increase the d ebt the
Town incurs (see Attachment 3).
The Town Council may wish to consider a number of factors in association with the idea of a
mixed-use parking garage.
The Town’s parking supply is taxed in its ability to meet demand. The addition of 200
spaces would help alleviate that challenge for downtown employees and patrons.
As the Town currently has no source of funds to address this debt service need, what
options does the Council wish to pursue for this project, if any ?
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SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO BRING
FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO PROVIDE A
COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
MARCH 14, 2018
S:\COUNCIL REPORTS\2018\03-20-18\10 ADowntown Parking\Staff Report.FINAL.docx 3/15/2018 4:38 PM MM
DISCUSSION (cont’d):
There are many difficult steps that lie ahead of a mixed-use project, including public
outreach. A project of this magnitude in the downtown will likely result in much public
input. This input may create modifications to the project that increase the cost or
decrease the scope, both affecting the finances. A project will also create a period of 18
months where the parking is reduced on the site due to construction.
The creation of a mixed-use facility in the downtown could create increased economic
vitality for the downtown as residents of the facility shop and eat in the downtown.
Given the expense of this project and the difficulty in delivering the project both fr om a project
design and an affordability perspective, staff recommends that the Council include a parking
needs analysis in a larger parking study. The Town Council may wish to provide additional
direction with respect to the parking garage project and/or the next steps for this Town
property.
Downtown Employee Parking
As previously discussed with the Council, there is a desire to address the need for employee
parking in the downtown. The next step associated with this item is a detailed survey of
downtown businesses to identify the number of employees at each during the peak
employment time.
Currently employees fill the unlimited spaces, as evidenced by parking counts that show those
spaces are full early in the day. The idea of creating dedicated emp loyee areas within those
existing unlimited spaces will not provide the needed capacity and simply add more restrictions
to spaces that may, at times, serve downtown customers. The ultimate goal, given the
constrained supply, should be to move employees t o the longer term and underutilized lots.
The current strategy of managing employee parking through time limits has proven
unsuccessful, as employees choose to relocate their vehicle within the lot as the time limits
expire. Further efforts at managing behavior through time limited parking will likely result in
similar outcomes.
High School Area Permit Parking
At its March 6, 2018 Council meeting the Council discussed this item and asked staff to return
through the budget process with a budget proposal to study parking, including safety, an
increased partnership with the high school, exploration of options or levers to make a
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SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO BRING
FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO PROVIDE A
COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
MARCH 14, 2018
S:\COUNCIL REPORTS\2018\03-20-18\10 ADowntown Parking\Staff Report.FINAL.docx 3/15/2018 4:38 PM MM
DISCUSSION (cont’d):
difference, and the potential use of a consultant to conduct the analysis. This work could align
with the staff recommendation to this report for a comprehensive analysis of downtown
parking.
Downtown One-Way Side Streets
Staff previously reviewed one-way conversions for Bachman, Royce, Elm, and Grays between
University and Santa Cruz Avenues, which could lead to a total of about 30 new parking spaces.
Because these conversions to one-way streets would need to function with a pilot conversion
of Santa Cruz Avenue to a one-way street, staff needs to re-do that analysis and recommends
doing so in conjunction with the one-way pilot planning associated with Santa Cruz Avenue.
That project will be presented through the annual Capital Improvement Program.
CONCLUSION:
Each of the above issues has the potential for influencing or impacting the others. This
complexity aligns with the potential value that could be added by a professional parking
consultant. As an example, Pismo Beach hired a consultant to help identify the size of garage
they needed to build. The consultant ended up recommending not building a garage given
other more cost-effective options available to manage parking. This may or may not be the
same situation in Los Gatos, however having a consultant that can address the options in a
holistic way that has worked in other communities may be beneficial for the Council in future
decision making.
RECOMMENDATIONS AND NEXT STEPS:
Given the complexity and the high likelihood that each of the parking items may create an
impact elsewhere in the Downtown, staff recommends that the Council direct staff to bring a
budget proposal for a parking consultant to examine the parking holistically, with the following
items included in the scope:
Analyze existing parking capacity.
Provide a recommendation for residential (permit) area parking, especially as it is
impacted around Los Gatos High School.
Provide recommendations for parking management for time limited parking.
Analyze paid parking.
Provide best practices recommendations for managing employee parking.
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SUBJECT: REVIEW DOWNTOWN PARKING INFORMATION AND DIRECT STAFF TO BRING
FORWARD A BUDGET PROPOSAL FOR CONSULTANT SERVICES TO PROVIDE A
COMPREHENSIVE ANALYSIS OF DOWNTOWN PARKING
MARCH 14, 2018
S:\COUNCIL REPORTS\2018\03-20-18\10 ADowntown Parking\Staff Report.FINAL.docx 3/15/2018 4:38 PM MM
RECOMMENDATIONS AND NEXT STEPS (cont’d):
Identify the need for additional parking capacity vis a vis a parking structure.
Review the impacts of one-way streets on parking capacity.
ALTERNATIVES:
The Town Council could select from any of the identified projects and continue moving forward
with those efforts.
The Town Council could direct staff to move forward with pilot projects with respect to paid
parking, four-hour time limited parking, or other ideas.
COORDINATION:
This report has been coordinated with the Police Department.
FISCAL IMPACT:
Staff will use the direction provided by Council to craft proposals for the upcoming budget
process.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Ad Hoc Committee Meeting Staff Report Dated January 30, 2018
2. Parking Lot Map
3. Garage Financial Analysis