HomeMy WebLinkAbout15 - CPS Parking LotsNEWPORT 1� � •-� �� j�a �. �.� .� 1 1.
% II��� � 1��� �- ��� .� _ I� �_ p a � C
City Council Staff r r
Agenda Item No. 15
February 26, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Finance Department
Dan Matusiewicz, Finance Director
949 - 644 -3123, dmatusiewicz @newportbeachca.gov
PREPARED BY: Evelyn Tseng, Revenue Manager
APPROVED:„
TITLE: Parking Lot Automation Infrastructure Upgrade
ABSTRACT:
The City currently operates Balboa Parking Lot and Corona del Mar Parking Lot with a
staff of approximately 13, mostly part-time, staff persons in the off- season and 18 during
the summer. The two parking lots are ideal for automation because the technology now
exists to create greater efficiencies, maximize revenues, and improve operations and
enforcement. Lot modernization will also provide long -term savings in personnel
expenses, capture escaped parking revenues, enable flexible pricing options and
custom validation programs. and facilitate the modernization of the City's permit and
meter program. This Budget Amendment will fund the purchase and installation of 23
pay- stations, two enforcement vehicles with License Plate Recognition ( "LPR ")
technology and ancillary equipment.
RECOMMENDATION:
Approve Budget Amendment No. 13- 034 appropriating $440,000 from General Fund
surplus fund balance to Account No. 0643 -9050 for acquisition and installation of
parking lot automation infrastructure.
FUNDING REQUIREMENTS:
Sufficient funds are available in the General Fund to support this infrastructure
investment. The infrastructure investment is expected to break -even in less than two
years from additional revenue generation and reduced personnel expenditures.
Parking Lot Automation Infrastructure Upgrade
February 26, 2013
Page 2
DISCUSSION:
Background
In furtherance of the City Council's priorities, the City has been very proactive in
restructuring and making strategic cuts in department operations, striving to evolve into
a smarter, faster, smaller local government. In FY 2011 -12, the City took measures to
avoid any budgetary impacts as a result of the struggling economy. In FY 2012 -13, the
City continues to take a deliberative and methodical approach towards strengthening
the bottom line while at the same time enabling greater efficiencies through
technological investment and outsourcing the provision of services where appropriate.
In March 2011, the City outsourced its parking meter program, including enforcement
services, to Central Parking Systems ( "CPS "), a national leader in professional parking
management. With offices in all major metropolitan areas in the United States, the
company operates approximately 2,200 parking facilities, which combined provides over
1 million parking spaces. Central's clients include some of the nation's largest owners
and operators of mixed -use projects, office buildings, hotels, stadiums and arenas,
airports, hospitals, and municipalities. The Company also operates leased properties for
which it provides end -to -end parking operations and management.
As a result of outsourcing the parking meter program, the City's annual parking meter
revenues have increased by 24.4% during their first complete year of operation.
Additionally, the efficiencies realized by outsourcing the meter program have
consistently met the City's expectations of system modernization, customer - centric
focus, and revenue uplift through professional parking management.
Current Parking Lot Operations
The City currently operates two surface lots with 1,131 spaces including 614 spaces on
the Balboa peninsula and 517 spaces in Corona del Mar (CDM). During the summer
peak season, both lots are managed by approximately 18 parking attendants and lot
supervisors. All are part -time except 1. During the non - summer months of the year, both
lots are managed by approximately 13 staff persons. The total cost of operations in FY
2011 -12 was $409,000 and revenues were $2.3 million providing net revenues of $1.9
million. A summary of net revenues from the prior five years indicates net revenues
escalating from $1.3 to $1.9 million from FY 2007 -08 to FY 2011 -12 (see table below).
Parking Lot Automation Infrastructure Upgrade
February 26, 2013
Page 3
2008 2009 2010 2011 2012
Revenues:
CDM
$855,911
$778,405
$837,101
$894,426
$962,912
Balboa
$863,507
$862,628
$1,028,013
$1,083,898
$1,333,553
Total Revenues
$1,719,418
$1,641,033
$1,865,114
$1,978,324
$2,296,465
Expenditures:
Salary & Benefits
$435,672
$419,813
$402,911
$377,297
$379,084
M &O
$16,819
$19,147
$28,089
$33,298
$30,410
Total Expenditures
$452,491
$438,960
$431,000
$410,595
$409,494
Net Revenues $1,266,927 $1,202,073 $1,434,114 $1,567,729 $1,886,971
Currently, the Balboa parking lot is gated, with one entrance lane and two exit lanes. All
customers entering the lot obtain a ticket, park for the desired time, and pay the hourly
fee to the cashier upon exiting the lot. The cashier calculates the cost by running the
ticket through a fee computer and accepts payment from the driver. On crowded days,
there can be traffic impact for cars entering and exiting the Balboa Lot. The CDM
parking lot has a single entry lane and a single exit lane, with a flat daily fee to park.
Each vehicle must pay the flat fee to the cashier at the booth located at the entrance of
the lot. In the summer months, cars waiting to enter the lot create traffic choke points at
the top of the hill at Ocean Boulevard. In the off - season, when monthly labor costs could
exceed revenues, the gate is left open and the lot is unstaffed and visitors park free.
During the summer months, the CDM lot gate opens at 6:00 a.m. allowing visitors to
park free prior to the time attendants begin their shift, usually at 10:00 a.m.
Proposed Plan for Parking Lot Operations
In December 2012, the City hired Dixon Resources Unlimited (Dixon) to perform an
operational analysis of the City's existing parking program. The principal of Dixon, Julie
Dixon, has over 20 years of parking and transportation management experience that
includes extensive knowledge of municipal parking programs, parking technology
implementation, and parking enforcement. As part of this objective, Dixon reviewed the
City's existing in -house parking lots to identify programs applicable to Newport Beach
that other municipalities have undertaken to effectively and creatively satisfy the parking
requirements of its residents, businesses, and visitors. Upon review of the City's two
parking lots, Dixon concluded that significant efficiencies can be attained by automating
the CDM and Balboa lots with 23 automated pay- stations, using a "Pay by License
Plate" model enforced by vehicles utilizing License Plate Recognition (LPR) equipment
Parking Lot Automation Infrastructure Upgrade
February 26, 2013
Page 4
and software. Such technology will allow for convenient payment options including cash,
credit card, pay -by- phone, and web application payment features. The technology also
allows for a dynamic pricing solution by time of year, day of the week, hour of the day,
and type of vehicle. Allowing for special events, weekend and holiday rate structures
can follow the demand based pricing models that are being introduced throughout
municipalities nationwide. The LPR technology also introduces the foundation for the
City's beach parking technology roadmap, including digital permits that can easily adapt
to a variety of residential parking programs.
Staff proposes a total installation of 23 Digital Luke Machines (multi -space pay stations)
in both parking lots as indicated in the diagrams below.
Balboa Parking Lot
[[n ��rUitftCM f~ tfl�
Corona del Mar Parking Lot
e !C
�S
Parking Lot Automation Infrastructure Upgrade
February 26, 2013
Page 5
� Cs r =.t#t' fiG4let #rte[ r(lµ
With this new technology, drivers enter the lot, locate a pay station and pay for the
space by credit card, debit card, or cash. The driver can pay via a smart phone if
registered with a ParkMobile account or has access to a web application. Because the
machines utilize the pay -by -plate method, the driver simply enters a license plate
number to park. The driver would not have to return to the car to display a ticket. The
customer can utilize a smart phone to avoid visiting a pay station and or add time
without returning to the parking lot. Annual and master parking permit holders may
simply pull into either lot and park, without visiting the pay stations at all.
Currently, the CDM lot is not staffed, and thereby no revenue is collected, during the
winter months when the cost of staffing may exceed the parking revenue collected.
With consistent enforcement, the CDM pay stations will ensure that a driver is paying for
parking during the hours that the lot is operational, regardless of the time of year. In
addition, staff intends to return to Council with a recommendation to change the CDM
parking lot fee from flat to hourly during the off - season. The automated infrastructure
coupled with an hourly fee will provide increased revenue opportunity. At both Balboa
and CDM lots, the technology could also provide opportunity for the City to develop a
Parking Lot Automation Infrastructure Upgrade
February 26, 2013
Page 6
customized validation program. The City will work with the concession at CDM, and the
restaurants and businesses at Balboa to develop such a validation program.
In order to continue to provide excellent customer service to the City's businesses,
residents and visitors, staff intends to ensure that sufficient contract personnel are
present at the lots to help visitors with the pay stations, respond to complaints, answer
questions, and recommend places to eat/visit. In addition, such personnel shall also
provide fair and consistent enforcement. Enforcement personnel will monitor the lots by
using automated LPR technology, mounted on an enforcement vehicle. The payment
data is available in real time and will be integrated with the City's parking permit data.
The LPR enforcement vehicles will recognize vehicles that have not validly paid, or are
not otherwise allowed to park due to an invalid parking permit.
Equipment Costs
The purpose of this staff report is to obtain City Council approval for an additional
budget appropriation of $440,000 to procure the equipment necessary for automated
parking meters at both the CDM and Balboa parking lots. Due to the manufacturer's
production schedule, it is necessary to order the equipment in early March to ensure
that delivery and installation occurs prior to the start of the peak parking season
(Memorial Day). Staff proposes a total installation of 23 digital multi -space pay stations
in both parking lots at cost of approximately $240,000 (including installation). The City
will also procure two enforcement vehicles equipped with license plate recognition
systems conservatively estimated to total approximately $150,000. The exact amount
for the vehicles and equipment will likely be less, depending on the final specifications.
The appropriation will also provide for traffic counters, lot signage and other ancillary
equipment.
Under the current parking meter contract with CPS, the City may request to expand the
scope of services to include the operation and maintenance of the City's off - street
parking lots program. If this budget amendment is approved, and an automated parking
program is implemented, staff will return to Council with a recommendation to amend
the CPS agreement to add the maintenance and operations of the parking lots. It is
anticipated that efficiencies will be gained by managing all parking operations under one
vendor. Additionally, the revised contract with CPS will provide for customer service
staffing to assist with traffic direction, payment compliance monitoring, and courteous
visitor assistance. If the amendment is approved, it will also result in the elimination of
8.1 full -time equivalent (FTE) staff positions. This is equivalent to a total of
approximately 13 individual employees, most of which work on a part -time basis.
Based on CPS national experience of other cities who have similarly converted to pay
stations, CPS estimates that the new system could create a revenue uplift of between
$450,000 to $550,000 per year. The pay stations will facilitate the conversion from a flat
Parking Lot Automation Infrastructure Upgrade
February 26, 2013
Page 7
rate to an hourly rate at CDM, which will capture revenues in the off - season when the
lot is typically closed. The new system will also increase citation revenues.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly. Alternatively, staff recommends the City Council find this action is
categorically exempt pursuant to CEQA Section 15303 because it involves the
installation of a limited number of small pay station structures.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Dan Matusiewicz
Finance Director
City of Newport Beach NO. BA- 13BA -034
BUDGET AMENDMENT
2012 -13 AMOUNT: $4aa,000.00
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
from additional estimated revenues
NX from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure appropriations in the amount of $440,000 for Parking Lot Automation Infrastructure Equipment
at the Balboa and Corona del Mar parking lots in order to create greater efficiencies, maximize revenues, and
improve operations and enforcement through lot modernization. Funds will come from General Fund Reserves.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
010 3605 General Fund - Fund Balance
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Description
Signed: /(/
Financial Approval: Finance Director
Signed: C Llv
Admini ive Approval: City Manager
Signed:
City Council Approval: City Clerk
Amount
Debit Credit
$440,000.00 `
Autam lic
$440,000.00
- -A0-I
Date
- 42))t3;
Date
Date
Description
Division
Number
0643 Parking Lots & Meters
Account
Number
9050 Parking Lot Automation Infrastructure Equip
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed: /(/
Financial Approval: Finance Director
Signed: C Llv
Admini ive Approval: City Manager
Signed:
City Council Approval: City Clerk
Amount
Debit Credit
$440,000.00 `
Autam lic
$440,000.00
- -A0-I
Date
- 42))t3;
Date
Date