HomeMy Public PortalAbout2020-03-10 Item 12CITY COUNCILAGENDA REPORTT^^ysCITY OF MILLBRAE621 Magnolia AvenueMillbrae, CA 94030SUBJECT: Consideration of the establishment of a City-wide parking authority to oversee, manage,operate, and potentially construct, acquire,and finance public parking facilities in theCity.Report No. ^ Lf ^For Agenda of: March 10, 2020Department: City ManagerOriginator: Thoma» C^illiams - CityManager ///^Approved: 'f^^tBudget ActionYes:No:x~^7Finance Review:REPORT TYPE: ACTIONITEM TYPE: CONSENT PUBLIC HEARINGINFORMATIONAL XEXISTING BUSINESSNEW BUSWESS^CRECOMMENDATION:Receive report on the formation of a Parking Authority and provide direction to staff on the formation ofa citywide parking authorityBACKGROUND:The purpose of this item is to ask the City Council to consider the establishment a new, separate legalentity governed by the City Council to oversee, manage, operate, and potentially construct, acquire, andfinance public parking facilities in the City.The City owns and operates six separate parking lot parcels containing 320 parking spaces. There are673 on-street parking also available around the downtown area. Currently, this parking is free to anyonebut is limited to 1 to 2 hours in duration depending upon the location. In total, 993 parking spaces arecontrolled and available for public parking in the central business district of the City.Staff receives ongoing feedback from business owners, the Economic Vitality Advisory Committee, andthe general public with concerns that individuals are parking cars in City-owned lots for longer than thepermitted time allotments. This reduces the availability of parking, and the ability of potential customersto access businesses. Feedback from these groups also includes the need for additional parking spaces.With the current approved TOD projects as well as other development occurring around and near theCity core, parking remains and will continue to be a premium for the downtown area. This is especiallytrue as the City continues to seek to expand and enhance the downtown business core. Additionally,there is also the potential to improve parking turnover, enforcement, and obtain significant revenue fromthe parking lots and on-street parking by installing paid parking systems.In order to explore the potential of better managing the existing parking inventory, City staff hascommenced a process to examine options to alleviate parking issues and analyze the potential revenuePage 1 of 3
and funding sources to provide ongoing parking management within the City. One such option is theformation of a parking authority under the Parking Authority Law of 1949 in California Streets andHighways Code Sections 32500.The Parking Law of 1949 created a parking authority in each city (Streets & Hwys. Code § 32650.) Theparking authority cannot act unless the City Council passes a resolution declaring a need for theauthority to function. (Streets & Hwys. Code § 32650.) Once the City Council has passed such aresolution, the Council may either designate itself as the governing body of the parking authority, orauthorize the Mayor to appoint its members. (Streets & Hwys. Code §§ 32656, 32661.1.)A parking authority is a separate legal entity from the City and has certain powers and authorities suchas:Acquisition and disposal of property;•The right to contract, build, develop and manage public parking facilities such as garages,surface parking lots and on street parking;Issue revenue bonds and publically finance parking facilities under the powers of the parkingauthority that is separate from obligating the City's general fund.Essentially, a parking authority is a specialized govermnental agency focusing on parking issues andhow to alleviate parking problems with many added benefits to the City.ANALYSIS:Staff believes that the establishment of a parking authority will provide the best long-term solution forthe City to manage and control the availability and access for parking to the businesses, citizens, andvisitors to Millbrae. In addition to a better functioning parking system, a parking authority will allowthe City to generate revenue that could be leveraged to expand and enhance parking opportunities toserve the public citywide.Preliminary Revenue ProiectionsStaff has performed some preliminary financial analysis to determine the potential revenue from theimplementation of a parking authority to include the existing City controlled parking spots. Dependingupon the assumptions for parking rates and durations at the various locations, it is estimated that paidparking could generate from $2 million to $3 million annually for the City. This revenue is estimatedfrom only the existing public parking inventory (993 spaces of on-street and City parking lot spots).Expansion of the parking authority to include potential future structured parking in and around newdevelopment such as the TOD project area, Broadway, Magnolia and El Camino corridor, couldpotentially expand the supply of parking and revenue greatly. This preliminary analysis is based justupon parking revenues only - additional revenue would be generated from parking enforcement as well.If so directed by the City Council, staff will further study and refine these projections and return with amore detailed and robust analysis.There are financial benefits and securities that also come with a parking authority. As a separate entityfrom the City, the parking authority's finances are separate from the City's General Fund. This insulatesthe City's General Fund from potential financial liabilities that may arise from parking facilities. Theparking authority is also authorized to issue revenue bonds to finance certain parts of its transactions,should that be needed in the future.Page 2 of 3
Business_and_Communit¥_QutreachThe implementation of robust parking management program inclusive of paid parking will be quite adeparture from the status quo within Millbrae. As such, it is anticipated that there will be someopposition from some sectors of the community. However, staff has received feedback from manydowntown business owners and numerous citizens that paid parking would be a welcome addition in theCity core. Most, if not all, of the cities on the peninsula have paid parking in their downtown andsurrounding areas. The installation of parking meters and/or other paid parking measures will requiresignificant outreach to both the downtown business as well as the community in general. As a part ofthe establishment of a parking authority, staff will develop and employ a public outreach and educationprogram to help alleviate and lessen the "growing pains" associated with the introduction of paidparking.Steps to Establish Parking AuthorityThe formation process for a parking authority is relatively simple and straightforward. Parkingauthorities exist within each city in the State subject to being "activated" by the City Council through theadoption of a Resolution declaring the need for an authority. The legal foundation for parking authoritiesis found in the California Streets and Highways Code as mentioned above.Staff can bring forward a resolution authorizing the City Council to declare a need to form a parkingauthority and designating the City Council members as the Parking Authority. Subsequent actions caninclude the requisite details to finalize the formation of the parking authority. No additional specialmeetings or actions would be required. Staff can endeavor to bring back additional detail and analysessuch that the approval of such a resolution could be considered in the first quarter of Fiscal Year 2020 -2021.FISCAL IMPACT:There is no fiscal impact associated with this information itemCOUNCIL ACTION:Direct staff to proceed with additional efforts such as business and community outreach, detailedfinancial analysis and preparation of a resolution for adoption of a Parking Authority by City Council.Page 3 of 3