Council Meeting: April 9, 2002                                                            Santa Monica, CA

 

 

TO:                  Mayor and City Council

 

FROM:            City Staff

 

SUBJECT:     Conceptual Approval of the Downtown Parking Task Force’s Strategic Plan to Retrofit, Rebuild and Add Parking Resources in Downtown Santa Monica and    Authorization to Proceed with Implementation Steps

 

INTRODUCTION

This report recommends that the City Council conceptually approve the Downtown Parking Task Force’s recommended strategic plan to retrofit, rebuild and add parking resources in the Downtown area and authorize staff to: 1) prepare a programmatic environmental impact report (EIR); 2) develop specific funding measures for adoption by Council to ensure that net new spaces are financed through new rather than existing revenue sources; and 3) proceed with next steps towards property acquisition or joint development options for new perimeter structures predicated on the identification of funding.

 

BACKGROUND

On April 26, 2000, the Planning Commission reviewed the  “Downtown Parking Management Program” report prepared by Kaku Associates, dated April, 2000.  The report assessed parking utilization in the downtown area, identified specific parking shortage issues and outlined a series of possible measures to improve parking conditions. The Planning Commission supported the majority of the management and operational recommendations, but expressed concern over the recommendation to add parking and suggested that a public participation process take place to assess community sentiment.  The Commission also requested that cost and traffic impacts be assessed as part of the process. 

 

On December 19, 2000, City Council established the Downtown Parking Task Force in response to a Planning Commission suggestion for a public process to assess community sentiment concerning the need for more downtown parking.  The six-member Downtown Parking Task Force consisted of three City Council members, one Planning Commissioner and two Bayside District board members.  The task force initially convened in January 2001 and met on a monthly basis through November 2001.  Each meeting was noticed to the public and two additional community workshops were held, one near the outset and one in October 2001, as the task force was concluding its recommendations.  The Bayside District Board of Directors unanimously supported the recommendations at its November 15, 2001 meeting.  The Planning Commission reviewed the task force’s recommended program at its January 9, 2002 meeting and comments are incorporated into this report.

 

On December 19, 2000, City Council also authorized staff to proceed with design work necessary for the seismic upgrade of Parking Structures 7 and 8 serving Santa Monica Place, since available FEMA funds have expenditure deadlines.  A construction contract was awarded on March 5, 2002 for the Structure 8 seismic work.  The structures, being the newest and largest downtown public parking structures, were not perceived as likely candidates for additions or rebuilding absent major redevelopment of the shopping center.  Based on Council direction, the task force excluded these structures from consideration. 

 

DISCUSSION

Resident Survey:

Downtown parking questions were added to the City’s annual public opinion telephone survey, conducted in November, 2000, to provide input to the task force.  The results provided confirmation that the vast majority of residents regularly visit downtown, use the parking resources and report difficultly in finding parking.  Almost two-thirds of the residents thought that the amount of parking in Downtown should be increased.  Specific results include:

 

·          66% of residents go Downtown once/week or more; 91% at least once/month

·          76% go for shopping, recreation or dining

 

 

·          68% drive; 19% walk; 8% take transit

 

 

·          62 % park in public structures; 18% park on street

 

 

·          81% report difficulty in finding parking

 

·          62% say the amount of parking in Downtown should be increased:            

 

 

·          62% say they would not be likely to use daytime remote parking (within ½ mile and free Shuttle):

 

                                   

 

Current Parking Resources: 

The task force began by reviewing current parking resources in the Downtown area, including the six public parking structures (#1-6) along 2nd and 4th Street and the two structures (# 9 &10) north of Wilshire on 3rd and 4th Streets.  The characteristics of these spaces are summarized below in Table A.   The task force did not address the two public structures (#7 & 8) that serve Santa Monica Place containing 1,869 spaces, since seismic retrofit design was proceeding for these structures.   There are also 1,805 private off-street spaces identified in the 2000 Kaku report and approximately 236 metered on-street spaces in Downtown.

Table A: City Owned Off-Street Parking Resource in Downtown*

Structure

Spaces

Floors

Retail

Year Built

#1: 1234  4th St.

312

5

no

1968

#2: 1235 2nd St.

633

9

no

1969

#3: 1320 4th St.

324

5

no

1968

#4: 1321 2nd St

652

9

no

1966/1974 (addition)

#5: 1440 4th St.

664

9

yes

1970/1989 (addition & retrofit)

#6: 1431 2nd St.

345

5

yes

1967

#9: 1135 4th St.

294

4

hsng

2001

#10 1125 3rd St.

87

2

no

na

Total

3,311

 

 

 

* does not include structures #7 & #8 serving Santa Monica Place

 

Parking structures #1-6 are aging and have a number of functional deficiencies.  Approximately $20 million of seismic upgrade work is needed (estimated in a April 2000 study by Integrated Design Services.)  The aging structures currently require a significant amount of funding for major capital repairs.  Even with these expenditures, there remain underlying functional and aesthetic issues related to circulation, accessibility, desirability of ground-floor retail and contribution to street level vitality of Downtown.

 

How Much is Enough:

One purpose of the task force was to determine whether more parking is needed in the Downtown.  New commercial development in the Bayside District pays into a shared parking fund and is not required to provide separate parking. Several perspectives were explored to determine whether the current public parking resources are sufficient, given that there has been approximately 50,000 square feet of growth per year since the Specific Plan was adopted in 1996.

 

·          Parking Availability: Parking utilization information was updated through September, 2000.  (Note: Normally the data would have been updated in September, 2001 but because the “9-11” events affected visitors’ utilization, the data collected after that event would not have been representative of average utilization.) The data indicated that during the peak weekday hour (2-3 pm) the structures are 80% full, on average, with utilization in some structures over 90% full.  During the weekend peak on Saturday (9-10 pm) the structures were, on average, over 85% full.  During peak seasons the parking structures fill to capacity, but the task force decided to focus on the typical or reoccurring conditions rather than unusual peaks. 

 

Recent management measures have improved the availability of short-term parking by shifting monthly parkers to the underutilized structures and managing the flow of vehicles into the structures using real-time information from new fee collection equipment.  Nevertheless, as incremental growth occurs in the Bayside District, the structures are reaching critical capacity limits, particularly since new development within the District is not required to provide its own parking.  An additional factor that has heightened demand over the years is a shift in the type of uses, with greater emphasis on retail and entertainment.

 

·          Parking Ratio:  The task force also explored how the parking ratio, consisting of the total number of spaces (public, private and on-street) in the Bayside District (and the two structures north of Wilshire) divided by the total commercial development in the District, compared to similar districts around the country.  It was concluded that the Bayside existing ratio of 2.1 parking spaces per 1,000 square feet of commercial development is low considering the high proportion of regional retail, local retail, entertainment uses, general regional attraction of the Promenade and Southern California’s dependence on driving.  For comparison purposes, parking ratios in other “park once” cities are between 1.5 to 2.0 spaces per 1,000 sq. ft. for Portland, Oregon (which is served by light rail); 1.85 to 2.2 spaces per 1,000 sq. ft. for Portsmouth, New Hampshire and 1.89 to 2.0 spaces per 1,000 sq. ft. for Old Alexandria, Virginia (characterized by high transit use.)

 

Proposed Strategy: 

The task force developed a flexible approach to address the needs of the aging structures as well to add parking.  The strategy was framed within the context of a “Park Once -Pedestrian First” orientation to encourage visitors to drive as little as possible.  The approach emphasizes prominent identification of parking entrances so that visitors park at the first available parking. An active street frontage is essential to encourage walking, which calls for ground-floor retail fronting the structures to minimize “dead space” and concealed parking facilities to improve street level views.  The general philosophy is consistent with the Downtown Urban Design Plan adopted in 1996.   Implementation of the entire program would ultimately result in the following number and types of spaces. 

 

     Action:                                                                                       Spaces:

·          Retrofit spaces in the tall structures (#2, 4 & 5)                    = 1,950 (retrofit)

·          Demolish, rebuild & add to short structures (#1, 3 & 6)       =   981 (rebuild) + 712 (new)

·          Construct two new structures in vicinity of                              =  ___                  1,000 (new)

      5th Street (walking distance to Promenade)                           2,931 upgraded   1,712 net new

 

The strategy encompasses the following components:

 

Existing Structures: The existing structures are ideally located to serve the downtown area. They are recommended to be preserved as parking resources and enhanced as follows.

 

 

 

Additional parking on Downtown perimeter:  The task force concluded that since current parking resources are near capacity and incremental growth will continue in the downtown area, additional parking resources are needed.  It was determined that new parking resources should be located within walking distance of the core of Downtown to expand the vitality of the core area.  The task force identified the 5th Street vicinity as the ideal walkable distance. The task force recommendation calls for the construction of 1,000 spaces in two structures (Structures #11 and 12) over the next ten years.  These structures are assumed to include ground floor retail.  New monthly parkers could be concentrated in these perimeter structures to maximize the availability of the close-in parking for short-term visitors. 

 

The task force considered the additional spaces that will be added on Santa Monica Boulevard between 6th and 7th Streets as part of the Main Library reconstruction and concluded that they are slightly beyond a comfortable walking distance for most people destined for the Promenade area.  The library construction project will create additional pressure on downtown spaces, in the near term, since the existing surface library spaces will be removed to make way for construction.

 

Phasing to maintain parking availability:  A detailed phasing plan is a critical component of the recommended strategy in order to avoid a net reduction in parking supply during construction.  Parking availability is currently critical in the downtown area and even a temporary reduction in available spaces will make a difference.   Replacement parking is necessary to make up for the removal of 150 spaces at a time in the tall structures as they are retrofitted, and to accommodate the loss of the 300+ spaces from demolishing and rebuilding each of the short parking structures.  The phasing plan is dependent on two sources of replacement parking: the construction of the new Civic Center parking structure and the creation of new surface and structured public parking in the vicinity of 5th Street.

 

The task force recommended that the entire program be implemented within a ten-year time frame with steps beginning in 2001, as shown in Attachment A.   As more information has become available, the schedule has been revised with the “best case” scenario provided in Attachment B.  The new Civic Center Parking structure will be the primary source of replacement parking and the structure is currently scheduled to be available in early 2005.  The sequencing also assumes acquisition of sufficient property for the two new structures in the vicinity of 5th Street and the creation a 150-space surface lot at one of the locations. The 150-space surface lot is dependent on the funding approval process, the property acquisition process and the configuration of acquisition, and is not likely to be available before the Civic Center spaces.   Attachment B describes the phasing requirements in terms of what must precede and how much time it will take to implement each element of the program. 

 

Re-assessment every two years:  The task force recommended that the program be assessed every two years in order to ensure that each succeeding component of the program is needed, based on updated development and utilization information, and that there is adequate revenue to fund the next phase. 

 

New tram service to link structures:  The task force recommended the provision of a dedicated user-friendly tram to facilitate a “park once” concept.  Big Blue Bus has pointed out that the TIDE shuttle already serves the downtown area and there is extensive bus service throughout the downtown.  A dedicated tram with sufficiently frequent headways will cost over $1 million per year to operate, and an insignificant portion of this would be made up in fare revenue (e.g., current cost of the TIDE shuttle is $.25).  Big Blue Bus operating funds would not be an eligible funding source, and it is likely that general fund sources would be required to pay for this service.

 

Financing Plan:

The task force developed a funding program that would require contributions from both downtown parkers and property owners.   It is assumed that Redevelopment Agency funds previously identified as needed for seismic retrofit of all six structures will be contributed towards the retrofit or the rebuild of the six structures, since both are strategies to address the strengthening requirements.  The seismic retrofit requirements proposed to be funded by the Redevelopment Agency total approximately $20 million.   The new parking spaces are assumed to be self-financed through revenue bonds paid for by increased parking fees and Downtown property assessments (total cost of rebuilt and new spaces is estimated to be $72.5 million).  “Moderate” and “maximum” financing scenarios based on cost and revenue projections over a 20-year debt service period were reviewed and discussed.

 

The task force developed a set of recommendations that came close to fully funding the program based on those projections.  However, the task force subsequently added several programmatic elements that will likely result in an annual shortfall of several million dollars.  Further parking fee increases or deletion/delay of program element(s) may be necessary for the program to be self-funding.  The shortfall issue will be addressed as the program is refined with more detailed analysis and specific fee/assessment/programmatic recommendations are brought to Council for approval.  As noted above in the “phasing” discussion, property acquisition for the new perimeter structures will not begin until funding is identified. 

 

The task force recommended the following components to generate funding for the new spaces:

·          Monthly parking rate: The task force recommended that the monthly rate could be increased from the current pre-tax rate of $75/month to $105/month or higher, based on a survey of private monthly rates currently being charged in the downtown area.  The rate for the perimeter parking could be slightly less than the rate for the Promenade adjacent parking to encourage employees to park on the perimeter.

 

·          Transient rate: Based on a survey of areas with similar characteristics (Pasadena, Beverly Hills, Westwood, etc) it was determined that there was some room for upward adjustment of short-term parking rates.  As a next step, a demand analysis will be undertaken to fully determine the latitude that rates could be raised without creating unanticipated impacts.   The recommended elements, to date, for short-term parking include:

·          First 2 hours free (the task force specifically recommended that the 2-hour free parking policy be retained even though it has a very large impact on the revenue generating potential)

·          Up to $1.25 each 20 minutes after first two hours

·          Up to $10 maximum or more, if necessary

·          Evening flat rate: weekdays at $4.00; weekends at $6.00, close to Promenade, and at $4.00 further from the Promenade but within walking distance.

 

 

·          Lease revenue: The commercial space at ground-floor level of structures will generate revenue.

 

 

·          Parking Developer “In-Lieu” Fee: There is a current balance of $2.5 million that has been paid by developers and the annual levy of $1.50 per building sq. ft. continues to be levied on all new space built after 1989.

 

·          Increase Bayside parking assessment:  The task force considered  $.50 per building sq. ft. to be a realistic increase given the fact that the assessment has been declining every year as new development is added.

 

·          Expand the Assessment District: A levy of approximately $.50 per sq. ft. could be assessed to an expanded1.9 million commercial sq. ft. in the downtown area that would benefit from the additional parking.  The suggested expanded boundaries, excluding the currently assessed Bayside District area, are the north side of Wilshire, the east side of 6th Street, the north side of Colorado and the east side of Ocean Avenue.

 

 

 

 

·          Meter revenue: The on-street meter spaces are considered the premium spaces in downtown because of their convenience.  Increasing the rate to $1.00/hour from the current rate of $.50/hour will encourage drivers staying longer to park in the structures and leave the on-street spaces for those making quick stops in the downtown.

 

Traffic Impacts:  In order to determine what traffic congestion might arise in the downtown if all of the proposed new spaces were realized, Kaku Associates prepared two alternative scenarios.  The first followed the standard methodology that the City uses to prepare traffic studies of potential development projects pursuant to the California Environmental Quality Act.  This is the type of conservative analysis that would be undertaken in an Environmental Impact Report.  But because the parking itself is not a generator, but rather a facility required to support anticipated development and demand from downtown visitors and employees, a second analysis was completed that simply adds anticipated trips from the new parking spaces to existing trips; it assumes that the new parkers are the result of future development and background growth and not an addition to it.  This scenario gives a more likely projection of what conditions would actually be like in the downtown if all of these spaces were constructed.  The anticipated operating conditions following construction of the spaces as recommended is as follows:

 

·          Standard environmental analysis (worst case) with assumed background “ambient” traffic growth and the implementation of the 1,712 net new spaces (and 250 additional library spaces) would result in 6 intersections operating at substandard conditions in PM peak hours.

 

·          Expected operating analysis, based on the construction of 1,712 net new spaces (and 250 additional library spaces), and the assumption that they will be occupied, and generate trips in the same pattern throughout the day that downtown parking currently generates, but that there will not be additional background or development related growth, indicates that two intersections would operate at substandard conditions in the PM peak hours.

 

PLANNING COMMISSION COMMENTS:

The Planning Commission reviewed the proposed strategic plan at its January 9, 2002 meeting and strongly supported the task force recommendations to retrofit, rebuild and add parking, but raised the following issues.

 

·          Santa Monica Place Structures #7 & #8: Several commissioners expressed concern that the City is proceeding with seismic retrofit of the Santa Monica Place structures #7 and #8, at the public sector’s expense, when it’s possible that the owner may be redeveloping the property within the foreseeable future.  The issue was raised as to whether it was wise for the City to proceed with this multi-million dollar investment until more is know about the future of the site.

Staff response: This issue was not covered by the Downtown Parking Task Force since it was defined by the Council as “out of scope” prior to the outset of task force process.  On March 5, 2002 City Council approved the seismic retrofit construction contract for structure #8 (Colorado and 2nd Street) and the construction work is scheduled to commence later this Spring, 2002.   Since the FEMA grant that is funding the project has time constraints and it is unclear whether eventual plans for the shopping center will necessarily call for rebuilding parking structures #7 and 8, staff recommends proceeding with the work on these structures.  The Redevelopment Agency owns the structures and is ultimately responsible for them.  Seismic retrofit construction work for structure #7 will not take place for at least one year.  However, the design work is proceeding at a cost of $405,000.   In the meantime Santa Monica Place has been added to the Civic Center master planning process and the possible future of the sight will be more clearly delineated through that process.  Staff will proceed with the retrofit of structure #8, since the future plans for the site have yet to be defined much less reviewed and designed. Construction for structure #7 is scheduled to commence in February, 2003 and further assessment can be made before bid award for that work.

 

·          Employee Parking Needs:  The Issue was raised concerning the backlog of requests for monthly parking and whether the task force considered the needs for employee parking.

Staff response:  It is envisioned that a portion of the 1,000 new perimeter parking spaces will provide monthly parking opportunities. 

 

 

·          Increased Assessment Fee:  A concern was raised that increasing the Bayside District assessment fee could contradict measures that the newly created Bayside District Uses task force may develop to encourage an appropriate mix of uses on the Promenade.

Staff Response: The proposed assessment fee increase of $.50 per sq .ft. is an annual assessment and is very small (within the 100’s of a percentage point) in relation to a monthly lease rate and, therefore, should not create a significant burden.  The amount of assessment levied on existing property has declined as the amount of square footage has increased within the District, and income per square foot has gone up considerably since the initial assessment was levied so that the assessment has become a reduced burden over time.   Staff will monitor the progress of the “Uses” task force to ensure that the programs are compatible.  Staff will also refine the assessment recommendations to correspond with the payment zones that have been set up within the Bayside District.

 

 

Traffic Impact:  A concern was raised that the resulting traffic will be so bad that no one will be able to get to the downtown or move around within the downtown.

Staff response:  As this issue was raised it was prefaced with the statement that there is really no right answer, that it is a balancing act. Parking is important to continued  vitality of downtown, but not to the point that it reduces the quality of life and undermines the economy . As explained in the Traffic Impacts section in this report, two levels of traffic analysis were developed for presentation to the Downtown Task Force; the worst case (standard environmental analysis) and the expected scenario. Staff anticipates preparing a programmatic EIR for the project, which will require use of the standard worst-case analysis.

 

 

IMPLEMENTATION STEPS

The following next steps will be initiated based on Council’s adoption of the conceptual program: 

·          Programmatic Environmental Impact Report (EIR): a programmatic environmental impact report (EIR) will be prepared for the entire recommended strategic plan, including the seismic retrofit work on Structures #2, 4 and 5; demolishing and rebuilding Structures #1,3 and 6; and adding two new parking structures in the vicinity of 5th Street.  Conceptual design of the structures will need to be developed to a level of detail necessary for environmental clearance.  For the two new structures, the EIR will assume possible locations; once specific sites are selected further environmental study may be conducted as required.

 

·          Develop Funding Sources: Refined analysis to establish revenue generating potential to fund the program, will include:

Ø        Outreach to the proposed expanded downtown assessment district to assess likelihood for support of an assessment.

Ø        Refined analysis for the assessment zones within the Bayside District to develop appropriate assessment rates for each zone.

Ø        Analysis to assess the impact of increasing short-term/transient parking rates on the demand for parking.

Ø        Refine plan to increase downtown on-street meter rates to $1.00/hour, including possible locations to add meters and adjust hours.

Ø        Work with Finance Dept. to develop plan for issuing revenue bonds.

Ø        Confirm Redevelopment Agency projections and availability of funds for retrofit purposes.

 

·          Property Acquisition:  work with the Economic Development Division towards property acquisition and/or joint development partnerships for the development of the two new perimeter structures. 

 

BUDGET/FINANCIAL IMPACT

A total of $100,000 was programmed at Mid-Year (FY 01-02) in account 01265.555060 for professional assistance to perform detailed revenue feasibility analysis of the proposed assessment district and increased parking rates. Specific assessment, rate increase and programmatic recommendations will be presented to Council once the feasibility studies are completed.   The programmatic environmental impact report is estimated to cost $250,000 and will be funded from account C17062102.  These funds could be repaid with bond revenue once it is generated.  

 

RECOMMENDATIONS

It is recommended that the City Council take the following actions:

1.      Conceptually approve the Downtown Parking Task Force’s recommended strategic plan to retrofit, rebuild and add parking resources in the Downtown area for a total of approximately 2,931 upgraded spaces and 1,712 net new spaces, based on a schedule that addresses the necessary replacement parking; the creation of sufficient funding to pay for the program; and periodic program review.

 

2.      Authorize staff to proceed with the next steps towards implementation and bring the specific fee and programmatic recommendations to Council for approval.

 

Attachment A:  Schedule Reviewed by Task Force of Proposed Strategy of Retrofitting, Rebuilding and Adding
Public Parking in the Downtown Area (August, 2001)

 

Attachment B: Downtown Task Force Recommended Parking Plan Schedule of Implementation Steps
(Best Case)

 

 

Prepared by:              Suzanne Frick, Director, Planning & Community Development (PCD)

                                    Ellen Gelbard, Assistant Director, PCD

                                    Lucy Dyke, Transportation Planning Manager, PCD

 

Reviewed by:     Jeff Mathieu, Tina Rodriguez and Mark Richter, Resource Management

                            Stephanie Negriff and Joe Sticher, Big Blue Bus

                            Craig Perkins, Tony Antich and Jack Schroeder, EPWM