AGENDA #16
FROM: W. Calvin Horton, Town Manager
SUBJECT: Consideration of Options regarding Parking Fees and Enforcement During the 2002 Holiday Season
DATE: November 11, 2002
This memorandum provides information on current revenues and expenditures for the Town’s on-street and off-street parking operations, and responds to the Council’s request for recommendations that would provide free or discounted parking during the 2002 holiday season.
Adoption of the attached resolution would authorize the Manager to proceed with option(s) selected by the Council.
In response to a Council Member’s petition at the September 23rd meeting, the Council requested recommendations from the Manager on potential options for parking operations that would provide free or discounted parking during the upcoming holiday season.
In past years, the Town has worked with the Downtown Commission to provide a limited program involving free or discounted parking in order to promote business downtown during the holiday season. Practices in the past have included the following:
We provide for Council consideration a brief review of parking revenues and expenditures, and potential options for holiday parking.
Review of Parking Revenues and Expenditures in the Current Year
A review revenues for parking operations for the first four months indicates that both on-street and off-street parking revenues are generally on target with budget estimates and yearly projections, although we believe short-term parking in the parking deck has declined slightly compared to last year. We believe the decline could be influenced by the increase in off-street parking rates adopted for the current year, greater use of fare-free bus service by students, and general economic conditions. However, we are not able to determine which of these variables may have the greater impact on off-street parking.
For Off-street parking operations, we believe overall revenues this year could be as much as $50,000 less amounts originally budgeted based on trends in the first four months. However, we expect this shortfall would be offset by actual expenditures which in normal years are as much as $50,000 less than budgeted amounts. With expenditures as expected for the first four months, we believe that off-street parking operations would be balanced at year end, but that there would be no additions to accumulated fund balance as in the past several years.
As a result of operations in 2001-02 fiscal year, the undesignated fund balance in the Off-Street Parking Fund increased from about $240,000 to $320,000 at June 30, 2002. This amount is net of $100,000 transferred to the General Fund last year, and the budgeted transfer of $200,000 to the General Fund approved this year to help balance the General Fund budget.
For On-street parking operations, we estimate revenues and expenditures to date are on target with budgeted amounts, and we project balanced operations at year end based on current trends.
We will continue to monitor parking operations during the year, and will advise the Council of any significant change in parking activities or trends that would affect estimated revenues and expenditures for the current year.
Potential Options for Holiday Parking
Based on discussions with Mr. Robert Humphreys, Executive Director of the Downtown Commission and options developed by the staff, we offer potential options as discussed below for consideration by the Council. A summary of the options and estimated costs is also provided in Attachment 1.
The Council could select any combination of options (revenue reductions).
1. Annual Tree Lighting Ceremony, Friday, December 6
Free parking in the Wallace Parking Deck and Parking Lot 2 from 5:00 p.m. to 10:00 p.m. to encourage shopping and dining in downtown establishments. Suspend meter enforcement at 5:00 p.m. Estimated cost: $ 1,190.
2. Holiday Parade, Saturday, December 7
Free parking in the Wallace Parking Deck and Parking Lot 2 for parade attendees from 9:30 a.m. to 12:30 p.m. Suspend meter enforcement from 8:00 a.m. to 12:30 p.m. Estimated cost: $1,845.
3. Free Parking Sundays, December 8th and 15th
Sunday, December 8th
A. Free parking in the Wallace Parking Deck and Parking Lot 2 from 2:00 p.m. opening to 5:00 p.m. Estimated cost: $280.
B. Free parking in the Deck and Lot 2 from 5:00 p.m. to 9:45 p.m. Estimated cost: $470.
Total estimated cost for A and B: $750.
Sunday, December 15th.
A. Free parking in the Wallace Parking Deck and Parking Lot 2 from 2:00 p.m. opening to 5:00 p.m. Estimated cost: $330.
B. Free parking in the Deck and Lot 2 from 5:00 p.m. to 9:45 p.m. Estimated cost: $560.
Total estimated cost for A and B: $890.
4. Downtown Open House, Saturday, December 14th
A. Free parking in the Wallace Parking Deck and Parking Lot 2 from 9:30 a.m. opening to 5:00 p.m. Estimated cost: $1,390.
B. Free parking in the Deck and Lot 2 from 5:00 p.m. to 2:30 a.m. Estimated cost: $1,570.
Total estimated cost for A and B: $2,960.
5. Free Saturdays Metered Parking on December 14th and 21st
Saturday, December 14th:
A Free parking at all meters from 8:00 a.m. to 6:00 p.m. Estimated cost: $2,900.
Saturday, December 21st:
B. Free parking at all meters from 8:00 a.m. to 6:00 p.m. Estimated cost: $2,900.
Total estimated cost for A and B: $5,800.
6. Town sponsored coupons
Provide coupons good for 1 hour free parking in Wallace Parking Deck or Parking Lot 2. Limit one coupon per visit from December 1 through December 23, 2002. Estimated cost - $ 1950 (based on 1500 hours/coupons, worth $1.30 each, cost of 1 hour parking).
7. Discounted Tokens
Merchants receive special holiday discounted prices for parking tokens. The Town would offer a 25% discount per token, per 100 token batch. Limit one batch per customer, first come first serve basis. Special discount good from December 1 through December 23, 2002. Estimated cost: $160 (based on 1000 token limit).
Other Potential Costs
We believed that there would be some net cost savings depending upon the options selected due to a decrease in the number of temporary employee hours needed during the weekend.
We also expect that there would be occasions when we would need to add staff because of the increased activity in the Wallace Deck and Park Lot 2.
We also estimate that about $200 would be needed to cover the advertising costs.
RECOMMENDATION
We recommend that the Council approve the following options:
1. Annual Tree Lighting Ceremony, Friday, December 6
Free parking in the Wallace Parking Deck and Parking Lot 2 from 5:00 p.m. to 10:00 p.m. to encourage shopping and dining in downtown establishments. Suspend meter enforcement at 5:00 p.m.
2. Holiday Parade, Saturday, December 7
Free parking in the Wallace Parking Deck and Parking Lot 2 for parade attendees from 9:30 a.m. opening to 12:30 p.m. Suspend meter enforcement from 8:00 a.m. to 12:30 p.m.
3. Free Parking Sundays, December 8th and 15th
Sunday, December 8th
A. Free parking in the Wallace Parking Deck and Parking Lot 2 from 2:00 p.m. opening to 5:00 p.m.
Sunday, December 15th.
B. Free parking in the Wallace Parking Deck and Parking Lot 2 from 2:00 p.m. opening to 5:00 p.m.
4. Downtown Open House, Saturday, December 14th
Free parking in the Wallace Parking Deck and Parking Lot 2 from 9:30 a.m. to 5:00 p.m.
The attached resolution would authorize the Manager to implement the above options to provide free or discounted parking during the 2002 holiday season.
ATTACHMENT
1. Cost Estimates for Holiday Parking Options Chart (p. 6).
A RESOLUTION AUTHORIZING THE MANAGER TO IMPLEMENT OPTIONS REGARDING PARKING FEES AND ENFORCEMENT DURING THE 2002 HOLIDAY SEASON (2002-11-11/R-15)
WHEREAS, the Town Council of the Town of Chapel Hill would like to support local businesses at a critical tine in the retail cycle; and
WHEREAS, The Town Council wants to encourage Chapel Hill residents and visitors to shop locally; and
WHEREAS, the Town Council wants to consider options for offering free or discounted parking during the 2002 holiday season;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town Chapel Hill that the Council authorizes the Manager to implement the following:
1. Annual Tree Lighting Ceremony, Friday, December 6
Free parking in the Wallace Parking Deck and Parking Lot 2 from 5:00 p.m. to 10:00 p.m. to encourage shopping and dining in downtown establishments. Suspend meter enforcement at 5:00 p.m.
2. Holiday Parade, Saturday, December 7
Free parking in the Wallace Parking Deck and Parking Lot 2 for parade attendees from 9:30 a.m. opening to 12:30 p.m. Suspend meter enforcement from 8:00 a.m. to 12:30 p.m.
3. Free Parking Sundays, December 8th and 15th
Sunday, December 8th
A. Free parking in the Wallace Parking Deck and Parking Lot 2 from 2:00 p.m. opening to 5:00 p.m.
Sunday, December 15th.
B. Free parking in the Wallace Parking Deck and Parking Lot 2 from 2:00 p.m. opening to 5:00 p.m.
4. Downtown Open House, Saturday, December 14th
Free parking in the Wallace Parking Deck and Parking Lot 2 from 9:30 a.m. opening to 5:00 p.m.
This the 11th day of November, 2002.