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Municipal Parking Ramp/Lot Hourly Rate Adjustment Copyright 2014 City of Dubuque Consent Items # 18. ITEM TITLE: Municipal Parking Ramp/Lot Hourly Rate Adjustment SUMMARY: City Manager recommending adjusting the rates in the parking ramps to accommodate the newly purchased gate equipment. RESOLUTION Authorizing the City Manager to adjust the fees and charges for the parking of motor vehicles in the municipal parking ramps SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Parking Ramp Hourly Rate Adjustment-MVM Memo City Manager Memo Municipal Parking Fee Adjustment Staff Memo Municipal Parking Fee Adjustment Resolution Resolutions THE CITY OF Dubuque DUB E i" Masterpiece on the Mississippi 2007.2012.2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Parking Ramp/Lot Hourly Rate Adjustment DATE: January 13, 2017 Parking System Supervisor Tim Horsfield is recommending adjusting the rates in the parking ramps. The existing rate is $2 for the first hour and 50¢ for every hour thereafter, with an $8 daily maximum. Tim is recommending going to $1 per hour with a $10 daily maximum. This change will accommodate the newly purchased gate equipment and is essentially revenue neutral, with the possibility of a slight increase in annual revenue. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Tim Horsfield, Parking System Supervisor Dubuque Parking Division 830 Bluff Street THE CITY F OF Dubuque, IA 52009 R all-America City 563-589.4267 DUL 1 I I I I./ www.cityofdubuque.org/parking Masterpiece on the Mississippi 2007 - 2072 -2073 January 13, 2017 To: Michael C. Van Milligan, City Manager From: Tim Horsfield, Parking System Supervisor Subject: Parking Ramp/Lot Hourly Rate Adjustment Introduction This memo will provide information related to the installation of new parking control equipment and the suggested rate structure adjustment for all the City parking ramps and parking lots. Background Over the past two years, we have been dealing with the current parking equipment provider, 3M, closing the parking equipment side of their operation and finally just this past year closing all technical support for the software. In addition, the availability of replacement parts has become more of a challenge and some parts simply not to be found. In light of that, the City Council approved the purchase of new parking equipment from Parking Inc. from Des Moines, Iowa. The parking equipment is provided by a manufacturer called TIBA. Over the last couple of days, we have installed the new equipment at the Iowa Street Parking Ramp and the 5 Flags Parking Ramp. These are the two ramps to be replaced this year with an additional two ramps to be installed in next year's budget if approved, that being the Locust Ramp and the Central Avenue Ramp. At the current time, the hourly rates for the ramps and hourly lots, are $2.00 for the first hour and $.50 an hour thereafter with a daily maximum of $8.00. The new system does not deal with coin. It will not accept coins, nor give change in coin as the old equipment. The new equipment accepts credit cards and paper currency only and dispenses only paper currency if change is required. We also continue to accept vouchers from any business that would like to pay for customer parking. Many of the new systems being installed in parking systems are going to a system that accepts credit card only and no cash or coin. 1 Discussion To make the new system function, we must make an adjustment to our hourly rates. I am recommending that we adjust the rates from those described above to simply a flat $1 .00 per hour with a daily maximum of$10.00. We did an analysis of the impact this would have on the Iowa Ramp if we made this change for the last six months of 2016 and it indicated that of course we saw a reduction in revenue in parkers staying less than 3 hours, but we then saw an increase in revenue from those parking for more than the 3 hours. Overall, the table indicated that considering the same number of parkers, staying the same length of time, the new rate structure would have increased parking revenue by $5,325.00. Although we did not have the statistical data to figure the 5 Flags ramp, I would see no reason why the same effect would not be felt in all the ramps as hourly use is similar. Iowa Ramp Revenue Analysis July 1, 2016 to December 31, 2016 Grace Current $1.00/hour Rev. at Current Rev. at$1/hour Diff. Counts Rate Rates 84 $0.00 $ - $0.00 $ - $0.00 Period 1 Hour 3082 $2.00 $ 1.00 $6,164.00 $ 3,082.00 $3,082.00 2 2894 $2.50 $ 2.00 $7,235.00 $ 5,788.00 $1,447.00 Hours 3 1848 $3.00 $ 3.00 $5,544.00 $ 5,544.00 $0.00 Hours 4 1970 $3.50 $ 4.00 $6,895.00 $ 7,880.00 $985.00 Hours 5 1220 $4.00 $ 5.00 $4,880.00 $ 6,100.00 $1,220.00 Hours 6 652 $4.50 $ 6.00 $2,934.00 $ 3,912.00 $978.00 Hours 7 665 $5.00 $ 7.00 $3,325.00 $ 4,655.00 $1,330.00 Hours 8 970 $5.50 $ 8.00 $5,335.00 $ 7,760.00 $2,425.00 Hours 9 1021 $6.00 $ 8.00 $6,126.00 $ 8,168.00 $2,042.00 Hours 10 528 $6.50 $ 8.00 $3,432.00 $ 4,224.00 $792.00 Hours 11 70 $7.00 $ 8.00 $490.00 $ 560.00 $70.00 Hours 12 24 $7.50 $ 8.00 $180.00 $ 192.00 $12.00 Hours 13 382 $8.00 $ 8.00 $3,056.00 $ 3,056.00 $0.00 Hours $5,325.00 Another fact to consider, is that we are currently charging $.75 per hour to park at most meters. They are of course outside and on the street. I think it is reasonable to charge a quarter an hour more to park under cover and off street. We must get to a flat dollar per hour rate for the new equipment to function properly. The only other option would be to accept only credit card and full pay vouchers from businesses; though an option, one that we evaluated and did not seem that offering only credit card for payment was a good option at this point. 2 Recommendation I am requesting that you approve changing the hourly parking rates in all the City of Dubuque parking ramps and parking lots in which gate control equipment is used to monitor hourly parking. This does not include parking lots controlled by parking meters. cc: Maurice Jones, Economic Development Director Jennifer Larson, Budget Director 3 RESOLUTION NO. 26-17 AUTHORIZING THE CITY MANAGER TO ADJUST THE FEES AND CHARGES FOR THE PARKING OF MOTOR VEHICLES IN THE MUNICIPAL PARKING RAMP Whereas, the City Code of Ordinances Section 9-14-321.640 authorizes the city manager, with the approval of the city council, to fix and establish the fees and charges for the parking of motor vehicles in municipal parking ramps; and Whereas, the parking division and city manager are recommending an adjustment to the fees and charges for parking motor vehicles in municipal parking ramps; and Whereas, the adjustment of fees and charges by the city manager requires city council approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council hereby authorizes and directs the City Manager to adjust the fees and charges for parking in municipal parking ramps. Section 2. The hourly fees for all parking ramps and hourly gate controlled parking lots shall be established at $1.00 per hour with a $10.00 per day maximum fee established. Passed, approved and adopted this 17th day of.January, 2017 Attest: Kev S. Firnstahl, City Clerk Kevin J. Lyn`Ch, Mayor`Pro-Tem