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Staff Report

Orange City Council
April 11, 2023

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Staff Report
Meeting
April 11, 2023
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Orange City Council
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Agenda Item
City Council
Item #: 6.1. 4/11/2023 File #: 23-0176
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Old Towne Parking Study Findings and Recommendations.

2. SUMMARY
A comprehensive parking study of Old Towne Orange was authorized by the City Council with the goal of identifying current and future needs and potential parking management tools. The purpose of this report is to present key findings and recommendations.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None. While future implementation of certain parking management strategies could have associated fiscal impacts, no funding is currently being requested.

5. STRATEGIC PLAN GOALS

1. Provide for a safe community
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
Old Towne Orange continues to maintain its historic charm. At the same time, it is in the midst of a gradual and sustained transformation that began over two decades ago, from a quaint shopping district to an increasingly popular destination. As the economic growth continues, there have been questions over whether Old Towne’sexisting parking supply will allow for realization of the full land- use potential identified in the City’s General Plan. The Old Towne Parking Study (“Study”)was commissioned in order to provide answers to those questions, and also serve as a basis for developing sound parking policies moving ahead.

Study Scope
The Study comprised four key components:

1. Establish current and future parking demand levels in order to determine any parking deficiencies or imbalances;

2. Identify sustainable parking management strategies that the City can implement, including City of Orange Printed on 4/6/2023Page 1 of 5
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Item #: 6.1. 4/11/2023 File #: 23-0176

2. Identify sustainable parking management strategies that the City can implement, including providing additional parking supply, if necessary;

3. Identify and prioritize “smart”technologies that could significantly improve parking and traffic efficiency and complement other mobility initiatives.

4. Evaluate the need to modify the City’s in-lieu parking fee program, currently available to development within the Downtown Parking District established in 1998.

Parking Supply and Demand
The study area is generally bounded by Palm Avenue to the north; Palmyra Avenue to the south; Center Street to the east; and Cypress Street to the west (see attached map.) Existing conditions were determined through performing inventory (supply) and parking occupancy surveys (demand.) This was done for a typical weekday and weekend. Then, future demand was projected based on estimating parking generation associated with the area’s remaining development potential and adding to the existing baseline.

Existing Conditions
There exist approximately 2,666 city-owned parking spaces in the Old Towne study area:
· 1,674 off-street spaces (14 city-owned surface lots plus parking structure) · 992 on-street spaces, including unrestricted and time-limited Parking surveys were conducted on a typical weekday and weekend, the data from which was reported on an hour-by-hour basis. Hourly demand and corresponding occupancy rates are shown on the attached charts, generally indicating the following:
· Low utilization (under 30%) between 10 pm and 8 am on weekends, and between 10 pm and 7 am on weekdays.
· Parking supply reaches approximately 50 percent by 10 am throughout the week · Peak occupancy of about 65% on both weekdays and weekends.

While overall parking supply well exceeds demand, even during the peak hours, streets and lots near the center of Old Towne experience very high utilization (85 - 100%) while facilities at or near the periphery of the study area experience low (25 - 50%) or very low (less than 25%) utilization. While this type of parking demand distribution is not unexpected, it contributes to the perception of a parking shortage.

Future Projections
To determine future demand, a shared parking demand model was developed based on the City’s approved land-use plan (which includes projects already entitled but not constructed) and nationwide parking data empirically derived. In addition, the land-use mixture and transportation system were taken into consideration, accounting for interaction between sites (symbiosis), and non-vehicle trips City of Orange Printed on 4/6/2023Page 2 of 5
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Item #: 6.1. 4/11/2023 File #: 23-0176
taken into consideration, accounting for interaction between sites (symbiosis), and non-vehicle trips into the area.

Based on various scenarios analyzed, the future parking deficiency can be as high as 1,076 spaces or as low as 154 spaces, depending on, among other things, the efficiency of the parking system as a whole and how much additional parking is supplied by future development. Likely, the ultimate shortfall will be around 500 - 600 parking spaces.

Parking Management Strategies and Smart Technologies
Based on the above needs assessment, the current parking supply is more than sufficient for existing conditions. Moreover, there is excess capacity to serve incremental development levels in Old Towne for the foreseeable future. However, the ultimate need for parking facilities is more uncertain, and can further evolve with future changes in travel behavior.

That being said, there are a number of parking management strategies that could be implemented to improve parking efficiency today while better positioning the City for economic development opportunities in the future. Such measures could (1) enhance the existing visitor experience, (2) improve circulation and mobility into and within the area, (3) assist merchants and businesses with creating parking turnover desirable to maximize storefront accessibility, and (4) defer - even potentially eliminate - the need to construct future parking facilities.

Smart Parking Infrastructure
The key parking strategies identified in the Study revolve around the implementation of smart parking infrastructure. Through the use of pavement sensors, cameras, digital signs, interactive apps, and even electronic pay stations, a number of different parking management tools can be integrated to work together.

1. Provide real-time, app-based information that can communicate the availability of parking at a given lot(s). Visitors would then know exactly where and when parking is available, which saves time, eliminates uncertainty, and reduces unnecessary circulation.

2. Facilitate paid parking. While sometimes unpopular when first introduced, this can be effective in creating turnover on high-demand streets and discouraging long-term visitors (and employees) from parking in prime locations. Unlike the obsolete coin-based parking meters, the new generation equipment is easy to use, can accommodate variable and demand-based pricing, streamline fee collection, and assist parking enforcement.

By improving the efficiency of the City’s parking facilities, smart parking technologies can substantially reduce the likelihood (or magnitude) of a future parking deficiency. In addition, any revenue streams generated using smart parking infrastructure could potentially be used for maintenance or fund other parking management programs. While the Study evaluated the availability and use of such technologies at a high-level, specific equipment and associated costs can be further investigated, along with phased deployment and funding strategies. This effort has been proposed in the form of a formal project contained in the Fiscal Year 2023-2024 Capital Improvement Program.

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Item #: 6.1. 4/11/2023 File #: 23-0176
Additional parking supply
This can be achieved through a combination of constructing more off-street parking or leasing privately owned spaces for public use. However, surface parking lots require large footprints and parking structures/garages are expensive to construct.

One potential augmentation to the City’sparking supply would be the possible development of the Grand Street Parking Lot. Primarily situated on the Old Fire Station Headquarters site, the property has the capacity to yield an additional 165 parking spaces. Given that the land is already city-owned, surface parking represents a cost-effective and flexible solution. Any surface parking can easily be repurposed in the future as conditions dictate and/or a better use for the site is identified.

Parking In-Lieu Fee
In 1998, the City established the Downtown Parking District, within which developers could pay a nominal fee in-lieu of providing code parking. At the time the study was commissioned, there was concern that the fee structure was insufficient for addressing long term needs and, because of its narrow boundaries, excluded many property owners from participating. Since then, Assembly Bill 2097 was passed, which limits the ability for municipalities to require developers to provide code parking within a ½ mile radius of a major transit center. The Orange Transportation Center, anchored by its Metrolink Station, meets that definition, and the entire study area falls within the ½ mile threshold. As a result, future development in this area can no longer be required to provide for the Municipal Code prescribed parking requirements. Because the concept of an in-lieu fee is premised on an enforceable code parking requirement, AB 2097 effectively renders the in-lieu fee untenable moving forward.

Notwithstanding, parking fees can still be charged, but must take on the form of a mitigation fee or a business improvement/special assessment district. Revenues collected from the former would only be available for capital investments whereas the latter can also fund maintenance and operations.

While further discussion and analysis would be required to implement either of these fee options, the Study lays the groundwork for doing so and, at the same time, identified maximum economically feasible fee levels as follows:
· One Time $10,000 per code prescribed parking space for new development · Annual Fee of $300-$600 per business for either new or all development In addition, any fees could be applied to the entire Study area, rather than the original eight square blocks that comprise the Downtown Parking District. Expanding the boundaries of any future fee area can serve to promote redevelopment in Old Towne while increasing revenue streams.

Summary
While the Study provides short and medium-term reassurances over the Old Towne parking supply, it does identify the possibility of an ultimate need if Old Towne is to fully build out. Whereas the City could previously expect future development to contribute toward additional parking supply, recent legislation precludes doing so. Therefore, if the City is to facilitate General Plan buildout of the area, it must look to alternatives for balancing parking supply and demand. The Study indicates that the more effective parking management strategies involve smart infrastructure and capital investment, City of Orange Printed on 4/6/2023Page 4 of 5
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Item #: 6.1. 4/11/2023 File #: 23-0176
and also identifies sustainable funding mechanisms that may warrant further consideration.

7. ATTACHMENTS
· Study Area Map
· Existing Parking Demand Chart
· Staff Report Authorizing Parking Study, August 2021
· Old Towne Parking Study
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