PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #11.A
SUBJECT/TITLE:
ADDITION OF THE PARKLET FEE TO THE CITY OF PISMO BEACH FEE SCHEDULE
RECOMMENDATION:
1. Conduct a public hearing to accept public comment on the proposed fee;
2. Adopt a Resolution adopting a new parklet fee effective on January 4, 2022 and adding to the existing fee schedule adopted by Resolution No. R-2015-036.
BACKGROUND:
The City of Pismo Beach charges various service fees to Pismo Beach residents, businesses, and visitors for using City services, facilities, and resources. These fees are charged to cover the City’s cost of providing those services to the public. The most recent comprehensive fee study and resulting update to the fee schedule was adopted by the City Council on May 5, 2015, by Resolution No. R-2015-036, which became effective on July 5, 2015. This was updated by various resolutions each year.
On December 7, 2021, the City Council discussed the temporary outdoor dining and parklet program and gave direction to staff to return with a fee resolution for Council action establishing a monthly fee for each parking space, or equivalent area of right-of-way, occupied by a parklet. Staff has developed a proposed parklet fee that would cover a portion of the cost to provide city services and would assist in mitigating the loss of parking to maintain visitor access to coastal resources. The fiscal impact of adopting the attached Resolution is a potential cost recovery between $198,360 and $444,600 per year that would be deposited into the City’s Parking Enterprise Fund. Staff recommends that the Council hold a public hearing to hear public comments on the proposed fee, then adopt the attached Resolution (Attachment 1) updating the City’s fee schedule.
Process of Updating City Service Fees
The City’s Municipal Code typically requires updates to the City’s service fees to be adopted by Resolution. Any update to the City’s service fees requires a public hearing to allow the Council to receive public input. Service or user fees include those fees in which there is a charge for the use of a facility or City service. Staff develops proposed service fees to reimburse all or a portion of the costs borne by the City in providing the services.
These costs include City staff salary and wages, benefits, operating costs, and overhead costs. The Council can choose to charge less than the full cost to provide the service or resource, which means that the service or resource would be subsidized by the City’s funds. For the service fee proposed in this staff report and Resolution, adoption of the attached Resolution would allow the fees to be effective on January 4, 2022. To avoid the partial proration of the first three days of January for this fee, the fee will be imposed for the partial month at the same rate as subsequent months.
11.A-1Council Agenda 1-4-2022
Proposed Update to the City Fee Schedule
Staff recommends adding the parklet fee to the City’s Fee Schedule. The Public Works Department and Engineering Division would oversee the charging and collecting of the parklet fees as the parklets subject to the fee are located in the City’s right-of-way.
Temporary Outdoor Dining and Parklet Program
The current temporary outdoor dining and parklets program was developed to help struggling businesses sustain themselves through the COVID pandemic. As such, the program has been no-cost to the businesses. However, there are real costs to the City, including an increased workload to the Public Works staff and a significant loss of parking revenue. In addition, City staff is currently developing guidelines for a possible permanent outdoor dining program, taking into account a possible amendment to the Local Coastal Program for subsequent local approval and Coastal Commission certification. Collected fees would also be used to mitigate the impacts of this lost parking on the visitor, which could include acquiring additional parking and creating additional opportunities for accessing the coast. The proposed parklet fee below does not take into account staff time to manage the parklet program or mitigate development of the Local Coastal Program amendment. As such, this fee may be modified in the future to account for these other costs.
Proposed Parklet Fee
At the December 7, 2021 Council Meeting, staff discussed potential fee options based on 80%, 85%, and 100% occupancy for off-peak and peak season. These fees that were presented at that meeting as a potential fee ranged from $640 to $1,320 per month per parking space, or equivalent area of right-of-way. After staff discussed the difference between peak vs off-peak season which sometimes may not be clear, the Parking Division’s demand-based rate setting structure to modify rates based on actual occupancy (not which season), ensuring consistent messaging and collection of the fee regardless of the month or season, staff are proposing one monthly fee regardless of the season.
Staff developed a proposed fee based on the average monthly cost per metered parking revenue received from the last 12 months from December 2020 to November 2021. This amount takes into account actual occupancy rates during this period. The proposed fee is $580 per month per parking space, or equivalent area of right-of-way, occupied by a parklet, or $6,960 per year per parking space.
Council could also consider using 80% or 100% occupancy of the parking spaces and the projected average monthly cost per meter parking revenue. At 100% occupancy, the monthly fee per parking space would be $1,300, or $15,600 per year per parking space.
At 80% occupancy, the monthly fee per parking space would be $900, or $10,800 per year, per parking space. Staff recommends that these fees be increased by Consumer Price Index (CPI) each year to keep up with inflation.
Currently, there are four parklets occupying on-street parking and one occupying sidewalk in the City’s right-of-way, which occupy 26 parking spaces plus an additional 2.5 spaces
11.A-2Council Agenda 1-4-2022
of equivalent right-of-way. The current amount of fees collected is based on the 5 businesses that have parklets in the City’s right-of-way, occupying about 28.5 parking spaces.
The following table lists the City’s proposed parklet fee options, where staff recommends the $580/parking space, or equivalent area of right-of-way, occupied by a parklet per month fee based on actual occupancy in the last 12 months.
Table 1: Parklet Fee Options
Fee Name Proposed Fee Estimated
quantity of
fee
collected
Estimated
fee
collected
for 1 year
CPI
Updates
New or
Existing
Fee
Proposed Parklet
Fee (based on
actual occupancy in
the last 12 months)
$580/parking
space per
month
28.5 $ 198,360 Yes New
Proposed Parklet
Fee (based on 80%
occupancy of the
parking spaces)
$900/parking
space per
month
28.5 $ 307,800 Yes New
Proposed Parklet
Fee (based on 100%
occupancy of the
parking spaces)
$1,300/parking
space per
month
28.5 $ 444,600 Yes New
Cost Recovery
Based on the recommended parklet fee of $580 per month per parking space, or equivalent area of right-of-way, occupied by a parklet and the estimated number of parking spaces being used as parklets, if fully realized, the total estimated fee collected per year could be $198,360. These funds would be deposited into the Parking Enterprise Fund to be used to offset the impacts of the lost parking spaces and revenue.
Fee Comparison to other Cities
As this is a new fee, staff reviewed other cities’ parklet fees and most cities are currently reviewing their own parklet fees considering the current COVID-19 climate. Each city differs based on its parking situation and usage of city property. Pismo Beach’s proposed parklet fee is based on usage of parking spaces that would otherwise be generating revenue. The City of Paso Robles charges a quarterly fee of $250 (or approximately $83 per month) for a public parking lot parklet. The City of Capitola is proposing a parklet pilot program with an annual fee of $3,400 per parking space (or $283 per month) that is used, which is the average revenue that the city generates annually through a single, rented parking space in the village. The City of Ventura is proposing a one-time parklet fee ranging from $7,650 to $12,300 and an annual fee ranging from $7,000 to $14,000, based on the square footage of the parklet.
11.A-3Council Agenda 1-4-2022
Conclusion and Recommendation
Staff recommends that the City Council conduct a public hearing to accept public comment on the proposed fee and adopt a Resolution (Attachment 1) adopting a new parklet fee, effective on January 4, 2022 and adding to the existing fee schedule adopted by Resolution No. R-2015-036.
FISCAL IMPACT:
The fiscal impact of approving the attached Resolution is $198,360 for staff’s recommended $580 per month per parking space, or equivalent area of right-of-way, occupied by a parklet that would be deposited into the Parking Enterprise Fund.
Prepared by: Meeting Date: January 4, 2022
Marc Arroyo, Senior Management Analyst
Submitted by:
Nadia Feeser, Administrative Services Director
City Manager Approval:
11.A-4Council Agenda 1-4-2022
RESOLUTION NO. R-2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA ADOPTING A NEW PARKLET FEE, EFFECTIVE ON JANUARY 4, 2022, AND ADDING TO THE EXISTING FEE SCHEDULE ADOPTED BY RESOLUTION R-2015-036
WHEREAS, the City desires to add a parklet fee for those businesses occupying the City’s parking space or equivalent area of right-of-way, occupied by a parklet; and WHEREAS, the City wishes to comply with both the letter and the spirit of Article XIIIB of the California Constitution and limit the growth of taxes; and WHEREAS, the City desires to establish a policy of recovering the full costs reasonably borne of providing special services of a voluntary and limited nature, such that general taxes are not diverted from general services of a broad nature and thereby utilized to subsidize unfairly and inequitably such special services; and WHEREAS, notice of public hearing has been provided per California Government Code Section 6062a, oral and written presentations made and received, and the required public hearing held; and
WHEREAS, a schedule of fees and charges to be paid by those requesting such special services has previously been adopted under Resolution R-2015-036 so that the City might carry into effect its policies; and
WHEREAS, at the January 4, 2022 City Council meeting, the City Council held a public hearing and discussed the various new fees.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
1. Fee Schedule Adoption. The City Council approves and adopts the addition to the existing fee schedule set forth in Exhibit A (Fee Schedule) to this Resolution, effective on January 4, 2022. The revenues generated from the new parklet fee would be deposited in the Parking Enterprise Fund. The City Council specifically finds that the fees adopted are reasonable and do not exceed the cost of providing the service.
2. Collection and Listing of Fees. Exhibit A schedule of fees and charges are hereby directed to be computed by and applied by the Public Works Department for the herein listed special service when provided by the City or its designated contractors. The fees listed in in Exhibit A shall be charged and collected for the enumerated services.
3. Separate Fee for Each Process. All fees set forth by this resolution are for each identified process; additional fees shall be required for each additional process or
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Attachment 1
service that is requested or required. Where fees are indicated on a per-unit of measurement basis the fee is for each identified unit or portion thereof within the indicated ranges of such units.
4. Added Fees and Refunds. Where additional fees need to be charged and collected for completed staff work, or where a refund of excess deposited monies is due, and where such charge or refund is ten dollars ($10.00) or less, a charge or refund need not be made.
5. Constitutionality. If any portion of this resolution is declared invalid or unconstitutional then it is the intention of the City Council to have passed the entire Resolution and all its component parts, and all other sections of this resolution shall remain in full force and effect.
6. Copy Available to Public. A copy of Exhibit A (Fee Schedule) shall be maintained in the Administrative Services Department Office and in the City Clerk’s files for review by the public during business hours.
7. Effective Date. This revisions to the fee schedule set forth in this Resolution shall go into full force and effect on January 4, 2022.
BE IT FURTHER RESOLVED that the fee in Exhibit A, listed as CPI Updates: Yes, shall be increased by the amount of annual increase in the Consumer Price Index – U (Los Angeles-Riverside-Orange County, CA All Urban Consumers) as reported for February of each year, effective July 1, 2022, and each year thereafter on July 1st.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 4th day of January 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
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Attachment 1
City Fee Schedule Addition Effective January 4, 2022
Fee Name Proposed Fee Estimated quantity
of fee collected
Estimated
fee collected
for 1 year
CPI
Updates
New or
Existing
Fee
Parklet Fee $580/parking space
per month or any part
of a month
28.5 $198,360 Yes New
11.A-7Council Agenda 1-4-2022
Attachment 1.A