San Luis Obispo City Council
May 14, 2024

City Council

SPECIAL MEETING AGENDA

Tuesday, May 14, 2024, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo

SPECIAL MEETING OF THE CITY COUNCIL
The City Council holds in-person meetings. Zoom participation will not be supported at this time. The Special Meeting will be streamed to the City's website, YouTube Channel, and Channel 20.

INSTRUCTIONS FOR PUBLIC COMMENT:

Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):

Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk’s Office at 990 Palm Street, San Luis Obispo, California, 93401.

Email - Submit Public Comments via email to [email protected]. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting.

Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to councilmembers, however, submissions received after the deadline may not be processed until the following day.

Public Comment during the meeting:

Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location. Verbal comments must be limited to 3 minutes. As this is a Special Meeting, public comment will only be accepted for item(s) listed on the agenda.

Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at [email protected] or (805) 781-7114.

Pages

1. CALL TO ORDER
Mayor Erica A. Stewart will call the Special Meeting of the San Luis Obispo City Council to order.

2. PLEDGE OF ALLEGIANCE
Council Member Michelle Shoresman will lead the Council in the Pledge of Allegiance.

3. PUBLIC COMMENT FOR ITEMS ON THE AGENDA ONLY
As this is a Special Meeting, Public Comment will only be accepted for items listed on the agenda.

4. PUBLIC HEARING ITEM

4.a PARKING RATE STUDY REVIEW AND CONSIDERATION OF
POTENTIAL RATE ADJUSTMENTS (Estimated Time: 120 minutes) 5 Recommendation:

Receive a presentation on the draft Parking Rate Study, including consideration of preliminary recommendations, provide direction regarding the selected rate options for adoption and implementation, and provide direction to staff to finalize the Parking Rate Study; and

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, establishing parking rates for the City’s parking structures and for parking permits”; and

2. Introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 10, Chapter 52 (Parking Meters and Parking Payment Centers), of the Municipal Code Modifying Hourly Parking Rates On-Street and In Surface Parking Lots.”

3. 5. ADJOURNMENT
The next Regular Meeting of the City Council will be held on May 21, 2024 with Closed Session at 4:00 p.m. in the Council Hearing Room and the Regular Meeting at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

LISTENING ASSISTIVE DEVICES for the hearing impaired - see the Clerk.

The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410.

City Council meetings are televised live on Charter Channel 20 and the City's YouTube Channel: www.youtube.com/CityofSanLuisObispo. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website https://www.slocity.org/government/mayor-and-city-council/agendas-andminutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7114.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: May 14, 2024
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
Donna King, Parking Program Manager

VIA: Whitney McDonald, Interim City Manager
SUBJECT: ITEM 4A - PARKING RATE STUDY REVIEW AND CONSIDERATION OF

POTENTIAL RATE ADJUSTMENTS
Staff received the following questions about Item 4.a which recommends the Council review the draft Parking Rate Study and consider potential rate adjustments. The questions are below with staff’s response shown in italics:
1) What is the amount of General Fund money currently allocated to the Cultural Arts District Parking Structure construction project? Per the current 2023-25 Financial Plan, there is $1,990,000 of General Fund money allocated for the construction of the Cultural Arts District Parking Structure.

This funding is intended to support the frontage improvements specifically related to the areas in front of the SLO Repertory Theatre. It should be noted that regardless of whether the SLO Repertory Theatre project had been included on the site or whether the theatre project moves forward, these frontage improvements and costs would have been required for the parking structure project, as it is typically required for the entire property frontage for all large development projects in the City.
2) What is the estimated costs of the Cultural Arts District Parking Structure viewing deck and can that be paid from the General Fund? See memo attached to this agenda correspondence, dated February 4, 2024, which documents the costs of the viewing deck as approximately $570,000.

Ongoing costs associated with the loss of 4 parking spaces to accommodate ADA upgrades for the viewing deck are included in this cost. This was based on current rates at $3/hour. Regardless of how the viewing deck is funded, the total debt for the structure will remain unchanged. Debt financing funds can only be used for the Cultural Arts District Parking Structure construction, and these funds are nonrefundable.

Item 4.a Parking Rate Study Review and Consideration of Potential Rate Adjustments Page 2 3) What are the implications of using the General Fund or other funding sources to supplement the Parking Enterprise Fund?
Using General Fund sources to supplement the Parking Enterprise Fund is discussed on packet page 20 of the Council Agenda Report. In addition, a report providing background regarding the City’s Parking Fund Financial Policies is attached to the agenda report on packet page 107. It is a General Plan policy that the City’s parking program be self-supporting. Any proposed changes to Parking’s status as a designated enterprise fund would require General Plan amendments and likely other policy document amendments.
4) Please explain the rationale behind the recommendation to keep the 10-hourmeter-passes at $60, but reduce the structure passes to $45/month (contradictory to the Dixon recommendation on this topic)? Why not make these two pass types the same cost?
Dixon’s recommendation for the costs of parking permits includes a higher cost for the structure permit than the 10-hr on street parking permit. This is consistent with the current structure of the permit costs and aligns with the operational and maintenance costs of the two facilities – the cost of operating and maintaining the structures are higher than on-street parking. Staff’s recommendation at this time is to align the cost of the permits with best practices in curbside management to encourage the use of structure parking for longer parking sessions, with street parking being appropriate for short term, higher turnover parking. 5) The financial forecasts in Option B and C were made with different pass rates than what staff is now recommending. How do we think this will impact the calculations/forecasts made? How will this reduce the change in financial position in Table 4?
With any of the three options, staff is recommending the costs of parking permits to be $60 for the monthly 10-hr permit and $45 for the parking structure permit.

Staff anticipates this change would be revenue neutral in that a reduced parking structure parking permit cost would incentivize an increase in the total number of parking structure permits purchased. Staff will continue to monitor permit purchases, revenue, and usage and report revenue received during the City’s quarterly financial reports.
6) When does staff anticipate the technology plan to be ready for release and will it evaluate costs of implementing the new technology proposed? Staff anticipates presenting the technology implementation plan to Council with costs and budget plans for implementation in Winter 2024.

Item 4.a Parking Rate Study Review and Consideration of Potential Rate Adjustments Page 3 7) In table 4, we generally see increased changes in our financial position projected until 28-29. Then, things decrease pretty significantly. What is the cause of this?
The variances in Change in Financial Position for all options are due to capital projects budgeted for FY 2024-25 through FY 2028-29. At the November 7, 2023, Council meeting, staff presented a Parking Fund Forecast which included reductions in Parking Structure Asset Maintenance project funding in order to provide more funding for parking rate relief. The Parking Rate Study options include the same reduced capital project budgets as part of the Expenditures shown in Table 4 on page 24 of the agenda packet.
8) Currently, there is an overnight rate that is different than the daily rate. In the proposed resolutions for Option B and C, this is eliminated for the structures and only the $8 daily rate applies. How will this change enforcement of people staying overnight in the structures, logistically? Parkers will be able to park vehicles overnight and pay the max daily rate of $8 per day under the new rate structure. Parking staff will monitor the overnight parking usage. If necessary, a follow-up resolution or ordinance will be presented to establish regulations for overnight parking if storage of vehicles in parking structures becomes an issue. Additional rate changes are not anticipated. 9) It looks like the occupancy rate of downtown parking has been reduced from 62% to 50% or 58% to 51% for the time periods measured. Is this correct? Correct. The occupancy study performed in March 2024 for the Parking Rate Study shows a reduction in total average peak occupancy when compared to the occupancy study performed in July and September 2022 for the Access and Parking Management Plan. Parking demand is measured by percent of spaces occupied at a given time and varies (?) from day to day, month to month, and even seasonally. The data collected in 2022 is referenced since it is the most recent data set but does not provide a true “apples to apples” comparison because of the difference in the time of year of when the occupancy studies were performed. 10) Have you looked at the financials if the occupancy was back at 2022 levels or even further back prior to the pandemic? For example, how much additional revenue would be raised if on-street paid parking occupancy was back at the 2022 numbers?
No, the financial model scenarios developed by Dixon Resources Unlimited for the Parking Rate Study do not include alternatives whereby the occupancy levels used for the models are those observed in July or September 2022 when the last occupancy study was performed. The scenarios were based on data collection from specific dates in February and March 2024. Analysis of historical occupancy data was not part of the scope of the current parking rate study.

Item 4.a Parking Rate Study Review and Consideration of Potential Rate Adjustments Page 4 11) If the occupancy was back at the 2022 numbers, how would that affect the recommended Option C hourly rates to keep the same financial position result?
Parking occupancy for the Draft Parking Rate Study report was analyzed based on data collection from specific dates in February and March 2024. The occupancy data was used to produce block-by-block analysis to assist in the generation of the financial forecasting in the rate study report. It would be logical to assume that when parking occupancy rates increase, there would be a corresponding increase in revenue; but that could also be a function of more customers using lower cost parking permits or it could also be a function of shifting more higher revenue per hour on-street customers to lower cost per hour parking structures. 12) Have sales tax revenues been considered? Does a reduced occupancy also affect sales tax revenues such that the city is taking a loss there as well? Impacts of parking rates on sales tax revenue was not included in the study’s scope of work. The staff report does have a high-level discussion of sales tax revenue beginning on packet page 20.
13) Is the financial model used to calculate the options available to the public so that the public could create their own scenarios?
No. The consultant hired to prepare the Parking Rate Study report has a proprietary financial modeling tool that is not available for public use. Dixon Resources Unlimited provided 16 financial modeling scenarios based on the scope of their contract to assist staff in determining the best options for Council consideration.
14) Can an appendix with the results of the community survey be provided? Please refer to Attachment A of the draft Parking Rate Study, beginning on packet page 51, for the community survey results.

ATTACHMENT
A – Memo regarding Costs for Cultural Arts Parking District Structure Viewing Deck

City of San Luis Obispo, Council Memorandum
Sunday, February 04, 2024
TO: Derek Johnson, City Manager
FROM: Madeline Kacsinta, Capital Improvement Program Administrative Manager SUBJECT: Costs for Cultural Arts District Parking Structure Viewing Deck Dear Mr. Johnson,
As we progress with the construction of the Cultural Arts District Parking Structure, I want to provide you with an update on the associated costs with the viewing deck, taking into consideration a decision made during the design phase.

During the design phase, the City made a strategic decision to repurpose a portion of the top deck into an event space, allowing individuals and organizations to rent the area for various events. While this innovative addition aligns with the City's commitment to enhancing public spaces, it comes with certain short-term and long-term financial implications. Costs below cover design, construction, and materials related to the enhancements described.

Short-Term Costs:

1. Construction and Material Costs:
o The additional requirements for the viewing deck, including increased load capacity, stair enclosure drainage, fire protection enhancements, roof extension for tower #3, and modifications to stairs #2 and #3, necessitated an investment of approximately $420,000.

2. Design Costs:
o The incorporation of the viewing deck scope mid-contract increased the initial design cost from $7,800 to a total of $27,300.

3. Fees:
o A fee of $5,000 for a Fire professional and $42,500 for A3 Occupancy were essential components of the short-term costs.

4. Total Short-Term Costs:
o The cumulative short-term impact costs for the viewing deck amount to $464,800.

Long-Term Costs:

1. Loss of Parking Spaces:
o Due to necessary ADA upgrades, the construction will result in the loss of 4 parking stalls. This loss will translate into ongoing revenue implications for the Parking Division. o According to FY2023, the per structure space revenue is $2,765/year when adjusted for the recent rate increase.
o Over a 30 year period, the 4 parking spaces removed would equate to a Net Present Value of $104,262 based on an interest rate of 10%.

Costs for Cultural Arts District Parking Structure Viewing Deck Page 2

2. Reduction in Solar Power:
o The transition of parking spaces to habitable areas led to the removal of solar panels, causing a 16% reduction in Photovoltaic (PV) capacity. This is expected to result in increased electrical costs for the city after the project is completed, compared to what it could have been prior to including the viewing deck.

Please note that this memo is not intended to halt the ongoing construction but to apprise you of the financial implications associated with the addition of the viewing deck. If you have any questions or require further details, feel free to reach out.

Sincerely,
Madeline Kacsinta
Capital Improvement Program Administrative Manager
E [email protected]
T 805.781.7094

Item 3a
Department: Public Works
Cost Center: 5101
For Agenda of: 5/14/2024
Placement: Public Hearing
Estimated Time: 120 Minutes
FROM: Matt Horn, Public Works Director
Prepared By: Alex Fuchs, Mobility Services Business Manager Donna King, Parking Program Manager
SUBJECT: PARKING RATE STUDY REVIEW AND CONSIDERATION OF

POTENTIAL RATE ADJUSTMENTS

RECOMMENDATION

1. Receive a presentation on the draft Parking Rate Study, including consideration of preliminary recommendations, provide direction regarding the selected rate options for adoption and implementation, and provide direction to staff to finalize the Parking Rate Study; and

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, establishing parking rates for the City’s parking structures and for parking permits”; and

3. Introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 10, Chapter 52 (Parking Meters and Parking Payment Centers), of the Municipal Code Modifying Hourly Parking Rates OnStreet and In Surface Parking Lots.”

POLICY CONTEXT
Section 4.141 of the General Plan’s Land Use Element (LUE) addresses parking for the Downtown area. The policy states that the City must ensure there is a diversity of parking opportunities and any major increases in parking supply should take the form of structures located on the perimeter of the commercial core.

The Parking Services program of the Public Works Department offers a variety of hourly rates and permits to provide access to on-street, surface lot, and structured parking facilities for use by employees, businesses, and visitors of the Downtown area. The City recently began construction on the fourth public parking structure, the Cultural Arts District

1 Policy 4.14 Parking - The City shall ensure there is a diversity of parking opportunities in the Downtown.

Any major increments in parking supply should take the form of structures, located at the edges of the commercial core, so people can walk rather than drive between points within the core. Retail uses outside the core, and professional office developments, may have on-site parking for customers and clients.

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Parking Structure (CADPS), in alignment with the City’s goals for Downtown parking and access.

Section 13.12 of the General Plan’s Circulation Element (CE) states that the City shall manage curb parking downtown to encourage short-term use and that parking programs shall be financially self‐supporting.

Parking Services actively manages curb parking through time-limited parking and strategically located commercial and passenger loading zones. Limited timed parking onstreet in the core of Downtown encourages use of off-street facilities for long-term parking needs. Parking Services is also responsible for maintaining the long-term fiscal health of the Parking Fund and ensuring that all obligations and financial policies are met.

Appropriately set hourly parking rates and permit fees ensure the fund can meet these obligations and policies.

Economic Resiliency, Cultural Diversity, and Fiscal Sustainability is a Major City Goal as identified in the adopted 2023-25 Financial Plan. Parking Services plays a critical role in fostering a vibrant local economy by effectively managing parking demand and access to Downtown. The Parking Fund must also maintain fiscally responsible and sustainable operations as indicated in the General Plan CE Section 13.1.2.

REPORT-IN-BRIEF
Council received an update on the Parking Services program in November 2023 and, based on better than anticipated bond financing and construction costs for the CADPS project, reinstated the first hour free and free Sunday parking in the structures to provide immediate, temporary relief to address community concerns. Council also authorized a Request for Proposals for a Parking Rate Study. In January 2024, the City contracted with Dixon Resources Unlimited to complete the Parking Rate Study.

This report details the five main areas of the study: Community Outreach, Parking Supply and Occupancy, Program and Operational Changes, Financial Modeling, and Preliminary Recommendations. The preliminary recommendations from the Parking Rate Study include suggestions for various program and operational changes, including improved communication and parking signage, and improved technology following completion of a technology roadmap. Staff is recommending moving forward with these recommendations as well as other administrative changes to parking programs and operations that are discussed further in this report. These changes include:
 Reduce the number of mobile apps to one vendor;
 Expand the on-street time limit from 2 to 3 hours;
 Lower validation costs to $1 per hour;
 Increase the number of 10-hour and structure permits available;  Reinstate a gated parking system at 842 Palm following evaluation of available

2 Commercial Parking. Policy 13.1.1 Curb Parking - The City shall manage curb parking in the downtown to encourage short‐term use to those visiting businesses and public facilities. Policy 13.1.2 City Parking Programs - City parking programs shall be financially self‐supporting.

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gated system technologies; and
 Implement incentives program once a single mobile app vendor is selected.

In addition, Dixon Resources Unlimited provided three rate change options that prioritize different key takeaways from community feedback. The three options include:
 continuing the first hour free in parking structures (Option A),  lowest rates (Option B), or
 a balanced approach (Option C).

Each of the three options would support fiscally sustainable and technologically feasible parking services, so staff is supportive of implementing any of the three options. Each option prioritizes different rate structures and would create different impacts to the community. A range of feedback has been provided by community members and stakeholder groups at various points in the process, which has included significant outreach and input opportunities. This feedback has included varying degrees of support for different aspects of the three options. In light of the community input and the conclusions in the Rate Study that any of the three options would be financially and technologically feasible, staff is recommending that Council consider and select one of the three options. Notably, staff is recommending one slight modification to each of the options that would maintain the current permit cost for on-street 10-hour meter spaces ($60/month) and reduce permit costs for all structure permits to $45/month. Draft resolutions and ordinances have been provided to implement any of the three options, as well as the additional program modifications recommended by staff.

DISCUSSION
Background
The City recognizes the importance of providing accessible and affordable parking options for community members, businesses, and visitors of the Downtown area. As such, it is essential to periodically assess the existing hourly parking rates and parking permit fees to ensure alignment with the City's goals of maintaining an efficient, equitable, and financially self-supporting public parking system. The City’s parking rates and fees must sufficiently cover the Parking Fund’s annual operating costs, debt service payments, and capital projects needs.

For over a decade, City financial plans have discussed and budgeted for the construction of a fourth public parking structure based on projected future need and development.

Funding mechanisms to cover anticipated debt service repayment centered on hourly parking rates to ensure immediate and long-term sustainability of the Parking Fund. The 2021-23 Financial Plan3included a full discussion of the current position of the Parking Fund and the need for rate increases over multiple years to support the construction and debt service associated with the new parking structure, as well as ongoing funding needs for parking services. Council approved on-street and off-street rate increases effective July 1, 2021, with the understanding that staff would return with additional rate increases as part of the 2022-23 Supplemental Budget.

3 June 1, 2021 – Item 6a – Adoption of the 2021-23 Financial Plan

Item 3a
On June 7, 20224, Council adopted the Fiscal Year (FY) 2022-23 Supplemental Budget which included multiple hourly parking rate increases. Two of the rate increases were put into effect between January 2023 and July 2023, effectively doubling rates across all public parking facilities. The increases were based on the best available information for construction costs and debt service repayment estimates for the new Cultural Arts District Parking Structure (CAD-PS), as well as expenditure needs for the parking program. Staff were directed to then monitor and evaluate opportunities to further modify rates depending on final construction costs and interest rates at time of bond issuance.

Just prior to the rate increases, parking infrastructure and technology changes occurred.

Those changes included the transition from single space parking meters to multi-space parking meters in summer 2021 and summer 2022 and the introduction of mobile payment applications in fall 2021. The technology changes were necessary due to the age of the existing parking asset, which did not support current communications technology. In summer 2023, changes were also made to the gate system at the 842 Palm Street parking structure to address queueing during peak usage. These changes instituted a gateless system that requires users to pay for parking upon arrival rather than at exit (a “park-pay-play” model rather than a “park-play-pay” model that is in use in the City’s other two parking structures).

In February 20235, when Council adopted the Access and Parking Management Plan (APMP), Council directed staff to return with a study evaluating all parking rates and fees.

With the adoption of the 2023-25 Financial Plan, Council allocated $150,000 in FY 2023- 24 to complete a parking rate study, which would present recommended operational and programmatic changes including hourly rates and permit fees to address concerns from the community about the recent rate increases while maintaining a solvent Parking Fund.

Parking rate studies are typically completed by agencies every two to five years to assess parking demand, occupancy rates, and revenue generation trends, as well as to address future capital and operational needs.

Based on better than anticipated bond financing and construction costs for the CADPS, staff returned to Council on November 7, 20236, to provide an update on the Parking Services program including consideration of near-term parking rate relief options addressing community concerns. Council adopted Resolution No. 11456 (2023 Series) reestablishing the first hour free for the structures and free Sunday parking in the structures effective November 23, 2023 through June 30, 2025, to provide immediate, temporary relief. Table 1 shows the rate changes that occurred between January 2023 and November 2023.

4 June 6, 2022 – Item 6a – Adoption of the 2022-23 Supplemental Budget 5 February 21, 2023 – Item 6a. Adoption of the 2023 Access and Parking Management Plan 6 November 7, 2023 - Item 6a. Parking Program Update and Authorize Advertisement of a Request for Proposals for a Parking Rate Study

Item 3a
Table 1: Downtown Parking Rates
Effective
January 1, 2023
Effective
July 1, 2023
Effective
November 23, 2023
On-Street Parking
Downtown Core, 2-hr $ 2.00 $ 4.00 $ 4.00
Outer Perimeter, 10-hr $ 1.50 $ 3.00 $ 3.00
Parking Structures
1 st Hour $ 0.00 $ 3.00 $ 0.00
Hourly (after 1st hour) $ 1.50 $ 3.00 $ 3.00
Sunday (5 AM – 11:59 PM) $ 1.50/hr. $ 3.00/hr. $ 0.00
Daily Max $ 6.00 $ 12.00 $ 12.00
Overnight $ 15.00 $ 15.00 $ 15.00
On November 7, 2023, Council also authorized the advertisement of a Request for Proposals (RFP) for a Parking Rate Study to evaluate various rate and program scenarios based on community input, existing parking supply, occupancy, and length of stay data analysis, and future needs and demands. Through the rate study process, the selected consultants would then develop parking priorities and recommendations, taking into account community and downtown business parking concerns, as well as financial requirements for the parking program.

Parking Rate Study
The Parking Rate Study is a comprehensive evaluation of parking rates and permit fees aimed at rightsizing rates to maintain a self-supporting Parking Fund while also enhancing the user experience and supporting a vibrant economy. The result of the study is a report that summarizes the input and data gathered to develop financial models of various scenarios, as well as recommendations for immediate and future changes.

On January 23, 2024, the City Manager approved the award of the contract to Dixon Resources Unlimited (Dixon) to complete the Parking Rate Study. The study is broken down into five main areas: Community Outreach, Parking Supply and Occupancy Study, Program and Operational Changes, Financial Modeling, and Preliminary Recommendations. These areas are summarized below and in detail in the draft Parking Rate Study report included as Attachment A.

Community Outreach Analysis
The Parking Rate Study project plan prioritized community input. Parking plays a critical role in the customer satisfaction of the Downtown area, and the community has been actively engaged in providing input throughout the rate study process. One of the main feedback opportunities for community input during the rate study was an online community survey available through the City’s Open City Hall7 process. The survey was open for four weeks and received 2,784 responses, which is a significant response rate for this type of survey. The survey responses represent approximately 230 hours of community input. Key findings from the survey include:

7 https://communityfeedback.opengov.com/portals/sanluisobispoca/Issue_13598

Item 3a
Duration of stay
 Most community members indicated that the current 2-hour on-street time limit is not enough.
 Both residents and visitors indicated that they typically stay in Downtown for 3 hours.
 When asked about their most recent trip to Downtown, most residents stayed for 2 hours.

Cost of Parking
 Both residents and visitors indicated that cost is the most important factor when looking for parking.
 Most business owners indicated that they believe the 2023 paid parking rate increase has led to a drastic decrease in business revenue.

Availability of Parking
 Most community members reported that they can find parking in 5 minutes or less.

Downtown Employee Parking Options
 Most business owners indicated that they do not provide parking for employees, and their employees typically have a hard time finding nearby parking.  Most employees indicated that they do not purchase the Quarterly Structure Pass or 10-hour meter permit.

Community members also provided input via community meetings, phone calls, emails, and social media posts that were included in the Community Outreach Summary section of the draft Parking Rate Study report. The Public Engagement section of this report below provides detailed information on community and stakeholder meetings.

Parking Supply and Occupancy Study
Parking supply and occupancy studies allow the use of data regarding parking space usage to make parking management decisions. Dixon Resources Unlimited performed an inventory of on-street parking spaces and both private and public off-street parking spaces in and around the Downtown area8. Occupancy data, including length of stay information, was collected in two-hour intervals between 9 a.m. and 9 p.m. on Wednesday, February 28th, Saturday, March 2nd, and Saturday, March 9th. While this is a point in time observation and might not align with actual usage year-round, Dixon Resources Unlimited has recommended that continual and ongoing data collection using the City’s License Plate Reader (LPR) technology be used to identify seasonal and time of day trends. The parking space inventory and occupancy data were then used to

8 The study area is the same as what was used for the 2023 Access and Parking Management Plan (APMP) update to assure an ‘apples-to-apples’ comparison.

Item 3a
produce block-by-block heat maps based on percentage of spaces occupied. Below are the key findings from the supply and occupancy study:Occupancy  The average occupancy rates for each public parking zone did not exceed the 85% threshold9 at any point during the study.
 A few private off-street lots exceeded the 85% threshold at various times of the day, with 12 out of 97 private lots recording a peak occupancy of 100% during at least one data collection time. However, no public off-street locations exceeded 85% at any point observed.
 The highest average occupancy rate for on-street (66%) was observed on a Wednesday between 11:00 a.m. – 1:00 p.m.
 The highest average occupancy rate for public off-street (41%) was observed on a Saturday between 1:00 p.m. – 3:00 p.m.

Length of Stay
 81% of vehicles observed on-street stayed less than two hours and 94% stayed less than four hours.
 71% of vehicles observed in public off-street locations stayed less than two hours and 87% stayed less than four hours.
 21% of vehicles observed in private off-street locations stayed less than two hours and 60% stayed less than four hours.

The data that was collected for the Parking Rate Study and for the APMP update occurred at different times of the year and on different dates10,however, the Parking Rates Study data is the most recent occupancy data collected. The peak overall occupancy observed during the Parking Rate Study was 44% on Wednesday, February 28, 2024, at 1:00 p.m. as shown by Figure 1 below. Peak overall occupancies observed during the 2023 APMP update, outside of the Farmer’s Market closures, was 63% on Thursday, July 21, 2022, at 1:00 p.m. and 62% on Saturday, September 24, 2022, at 7:00 p.m.

It is consistent between both study periods that peak occupancy tends to be on a weekday around lunch time. Both studies also observed occupancies below the 85% threshold throughout the survey periods. Staff will continue data collection for ongoing analysis to assist staff and Council in making future parking management decisions.

9 When parking space usage is observed to be at or above the 85% threshold, then spaces are considered well-used but it is still possible for drivers to find a space without cruising around waiting for another driver to leave.
10 Occupancy data for the 2023 APMP occurred on a Thursday and Saturday in both July and September 2022.

Item 3a
Figure 1 – Peak Occupancy (Wednesday, 2/28/2024, 1 p.m.) Source: Dixon Resources Unlimited, 2024
Program and Operational Changes – Improvements to the User Experience The results from the community outreach and data collection results of the study were used to determine if elements of the City’s parking programs and operations should be changed. These changes are different than the financial modeling performed by the consultants because they are likely to have a minor impact on the Parking Fund, but a potentially significant impact on the overall user experience. Some of the program changes will require technology changes, and a technology implementation plan will be needed and is planned for the near future.

Table 2 summarizes the changes analyzed through the Parking Rate Study and the criteria used to evaluate them. Feasible means that the change is either currently possible (Y) or not possible (N) using existing hardware and software. Impact to User Experience evaluates to what degree (Significant, Moderate, Minimal) the change will affect the end user’s experience. Timeframe means how long it may take to implement (Short = Less than one year, Medium = one year, and Long = two or more years). Cost is how much the consultants estimate it would be to implement based on industry experience. Priority is an overall summary level (High, Medium, Low) considering all other factors as well as community input. Each of these potential program or operational changes are described in more detail following Table 2.

Item 3a
Table 2: Program and Operational Changes Summary
# Description Feasible
(Y/N)
Impact to User
Experience Timeframe Cost Priority
1 Reduce Number of Mobile Apps Y Significant Medium Low High 2 Expand On-Street Time Limits Y Moderate Short Low Low 3 Benefits for Downtown Employees Y Moderate Short Medium Medium 4 Validation Program Enhancements Y Minimal Short Low Medium 5 Signs and Communication Y Significant Medium Medium High 6 Local Incentives Program Y Moderate Medium Low Low
7 Variable Rate Pricing Models N Minimal Long Low Low
8 Structure Gating System Updates Y Significant Medium High High 9 On-Street “Grace” Period Y Minimal Short Low Medium

1. Reduce the Number of Mobile Apps
Mobile apps improve the user experience by giving additional options to pay for parking without walking to a meter or pay station to start or extend a parking session.

When there are too many payment options, the process can become confusing to message and confusing for the end user and thus the user experience is impacted.

Multiple payment options can also cause technical issues for parking management programs.

Dixon recommends reducing the number of mobile apps to one and adding a pay-bytext option utilizing the same single app vendor. This will offer the convenience of three payment options to the user (pay station/meter, mobile app, or text) while balancing the technological needs of the City, ease of communication to the user, and enhancing the overall user experience. This change will need to be made holistically utilizing the technology implementation plan. Staff also recommends implementing this operational change.

The cost associated with reducing the total number of Mobile Apps is considered low and will require some signage modifications at pay stations, revisions to web site information, and increased communication needs. These implementation costs have not been factored into the rate study but will be funded using existing operating funds within the Parking Service Program.

2. Expand On-Street Time Limits (2 hours to 3 hours)
Community feedback suggested that community members feel a two-hour time limit in the core on-street parking spaces is not long enough. Parking management best practices encourage shorter time limits on-street in core parking spaces with longer term parking available on the perimeter and in off-street parking locations to improve turnover in high demand spaces. Paid parking rates on-street that are higher than offstreet parking locations also encourage turnover by using price as a driver. Changing the time limit from 2 hours to 3 hours is expected to have minimal fiscal impact and impact on driver behavior. While Dixon does not recommend implementing this operational change, as it differs from industry best practice to encourage turnover in the core, staff recommends implementing this change as requested by the community.

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The cost associated with expanding on-street time limits is considered low and will require some signage modifications for on-street parking areas, revisions to web site information, and increased communication needs. These implementation costs have not been factored into the rate study but will be funded using a combination of existing operating funds within the Parking Service Program and existing Capital Improvement Plan funding. The timeframe for implementation would begin on July 8, 2024, and signage would be updated and expected to be complete by Fall 2024.

3. Benefits for Downtown Employees
The City offers monthly parking passes to all community members including downtown employees, and business owners that provide discounted options for parking on-street outside of the core, off-street in a surface parking lot, or in one of the City’s parking structures. The City offers 10-hour meter permits for $60 per month that are used to park at designated spaces on-street and in surface lots. The City also offers structure permits for $85 per month that are used to access a designated parking structure. To encourage greater program participation and use of structures by long-term parkers, Staff recommends lowering the cost of structure permits from $85 per month to $45 per month.

The cost associated with implementation is low as the changes are largely administrative with the necessary website and increased communications needs.

While the revenue impacts of this change are included in one of the proposed options for Council’s consideration (Option C), staff is recommending that, regardless of the selected rate option, this change be implemented across all of the options. This would provide a low-cost benefit to frequent visitors of the downtown and may increase occupancy of the City’s parking structures. It should be noted that staff is planning to not limit the sale of the number of parking structure permits initially and will adjust as needed based upon usage and parking structure occupancy. Based upon current systems and technologies in place, the initial implementation of parking structure permits would be limited to a specific parking structure. With future technology improvements, the plan is to make any structure permit available for use in any parking structure based upon customer needs.

4. Validation Program Enhancements
Validation tickets are currently sold to businesses in quantities of 100 tickets for $200 which is a 33% savings on hourly parking rates. Each validation ticket can be used at one of the gated public parking structures and is equivalent to one hour of parking. An immediate change can be implemented to reduce the cost of validation tickets to 100 tickets for $100 ($1 per hour). Staff recommends implementing this lower cost validation option immediately, and Dixon recommends evaluating future validation options as new technology is considered through the technology implementation plan.

5. Signs and Communication
Staff will focus outgoing communications to key audiences (downtown businesses and residents, current permitholders, downtown employees, downtown visitors) to keep them better informed before, during, and after any parking services changes. To do

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this, staff will use the expectations outlined in the City's Public Engagement and Noticing Manual. Staff will also work on simplifying parking signage, better promoting parking discount programs and providing front-line staff with the information and resources necessary to communicate any changes effectively in the field. Rollout of all new signage will be included in the Technology Implementation Plan, which is tentatively scheduled to be completed this winter 2024. However, certain signs like those for mobile apps will be replaced once a single vendor is selected.

6. Local Incentives Program
In 2023, the City implemented a local incentives program (the “Park Local Program”) in the 842 Palm Street parking structure that was met with mixed reviews due in part to technological difficulties encountered that created significant frustration and confusion. A different approach to the Local Incentives Program can be implemented for specific events or seasons whereby all mobile app users receive a set discount or credit that can be applied to a future parking session. For example, if there is an upcoming community event that would have a local draw, the City could opt to send codes to app users or send promotional material to local users to promote the event with discounted parking rates for the event. Dixon recommends pursuing promotional discounts once a single mobile app vendor is selected.

The cost associated with this type of local incentives program is considered low and will require revisions to website information, and increased communication needs related to the incentives. Future incentives programs will require further coordination with Downtown SLO and development of a framework for implementation for Citysponsored and, potentially, externally-sponsored promotional efforts.

7. Consider Variable Rate Pricing Models
Variable rate pricing models (ex. block time payments, tier-based pricing, demandbased pricing) allow cities to adjust hourly rates based on real-time information to better manage parking demands. Under different pricing models, rates can increase or decrease depending on observed occupancy, length of stay, time of day, or season.

These models are often difficult to communicate and difficult for users to understand.

Certain models like tier-based pricing would not be possible to implement successfully with the current hardware and software technologies used by the City. Demand based pricing that changes based on seasonal occupancy rates could be considered in the future as ongoing occupancy data analysis is completed. Dixon does not recommend use of variable rate pricing models given how difficult they are to communicate and understand and uncertainty around the ability of existing technologies to support implementation.

It should be noted that during community outreach work, comments were received that indicated that increasing parking cost when parking is in high demand was counter intuitive to the business community, as it could be considered punitive against businesses during the busy times of the year when much of the businesses’ revenue is obtained. This model is also counter intuitive to provide a simple and predictable parking model for the community.

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Prior revisions to the City’s Municipal Code incorporated a tier-based pricing framework for potential future implementation of this pricing model. However, in light of recommendations from Dixon, a desire to maintain simplicity in the City’s parking rates, and the technological uncertainties with implementing this pricing model, staff has incorporated revisions to the Municipal Code in the ordinance proposed for introduction as part of this agenda item.

8. Structure Gating System Updates
One of the key themes from the community input was that the community was dissatisfied with the park-pay-play model at the gateless 842 Palm Street parking structure. Staff is researching strategies to update to a gated solution for the three existing structures, including changing the 842 Palm Parking Structure to a gated solution, as well as for CADPS. The change to a gated solution in the 842 Palm Parking Structure will allow the change from a park-pay-play model to a park-play-pay model, which is more in line with community expectations.

Staff is currently reviewing different technologies for a gated solution with the CADPS project and will return to Council in the winter of 2024 with a selected solution, as well as the proposed technology implementation plan.

9. On-Street “Grace Period”
A “grace period” is considered the time after a parking session has expired (either due to total time in a parking spot in excess of the posted time limit or the expiration of the timed and paid session) before being subject to citation. Community feedback requested both an increase to the grace period before a citation can be issued and to implement a period prior to payment being required for quick trips and pick-ups. In response to community feedback, the City recently doubled the grace period from three minutes to six minutes from the time a parking session expires to the time a citation can be issued. An additional increase to the grace period (up to 15 minutes) will be implemented to address this community request.

As for offering a free parking period prior to payment, current technology does not allow for a delayed start to a parking session. Enforcement officers are trained to check the surrounding area and nearby pay stations prior to writing a warning or citation to ensure someone is not at the pay station paying when a citation is issued.

Officers also assist customers with using pay stations and downloading payment apps when they see people near pay stations or reading parking signs. It should be noted that on several instances customers have reported different experiences with enforcement. The current process to address these issues is during the parking citation appeal process, where the standard process is to waive citations for first time citation recipients and instances where signage was unclear. Additionally, Staff will evaluate of the use of on-street spaces in the core to assess whether additional passenger loading zones (10-minute time limit) spaces should be installed for customers making quick trips downtown.

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Financial Modeling – Rightsizing Rates
The Parking Rate Study is scoped to perform a thorough analysis of parking rates and parking permit cost and to provide informed recommendations to better align rates with the needs of the community while maintaining a sustainable Parking Fund. Dixon evaluated many financial scenarios, as listed in Figure 2. Some of the scenarios considered were feasible when modeled alone but were demonstrated to be financially infeasible when modeled in combination with other scenarios. Other scenarios, like implementation of tier-based pricing, regardless of financial impact, are not possible given the existing technology constraints.

The chart below identifies the financial modeling scenarios and general levels of feasibility for each. The green highlights in the feasibility column indicate a high level of feasibility while the yellow and red highlighted cells indicate a moderate to unfeasible scenario respectively. It should be noted that the yellow highlighted cells can be implemented, but the cost of that one scenario would limit other reductions that could be made and might not represent the community’s highest priority at this time.

Figure 2: Financial Modeling Scenarios Summary
Dixon uses a proprietary financial modeling tool which encompasses multiple parking related data points like occupancy rate, length of stay, compliance rate, and others to determine potential revenue impacts of individual scenarios. Occupancy rates and length of stay data points for the parking rate study models are informed by observations made during the parking supply and occupancy portion of the study while others are based on industry norms.

Scenarios were individually modeled, however, when multiple scenarios were combined, the cumulative impacts were greater than the sum of their parts. For example, the combined impact of reducing the hourly rate in the structures and continuing the first hour free is greater than when each is modeled separately. This is in recognition of the interplay between the various rate and operational scenarios that change parking demand. Dixon packaged multiple scenarios together into options for the Council’s consideration.

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Financial Model Package Options – What Does it Look Like? Dixon developed and presented multiple rate and benefit options at multiple community meetings and stakeholder meetings. Based on the feedback received, Dixon provided three package options that each prioritize a key takeaway from the study’s outreach and engagement activities: Option A prioritizes keeping the first hour free in the structures, Option B prioritizes lowest possible rates, and Option C prioritizes reducing rates and fees across multiple programs and parking areas. Table 3 summarizes the main elements of each option and Tables 4, 5, 6, and 7 compare the differences between current rates and proposed rates of the three options.

Table 3: Financial Model Package Options Summary
(Rates in bold and underlined indicate a rate reduction from existing rates) Option A: Prioritizes
First Hour Free
Option B: Prioritizes
Lower Rates
Option C:

Balanced Approach
On-Street Rates Core: $4.00/Hr
Outer: $3.00/Hr
Core: $2.75/Hr
Outer: $2.25/Hr
Core: $3.00/Hr
Outer: $2.50/Hr
On-Street Hours M-S 9 AM – 9 PM
Su 1 PM – 9 PM
M-S 9 AM – 9 PM
Su 1 PM – 9 PM
M-S 9 AM – 9 PM
Su 1 PM – 9 PM
Structure Rates $2.50/Hr, $10 Daily Max
First Hour Free
$2.00/Hr, $8 Daily Max
Paid First Hour
$2.00/Hr, $8 Daily Max
Paid First Hour
Off-Street Hours 7 Days per Week 7 Days per Week 7 Days per Week Permit Rates11
10Hr Meter Permit:
$60/mo
Structure Permit: $85/mo
10Hr Meter Permit:
$60/mo
Structure Permit:
$85/mo
10Hr Meter Permit:
$45/mo
Structure Permit:
$65/mo
Option C, Balanced Approach, is Dixon’s recommended option that offers lower rates onstreet and off-street, as well as reduction in monthly permits costs. The trade-off with Option C is that the first hour free in the structures must be reinstated to maintain a sustainable long-term fund forecast. Dixon, as a general approach to public parking management, prioritizes lower rates across all parking areas instead of free parking in certain areas or at certain times. This also includes Sunday parking. By charging for Sunday parking, this expands the customer base for parking fees and lowers the cost to all users and not just those who choose to visit the downtown on Sunday.

There has been significant discussion between Dixon, City staff, and the community, including Downtown SLO, its Parking and Access Committee, and its parking task force, regarding the option packages and regarding offering free parking to encourage visitors and locals to park and shop downtown. Parking industry best practices show that offering free parking can be a detriment to downtown businesses. When free parking is offered for a limited time (e.g. first hour free in the structures), this encourages parkers to make

11 Permit rates shown in this table are recommended by Dixon. Staff is recommending that permit rates, regardless of the rate model selected by Council, be revised to $60 per month for 10-hour meter permits for designated spaces on-street and in surface lots and $45 per month for parking structure permits. This is intended to encourage increased occupancy in parking structures and to provide a low-cost solution for employees and frequent downtown visitors.

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quicker trips and to leave before the free time period expires. Programs that offer free parking in structures is also inconsistent with the goal of providing a long-term parking alternative to shorter term on-street parking. Additionally, offering free parking in certain areas or at certain times requires higher rates elsewhere to offset the lost revenue.

Nonetheless, feedback from the community indicates that the first hour free offers benefits to the San Luis Obispo community and region that may be greater than the negative parking management impacts it creates. The first hour free subsidy has been provided since the first structure opened in the 1980s and is now synonymous with downtown parking for many residents, business owners, and regular visitors. The first hour free was removed as part of the prior rate action that became effective in July 2023, and, in recognition of community feedback received in the summer and fall of 2023 and changes in the Parking Fund’s financial outlook following completion of financing and construction contracts for the CADPS structure, on November 7, 2023, Council took action to reinstate the first hour free in structures through June 30, 2025, and undertake a rate study to comprehensively evaluate rates and parking programs.

Given that all three rate options presented by Dixon maintain a financially sustainable Parking Services program, are technologically feasible, and provide benefits in the form of decreases in parking rates, and in light of the mixed community response to aspects of the three options, staff is supportive of implementing any of the three options and has provided a draft Ordinance and Resolution to implement any of them:
 Attachments B and C provide a draft Ordinance and Resolution to implement Option A;
 Attachments G and F provide a draft Ordinance and Resolution to implement Option B; and
 Attachments E and F provide a draft Ordinance and Resolution to implement Option C.

All of the draft resolutions would implement changes to reduce monthly structure permit rates to $45/month and to leave monthly permit rates for 10-hour on-street permits at $60/hour, which differs slightly from the rate packages presented by Dixon. All of the draft resolutions and ordinances would also implement the operational and programmatic changes described above. If Option B or C is selected, staff would recommend that the first hour free program be eliminated at the same time as the rate reductions go into effect.

Finally, at multiple community meetings and stakeholder meetings, individuals requested that Dixon model an option that included both maintaining the first hour free and reduction to hourly parking rates on-street and in the structures. Dixon modeled a scenario whereby the first hour free would be maintained and hourly rates would be reduced to $3.00 per hour in the core area, $2.00 per hour in the outer area, and $2.00 per hour in the structures. This scenario results in an average annual loss of almost $1.3 million per year which immediately jeopardizes the solvency of the Parking Fund.

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Items Not Analyzed in the Parking Rate Study
Several items came up during the community outreach events that were not in the study’s scope of the work and that relate to broader financial and General Plan policies. These items included whether the Parking program should continue to operate as an Enterprise Fund, whether the General Fund should subsidize parking rates on a one-time or ongoing basis, and impacts parking rates have on sales tax revenue. The following section briefly addresses these items.

Parking as an Enterprise Fund
Enterprise funds are used by the City to account for services that are similar to private sector activities where the intent is to finance or recover the cost of providing the services through user charges (rates and fees). The City has operated paid parking since 1947, however, the Parking Enterprise Fund was not formally established until 1976. Since then, it has been the City’s policy to set parking fees and rates so that they fully cover the total (direct and indirect) costs of the City’s parking services. This means the General Fund does not subsidize the Parking Fund and, conversely, the Parking Fund does not subsidize the General Fund as described in the whitepaper “Parking Fund Financial Policies” published on May 1, 2000, and included as Attachment D to this report.

As noted in the Policy Context section of this report, it is a General Plan policy that the City’s parking program be self-supporting. Any proposed changes to Parking’s status as a designated enterprise fund would require General Plan amendments and likely other policy document amendments.

General Fund Subsidization
The General Fund has not subsidized the Parking Fund since the formation of the Parking Enterprise Fund in 1976. In January 2024, City Council approved a loan from the Infrastructure Investment Fund (IIF) to the Parking Fund for the purchase of the 1166 Higuera Street property. The loan will be paid back by the Parking Fund over a thirty-year term with interest. The loan does not jeopardize capital projects intended to be funded by the IIF including projects like the Highway 101/Prado Road interchange. If amendments were made to applicable General Plan and financial policies governing the Parking Fund to allow a General Fund subsidy to the Parking Fund, and depending on any subsidy amounts, trade-offs would need to be made in the form of deferral or defunding of City services, programs, or projects.

Sales Tax Revenue
The City tracks and reports aggregated sales tax across the City and by several identified business areas within the City. In general, that data has remained relatively aligned with broader economic trends at the State and County level. For example, in 2023, average sales tax revenue (excluding Local Revenue Measure G-20) was down across the board, for Downtown San Luis Obispo (-3%), the City of San Luis Obispo (-2.8%), the County of San Luis Obispo (-2.7%), and the State of California (-2.1%). Downtown San Luis Obispo also remains the second highest sales tax revenue generating business area in the City after the Los Osos Valley Corridor.

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Sales tax revenue increases or decreases are based on a broad scope of economic factors and an additional study would be required to identify all of those factors and associated impacts.

Next Steps
Implementation of any changes approved by City Council should be phased in and done with time and consideration. Much of the feedback from the community was related to the number of changes that occurred in a very short time and it is the intent of the rate study to provide changes in an appropriate time frame. The schedule below is recommended for a cohesive process that will address immediate needs of the community while recognizing a need for more thorough evaluation of technology and equipment before implementation of certain operational and programmatic changes.

1. June 4, 2024 – Second reading of Ordinance for recommended on-street and lot rate changes;

2. July 8, 2024 – Recommended rate changes take effect; and

3. Winter 2024 – Present recommendations from Technology Implementation Plan for additional operational and programmatic changes
Previous Council Action
On November 7, 2023, Council authorized the advertisement of the Request for Proposals to complete a parking rate study. Additionally, Council adopted Resolution No. 11456 (2023 Series) authorizing free parking for all users of the City parking structures from November 23, 2023, through June 30, 2025 for 1) one hour free parking each day and 2) free parking all day on Sundays from 5:00 a.m. – 11:59 p.m. Council also directed staff to return at a later date with an Ordinance foregoing the on-street parking rate increase previously approved to take effect July 1, 2025.

On June 6, 2023, Council authorized the adoption of the 2023-25 Financial Plan, which included the allocation of $150,000 to complete a parking rate study.

On April 18, 2023, the City Council adopted Resolution No. 11410 (2023 Series) establishing a Park Local Pilot Program whereby registered San Luis Obispo County residents would receive one hour free in the 842 Palm Street parking structure.

On February 21, 2023, City Council received and adopted the 2023 Access and Parking Management Plan (APMP). Council also directed staff to conduct a rate study of all parking rates and fees and to return at a later time with recommendations for their consideration. Council also directed staff to create a pilot program to continue to provide San Luis Obispo County residents with one hour free parking in the structures.

On June 7, 2022, Council approved three parking rate increases with the adoption of the FY 2022-23 Budget Supplement, as well as the elimination of the first-hour subsidy for all customers of the downtown parking structures.

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Public Engagement
The following stakeholder and community outreach efforts have been completed as part of the parking rate study:

Community Meetings
 February 13th from 6:00 p.m. to 8:00 p.m. at the Library Community Room  February 14th from 12:00 p.m. to 1:00 p.m. (Virtual Meeting)  April 4th from 6:00 p.m. to 8:00 p.m. at the Ludwick Community Room  April 5th from 12 p.m. to 1:30 p.m. (Virtual Meeting)  May 2nd from 5 p.m. to 6:30 p.m. (Virtual Meeting)
Stakeholder Meetings
 Downtown SLO Parking and Access Committee (3 meetings)  Downtown SLO Parking Rate Study Task Force (4 meetings) o The Downtown SLO Parking and Access Committee created a dedicated task force to review and provide input on the parking rate study throughout the project. The task force is made up of various downtown representatives including retail, restaurant/bar, office, second floor retail, and residents.  SLO Chamber of Commerce Economic Development Committee (1 meeting)  Parking Steering Committee (3 meetings)
Online Community Survey
An online survey was available using the City’s Open City Hall forum from February 6th through March 8th. The survey provided an opportunity for the community to submit additional information about their parking experiences in the downtown. The survey received almost 2,800 responses from individuals identifying themselves as residents, visitors, business owners, and/or employees.

Farmers Market Events
Staff set up a booth at two Farmers Market events on February 15th and February 22nd promoting the Online Community Survey. Event attendees could complete the survey at the booth using tablets furnished by the City.

Project Team Email and Social Media Posts
The project team distributed an email to the public on all communications and promotions for the Parking Rate Study. Between February 5th and March 11th, the consultant received over 80 emails and 60 social media responses.

CONCURRENCE
The departments of Administration, Finance and Public Works concur with the recommendations of this report and agree that either Option A, B or C of the rate scenarios are feasible models for implementation.

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ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

FISCAL IMPACT
Budgeted: No Budget Year: 2024-25
Funding Identified: N/A
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:

Total $ $ $ $
Table 4 below identifies the total potential revenue, expenditures, and changes in financial position for each of the options as forecasted by Dixon’s financial modeling tool. The expenditures shown were provided by the City to Dixon and includes budget changes and requests prepared for the FY 2024-25 Supplemental Budget Review. The expenditures include reduced capital costs for parking structure asset maintenance projects presented to Council at the November 7, 2023 meeting.

Options A, B, and C forecast a sustainable Parking Fund, and the additional scenario that was requested by the community presents a negative financial position in each of the five forecast years. Recommended program and operational changes are not included in these forecasts as they are assumed to have a minor or minimal financial impacts.

These forecasts are provided with the understanding that changing multiple elements at the same time could result in unanticipated impacts. The options do not include changes in parking demand. Parking demand is affected by multiple external factors beyond rate changes, which makes demand forecasting inherently difficult to predict. Any changes approved will be closely monitored and reported to Council as part of the City’s existing financial reporting process.

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Table 4: Fiscal Impacts of Preliminary Recommended Options FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Baseline: Current Rate Structure
Revenues $ 10,322,784 $ 10,291,784 $ 11,946,484 $ 12,145,551 $ 12,169,406 Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902 Change in
Financial
Position
$ 337,564 $ 432,612 $ 1,417,042 $ 2,027,166 $ 1,603,504 Option A: Prioritizes First Hour Free in the Structures Revenues $ 10,283,870 $ 10,269,870 $ 10,731,105 $ 10,732,372 $ 10,755,227 Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902 Change in
Financial
Position
$ 298,650 $ 410,699 $ 201,663 $613,988 $ 189,325
Option B: Prioritizes Lower On-Street Rates
Revenues $ 9,991,861 $ 9,977,861 $ 10,874,136 $ 10,875,403 $ 10,898,258 Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902 Change in
Financial
Position
$ 6,641 $ 118,690 $ 344,694 $ 757,018 $ 332,356
Option C: Balanced Approach
Revenues $ 10,213,959 $ 10,199,959 $ 11,096,234 $ 11,097,501 $ 11,120,356 Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902 Change in
Financial
Position
$ 228,739 $ 340,788 $ 566,792 $ 979,117 $ 554,454
Community Requested Scenario
Revenues $ 8,680,258 $ 8,666,258 $ 9,127,493 $ 9,128,760 $ 9,151,615 Expenditures $ 9,985,220 $ 9,859,172 $ 10,529,442 $ 10,118,384 $ 10,565,902 Change in
Financial
Position
- $ 1,304,963 - $ 1,192,914 - $ 1,401,949 - $ 989,624 - $ 1,414,287

ALTERNATIVES

1. Council could choose to adopt the Option A rate model. Council could choose to adopt Option A as the selected rate model for parking rates in the downtown. Staff agrees that either Option A, B, or C provide feasible rate models. If Council chooses to move forward with this recommendation, included as Attachment B and C are the corresponding draft Ordinance and Resolution to implement Option A.

2. Council could choose to adopt the Option B rate model. Council could choose to adopt Option B as the selected rate model for parking rates in the downtown. Staff agrees that either Option A, B, or C provide feasible rate models. If Council chooses to move forward with this recommendation, included as Attachment G and F are the corresponding draft Ordinance and Resolution to implement Option B.

3. Council could choose to adopt the Option C rate model. Council could choose to adopt Option C as the selected rate model for parking rates in the downtown. Staff agrees that either Option A, B, or C provide feasible rate models. If Council chooses

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to move forward with this recommendation, included as Attachment E and F are the corresponding draft Ordinance and Resolution to implement Option C.

4. Council could choose not to adopt the attached Resolution and/or not introduce the attached draft Ordinance. This action is not recommended by staff because community input from the rate study clearly indicates an immediate need to implement further parking rate and program changes to promote economic activity downtown.

5. Council could choose to direct staff to conduct additional community outreach before approving any parking rate and/or program changes. This action is not recommended because staff and the consultant team conducted a significant amount of outreach as part of the rate study.

6. Council could choose to adopt parking rates and/or program changes not analyzed through the Parking Rate Study. This action is not recommended because adopting parking rates and/or program changes without first understanding the financial impacts of them could jeopardize the long-term health of the Parking Fund.

ATTACHMENTS
A - Parking Rate Study Draft Report
B - Draft Ordinance amending Title 10, Ch. 52 of the Municipal Code rescinding the parking rate increase planned for July 1, 2025 for Option A C - Draft Resolution establishing rates for parking structures and for parking permits for Option A
D - Parking Fund Financial Policies
E - Draft Ordinance amending Title 10, Ch. 52 of the Municipal Code removing the parking rate increase planned for July 1, 2025, and reducing on-street surface lot parking rates for Option C
F - Draft Resolution establishing rates for parking structures and for parking permits for Option B or Option C
G -Draft Ordinance amending Title 10, Ch. 52 of the Municipal Code removing the parking rate increase planned for July 1, 2025, and reducing on-street and surface lot parking rates for Option B

May 6, 2024 DRAFT 1
Downtown
San Luis Obispo
Parking Rate
Study Report
Prepared for the
City of San Luis Obispo
May 6, 2024
DRAFT VERSION 1.1

May 6, 2024 DRAFT 2
Table of Contents
Introduction ..........................................................................................................................................3 Purpose .............................................................................................................................................3 Background ......................................................................................................................................3 Study Area.........................................................................................................................................4 Rate Study Development Process ..................................................................................................4 Community Outreach ..................................................................................................................5 Data Collection.............................................................................................................................5 Parking Rate Model Options...............................................................................................................6 Option A: Retain Free Hour.............................................................................................................7 Option B: Prioritizing the Lowest Rates .........................................................................................8 Option C: Prioritizing Value in Structure Parking..........................................................................9 Other Financial Modeling Scenarios .......................................................................................... 11 Recommendation.......................................................................................................................... 12 Supply and Demand Assessment ................................................................................................... 13 Public-Private Agreements ........................................................................................................... 14 Parking Enterprise Fund............................................................................................................... 15 Program and Operations Recommendations................................................................................ 15 Demand-based Parking Pricing................................................................................................... 15 Parking Programs .......................................................................................................................... 16 Technology & Signage Recommendations................................................................................ 18 Other Considerations ................................................................................................................... 21 Next Steps...................................................................................................................................... 23 Appendix A - Community Outreach Summary.............................................................................. 25 Appendix B – Downtown SLO Parking Utilization Report............................................................. 39 Appendix C - Financial Modeling Scenarios ………………………………………………………….i

May 6, 2024 DRAFT 3
Introduction
Purpose
This Downtown San Luis Obispo Parking Rate Study Report (Report) was developed by Dixon Resources Unlimited (DIXON) for the City of San Luis Obispo (City) to model, forecast, and evaluate parking rates for on-street and off-street public parking. This Report identifies three parking rate models developed based on discussions with City staff and feedback from the community. DIXON provides an evaluation of three parking rate models and offers a recommendation to the City.

Background
On July 1, 2023, the City implemented a two-fold increase to its public paid parking rates, and at the same time, the City removed the first hour free. The community vocalized their dissatisfaction with the rate increases, resulting in Council action in November 2024 to return the first hour free and introduce free parking on Sundays in the parking structures. These rate changes are summarized in Table 1. The current parking rate structure is set to expire on June 30, 2025, as it is predicted that the parking fund will no longer be sustainable by that date. The Council implemented the current rate structure as an interim solution so other options could be further explored and evaluated.

As a result, the City contracted DIXON to conduct a parking rate study and develop this Report to support City staff and Council in discussions of changes to be made to the paid parking rate model and program in order to meet the following goals:
• Develop a consistent and simple rate structure that is easy to communicate. • Encourage people to patronize Downtown San Luis Obispo (SLO). • Align premium pricing with on-street core spaces, and value pricing with on-street periphery and off-street spaces.
• Ensure the Parking Enterprise Fund maintains a financially sustainable forecast.

Table 1. 2023 Rate Changes
Effective
January 2, 2023
Effective
July 1, 2023
Effective
November 23, 2023
On-street/
Lot Rates
Core: $2.00/h
Outer: $1.50/h
Core: $4.00/h
Outer: $3.00/h
Core: $4.00/h
Outer: $3.00/h
Off-street
Rates
$1.50/h, $6.00 daily
max, first hour free
$3.00/h, $12.00 daily
max
$3.00/h, $12.00 daily
max, first hour free,
free parking Sundays

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Study Area
This Report has been developed to address parking management in Downtown SLO. Figure 1 shows the Study Area, which includes 1,306 on-street spaces, and 1,255 public off-street spaces1 across 8 locations.

Figure 1. Downtown San Luis Obispo Study Area
Rate Study Development Process
The rate study comprised the following activities:
• Review of background documentation provided by the City, including the 2023 Access and Parking Management Plan (APMP).
• On-site assessment of parking conditions that included DIXON and City staff. • An update count of the City’s existing public parking inventory, as well as an identification of private off-street parking inventory that could potentially be leveraged for public-private agreements and other means of expanding public parking supply. • Parking utilization study and data analysis based on a three-day sample of occupancy data collected.
1 Space counts for the existing Palm-Nipomo Lot are excluded due to its closure for the construction of the new Cultural Arts District Parking Structure.

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• Community outreach, including the creation of a public participation plan that offered a series of five community meetings, a public input survey that received over 2,700 responses, as well as a project email where the public has submitted over 90 email comments.
• Stakeholder engagement, including presentations and engagement with the Downtown SLO Parking Taskforce, Parking & Access Committee, Parking Steering Committee, and the Chamber of Commerce.
• Supply and demand analysis to identify areas of parking surplus or shortage. • Financial modeling to evaluate more than sixteen (16) paid parking rate scenarios and program elements.

Community Outreach
Community engagement was prioritized as part of this rate study and feedback was collected from various channels, including a survey, social media, community meetings, and emails.

General themes that emerged include challenges related to technology and payment methods, safety improvements desired in parking garages, calls for rate reductions and maintaining free parking periods, concerns regarding transparency in recent changes, worries about the impact on locals, visitors, and businesses, and suggestions to reduce evening parking hours.

The full Community Outreach Summary can be found in Appendix A.

Data Collection
The parking utilization study conducted by DIXON found that overall parking occupancy rates typically remained below 85% across all zones2
, with fluctuations observed based on time and
location. Peak occupancy of 100% was noted in certain on-street and private off-street areas during various data collection times, indicating localized congestion. Weekdays generally saw higher on-street parking occupancy compared to weekends, while public off-street locations showed varying occupancy rates throughout the day. Additionally, parking turnover rates in public parking locations are relatively high, with 59% of vehicles staying between 0-2 hours. 3 Compared to the previous parking study done in 2022, parking utilization results measured by DIXON were lower on average for both the on-street and public off-street locations.4 Both parking utilization study results5 found that most drivers are staying for less than 4 hours. 2 85% occupancy is an important benchmark as industry best practice indicates that occupancy at or exceeding this level indicate that parking management actions may be necessary. 3 According to the parking utilization study completed by DIXON that covered two days of public onstreet and off-street occupancy. 4 This is expected as DIXON under the City’s direction conducted the weekday data collection on a Wednesday, while the 2022 study collected data on a Thursday, when there is Farmer’s Market. 5 Turnover data collected in the previous parking study is only as granular as the street level and was categorized as either short-term parkers staying less than 4 hours, or long-term parkers staying for 4 or more hours. DIXON’s turnover data was analyzed at the block face level and was broken down into each data collection time interval, thus yielding more specific results.

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The generally low parking utilization seen across public parking inventory could be due to high parking rates and the poor user experience using parking technology as shared through community feedback. The full Parking Utilization Report can be found in Appendix B.

Parking Rate Model Options
DIXON was scoped to evaluate a list of at least sixteen (16) scenarios and elements as part of this rate study. These included variables such as adjusting operating hours, considering different rate structures, and evaluating changes in permit parking fees and incentive programs. DIXON’s extensive financial modeling efforts accounted for occupancy rates, predicted compliance rates, and different parking rate structures in the development of a fiveyear forecast of projected parking program revenues. Annual expenditure figures used in the financial modeling to determine the parking rate model options were provided by the City and is what will be presented as part of the Fiscal Year 2024-25 Supplemental Budget Review.

After financial modeling efforts, discussions with City staff, evaluation of parking utilization data, and analysis of community feedback received, DIXON has narrowed the options down to three rate models summarized in Table 2. These options were selected in an effort to incorporate a range of community suggestions in tandem with considering the City’s program goals and financial sustaiability requirements. This section expands on each option with the associated financial projections, rate changes compared to status quo, and the predicted impacts based on the goals of the rate change. It further expands on why certain scenarios requested for consideraton are not recommended for City, and concludes with DIXON’s recommendation.

Table 2. Summary of Parking Rate Model Options
Option A:

Retain Free Hour
Option B:

Lowest Rates
Option C:

Structure Parking
On-street/
Lot Rates
Core: $4.00/h
Outer: $3.00/h
Core: $2.75/h
Outer: $2.25/h
Core: $3.00/h
Outer: $2.50/h
On-street/
Lot Hours
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM – 9 PM
Off-street
Rates
$2.50/h, $10.00 daily
max, first hour free
$2.00/h, $8.00 daily
max
$2.00/h, $8.00 daily
max
Off-street
Hours 7 days per week 7 days per week 7 days per week
Permit Rates 10h meters: $60/mo
Structures: $85/mo
10h meters: $60/mo
Structures: $85/mo
10h meters: $45/mo
Structures: $65/mo
For context, today’s rates and operating hours are as follows:
• On-street/lot rates: Core spaces at $4.00/hour; Outer spaces at $3.00/hour. o Operating hours are Monday to Saturday 9 AM - 9 PM, Sundays 1 PM - 9 PM.

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• Off-street rates: $3.00/h, $12.00 daily max, first hour free. o Operating hours are Monday to Saturday, 24 hours.
• Permit rates: 10h meter permits are $60/month; Structure permits are $85/month.

Option A: Retain Free Hour
The community largely emphasized that retaining the free hour is an important aspect of the parking program. As such, Option A prioritizes how it would be possible to achieve this given that the current model is forecasted to no longer be financially sustainable in mid-2025.

Table 3. Option A Rate Model
Option A: Retain Free Hour
On-street/Lot Rates Core: $4.00/h; Outer: $3.00/h
On-street/Lot Hours Mon-Sat, 9 AM - 9 PM; Sundays, 1 PM - 9 PM Off-street Rates $2.50/h, $10.00 daily max, first hour free Off-street Hours 7 days per week
Permit Rates 10h meters: $60/mo; Structures: $85/mo
Figure 2. Option A Projected Revenue, Expenses, and Change in Financial Position Impacts
If the City proceeds with Option A, changes include:
• Decreasing off-street rates by $0.50/h and decreasing the daily maximum by $2. • Increasing off-street operating days from six days per week to seven.

Option A would continue the existing “hourly” rate structure (in which a set amount is charged per hour in each location). A benefit of an hourly rate structure is that it can be easy to communicate and understand.

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Meanwhile, with Option A, the hourly rate for off-street parking would be decreased, which is aligned with the industry best practice of pricing off-street spaces lower than premium onstreet spaces to encourage long-term parkers to park in underutilized structure spaces; however, it is important to mention that this must be associated with improvements to the parking structure experience as rates are only one factor for drivers to determine where to park, or whether to patronize Downtown SLO. Given the City utilizes a Parking Enterprise Fund whereby the parking program must remain financially sustainable, Figure 2 demonstrates that the financial projections for this option support a sustainable solution.

Option B: Prioritizing the Lowest Rates
Community feedback has indicated that residents and visitors value the cost of parking, specifically the ability to find parking at a low rate, as the most important factor when looking for parking. Option B is focused on decreasing parking rates as much as possible while considering the financial sustainability of the Parking Enterprise Fund.

Table 4. Option B Rate Model
Option B: Lowest Rates
On-street/Lot Rates Core: $2.75/h; Outer: $2.25/h6
On-street/Lot Hours Mon-Sat, 9 AM - 9 PM; Sundays, 1 PM - 9 PM Off-street Rates $2.00/h, $8.00 daily max
Off-street Hours 7 days per week
Permit Rates 10h meters: $60/mo; Structures: $85/mo
Figure 3. Option B Projected Revenue, Expenses, and Change in Financial Position 6 Hourly rates ending at .25 and .75 increments may cause an operational challenge for calculating the cost of parking sessions at intervals of less than 1 hour. The City may consider addressing this by rounding values up to the nearest.00 or .50 mark.

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Impacts
If the City selects Option B, changes include:
• Decreasing on-street and surface lot rates by $1.25/h in core spaces, and $0.75/h in outer spaces.
• Decreasing off-street rates by $1.00/h and decreasing the daily maximum by $4. • Increasing off-street operating days from six days per week to seven days. • Removing the first hour free in parking structures.

Like Option A, Option B would also continue to utilize an hourly rate structure, which is considered the easiest rate structure to communicate. Option B achieves many of the goals identified in the Introduction: it continues an hourly rate structure that is easy to communicate, the reduced rates would likely contribute to increased patronage of Downtown SLO (especially if combined with a proactive marketing campaign), and the pricing strategy is aligned with industry best practices while ensuring that the Parking Enterprise Fund remains financially sustainable.

Option C: Prioritizing Value in Structure Parking
To effectively manage parking inventory, it is a best practice to structure rates so that the most convenient parking with the highest demand is priced at a premium to encourage turnover.

Meanwhile, offering lower rates in outer core and off-street locations can encourage utilization for longer parking sessions and help balance parking demand to alleviate congestion. The City can appropriately price its premium, value, and long-term parking spaces to encourage the differentiation of parking space utilization based on the intended purpose of the parking session. Figure 4 offers a visual definition of this industry best practice. Option C aims to realign the rate model such that it accurately reflects this practice, given that outer spaces are currently valued at the same rate as parking structure spaces. Additionally, Option C offers the flexibility to decrease the cost of parking permits while still being financially sustainable overall. Lower permit rates can encourage higher utilization and program participation.

Figure 4. Industry Best Practice of Valuing Parking

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Table 5. Option C Rate Model
Option C: Structure Parking
On-street/Lot Rates Core: $3.00/h; Outer: $2.50/h
On-street/Lot Hours Mon-Sat, 9 AM - 9 PM; Sundays, 1 PM – 9 PM Off-street Rates $2.00/h, $8.00 daily max
Off-street Hours 7 days per week
Permit Rates 10h meters: $45/mo; Structures: $65/mo
Figure 5. Option C Projected Revenue, Expenses, and Change in Financial Position Impacts
If the City selects Option C, changes include:
• Decreasing on-street and surface lot rates by $1.00/h in core spaces, and $0.50/h in outer spaces.
• Decreasing off-street rates by $1.00/h and decreasing the daily maximum by $4. • Increasing off-street operating days from six days per week to seven days. • Removing the first hour free in parking structures.
• Reducing permit rates by $15/month for 10h meters, and $20/month for structures.

Option C offers an ideal parking rate structure that addresses the community’s interest in lower rates while also aligning with industry best practices to balance parking demand and utilization.

For the City, the rates suggested in Option C are generally straightforward to implement operationally while also enabling financial sustainability. The City can also encourage more employees to participate in the permit program with lower permit rates along with increased promotion. This option would support rightsizing the parking demand and encourage higher utilization of parking structures.

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Other Financial Modeling Scenarios
The following are a set of financial modeling scenarios that DIXON evaluated as part of its scope of work which led to the development of the three rate model options described above.

Some of these scenarios have been deemed inapplicable to the City or unfeasible, given the rationale provided below.
• Evaluate reduction in operating hours: DIXON was asked by the City and the community to evaluate a reduction in operating hours, with variations including the reduction of evening weekday paid parking hours and the reduction of Sunday onstreet/lot paid parking hours. While the reduction of operating hours may suggest an increased freedom for visitors to park, in actuality it reduces the City’s ability to best manage parking supply and demand. Reducing operating times would undermine the intent of using paid parking as a parking demand management tool, since paid parking is intended to encourage factors like on-street turnover, utilization of the structures, and participation in the employee permit program. There are alternative ways to incentivize downtown patronage that do not compromise the effectiveness of the program, such as lower hourly rates, reduced permit rates, and the opportunity for parking validations and promotional codes. Additionally, it was identified by financial modeling that reducing operating hours does not enable much flexibility in reducing parking rates without compromising program sustainability.
• Evaluate retaining versus eliminating the free hour: Depending on the scenario, offering the first hour free can cost the program between $2.0–2.7 million in potential revenue. Based on the parking utilization study, the majority of drivers are estimated to park in Downtown SLO between 0-2 hours. As such, the free hour significantly impacts the ability for the Parking Enterprise Fund to remain financially sustainable. However, the online survey found that drivers would prefer to typically visit Downtown for 3 hours.

The inclusion or elimination of the first hour free, as well as the opportunity to lower rates, will impact parking behavior and may influence the desired and actual lengths of stay.
• Evaluate deferring future approved rate increase. City Council had already determined that the rate increase originally scheduled for July 1, 2025, is to be canceled.
• Evaluate rates for the new Cultural Arts District Parking Structure. Based on community sentiment that the paid parking program needs to be simple and easy to understand, DIXON generally recommends that the new parking structure pricing should remain consistent with the other parking structures. • Evaluate block time payments. Block time payments are identified as a pricing model typically applied to off-street parking locations that feature an early-bird entry rate, an all-day rate, and an evening rate. For example, this could be a low flat rate for early morning entry, a higher rate for daytime entry, and the lowest rate for evening entry. A block-time payments model encourages all-day parking but may appear like a rate increase for those who only need to park for a limited number of hours. As such, this is not recommended for inclusion as part of the final set of rate model options. • Evaluate tier-based pricing. The 2023 APMP definition is that if parking occupancy exceeds certain limits (such as 85% use), the City should consider increasing the parking

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rate incrementally based on the length of time parked (i.e. the second hour price is more than the first, and so on). There are several reasons as to why this model is unsuitable for the City:
o This option increases the complexity of on-street parking and is more difficult to communicate and enforce, which is the opposite of the public’s request for simplicity.
o The City’s current paid parking technology ecosystem is not able to operate and enforce this pricing model. While the policy may appear straightforward, the operational challenges associated with the current multi-vendor mobile approach in the City limits the ability to implement this successfully. o The tier-based model places a higher cost on staying longer, which may make customers feel rushed in order to avoid an escalated rate, leading to an impact on downtown businesses.
• Evaluate the daily maximum in structures to incentivize longer-term parking.

According to the parking utilization study, only 4% of people park in structures for more than five hours per parking session, indicating a negligible financial impact in revenue.

It is more important to evaluate the hourly rate of parking structures at this time. • Evaluate permit parking fees. Based on the information provided by the City, DIXON considered the rates for commercial loading zone permits, monthly street parking permits, quarterly parking passes, preferential parking district permits, and daily special event and construction parking permits. The general recommendation is that the price of these permits should cover the operating costs to be identified by City staff, including the potential revenue loss of a parking space that would otherwise be offered for public paid parking. Two of the permit types (specifically the 10-hour meter permits and the structure permits) carry sufficient volume, and changes to their rate are evaluated as part of the three rate model options provided. The remaining commercial permit types have been evaluated and are generally not recommended for a rate change given the low quantities sold unless the City determines that the cost of administering the permit and removing the space temporarily from the public parking supply exceeds the current price of the permit. The residential (preferential) permit type will be evaluated following the receipt of further Council direction.

Recommendation
While all three of the options would achieve financial sustainability, DIXON recommends the City move forward with Option C based on the ability to align with the community’s input, the City’s goals, and industry best practices most closely. Paid parking rates would be decreased, offering a more affordable and customer-friendly parking experience. Meanwhile, the operating times provide sufficient coverage for the City to effectively manage parking demand.

The reduction in permit rates also offers a benefit to employees and can help improve the distribution of parking demand and maximize convenient parking availability for customers.

Option C best aligns with industry best practices regarding the valuation of different types of parking spaces.

The financial modeling performed is based on actual data to date. Despite best efforts to predict how parking behavior may change over time, every element of parking is

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interconnected, and it is difficult to predict the true changes in utilization and compliance over time. As such, it is critical that the City continues proactive monitoring of any changes in parking demand and supply as a result of changes, as well as ongoing data collection to identify and determine any future parking management policy decisions.

Table 6. Recommendation of Rate Model Options Summary
Option A:

Retain Free Hour
Option B:

Lowest Rates
Option C:

Structure Parking
On-street/
Lot Rates
Core: $4.00/h
Outer: $3.00/h
Core: $2.75/h
Outer: $2.25/h
Core: $3.00/h
Outer: $2.50/h
On-street/
Lot Hours
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM - 9 PM
Mon-Sat, 9 AM - 9 PM
Sundays, 1 PM – 9 PM
Off-street
Rates
$2.50/h, $10.00 daily
max, first hour free
$2.00/h, $8.00 daily
max
$2.00/h, $8.00 daily
max
Off-street
Hours 7 days per week 7 days per week 7 days per week
Permit Rates 10h meters: $60/mo
Structures: $85/mo
10h meters: $60/mo
Structures: $85/mo
10h meters: $45/mo
Structures: $65/mo
Supply and Demand Assessment
Effective parking management aims to make parking easy, convenient, and accessible. The parking industry benchmark for when policy changes should be considered is when parking occupancy exceeds 85%; maintaining an occupancy rate of 85% minimizes congestion and maximizes utilization of parking assets, but exceeding this rate can make it challenging to find available parking, contributing to traffic congestion and spillover challenges. Using this threshold, the City should consider how the parking program may evolve and make datadriven policy decisions over time.

On average, on-street parking utilization rates in the Downtown Study Area did not exceed the 85% threshold; however, multiple block faces experienced high occupancy at several times of the day throughout the limited data collection period, including those along Higuera Street, Morro Street, and Marsh Street.7 To address these areas of higher congestion and to ensure parking supply and demand is balanced throughout the entire Downtown, the City could plan to increase future public parking supply near these locations by leveraging public-private agreements to maximize the use of underutilized private off-street locations. Making improvements to existing public parking structures such as at the Marsh Street and Morro-Palm 7 There could be additional areas with periods of high demand. The commentary is based on a limited sample limited sample of two days of public parking occupancy data. See Appendix B for the Parking Utilization Report.

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structures is a way to encourage more off-street parking utilization and provide relief to some of the more congested on-street locations.

Figure 6. Private Off-street Locations
Public-Private Agreements
The City should consider pursuing Shared Parking Agreement opportunities to increase parking supply and better manage parking demand Downtown. Parking utilization data collected at 97 private off-street lots revealed that several of these locations are underutilized, even during peak periods such as mealtimes.

Shared parking agreements are an effective way to increase parking supply and manage parking demand, and they can be designed to be mutually beneficial with agreed upon parameters and a revenue share. The parking lot owner would authorize the City to implement and post signage and equipment for time limited, permitted, and/or paid public parking on the property. This could be during or outside of the owner’s posted business hours. The City would then have the ability to offer these spaces as public parking or permit spaces, while the private lot can benefit from the City resources for parking enforcement at their lot locations.

Shared parking agreements are one of the most cost-effective ways of increasing public parking supply since they optimize the use of existing infrastructure and avoid the costly investment in building and maintaining new facilities.

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Parking Enterprise Fund
The City’s existing Parking Enterprise Fund allows for revenues generated from the parking program to be reinvested back into the Fund. To maintain program transparency and ensure adaptability, the City may consider identifying program revenue and expenses at a higher level of detail in program reporting to better track the impact of changes to the program. For example, if the City were to update the price of 10-hour meter permits or structure permits, it would be beneficial to identify and separate the quantity of revenue that comes from the 10- hour meter and structure permits from other permit types especially for the purchase periods before and after the permit rate change.

Program and Operations Recommendations
DIXON was also asked to evaluate recommendations for a variety of other program and operational elements that are associated with the general parking experience. This section covers those recommendations.

Demand-based Parking Pricing
The 2023 APMP defines demand-based pricing as increasing rates on blocks (or parking facilities) with occupancy above a certain threshold (e.g. 85%) and decreasing rates on blocks (or parking facilities) with occupancy below a certain threshold (e.g. 50%). This is illustrated in Figure 7.

As identified earlier, the City generally does not experience occupancy in excess of 85% in all of its zones. The community has expressed support for demand-based parking rates, and this strategy would be worth considering in the future if there is a high amount of parking demand clustering in certain areas. It will be important for the City to introduce an ongoing data collection strategy since there must be enough data year-round to understand parking occupancy trends. This could mean regularly capturing data at seasonal or monthly intervals at a variety of times throughout weekdays and weekend days. The City already has License Plate Recognition (LPR) cameras for enforcement, and these could also be used as a tool for efficient data collection.

The City is recommended to integrate the 85% threshold into the Municipal Code to enable flexible and data-driven parking program changes. Ideally, the Parking Program Manager Figure 7. Demand-based Pricing

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would have the authority to make incremental rate adjustments within an established range of rates, without needing full Council review each time. The City can then establish a paid parking rate review cycle to periodically analyze the data collected to identify whether any parking management actions need to be taken. Sufficient ongoing data collection must be implemented in order to make this work.

The City should also be careful to clearly define “demand-based” parking, as there have been several definitions of this strategy expressed in public discussion.

Parking Programs
Business Validation Program
The City has shared that a total of 3250 physical and 793 digital validations have been redeemed over a one-year period in parking structures, predominantly by hotels. These validation tickets can currently be purchased by merchants for $200 per bundle of 100 validations, with each validation offering one free hour. If the City proceeds with any of the rate model options identified in this Report, the City could lower the price of these validation bundles to $100 for 100 validation tickets so that there is still a discount offered to participating merchants.

Jury Parking
The City acts upon an agreement with the County whereby free parking is granted for all jurors.

Jurors must receive a validation code that allows them to initiate a free parking session.

Currently, jurors must first park, then receive a 15-minute grace period to walk to jury services and procure a parking validation. The juror then must walk back to the parking structure to initiate and validate their parking session. This process is highly inconvenient and the juror’s parking experience is not customer service friendly.

The City should enable jurors to start a parking session via mobile payment or on a tablet at the courthouse. In order to increase convenience, the City should also provide jurors with the ability to register their license plates ahead of their jury duty session and distribute demand by enabling jurors to park at any parking structure (currently they are asked to park in only one specific parking structure).

The City should discuss with their paid parking vendor (IPS) about the opportunities to set up this configuration to improve the parking experience of jurors and streamline parking operations for courthouse and City staff. This is also discussed in the Technology & Signage Recommendations section below.

Local Incentives
Currently, locals are able to leverage the first hour free incentive in parking structures that is offered to visitors and residents alike. However, two of the rate model options presented suggest removing the first hour free given that it is a costly incentive for the City to provide. As an alternative to blanket policies like “first hour free,” the City can leverage mobile payment apps to send push notification and offer parking discount codes to locals. Locals can be defined as residents who have their vehicle or driver’s license registered to an address in the City proper as determined and/or approved by Council.

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This opportunity provides a benefit to the community that can be leveraged as an incentive throughout the year, especially during off-peak periods in order to encourage patronage. For example, it could make sense to offer locals discounted parking on weekday mornings if parking demand is generally low. The City may not want to make discount codes valid during high demand periods such as on Friday evenings or during special events. The benefit of the code-based approach is that it offers the City the flexibility to apply custom business rules to maximize promotional capabilities.

Downtown Employee Parking
The City has an opportunity to further support the parking experience of employees who work in Downtown SLO. It is recommended that the City consider offering lower rates for employee permits as opposed to developing a new employee permit type. The City should ensure that the pricing is also affordable for service workers. Given that there are already two applicable permit types available (the 10-hour meter permit and the structure permit), the City should focus on increasing their usage through the following steps:
• Offer discounts for employers to manage permits for employees. 45% of Downtown business owners surveyed offer City parking permits to their employees. To incentivize employers to provide and manage permits for their employees, the City can offer employers a bulk discount of 10% on either permit type beginning at a quantity of five permits purchased.
• Digitize the permit process. Employee permits (as well as all other permit types) should be digitized to reduce administration costs for the City and improve the experience of permit buyers. This enables employers to manage permits online, including the ability to update the license-plates associated with the permits they can allocate to employees to address turnover and maximize utilization of a fewer number of permits purchased. In the meantime, while an in-person permit renewal process is still required, the City can consider offering automated recurring purchases for employers, like a subscription, which is in effect until the employer cancels. This would also increase flexibility and reduce hassle for employers. • Increase promotion of City parking permits towards business owners and employees. 67% of business owners and 82% of employees surveyed do not have a City parking permit. Qualitative feedback indicates that a selection of this group was not aware of or do not see the benefits of procuring a permit. The City should focus on outreach through Downtown SLO, the Chamber of Commerce, and other business groups to ensure that employers and employees are aware of the benefits of having a pass (and any employer bulk purchase discounts).

Additional recommendations to support employee parking include:
• Consider adding employee-designated parking supply. Should parking occupancy in parking structures routinely exceed 85% occupancy, the City is encouraged to review off-street parking supply in and around the Downtown SLO and develop shared parking agreements in order to provide more employee parking options for permit holders.

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• Consider micromobility, micro-transit, and other alternate transportation programs. Per the 2023 APMP’s recommendation, the City is encouraged to continue evaluating alternative transportation ideas to support employee parking, such as shuttles that bring employees from long-term parking lots to their place of business and incentives to support taking public transportation or a form of micromobility as opposed to driving a personal vehicle.

Technology & Signage Recommendations
The City currently has one gateless parking structure, two gated parking structures, and one parking structure under construction (the “Cultural Arts District Parking Structure”) that is anticipated to be opened in 2026. Users can pay for on- and off-street parking sessions via pay stations, single-space meters, and multiple mobile payment application options.

Based on the on-site assessment and community feedback, the City can benefit from improvements to the parking experience, especially at parking structures. There are also opportunities to improve the efficiency of parking enforcement and operations with technology, and to improve parking experience with wayfinding and signage improvements.

The following are several recommendations for the City to consider:
• Increase vendor oversight. The City should consider increasing vendor oversight to better manage expectations for both the City and vendor and establish a collaborative environment that allows for those expectations and responsibilities to be openly communicated.
o Introduce performance standards. For new vendor agreements and future vendor agreement updates, the City should consider introducing performance standards and carrying out performance reviews in order to ensure accountability of the vendors and maintain a level of agreement between the City and vendor.
• Reduce to a single mobile payment app. The City should consider reducing the mobile payment application options available to the public in order to simplify the paid parking experience and reduce sign blight and confusion. Consolidating the number of vendors also improves the administrative experience, reduces operational inconsistencies between vendors, streamlines the facilitation of promotional campaigns such as in-app discount codes, and reduces expenses in terms of aggregator transaction fees. Currently, the City pays an additional transaction fee to the service that aggregates mobile payment app vendors. The savings would be nominal, estimated at $20,000 per year; but these are savings, nonetheless and support an improved customer and operational experience.
o Introduce ability to initiate and extend parking sessions via mobile app. The City should consider working with the mobile payment vendor to introduce mobile parking session initiations to accommodate for juror parking at Palm Street Garage by eliminating the need for jurors to return to the parking structure once they check-in at the courthouse in order to start their parking session. Based on the final approved policies, the City should also consider

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introducing the ability to extend parking sessions via mobile app for a more seamless and convenient parking experience.
• Implement a license plate-based enforcement model in the downtown. License plate-based enforcement means that usage of parking spaces in accordance with posted parking policies—such as paid parking, permit parking, and time limits—is monitored and enforced based on license plate numbers. The usage of License Plate Recognition (LPR) systems to enforce parking is more efficient and replaces antiquated methods like tire chalking and the display of paper receipts or permits on the dashboard. Drivers would instead have permits or paid parking sessions associated with their license plate number and enforcement can utilize LPR to verify that the vehicle has a valid parking session. The City already has two vehicles equipped with LPR technology and enables drivers to pay by license plate at pay stations and on mobile payment apps. The City should set regular established routes for LPR-equipped vehicles to drive around Downtown SLO and leverage the use of LPR to identify parking violations and collect data.
• Enable the use of vehicle-mounted mobile License Plate Recognition (LPR) systems for data collection. The City’s existing vehicle-mounted LPR technology is integrated with paid parking and citation management technologies to monitor for compliance based on license plate numbers, and it automates several manual enforcement processes to maximize efficiency and coverage. In addition to being a parking compliance tool, LPR cameras can collect data for parking utilization analysis, which will enable the City to determine various metrics such as the level of parking congestion, turnover rates, and repeat parking trends to support data-driven parking policies and regulations in the future. To date, the City has typically relied on parking studies conducted by consultants, which show snapshots in time. It is critical to continue ongoing data collection so that occupancy and turnover analysis can be based on a larger data set and be used to identify seasonal and time of day trends. • Install lane control and speed impediments to slow traffic for LPR optimization and safety in the parking structures. The City should consider implementing lane control and speed impediment measures to ensure LPR is able to properly record plate reads upon vehicle entry in the parking structures, as well as to improve safety for pedestrians and other vehicles.
• Increase safety in parking structures to increase utilization. The City should consider making improvements to the parking structures including lighting, paint, and security enhancements in order to create a more welcoming environment for drivers and encourage the community and visitors to park in the parking structures.

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• Improve signage and wayfinding at parking structures. The City should consider improving the signage and wayfinding at the parking structures to improve the parking experience and eliminate confusion for drivers. The City can leverage digital signage on the kiosks themselves to message parking rules to drivers when they are first initiating their parking session, such as the current free parking initiatives. Considering the gateless solution is not as common and may not be as familiar for drivers, the City should communicate the expectations to drivers as clearly and directly as possible such as through instructional signage at the ingress points to communicate the “park, pay, play” concept to visitors, such as the example in Figure 8. o Assess the installation of wayfinding signage. The City should adjust the location and angle of digital wayfinding signs, especially to parking structures, so that they are visible from the perspective of drivers on the street. o Leverage Free-Flow fixed LPR camera system to populate digital signs with occupancy at parking structures. The City should consider leveraging the Free-Flow fixed LPR camera system at the City-owned parking structures to populate the existing digital signs with occupancy counts. Digital occupancy signs display up-to-date information can improve the parking experience for Downtown visitors by enabling them to make simple and straightforward parking decisions and can also help increase utilization at the parking structures.

Additionally, having digital signs at the parking structures can create a more cohesive, dynamic parking ecosystem that can improve circulation in the Downtown area and eliminate the need to circle the blocks in search of an available parking space. The City already has digital signage infrastructure installed and needs to consult a vendor to identify what fixes are needed to activate them again, even if it is to simply demonstrate whether the parking structure is full or available.
• Conduct a regular audit of parking signage. There are inconsistencies in the signage currently installed in Downtown SLO. The City is currently updating a set of signage to increase legibility and size. Once this project is complete, the City should implement a practice to regularly audit signage for consistency and maintenance. Additionally, the City should consider the following parking signage improvements:
o Design a parking brand. A consistent brand and design for signage can help enhance the City’s identity through a cohesive visual aesthetic, as well as Figure 8. Sample Pay on Entry Sign

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increase recognition of parking signs. The City could consider creating a parking logo specific to SLO that can be used on signage. The City should ensure that signage colors, sizes, and symbols are consistent and easy to recognize. o Emphasize visibility of time limits on signage. The City should emphasize any time limits applied to on-street parking spaces onto signage, given that it is currently unclear to the general public when there is a time limit applied to a space.
• Maintain continuity in paid parking infrastructure placement. To promote a parking experience that is easy to navigate, the City should ensure that placement of on-street pay stations are recognizable and predictable in all parts of Downtown. For example, pay stations could be located at the corners of every block, or perhaps mid-block.

Continuity in pay station placement helps drivers easily identify locations paid parking applies, and ensure they have sufficient time to make their payments within the grace period.
• Leverage single-space meters at loading zones and short-term spaces. The City should consider shifting the remaining single-space meters to yellow-domed meters in loading zones and short-term spaces that convert to paid parking after loading zone times. This can help to simplify expectations for drivers and allow the parking space types to be easily distinguishable. To further improve the parking experience, the City should place individual signs on the meters detailing the loading zone parking rules, which would allow for the excess signs to be taken down from the curb and declutter the instructions on the digital displays of pay stations. o Install pay stations at the 10-hour spaces. To replace the single-space meters at the 10-hour on-street spaces, the City should install pay stations to maintain continuity for the paid parking experience and further emphasize that pay stations are for long-term parking, while single-space meters are for loading zones and short-term parking only. Installing pay stations to maintain 10-hour on-street spaces will also introduce cost savings on single-space meter fees when spaces are occupied by permitted vehicles.

Other Considerations
• Improve communication of parking policies. Community feedback has highlighted confusion on existing incentives and updated operational hours. The City should focus on improving communication of parking policies and any associated incentives. The associated confusion with the changed policies may have led to reduced patronage of Downtown SLO.
• Develop and execute a comprehensive communication plan. Given the high frequency of parking program changes that have occurred in the City over the past year, the City should plan on a comprehensive public relations and communication strategy focused on both in-person and digital outreach to inform the public on what the policies are. The City should consider executing outreach immediately to address the current frustrations of residents and visitors to Downtown SLO, and once again when a new parking rate model has been confirmed and put into effect. This plan should activate ambassadors in the business community, the City’s own Parking Ambassadors,

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temporary signage in and around paid parking zones, and outreach to out-of-town communities who may otherwise frequently visit Downtown SLO. This plan should be adapted and repeated to inform the public of future changes. Specifically, elements of this communication plan can be tied to incentives that can be implemented through a mobile payment parking app:
o Promotions, such as discounts and deals for the upfront purchase of a bundle of paid parking hours.
o Sign-up opportunities, such as a number of free hours offered for those who sign up for a mobile payment app.
o Incentives, such as discount codes for certain user groups. o Community events, with booths where the public can participate in games to win a certain number of free hours.
• Continue collaborating with the Downtown SLO Parking Taskforce. The City should continue collaborating with the Downtown SLO Parking Taskforce beyond receiving Council direction to ensure that the implementation of parking program changes is aligned with and supported by the local business community. At a minimum, the Downtown SLO Parking Taskforce should be engaged for a one-year period following the City’s decision on which option to pursue. In order to support the downtown business community, it is important to prioritize communication and transparency in the implementation and decision-making of initiatives.
• Develop an event parking plan. Downtown SLO features a number of regular events, such as the Farmer’s Market every Thursday. Event parking management is a unique element that is focused on creating a game plan for agencies to tackle a large, predicted influx in parking demand. This would call for increased staffing resources, temporary signage, and additional oversight in order to ensure a smooth experience during events. The City should develop an event parking plan to address parking demand fluctuations like for the Farmer’s Market or other local events. • Transition parking enforcement staff into Parking Ambassadors. For the regular operation of the parking program, and especially during times of parking program changes, it is important that an emphasis is placed on customer service (with a focus on education and warning notices). Currently, the City has parking enforcement staff and Parking Ambassador roles. The City should ensure that parking enforcement staff also receive ambassadorship and customer service training as all parking staff should embody Parking Ambassador responsibilities. Parking enforcement and existing Parking Ambassador staff are encouraged to walk the streets and structures of Downtown SLO and provide friendly, in-person support and information to those who are unsure of how to navigate the paid parking ecosystem. This encourages increased compliance and helps shift the perception that staff are seeking compliance with approved policies.
• Audit loading zones. During DIXON’s parking inventory update and business owner feedback, it was identified that there appears to be a significant number of loading zones in the 700 block of Downtown SLO. The City is advised to perform an audit, evaluate the need for loading zones in that location, and assess whether there are

May 6, 2024 DRAFT 23
spaces that could be converted to paid parking spaces to support the public parking supply.
• Consider potential impacts of parking rate changes on residents. Surrounding neighborhoods may need to be prepped for residential (or preferential) permits. The City should be prepared to identify spillover effects and the municipal code should be prepared to present the opportunity for residents to apply for a residential permit zone in the future.
• Consider the impact of parking minimums. The reduction and elimination of parking minimums has become a statewide (and nationwide) trend in response to housing affordability challenges and a push for more transit-oriented development. Unless car ownership rates actually decline in SLO, certain neighborhoods may experience an increase in demand for on-street public parking if new developments are built without sufficient parking supply to meet the true demand. In line with the previous recommendation, the City should closely monitor the impact of reduced parking requirements, especially through ongoing data collection efforts, to evaluate parking demand especially around proposed development sites and in residential areas. There could be a need to introduce new parking and mobility programs in response to evolving needs.

Next Steps
It is highly recommended that the City considers making incremental changes to the paid parking program moving forward. The community has shared that the multitude of program changes occurring in a short period of time in 2023 has caused negative impacts. The method of how changes are implemented is just as important as the changes themselves.

This Report has covered potential changes in parking rates, operating hours, free time, incentives, permit program fees, different rate models, technology changes, and other program changes. Changes in each element can lead to changes in parking behavior. As such, the City should consider adjusting a minimal number of elements each time, then focus on collecting data to evaluate the impacts before identifying the next set of changes. This is an ideal process to gradually rebuild SLO’s paid parking program into one that fits the community’s needs while being financially sustainable.

The City should collaborate with the Downtown SLO Parking Taskforce to prioritize changes and ensure transparency of the program. For example, if parking rates are adjusted following the City’s receipt of this Report, a discussion on paid parking operating hours could be the next set of decision points once the effects of parking rate changes have settled and there is new data on turnover and occupancy. A further factor to consider could be how the City can offer additional incentives for residents, employees, and business owners. The City and the Downtown SLO Parking Taskforce should consider the community’s priorities, as ranked in survey responses:

1. Cost: finding a space that is priced at a low rate

2. Speed: quickly finding an available parking space

3. Convenience: finding a space right next to the destination

4. Experience: finding a space in a clean and well-lit environment

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The City and the Downtown SLO Parking Taskforce are encouraged to re-evaluate the program on an annual basis to evaluate the data collected, understand the current parking experience, and identify how to proceed with addressing the next set of improvements.

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Appendix A - Community Outreach Summary
The City of San Luis Obispo (City) conducted an online survey and held two community meetings during February and March 2024 to solicit feedback from the public regarding their parking experience in Downtown San Luis Obispo (Downtown SLO). Additionally, DIXON monitored email and social media feedback from the community during the same timeframe.

The following subsections describe the results and key themes from community outreach efforts.

Summary of Key Themes
Below is a summary of key themes from a combination of insights from the survey, social media feedback, community meeting feedback, and email feedback. • Technology issues and general confusion regarding how to pay for parking (pay stations, multi-vendor mobile payment apps, rate structures, signage) • Increase safety and user experience in garages, especially in gateless structure • Lowering rates and retaining free hours/days
• Concerns about transparency (2023 changes happened too quickly) • Concerns about negative impact to locals, visitors, businesses • Decrease evening paid parking operating hours
Survey Results
The online survey hosted on Open City Hall was open for 31 days starting on February 6, 2024, and closing on March 8, 2024. A total of 2,784 responses were received from SLO’s residents, visitors, business owners, and employees regarding their parking experience in Downtown SLO. Survey respondents were divided into resident or visitor at the beginning of the survey and were later given the opportunity to identify as a business owner, employee, or N/A to answer additional questions. Due to the survey structure, it appears as if the total number of responses across the four audience groups appears to exceed the total number of survey respondents; however, a respondent can be both a resident and a business owner, for example.

The table below shows the breakdown of the number of responses by audience group.

Audience Group Number of Responses
Residents 1,715
Visitors 1,069
Business Owners 104
Employees 235
Key findings from the survey for each audience group are summarized below.

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Residents – 1,715 respondents
Of the 2,784 respondents, 1,715 were residents of SLO who offered input on their parking experience in Downtown:

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Visitors – 1,069 respondents
Of the 2,784 respondents, 1,069 offered input on their experiences acting as a visitor or patron in Downtown SLO:

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Business Owners – 104 respondents
Of the 2,784 respondents, 104 were business owners in Downtown SLO who offered the following data:

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Employees – 235 respondents
Of the 2,784 respondents, 235 were employees of Downtown SLO who offered the following data:

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Community Meetings
Four community meetings were held, with two being held virtually via Zoom, and the others being held in-person. The following table summarizes the details of each community meeting:

Name Date(s) Setting Number of Attendees*
Community Meeting
Round 1
February 13, 2024 In-Person 35
February 14, 2024 Virtual 20
Community Meeting
Round 2
April 4, 2024 In-Person 22
April 5, 2024 Virtual 15
Community Meeting
Round 3
May 2, 2024 Virtual 12
*Including DIXON and/or City staff.

Overview of Community Meeting Rounds
• The first round (comprised of one in-person and one virtual meeting) focused on identifying and receiving feedback from the community on their parking experiences. • The second round (comprised of one in-person and one virtual meeting) focused on sharing preliminary findings from community outreach, the parking utilization study, and initial financial modeling.
• The third round (comprised of one virtual meeting) focused on sharing the final parking rate model options for community feedback.

Key Themes
Community Meeting Round 1
• Paid Parking Rates: Current rates are too high, were changed too quickly, and are negatively impacting businesses and visitors. Rates should be more affordable, including discounted rates for certain groups, free parking hours/days, and longer time limits. Some community members have recommended dynamic pricing structures. • Technology Issues and User Experience: Confusion and frustration with the current parking system, including difficulties with payment methods, time limits, use of the gateless structure, mobile apps, and signage. It should be simple and consistent in how one pays for parking. Residents are asking for immediate action to improve the gateless structure parking experience.
• Transparency: Desire for more transparency and communication from the city regarding parking policies and changes.
• Prioritizing Locals: Advocacy for the prioritization of local residents and businesses in parking policies over tourism-related interests, such as through resident benefit programs.

Community Meeting Round 2
• Financial Modeling: Emphasis on lowering rates as a top priority for community members. Confusion about the structure of the parking enterprise fund.

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• Technology Issues and User Experience: Desire for improvements to wayfinding and signage at parking structures, and more clear communication of existing rate structures to eliminate confusion.
• Welcoming back locals: Desire for programs and marketing efforts to welcome locals back to Downtown San Luis Obispo and rebuild trust with the community, such as a marketing campaign through promotional codes on the mobile payment apps.

Community Meeting Round 3
• Financial Modeling: Emphasis on lowering rates as a top priority for community members. Interest in convenient, accessible short-term parking for pick-up/drop-off and running errands. Interest in ensuring that parking program revenue is minimal in order to achieve the lowest rates possible.
• Parking Fund: Interest in exploring potential alternative funding sources for the Parking Fund.

Email and Social Media Feedback
DIXON received email commentary and monitored SLO’s social media sites (Instagram, Facebook, and Twitter) for feedback from February 5th to March 11th. Approximately 80 emails and 60 social media comments were received. The following key themes and recommendations were identified:
• Paid Parking Rates and Operations: Community members recommended changing the paid parking hours to end at 6PM instead of 9PM, keeping the first hour free to encourage business activity, and free parking on Sundays. There was also interest in implementing demand-driven parking rates. General concerns around the inconsistency of pricing structures between on-street and off-street were mentioned, and community members recommended adding more signage to make the pricing structures easier to understand. Some community members recommended a discounted parking rate for residents.
• Technology Issues and User Experience: Community members expressed difficulty with using the kiosks and trying to estimate time needed to park prior. Inability to add time to parking session via mobile app was also mentioned. • Safety: Community members expressed that cleanliness and safety should be a priority, and that some parking structures feel unsafe due to poor lighting. Community members also expressed feeling unsafe when walking from a parking space to their destination. • Accessibility: Several community members expressed a desire for more loading/unloading spaces around downtown, as well as more accessible parking spaces. Community members also expressed a desire for better transit options, including more frequent bus routes downtown to encourage less vehicle use.

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Appendix B – Downtown SLO Parking Utilization
Report
Methodology
Dixon Resources Unlimited (DIXON) collected parking data on behalf of the City of San Luis Obispo (City) as part of the Parking Rate Study (Study) to demonstrate the current parking conditions for 161 on-street block faces, 97 private off-street lots, 5 public off-street lots, and 3 public off-street structures in Downtown San Luis Obispo (SLO).

Data collection for the on-street and public off-street parking locations8 occurred on one mid- (Wednesday 2/28/2024), and one weekend day (Saturday 3/2/2024). Data collection was conducted using a mobile license plate recognition (LPR) device9 that was operated by DIXON field staff at the on-street and public off-street locations within the study areas at 9am, 11am, 1pm, 3pm, 5pm, and 7pm for each day of collection along a consistent driving route. Additional 8 Parking occupancy data could not be collected at the public parking lot on the corner of Palm St & Nipomo St due to construction for the Cultural Arts District Parking Structure. 9 The results for the multi-level parking structures are reported for each structure as a whole, rather than by level. This is because the equipment used for data collection is GPS-based, which cannot distinguish between levels of the structure.

Study Area Map

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data collection using a drone was done on one mid-weekday (Wednesday 2/28/2024) and one weekend day (Saturday 3/9/202410) for private off-street locations at the same time intervals.

The LPR data and drone footage were used to calculate the average parking occupancy and turnover (length of stay) rates throughout the study area. The data analysis process automatically anonymizes all license plate numbers by hashing the data. Real license plate numbers were not stored or retained for the Study. The parking occupancy rate refers to the percentage of parking spaces that have parked cars. Turnover values are based on how long vehicles stayed between the first collection time and the last collection time each day. Results were calculated for each block face (individual side of the street bordered by intersections) and each parking facility for this assessment.

Key Considerations
The parking industry considers the ideal target parking occupancy rate to be 85 percent, meaning that there are approximately one or two parking spaces available per block face. This occupancy rate minimizes congestion and maximizes utilization of parking assets. Areas that regularly exceed 85 percent occupancy are considered overly congested. Likewise, areas that regularly are well below 85 percent are considered underutilized. The goal is to seek a balanced parking system that remains at or near 85 percent occupancy during most times on average, knowing that there will realistically be some exceptional or outlier times.

When parking durations are long, this means that the turnover of parking spaces is low.

Conversely, when durations are short, this means that turnover is high. High turnover maximizes the number of drivers that can utilize parking assets, which is especially important in commercial areas due to proximity to goods and services and the need for customer access.

The findings in this Parking Utilization Report are based on a limited sampling of data, and it is recommended that the City collects data on a more regular basis to have a better understanding of how parking utilization varies throughout the year in Downtown SLO.

Key Takeaways
• The average parking occupancy rates for each zone did not exceed 85%. • The lowest average occupancy rates observed for on-street (42%), public off-street (12%), and private off-street (29%) were all observed on a Saturday at 9AM. • The highest average occupancy rates observed for on-street (66%) and private off-street (61%) were both observed on a Wednesday at 11AM.
• The highest average occupancy rate for public off-street (41%) was observed on a Saturday at 1PM.
• Several on-street block faces exceeded a peak occupancy of 85% at various times of the day, with 80 out of 161 on-street block faces recording a peak occupancy of 100% during at least one data collection time.
• A few private off-street lots exceeded a peak occupancy of 85% at various times of the day, with 12 out of 97 private lots recording a peak occupancy of 100% during at least 10 Drone collection was done on a different Saturday due to weather conditions.

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one data collection time. However, no public off-street locations exceeded 85% at any point observed.
• The daily average on-street occupancy rate was higher on a weekday (60%) compared to a weekend day (56%).
• Average public off-street occupancy varied throughout the day, ranging between 23% to 36% during the weekday and 12% to 41% on the weekend. • Average private off-street occupancy also varied throughout the day, ranging between 44% to 61% during the weekday and 28% to 48% on the weekend. • Public parking turnover is relatively high. Most vehicles were observed for just a single round of data collection, and therefore were parked between 0-2 hours at the on-street and public off-street locations. The percentage of vehicles that stayed for 0-2 hours for each location were:
o On-street (Weekday): 73%
o On-street (Weekend): 71%
o Public Off-street (Weekday): 69%
o Public Off-street (Weekend): 70%
Private parking turnover is lower. Most vehicles were observed to have stayed for two data collection rounds in a row, and therefore were parked between 2-4 hours at private off-street locations. The percentage of vehicles that stayed for 2-4 hours were:
o Private Off-street (Weekday): 29%
o Private Off-street (Weekend): 31%
Parking Utilization Study Findings
The following figures display total average parking occupancy and turnover results for the study area.

Occupancy
On-Street
Average On-Street Occupancy

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Weekday Average On-Street Occupancy Heatmap
Average Total Occupancy = 60%
Weekend Average On-Street Occupancy Heatmap
Average Total Occupancy = 56%

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Public Off-Street
Average Public Off-Street Occupancy
Weekday Average Public Off-Street Occupancy Heatmap

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Private Off-Street
Private off-street occupancy was analyzed by evaluating the drone footage and counting the number of parked vehicles observed in each lot.

Weekend Average Public Off-Street Occupancy Heatmap
Average Private Off-Street Occupancy

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Weekday Average Private Off-Street Occupancy Heatmap
Weekend Average Private Off-Street Occupancy Heatmap

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Turnover
The average turnover percentages over the course of each day are shown based on observations during data collection. The tables and stacked bar charts show a percentage breakdown of the number of cars that were observed either between 0-2 hours, 2-4 hours, 4-6 hours, 6-8 hours, or more than 8 hours based on the data collection rounds. The heat maps show the average daily length of stay per block face and parking lot.

On-Street
Average On-Street Turnover

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Weekday Average On-Street Turnover Heatmap
Weekend Average On-Street Turnover Heatmap

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Public Off-Street
Average Public Off-Street Turnover
Weekday Average Public Off-Street Turnover Heatmap

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Private Off-Street
Private off-street turnover was analyzed by evaluating the drone footage and comparing the observed vehicles between the collection times per lot.

Weekend Average Public Off-Street Turnover Heatmap
Average Private Off-Street Turnover

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Weekday Average Private Off-Street Turnover Heatmap
Weekend Average Private Off-Street Turnover Heatmap

City of San Luis Obispo
Parking Rate Study
Financial Models
May 6, 2024
i

Existing Rate Zones
• All of the following financial scenarios
are projected figures. • All proposed changes in the financial modeling scenarios assume changes
taking effect July 1, 2024. • Year 1 refers to FY 24-25 (July 1, 2024, to June 30, 2025). • Models are based on estimated
compliance of 60%. Base model
occupancy rates draw from the 2-days
of data collected in February/March
2024. Further ongoing data collection
is required to increase accuracy for
future modeling purposes. • Definitions refer to Access and Parking Management Plan (APMP) last
updated 2022. • Recommendations are based on
existing conditions and City-provided
inventory data.
ii

Scenarios to Evaluate
Financial Modeling Scenarios

1. Evaluate reduction of operating hours by eliminating on-street paid parking.

2. Evaluate reduction of operating hours by eliminating paid parking on-street Sundays 1PM – 9PM.

3. Evaluate expanding the paid on-street parking hours on Sunday.

4. Evaluate deferring future approved rate increases. – This scenario is no longer standing and is skipped.

5. Evaluate rates specifically for the new Cultural Arts District Parking Structure (FY 25-26, planned launch early 2026).

6. Evaluate block time payments.

7. Evaluate tier-based parking pricing.

8. Evaluate maximum daily max in the structures to incentivize longer term parking.

9. Evaluate permit parking fees.

Program and Operations Options

10. Evaluate demand-based parking pricing.

11. Evaluate the current validation program and possible enhancements.

12. Consider programs to benefit the local community/local-specific incentives.

13. Consider programs to benefit downtown employees.

14. Evaluate the costs and benefits of user experience enhancement of reduction in the number of supported mobile apps.

15. Evaluate the costs and benefits of user experience enhancement of signage, customer service, and communications.

16. Other adjustments related to vendors and technology.

17. Other adjustments related to parking structures.
iii

1a. Evaluate reduction of operating hours by eliminating on-street paid parking from 6PM – 9PM.

Financial Modeling Scenarios
Current Conditions Proposed Change
Mon-Sat paid parking hours
decrease by 3 hours  9 AM – 6 PM
Sunday paid parking hours decrease by 3
hours  1 PM – 6 PM
Mon-Sat paid parking hours are 9 AM – 9 PM
Sunday paid parking hours are 1 PM – 9 PM
Comments: • Community feedback indicates reducing paid parking hours as the top priority. • Decline in Projected Revenue of ~$1.60 million. iv

1b. Evaluate reduction of operating hours by eliminating on-street paid parking from 7PM – 9PM.

Financial Modeling Scenarios
Comments: • Community feedback indicates reducing paid parking hours as the top priority. • Decline in Projected Revenue of ~$1.07 million.

Current Conditions Proposed Change
Mon-Sat paid parking hours
decrease by 2 hours  9 AM – 7 PM
Sunday paid parking hours decrease by 2
hours  1 PM – 7 PM
Mon-Sat paid parking hours are 9 AM – 9 PM
Sunday paid parking hours are 1 PM – 9 PM
v

2. Evaluate reduction of operating hours by eliminating paid parking on-street Sundays 1PM – 9PM.

Financial Modeling Scenarios
Current Conditions Proposed Change
Free parking on Sundays
 paid parking is Mon-Sat only
Sunday paid parking hours are 1PM – 9PM
Comments: • Community feedback indicates bringing back free parking on Sundays as top priority. • Decline in Projected Revenue of ~$619.8k. vi

3. Evaluate expanding the paid on-street parking hours on Sunday.

Financial Modeling Scenarios
Comments: • Community feedback is not supportive of expanding paid parking hours on Sundays. • Increase in Projected Revenue of ~$309.9k.

Current Conditions Proposed Change
Sunday paid parking hours increase by 4
hours to match Mon-Sat hours  9 AM – 9 PM
Sunday paid parking hours are 1PM – 9PM
vii

5. Evaluate rates specifically for the new Cultural Arts District Parking Structure (FY 25-26, planned launch early 2026).

Financial Modeling Scenarios
Current Conditions Proposed Change
The structure is introduced with the same rate
as that of other structures ($3/h, $12 max).

There are no rates for this parking structure
today.

Comments: • To increase consistency across the program and reduce confusion, all structures should have the same rate model. • Community feedback indicates a clear pricing structure as top priority. • Increase in Projected Revenue of ~$402.9k.

Fiscal Year 25-26 Fiscal Year 25-26
viii

6. Evaluate block time payments.

Definition: For parking structures, this pricing model introduces an early-bird entry rate, an all-day rate, and an evening rate. Financial Modeling Scenarios Current Conditions Proposed Change
Structure rates become: • Early bird: $8 for entry between 5 AM - 8 AM • All day: $12 entry between 8 AM – 6 PM
• Evening: $7 entry from 6 PM – 12 AM
• Overnight permit required from 12 AM – 5 AM
Structure rates are currently $3/h, $12 max
Comments: • Community feedback indicates a clear pricing structure as top priority. This model removes fear of exceeding time limits. However, clear communication is avoid framing of a rate increase. • Community feedback indicates there are insufficient long-term parking options. • Increase in Projected Revenue of ~$1.58 million. ix

7. Evaluate tier-based parking pricing.

APMP Definition: If parking occupancy exceeds certain limits (such as 85% use), consider increasing the parking rate incrementally based on the length of time parked (i.e. the second hour price is more than the first, and so on).

Financial Modeling Scenarios
Comments: • Community feedback indicates a clear pricing structure as top priority. • Parkers typically stay for 2-3 hours. • Decrease in Projected revenue of ~$1.28 million.

Current Conditions Proposed Change
On-street paid parking features tiered model:
*all other conditions, including operating hours, stay constant.

On-street paid parking is an hourly rate
model ($3-4/hour)
Outer
• Tier 1: $2.50/h (Hours 1 and 2) • Tier 2: $3.75/h (Hour 3) • Tier 3: $5.75/h (Hours 4+) Core
• Tier 1: $3/h (Hours 1 and 2) • Tier 2: $4.50/h (Hour 3) • Tier 3: $6.75/h (Hours 4+) Challenging to implement.
x

8. Evaluate maximum daily max in the structures to incentivize longer term parking.

Financial Modeling Scenarios
Current Conditions Proposed Change
Lower daily max to $10
(assuming new hourly rate of $2/h)
Daily max is $12
(when hourly rate is $3/h)
Comments: • Community feedback indicates finding a parking space at a low rate as the top priority. • Lowering daily max increases opportunity of usage. 4% of people park in structure for more than 5
hours, indicating a negligible financial impact
in revenue but high opportunity to publish
lower prices.
xi

9. Evaluate permit parking fees.

Financial Modeling Scenarios
Current Conditions Proposed Change
• Quarterly 10h Meter Permit: $135 ($45/mo) • Quarterly Structure Permit: $195 ($65/mo) • Quarterly Overnight Permit: $375 • Commercial Loading Zone Permits: $60
• Preferential Parking Permits: $20/year
• Monthly 10h Meter Permit: $60
• Quarterly Structure Permit: $255 ($85/mo) • Quarterly Overnight Permit: $375 ($125/mo) • Commercial Loading Zone Permits: $60 • Preferential Parking Permits ($20/year)
Comments: • Digitize the permit management process and remove manual hang tags. • Convert all permits to multiple options for renewal process (69% employees surveyed would prefer a quarterly option) • Decrease in Projected Permit Revenue by ~$197k, however increased utilization can come with better outreach. 81.5% of surveyed employees don’t have a permit and only 40% of permit users find the process easy.

Year 1 Projection Year 1 Projection
xii

10. Evaluate demand-based parking pricing.

APMP Definition: Increase rates on blocks (or parking facilities) with occupancy above a certain threshold (e.g. 85%) and decrease rates on blocks (or parking facilities) with occupancy below a certain threshold (e.g. 50%).

Program and Operations Options
Current Conditions Proposed Change
Rates are reviewed every year, and changes are
initiated based on the 85% threshold.

Rates are reviewed and changed upon Council
direction.

Comments: • Implement ongoing LPR-based data collection. • Integrate the 85% threshold into Municipal Code. • Identify a peak and non-peak rate that is reviewed annually. However, other agencies have demonstrated
that sufficient ongoing data collection must be
implemented to make this work. • Community feedback indicates support for demanddriven parking rates. Example of Demand-based Pricing Requires ongoing data
collection to implement.
xiii

11. Evaluate the current validation program and possible enhancements.

Program and Operations Options
Current Conditions Proposed Change
If the City pursues the DIXON recommendation of
lowering the off-street rate:

Merchants can purchase 100 validation tickets for
$100. Each validation offers 1h free.

Merchants can purchase 100 validation tickets
for $200. Each validation offers 1h free.

Comments: • 3250 physical and 793 digital validations redeemed per year in garages. Program is primarily utilized by hotels. • Improve the jury parking and validation process • Ability to start parking session via mobile pay or on a tablet at the Courthouse. • Ability to register plate ahead of time, enable parking at other garages. xiv

12. Consider programs to benefit the local community/local-specific incentives.

Program and Operations Options
Comments: • Eliminate 1-hour free from an operational standpoint. Strategy is to lower rates overall and offer other locals benefits instead. • Focus on pushing benefits (e.g., discount codes) to locals as opposed to guaranteeing a standard number of free hours to locals. • Discourages those who re-enter to leverage free time. • Identify definition of “local” – focus on people who live in the City proper. • Community has called for 2-3 free hours in light of rate increases. This is not sustainable.

Removing free hour in
structures increases
projected revenue by
$2.3 million. With free hour Without free hour
xv

13. Consider programs to benefit downtown employees.

Comments: • Introduce Employee Parking Permits Program
• Enable employers to manage permits for employees
• Offer discounted permit rates for Downtown business owners to purchase permits in bulk • Continue micromobility and micro-transit evaluations • Encourage usage of low-income permit options.

Program and Operations Options
xvi

14. Evaluate the costs and benefits of user experience enhancement of reduction in the number of supported mobile apps.

Program and Operations Options
Current Conditions Proposed Change
City pays transaction fees to the mobile
payment vendor only.

City pays $0.05/transaction to CurbTrac,
alongside transaction fees to the mobile
payment vendors.

Comments: • Improves administrative experience by reducing the number of vendors, reducing inconsistencies between vendors, reducing expenses by an estimate of ~$20,000/year. • Improves customer experience by reducing confusion and sign blight. xvii

15. Evaluate the costs and benefits of user experience enhancement of signage, customer service, and communications.

Comments: • Fix existing digital signage infrastructure such that it is functional and offers occupancy counts. • Adjust the location of digital wayfinding signs to parking structures so that they are visible from the view of drivers on the street. Improve wayfinding to pay stations. • Introduce a uniform signage design. • Develop clear in-person and digital communication plan for informing the public of future changes. • Ensure both Parking Enforcement and Parking Ambassador roles are focused on supporting education, compliance, and customer experience. • Emphasize time limits on on-street parking signage.

Program and Operations Options
xviii

16. Other adjustments related to vendors and technology.

Comments: • Improve pay station user experience. • Install pay stations at 10h spaces. • Shift remaining single-spaced meters to yellow domed meters in loading spaces that convert to paid parking after loading zone times. • Continuity in infrastructure placement.

Program and Operations Options
xix

17. Other adjustments related to parking structures.

Comments: • Improve instructional signage at the gateless garage that helps drivers understand the “park, pay, play” concept (see banner to the right) • Install lane control/speed impediment to slow traffic for LPR optimization and safety • Increase safety through lighting improvements and paint opportunities, security presence Program and Operations Options
Sample pay on arrival signage
xx

O ______
ORDINANCE NO. ____ (2024 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 10, CHAPTER 52 (PARKING

METERS), OF THE SAN LUIS OBISPO MUNICIPAL CODE MODIFYING

HOURLY PARKING RATES ON-STREET AND IN SURFACE PARKING
LOTS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states that the City parking programs shall be financially self-supporting; and WHEREAS, parking rates are used as a tool to effectively manage parking demand for both on-street and off-street public parking areas; and WHEREAS, on June 21, 2022, the City Council adopted Ordinance No. 1714 (2022 Series) approving multiple hourly rate increases for the on-street areas and municipal parking lots effective January 2, 2023, July 1, 2023, and July 1, 2025 which were deemed necessary to offset the construction costs and corresponding debt service repayment for the new Cultural Arts District public parking structure and to maintain a fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s Parking program rates and fees and to develop parking priorities and recommendations to help address community and downtown parking concerns; and WHEREAS, on November 7, 2023, the City Council authorized release of a Request for Proposals (RFP) to conduct a parking rate study and directed staff to return with an Ordinance rescinding the on-street parking rate increase originally planned for July 1, 2025; and
WHEREAS, financial modeling completed through the parking rate study demonstrates that the previously approved rate increase planned for July 1, 2025, is not necessary to maintain a fiscally solvent Parking Fund; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council of City Hall, 990 Palm Street, San Luis Obispo, California, on May 14, 2024, to consider parking rate and fee options to address the public’s concerns while also maintaining a fiscally solvent Parking Fund including recommended changes to Title 10, Chapter 52 of the Municipal Code.

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Section 10.52.010 (Paid Parking zone - Rates) of the San Luis Obispo Municipal Code is hereby amended as follows:

Ordinance No. _____ (2024 Series) Page 2
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10.52.010 Paid Parking zone—Rates.

A. Within the area enclosed by a solid line on the parking rate zone map (Exhibit A) the parking of vehicles on streets or in municipal parking lots may be controlled and regulated with the aid of parking meters as defined in section 10.04.110 and/or parking payment centers as defined in section

10.04.120.

B. Within the cross-hatched area designated on the parking rate zones map (Exhibit A) the base rate for parking meters on streets or in municipal parking lots shall be one dollar and fifty cents per hour effective January 2, 2023. The rate in this area shall increase to three dollars per hour effective July 1, 2023.

C. Within the grey-shaded area designated on the parking rate zones map (Exhibit A), the base rate for parking meters on streets or in municipal lots shall be two dollars effective January 2, 2023. The rate in this area shall increase to four dollars per hour effective July 1, 2023. The rate in this area shall increase to five dollars per hour effective July 1, 2025.

D. The tier-based parking rates, which allow a customer to extend their parking session beyond the posted number of hours, are as follows:

1. Tier 1: The base hourly rate per rate zone

2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier 1 time and is 50% above the Tier 1 rate rounded up or down to the nearest twenty-five cent increment whichever is closer.

3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s) and is 50% above the Tier 2 rate rounded up or down to the nearest twenty-five cent increment whichever is closer.

E. Signage for the tier-based parking rates reflects the number of hours a vehicle may park at the base hourly parking rate (Tier 1) before subsequent tiered rates take effect.

1. 1+ parking rate: Parking up to one hour at the base hourly parking rate before Tier 2 is in effect.

2. 2+ parking rate: Parking up to two hours at the base hourly parking rate before Tier 2 is in effect.

3. 3+ parking rate: Parking up to three hours at the base hourly parking rate before Tier 2 is in effect.

4. 4+ parking rate: Parking up to four hours at the base hourly parking rate before Tier 2 is in effect.

D.F. The Public Works Director may periodically adjust the hourly parking rates on any block or set of blocks within the areas designated on the parking rate zones map (Exhibit A) during the time of operation as detailed in section

10.52.020 up to and including 120% of the effective hourly rate based on the observed occupancy. Hourly parking rates shall be adjusted not more than every 30 days.

Ordinance No. _____ (2024 Series) Page 3
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(Ord. 1714 § 1 (Exh. A), 2022; Ord. 1699 § 2, 2021: Ord. 1683 § 1 (Exhs. A, B), 2020: Ord. 1635 § 1 (Exhs. A, B), 2017: Ord. 1620 § 1 (Exh. A), 2015; Ord. 1568 § 1, 2011: Ord. 1552 § 2, 2010; Ord. 1532 § 2, 2009; Ord. 1492 § 1, 2006: Ord. 1233 § 1, 1993: Ord. 1194 § 1, 1991: Ord. 1099 § 1, 1987: prior code § 3213) SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

SECTION 3. Environmental Determination. These amendments to Title 10 Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a “Project” under California Environmental Quality Act (CEQA) Guidelines Sec. 15378.

Ordinance No. _____ (2024 Series) Page 4
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SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the _____ day of ______, 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following vote:

AYES:

NOES:

ABSENT:
________________________________
Mayor Erica A. Stewart
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Ordinance No. _____ (2024 Series) Page 5
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Exhibit A

R ______
RESOLUTION NO. _____ (2024 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, ESTABLISHING PARKING RATES FOR THE
CITY’S PARKING STRUCTURES AND FOR PARKING PERMITS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states that the City parking programs shall be financially self-supporting; and WHEREAS, parking rates are used as a tool to effectively manage parking demand for both on-street and off-street public parking areas; and WHEREAS, on June 7, 2022, the City Council adopted Resolution No. 11334 (2022 Series) establishing new rates for the parking structures and approved elimination of the first sixty minutes free in all parking structures subsidy, effective July 1, 2023, which were deemed necessary to offset the construction costs and corresponding debt service repayment for the new Cultural Arts District public parking structure and to maintain a fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s Parking program rates and fees and to develop parking priorities and recommendations to help address community and downtown parking concerns; and WHEREAS, on November 7, 2023, the City Council adopted Resolution No. 11456 (2023 Series) reinstating the first sixty minutes free in all parking structures subsidy, free parking all day on Sundays in all parking structures, and free on-street and off-street parking locations during the annual downtown holiday parade hour of 6:00 p.m. – 11:50 p.m. as a way to provide temporary relief for businesses, visitors, and employees from the significant rate and fee increases until June 30, 2025; and WHEREAS, on November 7, 2023, the City Council authorized release of a Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s Parking program rates and fees and the parking rate study commenced in January 2024; and
WHEREAS, significant outreach was conducted for the parking rate study which demonstrated that maintaining the first sixty minutes free in all parking structures subsidy is a top priority to address the community and downtown parking concerns; and WHEREAS, financial modeling completed for the parking rate study demonstrates that maintaining the first sixty minutes free in all parking structures subsidy and a slight reduction in the hourly rate in all parking structures can be implemented without jeopardizing the Parking Fund’s long-term fiscal health; and

Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, the continued support of the downtown by providing the first hour free in all parking structures, provides economic benefits to the community and assists with applicable parking policies shifting on-street parking to off-street parking structures; and WHEREAS, at a special meeting on May 14, 2024, the City Council considered parking rate and fee options to address the public’s concerns while also maintaining a fiscally solvent Parking Fund; and
WHEREAS, the Comprehensive Fee Schedule will be updated to reflect the new and updated parking rates as described below.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Resolution No. 11334 (2022 Series) is hereby rescinded.

SECTION 2. Effective July 1, 2025, upon expiration of Resolution No. 11456 (2023 Series), the first sixty minutes free in all parking structures subsidy shall be maintained.

SECTION 3. Effective July 8, 2024, the hourly rate in all parking structures shall be $2.50 per hour, including Sundays.

SECTION 4. Effective July 8, 2024, the maximum daily and overnight parking rate in all parking structures shall be $10.00 per day, including Sundays.

SECTION 5. Effective July 8, 2024, the lost ticket rate in all parking structures shall be $10.00 per ticket per day, including Sundays.

SECTION 6. Effective July 8, 2024, the hourly validation program rate for gated parking structures shall be $1.00 per hour.

SECTION 7. Effective July 1, 2024, the fee for monthly parking structure permits for all parking structures shall be $45 per month.

SECTION 8. Effective July 1, 2024, the fee for 10-hour meter permits shall be $60 per month.

Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 9. Environmental Review. The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the recommended action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

The adoption of parking structure and parking permit rates is considered an administrative activity of a government agency that will not result in direct or indirect physical impacts on the environment.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2024. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

City of
San Luis Obispo
Parking Fund Financial Policies
May 1, 2000
The purpose of this “ white paper” is to address four
concerns that have recently emerged about the
Parking Fund:

When was the Parking Fund created? How is it
funded? How are these funds used?
What is the City’ s policy regarding the use of
Parking Fund resources? Has the Parking Fund
ever subsidized the General Fund?
How were past property purchases funded? And
based on this, what fund should receive the
proceeds from any land sales?
How are residential parking districts funded?
Do related revenues cover costs?
P

ARKING FUND CREATION
Based on a review of budget documents, the City
has used meters for at least 45 years ( and perhaps
longer than that, but
our budget files only
go back to 1955).

However, a formally
distinct Parking Fund
was not established
until 1975. Before this, parking-related activities
were accounted for as just another General Fund
expenditure like police, fire or street maintenance,
with any parking-related revenues recorded in the
General Fund as well. In short, until 1975, there was
no formal separation of ongoing financial activities
related to parking— revenues or expenditures— from
other General Fund transactions.

Parking Enterprise Fund. Since it was first
formed in 1975, the Parking Fund has been
accounted for as an enterprise fund. Under
generally accepted accounting principles, different
types of governmental activities are accounted for
differently depending on their purpose. Enterprise
funds are used to account for services that are similar to private sector activities where the intent is to
finance or recover the cost of providing services
primarily through user charges.

The City has five enterprise funds ( water, sewer,
parking, transit and golf). Each enterprise fund is a
separate and distinct
accounting entity, and
as such, the operations
of each fund are
accounted for within a
separate set of self-balancing accounts that comprise
its assets, liabilities, fund equity, revenues and
expenses.

The Parking Fund is a
separate accounting entity
from all other City funds.

This means that the financial condition and results
from operations can be uniquely determined for each
enterprise fund.

Parking Fund Sources and Uses. Based on the
1999-01 Financial Plan, the following summarizes
Parking Fund sources and uses for 1999-00:
1999-00 Parking Sources: $ 2.7 Million
Meters
45%
Fines
18%
Other
10%
In-Lieu Fees
4%
Structures
18%
Leases
5%
The Parking Fund was not
created until 1975, but we’ve
had parking meters for at
least 45 years.

As reflected above, parking meters on City streets
and parking lots are the Parking Fund’ s largest
revenue source, bringing in about $ 1.2 million
annually and accounting for almost half of total
revenues. Daily fees and passes at the two parking

Parking Fund Financial Policies Page 2
structures bring in about $ 475,000 annually and
account for about 18% of total revenues. Parking
fines bring in about the same amount of revenue as
the two structures ($ 480,000). These top three
revenues— meters, structures and fines—account for
over 80% of total Parking Fund revenues.
1999-00 Parking Uses: $1.9 Million
Debt Service
35%
Operations
59%
CIP Projects
6%
Operations and Maintenance. At about $ 1.1
million annually, day-to-day operations account
for almost 60% of total Parking Fund
expenditures. This includes “ direct” activities
like maintaining parking lots and repairing
meters, collecting revenues from about 1,600
meters, enforcing parking regulations, collecting
fines, and operating and maintaining two
structures with 669 spaces. Parking
management and planning costs are also paid by
the Parking Fund, along with “ indirect” costs
like insurance and engineering support services.

CIP Projects. These vary significantly from
year-to-year. In some years ( like 1999-00),
these can be relatively small. In other years,
however, they can be very large. In 1997- 99, for
example, the CIP budget included funds for
expanding the Marsh Street structure.

Debt Service. This represents the City’ s
principal and interest payment of $ 650,000
annually on bonds issued to help fund
construction of the City’s two parking structures.

Revenues Versus Expenditures. As reflected
above, we project that revenues in 1999- 00 will
exceed expenditures by about $ 800,000. These
net” revenues will be used to fund future Parking
Management Plan programs and projects.

Additional Financial Information About the
City’s Parking Fund. The following excerpts from
the City’ s 1999- 01 Financial Plan about the Parking
Fund are provided in Exhibit A:

Parking Program Narrative
CIP Projects and Descriptions
Debt Service Obligations
General Government Cost Allocations
Changes in Financial Condition
Provided in Exhibit B are the following audited
financial statements for the City’ s Parking Fund for
the last completed fiscal year (1998-99):

Balance Sheet
Income Statement
A
Statem

LLOWED PARKING FUND USES
ent of Cash Flows
City Policies Regarding Enterprise Funds. As set
forth in the attached excerpt from the City’ s 1999-01
Financial Plan (Exhibit C), it is the City’ s policy to set parking fees and rates that fully cover the total
costs ( direct and indirect) of the Parking Fund,
including operations, capital outlay and debt service.

This means that the
General Fund does not
subsidize the Parking
Fund, and the Parking
Fund does not subsidize the General Fund. In short,
parking revenues are solely dedicated for parking
purposes. On the other hand, General Fund revenues
should not be used for parking purposes.

Parking revenues are solely
dedicated to parking
purposes.

But what are “ parking purposes?” The purpose
of the Parking Fund is to finance programs and
projects intended to achieve our parking goals.

Expenditures that do
this are accomplishing
a “ parking purpose,”
and thus are a
legitimate use of
Parking Fund revenues.

The City’ s parking
goals are set forth in a number of policy documents,
including the General Plan, Parking Management
Simple Test
Expenditures intended
to achieve the City’s
parking goals are an
appropriate use of
Parking Fund sources.

Parking Fund Financial Policies Page 3
Plan and Financial Plan. The following summarizes
parking goals from the Financial Plan and the
Parking Management Plan:
1999-01 Financial Plan. As provided in Exhibit A,
the purpose of the City’ s Parking Program is to
implement the Parking Management Plan and direct
the operation and maintenance of the City's parking
facilities. Program goals are:

Adequate, safe and attractive parking for
visitors, customers and employees in the
downtown and Railroad Square.

Adequate neighborhood parking for residents.

Recovery of all program costs through user
charges and other program revenue.

Thus, any expenditure that accomplishes these
purposes and goals would be an appropriate use of
Parking Fund resources.

Parking Management Plan. As reflected above, the
Parking Management Plan is a major policy
document in setting parking goals and objectives.

As such, it is a major driver in determining
appropriate uses of Parking Fund resources.

Originally adopted in 1987 and last updated in 1995,
the Parking Management Plan establishes vehicle
parking policies and programs that apply throughout
the City, not just the downtown. Plan goals include:

Support the commercial core as a viable
economic and cultural center and preserve its
historic character.

Support goals of the Downtown Concept Plan.

Provide enough parking in the commercial core
for visitors and employees.

Reduce the demand for employee parking
through various programs such as carpooling.

Support the transportation strategy presented in
the General Plan Circulation Element.

Again, expenditures that help achieve these goals as
well as the more detailed policies and programs set
forth in this Plan would be appropriate uses of
Parking Fund resources.

Has the Parking Fund Ever Subsidized the
General Fund? No. Since its inception in 1975,
Parking Fund revenues have been used solely for
parking purposes. However, as discussed below, the
City has provided significant subsidies to the
Parking Fund by
providing it with land
at no cost. Further, a
significant portion of
Parking Fund
revenues comes from
street meters. The
General Fund has never charged the Parking Fund
for the use of this valuable right-of-way.

The Parking Fund has never
subsidized the General Fund.

However, the General Fund
has provided land to the
Parking Fund at no cost.

Summary. Programs and projects financed by the
Parking Fund will vary from year-to-year based on
the approved Financial Plan and Budget. Rather
than focusing on the type of expenditure in
determining whether it is an appropriate use of
Parking Fund resources, the simple test is to ask:

Does this expenditure help us achieve our parking
goals?
If it does, then it is an allowable use of the Parking
Fund revenues. ( Deciding if it is a high priority use
is a different issue, best answered through the City’ s goal-setting and budget process; but we need to
distinguish between an allowed use and a good one).

Viewed in a somewhat different way, the economy
of a billion people changed almost overnight based
on the simple observation that it doesn’ t matter if a
cat is black or white as long as it catches mice. In
determining the appropriate use of Parking Fund
resources, we should focus on whether the
expenditure will “ help us catch mice” ( achieve our
parking goals), not on its “ color” ( the specific type of expenditure we use to achieve these goals).

F

UNDING PROPERTY PURCHASES
Since adoption of the City’ s first Parking
Management Plan in 1987, all parking-related
property purchases
have been funded
through the Parking
Fund. However,
before then, we used a
We have used both General
and Parking Funds to acquire
parking-related properties in
the past.

Parking Fund Financial Policies Page 4
variety of funding sources in purchasing parkingrelated properties. After almost 50 years, determining how each of them was acquired would
be a major research task. However, on a case-bycase basis as this issue has arisen, we have researched old property, budget and audit files to
determine acquisition funding sources. The
following are two examples:

Palm Street-Court Street Project. In response to
the recent Palm Street-Court Street proposal from
the Copeland’ s, we have extensively researched the
source of funding for the City properties that would
be potentially affected by this project, and
discovered the following about the two affected
parking lots:

Court Street. There
are three separate
parcels on this site.

Parcels A and B
about 75% of the
site) were purchased
with parking
revenue bonds in
1961; and Parcel C ( about 25% of the lot, and the
site of the old Obispo Theater) was acquired in 1984
with General Fund revenues.

Palm-Monterey.

These parking lots
were acquired over a
number of years:

Lot 3” in 1957 and
1958; “ Lot 11” in
1966; and the corner
lot at Morro and
Palm in 1981. All of these properties were
purchased with General Fund revenues.

San Luis Obispo
Little Theater
Project. As part of
this project
proposal, we
researched the
funding source for
Lot 14” on
Monterey and Palm Streets between Nipomo and
Broad. We found that it was purchased in 1976 with
General Fund revenues.

Impact on Parking Fund Equity. The favorable
affect of General Fund property purchases on
Parking Fund equity is reflected in the audited
financial statements provided in Exhibit B for 1998-
99, which show $ 1,854,000 in contributed capital.

This reflects the value of properties “ contributed” to the Parking Fund by the General Fund.

In accordance with generally accepted principles,
this is based on the value of the properties at the
time of purchase (or contribution). As noted above,
many of these properties were purchased by the
General Fund many years ago, and as such, their
market value is much higher today than the “ book”
value recorded in our financial statements.

What Fund Should Receive the Proceeds from
the Sale of Parking-Related Properties? This
should be determined based on the original funding
source:

C
If the property was purchased through the
Parking Fund, then the proceeds should always
be recorded in the
Parking Fund.

If the property
was purchased
with General Fund revenues, then the use of the
proceeds is discretionary by the City: they may
appropriately be used for Parking or other
purposes.

Application of this Principle. Let’ s put this
principle in the context of several property sales
currently under consideration. If we were to sell
Court Street, about 75% of the proceeds should go to
the Parking Fund based on its direct “ equity” share
in this property. The balance of the proceeds could
be used for other purposes, since the General Fund
paid for about 25% of this site. This is also the case
for the sale ( or alternate use) of lots 3, 11 and 14,
since the General Fund paid for these as well.

This principle also applies to the Parking Fund’ s use
of the City’ s right-of-way for revenue ( parking
meter) purposes. This is why no compensation is
provided by the General Fund if on-street metered
spaces are removed for other public purposes: the
Parking Fund never paid for their use to begin with.

Proceeds should be allocated
based on the original funding
source.

A
B
C
A B
11 3
14

Parking Fund Financial Policies Page 5
In the case of the recent acquisition and remodel of
the office building on 879 Morro Street for the
Utilities Department, the Parking Fund will be fully
reimbursed for the loss of two surface parking
spaces next to the Palm Street structure as part of
this project.

R

ESIDENTIAL PARKING DISTRICTS
As set forth in the Parking Management Plan, the
Parking Fund covers more than just the downtown;
it has community- wide parking responsibilities,
including residential parking districts throughout the
City and Railroad Square.

What is the fiscal impact of the residential
parking districts on the Parking Fund? As
summarized in Exhibit D, we took a detailed look at
this in 1997. This
analysis shows that the
revenues from the
residential parking
districts fully recover
related costs; in fact, there is a small surplus ( about 6,000 annually).

What if these costs were not fully recovered?
Based on City parking goals, it would be appropriate
to account for these costs in the Parking Fund even
ifthey were not fully offset by related revenues.

Our enterprise fund policy does not require that
every specific activity within the fund be fully offset by related revenues. Just as in the private sector,
there are activities within each of our enterprise
funds that generate more revenues than others;
prices are set accordingly based on overall business
strategies (in our case, desired policy outcomes) and
market forces.

While there are several examples of this in each of
our enterprise funds, there are excellent ones within
the Parking Fund itself.

For example, it is clear that the direct daily fees and pass revenues from the parking structures do not
come anywhere near recovering their operating,
maintenance and capital costs. Similarly, it does not
cost us any more to maintain parking meters in the
core” area of downtown, but for very valid business
reasons, our hourly rate for them is higher than in
the outlying areas.

In summary, not every activity within an
enterprise—public or private—can or should be a
profit center. As such, in complying with our
enterprise fund policies, it is not necessary for every specific activity within the fund to recover its cost as long as the fund as a whole is adequately covering
its total costs.

S
UMMARY
The following is a recap of the answers to the
questions raised at the beginning of this “ white
paper:”
The Parking Fund as a distinct accounting entity
was formed in 1975.

Revenues from residential
parking districts fully
recover their costs.

Revenues from meters, structures ( daily fees and
passes) and fines are the Parking Fund’ s main
revenue sources, accounting for over 80% of
revenues. These revenues are used in funding
the operating, debt service and capital costs
incurred in achieving the City’s parking goals.

Parking Fund revenues are restricted for parking
purposes. This means parking revenues may be
used in funding programs and projects intended
to achieve the City’ s parking goals. These goals
are set in a number of policy documents,
including the General Plan, Parking
Management Plan and Financial Plan.

The Parking Fund has never subsidized the
General Fund.

Parking property purchases have been funded by
both the General Fund and the Parking Fund.

Proceeds from land sales ( or changes in use)
should be recorded in the Parking Fund if
Parking Fund revenues were used to purchase
the property. If the General Fund purchased the
site, then the proceeds may be used for parking
or other purposes.

Revenues from residential parking districts fully
recover their costs.

Parking Fund Financial Policies

EXHIBITS
A. 1999-01 Financial Plan: Excerpts on Parking

1. Parking Program Narrative

2. CIP Projects and Descriptions

3. Debt Service Obligations

4. General Government Cost Allocations

5. Changes in Financial Condition
B. 1998-99 Audited Financial Statements

1. Balance Sheet

2. Income Statement

3. Statement
C. Budget and Fiscal Policies: Enterprise Fund Rates and Fees D. Residential Parking District Cost Analysis: July 14, 1997 Note: These Exhibits are not attached in this
handout, but they are available upon request from
the Department of Finance:

Phone: 805.781.7125
Email: [email protected]

Attachment E
Draft Ordinance reflecting Option C, as listed in the Staff Report O ______
ORDINANCE NO. ____ (2024 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 10, CHAPTER 52 (PARKING

METERS), OF THE SAN LUIS OBISPO MUNICIPAL CODE MODIFYING

HOURLY PARKING RATES ON-STREET AND IN SURFACE PARKING
LOTS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states that the City parking programs shall be financially self-supporting; and WHEREAS, parking rates are used as a tool to effectively manage parking demand for both on-street and off-street public parking areas; and WHEREAS, on June 21, 2022, the City Council adopted Ordinance No. 1714 (2022 Series) approving multiple hourly rate increases for the on-street areas and municipal parking lots effective January 2, 2023, July 1, 2023, and July 1, 2025 which were deemed necessary to offset the construction costs and corresponding debt service repayment for the Cultural Arts District public parking structure in order to maintain a fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s Parking program rates and fees and to develop parking priorities and recommendations to help address community and downtown parking concerns; and WHEREAS, on November 7, 2023, the City Council authorized release of a Request for Proposals (RFP) to conduct a parking rate study; and WHEREAS, the parking rate study recommendations include reducing hourly parking rates on-street and in municipal parking lots along with other recommended changes to address the community and downtown parking concerns; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council of City Hall, 990 Palm Street, San Luis Obispo, California, on May 14, 2024, to consider parking rate and fee options to address the public’s concerns while also maintaining a fiscally solvent Parking Fund including recommended changes to Title 10, Chapter 52 of the Municipal Code.

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Section 10.52.010 (Paid Parking zone - Rates) of the San Luis Obispo Municipal Code is hereby amended as follows:

Ordinance No. _____ (2024 Series) Page 2
O ______

10.52.010 Paid Parking zone—Rates.

A. Within the area enclosed by a solid line on the parking rate zone map (Exhibit A) the parking of vehicles on streets or in municipal parking lots may be controlled and regulated with the aid of parking meters as defined in section 10.04.110 and/or parking payment centers as defined in section

10.04.120.

B. Within the cross-hatched area designated on the parking rate zones map (Exhibit A) the base rate for parking meters on streets or in municipal parking lots shall be one dollar and fifty cents per hour effective January 2, 2023. The rate in this area shall increase to three dollars per hour effective July 1, 2023. two dollars and fifty cents per hour effective July 8, 2024.

C. Within the grey-shaded area designated on the parking rate zones map (Exhibit A), the base rate for parking meters on streets or in municipal lots shall be two dollars effective January 2, 2023. The rate in this area shall increase to four dollars per hour effective July 1, 2023. The rate in this area shall increase to five dollars per hour effective July 1, 2025. three dollars per hour effective July 8, 2024.

D. The tier-based parking rates, which allow a customer to extend their parking session beyond the posted number of hours, are as follows:

1. Tier 1: The base hourly rate per rate zone

2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier 1 time and is 50% above the Tier 1 rate rounded up or down to the nearest twenty-five cent increment whichever is closer.

3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s) and is 50% above the Tier 2 rate rounded up or down to the nearest twenty-five cent increment whichever is closer.

E. Signage for the tier-based parking rates reflects the number of hours a vehicle may park at the base hourly parking rate (Tier 1) before subsequent tiered rates take effect.

1. 1+ parking rate: Parking up to one hour at the base hourly parking rate before Tier 2 is in effect.

2. 2+ parking rate: Parking up to two hours at the base hourly parking rate before Tier 2 is in effect.

3. 3+ parking rate: Parking up to three hours at the base hourly parking rate before Tier 2 is in effect.

4. 4+ parking rate: Parking up to four hours at the base hourly parking rate before Tier 2 is in effect.

DF. The Public Works Director may periodically adjust the hourly parking rates on any block or set of blocks within the areas designated on the parking rate zones map (Exhibit A) during the time of operation as detailed in section 10.52.020 up to and including 120% of the effective hourly rate based on the observed occupancy. Hourly parking rates shall be adjusted not more than every 30 days.

Ordinance No. _____ (2024 Series) Page 3
O ______
(Ord. 1714 § 1 (Exh. A), 2022; Ord. 1699 § 2, 2021: Ord. 1683 § 1 (Exhs. A, B), 2020: Ord. 1635 § 1 (Exhs. A, B), 2017: Ord. 1620 § 1 (Exh. A), 2015; Ord. 1568 § 1, 2011: Ord. 1552 § 2, 2010; Ord. 1532 § 2, 2009; Ord. 1492 § 1, 2006: Ord. 1233 § 1, 1993: Ord. 1194 § 1, 1991: Ord. 1099 § 1, 1987: prior code § 3213) SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

SECTION 3. Environmental Determination. These amendments to Title 10 Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a “Project” under California Environmental Quality Act (CEQA) Guidelines Sec. 15378.

Ordinance No. _____ (2024 Series) Page 4
O ______
SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the ____ day of ______, 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following vote:

AYES:

NOES:

ABSENT:
________________________________
Mayor Erica A. Stewart
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Ordinance No. _____ (2024 Series) Page 5
O ______
Exhibit A

Attachment F
Draft Resolution reflecting Option B or Option C, as listed in the Staff Report R ______
RESOLUTION NO. _____ (2024 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, ESTABLISHING PARKING RATES FOR THE
CITY’S PARKING STRUCTURES AND FOR PARKING PERMITS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states that the City parking programs shall be financially self-supporting; and WHEREAS, parking rates are used as a tool to effectively manage parking demand for both on-street and off-street public parking areas; and WHEREAS, on June 7, 2022, the City Council adopted Resolution No. 11334 (2022 Series) establishing new rates for the parking structures and approved elimination of the first sixty minutes free in all parking structures subsidy, effective July 1, 2023, which were deemed necessary to offset the construction costs and corresponding debt service repayment for the new public parking structure in order to maintain a fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s Parking program rates and fees and to develop parking priorities and recommendations to help address community and downtown parking concerns; and WHEREAS, on November 7, 2023, the City Council adopted Resolution No. 11456 (2023 Series) reinstating the first sixty minutes free in all parking structures subsidy, free parking all day on Sundays in all parking structures, and free on-street and off-street parking locations during the annual downtown holiday parade hour of 6:00 p.m. – 11:50 p.m. as a way to provide temporary relief for businesses, visitors, and employees from the significant rate and fee increases that went into effect July 1, 2023; and WHEREAS, on November 7, 2023, the City Council authorized release of a Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s Parking program rates and fees; and
WHEREAS, the parking rate study recommendations include elimination of the first sixty minutes free in all parking structures subsidy, elimination of free parking all day on Sundays, a reduction of the hourly rate and maximum daily rate, and a reduction in the monthly parking rate in all parking structures along with other recommended changes to address the community and downtown parking concerns; and WHEREAS, at a special meeting on May 14, 2024, the City Council considered parking rate and fee options to address the public’s concerns while also maintaining a fiscally solvent Parking Fund; and

Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, the Comprehensive Fee Schedule will be updated to reflect all new and updated parking rates as described below.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Resolution No. 11334 (2022 Series) is hereby rescinded.

SECTION 2. Effective July 8, 2024, the first sixty minutes free in all parking structures subsidy shall be eliminated. A fifteen-minute grace period shall be provided upon entry into all parking structures before the hourly parking structure rates apply.

SECTION 3. Effective July 8, 2024, hourly rate in all parking structures shall be $2.00 per hour including Sundays.

SECTION 4. Effective July 8, 2024, the maximum daily and overnight rate in all parking structures shall be $8.00 per day, including Sundays.

SECTION 5. Effective July 8, 2024, the lost ticket rate in all parking structures shall be $8.00 per ticket per day, including Sundays.

SECTION 6. Effective July 8, 2024, the hourly validation program rate for all parking structures shall be $1.00 per hour.

SECTION 7. Effective July 1, 2024, the fee for monthly structure permits for all parking structures shall be $45 per month.

SECTION 8. Effective July 1, 2024, the fee for 10-hour meter permits shall be $60 per month.

Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 9. Environmental Review. The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the recommended action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2024. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Attachment G
Draft Ordinance reflecting Option B, as listed in the Staff Report O ______
ORDINANCE NO. ____ (2024 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 10, CHAPTER 52 (PARKING

METERS), OF THE SAN LUIS OBISPO MUNICIPAL CODE MODIFYING

HOURLY PARKING RATES ON-STREET AND IN SURFACE PARKING
LOTS
WHEREAS, Policy 13.1.2 of the Circulation Element of the General Plan states that the City parking programs shall be financially self-supporting; and WHEREAS, parking rates are used as a tool to effectively manage parking demand for both on-street and off-street public parking areas; and WHEREAS, on June 21, 2022, the City Council adopted Ordinance No. 1714 (2022 Series) approving multiple hourly rate increases for the on-street areas and municipal parking lots effective January 2, 2023, July 1, 2023, and July 1, 2025 which were deemed necessary to offset the construction costs and corresponding debt service repayment for the new Cultural Arts District public parking structure in order to maintain a fiscally solvent Parking Fund; and
WHEREAS, on February 21, 2023, the City Council directed staff to return with a Request for Proposals (RFP) to conduct a parking rate study to evaluate the City’s Parking program rates and fees and to develop parking priorities and recommendations to help address community and downtown parking concerns; and WHEREAS, on November 7, 2023, the City Council authorized release of a Request for Proposals (RFP) to conduct a parking rate study; and WHEREAS, the parking rate study recommendations include reducing hourly parking rates on-street and in municipal parking lots along with other recommended changes to address the community and downtown parking concerns; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on May 14, 2024, to consider parking rate and fee options to address the public’s concerns while also maintaining a fiscally solvent Parking Fund including recommended changes to Title 10, Chapter 52 of the Municipal Code.

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Section 10.52.010 (Paid Parking zone - Rates) of the San Luis Obispo Municipal Code is hereby amended as follows:

Ordinance No. _____ (2024 Series) Page 2
O ______

10.52.010 Paid Parking zone—Rates.

A. Within the area enclosed by a solid line on the parking rate zone map (Exhibit A) the parking of vehicles on streets or in municipal parking lots may be controlled and regulated with the aid of parking meters as defined in section

10.04.110 and/or parking payment centers as defined in section 10.04.120.

B. Within the cross-hatched area designated on the parking rate zones map (Exhibit A) the base rate for parking meters on streets or in municipal parking lots shall be one dollar and fifty cents per hour effective January 2, 2023.

The rate in this area shall increase to three dollars per hour effective July 1, 2023. two dollars and twenty-five cents per hour effective July 8, 2024.

C. Within the grey-shaded area designated on the parking rate zones map (Exhibit A), the base rate for parking meters on streets or in municipal lots shall be two dollars effective January 2, 2023. The rate in this area shall increase to four dollars per hour effective July 1, 2023. The rate in this area shall increase to five dollars per hour effective July 1, 2025. two dollars and seventy-five cents per hour effective July 8, 2024.

D. The tier-based parking rates, which allow a customer to extend their parking session beyond the posted number of hours, are as follows:

1. Tier 1: The base hourly rate per rate zone

2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier 1 time and is 50% above the Tier 1 rate rounded up or down to the nearest twenty-five cent increment whichever is closer.

3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s) and is 50% above the Tier 2 rate rounded up or down to the nearest twenty-five cent increment whichever is closer.

E. Signage for the tier-based parking rates reflects the number of hours a vehicle may park at the base hourly parking rate (Tier 1) before subsequent tiered rates take effect.

1. 1+ parking rate: Parking up to one hour at the base hourly parking rate before Tier 2 is in effect.

2. 2+ parking rate: Parking up to two hours at the base hourly parking rate before Tier 2 is in effect.

3. 3+ parking rate: Parking up to three hours at the base hourly parking rate before Tier 2 is in effect.

4. 4+ parking rate: Parking up to four hours at the base hourly parking rate before Tier 2 is in effect.

DF. The Public Works Director may periodically adjust the hourly parking rates on any block or set of blocks within the areas designated on the parking rate zones map (Exhibit A) during the time of operation as detailed in section

10.52.020 up to and including 120% of the effective hourly rate based on the observed occupancy. Hourly parking rates shall be adjusted not more than every 30 days.

Ordinance No. _____ (2024 Series) Page 3
O ______
(Ord. 1714 § 1 (Exh. A), 2022; Ord. 1699 § 2, 2021: Ord. 1683 § 1 (Exhs. A, B), 2020: Ord. 1635 § 1 (Exhs. A, B), 2017: Ord. 1620 § 1 (Exh. A), 2015; Ord. 1568 § 1, 2011: Ord. 1552 § 2, 2010; Ord. 1532 § 2, 2009; Ord. 1492 § 1, 2006: Ord. 1233 § 1, 1993: Ord. 1194 § 1, 1991: Ord. 1099 § 1, 1987: prior code § 3213) SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

SECTION 3. Environmental Determination. These amendments to Title 10 Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a “Project” under California Environmental Quality Act (CEQA) Guidelines Sec. 15378.

Ordinance No. _____ (2024 Series) Page 4
O ______
SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the ____ day of _______, 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following vote:

AYES:

NOES:

ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Ordinance No. _____ (2024 Series) Page 5
O ______
Exhibit A