City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 26, 2017
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Consideration of a Resolution to Adopt Fee Changes to Increase the Monthly Parking Rates to be Charged to the Employees and the General Public at City-owned Parking Facilities and the Rental Fee Charged for Market Square Events for FY 2018. [ROLL-CALL VOTE]
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ISSUE: Resolution to increase the monthly parking rates charged to the public and City employees at City-owned parking facilities and the rental fee changed for Market Square Events.
RECOMMENDATION: That the City Council adopt the attached Resolution (Attachment) as part of the FY 2018 Approved Budget. The new fees will be effective July 1, 2017.
BACKGROUND: The City owns seven parking facilities (four garages and three surface lots) in the Old Town area that assess fees for parking including the Courthouse, Market Square, 220 N. Union Street, 10 Thompson’s Alley, 210 N. St. Asaph Street, 116 S. Henry Street and 120 N. Patrick Street. The current monthly parking rate for the public at the Courthouse, Market Square and 220 N. Union Street parking garages is $170 per month. The current monthly parking rate for the public at the 10 Thompson’s Alley garage is $135 per month; $155 per month at 220 N. St. Asaph Street surface lot; and $100 per month at 116 S. Henry and 120 N. Patrick Street lots.
These parking facilities each utilize a different mix of monthly parking spaces for the public and City employees and daily/transient spaces for anyone to use. The exact mix is based on the specific demand at each of the sites and is designed to find a balance between revenue maximization and accommodating City employee parking needs. Monthly parking fees also vary at each of the facilities depending upon the specific local market. Rates may vary even among facilities just a few blocks apart.
Additionally, approximately 119 City employees located in Old Town have monthly accounts to park in these City-owned parking ‘facilities at a subsidized rate of $110 per month which is automatically deducted from their paycheck on a pre-tax basis once per month. In addition, there are approximately 154 City employees who are on the waiting list to obtain monthly parking at one of the five parking facilities in proximity to City Hall.
In 2004, the City established a rental fee for the use on Market Square for any non-City sponsored special events. Annually, there are an average of 38 non-sponsored special events. Rental fees are not charged for events such as those which are City sponsored/co-sponsored, religious events, demonstrations/rallies, etc. The current rental fee is $35 per hour for a minimum rental period of 4-hours and the rental fee have not been increased since it was established.
DISCUSSION: Annually, the City conducts a parking rate survey which compares both the City monthly and hourly off-street parking rates with those of privately-owned commercial parking facilities in Old Town. The most recent parking rate survey showed that City off-street monthly parking rates continue to lag behind those of privately-owned commercial parking facilities located in Old Town by as much as 16 percent. The FY 2018 Budget includes an increase to monthly public rates to bring them more in line with the current market. The attached resolution describes the specific rates to be assessed at each of the facilities. In general, these rates reflect an increase of approximately 11 percent on average to more closely align with privately-owned, commercial parking facilities in Old Town.
Staff also proposed an increase to the subsidized rate for City employee monthly parking at City-owned parking facilities from $110 to $120 per month. This $10 increase has been planned annually to move City employee parking eventually to market rates. This proposed action will bring the employee monthly parking rate closer to the market rate parking fees that the City charges private sector employees and property owners.
In addition, in the context of the FY 2018 budget process, staff proposed an increase to rental fees charged for Market Square Events. The fee will increase by $15, from $35 per hour to $50 per hour with a four-hour minimum rental period. While this will result in a minimal increase in revenue, it will bring rates in line with rental rates for City facilities charged by other City departments.
FISCAL IMPACT: Increasing the public and City employee monthly parking fees is projected to generate approximately $70,810 in additional General Fund revenue each year with no additional cost.
ATTACHMENT: Resolution
STAFF:
Laura Triggs, Deputy City Manager
Morgan Routt, Director, Office of Management & Budget
Jeremy McPike, Director, General Services
Alfred Coleman, Deputy Director, General Services