City of Alexandria, Virginia
________________
MEMORANDUM
DATE: APRIL 29, 2016
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution to Adopt Fee Increase for Parking Rates to be Charged to Employees at City-owned Parking Facilities for FY 2017. [ROLL-CALL VOTE]
BODY
_________________________________________________________________
ISSUE: Resolution to increase the monthly parking rates charged to employees at City-owned parking facilities from $100 to $110.
RECOMMENDATION: That the City Council adopt the attached Resolution (Attachment) as part of the FY 2017 approved budget. The new fees will be effective July 1, 2016.
BACKGROUND: The City owns seven parking facilities (four garages and three surface lots) in the Old Town area that assess fees for parking, five of which are available for employee parking including the Courthouse, Market Square, 220 N. Union Street, 10 Thompson’s Alley and 210 N. St. Asaph 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 and is $155 per month at 220 N. St. Asaph Street surface lot. Currently, approximately 119 City employees located in Old Town have monthly accounts to park in these facilities at a subsidized rate of $100 per month which is automatically deducted from their paycheck on a pre-tax basis once per month. There are approximately 81 other City employees who are on the waiting list to obtain monthly parking at one of these five facilities and another 144 City employees who likely need parking and are not on the waiting list.
DISCUSSION: In the context of the FY 2016 budget process, staff proposed and City Council approved an increase to the subsidized rate for City employee monthly parking at City-owned parking facilities from $90 to $100 per month which resulted in an additional $13,080 in General Fund revenue with a plan to continue to consider increases in this subsidized rate for parking until the approximates market rate. The FY 2017 Proposed Budget includes an additional increase to the subsidized rate for City employee monthly parking at City-owned parking facilities from $100 per month to $110 per month. 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.
As the City should set its own parking practices consistent with its policy direction of not subsidizing parking costs, I recommended starting with the FY 2016 budget that the City gradually annually increase the parking rate charged to its employees by $10 per month until market rates are achieved. FY 2017 would be the second year of this gradual adjustment.
FISCAL IMPACT: Increasing the employee parking fees is projected to generate approximately $14,000 of additional General Fund revenue each year with no additional cost.
ATTACHMENT: Resolution
STAFF:
Laura Triggs, Deputy City Manager
Morgan Routt, Budget Director
Jeremy McPike, Director, General Services
Alfred Coleman, Deputy Director, General Services