City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 26, 2019
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 Changes to Increase the Monthly Parking Rates to be Charged to the Employees and the General Public at City-owned Parking Facilities for
FY 2020.[ROLL-CALL VOTE]
.BODY
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ISSUE: Resolution to increase the monthly parking rates charged to the public and City employees at City-owned parking facilities.
RECOMMENDATION: That the City Council adopt the attached Resolution (Attachment 1) as part of the FY 2020 Approved Budget. The new fees will be effective July 1, 2019.
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, 10 Thompson’s Alley, 220 N. Union Street, 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 and Market Square garages is $180 per month, Thompson’s Alley Garage is $160 per month, Union Street and St. Asaph are $170 per month, and the Henry and Patrick Street lots are $130 per month.
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 113 City employees located in Old Town have monthly accounts to park in these City-owned parking ‘facilities at a subsidized rate of $130 per month which is automatically deducted from their paycheck on a pre-tax basis once per month.
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 those of privately-owned commercial parking facilities located in Old Town by as much as 13 percent. The FY 2020 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, but they have been tailored up or down in some cases 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 $130 to $140 per month. This proposed action will bring the employee monthly parking rate closer to market rate parking fees that the City charges private sector employees and property owners. The City has been gradually increasing the rate which it charges City employees to market rates which is what the City urges private sector employers to do.
FISCAL IMPACT: Increasing the public and City employee monthly parking fees is projected to generate approximately $53,400 in additional General Fund revenue each year with no additional cost.
ATTACHMENT: Resolution
STAFF:
Laura B. Triggs, Deputy City Manager
Morgan Routt, Director, Office of Management & Budget
Jeremy McPike, Director, General Services
Alfred Coleman, Deputy Director, General Services