Consideration and Adoption of Ordinance No. 2016-05 - An ordinance of the City Council of the City of Flagstaff, Arizona, amending Flagstaff City Code Title 9, TRANSPORTATION, Chapter 9-01, TRAFFIC CODE; creating the Office of Parking Manager; modifying the duties of the Traffic Engineer accordingly; modifying and adding traffic violations necessary for permit parking and pay-to-park programs; authorizing the Parking manager to implement the Comprehensive Parking Management Program for the downtown, southside and surrounding areas with the installation of parking meters, signage, and other improvements for permit parking and pay-to-park programs; and establishing a special revenue fund for revenues generated by implementation of the Comprehensive Parking Management Program. (Downtown Comprehensive Parking Management Program)

Adoption of this ordinance would modify City Code as needed and desired to implement the Comprehensive Parking Management Program and would establish a special revenue fund for the Comprehensive Parking Management Program.  Changes to the City Code include creating the office of Parking Manager and modifying the duties of the Traffic Engineer accordingly, modifying and adding traffic violations necessary for permit parking and pay-to-park programs, and authorizing the Parking Manager to install parking meters, signage, and other improvements for permit parking and pay-to-park programs.  The special revenue fund would be for revenues and expenses within the downtown, southside, and surrounding impacted areas, and, expenditures would be further restricted to certain physical and operational parking related costs.  If the City Council also adopts the Comprehensive Parking Management Program (Resolution 2016-1), then City staff, working with the stakeholders, would begin implementation of the program including the development of Administrative Guidelines and initiating an educational outreach program designed to inform the general users of the new programs and requirements.  Subject to budget approval, City staff would procure and install the program components, most immediately including pay-to-park kiosks, permits, signage, minor improvements to parking facilities, and acquiring additional employee parking.  Again subject to budget approval, additional enforcement staff would be hired and in the near future, a parking Manager would be hired.
 

Adoption of this ordinance is not expected to have financial implications in and of itself.  However, if the City Council also adopts the Comprehensive Parking Management Program (Resolution 2016-1), and once all the program components are in place, the parking program is self-funding with an anticipated annual income of $1,000,000 and anticipated annual expenses of $600,000, leaving an annual balance of $400,000 to be held in reserve for the construction of new parking facilities (all figures being approximate projections).  The start-up costs are approximately $350,000 which is proposed to be put forth by the City and re-paid from the parking income over the first two years of operations.  None of these expenses are currently budgeted.  However, if the Council adopts this ordinance and the Comprehensive Parking Management Program (Resolution 2016-1), the revenues and expenses will be expressed in the next City Budget (the process for which is just now getting started).

COUNCIL GOALS:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
 

There have been several actions by the City Council related to parking and parking management over the last twenty-five years.  These have included various code provisions for parking and parking meters, conditional adoption of a parking management plans, installation and removal of parking meters, and many more actions too numerous to list and not necessarily foundational to the decision currently before the City Council.

Most recently, in December of 2015, the City Council considered the draft Comprehensive Parking Management Program and considered concepts for this ordinance at a work session and provided no direction for changes.

1.  Adopt ordinance as proposed.
2.  Adopt an amended version of the ordinance keeping in mind that amendments must be carefully drafted to maintain compatibility with the proposed Comprehensive Parking Management Program.
3.  Do not adopt ordinance as proposed in which event the Comprehensive Parking Management Program cannot be implemented.

Historically, three general areas in Flagstaff have experienced notable parking issues. The north Downtown area has experienced issues with parking shortages and parking turn-over. The North End neighborhood has experienced issues with spill-over parking from north Downtown. And, in recent years, the Southside has also experienced issues resulting from spill-over parking and due to the successful ongoing Southside redevelopment, new parking issues are emerging.

Discussions of addressing parking issues in north Downtown date back to the 1950s and five parking studies have been commissioned since the 1980s. In 2008 there was a partially successful effort to formulate a solution to the parking and other issues of downtown. However, that limited success was conditioned on resolving the remaining parts - notably including the development of more comprehensive solutions and achieving accord between, and buy-in from, all of the stakeholders. In addressing the unresolved parts, the follow-up work resulted in the formation of the Flagstaff Downtown Business Improvement and Revitalization District, however without addressing the parking issues. In 2011 there was an effort to solve some of the early renditions of parking issues in the Southside.

Certainly since 2008 the parking problems are well understood and agreed upon. Looking from the highest elevation, we need to manage our existing parking and we need to construct new parking facilities.

The impetus of the current consideration of our parking system is spill-over parking in the Southside, notably in the residential areas. Upon tackling this issue it quickly becomes clear that the issues and solutions are interconnected with the north Downtown and thus with the North End Neighborhood. And, we can reasonably anticipate that solutions for these areas will impact other adjacent neighborhoods such as La Plaza Vieja and Townsite. Thus the current Comprehensive Parking Management Program is a holistic solution to the known and anticipated parking problems.

A distinguishing feature of the current effort relates back to the 2008 City Council direction - Not only are the parking issues addressed comprehensively, there is accord and buy-in from the stakeholders. While there may still be individuals that have concerns, the eleven stakeholder groups have all indicated support for the current approach. Each recognizes the need to address the parking issues now, the need to do so in a balanced way (compromise), and the need to start accumulating funds for constructing new parking facilities.

Detailed background information relative to the current effort is included in the Comprehensive Parking Management Program (Resolution 2016-1) and is not duplicated here for brevity.

If adopted, this ordinance would create the office of Parking Manager and modify the duties of the Traffic Engineer accordingly.  Currently all parking is under the authority of the Traffic Engineer (within the Engineering Section).  This ordinance would place authority for public parking in the general areas with pay-to-park requirements and permit parking under the Parking Manager (within the Economic Vitality Division).  The authorities relative to public parking include the establishing, changing, suspending, or removing Administrative Guidelines (procedures, protocols, and requirements not established by the adopted Comprehensive Parking Management Program), parking rates, and physical parking facilities including associated signs, markings, equipment, and other improvements.  Private parking and parking associated with municipal facilities are not included in the authority of the Parking Manager.  Notably, it will be necessary for the Parking Manager and the Traffic Engineer to coordinate their efforts as the operations of these systems are inter-related. 

The adoption of this ordinance establishes separate accounting for the income and expenses of the Comprehensive Parking Management Program and establishes expenditure limits so that the funds are used solely for parking purposes. This is how the BBB Funds are managed and limited.

Details of the financial implications are included in the pro forma from the Comprehensive Parking Management Program (attached) and thus are not duplicated here for brevity. Notably the pro forma information in the document is illustrative and it is anticipated that final numbers will differ from the illustrations.  It is anticipated that the annual revenues will exceed the expenses and that these revenues would remain in the fund balance of the parking fund until sufficient for parking construction.

If the City Council also adopts the Comprehensive Parking Management Program (Resolution 2016-1), the expenses will be included in the next City Budget through the budget process that is currently just getting started.

Addressing the parking issues enhances the economic vitality of the north Downtown and for the commercial portions of Southside. It will also enhance the property values in the surrounding residential districts. Currently, unmanaged parking is negatively impacting these properties and having an active plan and effort that leads to constructing parking will further alleviate the negative impacts.

Managing our existing parking supply will allow us to use our resources more efficiently, ultimately reducing expenditures for constructing parking. Notably, an over-supply of parking is also harmful to the economic vitality of a community. The highest benefit is achieved through parking management.

Traditionally, the cost of public parking has been borne by the general tax payers of the City. If adopted, this program would establish that users will pay for the use of public parking spaces in high parking demand areas.