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1. Parking meter revenues –
2008 budget options RECETTES DES PARCOMÈTRES – OPTIONS BUDGÉTAIRES POUR 2008 |
Committee recommendations
That City Council waive the Rules of
Procedure to revisit the 2008 approved Budget for rates, hours and areas for
on-street parking and approve the following:
1.
That the 2008 rates and hours for on-street parking be adjusted so that:
a. There is no
charge for Sunday parking in commercial areas of the City;
b.
Hours are reduced for on-street parking to 7:00 p.m.
Monday to Saturday; and
c.
The rate for on-street parking increase to
$3.25/hour beginning October 1, 2008.
2. That
staff be directed to bring forward options to address any revenue shortfall
projections in 2009 and 2010 that results from these changes as part of the 2009
Budget process.
3. That staff be directed to develop a
new city-wide, comprehensive, consolidated parking policy in conjunction with
the principles articulated in the Parking Management Strategy and the
Transportation Master Plan; and that the policy include parking needs in the
zoning by-law, a review of the financial costs to the City of storing cars on
city streets versus storing cars on private lots; and
That the
study examine on-street parking rates:
·
That vary according to geography
·
That vary according to time (time of day, day of
the week) and
That the
terms of reference for this study/review be brought to Transportation Committee
for its review and approval prior to being undertaken.
Recommandations dU ComitÉ
Que le Conseil municipal déroge aux
Règles de procédures afin de réexaminer les tarifs, les heures et les zones de
stationnement sur rue énoncés dans le Budget 2008 et qu’il approuve les
recommandations suivantes :
1.
Que les tarifs et les heures de stationnement sur rue pour l’année 2008 soient
ajustés afin que :
a.
le stationnement soit gratuit le dimanche dans les zones commerciales de
la ville;
b.
la durée autorisée de stationnement sur rue soit réduite et se termine à
19 h du lundi au samedi;
c.
le tarif du stationnement sur rue augmente et passe à 3,25 $/heure
à partir du 1er octobre 2008.
2. Que,
dans le cadre du processus budgétaire de 2009, le personnel soit chargé de
proposer des mesures pour compenser les manques à gagner prévus en 2009 et en
2010 et découlant de ces modifications;
3. Que
le personnel soit chargé d’élaborer une nouvelle politique de stationnement
exhaustive pour toute la Ville, qui soit conforme aux principes exposés dans la
stratégie de gestion du stationnement et dans le Plan directeur des transports;
et que cette politique tienne compte des besoins en stationnement associés au
règlement municipal de zonage, de l’examen des coûts qu’engendrent pour la
Ville les voitures stationnées dans la rue par rapport aux voitures garées sur
des terrains privés, et
Que l’étude comprenne l’examen de
tarifs de stationnement sur rue :
·
qui
varient selon les lieux;
·
qui
varient selon les plages horaires (heure, jour de la semaine);
Que le cadre de référence de cette
étude/analyse soit soumis à l’examen et à l’approbation du Comité des
transports avant que celle-ci ne soit entreprise.
for the information of council:
The Committee also received the staff
report and approved the following direction to staff:
That staff be directed to bring forward options to address any revenue shortfall in 2008 that results from these changes in time for the February 13th, 2008 City Council meeting.
Le Comité a également reçu le
rapport du personnel et a approuvé la directive suivante :
Que le personnel soit enjoint de
présenter à la réunion du Conseil municipal du 13 février 2008 des mesures
pour pallier les manques à gagner en 2008 qui découleront de ces changements.
Documentation
1. Deputy City Manager,
Public Works and Services report dated 30 January 2008 (ACS2008-PWS-TRF-0013).
2. Extract of Draft Minutes, 6 February 2008.
Report to/Rapport au :
Transportation Committee/Comité des
transports
30 January 2008 / le 30 janvier 2008
R.G. Hewitt, Deputy City
Manager/Directeur municipal adjoint
Public Works and Services/Services
et Travaux publics
Contact
Person/Personne ressource : Michael J. Flainek, M.Eng., P.Eng.,
Director/directeur
Traffic and Parking Operations/Circulation de
stationnement
613-580-2424 x 26882,
Michael.Flainek@ottawa.ca
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SUBJECT: |
Parking meter
revenues – 2008 budget options |
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OBJET: |
REPORT RECOMMENDATION
That Transportation
Committee receive this report for information. and request that the Committee report, and any
possible motions relating to this report, rise to Council on February 13, 2008
to allow sufficient time for the March 1st implementation date
RECOMMANDATION DU
RAPPORT
Que le Comité des
transports prenne connaissance du présent rapport.
BACKGROUND
This report is being provided as a result of a motion that was passed at the Corporate Services and Economic Development Committee (CSEDC) meeting on January 15, 2008. In the motion, staff were asked to “prepare a report on the approach being taken to the implementation of changes to on-street parking … taking into consideration the issues raised by the Business Advisory Committee, affected Business Improvement Associations and the community at large (and) to include cost/revenue implications”.
The changes to on-street parking that are referenced pertain to Reduction Options that were presented in the Operating Budget. The following changes to the City’s on-street paid parking program were adopted by Council with the approval of the budget on December 13, 2007:
· New Areas – Introduce on-street paid parking on Wellington Street, Beechwood Avenue, and Bank Street (Old Ottawa South)
The CSEDC motion,
which was subsequently approved by
Council on January 23, 2008, also
delayed the implementation date for the rate and time change from February 1st,
2008 to March 1st,
2008. The implementation of the Pay and
Display machines and the expansion into new areas await further consideration
and if approvedaland
is expected to occur in mid-2008.
DISCUSSION
The City’s pursuit of its transportation goals acknowledges the ability of parking supply and price to influence how people choose to travel. Parking not only helps achieve the City’s transit diversion objectives but also provides revenue. The management of the many facets of the City’s parking including on-street meters, permits and off-street garages/lots is the goal of the Parking program and when appropriately balanced can positively affect the residents, businesses and institutions in the community.
The current Transportation Master Plan (TMP) identifies three strategic
objectives that relate
to the parking program:
·
To
provide short-term parking that supports the vital interests of local
businesses, institutions and tourism destinations;
·
To
limit the supply of long-term parking to levels that balance the needs of
automobile users with the City’s transit ridership objectives, while minimizing
spill-over parking in residential areas; and
·
To
minimize the amount of land devoted to parking uses through shared parking
arrangements and the use of parking structures.
The City’s parking operations are also guided by the former City of Ottawa’s Parking Management Strategy, which was approved in 1994. Included in the strategy are seven guiding principles designed to provide a clear framework and direction for the administration and management of on- and off-street parking:
·
Ensure and maintain an appropriate supply of
affordable, secure, convenient and appealing public parking
·
Provide for and encourage affordable short-term
parking in support of commercial areas and activities.
·
Provide facilities that support public transit,
taxis, ride sharing, cycling and walking.
·
Resolve parking problems within residential areas
caused by significant traffic generators (commercial/ institutional/ industrial
uses), established parking regulations, or conflicting uses of the roadway
(maintenance, snow clearing and transportation versus parking).
·
Encourage and support joint residential/ commercial
parking developments in the urban core.
·
Ensure the Municipal Parking Programme is
financially self-sustaining.
· Encourage standards in the provision of public parking by the private sector in accordance with the council-approved principles of the Parking Management Strategy.
Although the options provided in the Operating Budget touch on different aspects of these documents they were presented for consideration primarily based on:
· Positively impacting transit usage; and
· Positively impacting turnover for businesses
Increasing Transit Use
A number of North American studies have identified a direct link
between parking rates and transit use.
By increasing parking rates there is a resulting incentive towards
increased transit usage. Cross-elasticity refers to the changes in demand for a good that
results from a change in price of a substitute good. In the case of parking and
transit, studies show that an increase in 10% in rates is likely to result in a
shift to transit of 1-3% of former parkers.
However, the circumstances of individual trips vary greatly. It is likely that, just as occasional users
are more sensitive to fare increases than frequent transit users, the impact of
parking rate increases on people making occasional trips would be stronger than
for those buying monthly parking spots.
Therefore, by
increasing the hourly rate, a corresponding increase in transit ridership can
be expected. Gains in transit ridership
can likewise be expected with the introduction of paid parking in new areas and
the expansion of hours in existing paid parking areas.
Increasing Turnover
Parking turnover
refers to the number of
different vehicles that use a parking space in a given period of time. The steady vehicle turnover is a major
factor to the successful operation of public parking in support of the economic
viability of commercial areas.
Low turnover can
be detrimental to businesses as it restricts the ability of potential clientele
to find convenient parking. If the
occupancy of parking spaces is continually high due to low turnover in a
specific area at a particular time, potential customers are forced to
re-circulate to find parking spaces.
The resulting perception that parking is scarce has the potential to
impact the customer’s decision to visit the commercial area in the future.
It is an accepted
standard that where high occupancy occurs, measures are taken to increase
turnover. The introduction of paid
parking is one means of accomplishing this, as is the increase in rates when
paid parking is already in effect. The
introduction of these measures was determined appropriate in selected
commercial areas as a result of a combination of various studies, parking
surveys and detailed staff observation.
There are a
number of changes that have affected the demand for on-street parking over the
years. Modifications to standard
business hours and the location of popular commercial zones have resulted in
changes to when and where people require short-term parking. Outside of periodic rate increases, the City
of Ottawa has not accounted for these changes in demand to any significant
extent. In many areas, this has
resulted in consistently high occupancy rates due to low turnover. The changes to parking rates and the
expansion in the hours and areas for paid parking, are designed to address
these changes. With respect to the new
hours and areas, only commercial zones that experience high capacity will be
affected. In order to be considered for
the implementation of paid parking in new areas or the implementation of expanded
hours in existing areas, the following criteria needed to be addressed:
· The arterial road is either within the Central Area (as identified in the Official Plan, Schedule B), or it is defined as a ‘Main Street’ (as per the Official Plan, Schedule B);
· There is a concentration of commercial use on the arterial; and
· There is a demonstrated demand for on-street parking
Also considered in the commercial area are the adjoining side streets where commercial real estate continues.
The proposed rate increase, the inclusion of
evening and weekend hours, and the expansion into new areas are designed to
apply parking management principles to help achieve our transit diversion
objectives and help business achieve higher parking turnover rates.
In addition to improving transit use and improving turnover, there were a number of further considerations that were taken into account when proposing the changes to the on-street paid parking program.
There are environmental considerations. In addition to the advantages of encouraging higher transit ridership, there are the benefits associated with increasing turnover. For example, where low turnover occurs and there is a high demand for on-street parking, it is common for drivers to circulate repeatedly (‘cruise’) in search of parking, resulting in increased CO2 emissions. One study of a 15-block business district in California concluded that ‘cruising’ resulted in 1,520,000 extra kilometres driven, 178,000 litres of fuel wasted and 730 tons of CO2 gases released in a single year.
The re-circulation of
vehicles also has the adverse effect of increasing traffic volumes and
congestion, both on the main streets and in the adjacent communities.
A Communication Plan has been prepared to effectively convey information surrounding the initial changes to the public. This will be timed to precede the initial implementation by two weeks and will include advertisements in local daily and weekly newspapers. Also part of this communications strategy will be an ‘education before enforcement’ approach in the first two weeks after the changes are implemented. During this time, tickets will not be issued for parking infractions, instead, an information flyer will be issued.
Currently, the communications plan includes the following components: a news release; newspapers advertisements; public service announcement (PSA); letter and information flyer to community stakeholders; information flyer to parkers; news release issued on first day of implementation; improved signage on meters; update to Ottawa.ca and information distributed to 3-1-1 and Client Service Centres.
CONSULTATION
The changes to the on-street paid
parking program were put forward as options in the 2008 Draft Budget, which was
tabled on November 14, 2007. After this
document was made public, the Budget process allowed for any concerned
individuals or groups to provide feedback through the Public Delegation
sessions of the Committee of the Whole, which began on December 3rd,
2007. Approximately four people
referenced the parking changes during their submission with all three indicating that they were
opposed to subsequently approved parking options.
Following approval of the Budget on December 13, 2007, affected businesses and business groups were contacted to get their feedback on the implementation and communication plans. In January 2008, all of the Business Improvement Associations (BIAs) that were to be affected by the rate change and the extension of paid parking hours were engaged and provided feedback.
Further comments were provided at a roundtable meeting that was held on January 22nd, 2008. Attending this meeting were a number of stakeholders, including Councillors, BIA representatives, business owners and church representatives. The intention of this meeting was to provide a venue for City Councillors and staff to listen to some of the issues that the various stakeholders have with the planned changes. All stakeholders in attendance expressed concern with the parking changes. It was widely felt that the changes would have a negative effect on areas where paid parking exists or will exist. It was identified that the City needs policies to support the business sector and that an updated comprehensive Parking Management Strategy is required as a component of this.
Also in attendance were representatives from various churches. It was identified through them that the parking changes would also have a negative effect on their congregations, impacting both those attending service as well as those who utilize the churches for various other functions at other times during the week.
Through the recent consultation, there have also been indications from the various stakeholders that the proposed changes should be deferred until a comprehensive parking policy can be created for the whole city. On January 8, 2008, the Business Advisory Committee passed the following motion that supports this approach:
That the
Business Advisory Committee request that City Council defer the increases in
parking hours and rates until a city wide policy can be developed in
consultation with the Business Advisory Committee, Business Improvement Areas,
the Chamber of Commerce, stakeholders
and the general public.
FINANCIAL IMPLICATIONS
The total net revenue from the
combined changes to the on-street parking program was projected at $7,494,000
per year. It was anticipated that most
of the changes could not be implemented immediately in 2008, resulting in only
a portion of the total projected revenue being applied to 2008 in the Budget
documentation. It was estimated that
$4,240,000 of the total net revenue would be realized in 2008. Table 1 illustrates the projected revenues
for each initiative option
and identifies how much was to be realized in 2008.
Table 1:
Projected Revenues From Changes to On-Street Parking
Option
|
Projected Net Revenue in 2008
Budget |
Projected Annual Net Revenue (2009 onwards) |
|
1.
|
Weekday Evenings – Until 9 p.m. from Monday to
Friday, in commercial areas
At existing rate of $2.50/hour |
$1,275,000 |
$2,205,000 |
2.
|
Weekends - From 8 a.m. to 9 p.m. on
Saturday and from 8 a.m. to 5:30 p.m. on Sunday, in commercial areas
At existing rate of $2.50/hour |
$665,000 |
$1,065,000 |
|
3. |
Pay & Display Machines
At
existing rate of $2.50/hour. Assumes
that the changes relating to Option 1: Weekday Evenings and Option 2:
Weekends are implemented |
$480,000 |
$1,725,000 |
|
4. |
Rate
Increase - To
$3.00/hour, city-wide Assumes
that Option 1: Weekday Evenings, Option 2: Weekends and Option 3: Pay &
Display machines are implemented |
$1,300,000 |
$1,300,000 |
|
5. |
New
Areas At new
rate of $3.00/hour. Assumes that
Option 1: Weekday Evenings, Option 2: Weekends and Option 3: Pay &
Display machines are implemented |
$520,000 |
$1,200,000 |
|
|
Total |
$4,240,000 |
$7,495,000 |
Friday, February 1, 2008 was the assumed
implementation date for the rate increase and the extension of hours for
evenings and weekends. The motion from the Corporate Services and Economic
Development Committee also specified that any changes wouldapproval
to be deferred
implementation until March 1, 2008 The impact of this delayis
estimated to reduces onthe
budgeted revenues in 2008 is
estimated atby $250,000.
Decisions affecting the changes to the $4.24
million in new revenues approved by Council, would also require new sources of
offsetting revenues to be identified or require an increase in property taxes
in order to compensate for the resulting reduced revenues.
DISPOSITION
Public Works &
Services will implement the changes to the on-street parking operations in
accordance with the options approved by Council.