HomeMy WebLinkAbout11-10-16 Bozeman Parking Commission Exhibit 3 - BPC Resolution 2016-04
Exhibit 3
Parking Commission Mémorandum
REPORT TO: Bozeman Parking Commission
FROM: Chuck Winn, Assistant City Manager
SUBJECT: Parking Commission Resolution 2016-04 removing the discounts for
multiple permits in the Bridger Park Parking Garage.
MEETING DATE: November 10, 2016
AGENDA ITEM TYPE: Action
RECOMMENDATION: Approve Parking Commission Resolution 2016-04 discontinuing
the discount policy for the purchase of multiple parking permits in the Bridger Park Downtown
Parking Garage.
PROPOSED MOTION: Having considered public comment and the information presented by staff, I hereby
move to adopt Parking Commission Resolution 2016-04 eliminating the discounts for multiple passes in the
Bridger Parking Garage.
BACKGROUND: On January 9, 2013, the Bozeman Parking Commission adopted Resolution PC2013-
01 setting discounts for purchasers of multiple permits in the Bridger Park Downtown Parking Garage
(Garage). The intent of the discount policy was to incentivize use of the Garage at a time when utilization was low. With the continued economic vibrancy of Downtown, the construction of two major projects (The Element and 5 West) along with the expected construction of The Etha Hotel and planned expansion
of the Lark Hotel, Garage utilization is at an historic high. Additionally, on March 19, 2014, the Parking Commission adopted a cap on lease spaces. That cap was reached earlier this year and there are no longer spaces for monthly lease in the Garage. It can be argued these two factors alone eliminate the need for
discounted rates of this type.
It is important to note that the costs to maintain the Garage have increased resulting in additional
pressure on the Parking Fund to pay for needed upgrades and repairs. Currently, Garage revenues do not cover Garage expenses. It has been a stated goal of the Parking Commission to make the operation
of the Garage a more self-sufficient operation. To that end Resolution 2013-01 contains the following provision;
Exhibit 3
• The Bozeman Parking Commission shall annually review, and adjust if deemed appropriate the current base rate and/or discount levels offered so as to ensure these rates are reflective of the cost of operating the Garage.
In addition, the 25-Year Leases for Uniform Development Code-required parking contain the following
provision:
• The Parking Commission may increase the rate without prior notice to the lessee on an annual basis in accordance with Parking Commission Policy.
Although the Parking Commission has authority to adjust the rates annually it did not adjust
lease rates for 2012, 2013 and 2016. The following chart shows the annual rates in the Garage
and the surface lots since the Garage opened:
Year Garage Upper Garage Basement Surface
2010 $35 $45 $35
2011 $40 $50 $35
2014 $45 $55 $35
2015 $50 $60 $40
2017 $60 $70 $45
ALTERNATIVES: As suggested by the Parking Commission.
FISCAL EFFECTS: Assuming current lease numbers, it is expected this change will result in
approximately $41,000 in additional annual revenue to the Parking Fund. Unintended
consequences could include some leases being terminated due to the increased cost, but we
expect any additional inventory would be absorbed by the strong market for longer term
parking in the downtown core.
Exhibit 3
Attachments:
Resolution 2016-04
Report compiled on: November 3, 2016
Original Monthly Quantity Discount Monthly Annual Rate Lost Revenue Accounts Receiving No.Total Lost
Rate Discount Amount Discounted Rate After Discount Annually/Permit Discounts Permits Revenue
General Levels
0-5 Permits 50.00 0%0.00 50.00 600.00 0.00
5-9 Permits 50.00 10%5.00 45.00 540.00 60.00
10-29 Permits 50.00 20%10.00 40.00 480.00 120.00 Lark 19 2,280.00
30-59 Permits 50.00 25%12.50 37.50 450.00 150.00 Etha 54 8,100.00
60+ Permits 50.00 30%15.00 35.00 420.00 180.00 5 West (112) & Element (60)172 30,960.00
41,340.00
Basement Level
0-5 Permits 60.00 0%0.00 60.00 720.00 0.00
5-9 Permits 60.00 10%6.00 54.00 648.00 72.00
10-29 Permits 60.00 20%12.00 48.00 576.00 144.00
30-59 Permits 60.00 25%15.00 45.00 540.00 180.00
60+ Permits 60.00 30%18.00 42.00 504.00 216.00
Garage Rates 2016
BOZEMAN PARKING COMMISSION
Exhibit 3
RESOLUTION 2016-04
A RESOLUTION OF THE PARKING COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, REPEALING THE POLICY FOR MULTI-LEASE DISCOUNTS FOR
PERMITS IN THE BRIDGER PARK DOWNTOWN PARKING GARAGE WITH AN EFFECTIVE DATE OF JANUARY 1, 2017.
WHEREAS, pursuant to city Resolution 3803, the Bozeman Parking Commission has
jurisdiction over three parking districts: the downtown B-3 Zoning District, the Montana State
University Residential Parking District, and the Bozeman High School Residential Parking District; and
WHEREAS, Sect. 7-14-4501(3), MCA, authorizes the Bozeman Parking Commission, to
charge for use of parking facilities; and
WHEREAS, Sect. 7-14-4622(6), MCA authorizes the Bozeman Parking Commission to
acquire, construct, rent, lease, maintain, and repair real and personal property used for parking
services; and
WHEREAS, the Bozeman Parking Commission adopted Resolution PC2013-01 on January 9, 2013, establishing a discount policy for purchasers of five or more parking permits in the Bridger
Park Downtown Parking Garage (Garage); and
WHEREAS, Resolution PC2013-01 provides the Parking Commission may adjust discount
parking rates offered if deemed appropriate so as to ensure parking rates are reflective of the cost of operating the Garage; and
WHEREAS, the Bozeman Parking Commission has determined that it is in the best interests of
the City of Bozeman to repeal the discount policy adopted by Resolution PC2013-01.
NOW, THEREFORE, BE IT RESOLVED that the discount policy established by Resolution
PC2013-01 is hereby repealed. No other administrative discount is affected by this Resolution
PC2016-04.
PASSED and adopted by the Parking Commission of the City of Bozeman, Montana, on first
reading at a session held on the 10th day of November, 2016. The effective date of this Resolution is
January 1, 2017. ____________________________________
Dennis Bechtold, Chair
ATTEST:
__________________________________________ THOMAS THORPE, City of Bozeman Parking Manager