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HomeMy WebLinkAboutExh3BPCResolution201703andMEMO Page 1 of 2 Bozeman Parking Commission REPORT TO: Bozeman Parking Commission FROM: Ed Meece, Parking Program Manager SUBJECT: Affirmation and Funding of the Long Term Maintenance Fund MEETING DATE: July 13, 2017 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve Resolution 2017-03 affirming the purpose of the Parking Services Division's `Long Term Maintenance Reserve' and establishing a procedure for annual transfer of funds from the Parking Services Division's `Operating Reserve'. BACKGROUND: The Parking Services Division has had a`Long Term Maintenance Reserve' (LTMR) for several years. The purpose of the LTMR is to set aside funding, on a regular and planned basis, so as to support the cost of necessary capital improvement projects in a timely manner. However, previous imbalance between revenues and expenditures did not leave the operational reserve sufficient reserves for annual transfers to the LTMR. A best practice for parking related business units(and most enterprise fund activities)is to transfer between 3-7% of Gross Parking Revenues] annually, to fund capital improvements necessary within the parking operation. This practice is discussed and recommended in the City of Bozeman's Strategic Parking Management Plan 2016(Strategy#5). Currently, the Parking Services Reserve (Operational) has an FY 17/June Ending Balance (working capital reserve) of$517,725.00 (not counting the FY 17 year end transfer of$250,000 in restricted funds from the Tax Increment Finance District); or 75% of budgeted annual expenditures. Based on this information, the PPM is comfortable recommending that the Parking Services Division implement a system for regularly transferring dollars from the Operating Reserve to the Long Term Maintenance Reserve. Therefore, the Parking Program Manager is proposing a set of guidelines which will establish an annual transfer procedure from the Operations Reserve to the Long Term Maintenance Reserve. Gross Parking Revenues are defined as total fund revenues, including Citation and Miscellaneous. Page 2 of 2 Within these procedures is a `tripwire' that would prevent this transfer if such an action would drop the Operations Reserve below a floor of 25% Ending Balance (working capital reserve). In this event, the Parking Commission would deliberate as whether to modify the annual transfer amount, or perhaps even skip the annual transfer altogether. Following approval of Resolution 2017-03, during FY 18, the Parking Program Manager will develop a comprehensive Parking Facilities Capital Plan for the purpose of scheduling anticipated capital improvement projects (by Fiscal Year), and projecting the capability of current/future revenue streams to support the cost of such projects. The PPM will present the Parking Facilities Capital Plan to the Parking Commission for review and approval, as well. FISCAL EFFECTS: For FY 17, the estimated amount of transfer from the Parking Services Division Operating Reserve, to Parking Services Division Long Term Maintenance Reserve, is $$30,659.00. Following the transfer, the FY 17 Ending Balance is estimated to be $487,725.00. A definitive statement of the actual transfer amount will be available by the September 2017 regular meeting of the Bozeman Parking Commission. Attachments:Resolution 2017-03: "A RESOLUTION AFFIRMING THE PURPOSE OF THE LONGTERM MAINTENANCE FUND AND APPROVING ANNUAL FUNDING TRANSFER FROM PARKING SERVICES FUND (OPERATING)EQUAL TO 5%OF GROSS PARKING REVENUES". BOZEMAN PARKING COMMISSION RESOLUTION 2017-03 A RESOLUTION OF THE PARKING COMMISSION OF THE CITY OF BOZEMAN, MONTANA,AFFIRMING THE ROLE OF THE LONG TERM MAINTENANCE RESERVE TO PLAN, FUND, AND IMPLEMENT THE INSTALATION, MAINTENANCE, AND REPLACMENT OF INFRASTRUCTURE, EQUIPMENT, AND TECHNOLOGY NECESSARY FOR EFFECTIVE OPERATION OF THE MUNICIPAL PARKING SYSTEM AND ESTABLISHING PROCEDURES FOR AN ANNUAL TRANSFER OF FUNDS FROM THE PARKING OPERATING FUND RESERVE TO THE LONG TERM MAINTENANCE RESERVE FOR THIS PURPOSE. WHEREAS, pursuant to Bozeman City Commission Resolution #3803,the Bozeman Parking Commission has jurisdiction over the B-3 zoning district, and any residential parking permit districts created by the Bozeman City Commission; and, WHEREAS, the Bozeman Parking Commission has established policy guidelines that specify "invest any Parking Enterprise Fund profits into three fiscal reserves: Parking Operating Reserve, Parking Capital Reserve, and Bridger Park Downtown Long Term Maintenance Reserve Funds"; and, WHEREAS, previously, the one-time proceeds from the sale of a condominium space in the Bridger Park Downtown Garage and an on-going annual allocation of interest proceeds from the Downtown Tax Increment Finance District were (are) deposited into the Long Term Maintenance Reserve with the knowledge and acceptance of the Parking Services Division; and, WHEREAS, parking industry best practices and the City of Bozeman Strategic Parking Management Plan 2016 (Strategy #5) both recommend the allocation of 3-7% of annual Gross Parking Revenues to a capital maintenance reserve; and WHEREAS,the Bozeman Parking Commission and Parking Services Division desire that such an allocation become a routine business practice for the proper funding of necessary capital projects within the municipal parking system; and, WHEREAS, the Bozeman Parking Commission and Parking Services Division will implement a five year capital maintenance plan for the purpose of directing annual expenditures from the Parking Long Term Maintenance Reserve, prior to June 30, 2018, and before any expenditures from the Long Term Maintenance Reserve for this purpose; NOW THEREFORE, BE IT RESOLVED that the Bozeman Parking Commission establishes the following procedures for an annual transfer from the Parking Operations Reserve to the Parking Long Term Maintenance Reserve: 1. The transfer shall be conducted by the City of Bozeman Finance Department as part of their annual Fiscal Year End closing procedures, with notice to the Bozeman Parking Commission of the final amount of transfer and the resulting Ending Balance of the Parking Operating Reserve and Long Term Maintenance Reserve by September 15t of each year. 2. The amount of the transfer shall be equal to 5% of the actual Gross Parking Revenues for the most recently completed fiscal year. Gross Parking Revenues does not include any funds transferred from the Downtown Tax Increment Finance District for capital expenditures. 3. The transfer shall not be executed in any year where the amount calculated for transfer would leave the Parking Operating Fund with less than 25% Ending Fund Balance (working capital) as compared to the total actual expenditures for the completed fiscal year (excluding any transfer of funds from the Downtown Tax Increment Financing District). 4. The Long Term Maintenance Reserve shall be utilized for parking system-wide capital project funding and implementation, combining the previously stated, but not established, Parking Capital Reserve and Bridger Park Downtown Long Term Maintenance Reserve into this single account in the Parking Fund.. PASSED AND ADOPTED by the Parking Commission of the City of Bozeman, Montana, on first reading, at a session held on the thirteenth day of July 2017. This resolution shall become effective immediately. Chris Naumann, Chair ATTEST: Ed Meece, Parking Program Manager, City of Bozeman Bozeman Parking Commission Policy Guidelines Mission Statement The Bozeman Parking Commission is responsible for managing and regulating public parking in its districts, and will provide a customer-oriented and user-friendly parking system for businesses, residents, employees and visitors. Goals • Improve and maintain public parking assets • Provide for the safe movement of vehicle and pedestrian traffic • Make the parking system fiscally sound and self-sufficient • Manage spaces to best serve the needs of customers • Provide consistent treatment regarding parking enforcement action • Educate parking users to minimize parking conflicts • Make parking areas attractive and easy to use • Plan for and respond to changing needs in the districts • Consider alternative modes of transportation that reduce parking demand • Work cooperatively with local partners • Seek to acquire additional public parking as needed Policy Guidelines Community Transparency The Bozeman Parking Commission will conduct the business of managing parking in a publically transparent way. • Monthly BPC meetings are open to the public and properly noticed pursuant to Montana Code Annotated. • All BPC meeting minutes are publically archived at: http://weblink bozeman.netNVebLink8/0/fol/37627/Rowl.aspx Fiscal Responsibility The Bozeman Parking Commission will operate in a fiscally responsible manner while effectively managing resources and implementing parking regulations. • The BPC will consciously control operating costs without sacrificing other guidelines and policies. • The BPC will consciously manage revenues without sacrificing other guidelines and policies. • It is the intent of the BPC to invest any Parking Enterprise Fund profits into three fiscal reserves: Parking Capital Reserve, Parking Operating Reserve, and Bridger Park Downtown Long-term Maintenance Reserve. Resource Management The Bozeman Parking Commission will professionally manage the public parking resources entrusted to it by the City of Bozeman. • The BPC will develop and manage a customer oriented and user friendly parking system. • The BPC will manage public on-street, surface lot, and structure parking resources for the benefit of residents, visitors, employees, and businesses. • The BPC will conduct and revise a Downtown Parking Study on a regular basis in order to utilize current empirical data in its decision making process. Effective Enforcement The Bozeman Parking Commission will strive to ensure there is sufficient short-term parking available by employing effective enforcement in the three districts it oversees. • The existence of Bridger Park Downtown for long-term parking needs makes compliance with parking regulations easier. • The BPC will deter illegal parking with a timely, consistent, and fair enforcement presence. • The BPC will continually work to develop customer friendly enforcement practices and policies. Economic Development The Bozeman Parking Commission supports projects that bring vitality and energy to its parking districts. • The BPC recognizes that economic development and parking are inextricably linked, especially in the downtown district. • The BPC will consider supporting projects that constitute a significant economic benefit for the downtown area while being consistent with the guidelines of the Bozeman Community Plan; the Downtown Improvement Plan; and the mission, goals, and policy guidelines established herein. Regulatory Oversight The Bozeman Parking Commission will dutifully exercise regulatory oversight of parking inventories, parking regulations, commercial parking requirements, and special parking districts. • The BPC will develop regulations for the public surface parking lots and Bridger Park Downtown in keeping with national and state industry standards. • The BPC will advise the City Commission on parking regulations as they relate to on- street parking rules and violations; parking requirements for changes-in-use, development, and redevelopment; and the Montana State University and Bozeman High School residential parking districts. • The BPC will continue to manage the Cash-in-Lieu-of-Parking policy for the downtown district to reflect current parking demand and market rates. Adopted February 9, 2011