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Home My WebLink About08-03-20 City Commission Packet Materials - A6. Res 5186 Residential Parking Permit Districts Fee Increase Commission Memorandum REPORT TO: Bozeman City Commission FROM: Ed Meece, Parking Program Manager SUBJECT: Increase Residential Parking District Permit Fee MEETING DATE: August 3, 2020 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve Bozeman City Commission Resolution 5186 increasing the Residential Parking Permit fee from $30 (annual) to $35 (annual). RECOMMENDED MOTION: Having reviewed the background materials provided by staff as well as public comment, and considering the recommendation of the Parking Commission to increase the residential, visitor, and employee parking permit fees from $30 (annual) to $35 (annual), I make a motion to approve Resolution #5186. BACKGROUND: The Bozeman City Commission created the Montana State University Residential Parking Permit District and the Bozeman High School Residential Parking Permit Districts. Residential Parking Permit Districts are required to enact a permit fee that provides for revenues sufficient to cover the cost of administration and enforcement (Section 36.04.350). Likewise, the Strategic Parking Management Plan (2016) accepted by the Bozeman City Commission (7-18-2016) recommends that the Bozeman Parking Commission establish a policy for annually reviewing and adjusting rates related to public parking within their jurisdiction. On March 9, 2017, the Bozeman Parking Commission adopted BPC Resolution 2017-01 establishing a policy and schedule for annual parking rate reviews. 255 On July 9, 2020, the Bozeman Parking Commission reviewed a staff analysis of revenues, as well as administration and enforcement costs, within the Residential Parking Permit Districts. As a result, the Bozeman Parking Commission adopted BPC Resolution 2020-05 recommending the City Commission increase the cost of the annual permit fee from $30 to $35. In addition, the Bozeman Parking Commission asked that, prior to the FY 22 residential permit fee analysis, staff pursue further engagement with residents of the residential parking permit districts to develop solutions to the projected lack of fiscal sustainability in these programs. FISCAL EFFECTS: The Parking Program Manger prepared a ‘system’ depiction of the revenues and expenses of the Residential Parking Districts. The $5 fee increase is projected to create an additional $8,242.50 revenue in the Parking Enterprise Fund. If approved, the $5 proposed fee increase, the Residential Parking Permit Districts will have a deficit of $46,136.35. However, the Bozeman Parking Commission, and staff, took into consideration the $85,320 in citations issued within the Residential Parking Districts (YTD-FY 20) when determining the amount of an FY 21 fee increase. Attachments: Bozeman Parking Resolution 2020-05 Residential District Permit Fee Review Report compiled on: July 15, 2019 256 COMMISSION RESOLUTION NO. 5186 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, INCREASING THE ANNUAL PERMIT FEE FOR THE MONTANA STATE UNIVERSITY AND BOZEMAN HIGH SCHOOL RESIDENTIAL PARKING PERMIT DISTRICTS FOR FY 2021. WHEREAS, utilizing Bozeman Municipal Code Section 36.04.330 Procedure for the establishment of a residential on-street parking permit regulation program the Bozeman City Commission established the Montana State University and Bozeman High School Residential Parking Permit Districts, creating Sections 36.04.360 and 36.04.365 of the Bozeman Municipal Code; and WHEREAS, Section 36.04.350 Residential Parking Permits requires that the amount of residential permit fees shall be established by resolution of the City Commission and ‘cover the costs of administration and enforcement of the residential parking permit regulations in the residential area’; and WHEREAS, the Bozeman Parking Commission has reviewed the revenues and expenses, for current and previous fiscal years, attributable to the cost of administration and enforcement of the residential parking permit regulations within the Montana State University and Bozeman High School Residential Parking Permit Districts; and 257 WHEREAS, the Bozeman Parking Commission adopted BPC Resolution 2020-05, on June 9, 2020, recommending that the Bozeman City Commission increase the annual permit fee from $30 to $35; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the annual residential parking permit fee for the Montana State University and Bozeman High School Residential Parking Permit Districts be set at $35 annually. Section 1 PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 3rd day of August, 2020. ___________________________________ Chris Mehl Mayor ATTEST: ________________________________________ Mike Maas City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 258 Exhibit 3: Bozeman Parking Commission,T /9/2O2ODBOTEMAN PARKI NG COM M ISSIONRESOLUTION 2020-05A RESOLUTION OF THE BOZEMAN PARKING COMMISSION OF THE CITY OF BOZEMAN, MONTANA,RECOMMEND¡NG A CHANGE TO THE ANNUAL FEES FOR NEW AND RENEWING PARKING PERMITSrssuED rN THE RESIDENTIAL PARKING PERMIT DISTRICTS (MSU & BHS).WHEREAS, the Bozeman City Commission created and empowered the Bozeman Parking Commissionpursuant to Resolution Numbers L676,1839, 3803, and 4577; and,WHEREAS, Montana Code Annotated 7-14-4621sets out the general powers of a parking commission;and,WHEREAS, the Bozeman Municipal Code, 36.04.350, requires that residential parking permit feerevenues pay for the cost of administering and enforcing a residential parking permit district; and,NOW THEREFORE, BE lT FURTHER RESOLVED that the Bozeman Parking Commission recommends thatthe Bozeman City Commission set the fees for residential, employee, and visitor parking permits, within theResidential Parking Permit Districts at S35 annual, and service permits within the Residential Parking PermitDistricts at 5L0 annual.PASSED AND ADOPTED by the Parkingthe City of Bozeman, Montana, at a session heldon the 9th day of July 2O2O. This resolutionimmediatelyning CommissionATTEST:Ed Meece, PProgram ManagerCity of BozemanPChai259 BOZEMAN"'Porking ServicesMEMORANDUMDate: fune t6,2020To: Bozeman Parking CommissionFrom: Ed Meece, Parking Program ManagerRe: Residential Parking Permit Districts - 2O2O/21Rate ReviewOn an annual basis, the Bozeman Parking Commission reviews the parking permitrates for the Montana State University and Bozeman High School ResidentialParking Permit Districts (BPC resolution #2077-0t). Bozeman Municipal Coderequires that the Residential Parking Permit Districts IRPPD) must support the costof administration and enforcement of the districts entirely from permit fees(36.04.350J. For thre 2O2O/2O2L RPPD permit period, the Parking ProgramManager recommends increasing the RPPD residential parking permits to $45per year; a $15 increase.Recognizing the RPPD's have historically operated at a fiscal deficit, the BozemanParking Commission has attempted to increase rates incrementally, over a period ofseveral years, to a 'break-even' point of district revenues and expenditures.However, each time the RPPD permit rate increases, the total number of permitholders declines. This situation results in fewer permit holders bearing the costs foradministration/enforcement - and the need for a higher level of permit rateincrease the following year. To date, even with annual increases, and using aconservative allocation of costs, the RPPD's have yet to faII below a $30,000 defrcit. ILcontrary to trend. the total number of RPPD permits were to hold constant in2020/2021. the actual break-even point is $57 per permit. At the current rate ofpermit non-renewal, staff projects that the RPPD's are not fiscally sustainable longterm.As part of this rate review process, a public information brochure was mailed toeach resident of the MSU and BHS residential parking permit districts as well(attached). Further details regarding analysis of the RPPD revenues/expenditures,are found in the Permit Fee Review spreadsheet.@ +oo-saz-zoo:@P.O. Box 1230Bozemon, MT 59771-123020 Eost Olive Streetwww bozemon.netTDD:40ó-582-230.lTHE MOST LIVABLE PLACE260 ilt3l2O2O Rrsidential Pemits Employee Permits Visitor Permits Total HIsTORICAI. REVENUES Acù¡al f FY T9 LAO 249 689 2278 Acual S FY 19 s33,s00.00 s5,241.00 s77,237.s0 Ss5,978.so Actr¡al S FY 18 s3!,22O.OO g,9o7.oo s22,310.00 s61.437.m Actual fl FY 18 1358 196 892 2486 Bozeman Parking Comm¡ss¡on MSU and BHS Resident¡al ParklnB Pemlt Dlnrlcts (comblned) Acual S FY 17 s1+36s.00 s2,23s.00 s10,81s.00 s27.4r5.00 Actual I FY 17 1436 223 1081 2740 REI'EI{UES fYTDI Actual Ë lsl2020l FY 20 Actual s 15lzlt?x',l FY 20 s37,4ss.00 56,072.50 s16,5s5.00 s1,010.00 961,092.s{' &tdæted FY 20 s¡s;osri.æ s78,820.7s 51r5i47r35 -ss4,378.8s AdrEln, B(¡apdlÞru PÞn¡tcd Residential Permits Employee Pemits Visitor Pèmits Seruice Totel " EXPENDITURES lBudreted & PrÈRatedl AdmlnistÉtlon Enforcement Total Surplus (Deflcitl t22A 202 551 101 2æ2 mOBud¡ctS /t8"328,76 S 46.52s.s6 S 1096 EYo s 12,080.94 4652.s6 19,917.10 24569.66 s¡2,æ0.94 s 36,680.60 oÞåEths S 199,17100 ITotal s r50t6 ¡álf,rlt pdld from ¡dmlnfstntbn, oúrsr 50t6 k p.ld frcrñ 8aãtê " FT17to FY19, r 3(tt6 Êductl6ln p3mltlsold ü¡à.+¡Ùnlà ¡u¿¡Et (Mfnua c.Þdi! d V4 oi p.rtdns cterk 25% of Enlorcement Budget (Mlnus capital) FY 21 PERM]T RATE RECOMMENDANONS Residenlial Permits Employee Perm¡ts Visltor Pemits Seruice (S10) lotãl Total Prolected Rewnue ToÞl Expendltur$ fBudseted & PreRetel $5.00 s/þ.(xt s¡t5J,0 t22A 202 551 101 2æ2 s42,980.00 57,070.00 s19,28s.00 51,010.00 549,120.00 $ s8,080.00 $ s22,040.00 s s1,010.00 s 5!r¿60¡0 9,Gþ.00 2+7S.0o 1,q!0,@ s69,33s.ür s79¿4{r.æ 3 9¡55Jæ s11s,471.3s $r$,471.3s I 111¡0E30 -16,136.3s -536,231.3s -s20,95¡1.:t0 FY 20 RPPD rate ¡ncrease to $30 estlmated the resultlng deficit at the contlnuing tr€nd of reduced number of pefm¡t holders means that an FY 21 rate increase to Srm would s¡mply hold the same deficlt; not move closer to a self-susÞln¡fE d¡str¡ct. lt has been staffs r€,ccommend small annual lncreases that move toward a break even financial posltion over an acceptable period of time: 261 300025002000Number of Permits SoldFrom 2017 to 2019, thenumber of permits soldfell by 30 percent,This continued decline inpermits sold meansadministrative andenforcement costs are notcovered byfees, asrequired by Bozemanmunicipal code, averaginga yearly deficit of $30,000since Fiscal Year 2017.500150010000TY L7 FY 18 FY 19 FY 20 TYZL TY22The solid line is the actual number of permits sold and the dotted line is theprojected, continued decline of permits sold in the RPPD.On July 9th, the Parking Commission will consider staffs recommendationand resident input to make their recommendation to the City Commission.You can make a comment by calling 406-582-2903 or emailing theParking Program Manager at emeece@bozeman.netThe breakeven point for the program is$57 per annual permit (an increase of$27 from current permit price) ¡f thenumber of permits sold remainsconstant.lf permit sales continue to fall, theprogram will never balance despitecontinued price increases.The next Bozeman Parking Commissionmeeting to discuss theirrecommendation to the CityCommission isJuly 9th at 7:30 AM.You may attend the meeting via video conferencing software, CiscoWebex. The webex link will be on the city website athttp://webl i n k. bozem a n. n et/Web Li n k8/0/d ocl21 41 40/E I ectro n i c. a s pxBOZEMAN''Porking 5ervices262 ozemanThe MSU Residential Parking Permit District (RPPD) in Bozeman was createdin 1994 to reduce parking congestion and provide adequate parking forresidents of the RPPD. The Bozeman Municipal Code requires permit feesto pay for administration of and enforcement in tlre RPPD.ln accordance with municipal code 36.04.350,staff plans to recommend a $15 priceincrease to tl-le Par-king Commission for a totalannLral permit cost of $45. An increase to $45is tlre next step to achìeving balance in theprogram between r-evenue and ex¡tet'ìses.Bozeman City Code36.04.350The anrount of the fees shall beestabl¡sl'ìed by resolutic)n at lhelevel that covers the cost ofadministration and enforcement ofthe residenti.rl parking pernritregulations in the residerrtial area.trttllilil¡,1,¡lrt¡¡t,¡tl¡riltrtill¡ltt,,ililthilhrlhhhllhr00¿0-91.¿69 IUI'ueuazogê^v r{19 s 9t0tlueplsau luêJJncuDUezogsr¡qduguqd¡yctvdâ8r¡sod 'S nolsl)tsudìeu UDUð2oq ÀlMÄlotzl-l L L6s lyl'uouôzo8otzt xo8 0¿sa)r^roS 6ur¡ro¿TT,^NVþ{ =ZO8263