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HomeMy WebLinkAbout01-26-22 Transportation Board Agenda & Packet MaterialsA.Call to Order - 6:00 PM Via Webex: https://cityofbozeman.webex.com/cityofbozeman/onstage/g.php? MTID=ee927808778a19242e187f41f784d4539 Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting Via Phone: This is for listening only if you cannot watch the stream or channel 190 • Call-in toll number (US/Canada): 1-650-479-3208 • Access code: 2558 654 7382 Public Comment: If you are interested in commenting in writing on items on the agenda, please send an email to agenda@bozeman.net prior to 4:00pm on the Monday before to the meeting. You may also comment by visiting the City's public comment page. You can also comment by joining the WebEx meeting. If you do join the WebEx meeting, we ask you please be patient in helping us work through this online meeting. 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B.Disclosures C.Changes to the Agenda D.Approval of Minutes D.1 December 22, 2021 Meeting Minutes (Veselik ) E.Public Comments F.FYI/Discussion THE TRANSPORTATION BOARD OF BOZEMAN, MONTANA TB AGENDA Wednesday, January 26, 2022 1 F.1 Downtown Parking Supply and Demand Management Work Session (Mihelich/Veselik) F.2 Work Plan for Transportation Advisory Board 2022-2023 (Mihelich/Lonsdale/Veselik) G.Adjournment For more information please contact the City Clerk's Office, agenda@bozeman.net General information about the Transportation Board can be found in our Laserfiche repository. This board generally meets the fourth Wednesday of the month from 6:00 pm to 8:00 pm. Citizen Advisory Board meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 406-582-3232 (TDD 406-582- 2301). 2 Memorandum REPORT TO:Transportation Board FROM:Mike Veselik, Economic Development Parking Program Manager SUBJECT:December 22, 2021 Meeting Minutes MEETING DATE:January 26, 2022 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Approve December 22. 2021 minutes. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:In accordance with Commission Resolution 5323 and the City of Bozeman's Citizen Advisory Board Manual, all boards must have minutes taken and approved. Prepared minutes will be provided for approval by the board at the next regularly scheduled meeting. Staff will make any corrections identified to the minutes before submitting to the City Clerk's Office. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the Transportation Board. FISCAL EFFECTS:None. Attachments: 122221 DRAFT Transportation Board Minutes.docx Report compiled on: January 19, 2022 3 Bozeman City Commission Meeting Minutes, December 22, 2021 Page 1 of 1 THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA MINUTES December 22, 2021 Present: Kelly Pohl, Paul Reichert, Deejay Newell, Courtney Oyler, Bryce Gordon, Christine Roberts, Shannon Mahoney Absent: None A)00:00:42 Call to Order -6:00 PM Chair Pohl indicated how to give public comment and join the meeting B)00:02:56 Introductions Commissioners and Staff introduced themselves C)00:11:21 Public Comments Chair Pohl explained public comment D)00:17:20 FYI/Discussion D.1 00:17:22 Discussion on Advisory Board Norms City Manager Mihelich presented on the advisory board norms D.2 00:36:09 Review of High Performing Boards Manual Deputy Clerk DiTommaso presented on the High Performing Boards Resolution and Citizen Advisory Board Manual D.3 00:55:06 City Ethics On-boarding Training City Attorney Giuttari facilitated the City Ethics Board Training D.4 01:36:38 Role of Advisory Board City Manager Mihelich reviewed the Purpose and Role of the Transportation Board E)01:49:22 Adjournment For more information please contact the City Clerks' Office, agenda@bozeman.net 4 Memorandum REPORT TO:Transportation Board FROM:Veselik SUBJECT:Downtown Parking Supply and Demand Management Work Session MEETING DATE:January 26, 2022 AGENDA ITEM TYPE:Policy Discussion RECOMMENDATION:Provide a recommendation to the City Commission on whether or not to pursue paid parking as a demand management strategy to fund future supply. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND:Based on an occupancy study conducted in August 2021, the City's Parking Services division is offering new alternatives for how to manage parking supply and demand in downtown Bozeman. More detail can be found in the attached memo. UNRESOLVED ISSUES:No Unresolved ALTERNATIVES:Alternatives as proposed FISCAL EFFECTS:There are upfront capital costs to any decisions. However, revenue generated from demand management strategies could cover these costs. Attachments: Pro Forma Report--City Of Bozeman--On-Street Parking.pdf Transportation Advisory Board Memo--Parking Work Session Jan 26 FINAL.doc Report compiled on: January 21, 2022 5 January 13, 2022 Mike Veselik Economic Development Program Manager, Parking City of Bozeman 121 N. Rouse Avenue Bozeman, MT 59715 Re: Downtown Bozeman Preliminary Parking Proforma 23-008542.00 Dear Mr. Veselik: Walker Consultants is pleased to submit the enclosed report presenting the preliminary potential parking revenue, operating expenses, and net earnings associated with managing and operating a paid public parking system within the proposed Downtown Core of Bozeman, Montana. In the enclosed report, we project the preliminary potential annual parking demand for the public portion of the Downtown Core parking system. The projections rely on information compiled from field observations completed in August 2021, calibrating the anticipated seasonality of those demands to historical lodging and enplanement data provided by the City of Bozeman. We appreciate the opportunity to be of service to you on this project. If you have any questions or comments, please do not hesitate to call. Sincerely, WALKER CONSULTANTS Christina Jones, MBA, CAPP Andrew Vidor Consultant Director of Studies 10375 Park Meadows Drive, Suite 425 Lone Tree, CO 80124 303.694.6622 walkerconsultants.com 6 Project # City of Bozeman Preliminary Parking Proforma January 20, 2021 Prepared for: City of Bozeman 7 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 Contents Executive Summary 1 Project Background 5 Proposed Area 5 Parking Demand 6 Preliminary Proforma Assumptions 9 Revenue Assumptions 9 Future Parking Demands 9 Meter Violations & Citations 10 Parking Permits 10 Other Revenue Assumptions 11 Expense Assumptions 11 Debt Service Assumptions 25 Parking Access and Revenue Controls 13 Preliminary Proforma Results 15 Scenario 1. Cost Recovery 15 Scenario 2. Cost Recovery Plus 17 Scenario 3. Market Rates 19 On-Street Parking Rates 19 Off-Street Parking Rates 20 Parking Revenue Allocation Options 24 Appendices 27 Limiting Conditions 27 Walker Consultants 29 Revenue Methodology Summary 30 Operations and Maintenance Detailed Projections 31 8 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 1 Executive Summary Identified in the 2021 Study, the Downtown public parking supply consistently reaches and, in many areas, exceeds 85% occupied during much of the typical day, both during the week and on weekends. High, unbalanced utilization of public parking supplies may limit access to the area for residents, employees, and visitors, but it also limits further economic development potential. The City is exploring paid parking to manage parking demands, fund the existing operations and maintenance of the public parking system, and provide a funding source for future investment in additional parking and transportation demand management strategies. Implementation of paid parking can also reduce potential subsidizing of Downtown parking management with citywide property tax revenue from the General Fund. Instead, having those that use and benefit from it directly provide for its financial burden. This report presents the preliminary modeling completed to explore potential revenue generated by paid public parking within the Downtown Core under several rate scenarios. The scenarios included in the analysis are intended to identify rates that manage parking demands, provide for the ongoing operations and maintenance of the public parking system within the District, fund additional parking, and potentially support investment in transportation demand management strategies and Downtown access and mobility initiatives. Rate scenarios are summarized in Figure E1 with a graphical representation of their resulting potential net revenue and total expenses. Figure E2, on the following page, summarizes the projections per scenario in more detail. In each scenario, seasonal paid parking (collected May through September) was assumed to reduce potential impacts to residents and businesses and their employees. Parking fees charged year-round could substantially increase potential revenues or reduce the rates necessary to achieve cost recovery. For example. Cost Recovery Plus rates could decrease from $1.75 to $1.00 per hour on-street with off-street parking reduced from 1.00 to $0.50 per hour if parking fees are charged year-round and the model still projects enough potential revenue to cover debt service on a new parking structure and provide funding for reinvestment in the community. The potential net operating income is presented for the overall system and broken down to show the net income associated with the on-street and surface lots separate from the net income associated with the Bridger Garage. When built in 2009, the garage was funded by a combination of federal funding and a TIF bond. A requirement of the federal funding specifies that any revenue generated by the garage that exceeds its operations and maintenance must be used to fund transit. This means only net income generated by the on-street and surface lot spaces can be used to fund debt service on future parking supplies or for reinvestment other than transit. Figure E1. Hourly Parking Rate Scenarios Evaluated and Resulting Net Revenue and Expense Projections LOCATION COST RECOVERY COST RECOVERY PLUS MARKET RATES Peak* Off-Peak Peak* Off-Peak Peak* Off-Peak On-Street $ 0.75 Free $1.75 Free $ 1.50 Free Wilson Lots $ 0.50 Free $ 1.00 Free $ 1.00 Free Black Lot $ 0.50 Free $ 1.00 Free $ 1.00 Free Rouse Lot $ 0.50 Free $ 1.00 Free $ 1.00 Free Bridger Park Garage $ 0.50 Free $ 1.00 Free $ 1.00 Free *Peak months identified as May through September $0 $500,000 $1,000,000 $1,500,000 $2,000,000 Cost Recovery Cost Recovery Plus Market Rates Garage Net Revenue On-street & Surface Lots Net Revenue Operations, Maintenance, and Capital Funding 9 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 2 Figure E2. Potential Net Income per Scenario, Year 1 COST RECOVERY COST RECOVERY PLUS MARKET RATES Revenue Transient Revenue Permit Revenue Citation Revenue $ 607,800 $ 609,600 $ 27,900 $ 1,345,900 $ 609,600 $ 27,900 $ 1,215,500 $ 609,600 $ 27,900 Total Annual Revenue $ 1,245,300 $ 1,983,400 $ 1,853,000 Credit Card Fees $34,400 $55,600 $ 51,800 Net Revenue $ 1,210,900 $ 1,927,800 $ 1,801,200 Operating Expenses Labor Utilities Insurance Supplies Routine Maintenance License Fees & Permits Contracted Services $ 207,100 $ 42,100 $ 9,600 $ 21,400 $ 43,600 $ 840 $ 112,800 $ 207,100 $ 42,100 $ 9,600 $ 21,400 $ 43,600 $ 840 $ 112,800 $ 207,100 $ 42,100 $ 9,600 $ 21,400 $ 43,600 $ 840 $ 112,800 Total Operating Expenses $ 437,440 $ 437,440 $ 437,440 Net Operating Income (Loss) $ 773,460 $ 1,490,360 $ 1,363,760 Capital Reserve Funds $ 310,800 $ 310,800 $ 310,800 Year 1 Net Operating Income (Loss) after Capital Reserve Funds and Debt Service (Peak Only) System On-Street & Lots Garage $ 462,600 $ 178,000 $ 284,660 $ 1,179,560 $ 798,400 $ 381,160 $ 1,052,960 $ 671,800 $ 381,160 Year 1 Net Operating Income (Loss) after Capital Reserve Funds and Debt Service (Year-Round) System On-Street & Lots Garage $ 1,043,360 $ 663,500 $ 379,860 $ 2,465,860 $ 1,894,600 $ 571,260 $ 1,572,360 $ 1,001,100 $ 571,260 10 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 3 Figure E3. Potential Net Income per Scenario, Year 1 with Debt Service for New Garage COST RECOVERY COST RECOVERY PLUS MARKET RATES Revenue Transient Revenue Permit Revenue Citation Revenue $ 607,800 $ 609,600 $ 27,900 $ 1,345,900 $ 609,600 $ 27,900 $ 1,215,500 $ 609,600 $ 27,900 Total Annual Revenue $ 1,245,300 $ 1,983,400 $ 1,853,000 Credit Card Fees $34,400 $55,600 $ 51,800 Net Revenue $ 1,210,900 $ 1,927,800 $ 1,801,200 Operating Expenses Labor Utilities Insurance Supplies Routine Maintenance License Fees & Permits Contracted Services $ 207,100 $ 42,100 $ 9,600 $ 21,400 $ 43,600 $ 840 $ 112,800 $ 207,100 $ 42,100 $ 9,600 $ 21,400 $ 43,600 $ 840 $ 112,800 $ 207,100 $ 42,100 $ 9,600 $ 21,400 $ 43,600 $ 840 $ 112,800 Total Operating Expenses $ 437,440 $ 437,440 $ 437,440 Net Operating Income (Loss) $ 773,460 $ 1,490,360 $ 1,363,760 Capital Reserve Funds $ 310,800 $ 310,800 $ 310,800 Debt Service for Garage $ 642,500 $ 642,500 $ 642,500 Year 1 Net Operating Income (Loss) after Capital Reserve Funds and Debt Service (Peak Only) System On-Street & Lots Garage ($ 179,840) ($ 464,500) $ 284,660 $ 537,060 $ 155,900 $ 381,160 $ 410,460 $ 29,300 $ 381,160 Year 1 Net Operating Income (Loss) after Capital Reserve Funds and Debt Service (Year-Round) System On-Street & Lots Garage $ 400,860 $ 21,000 $ 379,860 $ 1,823,360 $ 1,252,100 $ 571,260 $ 929,860 $ 358,600 $ 571,260 The Seasonal Cost Recovery scenario is not projected to generate a net operating income sufficient to cover the debt service payment of a new parking structure. 11 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 4 Project Background 01 12 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 5 Project Background As discussed in the September 2021 Downtown Bozeman Parking Study, the downtown public parking system has been a part of several plans and studies over the past decade. A consistent theme of these plans is the high utilization of parking within the Downtown Core Area and the "85% Rule" outlined in the area's Strategic Parking Management Plan. This principle states, "when the parking supply is routinely occupied at 85% or greater during peak periods, more intensive and aggressive management strategies are called for to assist priority customers in finding available parking." Discussed further in the 2021 Study, when considered on its own, this "rule" fails to account for other factors that can and will have a significant impact on the parking system's operations and customer experience; factors such as traffic congestion, duration of stay and turnover, and enforcement practices, among others. The Downtown public parking supply consistently reaches and, in many areas, exceeds 85% occupied during much of the typical day, both during the week and on weekends, as identified in the September 2021 Study. High utilization and unbalanced demand can limit access to the area for residents, employees, and visitors and further economic development potential. The City is exploring paid parking to manage parking demands, fund existing operations and maintenance of the public parking system, and fund future investment in additional parking and transportation demand management strategies. Paid parking can also reduce potential subsidizing of Downtown parking management with citywide property tax revenue from the General Fund. Instead, having those that use and benefit from it directly provide for its financial burden. This report presents the preliminary modeling completed to explore potential revenue generated by paid public parking within the Downtown Core under several rate scenarios. The scenarios included in the analysis are intended to identify rates that manage parking demands, provide for the ongoing operations and maintenance of the public parking system within the District, fund additional parking, and potentially provide funding for reinvestment in the community. Proposed Paid Parking Area Using the results of the 2021 Study, the Downtown Core has been identified for consideration of paid parking in this preliminary revenue modeling effort. As shown in Figure 1, this area comprises 704 on-street spaces, 177 spaces located in four surface lots, and 435 spaces located in the Bridger Garage. 13 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 6 Figure 1. Downtown Core Parking Demand Based on the August 2021 field observations, there is potential to expand the paid area one block north and south of the Downtown core to include Lamme Street and Olive Street. However, an expansion of this nature would necessitate the implementation of a residential parking permit zone to ensure residents in these areas are not negatively impacted by additional parking fees. Because field collections occurred during typical peak conditions may not reflect the true year-round impacts of downtown parking on these transition areas. These corridors should be closely monitored for increases in parking demands and potential spillover of downtown parkers looking to avoid fees. Initially, this may be discouraged by using time limits and residential parking permits, as necessary. Table 1 summarizes the observed parking utilization within the B-3 District collected in August 2021 for each weekday and weekend afternoon observation, which are shown in Figure 2 and Figure 3, respectively. Table 1. Parking Utilization, August 2021 LOCATION INVENTORY WEEKDAY OCCUPANCY WEEKEND OCCUPANCY On-Street, Core Area 704 86% 77% Wilson Lots 69 100% 99% Black Lot 62 98% 100% Rouse Lot 46 85% 87% Bridger Park Garage 435 81% 59% TOTAL 1,346 85% 73% 14 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 7 Figure 2. Parking Utilization, August 2021 Weekday Afternoon Figure 3. Parking Utilization, August 2021 Saturday Afternoon 15 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 8 Preliminary Proforma Assumptions 02 16 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 9 Preliminary Proforma Assumptions In projecting the potential revenue associated with the public parking system within the Downtown Core, the analysis relies on several assumptions discussed in this section. As used in this report, an "assumption" is an axiom or proposition included in an analysis to project future performance or events. It is not a guarantee of performance or representation of a fact that will eventually exist or be attained or reached. Because of the assumptions' inherent uncertainty and probable variation, actual results will vary from estimated or projected results, and such variations may be material. Additionally, unforeseen and changed laws, technologies, events, or circumstances may occur after this engagement and completion of services, rendering this document obsolete. Revenue Assumptions Future Parking Demands Based on the field data collection, Walker projected the monthly parking transaction volumes using observed parking demands for a typical August weekday and Saturday, and historical bed tax and enplanement data provided by the City. With both metrics demonstrating a strong correlation with visitor behaviors and consistently trending, monthly factors were created based on the six-year average reflecting 2016 through November 2021, not including March through May 2020. To confirm potential impacts of pandemic behaviors did not disproportionately skew the results, the three-year average of 2019 to 2021 was compared to these monthly factors and their projected trends through 2021. Table 2 summarizes the resulting monthly factors used in the transient parking volumes in calculating potential revenues. As shown here, July is anticipated to be the peak parking demand month. Table 2. Monthly Factors Applied to Transient Parking Volumes to Reflect Seasonal Parking Demand Fluctuations OFF – PEAK PEAK OFF - PEAK JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 62% 63% 70% 49% 57% 85% 100% 98% 76% 62% 47% 60% Mountain towns and communities acting as gateways to national parks and areas popular for outdoor recreation often experience a seasonal influx of visitors. Due to snow removal requirements in the winter that may add restrictions to on-street parking and encourage the use off-street facilities, it is more common for these communities to rely on seasonal paid parking fee increases during peak visitor months to support the financial needs of the parking system. Seasonal paid parking can also help decrease the impact of visitor parking on residents and area businesses and their employees. For example, the Town of Estes Park provides free and time limited parking in the winter, with parking fees charged throughout their peak summer season. The City of Manitou Springs reduces their initial free period from 3 hours once per day in their off-season to 15 minutes once per day during their peak season. As we considered the impacts and potential revenue generation of the Downtown Bozeman public parking system, seasonal paid parking was modeling to reduce impacts to residents and employees. 17 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 10 In addition to seasonal fluctuations in parking demands, the model anticipates a 10% reduction in volume due to price elasticity. Originally published in 2004 and updated in November 2021, the Victoria Transport Policy Institute's Transit Price Elasticities and Cross-Elasticities notes a change from free to priced parking typically reduces drive-alone commuting by 10-30%. The greatest reduction is generally achieved if pricing is implemented with improvements in transit service and rideshare programs or other TDM strategies1. Of the vehicles anticipated to be lost due to the implementation of paid parking, it is assumed that 25% will want to convert to permits, and 75% will be lost to other modes of access and travel such as carpooling, rideshare, walking, or choosing alternative destinations. Meter Violations & Citations The revenue model also accounts for parkers who choose not to pay for their parking with variables for reductions to paid transactions due to violations and roll these violations through to potential citation revenue. Along these lines, it is assumed that 85% of parking sessions will comply and result in a transient revenue- generating transaction. Of those not captured, it is assumed that 75% of violations will be cited, and of those, 75% will be collected. For this effort, meter violations are set at $35, and no other potential citation revenue is included. Parking Permits Typical parking permit volumes and existing availability per facility have been provided by the City and incorporated into the model. The City's feedback shows that permit sales are consistent throughout the year, with several facilities often experiencing a waitlist. No monthly adjustment factors have been applied to these volumes based on the reported consistency of permit sales. Increases result from the transient parking assumptions and the inability of employees working the Downtown Core to move their vehicles to evade parking time limits. Permits are capped at the availability provided by the City. Table 3 summarizes the existing permit sales per facility, availability, and projected additional demand based on the previously outlined transient parking assumptions. As noted here, there is a projected unmet demand for parking permits that reflects the need for additional public parking supplies both now and in the future to support the continued economic development of the area and the considerable growth in both population and visitors in recent years. Table 3. Parking Permits per Facility LOCATION EXISTING PERMITS EXISTING AVAILABILITY CONVERTED TRANSIENT DEMAND On-Street, Core Area 0 0 28 Surface Lots 77 1 21 Bridger Park Garage 456 57 15 TOTAL 533 58 64 1 https://www.vtpi.org/tranelas.pdf 18 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 11 Other Revenue Assumptions Aside from parking demands, the field observations collected in August 2021 provided the average duration of stay for vehicles. To account for the ability to pay to stay, vehicles observed to move between concurrent collection periods were treated as one length of stay. For example, an observed vehicle parked at one location for 1 hour and 45 minutes and then moved to another location and was parked for 1 hour and 15 minutes was treated as a single 3-hour transaction for this analysis. Vehicles that left the study area and returned continued to be treated as separate lengths of stay. Credit cards are anticipated to account for approximately 95% of transient and permit transactions with a 3% transaction fee. Credit card fees are treated as a revenue reduction rather than an expense. Additionally, while typically treated similarly, no sales tax is accounted for in the modeling. While nine federal holidays are assumed in the model, parking is anticipated to be paid seven days per week, with Sunday experiencing approximately 80% of the parking volume observed for Saturday. Expense Assumptions Annual operating expense projections for the public parking system within the Downtown Core were developed using Walker's database of historical parking facility operating expenses and existing budget data previously provided by the City. The projected operating expenses assume the parking system will be managed and operated based on existing practices and through expansion of staff, as further detailed below. The projected labor costs shown in the model are based upon estimated staffing schedules developed by Walker using assumptions provided by the City. In contrast, all other expenses are projected on a cost-per-space basis. A brief description of the line-item categories included in the model follows below: • Salaries, Benefits & Workers' Compensation: The staffing plan, positions, and wage structure projected are projected to provide for the following positions: • Manager: 1.0 FTE, $40.06 per hour, 27.5% taxes and benefits. • Customer Service and Parking Enforcement: 2.0 FTE, $19.23 per hour, 26.0% taxes and benefits. • Maintenance Engineer: 1.0 FTE, $25.19 per hour, 26.0% taxes and benefits. • Utilities: Assumes the projected cost of electricity, water, and telephone services. • $0.0979 per kWh, based on the current average commercial rate for Bozeman, MT. • $64.63 annual lighting cost per off-street space. • Insurance: Includes the cost of general liability, garage keeper's legal liability, crime, umbrella, and auto insurance coverages; the cost of property insurance coverage is excluded from the model. • Assumed at $15 per off-street space. • Supplies: Includes the projected cost of garage and office supplies, parking tickets, forms, postage, replacement keycards for contract parking, lamps, bulbs, and employee uniforms. • Assumed at approximately $12.49 per space in aggregate. 19 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 12 • Routine Maintenance: Includes the anticipated annual expense to maintain the electrical system, re- lamping, life-safety systems, doors and locks, keys, parking equipment service agreements, waste removal, pest control, and routine maintenance. • The service agreement for parking access and revenue control systems and emergency service agreement represents a significant portion of the routine maintenance cost at approximately $14,000 annually. • Sweeping and restriping represent approximately $7.00 per space. • Maintenance of the fire prevention, drainage, and electrical systems are projected at approximately $13,000 annually • A CCTV System is included at approximately $3,000 per year. • Office equipment and miscellaneous repairs are estimated at $150 per month. • The cost of maintaining the elevators serving the parking garage is included at approximately $2,500 annually, not inclusive of elevator permits. • License, Permits & Fees: Assumes the projected cost for local business licenses and permits, driveway, and other permits paid to the local governing agency or agencies. • Licensing and permits for public operations of the parking system are anticipated at approximately $780 annually and limited to the annual elevator permits for the garage. As a public agency, it is anticipated that the parking system is not subject to any licensing fees or driveway permits. • Contract Services: Includes the projected expense per space for accounting and consulting services and legal fees. • Custodial services for off-street facilities are assumed to continue to be provided at the existing per space cost expanded for all off-street facilities, or approximately $1,925 annually. • Accounting and legal fees of $3,000 per year are included. • Waste removal for the off-street facilities is projected at $100 per month, with pest control at $80 per month. • Annual structural inspections for off-street facilities are included at $2,000 annually. • Snow removal is included at approximately $68,774 annually for off-street facilities. In addition to the typical expenses incurred in the operation of a public parking system, Walker also recommends that parking asset owners set aside funds on an annual basis to help pay for future capital repairs and maintenance needs. This sinking fund is intended to provide for major equipment replacement and structural maintenance and repairs, including items such as the following: • Elevator replacement • Fire protection and storm drainage piping replacement • Lighting fixture replacement • Parking access and revenue control system (PARCS) replacement • Parking lot crack sealing, pothole repairs, resurfacing, etc. • Expansion joint replacements • Repairing or replacing topping membranes • Routing and sealing of joints and cracks • Repair or replacement of expansion/construction joints • Major structural repairs to stairs, floors, columns, and beams The typical annual sinking fund set aside recommended by Walker is 1% of the per space construction cost of the facility or $250 per space. 20 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 13 Parking Access and Revenue Controls Based on input by City staff, multi-space meters for license-plate-based payments are anticipated for Downtown Bozeman to integrate with existing mobile license plate recognition (LPR) equipment. However, the specific brand and placement and infrastructure needs have yet to be determined. Additionally, the off-street parking facilities' parking access and revenue control systems have not been identified. This effort assumes that approximately 66 payment kiosks at an initial cost of $12,000 per kiosk that accepts cash and credit cards and $10,000 per kiosk that accepts only credit cards. In additional payment hardware, fixed LPR supporting a gateless operation at the Bridger Garage is included at a budget of $19,000. Management software and infrastructure improvements to support these technologies are projected at approximately $48,000. Variations in technologies chosen to manage the system, optional features, and vendor financing options may differ from these assumptions. 21 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 14 Preliminary Proforma Results 03 22 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 15 Preliminary Proforma Results Using the assumptions outlined in the previous section, Walker projected parking the potential net income for the public parking system under three rate scenarios. These scenarios included: Cost Recovery The cost recovery rate scenario identifies minimum rates necessary projected to provide for the operations and maintenance of the existing public parking system and the debt service of a future parking structure. Cost Recovery Plus The cost recovery plus scenario builds on the base cost recovery structure, increasing rates to provide funding for reinvestment within the community. Market Rates The market rate scenario evaluates a rate schedule developed based on the parking fees charged by peer and aspirational agencies. Scenario 1. Cost Recovery Under the Cost Recovery scenario, parking rates are identified to provide the lowest rate necessary to provide for the parking system's operations and maintenance. With peak season on-street parking priced at $0.75 per hour and off-street at $0.50 per hour, and off-peak season parking continued to be provided free with time limits, the parking system is projected to net just over $462,660 annually, as summarized in Table 4 on the following page. However, because net operating income from the Bridger Garage must be allocated to transit service, the on- street and surface parking lots must absorb the full burden of any potential reinvestment in the community beyond transit. The net operating income not including the Bridger Garage is projected at approximately $178,000 per year. This projects approximately $284,660 annually in potential transit funding from the operations associated with the garage. While this scenario maintains existing permit rates and free parking during the off- season, the rates may severely limit the ability to reinvest in the District's access and mobility future beyond transit services funded by the garage. As discussed more in the Parking Revenue Allocation Options section on Page 23, this scenario would not provide for the full amount of the debt service necessary to fund a new parking structure. Figure 4 summarizes the seasonality of the parking revenue anticipated in the initial stabilized year compared to the system's expenses. Figure 4. Preliminary Proforma Results, Cost Recovery Year 1 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Total Capital Repairs & Replacement Funding, System Total Operating Expenses, System Net Revenue, System 23 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 16 Table 4. Proforma Results, Cost Recovery Year 1 System On-street & Surface Lots Garage Revenue Transient Revenue $607,800 $508,200 $99,600 Permit Revenue $609,600 $58,800 $550,800 Citation Revenue* $27,900 $21,100 $6,800 Total Revenue $1,245,300 $588,100 $657,200 Credit Card Fees $34,400 $15,900 $18,500 Net Revenue $1,210,900 $572,200 $638,700 System On-street & Surface Lots Garage Operating Expenses Labor - Taxes & Benefits $207,100 $140,000 $67,100 Utilities - Electric & Telephone $42,100 $28,200 $13,900 Insurance - GL/GKLL $9,600 $6,000 $3,600 Supplies $21,400 $14,300 $7,100 Routine Maintenance $43,600 $29,300 $14,300 License Fees & Permits $840 $0 $840 Contracted Services $112,800 $63,600 $49,200 Total Operating Expenses $437,440 $281,400 $156,040 Net Operating Income (Loss), Before Reserve Funding $773,460 $290,800 $482,660 Capital Repair & Replacement Fund Technology $88,800 $81,600 $7,200 Parking Supply $206,400 $26,400 $180,000 Lighting System Replacement $15,600 $4,800 $10,800 Total Capital Repairs & Replacement Funding $310,800 $112,800 $198,000 Net Operating Income (Loss), After Reserve Funding $462,660 $178,000 $284,660 *Citation revenue is representative of only the violations related to the assumptions outlined on page 9. Should parking be implemented year-round, rather than seasonally, preliminary modeling results in a potential net income of $1,043,360 with on-street rates at $0.75 on-street and $0.50 per hour off-street maintained year-round. In this scenario, $379,860 in potential net operating income is attributable to the garage, with approximately $663,500 potential revenue projected for the on-street and surface lots. 24 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 17 Scenario 2. Cost Recovery Plus Under the Cost Recovery Plus scenario, parking rates are identified to provide the rate necessary to provide for the parking system's identified needs and generate additional positive net revenues intended to reinvest in the District's access and mobility. Expenses include the parking system's operations and maintenance. With peak season on-street parking priced at $1.75 per hour and off-street at $1.00 per hour, the parking system is projected to net approximately $1,179,560 in potential net income. As summarized in Table 5 on the following page, approximately $798,400 of this potential net income is attributable to the on-street and surface lot spaces, while $381,160 is projected to be generated by the garage. This scenario provides reinvestment opportunity in the District's access and mobility future, including potential coverage of debt financing for a new parking structure, and the increased differential in on- and off-street parking locations will encourage efficient distribution of parking demand. While this scenario does present the highest rates evaluated, they are relatively in line with market rates. Figure 5 summarizes the seasonality of the parking revenue anticipated in the initial stabilized year compared to the system's expenses. Figure 5. Proforma Results, Cost Recovery Plus $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Total Capital Repairs & Replacement Funding, System Total Operating Expenses, System Net Revenue, System 25 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 18 Table 5. Proforma Results, Cost Recovery Plus Year 1 System On-street & Surface Lots Garage Revenue Transient Revenue $1,345,900 $1,146,900 $199,000 Permit Revenue $609,600 $58,800 $550,800 Citation Revenue* $27,900 $21,100 $6,800 Total Revenue $1,983,400 $1,226,800 $756,600 Credit Card Fees $55,600 $34,200 $21,400 Net Revenue $1,927,800 $1,192,600 $735,200 System On-street & Surface Lots Garage Operating Expenses Labor - Taxes & Benefits $207,100 $140,000 $67,100 Utilities - Electric & Telephone $42,100 $28,200 $13,900 Insurance - GL/GKLL $9,600 $6,000 $3,600 Supplies $21,400 $14,300 $7,100 Routine Maintenance $43,600 $29,300 $14,300 License Fees & Permits $840 $0 $840 Contracted Services $112,800 $63,600 $49,200 Total Operating Expenses $437,440 $281,400 $156,040 Net Operating Income (Loss), Before Reserve Funding $1,490,360 $911,200 $579,160 Capital Repair & Replacement Fund Technology $88,800 $81,600 $7,200 Parking Supply $206,400 $26,400 $180,000 Lighting System Replacement $15,600 $4,800 $10,800 Total Capital Repairs & Replacement Funding $310,800 $112,800 $198,000 Net Operating Income (Loss), After Reserve Funding $1,179,560 $798,400 $381,160 *Citation revenue is representative of only the violations related to the assumptions outlined on page 9. Should parking be implemented year-round, rather than seasonally, preliminary modeling results in a potential net income of $2,465,860 with on-street rates at $1.75 on-street and $1.00 per hour maintained year-round. In this scenario, $571,260 in net operating income is attributable to the garage, with just under $1.9 million potential revenue projected for the on-street and surface lots. 26 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 19 Scenario 3. Market Rates Under the Market Rate scenario, parking rates are based on those charged at peer and aspirational agencies. Parking rates of four peer agency core main street areas and Montana State University were analyzed to inform market rate conditions. Agencies included in this analysis are Missoula, MT; Bend, OR; Estes Park, CO; and Provo, UT, are were chosen due to one or more of the following reasons: • population served • active downtown/main street area • university presence • geographic proximity to a national park • similar climate consideration • seasonal tourism is driven by outdoor recreation On-Street Parking Rates Table 6 outlines on-street public parking rates and restrictions for each agency. Table 6. On-Street Public Parking Rates per Agency PEER CITY/TOWN PRICE CATEGORY RATE TIME RESTRICTIONS NOTES City of Provo, UT All Users Free 2 Hours Provo is considering implementing on-street paid parking near BYU as of November 2021 and the existing residential parking permit program. City of Bend, OR All Users Free 2 Hours Downtown Core area City of Missoula, MT Visitors Hour 1 $1.00 Hour 2 $1.00 Hour 3 $1.50 Hour 4 $2.00 Hour 5 $2.50 Hour 6 $3.00 Hour 7 $3.50 Hour 8 $4.00 Mon-Sun, 9 AM - 5 PM $18.50 Daily max fee Rate for visitors Employees & Residents $1.00 per hour Mon-Sun, 9 AM - 5 PM $2.00 Daily max fee $35.00 per month permit available for select locations Town of Estes Park, CO Winter Free 1-3 Hours Select streets Summer $2.00 per hour Mon-Sun, 10 AM - 6 PM Along Park Lane Free 1-3 Hours Select streets Average per Hour (First Two Hours) $1.50 Excludes special rates for employees and residents Average per Hour (Every Hour After 2 Hours) $2.64 27 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 20 Only the City of Missoula charges for on-street public parking year-round of the four agencies reviewed. The City of Missoula currently uses a graduated rate schedule for its core-area on-street public parking, increasing 50 cents for every hour past the first two hours, up to a maximum possible daily parking fee of $18.50. In Missoula, employees and residents qualify for alternative lower rates. However, the City of Estes Park charges for on-street parking along select streets during the summer, reflective of their peak visitor period between May and October. However, residents within the Estes Parking R3 School District, with proof of residency, may apply for a Local Permit that provides 60 minutes of free parking per day in paid facilities, including on-street paid areas. The average rate per hour for on-street parking for the first two hours is $1.50. The average rate for every hour after the first two hours is $2.64 per hour. The average daily max rate for paid on-street parking is $17.25. All agencies included in the analysis impose a time restriction for its on-street public parking, at least during enforcement hours, ranging from 1 to 4 hours. Off-Street Parking Rates Table 7, on the following page, outlines off-street public parking rates observed for the four agencies and Montana State University. The City of Bend offers an income-qualifying discount for monthly permits in the Centennial Garage and Newport Ave Lot. Those that qualify for the discount must make less than $17 per hour, including any applicable tips, and there is no requirement for the number of hours the wage is applied in a pay period. While Estes Park does not provide a monthly permit option, they provide an option for a $10 overnight parking pass during its seasonal paid period in one of its public parking facilities. The City of Missoula provides parking permit options for both their off-street facilities and select on-street locations. Permits are location specific with off-street facilities ranging from $40 to $85 per month, based on if it is a surface lot or structure and demand for the facility. On-street permits are specific to a designated block and cost $35 per month. Four have current permit availability of the City of Missoula's 26 permitted facilities and blocks. The remaining 22 have reached their maximum permit allocations. Table 7 includes a sample of several representative parking facilities, but it does not represent all of the City's managed facilities. 28 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 21 Table 7. Off-Street Public Parking Rates per Agency AGENCY FACILITY HOURLY RATE PERMIT RATE NOTES City of Provo Town Square Garage $2 per entry NA Mon-Sun, 6 AM - 2 AM Wells Fargo Tower Garage Free NA 2 hours max Utah State Garage Utah County Parking Lot Utah County Garage City of Bend Mirror Pond Lots $1 per hour NA 6 hours max Greenwood Wall Lot $1 per hour NA 4 hours max Troy Field Lot $1 per hour up to 6 hours $ 10-day rate (7+ hours) NA Newport Lot $20 per month Centennial Garage $40 per month City of Missoula Bank Street Structure $1 per hour $75-85 per month Mon-Fri, 8 AM-5 PM New Park Lot $60 per month Kiwanis Park Lot NA $40 per month Engine Lot NA $50 per month Central Park Structure 1st hour free then $1.00 per hour $75-85 per month Mon-Fri, 8 AM-6 PM Park Place Structure $85 per month Roam Structure Town of Estes Park Winter All Public Surface Lots Free NA Visitor Parking Structure Summer Surface Lots (All but W. Riverside Lot) Free Resident permits provide up to 60 minutes per day. They are free but require preregistration. Employee permits are $40 per year Loading permits are $80 per year and apply mainly to tour operators. Mail and package delivery and commercial freight for essential goods are exempt. West Riverside Lot Free, limited to 3 hours Seasonal Paid Public Parking Lots (8 Lots) $2 per hour Mon-Sun, 10 AM-6 PM May 28-Oct 17 Visitor Parking Structure Free $10 per night Montana State University Parking Garage $5 for the 1st hour, then $2.50 per hour $12 daily max $630 per year $365 per Fall or Spring semester only 6 AM-8 PM Lot 16 NA $860 per year Lot 24 NA $560 per year $325 per Fall or Springs semester only Harrison St. Lot $4 for the 1st hour, then $1.00 per hour $8 daily max NA 6 AM-6 PM 29 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 22 With peak season on-street parking priced at $1.50 per hour and off-street at $1.00 per hour, the parking system is projected to net a potential $1,052,960 annually. As summarized in Table 8 on the following page, approximately $671,800 of this potential revenue is projected to be generated by the on-street and surface lot spaces. The $381,160 in potential revenue projected from the garage is required to be invested in transit services per the requirements of its original funding agreement. This scenario provides reduced potential reinvestment opportunity in the District's access and mobility future and the reduced differential in on- and off-street parking locations may not have as strong an influence in efficiently distributing the parking demand as alternative rate structures. Additional investment in signage and wayfinding may also be necessary to achieve the demand distribution goals. Figure 6 summarizes the seasonality of the parking revenue anticipated in the initial stabilized year compared to the system's expenses. Figure 6. Proforma Results, Market Rates Year 1 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Total Capital Repairs & Replacement Funding, System Total Operating Expenses, System Net Revenue, System 30 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 23 Table 8. Proforma Results, Market Rates Year 1 System On-street & Surface Lots Garage Revenue Transient Revenue $1,215,500 $1,016,500 $199,000 Permit Revenue $609,600 $58,800 $550,800 Citation Revenue* $27,900 $21,100 $6,800 Total Revenue $1,853,000 $1,096,400 $756,600 Credit Card Fees $51,800 $30,400 $21,400 Net Revenue $1,801,200 $1,066,000 $735,200 System On-street & Surface Lots Garage Operating Expenses Labor - Taxes & Benefits $207,100 $140,000 $67,100 Utilities - Electric & Telephone $42,100 $28,200 $13,900 Insurance - GL/GKLL $9,600 $6,000 $3,600 Supplies $21,400 $14,300 $7,100 Routine Maintenance $43,600 $29,300 $14,300 License Fees & Permits $840 $0 $840 Contracted Services $112,800 $63,600 $49,200 Total Operating Expenses $437,440 $281,400 $156,040 Net Operating Income (Loss), Before Reserve Funding $1,363,760 $784,600 $579,160 Capital Repair & Replacement Fund Technology $88,800 $81,600 $7,200 Parking Supply $206,400 $26,400 $180,000 Lighting System Replacement $15,600 $4,800 $10,800 Total Capital Repairs & Replacement Funding $310,800 $112,800 $198,000 Net Operating Income (Loss), After Reserve Funding $1,052,960 $671,800 $381,160 *Citation revenue is representative of only the violations related to the assumptions outlined on page 9. Should parking be implemented year-round, rather than seasonally, preliminary modeling results in a potential net income of $1,572,360 with on-street rates at $1.50 on-street and $1.00 per hour maintained year-round. In this scenario, $571,260 in net operating income is attributable to the garage, with just over $1 million potential revenue projected for the on-street and surface lots. 31 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 24 Parking Revenue Allocation Options Reinvesting a portion of the net operating income from paid parking operations is a concept that is being implemented in communities across North America. Proceeds can be used to reinvest in the district(s) from which they are collected. The funds can be used to fund specific transportation demand management initiatives. A Parking Revenue Allocation Policy for the City of Bozeman’s parking program should identify how net returns are distributed, and the ability to reinvest a portion of the net income to be reinvested into the area within which they were collected. The policy should identify ways to make these investments and how the funds are managed. The below list provides examples of how communities have reinvested net operating income generated by their parking departments: • Additional parking supplies • Gateway improvements • Roadway improvements • Corridor landscaping and design • New parking supplies • Reconfiguration and improvements to existing parking supplies • Streetscaping • Holiday decorations • Bicycle infrastructure • Signage and wayfinding • Bike/scooter program • Trail development and maintenance • Alley improvements such as art installations and lighting upgrades • Upgraded parking technology to improve customer experience • Long term planning initiatives • District security • Free or subsidized district circulator shuttle services • Sidewalk improvements • Provide discounted or free parking or transit for o Active and retired members of the military o Personal attendants and aides accompanying passengers with mobility or medical needs o Seniors o Students o Individuals with Disabilities o Individuals that have a household income at or below an established percentage of the Federal Poverty Level or Area Median Income The Parking Revenue Allocation Policy could identify general guidelines for fund allocation as percentage of net revenues rather than a set dollar amount. The final allocation and policy should consider the City’s goals for economic development and sustainability and align with any Master or Transportation Plan for the community and B-3 District. 32 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 25 Debt Service for a New Parking Structure A new parking structure is assumed at the cost of approximately $16,590,000. The location and structure combination presenting the second highest cost from the Downtown Parking Structure Matrix Cost Projections was chosen to provide a higher expense projection of that would lead to a more conservative evaluation of a rate scenario’s ability to fund the cost. The highest parking structure cost option evaluated in that matrix was noted as privately held land owned by an unwilling partner and was therefore not included. Similarly, to provide a conservative potential net income projection, the lowest TIF funding contribution projected by the City was included to reduce the amount to be funded. The amount assumed to be provided by TIF funds is $7,551,940, leaving $9,038,060 to be funded. Using the financing terms provided by the City of 3.615% and 20 years, an annual level debt service payment of approximately $642,563 was calculated. Figure 7 summarizes the ability of the existing parking system to fund the debt service of a new parking structure based on the net income after reserve funding of the on-street and surface lot spaces. Because net income from the garage is restricted, it is not included in this evaluation for debt service coverage. It should be noted, however, that once a new structure is brought online, its operations and maintenance will increase the overall the system’s operations and maintenance expenses, which are not reflected here. To that same end, a new parking structure could accommodate latent and new parking demands not currently reflected due to the existing’s system limited capacity and high utilization. Figure 7. Debt Service Potential Coverage by Existing Parking System per Scenario $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 Cost Recovery Rates Cost Recovery Plus Rates Market Rates Seasonal Paid Parking NOI Annual Paid Parking NOI Debt Service on New Garage 33 Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS | 26 Appendices 04 34 DRAFT Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS.COM WALKER CONSULTANTS | 27 Appendices Limiting Conditions RELIANCE ON INFORMATION PROVIDED BY OTHERS - Any estimates or projections provided by WALKER will be premised upon assumptions provided by the CLIENT. As used herein, an "assumption" is an axiom or proposition included in an analysis to project future performance or events. It is not a guarantee of performance or representation of a fact that will eventually exist or be attained or reached. CLIENT fully understands that WALKER must utilize such "assumptions" to perform feasibility or other analyses. Furthermore, CLIENT fully understands that WALKER is not an auditor or a certified public accountant and will not independently review or investigate misrepresentations, fraud, misappropriation, completeness or accuracy of the information or assumptions provided by CLIENT, its agents, representatives, or others supplying information or data to WALKER for its use in performance of the Services. WALKER may draw certain assumptions from its past work on other projects of similar or like nature, and will do so in a manner consistent with the standard of care within the profession. CLIENT fully understands that, because of the inherent uncertainty and probable variation of the assumptions, actual results will vary from estimated or projected results and such variations may be material. As such, WALKER makes no warranty or representation, express or implied, as to the accuracy of the estimates or projections. FINANCIAL PROJECTIONS - WALKER may compile, from information and assumptions provided by CLIENT, projections and related prospective statements of income, expenses and cash flow. CLIENT is responsible for representation about its plans and expectations and for disclosure of significant information that might affect the Services. WALKER is not CLIENT's investment advisor or advocate. The actual results achieved will vary from the projections and variations may be material. CHANGES IN ASSUMPTIONS AFTER COMPLETION OF SERVICES – Unforeseen and changed laws, technologies, events or circumstances may occur after the course of this engagement and completion of Services which may render the Documents obsolete. WALKER has no responsibility to inform CLIENT about changed circumstances impacting projections and does not have any responsibility to update Documents for events and circumstances occurring after delivery of Documents to CLIENT. CONSEQUENTIAL DAMAGES – To the fullest extent permitted by law, neither the CLIENT nor WALKER, shall be liable to the other or shall make any claim for any incidental, indirect or consequential damages arising out of or connected in any way to the services or projections provided under this agreement. This mutual waiver of consequential damages shall include, but is not limited to, loss of use, loss of profit, loss of business, loss of income, loss of reputation and any other consequential damages that either party may have incurred from any cause of action including negligence, strict liability, breach of contract and breach of strict or implied warranty. NO THIRD-PARTY BENEFICIARY – CLIENT understands that the Documents are prepared for CLIENT's internal management use only and that Documents are for CLIENT's sole benefit and no third-party beneficiary is implied. CLIENT agrees to obtain WALKER's prior written permission before distributing a copy of the Documents to anyone other than a member of its internal management. If CLIENT distributes a copy of the Documents to any person or entity other than its internal management, CLIENT fully 35 DRAFT Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS.COM WALKER CONSULTANTS | 28 understands that it does so at its own risk, and WALKER assumes no liability or responsibility therefor or the consequences thereof and CLIENT hereby agrees to indemnify and hold harmless from and against any and all claims or causes of actions for damages or loss against WALKER by such person or entity as a result of said person's alleged reliance on the Documents. USE OF DOCUMENTS - CLIENT agrees not to use documents in a transaction in which one relies on the accuracy of projections, and WALKER assumes no responsibility for CLIENT's actions in its use of the documents in such transactions. Further, any use of documents for modifications or extensions of the services, new projects, or completion of this project by others, without WALKER'S specific written consent, will be at CLIENT's sole risk. STATUTE OF LIMITATION – Parties agree that all legal action by one party against the other arising out of this Agreement or connected with the Services shall be barred and no such claim shall be initiated by either party after four (4) years have passed from the date the Documents were delivered to the CLIENT, unless applicable statute of limitation sets a shorter period. LIMITATION OF REMEDIES - WALKER'S liability to CLIENT as a result of acts, errors or omissions of WALKER shall be limited in the aggregate to the fee for the associated effort. MEDIATION – If any dispute arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation before resorting to litigation. Costs of any mediation proceeding shall be shared equally by all parties. MUNICIPAL FINANCIAL ADVISOR – Walker Consultants is not registered with the U.S. Securities and Exchange Commission ("SEC") as a municipal financial advisor. As such, Walker's consultation will be limited to engineering advice based on site and/or economic feasibility; Walker will not be recommending a specific financial structure or vehicle for consideration, nor will Walker recommend a specific financial plan. For those services, the owner/client should seek counsel from a qualified municipal financial advisor. Any opinions or views provided by Walker are not intended to be, and do not constitute, advice within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. 36 DRAFT Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS.COM WALKER CONSULTANTS | 29 Walker Consultants Walker has worked with many mountain towns, destination communities, and college towns along the Rocky Mountain range and throughout the United States. Through these engagements, we have learned the unique challenges these communities face. The parking and mobility decisions you make are affected by the environment, Town/Gown relationships, and often competing needs between your residents, students, businesses, and visitors. Additionally, the synergy of programs is even more critical when you have a destination center in your community such as the gateway to Yellowstone National Park and Big Sky. Working with municipalities, state agencies, universities, resorts, and developers, the projects we have had the opportunity to work on span a great deal of variety, including planning, design, operations, and preservation. While the type of work has varied, the common theme focuses on the user of the system. Founded in 1965, Walker Consultants has completed 325 financial studies supported by over 300 professionals across its 22 offices. Walker is one of the few firms nationwide that has a proven track record of parking system financial analysis. Our firm has been involved in many of the major parking- related monetization arrangements that have closed in the last decade. This includes transactions such as the Ohio State parking concession agreement, the Chicago Park’s District asset monetization, the City of Pittsburgh downtown parking monetization, and similar investigations by Indiana University, the City of Cincinnati, the University of Kansas, and the University of Florida. Based on our work with asset owners and operators, Walker maintains a database of income and expense statements for over 500 stand-alone parking facilities throughout the U.S. This database is leveraged to ensure that our financial analyses reflect realistic estimates of operating expenses for a given market. From a single facility to much larger systems, Walker is a trusted name in providing due diligence, market analysis, income and expense proformas, and other services for the purposes of bond financing and/or the sale of parking assets. In the past, our work has been specifically requested by well-known financial advisors and underwriters including Goldman Sachs, Morgan Stanley, HSE & Co., Ernst and Young Investment Advisors, and Royal Bank of Canada (RBC). 37 DRAFT Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS.COM WALKER CONSULTANTS | 30 Revenue Methodology Summary • Parking volume is based on data collected August 2021. Data was collected during a representative period in the peak summer season. • Seasonal, monthly calibration applied using and checking against the Bed Tax trends (1987-2021) and enplanements (2016-2021). • We also looked at the trends not including 2020-2021 to ensure pandemic did not skew trends. • No background population or tourism growth factor applied to remain conservative. • Sunday is assumed to operate at approximately 80% of the Saturday volume. • Assumed 10%, or 1 in 10, current parkers to be price sensitive (approximately 125 vehicles on a typical August weekday). o Of these price sensitive parkers, 25% would want to purchase a permit rather than pay hourly (32 parkers on each the weekdays and weekends). o Of these price sensitive parkers, 75% would find alternative transportation to the area or an alternative destination (93 parkers on a typical August weekday). o Other than conversion of hourly to permit parkers, no additional permit demand was included to remain conservative. • No additional development of other new parking demand is assumed to remain conservative. • We assumed 15% of hourly parkers would not pay the meter fee. o Of these violators, 75% are assumed to receive a citation. o Of those cited, 75% of fines are assumed to be collected. o No other enforcement revenue is included to remain conservative. o No seasonal adjustment is included in the year-round projections to reflect reduced visitor presence (residents generally need less ongoing education and are more incentivized to pay fines). 38 DRAFT Downtown Bozeman Preliminary Parking Proforma 23-008542-00 WALKER CONSULTANTS.COM WALKER CONSULTANTS | 31 Operations and Maintenance Detailed Projections Year 1 Garage On-Street and Surface Lots OPERATING EXPENSES Spaces 1,337 435 902 Labor - Taxes & Benefits 207,000 67,300 139,700 Sub-Total - Labor (refer labor tab detail)163,300 53,100 110,200 Sub-Total - Taxes/Benefits/W/C. (refer labor tab detail)43,664 14,200 29,464 Utilities - Electric & Telephone 42,000 13,700 28,300 Total lamp plus ballast watts 190 Annual Hours of Operation (hours/day x 365 days/yr.)24 8,760 Annual kW hours per fixture (watts x hrs. / 1,000)1,664 Local Cost (per kWh) 0.0979$ - Annual Cost per Fixture 162.94$ Lamp Spacing (coverage area / sq. ft.)900 Annual Lighting (cost / sq. ft.)0.181$ Parking Stall Size (sq. ft.)357 Annual Lighting Cost (per space)64.63$ Number of Spaces in Parking Structure 612 Electric (cost / month)3,296.37$ 12 39,600 12,900 26,700 Telephone (cost / month)200.00$ 12 2,400 800 1,600 Insurance - GL/GKLL 9,200 3,000 6,200 Garage Liability (= $ / space)15.00$ 612 9,180 3,000 6,180 Supplies 21,800 7,100 14,700 Parking Tickets (cost / space/ year)2.45$ 1,337 3,276 1,100 2,176 Printed Forms (cost / space / year)2.90$ 633 1,836 600 1,236 Office Supplies (cost / space)3.00$ 633 1,899 600 1,299 Garage Supplies (cost / space)6.00$ 1,337 8,022 2,600 5,422 Uniforms ( cost / employee / year x FTE)1,700.00$ 4.00 6,800 2,200 4,600 Routine Maintenance 43,300 14,100 29,200 Drainage System (cost / sq. ft.)0.020$ 155,295 3,106 250 2,856 Electrical - Relamping (cost / sq. ft.)0.010$ 155,295 1,553 1,500 53 Domestice Backflow Mtc 250.00$ 1 250 100 150 Fire - Fire Ext. and cabinets 2,000.00$ 1 2,000 2,000 - Fire System Testing and Monitoring 1,650.00$ 1 1,650 1,650 - H.V.A.C. annual certification and mtc 2,000.00$ 1 2,000 3,500 (1,500) Line Striping (cost / space) 50% of total spaces annually 7.00$ 633 4,431 1,400 3,031 License plate recognition (LPR) system (10% of initial cost / year)4,700.00$ 2 9,400 3,100 6,300 Access & Rev. Control Equip. - Service Agreement (10% of initial cost / year)$2,800 1 2,800 900 1,900 Access & Rev. Control Equip. - Emergency Service (cost / month)150.00$ 12 1,800 600 1,200 Sand and Soil Seporator Maintenance $10,000 1 10,000 10,000 - Elevator Cabs 2 Elevator - Maintenance Agreement (cost/ cab/ occurence)125.00$ 4 1,000 1,000 - Elevator monitoring & repairs 1 1,480 1,480 - Office Equipment (cost / month)100.00$ 12 1,200 400 800 Miscellaneous Repairs (cost / month)50.00$ 12 600 200 400 License Fees & Permits 800 800 - Elevator Permits (annual cost / cab)390.00$ 2 800 800 - Contracted Services 112,500 48,900 63,600 Security - Unarmed (rate/hr. x annual hours)45.00$ 365 16,425 5,300 11,125 Custodial Service (monthly invoice fee by contract x 12 months)1,925.00$ 12 23,100 4,200 18,900 Accounting Fees (cost/year)2,000.00$ 1 2,000 700 1,300 Legal Fees (cost/year)1,000.00$ 1 1,000 300 700 Snow Removal (annual budget per space)129.03$ 533 68,774 38,000 30,774 Waste Removal (cost / month)100.00$ 12 1,200 400 800 Annual Building Inspection (per structure)2,000.00$ 1 2,000 2,000 - Total - Operating Expense 436,600 154,900 281,700 39 Page 1 of 6 MEMORANDUM REPORT TO:Transportation Advisory Board FROM:Jeff Mihelich, City Manager Mike Veselik, Economic Development Program Manager RE:Parking Supply and Demand Management Work Session MEETING DATE:January 26, 2022 AGENDA ITEM: Work Session RECOMMENDATION: Provide a recommendation to the Bozeman City Commission regarding the future of parking supply and demand management in the downtown core, specifically about on street paid parking. BACKGROUND: Parking in downtown Bozeman is a key component of the long- term health, vibrancy, and success of the downtown economy. Further, parking is only one part of a transportation movement. With the creation of the Transportation Advisory Board, the City of Bozeman now has the capacity to examine parking as one component to creating a robust transportation network. Taking steps toward creating supply and managing demand will allow the City to improve the transportation experience for all users. In 2016, the Bozeman Parking Commission adopted a Downtown Strategic Parking Management Plan (DSPMP).The DSPMP lays out 26 strategies to manage the downtown parking system. Since its adoption in 2016, the Parking Commission and staff have made significant progress on many of the goals. However, some of the most consequential goals remain outstanding. To solicit new community input on these goals, city staff undertook a community engagement effort in January, February, and March 2021. More than 100 residents and community members participated in several facilitated conversations. The goal of the engagement effort was to collect input from community members that do not attend monthly Parking Commission meetings. Staff received excellent input from the broader community including 1) desire for action rather than further analysis, 2) more active management effort in the downtown, and 3) exploration future supply if circumstances merit. The input from the community informed the work of the Parking Commission and staff through the end of 2021. 40 Page 2 of 6 At the April 2021 meeting, the Parking Commission adopted a work plan and formed two subcommittees based on the input from the community. The subcommittees consisted of a Policy Subcommittee and a Capacity Subcommittee. While the Policy Subcommittee focused on parking minimums, the Capacity Subcommittee focused on topics relating to 1) reducing demand in the downtown parking management district, 2) creating options for employees, 3) unlocking existing supply, and 4) creating new parking supply. The Capacity Subcommittee drafted a set of priorities for the new Transportation Board to consider in creating capacity. The Parking Commission adopted those priorities via Resolution 2021-06 including: 1. New standards for bike parking 2. Support for the expansion of public transit 3. Encouraging the City to enter into shared use agreements with downtown property owners 4. Creation of an employee permit program 5. Special event parking and transportation services 6. Support for additional research into the construction of new parking supply OCCUPANCY STUDIES OF DOWNTOWN: The main data point for decision making in parking services for downtown Bozeman is monitoring our occupancy numbers on-street and off-street in the downtown core so that Parking Services can efficiently identify trends in occupancy and take the appropriate actions to mitigate negative effects on the user experience. Prior to this summer, the last manual occupancy count was done in 2017. The City regularly monitors occupancy in the garage via fixed license plate reader (LPR) technology. Staff is in the process of installing standalone occupancy technology in all the surface lots. Measuring on-street occupancy is the hardest task. Cities across the country struggle with the best method to monitor on-street occupancy consistently without major capital investments. In June 2020, the City of Bozeman began to design a method for collecting on-street data using the city’s mobile LPR technology typically used for enforcement. Since then, staff has collected, analyzed, and sharedregular occupancy data for on-street public parking. During this development and trial period, staff noticed discrepancies in the data that were not aligning with observations. Therefore, to determine the accuracy of mobile LPR, staff contracted with Walker Consultants (Walker) to conduct an occupancy study of downtown public parking. 41 Page 3 of 6 Luckily, as Walker was conducting the study, staff discovered errors with the data that have been corrected. The map is now available on the city’s website and is updated with our most recent data. Even with the correct data coming in from mobile LPR collection, staff desired to have the most accurate collection method available to inform decisions—a manual occupancy count. A manual count is important because mobile LPR collection has a margin of error of +/- 10 percent. Therefore, a manual count can verify the accuracy of the mobile LPR collection and provide better information to make decisions. Walker shared the results of the study with staff and the Parking Commission in September and October, 2021. The study showed occupancy throughout the downtown area approaching or above 85%. The 85% rule is a widely accepted standard in the parking industry of a “full” block or off-street facility. At 85% occupancy, a parker can expect one open spot per block face in an on-street system or a few spots open in an off-street facility. Parking programs must increase management efforts to ensure parking remains readily available when systems regularly trip the 85% threshold. The best systems will have management tools in place long before the system is regularly at 85% and adjust the tools as needed to ensure parking remains available. CREATING SUPPLY AND MANAGING DEMAND:Regardless of how well Parking Services is able to manage demand, the City of Bozeman should continue exploring ways to create more options for parkers in the downtown Bozeman area. As new residents continue to move in, tourists choose to enjoy the beauty of our community, and businesses and developments locate downtown, they will look for a place to park their vehicles. Biking, walking, or taking public transit may not always be an option. Therefore, the City should continue to pursue shared-use agreements with willing partners in the downtown and attempt to unlock more private supply. However, that will likely not be enough. The City must take meaningful action to fund the creation of a new parking garage similar in size to the Bridger Park Garage. The simplest and easiest way to contribute to the construction of a new parking garage is for the City to provide funding to support the effort through an on-street paid parking program. On street paid parking is a way to manage demand and generate revenue to support future parking structures in the downtown area. Further, the users of the parking and transportation system are paying for improvements and expansion to said system. In addition, the 2016 Downtown Strategic Parking Management Plan calls for the City to explore a paid parking solution to expand parking supply when data demonstrates the need. The data 42 Page 4 of 6 illustrates a need for paid parking as one of many tools in the Parking Services program’s toolbox to manage parking in the downtown Bozeman area. With this in mind, after the required RFQ process, staff selected Walker Consultants (Walker) for a term contract to provide support to the program in exploring the options for paid on street parking in the downtown core. Walker provided a pro forma study of the revenue that could be generated by charging for on street parking. The figure below shows the rates that could be charged from May 1 through September 30, the time with the highest tourist demand on the system, and the amount of revenue generated. In all three rate scenarios, Walker calculated the cost of debt service on bonds issued to support the construction of a new parking structure. Staff are confident in the accuracy of the model because of Walker’s experience in the industry working with other municipalities and their conservative financial assumptions. UNINTENDED CONSEQUENCES OF PAID PARKING: An efficient paid on-street parking system could lead to unintended consequences like rent seeking behavior of parkers in the downtown—i.e. parking in unregulated areas outside of the downtown core. To remedy this potential negative outcome, past Parking Commissions and the City Commission adopted Ordinance 2033 in August of 2020 which allows for the creation of parking benefit zones (PBZ). A PBZ is an inclusive permit program that provides permits to residents in the permit area—eligible neighborhoods extend 1,000 feet from the downtown B-3 zone—first at a low rate and is enforced by the Parking Division. Should additional capacity exist in the system, the City could sell permits at a premium to commuters or others who do not qualify for a resident permit. Further, paid on-street parking could burden employees who park downtown for work, especially those in service industry jobs such as the hospitality and retail establishments. Staff proposes creating an employee permit program as 43 Page 5 of 6 recommended in Parking Commission Resolution 2020-06. The program will encourage employers to purchase permits for their employees by offering discounted permits for bulk purchases in the surface lots or parking garage. In addition, should paid on street parking generate enough revenue to cover all operational expenses, excess revenue could be used to subsidize permits for select users. Staff remains committed to addressing unintended consequences of creating a paid on street parking system as they arise. The system will require fine tuning as we learn how the public reacts to paid-on street parking downtown. Staff, the Transportation Board, the City Commission, and the general public must all work together to perfect the system. COMMUNITY ENGAGEMENT AROUND PAID PARKING: Staff believes the engagement conducted in the winter of 2021 provided sufficient public input on whether or not to pursue paid on street parking in the downtown core. Additionally, staff continues to discuss the parking system with the Downtown Bozeman Partnership, downtown property owners, business owners, and residents. Staff will, however, benefit from additional public input on the allocation of any additional revenue generated from paid on street parking beyond the basic costs of operating the system. The options staff would like to present to community members include 1) funding a new garage/additional supply, 2) a grant program to support multimodal transit projects, 3) funding streamline, and 4) subsidizing employee parking permits. ACHIEVING THE GOALS OF THE CITY OF BOZEMAN: The City Commission has adopted many plans and goals designed to provide a basis for the City to make policy decisions. Implementing paid on street parking to fund projects such as a new garage, more transit, bike and pedestrian transportation options, and an employee permit program meet several City goals including goals 2.2 Infrastructure Investments, 4.2 A High-Quality Urban Approach, 4.4 Vibrant Downtown Districts and Centers, 4.5 Housing and Transportation Choices, 6.3 Climate Action, and 7.3 Best Practices, Creativity, and Foresight. Additionally, implementing paid on street parking allows for the City to encourage additional uses of multimodal transportation. The City can make progress toward goals in the Strategic Plan (Urban Design),Climate Plan, Downtown Plan,and the Transportation Plan. CONCLUSION: Staff has conducted data collection showing a need for increased parking supply and a more active management strategy for parking demand. Paid on 44 Page 6 of 6 street parking is a proven method in communities across the country to manage a parking system and as a tool to increase parking supply. Paid on street parking allows for the City to place the cost burden of operating the system on the users of the system rather than assessing individual property owners or businesses. Further, the seasonal approach to paid on street parking allows the City to capture revenue when parking assets are in highest demand, mostly by out of town guests and daily visitors. Finally, revenues generated from paid on street parking provides the City with funds to invest in projects for the future of the transportation system and to support a thriving downtown. 45 Memorandum REPORT TO:Transportation Board FROM:Mihelich/Lonsdale/Veselik SUBJECT:Work Plan for Transportation Advisory Board 2022-2023 MEETING DATE:January 26, 2022 AGENDA ITEM TYPE:Policy Discussion RECOMMENDATION:Discussion STRATEGIC PLAN:7.3 Best Practices, Creativity & Foresight: Utilize best practices, innovative approaches, and constantly anticipate new directions and changes relevant to the governance of the City. Be also adaptable and flexible with an outward focus on the customer and an external understanding of the issues as others may see them. BACKGROUND:The Transportation Advisory Board will begin discussion of their work plan for 2022-2023. The Board will examine the proposed work plan as developed by Staff. The Board should provide input and feedback to staff about the work plan. Staff will finalize the work plan and prepare a resolution for the Board's consideration at the February meeting of the advisory board. UNRESOLVED ISSUES:None. ALTERNATIVES:Alternatives as proposed by the Board. FISCAL EFFECTS:See Work Plan Excel Document Attachments: Transportation Advisory Board Work Plan 2022-2023-- FINAL.xlsx Report compiled on: January 21, 2022 46 WP Item Description:Strategic Priorities Connection: Board Time Commitment: Staff Time Commitment:Schedule:Budget Impact: Complete the Parking Benefit Zone Process Strategic Plan One Meeting Minimal-- Resolution drafted February/ March 2022 N/A Implement Work related to the Supply and Demand Work Session Strategic Plan, Climate Action Plan, Growth Plan 3-5 meetings, plus preparatory work Significant Through the end of 2022 If paid parking implemted, revenue could exceed $1 million. Upfront costs estimate at $500,000- $750,000 Routine Work of the Parking Commission-- Rate Setting, Appeal Reviews, etc. Strategic Plan 2-4 meetings per year Moderate Annually Rate setting could affect income Emploiyee Permit Program Strategic Plan 1-2 meetings Moderate Through the end of 2022 Unknown at this time WP Item Description:Strategic Priorities Connection: Board Time Commitment: Staff Time Commitment:Schedule:Budget Impact: Criteria for the Prioritization of Capital Bike and Pedestrian Projects Strategic Plan 2 Meetings moderate Now to September 2022 N/A Transportation Demand Management Strategic Plan Strategic Plan, Growth Plan 2-3 meetings Substantial Through the end of 2022 N/a ADVISORY BOARD WORK PLAN TEMPLATE Focus Area 1: Parking Focus Area 2: Pedestrian, Bicycle, and Traffic Safety Focus Area 3: Multi-Modal Transportation 47 WP Item Description:Strategic Priorities Connection: Board Time Commitment: Staff Time Commitment:Schedule:Budget Impact: Partner with Streamline to identify ways to support public transit Growth Plan Sporadic Moderate On-Going Unknown at this time Provide Input on Micromobility Policies Strategic Plan 1 meeting Moderate early 2022 Unknown at this time Provide input on Capital Improvement Plan development Strategic Plan 2 meetings Substantial On-Going Unknown at this time 48