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HomeMy WebLinkAbout09-28-22 Transportation Board Agenda & Packet MaterialsA.Call to Order - 6:00 PM B.Disclosures C.Changes to the Agenda D.Authorize Absence D.1 Authorize the absence of Board Member Deejay Newell (Veselik) E.Public Service Announcements F.Approval of Minutes F.1 Minutes of the August 24, 2022 Transportation Advisory Board (Ross) G.Consent Items THE TRANSPORTATION BOARD OF BOZEMAN, MONTANA TB AGENDA Wednesday, September 28, 2022 This meeting will be held both in-person and also using Webex, an online videoconferencing system. You can join this meeting: Via Webex: https://cityofbozeman.webex.com/cityofbozeman/onstage/g.php? MTID=ed01f365d96640ffa3dd9b1f4bf09536e 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, channel 190, or attend in-person United States Toll +1-650-479-3208 Access code: 2550 217 6720 If you are interested in commenting in writing on items on the agenda please send an email to agenda@bozeman.net prior to 12:00pm on the day of the meeting. Public comments will be accepted in-person during the appropriate agenda items. You may also comment by visiting the Commission's 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 hybrid meeting. As always, the meeting will be streamed through the Commission's video page and available in the City on cable channel 190. 1 H.Public Comments This is the time to comment on any matter falling within the scope of the Transportation Board. There will also be time in conjunction with each agenda item for public comment relating to that item but you may only speak once. Please note, the Board cannot take action on any item which does not appear on the agenda. All persons addressing the Board shall speak in a civil and courteous manner and members of the audience shall be respectful of others. Please state your name and place of residence in an audible tone of voice for the record and limit your comments to three minutes. General public comments to the Board can be found on their Laserfiche repository page. I.Special Presentations J.Action Items K.FYI/Discussion K.1 Capital Improvement Projects - Transportation(Ross) K.2 Parking Supply and Demand Work Session #2 (Veselik) L.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). In order for this Board to receive all relevant public comment in time for this meeting, please submit via the Commission Comment Page or by emailing agenda@bozeman.net no later than 12:00 PM on the day of the meeting. Public comment may be made in person at the meeting as well. 2 Memorandum REPORT TO:Transportation Board FROM:Mike Veselik, Economic Development Program Manager Nick Ross, Transportation and Engineering Director SUBJECT:Authorize the absence of Board Member Deejay Newell MEETING DATE:September 28, 2022 AGENDA ITEM TYPE:Administration RECOMMENDATION:I move to authorize the absence of Deejay Newell for the September meeting of the Transportation Advisory Board 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:Board Member Deejay Newell informed staff that she would not be in attendance at the September meeting. UNRESOLVED ISSUES:No Unresolved Issues ALTERNATIVES:Alternatives as proposed FISCAL EFFECTS:No Fiscal Effects Report compiled on: September 23, 2022 3 Memorandum REPORT TO:Transportation Board FROM:Nicholas Ross, Director of Transportation and Engineering SUBJECT:Minutes of the August 24, 2022 Transportation Advisory Board MEETING DATE:September 28, 2022 AGENDA ITEM TYPE:Minutes RECOMMENDATION:I move to approve the August 24, 2022 Transportation Board Meeting Minutes. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:Minutes of the August 24, 2022 Transportation Advisory Board UNRESOLVED ISSUES:None ALTERNATIVES:As recommended by the Board. FISCAL EFFECTS:None Attachments: 082422 Transportation Board Meeting Minutes Report compiled on: August 30, 2022 4 Bozeman Transportation Board Meeting Minutes, August 24, 2022 Page 1 of 4 THE CITY TRANSPORTATION BOARD MEETING OF BOZEMAN, MONTANA MINUTES August 24, 2022 Present: Bryce Gordon, Christine Roberts, Shannon Mahoney, Courtney Oyler, Kelly Pohl, Paul Reichert Absent: Deejay Newell Staff Present at the Dias: Director of Transportation and Engineering Nicholas Ross, Public Works Office Manager Marcy Yeykal A) 00:04:30 Call to Order - 6:00 PM B) 00:04:35 Disclosures C) 00:04:42 Changes to the Agenda Chair Pohl excused Deejay Newell absence. 00:05:11 Motion C) Changes to the Agenda Paul Reichert: Motion Bryce Gordon: 2nd 00:05:11 Vote on the Motion to approve C) Changes to the Agenda. The Motion carried 6 - 0 Approve: Bryce Gordon Christine Roberts Shannon Mahoney Courtney Oyler Kelly Pohl Paul Reichert Disapprove: None 5 Bozeman Transportation Board Meeting Minutes, August 24, 2022 Page 2 of 4 D) 00:05:21 Public Service Announcements E) 00:05:27 Approval of Minutes E.1 Minutes of the July 27, 2022 Transportation Advisory Board 072722 Transportation Board Meeting Minutes 00:05:56 Motion E) Approval of Minutes Paul Reichert: Motion Courtney Oyler: 2nd 00:05:56 Vote on the Motion to approve E) Approval of Minutes. The Motion carried 6 - 0 Approve: Bryce Gordon Christine Roberts Shannon Mahoney Courtney Oyler Kelly Pohl Paul Reichert Disapprove: None F) 00:06:09 Consent Items G) 00:06:13 Public Comments There was no public comment. H) Special Presentations I) Action Items J) 00:07:33 FYI/Discussion J.1 00:07:32 Orientation on Capital Improvements Programing and Impact Fees 00:07:57 Director of Transportation and Engineering Nicholas Ross gave a directors report. He started off by thanking the board for their recommendation and advisory role on the Fowler Project. Nicholas also addressed some safety concerns that have come forth at board meetings. Nicholas spoke about how the city is heavy into the capital improvement process. The City has completed its final walk through on the Griffin Drive project and should be finished up by next spring. Kagy Boulevard will be the next big initiative for the City and he introduced Program Manager Chris Saunders. 00:15:12 Staff Presentation 6 Bozeman Transportation Board Meeting Minutes, August 24, 2022 Page 3 of 4 00:15:15 Program Manager Chris Saunders presented the Orientation on Capital Improvements Programing and Impact Fees. 20220824_Impact Fee and CIP Overview memo.pdf 20220824_Impact Fee and CIP Overview presentation.pdf 00:47:41 Questions of Staff 01:10:53 Public Comment There was no public comment. J.2 01:12:23 Discussion of FY 2023 Bicycle and Pedestrian Priorities 20220824_Transportation Board list.pdf 01:12:43 Director of Transportation Nicholas Ross presented the FY 2023 Bicycle and Pedestrian Priorities. 01:25:55 Questions of Staff 01:41:22 Public Comment 01:42:20 Marilee Brown, Public Comment Marilee Brown commented on the Frontage Road Pathway and how they are working closely with Sanderson Stewart to identify exactly which sections need to be built in order to connect 100 miles of pathway. She is doing a feasibility study right now and that portion has already been paid for by TOP funds. They were required to raise match funding for those funds and they are doing it. 01:44:53 Ralph Zimmer, Public Comment Ralph Zimmer commented that he would urge the board to make recommendations to staff on an individual project bases. He would also like to see the board be active in seeking additional funding for transportation. 01:49:48 Jason Delmue, Public Comment Jason Delmue commented on the potential projects priorities list and the Frontage Road Pathway. 01:52:49 Discussion 01:52:58 Chair Pohl thanked Marilee Brown, Ralph Zimmer and Jason Delmue for all the hard work raising and getting funds to continue to do these projects. She also spoke about how the board should prioritize these projects. 01:59:45 Christine Roberts would like to see a breakdown on the projects and define what that might be. 7 Bozeman Transportation Board Meeting Minutes, August 24, 2022 Page 4 of 4 02:01:20 Courtney Oyler spoke about how Bozeman is lacking big pedestrian and bicycle pathways and connectivity. She spoke how the Frontage Road Pathway would be a great project and how people would be able to travel safely from Belgrade to Bozeman. 02:03:41 Shannon Mahoney spoke about how the frontage road path would be a great impact on the community. 02:05:12 Bryce Gordon spoke about using all these funds this year and on one big project would show the intention on what the board could do with this funding. 02:06:57 Vice Chair Reichert talked about the private funding. 02:07:58 Marilee Brown answered Vice Chair Reichert question about the Valley Center Spur and how they will be applying for grants. 02:12:22 Nicholas Ross spoke about the role of the advisory board and a goal of the Transportation department to expand multiple mobility options that can accommodate all travel modes and finding the funding to do it. 02:13:12 FYI from Chair Pohl K) 02:16:07 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. 8 Memorandum REPORT TO:Transportation Board FROM:Nicholas Ross, Director of Transportation and Engineering SUBJECT:Capital Improvement Projects - Transportation MEETING DATE:September 28, 2022 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:No action identified or requested. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The City's Capital Improvement Projects (CIP) Report identifies the proposed five year plan for all of the City's capital expenditures including transportation. The City's budget is the spending authorization each year and includes projects from the CIP. The CIP Reports and approved Budgets can be viewed through Budget and Financial Reports section of the Finance page on the City's website. Capital expenditures for transportation include city led large infrastructure projects as well as equipment and facilities for long term operations and maintenance. The CIP is organized by revenue fund. For transportation related projects there are three primary funds: Arterial and Collector District, Street Impact Fee, and Street Maintenance. Revenue for the Street Impact Fee Fund comes from new development based on projected increased demand from the development. Street Impact Fee funds are for capacity enhancing projects along the arterial and collector network; its creation was intended to provide the "local match" to development-driven street expansions as well as supplement the existing system. The Arterial and Collector District Fund's revenue comes from a citywide property assessment designated for funding construction improvements and maintenance of transportation facilities related to arterial and collector streets. Eligible expenditures for the Arterial and Collector District funds include the purchase of rights of way, all necessary facilities for arterial and collector roadways including related stormwater and pedestrian and bicycle facilities, and traffic and pedestrian controls at intersections. Revenue for the Street Maintenance Fund includes state gas tax allocation and a citywide property assessment. The Street Maintenance Fund covers maintenance equipment and activities as well as some smaller transportation projects that address state of good repair and safety. Street Maintenance Fund projects include pavement management (chip seal and mill and overlay), pedestrian ramp and sidewalk repair, bicycle facility projects, and maintenance of medians. Arterial and Collector District funds 9 and Street Impact Fee funds are often combined for large transportation projects. The City is currently in the initial stages of developing the CIP for fiscal years 2024 through 2028. City staff identify projects for potential inclusion in the CIP utilizing guiding criteria. Those criteria are safety, state of good repair, and relationship to development. State of good repair identifies projects that are needed to ensure that our transportation system remains in good condition as well as projects that bring existing facilities up to current city standards. Relationship to development identifies projects that are needed due to current or past development as well as areas of planned development. The current CIP (FY23-27) provides a summary that highlights major projects including: Fowler Ave, Kagy Blvd, and N 27th Ave. Staff identification of potential projects is the first step in development of the CIP. Staff will present on the forthcoming CIP at the October Board meeting and the final Commission adoption of the FY24-28 CIP is currently scheduled for early December. UNRESOLVED ISSUES:None. ALTERNATIVES:None identified or recommended. FISCAL EFFECTS:None. Report compiled on: September 21, 2022 10 Memorandum REPORT TO:Transportation Board FROM:Mike Veselik, Economic Development Program Manager, Parking Brit Fontenot, Economic Development Director Nick Ross, Director of Transportation and Engineering SUBJECT:Parking Supply and Demand Work Session #2 MEETING DATE:September 28, 2022 AGENDA ITEM TYPE:Policy Discussion RECOMMENDATION: I move the Transportation Advisory Board recommend the City implement on-street paid parking as a strategy to properly manage the parking supply and demand in Downtown Bozeman to the City Commission. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND:This work session is a continuation of the conversation about on-street paid parking as a tool to effectively manage downtown parking supply and demand. Staff has completed the to do list assigned to us by the City Commission during the February Work Session. Please see the attached memo for detailed information. In the memo, staff has linked several external documents to help the Board make an information decisions. Staff strongly recommends Board Members review those links. UNRESOLVED ISSUES:No Unresolved Issue ALTERNATIVES:Alternatives as proposed by the Board or the City Commission FISCAL EFFECTS:The Parking Fund has budgeted capital costs for implementing an on-street paid parking system Attachments: Transportation Advisory Board Parking Supply and Demand Work Session 2--092822.pdf Staff Actions on Commission Request re Parking Supply and Demand Management.docx City Commission Memo--Parking Work Session Feb 1 2022-- 11 Final.pdf Report compiled on: September 22, 2022 12 Page 1 of 10 MEMORANDUM REPORT TO: Bozeman Transportation Advisory Board FROM: Mike Veselik, Economic Development Program Manager RE: Parking Supply and Demand Management Work Session MEETING DATE: September 28, 2022 AGENDA ITEM: Work Session RECOMMENDATION: Provide a recommendation to the City Commission regarding the future of parking supply and demand management in the downtown core, specifically concerning on-street paid parking. BACKGROUND: On February 1, 2022, Staff presented a proposal to the City Commission relating to the management of parking in Downtown Bozeman. The proposal was a recommendation to pursue a policy of active curb management through paid parking. Staff recommended a seasonal paid parking model. The seasonal model created an on-street paid parking system from May 1-Spetember 30th of each year. The seasonal model rates are $1.75 per hour for on-street parking and $1.00 per hour in the garage. Staff recommended the seasonal model because it assessed charges on the system when demand was at its peak. The main factor driving the summer peak in parking demand is Montana’s robust tourism economy. The model also took into consideration the supply side of the parking equation. Using a seasonal, cost plus model, staff and our consultants concluded the City will raise enough revenue to contribute the remaining $9 million of a $16 million 400 space parking garage. Further, the City has options to finance additional supply including, but not limited to, an expansion of the Bridger Garage or a third parking garage with surplus on-street paid parking revenue. Well managed, on-street paid parking in downtown Bozeman provides staff, the Transportation Advisory Board, and the City Commission with a proven tool to manage a scare resource—parking supply in downtown. Pricing the on-street parking system is basic economics. We have an unbalanced supply and demand equation at the moment. As any business owner or economist would acknowledge, when a good or service is scarce, it is appropriate to raise the price on said good to lower demand. Putting a price on parking creates an incentive to turnover the most 13 Page 2 of 10 valuable spaces for the primary use of customers and visitors and encourages employees and other long-term visitors to park in structures or surface lots, or take an alternative mode of transportation to access downtown while generating the revenue to cover debt service payments to construct new supply. CITY COMMISSION ACTION: After a healthy debate and public comment, the City Commission directed the City Manager to complete a few tasks and conduct some research before the Commission would make a decision on whether or not to pursue on-street, paid parking. Those tasks include: 1. Identify the revenue potential of a year round model 2. Secure Site Control for a Second Garage 3. Establish Parking Benefit Zones 4. Research grants to fund future supply 5. Additional Engagement with the Downtown Community on Paid Parking 6. Research an Employee Parking Program 7. Research Downtown-Midtown-Cannery Circulator—cost and operations Year-round parking revenue: Under the cost plus model, the parking system is projected to generate $2.47 million in revenue, minus an estimated $571,000 for operating costs every year. The City will have $1.9 million to spend on debt service for additional parking supply, bike and pedestrian infrastructure improvements, employee parking programs, and any other policy initiative with a rational nexus to parking. Staff is also exploring a year-round and a seasonal option for on-street paid parking which would retain the two hours free in the garage. Site Control for a Second Garage: After much discussion, the City Manager reached an agreement in principle with the Gallatin County Commission to utilize the existing parking lot behind the Gallatin County Courthouse as a site for a second downtown parking structure. On September 20, 2022, the City Commission approved a Memorandum of Understanding (MOU) regarding the use of the parking lot as a site for a second parking garage owned and operated by the City. In exchange for the land, the City would reserve up to 75 parking spaces for Gallatin County’s use. Additionally, the City would provide free parking validation codes for citizens conducting business at the Gallatin County Courthouse. Parking Benefit Zones: At the previous work session, Deputy Mayor Cunningham raised concerns about the “balloon” nature of a parking system. If City put new parking regulations on the downtown core, then individuals could end up parking in the neighborhoods around the core. Thus, the Commission tasked staff with 14 Page 3 of 10 deciding when and how to activate the Parking Benefit Zone program established by the City Commission via Ordinance 2033 in 2020. In order to establish the program parameters, staff brought Resolution 2022-03 to the Transportation Advisory Board. The Resolution established a standard procedure for the creation of a Parking Benefit Zone surrounding the downtown core and created additional methods for residents to request the zone be activated. Staff is prepared to initiate a Parking Benefit Zone should the data show a need for additional parking regulations in these adjacent neighborhoods. Residents, via a petition, or the Commission may also request that the City Manager create a Parking Benefit Zone. Special Improvement Districts, Grants or Other Funding Mechanisms: Several business owners and other members of the community have suggested staff pursue a Special Improvement District (SID) for the construction of a second downtown parking structure. Staff is not recommending an SID for several reasons. An SID is a one-time, one-project funding source. Further, it does not provide a revenue stream to support operations and maintenance of a garage. Without a revenue source, future generations will have to bear the burden of supporting an unfunded garage when maintenance becomes necessary. As a result of its singular focus as a funding source for a specific project, SIDs are not able to deliver additional public benefits such as reducing single-occupancy vehicle trips and new revenue from tourists and visitors for multi-modal projects provided by on-street paid parking. Similarly, grants are also a one-time funding source for a structure. Second, an SID is a new tax on downtown businesses that raises taxes on businesses and property owners that already pay a higher tax rate than other properties due to their high land value. Rent is a major cost driver for the small businesses that make downtown vibrant. The cost of a new tax, like an SID, would likely be passed along to tenants and increase costs, regardless of customer volume. This could lead to businesses only further increasing costs on consumers. Staff is not recommending imposing a new tax on businesses in the downtown core, since we believe it would be more detrimental to businesses than paid on-street parking. An SID is a tax businesses pay regardless of how their customers reach downtown, or whether those customers are able to find free or cheaper parking off-street. An SID causes businesses to pay for off-street parking, even if their customers do not use that parking; it asks businesses to subsidize and encourage driving, instead of asking drivers to pay the actual cost of driving. With paid on street parking, customers have 15 Page 4 of 10 the option to choose between price, availability, and convenience in where they park, or choose alternative transportation. Third, there is a lack of consensus among the downtown community. In our community engagement sessions in the March and April 2022, participants were split on whether or not to pursue a SID for the downtown community. An SID amounts to a new tax on businesses to be paid every year for about 20 years. Under State Law, City Staff must develop a complex formula taking into account zoning requirements, distance from a parking garage, the size of the parcel assessed, the amount of parking on each parcel, and land value to determine how much each individual property owner would pay. This leads to an archaic, set in stone formula determining whether or not we could build a new parking structure. Whereas, under an on-street paid parking system, higher demand—indicating the need for a additional supply—will generate the revenue required for a new parking structure. On-street paid parking in the downtown core provides staff, the Transportation Advisory Board, and the City Commission with a tool to efficiently fund and manage our parking supply and system without placing a new tax on businesses and properties, an SID does not. On-street paid parking provides the City an avenue to encourage other forms of transportation than single-occupancy vehicle trips, an SID does not. On-street paid parking provides revenue to fund infrastructure supporting alternative modes of transportation, an SID does not. On-street paid parking revenue can subsidize transportation programs for employees working downtown, an SID does not. Finally, the creation of an SID could unnecessarily delay the construction of a new downtown parking structure adding uncertainty and costs. If pursued, staff will determine the boundaries of any new district and create an assessment formula on the downtown business owners while complying with all required public noticing and protest periods. Delays in securing financing for the garage will delay construction. Given the current pace of inflation, rising construction costs, and labor scarcity, delays could yield significant cost increases. Delays in construction also diminish the bonding capacity of the Downtown Urban Renewal District.1 Reduced bonding capacity for the Urban Renewal District only increases the current funding gap for the construction of a second downtown parking. 1 Currently, the Downtown Urban Renewal Plan prohibits the District from issuing new bonds against the remaining Tax Increment. In order to issue new bonds, the City Commission would need to amend via ordinance the Urban Renewal Plan to eliminate this provision. Additionally, the current bond holder would have to agree to the issuance of new debt and remove a no new bonds provision. 16 Page 5 of 10 Whereas, staff has received positive and encouraging feedback from more than one financial institution of the ability to sell revenue bonds in a creative fashion based solely on the on-street paid parking revenue pro forma and the current projections of the Downtown Urban Renewal District’s tax increment financing. This will allow construction of a new downtown parking structure to begin sooner than initially expected perhaps as soon as summer 2023. If given the green light by the City Commission, staff remains confident a garage could open by the end of 2025 as promised during the February work session. The other financing option discussed repeatedly during the February Work Session was securing grants from the state or federal governments. Staff met with our grant consultants and staff from our United States Senate offices to determine if any grants are applicable and available. Neither the consultants nor Senate staff could identify a grant program which is typically used to fund parking structures. In fact, many grant programs are moving away from funding parking infrastructure. Rather, more grants appear available for programs to incentivize alternative modes of transportation. The Bridger Park Garage was funded in part through a $4 million grant from the Federal Transit Administration secured through an earmark Senator Max Baucus placed in the American Recovery and Reinvestment Act. The United States Congress has resumed a program for congressionally directed spending, commonly known as earmarks. No member of the Montana Congressional delegation has chosen to submit funding requests under the newly established earmark program. Montana was one of only three states to not receive any funding under this program. Downtown Engagement: In the winter 2021, staff engaged with downtown business owners, employees, and residents regarding parking issues in the downtown core. A key conclusion from the engagement was that staff should pursue policies based on data and keep the community informed of key decisions. For this reason, staff brought a recommendation of downtown, on-street paid parking to efficiently manage increasing demand and create new supply to the City Commission based on occupancy data collected in August 2021. During the February 2022 Work Session, the Commission requested an additional round of public engagement with the downtown community. Staff hosted five additional engagement sessions—two virtual and three in-person. More than 70 individuals representing various segments of the downtown community including residents, employees, and property and business owners participated. Full summaries of the engagement sessions can be found on our Engage BZN webpage. 17 Page 6 of 10 The sessions consisted of a 20-25 minute presentation substantially similar to the one shared with the City Commission on February 1, 2022. Participants asked clarifying questions regarding facts in the presentation. Then, facilitators from the City led the group through a conversation on the following three questions: 1. What benefits and unintended consequences do you see in creating an on- street paid parking environment in downtown Bozeman? 2. What are suggestions for steps to address those unintended consequences? 3. What is the most important issue to address with an employee permit program? (i.e. cost? availability?) Participant opinions ranged from staunchly opposed to the idea to enthusiastic supporters of on-street paid parking. Staff was very pleased with the mix of participants including business owners, residents, employees, university students, and transportation and parking professionals. The discussions led to staff placing a task order on the April 5, 2022 City Commission consent agenda to have the parking consultants research other employee permit parking programs across the country. The summary was shared with all participants in the community engagement and we received no substantive feedback on the summary. Employee Parking: The City Commission raised concerns during the February 2022 Work Session about how an on-street paid parking environment may impact employees, especially those in the service industry. Additionally, across all five community engagement session, participants consistently raised concerns about how on-street paid parking will impact downtown employees. In light of feedback from the community engagement sessions, staff directed the city’s parking consultant to further research employee parking options. They conducted a survey with more than 600 responses and constructed about 15 options for an employee parking program. At the end of July 2022, the City held two focus groups with about 20 participants to identify which options generated the most interest from downtown property owners, business owners, and employees. Participants had a difficult time settling on the best policies without certainty about the future of on-street paid parking in downtown Bozeman. Thus, staff decided to pause discussions on employee parking until the Commission determines whether or not to pursue on-street paid parking in downtown Bozeman. A key reason for the pause is uncertainty around the Commission using on-street paid parking revenues to subsidize parking and other transportation modalities for downtown employees. 18 Page 7 of 10 Downtown-Midtown-Cannery Circulator: A popular idea for expansion of transit to serve Downtown is to create a circulator called the Downtown-Midtown-Cannery circulator. The Commission directed the City Manager to have staff research the costs of the circulator and how long it would take to create a circulator program. Streamline staff informed City staff that a circulator route would cost $368,000- $400,000 annually and that routes have already been created for a circulator. For context, the estimate of a bond payment for a parking structure is $642,536 with parking in a better location with no increasing costs of operated a new transit line. Additionally, without paid on-street parking revenue, there is no revenue for the City to fund a circulator. If pursued in earnest, the City will need to enter into a final agreement with the Gallatin County for using part of the Gallatin County Fairgrounds for additional parking. Any agreement would likely involve significant capital investment for the parking lot to support the anticipated increase in use. STAFF RECOMMENDATION: Since the February 2022 work session, staff has undertaken a great amount of effort to consider and discuss the effects on-street paid parking as a curb management tool will have on downtown business owners, downtown employees, visitors to downtown, and residents in the neighborhoods surrounding downtown. Staff remains in conversation with representatives of the neighborhood associations and members of the downtown community on these issues. For several reasons, staff remains steadfast in the conclusion that on-street paid parking is necessary for effective management of downtown parking and remains aligned with broad strategic goals of the Commission. First, in December 2020, the City Commission voted 5-0 (recorded comments and vote on page 11) to approve the City’s Climate Plan. Climate Plan Goal 4.J.7 clearly states, “An abundance of free parking encourages and enables the decision to drive versus walking, biking, carpooling, or using transit.” Not accurately pricing parking undermines all the other efforts the City is taking to reduce greenhouse gas emissions and leave a livable planet for future residents of the City of Bozeman. Second, we have researched extensively what effects paid parking has had on the business health of downtowns. The Victoria Transportation and Parking Institute states the following about the economic impacts of paid parking on businesses and commercial districts: Businesses, particularly retailers, often object to parking pricing out of fear that it will discourage customers. However, experience indicates that customers will pay for parking in areas with attractive businesses and pedestrian environments (Kolozsvari and Shoup 2003). Many of the most 19 Page 8 of 10 successful commercial districts have priced parking, and many commercial centers with abundant unpriced parking are economically unsuccessful. Figure 3 illustrates a positive relationship between parking prices and regional economic productivity. This does not mean that increasing parking prices will always increase economic productivity; they both tend to increase with more compact, urban development. However, efficient parking management, including pricing, help create commercial environments that maximize economic productivity: affordable, compact, multi-modal commercial centers. Critics often claim that parking pricing spoils local economic activity by discouraging customers, but it actually provides both economic benefits and costs. It increases turnover which makes finding a parking space easier, reduces the number of parking spaces required at a location which provides financial savings, and can reduce traffic problems such as congestion. By insuring that a parking space is always available, which facilitates freight deliveries, business trips and errands. The additional revenues can finance improvements such as new street furniture, more cleaning and security, and marketing, or reduced taxes and rents. Negative impacts (reduced customers) are generally local, involving shifts in the location of business activity within a region, but do not reduce total regional economic activity. The introduction of priced parking to a commercial area often appears harmful because negative impacts (loss of existing customers) tend to be concentrated and visible, while economic benefits (new customers attracted by more convenient parking, additional future development, or tax 20 Page 9 of 10 reductions) tend to be dispersed and long-term. A shop owner is more likely to hear older customers say, “I’ll quit visiting your store to avoid parking fees” than to hear new customers say, “I’ll start visiting your store because a parking space is easier to find.”2 Additionally, a case study of Old Pasadena, California’s implementation of on-street paid parking shows how paid parking in Old Pasadena, California contributed to significant reinvestment in downtown Old Pasadena. Further, sales tax revenue increased significantly in Old Pasadena after the implementation of paid parking in 1993 in comparison to Plaza Pasadena, a shopping mall with free parking. In fact, in 2001, the Plaza Pasadena mall was demolished to make way for a development similar to Old Pasadena. Further, staff conducted a relatively exhaustive search of communities that have implemented paid parking, but then decided to remove it. The only example staff found in the last 15-20 years where on-street paid parking was reversed and meters removed is in San Pedro in 2009 in the midst of the Great Recession. However, more meters were installed in other parts of San Pedro. In some places, like Santa Fe, New Mexico, the installation of meters that accept debit and credit cards caused revenue to go up and citations issued to go down. Thus, customers and employees had greater certainty and were not guessing whether or not enforcement would cite them for a fine. The final benefit of on-street paid parking for curb management is that the strategy provides staff with an additional tool to manage the demand side of the supply/demand equation. Time and again, cities have used pricing in their downtown on-street paid parking systems to encourage people to choose other modes of transportation. When walking or biking is free, but parking has a monetary value, neighbors and residents may opt to walk or bike, thus reducing single occupancy vehicle trips—the number one contributor to greenhouse gas emissions. Less vehicle trips downtown equals less need for parking in the downtown core which will allow for a more efficient development pattern on our most valuable real estate in the City. A more efficient development pattern could lead to more walkable neighborhoods and more regular public transit, thus even further reducing the single-occupancy vehicle travel. A reduction in single-occupancy vehicle travels leads to reduced greenhouse gas emissions which can helps slow the worst impacts of climate change. 2 https://www.vtpi.org/parkpricing.pdf 21 Page 10 of 10 Actively managing parking is a truly virtuous cycle which will allow the Citizen Advisory Boards, City Commission, and staff to achieve the goals established in plans such as the City of Bozeman Strategic Plan (Goal 2.2, Page 3; Goal 4.2 Approach C, page 6; Goal 7.5, page 11) Community Plan (Goal DCD-3.6, page 34), Downtown Bozeman Improvement Plan (Goal 3, pages 44-51) Downtown Strategic Parking Management Plan (Strategy 20, page 32; Strategy 21, page 34; Strategy 24, Page 41), and the Climate Plan (Focus Area 4, Action 4.J.7). CONCLUSION: Bozeman is a unique community with a thriving downtown supported by tourists and locals alike. Staff’s proposal for a seasonal on-street paid parking model allows revenue capture from tourists and those who choose to access downtown when demand is highest and parking supply is scarcest. Staff, the Transportation Advisory Board, and the City Commission can use on-street paid parking revenue to create more infrastructure and services that benefit community members. The only limit on said infrastructure and services is the creativity of staff, the Transportation Advisory Board, and the City Commission. Lots of issues facing the downtown meet the rational nexus standard with parking required to receive surplus revenue—employee parking, additional parking supply, sidewalk and street light improvements, bicycle infrastructure, electric vehicle charging. Therefore, there are opportunities to use the newly captured revenue from individuals choosing to pay for parking. On-street paid parking is a key policy evolution for Bozeman to continue to transition from a large town to a small city. While it is impossible to predict every outcome of this change, staff is confident that the benefits of a more sustainable community, more active transportation management practices, and additional revenue generate by the systems users will better support downtown employees and improve the city’s transportation infrastructure without increasing the tax burden on the downtown business community. 22 NEXT STEPS FOR PARKING SUPPLY AND DEMAND MANAGEMENT IN BOZEMAN, MONTANA Ask:Commission Ask Staff Action Year Round Model How much revenue could be generated in a year-round model? The Cost Recovery Plus model generates $2.47 Million minus $571K in operating costs nets the City $1.9 Million in projected revenue (~650K would go to a new garage), Garage Site Recommendation Secure Site Control for Second Garage City Commission approved an MOU with the County for lot behind County Courthouse on September 20, 2022 Parking Benefit Zones Staff to determine when to put in a Parking Benefit Zone Transportation Advisory Board adopted Resolution 2022-03 clearly laying out steps for PBZ creation and including more citizen involvement Staff is ready to implement when needed Grants to fund future supply Staff look at grants to fund future supply Researched grants with consultant, determined there are no good options Will continue to monitor grant options and apply if they become available Downtown Engagement Commission request staff engage with downtown business owners and other interested parties on the proposal for paid parking in downtown Bozeman In March and April 2022, Staff held five engagement sessions, both virtual and in- person with more than 75 participants from the downtown community. The Engagement led directly to staff holding an additional two focus groups and survey on creating an employee parking program. 23 Employee Parking Commission raised concerns about how employees would experience paid parking downtown During engagement sessions, the downtown community raised similar concerns to the Commission. Because of these concerns, staff worked with our parking consultant to survey the downtown community on an employee parking program. Our consultant developed 15 options for employee parking programs and staff hosted a focus group of downtown employers and employees to get their feedback on the options. The employee program is on hold until Commission decides whether or not to pursue paid parking downtown. Downtown—Midtown—Cannery Circulator Commission asked the City to determine what would go into a circulator option HRDC and Streamline could stand up circulator quickly at a cost of $368,000- $400,000 on an annual basis Routes already designed Would need to enter agreement with County on using their property and possibly make upgrades to the county parking lot 24 Page 1 of 6 MEMORANDUM REPORT TO: Bozeman City Commission FROM: Jeff Mihelich, City Manager Mike Veselik, Economic Development Program Manager RE: Parking Supply and Demand Management Work Session MEETING DATE: February 1, 2022 AGENDA ITEM: Work Session RECOMMENDATION: Provide direction to the City Manager and staff 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. 25 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 shared regular 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. 26 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 27 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 28 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. TRANSPORTATION ADVISORY BOARD MEETING: On Wednesday, January 26, 2022, the Transportation Advisory Board received a substantially similar memo, 29 Page 6 of 6 report from Walker, and presentation. After questions, public comment, and a board discussion of the presentation, the Board voted 7-0 to recommend the City Commission support paid parking as a strategy to manage parking supply and demand in downtown Bozeman. CONCLUSION: Staff has conducted data collection showing a need for increased parking supply and a more active management strategy for parking demand. Paid on 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. 30