Item 16 - Parking Enterprise Fund Updates for Meters and Structures

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Parking Enterprise Fund Updates for Meters and Structures March 18, 2025 Page 3 a. Regular season rates from September 1-May 31 (9 months): at $2 per hour for meters, $1.50 per hour for structures b. Peak season rates from June 1-August 31 (3 months): $4 per hour for meters, $3 per hour for structures. This would generate approximately 30% to 45% of additional revenue during peak season. 4. Background information about meters within the Willard neighborhood: a. The Willard neighborhood was initially designed to attract professionals working in the Civic Center area, with the expectation of reduced parking demand due to alternative transportation options. To maintain parking availability for residents and prevent overcrowding from Civic Center visitors, meters were installed. However, the development did not draw tenants willing to pay higher rent levels and instead rented to families at market rates, leading to a greater need for parking than originally anticipated. Consequently, jurors and other visitors continue to park in the surrounding neighborhoods. b. Based on City Council direction, staff is recommending the removal of parking meters fronting residential, which is generally north of 10t" Street. Meters will remain in front of commercial areas in Willard. c. Any future modifications to the meters will be presented to the City Council for approval through an ordinance change, which will amend Section 36-398 of the Santa Ana Municipal Code. Historical Background Parking meters and structures have been in operation since the 1980s, implemented to support maintenance, operational costs, and improvements in Downtown Santa Ana and the surrounding meter district. Over the years, parking rates have gradually increased, but have remained stable since 2019, with rates set at $1.00—$2.00 per hour for meters and $1.50 per hour for parking structures. Additionally, in 2019, the City Council approved a 2-hour grace period for parking in structures to encourage increased visitation to the area. In July 2020, the CDA assumed management of the Parking Enterprise Fund, taking responsibility for parking meters, parking structures, and downtown improvement initiatives. From 2021 to the present, the impacts of the pandemic and streetcar construction led to significant reductions in parking fees, including free parking offerings. Parking structures have provided free parking Monday through Friday from 7 a.m. to 5 p.m. and a 2-hour free parking period during evenings and weekends, with structures operating 24/7. Parking meters were either temporarily removed or made free in response to the pandemic and construction needs. In June 2024, the City Council requested a detailed review of the Parking Enterprise Fund's budget to assess revenue, expenditures, and long-term sustainability, in light of a fund deficit caused by the pandemic and streetcar construction. This review led to the