Submitted by: Hollingsworth
Submitting Department: Legislative
Agenda Section: Action
Item Title:
title
FY2021 Legislative Item - Parking Schedule Maximum Fine Modification
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Suggested Action:
recommendation
I move that the Mayor and Council restrict the maximum fine for nonpayment of parking violations to no more than one and a half (1.5) times the value of the original fine after thirty (30) days of nonpayment. I further move that the Mayor and Council authorize the City Administrator or her designee to negotiate amendments to any agreements impacted by this adjustment provided that such negotiations do not modify the existing base fee/fine schedule.
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Summary Background:
Rates for unpaid parking violations are escalated at a rate of four (4) times the original fee if the citation is not paid within thirty (30) days of issuance. In addition, after an extended period administrative flag fees are placed on vehicles for each unpaid citation further increasing the cost of the original violation. While this rate structure may be intended to encourage payment for fear of increased costs, it is predatory on those with the inability to pay and inconsistent with the City’s local economic development efforts. This motion allows for more time to pay the value of the original fine that takes into consideration the nature of work, particularly those in the low-wage workforce.
Next Steps:
Council discussion and possible action.
Fiscal Impact:
If future parking revenues are cut or reduced as a result of legislative actions, the other financial impacts will be (1) the General Fund will have to subsidize parking operations to sustain its existence, or (2) the expected loss revenues could force cutting the operations, increasing fees, or reductions in staff.
We are assessing the projected financial impact of the revised fee schedule by applying these assumptions to actual data from FY 2017 - FY 2020. Based on an initial review of late payment dates of receipt, we anticipate that the revised fee schedule will result in a citation gross revenue reduction of 25% - 30% or $133,500 - $160,200 annually. Assuming that any adopted revised schedule will be implanted on July 1, 2021 (FY2022), we will need to assess the actual total gross and net reduction in revenue.
Based on the actual reduction in parking revenue (average of citation revenue from FY17 - FY20) and in lieu of supplementing the City’s parking program with General Fund Revenue, it may be necessary for the City Council to consider, in FY2023, increasing the hourly rate of the City’s parking meter program and/or assessing fees for the Residential Parking Zone Program.
City Administrator Comments:
The legislative item was reviewed by the City Administrator, City Treasurer, and Director of Community & Economic Development (CED) and analysis was performed to assess the following:
• Best practices, program history, and administrative procedures
• Financial impacts, programming, and revenues
During the Council’s discussion of this item on December 7, 2020, the Council expressed a desire to (1) provide more advanced notice of pending late fees and (2) revise the fee structure while maintaining two late fee escalations. CED Staff reviewed these comments and have worked to develop a response that is:
• Responsive to the City Council’s request and discussion;
• Balances the fiscal realities of costs and maintaining high level of service;
• Avoids creating a structural program deficit;
Proposed Revisions to Parking Late Fee Schedule
• Late fee 1: 20-days at 50% of original fine - notice sent at 15-days
• Late fee 2: 30-days at 100% of original fine - notice at 23-25 days
Community Engagement:
N/A
Strategic Goals:
Goal 3 - Promote a Safe and Vibrant Community
Legal Review Required?
Pending