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File #: HCC-162-FY21    Version: 1 Name:
Type: Action Item Status: Passed
File created: 12/3/2020 In control: City Council
On agenda: 12/21/2020 Final action: 12/21/2020
Title: FY2021 Legislative Item - Parking Schedule Maximum Fine Modification
Sponsors: Candace Hollingsworth
Indexes: Legislative, Policy
Attachments: 1. Chapter 114 Vehicles and Traffic, 2. Memo - FY2021 Legislative Item – Parking Schedule Maximum Fine Modification
Related files: HCC-328-FY21

Submitted by: Hollingsworth

Submitting Department: Legislative

Agenda Section: Action

 

Item Title:

title

FY2021 Legislative Item - Parking Schedule Maximum Fine Modification

end

 

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.

end

 

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