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LTC 118-2006 Special Event Flat Parking Rate ce MIAMI BEACH OFFICE OF THE CITY MANAGER NO. L TC# 118-2006 LETTER TO COMMISSION TO: FROM: DATE: SUBJECT: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Managel April 24, 2006 ' I/- 0 SPECIAL EVENT FLAT PARKIN TE - $10.00 The City of Miami Beach Parking Department's rates are set by ordinance (CMB Ordinance No. 2001-3291). As the last rate adjustment was in 2001, the Parking Department has engaged a consultant, Timothy Haahs and Associates, Inc. to perform a parking rate analysis. This analysis will be finalized in about one month at which time the analysis and any recommendations for adjustment will be presented to the City Commission for a full discussion. While the full rate analysis will be presented in the near future, one of the preliminarily results of the rate analysis has been to identify and confirm that the City's Special Event Flat Parking Rate is one of the lowest event parking rates in their review of special event parking rates for comparable destinations, venues, and events. A listing of special event parking rates for comparable destinations and events are induded below. Location Bayside Market Place NASDAQ Tennis Event AAA (American Airlines Arena) Bank Atlantic Center (Florida Panthers) Orlando (Orange County) Convention Center Miami Parking Authority Lot 19 Broward County Convention Center Coconut Grove Playhouse Miami Parking Authority Garage NO.3 (for AAA) Orange Bowl Events Knight CenterlMiami Convention Center Special Event Flat Rate $20.00/$10.00 $20.00/$10.00 $15.00 $15.00 $15.00 $15.00 $12.00 $10.00 $10.00 $10.00 $ 8.00 Currently, the City's Parking Department's Special Event Flat Parking Rate is $5.00. This rate has been in effect since 1996. The Parking Department prides itself in providing superior service levels; however, these service levels come at a cost. Operating expenses have escalated dramatically. For instance, the passage of the Living Wage Ordinance is now effective in all labor contracts, including cashiers, attendants, and supervisors; security; landscape maintenance; and janitorial services. In some instances, these increases have been in excess of 50%. Furthermore, from a parking and transportation management standpoint, special event flat parking rates should be just below market rates. In addition to City rates being well below comparable regional venues, market conditions for special event flat parking rates within the City have increased significantly as well. Private parking operators have posted special event flat parking rates in the City ranging from $10.00 to $25.00. Severely devalued public parking encourages longer term parkers to take up valuable parking spaces and discourages turnover, which in turn exacerbates traffic congestion as valuable parking spaces are used for longer term parking by merchants, employees, etc. Parking turnover is an essential component to viable and efficient system. Market conditions coupled with the rising operational costs and increased service levels make an adjustment to the Special Event Flat Parking Fee appropriate. The city's parking rate ordinance authorizes the City Manager to adjust Special Event Flat Rate Parking Fees, as described below: (L) Exceptions: 1. Special Events Parking: The City Manager may establish a flat rate for special event parking at municipal parking facilities directly servicing a special event. The City Manager may exercise this option for the amount of days of the special event including the day before and the day after the event. In addition, the Transportation and Parking Committee shall consider and make a recommendation upon the application of the proposed flat parking rate for each special event prior to implementation, but such recommendation shall not be binding upon the City Manager. At no time may the flat rate, at any facility, be more than 25% above the maximum daily parking rate for that facility or no more than $10.00 daily (7th Street Garage is exempted with a maximum daily rate of $14.00). A special event must have, at a minimum, three (3) of the following conditions anticipated in order for the City Manager to exercise this option: a. A special event is defined as an event on public property sanctioned and permitted by the City's Office of Arts, Culture, and Entertainment and/or an event on private property deemed to anticipate the demand for City services set forth in subsection (b) - (d) below. b. A special event with an anticipated demand for parking that will saturate all parking within 1,500 feet of the event, as determined by the Parking Director. c. A special event with an anticipated demand for parking that will require supplemental park and ride shuttle service, maps, brochures, and other informational materials and/or ancillary transportation/parking services. d. A special event with an anticipated demand for City services, including police, fire, and parking, that requires the declaration of a parking emergency by the Mayor and Commission through the passage of an enabling resolution. In order to keep pace with rising operational costs; ensure the viability of the parking system and its future growth; and remain competitive with the current market, effective May 1 , 2006, the Special Event Flat Parking Rate shall be $10.00. As required by the rate ordinance, this item was included on the agenda and discussed during the Transportation and Parking Committee meeting on April 10, 2006, and was unanimously approved by the Committee. JMG/RCM/SF Ping/alVsaul/cmo/SpecialEventRatelncreaseltcapril2006.ltc \ .. .L ~ ~c. 3QI\ L,~, , 9 \ : \\ H~ S Z Jd~ 90 03/\L383