Item B: Update on Street and Lighting Fee Development

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?The amount of parking at a site can be directly observed and measured and is probably easier to understand as a basis for the fee than are average trip generation rates. ?Amount of parking provides a relatively simple basis for the fee. Once an estimate or inventory of parking units in the community is established, a parking-based fee could be relatively simple and less costly to administer and maintain than a trip generation methodology. ?A parking-based fee may provide some incentive for development of fewer parking spaces and more efficient use of developable land. ?A parking-based fee can be somewhat flexible; a more detailed fee methodology can be developed, reviewed by council and refined to address specific needs and concerns. Key Consideration for Fee Structure and Rates Through the work of the subcommittee and subsequent review by staff, several key considerations for the fee structure and rates have been identified. These factors and assumption will need to be further developed and refined to enable drafting of an implementing ordinance and methodology and include the following: ?Inclusion or exclusion of on-street parking; ?Treatment of sites with limited or no on-site parking relying on public parking structures and other shared parking for a significant portion of parking needs; ?Methods of measuring or estimating parking quantity at customer’s sites; ?Treatment of areas available or used for parking without delineated (marked) spaces; ?Establishing rate structure for residential customers – assumptions about the number of parking spaces associated with residential customer sites; ?Develop criteria and allowances for adjustments, credits and reductions; and, ?Determine final revenue requirements, uses and limitations on funds derived from fee; Each key factor is further discussed below. Parking Types to Include in the Basis for the Fee (on-street & shared parking) Discussion of the fee structure with the subcommittee suggested that off-street parking only should be included in the basis for the fee. This is appropriate from the perspective that the amount and availability of on-street parking in not directly controlled by customers of the utility. Staff recommends that on-street parking be excluded from parking areas allocated to customers by the street utility fee. Another factor to consider is treatment of shared parking, both commercially- and publicly-owned surface and structure parking. Within parking-exempt areas such as Downtown and West University areas, a majority of customers rely on shared parking to account for their site’s vehicular parking needs. Allocating this portion of parking to the appropriate customers requires additional consideration beyond measured on-site parking areas or delineated spaces. Charging a public or private entity providing parking services not associated with an onsite use would not be consistent with the principle that parking is used as the measure of transportation system usage. A shared parking site is not a destination itself and as such not the generator of the use of the system, rather other customer’s sites are the destination generating parking demand and usage of the system. Not accounting for these parking areas and the associated customers’ use of the system would shift costs to other customers or result in significant under-collection of the target revenues. B,SUF P27 ATTACHMENT TREET TILITY EE AGE OF