Item B: Private Parking Lot Operators - Fines and Practices

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Private Parking Questions The City Council Work Session Request Form asked several questions that are addressed below. 1.Can the City regulate or restrict [parking fines charged by for-profit parking companies]? The City could explore placing limits on the fines/payments that a lot owner may charge for vehicles parked without paying or staying past the allowed time. The owner of a private parking lot has the right to exclude the public from their property. If properly signed, by parking in the private parking lot, a member of the public agrees to pay for using the parking lot for a certain amount of time. If the parker fails to pay, or leaves his or her car in the lot longer than the amount of time for which he or she has paid, the owner of the private lot may assert a claim for payment. These are not "tickets," or "citations." They are more like bills or invoices for payment for using private property to park. The City of Portland regulates “Pay and Park and Non-Pay Private Parking Facilities” through city ordinance (Chapter 7.24.020; Charter, Code & Policies.) The City and private parking lot operators worked together to develop this code. The parking lot owner pays an annual lot registration fee to the city ($200), regardless of the lot size. The amount of penalty that private lot owners may issue is tied to the City of Portland parking citation rates. The City of Portland (Revenue Bureau) also serves as a final adjudicator for privately issued parking penalties. The City of Portland has 168 active lots registered. It is estimated that there are about 75 privately managed lots in the City of Eugene where either a private parking operator owns the land or manages parking on behalf of a public or private land owner. 2.Could the City restrict towing companies to act only when the business is open? The City of Eugene has regulations to deter and prevent abusive tow practices in Eugene Code 4.980-4.988. It is highly likely that an attempt by the City to limit when a private property owner can remove an unauthorized vehicle from their property would be challenged. 3.Is it in the City’s interest to have unused lots available to possible customers of nearby businesses? In the interest of efficient use of land, the City can encourage lot owners to share their parking and possibly develop incentives for them to do so. It is unlikely that the City can order a property owner to let other people use the property unless the City compensates the owner in some way. 4.Do the businesses that own the parking lots get a share of Diamond’s fines for use of the property towing rights? A typical private parking contract allows for revenue sharing after deducting parking services (enforcement, permit management) expenses. The types of revenue shared are specific to each contract. As an example, the City of Eugene has leased surface parking lots to Diamond Parking in the past and currently leases a parking lot at 901 Franklin Boulevard to Diamond Parking. The City’s agreement with Diamond Parking allows a net of expense revenue sharing of daily parking fees. If a citation is issued by Diamond Parking on the City-owned portion of the parking S:\CMO\2011 Council Agendas\M111130\S111130B.doc