HomeMy WebLinkAboutItem B: Private Parking Lot Operators - Fines and Practices
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Work Session: Private Parking Lot Operators – Fines and Practices
Meeting Date: November 30, 2011 Agenda Item Number: B
Department: Planning and Development Staff Contact: Jeff Petry
www.eugene-or.gov Contact Telephone Number: 541-682-5079
ISSUE STATEMENT
This work session will provide information on private parking lot operations in the City of Eugene.
BACKGROUND
The City of Eugene operates three (3) public surface parking lots and eight (8) public parking structures.
The City issues parking citations based on the Eugene City Code in City-owned parking lots and in the
public right-of-way.
On private property, property owners may choose to allow only customer or tenant parking during
certain parts of the day or all the time. They may also choose to allow members of the public to park
their cars on their property, based on certain conditions. These conditions may include a fee to park.
Currently, the City does not regulate parking fees or fines/penalties charged by private property owners.
Property owners often contract with private parking management services to manage and enforce the
conditions they have placed on their parking property. A property owner may also choose to contract
with tow companies to remove unauthorized vehicles from a private lot (e.g. dedicated parking spaces at
an apartment complex). The City of Eugene does regulate towing. Many private lots charge a fee for
parking, and some enforce the time limit and fee requirements by giving violators an invoice that
resembles a parking ticket.
In the City of Eugene, Diamond Parking Services is the largest private parking operator that owns
parking lots and contracts with private property owners to manage their parking lots. Other private
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businesses that charge fees or issue parking citations include the 5 Street Public Market, through their
in-house Northwest Parking Services business, and Peace Health which issues its own parking fines.
There are numerous examples of property owners working together to meet their multiple parking needs.
One example is the Very Little Theater that utilizes evening parking at a nearby commercial complex to
park attendees for their after-hours events. In return, the employees of the commercial complex can park
on the theater’s lot during the day. Given the large number of parking spaces in Eugene, this is a
common scenario.
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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
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lot, then the City receives an amount equal to the daily parking rate ($5 at the Franklin lot.)
Diamond Parking keeps the remainder of the fee ($25) as a fee for enforcement of the lot if the
citation is paid.
The City of Eugene also has about a dozen contracts with private parking lot owners to enforce
their lots. The City’s contract requires the property owner to post signs, call the City when a
vehicle violates the sign’s parking terms, meet parking enforcement on site, and point out the car
to a parking enforcement officer, who then issues a parking citation. The citation is adjudicated
through the City’s Municipal Court and all revenue is retained by the City of Eugene.
RELATED CITY POLICIES
Sustainable Development: A community that meets its present environmental, economic and social
needs without compromising the ability of future generations to meet their own needs.
Effective, Accountable Municipal Government: A government that works openly, collaboratively,
and fairly with the community to achieve measurable and positive outcomes and provide effective,
efficient services.
Fair, Stable, and Adequate Financial Resources: A government whose ongoing financial resources
are based on a fair and equitable system of revenues and are adequate to maintain and deliver
municipal services.
COUNCIL OPTIONS
This is a work session item for discussion; no options have been developed at this time.
CITY MANAGER’S RECOMMENDATION
No recommendation at this time.
SUGGESTED MOTION
No motion at this time.
ATTACHMENTS
No attachments.
FOR MORE INFORMATION
Staff Contact: Jeff Petry
Telephone: 541-682-5079
Staff E-Mail: jeff.t.petry@ci.eugene.or.us
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