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Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 18, 2025
TOPIC: Parking Enterprise Fund Updates for Meters and Structures
AGENDA TITLE
Parking Enterprise Fund Updates for Meters and Structures
RECOMMENDED ACTION
1. Approve parking rates for City -owned parking structures to $2.00 per hour with
annual increases of $0.50 per hour until a maximum of $3.00 per hour is attained.
2. Direct staff to prepare a Resolution establishing parking rates for the City -owned
parking structures and reaffirming the City Manager authority to modify future
parking structure rates after the third annual increase as needed.
3. Approve the parking meter rates to $2.50 per hour with annual increases of $0.50
per hour until a maximum of $3.50 per hour is attained.
4. Direct staff to amend the meter ordinance establishing parking meter rates and
hours of operation, eliminating metered parking fronting residential in the Willard
Neighborhood, and authorizing the City Manager to modify future meter rates after
the third annual increase as needed, to mirror the authority of the City -owned
parking structures.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
At the February 18, 2025, City Council meeting, the Community Development Agency
(CDA) held a work study session on the Parking Enterprise Fund, covering:
• Parking meters and structures' operations and background
• Budget data for meters, structures, and downtown enhancements
• Council considerations for subsidized parking initiatives
• Key points on meter ordinance adjustments
At the conclusion of the work study session, Council requested suggestions on parking
rates for structures and meters, hours of operations for meters, information about
Parking Enterprise Fund Updates for Meters and Structures
March 18, 2025
Page 2
certain meter district areas, options to reduce operational costs, and grace period
options to be presented at the March 18, 2025 Council meeting.
The recommended actions reflect input received and budgetary needs, with flexibility to
incorporate additional Council considerations.
Establishing parking rates for City -owned structures at $2.00 per hour, with annual
increases of $0.50 per hour until a maximum rate of $3.00, would support operational
costs and necessary repairs for equipment. A resolution to formalize the structure
parking rates will be presented at a future Council meeting.
Adjusting parking meter rates to $2.50 per hour, with increases of $0.50 per hour until a
maximum rate of $3.50, removing meters in the Willard neighborhood, and transitioning
to contactless payment options —such as mobile apps and pay stations —will enhance
operational efficiency, reduce costs, and strengthen the Parking Enterprise Fund. To
support these improvements, an updated ordinance addressing meter operations, rates,
and the removal of meters in the Willard neighborhood will be presented at a future
Council meeting. It is anticipated that the estimated revenue for the first year increases
is $1.5 million.
Council Requested Information
1. Peak time usage at structures and meters:
a. Weekdays from 11 am-1 pm
b. Weekends from 5pm-7pm
2. Meter district areas with higher levels of coin payments:
a. Approximately 10 blocks have a higher percentage of coin payments between
51 %-89% compared to other areas that rely more on credit card payments or
mobile app payments
Blocks/Areas
Percentage of Coin usage
100 E. 3rd
52%
100 E. 4th
57%
400 E. 4th
52%
100 W. 4th
59%
200 W. 5th
89%
600 N. Bush
56%
100 N. Spurgeon
77%
500 N. Spurgeon
58%
500 N. Sycamore
51 %
3. Peak -season variable rates for structures and meters:
Staff reviewed potential options for peak -season variable rates and, if desired, could
propose the following:
Parking Enterprise Fund Updates for Meters and Structures
March 18, 2025
Page 3
a. Regular season rates from September 1-May 31 (9 months): at $2 per hour
for meters, $1.50 per hour for structures
b. Peak season rates from June 1-August 31 (3 months): $4 per hour for meters,
$3 per hour for structures. This would generate approximately 30% to 45% of
additional revenue during peak season.
4. Background information about meters within the Willard neighborhood:
a. The Willard neighborhood was initially designed to attract professionals
working in the Civic Center area, with the expectation of reduced parking
demand due to alternative transportation options. To maintain parking
availability for residents and prevent overcrowding from Civic Center visitors,
meters were installed. However, the development did not draw tenants willing
to pay higher rent levels and instead rented to families at market rates,
leading to a greater need for parking than originally anticipated.
Consequently, jurors and other visitors continue to park in the surrounding
neighborhoods.
b. Based on City Council direction, staff is recommending the removal of parking
meters fronting residential, which is generally north of 10t" Street. Meters will
remain in front of commercial areas in Willard.
c. Any future modifications to the meters will be presented to the City Council for
approval through an ordinance change, which will amend Section 36-398 of
the Santa Ana Municipal Code.
Historical Background
Parking meters and structures have been in operation since the 1980s, implemented to
support maintenance, operational costs, and improvements in Downtown Santa Ana
and the surrounding meter district. Over the years, parking rates have gradually
increased, but have remained stable since 2019, with rates set at $1.00—$2.00 per hour
for meters and $1.50 per hour for parking structures. Additionally, in 2019, the City
Council approved a 2-hour grace period for parking in structures to encourage
increased visitation to the area.
In July 2020, the CDA assumed management of the Parking Enterprise Fund, taking
responsibility for parking meters, parking structures, and downtown improvement
initiatives. From 2021 to the present, the impacts of the pandemic and streetcar
construction led to significant reductions in parking fees, including free parking offerings.
Parking structures have provided free parking Monday through Friday from 7 a.m. to 5
p.m. and a 2-hour free parking period during evenings and weekends, with structures
operating 24/7. Parking meters were either temporarily removed or made free in
response to the pandemic and construction needs.
In June 2024, the City Council requested a detailed review of the Parking Enterprise
Fund's budget to assess revenue, expenditures, and long-term sustainability, in light of
a fund deficit caused by the pandemic and streetcar construction. This review led to the
Parking Enterprise Fund Updates for Meters and Structures
March 18, 2025
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scheduling of a work study session during the City Council meeting on February 18,
2025.
The recommended actions will allow the City to generate revenue, as parking has taken
general fund subsidies in the last five (5) years in the total amount of $9.5 million
dollars.
FISCAL IMPACT
There is no fiscal impact at this time.
Submitted By: Michael L. Garcia, Executive Director of Community Development
Approved By: Alvaro Nunez, City Manager