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2 EXECUTIVE SUMMARY The purpose of this study was to conduct a parking market rate analysis of pay parking facilities surrounding the Manchester area. The market rate analysis was conducted by obtaining current hourly, daily and monthly rates for similar pay parking facilities in the Manchester area. The study area included similar local parking facilities in the immediate area surrounding the Manchester area as well as similar regional parking facilities specifically related to the Justice Center. This study provides an analysis of the findings of comparable parking rates and corresponding parking rate recommendations for the Manchester parking facilities. The local comparable parking rate analysis included a study area that extended through Orange and expanded to surrounding cities including Anaheim, Garden Grove, and Santa Ana. A total of 17 pay parking facilities were identified in the study area for the local comparable rate analysis. The study identified the primary facilities that charge the public for parking included hotel, medical, office, commercial, and event. The parking rates varied for each facility. The regional comparable parking rates analysis included a broad study area that included county pay parking facilities in Los Angeles County, Riverside County, San Bernardino County, and San Diego County. Five pay parking facilities were selected for the regional comparable rate analysis. The parking rates for the regional facilities varied for each jurisdiction. The analysis for the study included assessing the current pay parking rates for the Manchester area to determine if they are comparable to the market rate. The Manchester facility operates one parking structure for visitors located at 313 The City Drive and one parking structure for employees located at 343 The City Drive. The hourly rate is $2.00 per hour and the daily maximum is $12.00 per day. Monthly parking is available in the visitor parking structure at a monthly rate of $ After reviewing both the local and regional parking facilities rates, it is recommended that the Manchester facility rates are adjusted to be competitive with the comparable parking market rates. Recommendations for parking rates at the Manchester facilities are as follows: Page i Page 2 of 15

3 Daily parking rates should be increased from the current daily maximum rate of $12.00 per day to $16.00 per day. The hourly rate should be increased from the current rate of $1.00 per 30 minutes to $2.00 per 30 minutes. Monthly parking rates should be increased from the current monthly rate of $65.00 per month to $90.00 per month. A parking rate analysis should be conducted on a more frequent basis every two to three years at a minimum. This does not mean that parking rates are increased each time that they are evaluated, but that the evaluation occurs to determine if a change in rates is warranted. Reviewing and adjusting rates once every 10 to 15 years is too infrequent. A more frequent analysis and small, more incremental rate adjustment is desired and recommended. Page ii Page 3 of 15

4 INTRODUCTION The County of Orange desired a parking rate analysis of its parking facilities in the Manchester area. Kimley-Horn and Associates, Inc. was selected to conduct a parking market rate analysis for pay parking facilities surrounding the Manchester area. In a typical parking market rate analysis, there are three different strategies used to develop the appropriate parking rate pricing structure. The three strategies include: An assessment of prevailing parking fees in the area (what are the prevailing parking fees of similar types of projects in similar areas); An analysis of potential impact fees during the immediate near future (what has impacted fees in the years since the last rate increase); and A review of the impact local, regional, and state regulations has on cost recovery (what should be the time intervals for reviewing parking rates and cost recovery). These strategies are used to determine and test the validity of the parking rates within the market and are used to analyze parking rates that users will accept. Additionally, these three strategies provide the business case for establishing parking rates and provide the policy basis for establishing appropriate rates. These three strategies were utilized while conducting the market rate analysis for the Manchester Area. PROJECT OVERVIEW The County of Orange Lamoreaux Justice Center is located at 341 The City Drive Orange, CA The Justice Center is surrounded by supporting judicial facilities including Juvenile Hall and the Manchester Office Building Probation Department. This location is commonly referred to as the Manchester area. The Manchester area is served by two parking structures located across the street from the Justice Center at 313 The City Drive and 343 The City Drive. The Manchester parking facility located at 313 The City Drive is for visitor parking and the parking facility located at 343 The City Drive is for employee parking only. Page 1 Page 4 of 15

5 Parking rates at the Manchester facility have not been adjusted since During this time period parking operating costs, as with any public parking facility, have increased year over year. Further, other surrounding parking facilities are capped due to the County also capping its rates, impacting the entire local market. Therefore, a market rate analysis was needed to assess the parking fees of the surrounding pay parking facilities. The study area included similar local parking facilities in the immediate area surrounding the Manchester area as well as similar regional parking facilities specifically related to the Justice Center. The following report summarizes the findings of comparable parking rates and provides corresponding parking rate recommendations for the Manchester parking facilities. METHODOLOGY The market rate analysis was conducted by obtaining current hourly, daily and monthly rates for similar pay parking facilities in the Manchester area. This information was collected by visiting parking facilities as well as through online research. Furthermore, phone interviews were conducted with various parking operators and property management personnel to obtain additional information not posted in parking facilities or available on websites. The pay parking facilities included in the comparable parking rate analysis were selected based on the proximity to the Manchester area. The local comparable parking rate analysis included a study area that extended through Orange and expanded to surrounding cities including Anaheim, Garden Grove, and Santa Ana. Whereas, the regional comparable parking rates analysis included a broader study area that included county pay parking facilities including Los Angeles County, San Diego County, San Bernardino County and Riverside County. The parking facilities selected for this study included pay parking facilities only. However, surrounding the Manchester area were many parking facilities that currently do not charge for public parking. Our study identified that though these facilities did not charge the public for parking, parking was not free but rather parking fees were incorporated into tenant leases. These types of parking facilities were not included in the comparable rates analysis. Page 2 Page 5 of 15

6 FINDINGS As previously mentioned, both a local and regional comparable parking rate analysis were conducted for this study. The following presents the current hourly, daily and monthly parking rate data for these facilities. Local Parking Facilities There were a variety of pay parking facilities that surround the Manchester area. The study area extended to Orange, Anaheim, Garden Grove, and Santa Ana. Our study identified that the primary facilities that charge the public for parking included hotel, medical, office, commercial, and event. The hourly, daily, and monthly parking rates for the local facilities are summarized in Table 1 and the location of the facilities is shown on Figure 1a and Figure 1b. Hotel Hotel pay parking rates were typically higher to restrict use of the facility for on-site users only. Daily parking rates were usually less for guests than the daily maximum. Two hotel pay parking facilities were selected in the study area for the comparable rates analysis. The hourly rate averaged approximately $6.00 per hour and the daily maximum was $15.00 per day. There was no set monthly parking rate for either hotel. Medical Medical pay parking rates were typically lower than the other pay parking facilities located in the study area. Five medical pay parking facilities were selected in the study area for the comparable rates analysis. The hourly rate ranged from $2.00 to $3.00 per hour and the daily maximum ranged from $6.00 to $12.00 per day. Monthly parking rates varied by medical campus. Employee parking was provided at the expense of the medical campuses for most of the facilities. Page 3 Page 6 of 15

7 Map No. Hotel 1 DoubleTree Hotel 2 Hyatt Regency Orange County Medical 3 Children's Hospital of Orange County (CHOC) 4 St Joseph Cancer Center 5 St Joseph Pavilion 6 St Joseph Providence Building 7 UC Irvine Medical Center Office 8 Centrum North 9 CHOC Commerce Tower 10 City Tower 11 Health Care Agency 12 Orange Executive Tower 13 Union Bank Square 14 US Internal Revenue Services Commercial 15 Anaheim Gardenwalk 16 Park Tower Facility Name Address Type of Facility 100 The City Drive Harbor Blvd Garden Grove, CA S Main Street 1000 W La Veta Avenue 1140 W La Veta Avenue 1100 W Stewart Drive 101 The City Drive 1120 W La Veta Avenue 505 S Main St 333 City Boulevard West 405 W 5th Street Santa Ana, CA S Lawson Way 1518 W La Veta Avenue 801 W Civic Center Drive Santa Ana, CA W Katella Avenue Anaheim, CA W Santa Ana Blvd Santa Ana, CA Table 1 Parking Rates for Local Parking Facilities Time Increments Hourly Daily Maximum Daily Monthly Surface Lot $3.00/30 minutes $6.00 $15.00 $13.00 N/A Surface Lot $6.00 first 30 minutes $2.00/additional hour (1) $15.00 $15.00 N/A Parking Structure $1.00/30 minutes $2.00 $6.00 Patient and Vistior Parking Only Parking Structure $2.50/hour $2.50 $7.50 N/A N/A Parking Structure $2.50/hour $2.50 $7.50 N/A N/A Parking Structure Free first 30 minutes $ minutes to 4 hours $ over 4 hours $4.00 4hrs or less $7.00 over 4hrs Parking Structure $1.00/30 minutes $2.00 $12.00 $4.00-$6.00 $ $ Parking Structure $1.25/30 minutes $2.50 $10.00 PDM Parking Structure $1.00/30 minutes $2.00 $10.00 PDM Parking Structure $1.25/15 minutes $5.00 $12.00 PDM Parking Structure $1.00/20 minutes $3.00 $15.00 PDM Parking Structure $1.00/15 minutes $4.00 $10.00 PDM Parking Structure $1.25/20 minutes $3.75 $11.25 PDM N/A N/A $55.00 (unreserved) $80.00 (reserved) $55.00 (unreserved) $80.00 (reserved) $60.00 (unreserved) $90.00 (reserved) $55.00 (tenants) $65.00 (non-tenants) $65.00 (unreserved) $95.00 (reserved) $35-$55 (unreserved) $65-$80 (reserved) Surface Lot $1.00/20 minutes $3.00 $20.00 PDM $ $75.00 Parking Structure Attachment A Free first 1 hour $3.00/hour - 2 to 4 hours $ to 12 hours $3.00/additional hour Visitors $3.00 (1) $24.00 Rates $12.00 for Convention Center Parking/Daily Permit Parking Structure $1.00/20 minutes $3.00 $15.00 PDM Other Users N/A $55.00 (tenants) $65.00 (non-tenants) (1) See time increments for specific rate breakdown N/A - Not Applicable PDM - Pays daily maximum or portion thereof Page 7 of 15

8 Table 1 Parking Rates for Local Parking Facilities Map No. Institutional Facility Name Address Type of Facility Time Increments Visitors Hourly Rates Daily Maximum Daily Other Users Monthly 17 Chapman University One University Drive Orange, CA Parking Structures/ Surface Lots $ hours $ hours $ hours (1) $10.00 $2.00 for Departmental Guests $300.00/year - Full-time Student/Faculty/Staff; $150.00/year - Part-time Student/Faculty/Staff; $110.00/year - Remote Lot Parking for Faculty/Staff Event 18 Angel Stadium of Anaheim 19 Honda Center 2000 Gene Autry Way Anaheim, CA E Katella Avenue Anaheim, CA Surface Lot N/A N/A $10.00 N/A N/A Surface Lot N/A N/A $ $25.00 N/A N/A (1) See time increments for specific rate breakdown N/A - Not Applicable PDM - Pays daily maximum or portion thereof Page 8 of 15

9 Attachment A Page 9 of 15

10 Attachment A Page 10 of 15

11 Office Office pay parking rates were the most uniform in the study area. Seven office pay parking facilities were selected in the study area for the comparable rates analysis. The hourly rate ranged from $2.00 to $5.00 per hour and the daily maximum ranged from $10.00 to $20.00 per day. Monthly parking rates were categorized by reserved and unreserved parking spaces; reserved parking spaces ranged from $65.00 to $90.00 and unreserved parking spaces ranged from $35.00 to $ Commercial Two commercial pay parking facilities were selected in the study area for the comparable rate analysis. The hourly rate was $3.00 per hour and the daily maximum ranged from $15.00 to $24.00 per day. Monthly parking rates ranged from $55.00 for tenants to $65.00 for nontenants. Institutional Institutional pay parking rates varied based on the duration of stay. One institutional pay parking facility was selected in the study area for the comparable rate analysis. A specific hourly rate was not defined for this facility; rather a flat parking rate was defined based on a predetermined window of time. The flat parking rate ranged from $2.00 for 2 hours to $5.00 for 12 hours. Parking permits were provided to faculty, staff, and students at an annual rate or portion thereof. Event Event pay parking rates were structured as a flat rate. Two event parking facilities were selected in the study area for the comparable rate analysis. The flat parking rate ranged from $10.00 to $25.00, with $25.00 being the rate for preferred parking. Regional Parking Facilities A regional market rate analysis was conducted to determine how the parking rates at the Manchester parking facilities compare to other Justice Centers. Five pay parking facilities were Page 8 Page 11 of 15

12 selected for the regional comparable rate analysis. The study area extended to Los Angeles County and Orange County. San Diego County and San Bernardino County parking facilities were assessed for the rate analysis; however parking for these facilities were either free or available through private parking facilities and, thus, were not included in the study. The hourly, daily, and monthly parking rates for the regional facilities are summarized in Table 2. As presented in Table 2, the pay parking rates varied for each jurisdiction. After careful review of this data, it was determined that the comparable regional justice center to the Manchester facilities is the Los Angeles Justice Center in Norwalk. Similar to the Manchester area, the Norwalk facility is located in an urbanized area and is not influenced by other parking rates. ANALYSIS The analysis for this study included assessing the current pay parking rates for the Manchester area to determine how they compare to nearby facilities and comparable Justice Center complexes. The Manchester facility operates one parking structure for visitors located at 313 The City Drive and one parking structure for employees located at 343 The City Drive. The hourly rate is $2.00 per hour and the daily maximum is $12.00 per day. Monthly parking is available in the visitor parking structure at a monthly rate of $65.00 per month. The Manchester parking facilities are open daily but are primarily used during the hours of operation of the adjacent judicial facilities. The Manchester judicial facilities operate on a typical work schedule Monday through Friday. In comparison to the local parking facilities rates, the Manchester facilities operate most similar to an office building. The hourly parking rate for the office building ranged from $2.00 to $5.00 per hour and the daily maximum ranged from $10.00 to $20.00 per day. In comparison to the regional parking facilities rates, the Manchester facilities operate most similar to the Norwalk Civic Center. The hourly rate for the Norwalk Civic Center is $8.00 per hour and the daily maximum is $16.00 per day. These rates suggest that the Manchester pay parking rates are currently operating below the market rate. Page 9 Page 12 of 15

13 Table 2 Parking Rates for Regional Facilities Rates Facility Name Address Type of Facility Norwalk Civic Center Pasadena Justice Center Pomona Justice Center Riverside Justice Center Civic Center Drive Norwalk, CA Ramona Street Pasadena, CA th Street (S of courthouse) Pomona, CA Various locations in Riverside, CA Parking Structure/ Surface Lot Parking Structure Time Increments Hourly Daily Maximum Daily Monthly $2.00/15 minutes $8.00 $16.00 PDM $ $2.00 first 20 minutes $ to 40 minutes $ over 40 minutes $3.00 after 4PM (1) $9.00 PDM $60.00 Surface Lot N/A N/A $6.00 N/A N/A Parking Structure Surface Lot Free first 90 minutes $1.00/30 minutes Visitors $2.00 $8.00 PDM PDM Other Users $60.00 (unreserved) $90.00 (reserved) $40.00 (unreserved) $90.00 (reserved) Notes Santa Monica Justice Center th Street Santa Monica, CA Parking Structure/ Surface Lot $1.50/20 minutes $4.50 $9.00 $9.00 $ $1.00/hour first 3 hours $3.00/additional hour (1) $12.00 $12.00 $ Rates effective January 1, 2013 (1) See time increments for specific rate breakdown N/A - Not Applicable PDM - Pays daily maximum or portion thereof Page 13 of 15

14 RECOMMENDATIONS Based on the data collection findings and analysis, recommendations for parking rates for the Manchester facilities are as follows: Daily parking rates should be increased from the current daily maximum rate of $12.00 per day to $16.00 per day. The hourly rate should be increased from the current rate of $1.00 per 30 minutes to $2.00 per 30 minutes. Monthly parking rates should be increased from the current monthly rate of $65.00 per month to $90.00 per month. A parking rate analysis should be conducted on a more frequent basis every two to three years at a minimum. This does not mean that parking rates are increased each time that they are evaluated, but that the evaluation occurs to determine if a change in rates is warranted. Reviewing and adjusting rates once every 10 to 15 years is too infrequent. A more frequent analysis and small, more incremental rate adjustment is desired and recommended. The market rate analysis resulted in a review of the historical data regarding parking rate increases, including daily and monthly rates. Based on the market rate analysis, it is recommended the daily maximum rate is adjusted from $12.00 to $16.00 per day. Provided the parking duration report of the Manchester parking facilities, the peak parking duration occurs between 2 and 3 hours and declines after 4 hours. Therefore, it is recommended the hourly rate is adjusted from $1.00 per 30 minutes to $2.00 per 30 minutes; the hourly rate adjustment would generate between $10.00 and $12.00 during the peak period and the daily maximum would be met before the decline in duration. In addition to adjusting the rates for hourly and daily parking, it is recommended the monthly parking rate is adjusted. The current monthly parking rate for the Manchester facility is $ A majority of the monthly parking spaces in the Manchester parking facility serve as reserved parking in a nested area. Based on the comparable rate analysis, reserved parking spaces range Page 11 Page 14 of 15

15 from $65.00 to $90.00 per month. Therefore, it is recommended that the monthly parking rate is adjusted from $65.00 to $ This monthly rate is competitive with the market analysis since the medical center located adjacent to the Manchester area currently charges an average of $75.00 per month and the Norwalk Civic Center charges $ per month. A summary of the current and proposed parking rates for the Manchester parking facilities are shown in Table 3. These parking rates should be reviewed for adjustment on a more frequent and consistent basis. Raising fees once every 10 years becomes challenging for public and user acceptance. Rather that gaining support for substantial hikes in fees once every 10 years, parking users are more willing to accept smaller, incremental fee increases every couple of years. Table 3 Manchester Parking Facilities Current and Proposed Parking Rates 30 Minutes Hourly Daily Maximum Monthly Current Proposed Current Proposed Current Proposed Current Proposed $1.00 $2.00 $2.00 $4.00 $12.00 $16.00 $65.00 $90.00 Page 12 Page 15 of 15

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