TO: Mayor and Members of City Council
THRU: Michael Gibson, Interim Assistant City Manager
FROM: Sheila Thomas-Ambat, Public Services Director
Brian McGill, Assistant Public Services Director - Traffic Services
Taylor Floyd, Budget Director
DATE: August 3, 2026
RE:Title
Parking Program Recommendations
Title
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COUNCIL DISTRICT(S):
Council District(s)
District 2 - CM Davis
b
Relationship To Strategic Plan:
Goal 4: Financially Sound City Providing Exemplary Services
Executive Summary:
During Fiscal Year 2026-27 (FY27) budget discussions Council reduced the General Fund support of the Parking Fund by $250,000, and directed staff to identify changes in the Parking Fund that would provide revenue to support operations. Staff recommend a phased approach: first, implement targeted changes with minimal community impact; then, work with the City’s parking contractor to present a broader set of recommendations mid-year. The contractor’s recommendations require additional data analysis and modeling before they can be finalized. These initial staff recommendations are based on currently available data, developed in coordination with the Budget and Evaluation Department.
The initial recommendations include increasing the Hay Street Parking Deck special event rate from $5 to $10, adjusting parking citation fees to better align with peer municipalities and simplify the structure, and converting the Bow & Ann Lot from permit-only to paid parking. Together, these changes are estimated to generate approximately $80,000 in additional annual revenue in a full fiscal year.
Background:
Fiscal Year 2025-26 has not yet closed, so the figures below remain subject to change. FY26 actual revenues total approximately $600,000 and expenses approximately $912,000. During the FY27 budget process, staff were directed to move the City's parking program toward higher cost recovery.
To achieve this objective, staff anticipate implementing revisions in two phases.
The first phase is anticipated to be completed in early September and will consist of changes staff believe can be implemented with minimal disruption to the community.
The second phase is anticipated to be presented to Council midyear FY27, once the City's parking contractor, currently being selected through an ongoing RFP process, has completed its review and issued recommendations for improving services, increasing revenue, and reducing costs.
The recommendations for the first phase are detailed below.
Special Event Rate
The Hay Street Parking Deck special event rate was initially set at $10. On May 13, 2019, Council reduced the rate to $5, consistent with the rate charged at all other City-owned or City-maintained surface lots and parking decks.
Patrons of the Hay Street Parking Deck have expressed surprise that the $5 special event rate covers the entire day, noting that many other municipalities charge substantially higher event rates. The majority of special-event parking revenue is generated by SEGRA Stadium baseball games. Because the Hay Street Deck is the closest parking facility to the stadium, it functions as premium parking. As customers are offered a the same rate at the Hay Street Deck as elsewhere, the Hay Street Deck frequently reaches capacity before other facilities.
While the $5 special event rate applies to all City-maintained lots, enforcement has historically been concentrated at the Winslow Lot, City Hall Lots 1 and 2, the Franklin Street Parking Deck, the Bow Commons Lot, and the Ray Avenue Lot, balancing staffing costs against expected revenue.
Staff have also observed that, because on-street parking remains free during these events, drivers circle nearby blocks searching for an open space to avoid paying for parking.
In a February 5, 2025 discussion with the Downtown Alliance (DTA), staff understood there to be general support for raising the Hay Street Parking Deck's special event rate to $10. This position was reaffirmed by the DTA in April 2026. The rationale is that a higher rate at the Hay Street Deck will direct visitors seeking lower-cost parking toward facilities farther from the stadium, distributing demand more evenly across the system.
Staff recommend increasing the Hay Street Parking Deck special event rate from $5 to $10. This change alone is projected to generate approximately $30,000 in additional revenue annually.
Parking Citations
A review of parking program metrics identified "Overtime Street" (Code 16-315) as the most frequently issued violation. This citation applies when a customer pays for parking, the paid time expires, and the vehicle remains parked without payment for additional time.
The current fine for this violation is $15.00 and has not been revised since 2013. A broader review found that fines for several other violations have not been updated since 1986 or earlier.
To evaluate the City's fee structure against current best practices, staff conducted a peer review of ten comparable municipalities: Charlotte, Raleigh, Greensboro, Durham, Winston-Salem, Cary, Wilmington, High Point, Concord, and Asheville.
This review found that most peer municipalities do not assess two violations currently on the City's fee schedule: "Judgment Fees" and "Repeat Overtime Violation." Staff recommend eliminating both violations and amending the Code of Ordinances accordingly.
The review further found that the City's parking violation fees are generally lower than those of peer municipalities. To support the goal of revenue neutrality, staff recommend increasing citation fees to align more closely with peer city averages. Detailed recommendations and comparative data are provided in the attached "Parking Violation Fee Recommendations" and "Parking Violation Fee Comparison" documents.
Staff recommend citation fees as detailed in the attached schedule. Based on historical citation volume, this change is projected to generate approximately $50,000 in additional revenue annually.
Parking Lot Transitions
Staff also evaluated potential changes to how certain parking lots are administered and accessed. In this context, a "transition" refers to converting a lot from permit-only to paid parking, from paid to permit-only, or to unenforced status.
Based on available metrics and performance indicators, staff identified five lots that generate little to no revenue, or insufficient revenue to cover the cost of contracted enforcement:
• Russell Lot
• RCW Lot
• Donaldson Lot
• Maxwell Lot
• Bow & Ann Lot
These lots were selected for review based on revenue performance; other City facilities may likewise not fully cover their enforcement costs. Each of the five lots presents distinct circumstances, summarized below.
Russell Lot: A permit-only lot serving primarily the FAST Transit Center, generating no direct revenue by design. Staff recommend no change to its current operation.
RCW 1 Lot: An hourly, publicly accessible lot that also provides contractually required spaces for tenants of the RC Williams Building (formerly PWC). Any change would require review of existing contractual obligations, which staff are currently evaluating. No change is recommended at this time.
Donaldson Lot: An hourly, publicly accessible lot. Following the County's removal of the surface lot in front of the courthouse, staff did not observe a substantive increase in Donaldson Lot usage-potentially due to walking distance, limited public awareness, or the County directing traffic to a leased lot near First Presbyterian Church. Approximately 36 spaces at this location are paid for under permit by nearby businesses; converting the lot to free, unenforced parking would eliminate this permit revenue. The lot is also designated for the hospitality permit program, which allows downtown employees to purchase reduced-rate permits. Staff recommend no change to its current operation.
Maxwell Lot: Currently subject to a two-hour limit with no parking fee, which limits revenue generation. This lot serves the Transportation Museum; removing the time limit in favor of paid hourly parking could discourage museum visitors, while eliminating the time limit entirely could result in all-day use by downtown employees at the expense of museum patrons. Staff recommend no change to its current operation.
Bow & Ann Lot: A permit-only lot tied to the tenant at 200 Green Street (formerly Wells Fargo). With the building currently vacant, lot usage is minimal. Staff recommend converting this lot from permit-only to paid hourly parking. The associated revenue impact has not yet been quantified.
Summary
With increasing the Special Event Fee for the Hay Street Parking Deck to $10, increasing the parking citations as recommended, and converting Bow & Ann Lot to become an hourly parking lot, staff expect an increase in parking program revenue of approximately $80,000 in a full fiscal year. Additional options to increase revenues will continue to be reviewed, with a second set of recommendations to come at the mid-point of our current fiscal year.
While the estimated revenue increase of $80,000 reflects a full fiscal year, actual revenue realized during the current fiscal year is expected to be lower for two reasons: the special event rate adjustment will not take effect until after the conclusion of the baseball season, and the revised citation fees will be in effect for two fewer months than a full fiscal year. Accounting for these factors, staff estimate the revenue increase for the current fiscal year at approximately $60,000. This estimate, developed in consultation with the Budget Department, remains preliminary and subject to revision.
Issues/Analysis:
Council has requested staff move the parking program towards full cost recovery. The changes recommended with this presentation will generate additional revenue to offset the cost of parking operations.
Budget Impact:
Incidental cost that will be absorbed by the Signs & Pavement Markings supply budget for the change to the Bow & Ann Parking Lot signs. Staff estimate these changes will generate approximately $80,000 in additional revenue over a full fiscal year.
Options:
Option 1 - Approve recommended revisions to the Fee Schedule and parking lot transition and add to the August 24, 2026, Consent Agenda for final approval.
Option 2 - Do not approve the recommendations and provide staff with further direction
Recommended Action::Recommended Action
Option 1 - Approve recommended revisions to the Fee Schedule and parking lot transition and add to the August 24, 2026, Consent Agenda for final approval.
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Attachments:
Parking Program Recommendations - Presentation.pdf
Parking Violation Fee Comparison.pdf
Parking Violation Fee Recommendations.pdf