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Report regarding a Resolution of the City Council of the City of South San Francisco amending the Fiscal Year 2026-27 Master Fee Schedule to incorporate parking meter rates and parking permit fees approved by the Parking Place Commission for the Downtown Parking District. (Marissa Garren, Public Works Program Manager)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution amending the Fiscal Year 2026-27 Master Fee Schedule to incorporate the parking meter rates and parking permit fees approved by the Parking Place Commission.
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BACKGROUND/DISCUSSION
South San Francisco Municipal Code (SSFMC) Section 11.56.020 states that parking rates and time limits for parking within the downtown parking district are approved by resolution of the Parking Place Commission and published in the City’s Master Fee Schedule. On June 9, 2026, the Parking Place Commission adopted a resolution approving revised parking meter rates and parking permit fees for Fiscal Year 2026-27. The purpose of this item is for the City Council to amend the Fiscal Year 2026-27 Master Fee Schedule to incorporate those approved changes.
Parking rates within the downtown parking district have not been adjusted since 2020. Parking management best practices suggest that parking rates be routinely adjusted (up or down) to achieve the following objectives:
• Cover normal annual increases in operating costs of the system for which a fee is assessed (e.g., on-street meter system, off-street lot and/or garage).
• Provide for future needs. This would include normal capital planning and projected growth in the system.
• Reflect market demand. Parking occupancy levels, including the industry-standard 85 percent occupancy target, may be used as a decision-making factor when evaluating parking rate adjustments.
• Consider rates in place in comparable cities to maintain competitiveness.
The City recently completed a downtown parking study conducted by Kimley-Horn and Associates to evaluate parking conditions within the downtown parking district. The study area included on-street parking along Grand Avenue and Linden Avenue, City parking lots, and the Miller Parking Garage. Parking observations were conducted on both a weekday and weekend between 8:00 a.m. and 9:00 p.m.
Parking Place Commission Recommendation
At its regular meeting held on June 9, 2026, the Parking Place Commission reviewed the proposed parking meter rate and parking permit fee adjustments and adopted a resolution approving revised parking meter rates and parking permit fees for Fiscal Year 2026-27. Consistent with the City's fee adoption process, the City Council is now being requested to amend the Fiscal Year 2026-27 Master Fee Schedule to incorporate those rates.
The Commission's recommendation was based on the findings of the Downtown Parking Study, current parking utilization levels, and the need to address increasing operational, maintenance, technology, and administration costs associated with managing the City's parking system.
Parking Study Findings
The parking study found that downtown parking demand reached very high occupancy levels during peak periods:
• Weekday peak parking occupancy reached approximately 83 percent at 6:00 p.m.
• Weekend peak parking occupancy reached approximately 96 percent at 12:00 p.m.
Parking experts generally recommend maintaining parking occupancy near 85 percent to allow drivers to reasonably locate available parking spaces. The study noted that occupancies exceeding 95 percent may lead to circulation conflicts, inefficient parking operations, and reduced user experience.
The study also documented several parking-related challenges within the downtown area, including:
• Illegal parking on streets and within parking lots
• Delivery and service vehicles occupying multiple parking spaces
• Vehicles stopping within travel lanes
• High parking demand during evening business hours
• Parking facilities operating at or above full occupancy during peak periods
In addition, the study found that the Miller Parking Garage generally maintained available capacity while on-street parking spaces were heavily utilized. The study recommended considering pricing strategies and parking management techniques to encourage greater utilization of the garage and improve parking turnover within the downtown area.
Hourly Parking Rates (On-Street and Off-Street)
Based on the findings of the downtown parking occupancy study, staff recommends revisions to parking meter rates as shown in Attachment 1 to the proposed resolution.
The Parking Place Commission approved the hourly parking rate adjustments shown in Attachment 1 based on the findings of the Downtown Parking Study. The City Council's action will amend the Fiscal Year 2026-27 Master Fee Schedule to reflect those rates for parking within the downtown parking district.
Additional rules for hourly parking rates include:
• Minimum and maximum hourly rates are established in the Master Fee Schedule
• Rate adjustments related to parking demand may increase by up to $0.25 at a time
• Rates may vary by time of day based on parking demand
Parking Permits
The Parking Place Commission also approved revised parking permit fees shown in Attachment 1 for permit parking within the downtown parking district. These fees are now presented for incorporation into the Fiscal Year 2026-27 Master Fee Schedule.
Additional rules for permit fees include:
• Minimum and maximum permit fees are established in the Master Fee Schedule
• Monthly permit fees may increase by up to $10 per month at a time
• Costs related to maintaining an online permit system may be included in permit fees
Proposed Parking Rate Adjustments
Parking rates within the downtown parking district have not been adjusted since 2020 despite increases in maintenance, technology, permit administration, and operating costs associated with the City's parking system. The proposed adjustments are intended to support parking management objectives identified in the Downtown Parking Study while helping offset these increasing costs.
The Parking Place Commission approved the parking meter rate and parking permit fee adjustments shown in Attachment 1 for the downtown parking district based on the findings of the Downtown Parking Study and industry best practices.
The proposed parking rate structure maintains a pricing hierarchy in which the most convenient curbside parking spaces are priced higher than public parking lots and the Miller Parking Garage. This strategy is intended to encourage short-term parking turnover at curbside spaces while directing longer-term parking activity toward garages and surface lots.
The recommended $0.25 per hour increase represents a modest adjustment intended to improve parking turnover while remaining within the range of parking rates observed in comparable Peninsula downtown districts. Even with the proposed increase, South San Francisco's parking rates remain generally consistent with rates charged in comparable Peninsula downtown districts.
Staff is not recommending an increase to the Miller Parking Garage hourly parking rate at this time. The downtown parking study found that the garage generally maintained available capacity while on-street parking spaces experienced significantly higher utilization. Maintaining the current garage rate is intended to encourage greater use of the facility and shift longer-term parking demand away from highly utilized curbside parking spaces. Staff may evaluate future garage rate adjustments as utilization increases and parking demand patterns evolve.
Justification for Proposed Rate Adjustments
The proposed parking rate adjustments are intended to improve parking turnover, encourage utilization of available off-street parking facilities, and better balance parking demand with available parking supply within the downtown parking district. Adjusting parking rates is a common parking management strategy used to encourage use of alternative parking facilities, such as public parking lots and parking garages, while supporting the efficient use of available parking resources.
Maintaining the current Miller Parking Garage hourly rate is intended to encourage greater utilization of available off-street parking facilities and reduce demand on highly utilized curbside parking spaces. The proposed parking rate adjustments are one component of a broader parking management strategy. Consistent with recommendations identified in the Downtown Parking Study, the City has updated parking availability counter signage associated with the Miller Parking Garage and is currently pursuing additional wayfinding improvements to increase awareness and utilization of available off-street parking facilities. Together, these measures are intended to improve parking turnover, reduce parking congestion during peak periods, and enhance parking availability throughout the downtown district.
Staff will also continue evaluating parking enforcement and operational measures identified in the Downtown Parking Study to improve parking compliance, support parking turnover, and enhance parking availability throughout the downtown district. Parking revenue supports the operation, maintenance, and improvement of the City's downtown parking facilities and parking management systems.
Public Notification
Consistent with the City's parking rate implementation procedures, approved parking meter rates and parking permit fees will be publicly posted on the City's website for a minimum of 30 days prior to implementation.
FISCAL IMPACT
The proposed parking meter rates and parking permit fee adjustments are expected to generate additional revenue for the Parking Fund to help offset increasing operational, maintenance, technology, and administration costs associated with managing the City's downtown parking system. Actual revenue impacts will depend on parking utilization levels and customer behavior.
Current annual parking revenue is approximately $1.02 million. With the proposed rate adjustments, annual revenue is projected to increase to approximately $1.38 million, representing approximately $360,000 in additional annual revenue, or a 35 percent increase. The FY 2026-27 Parking Fund (Fund 720) budget is approximately $1.65 million. The proposed adjustments will improve the Parking Fund's financial position but will not fully address the existing structural shortfall. Based on current projections, the Fund has an approximately $630,000 gap between current annual parking revenue and budgeted expenditures. The proposed rate adjustments are projected to address approximately $360,000, or 57 percent, of this gap, leaving an estimated remaining shortfall of approximately $270,000.
In addition to generating revenue, the proposed rate adjustments are intended to improve parking turnover, encourage greater utilization of available off-street parking facilities, and support more efficient management of parking resources within the downtown parking district. Revenue generated through the parking program supports the operation, maintenance, and ongoing improvement of the City's parking facilities and parking management systems.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
The proposed parking meter rates and parking permit fee adjustments support the City Council's Major Focus Area of Quality of Life by promoting a sustainable retail environment through improved parking availability, increased parking turnover, and enhanced access to downtown businesses and services. The proposed rate structure is intended to encourage efficient use of available parking resources, including the Miller Parking Garage, while helping to address parking demand within the downtown parking district.
The proposed rate adjustments also support the Major Focus Area of Modern and Sustainable Organization by advancing the Key Strategy of ensuring financial sustainability. Additional parking revenue will help offset increasing operational, maintenance, technology, and administration costs associated with managing the City's parking system while supporting the long-term financial sustainability of the Parking Fund.
CONCLUSION
On June 9, 2026, the Parking Place Commission adopted a resolution approving revised parking meter rates and parking permit fees for Fiscal Year 2026-27 within the downtown parking district based on the findings of the Downtown Parking Study and the City's parking management objectives. The proposed rate adjustments represent the first modifications since 2020 and are intended to improve parking turnover, encourage greater utilization of available off-street parking facilities, and support the long-term financial sustainability of the City's downtown parking system. Staff recommends that the City Council adopt the attached resolution amending the Fiscal Year 2026-27 Master Fee Schedule to incorporate the parking meter rates and parking permit fees approved by the Parking Place Commission for the downtown parking district, as set forth in Attachment 1.
ASSOCIATED DOCUMENTS:
1. FY 2026-27 Parking Rates
2. Amended Master Fee Schedule
3. PowerPoint Presentation
4. Resolution (File 26-1974)