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Report regarding a resolution establishing parking meter and parking permit rates for Fiscal Year 2026-27. (Marissa Garren, Parking Place Commission Secretary)
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RECOMMENDATION
Recommendation
It is recommended that the Parking Place Commission adopt a resolution establishing revised parking meter and parking permit rates for Fiscal Year 2026-27.
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BACKGROUND/DISCUSSION
Municipal Code Section 11.56.020 states that parking rates and time limits are approved by resolution of the Parking Place Commission. Parking rates within the downtown parking district have not been adjusted since 2020. Best parking practices management suggests that parking rates are routinely adjusted (up or down) to assure the following:
• 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 need. This would include normal capital planning and projected growth in the system.
• Reflect market demand. This would use the 85 percent occupancy standard as a decision-making trigger for adjusting rates.
• 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 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 may approve changes to hourly parking rates at any regular meeting. Once approved, the new rates must be posted on the City’s website for at least 30 days before they take effect.
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
Staff also reviewed parking permit rates, which have not been adjusted since 2020. The proposed permit rate adjustments are shown in Attachment 1 to the proposed resolution and are intended to help offset increasing operational, maintenance, technology, and administrative costs associated with managing the City's parking permit program.
The Parking Place Commission may approve changes to parking permit rates at a regular meeting. New permit rates must be posted on the City’s website for at least 30 days before they take effect.
Additional rules for permit rates include:
• Minimum and maximum permit fees are established in the Master Fee Schedule
• Monthly permit rates 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 have not been adjusted since 2020 despite increases in maintenance, enforcement, technology, permit administration, and operating costs associated with the City's parking system. The proposed adjustments are intended to partially offset these increased costs while supporting parking management objectives.
Based on the parking study findings and industry best practices, staff recommends the parking meter and permit rate adjustments shown in Attachment 1 to the proposed resolution.
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.
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 rates are intended to better balance parking demand with available parking supply within the downtown parking district.
The parking study concluded that South San Francisco exceeds effective parking capacity during weekend peak periods and experiences high occupancy during weekday evening periods. The study specifically identified a need for increased parking turnover and/or additional enforcement during peak demand periods.
Adjusting parking rates is a common parking management strategy used to improve parking turnover and encourage use of alternative parking facilities, such as garages and public parking lots. Maintaining the current Miller Parking Garage rate is intended to encourage greater utilization of available off-street parking resources and reduce demand on highly utilized curbside parking spaces.
Parking revenue supports the operation, maintenance, enforcement, and improvement of the City’s downtown parking facilities and parking management systems.
City Council Approval
The rates approved by the Commission will not become final unless and until approved by the City Council. If the Commission approves changes to the rates for street parking and parking permits, staff will seek Council approval for the changes. If Council approves the changes, they will be reflected in the Master Fee Schedule.
Public Notification
In accordance with Municipal Code Section 11.56.020 and the City’s parking rate adjustment procedures, any approved parking rate changes will be publicly posted on the City’s website for a minimum of 30 days prior to implementation.
FISCAL IMPACT
Parking rates and permit fees have not been adjusted since 2020. The proposed adjustments are expected to generate additional revenue to help offset increasing operational, maintenance, technology, and enforcement costs associated with managing the City's downtown parking system. Actual revenue impacts will depend on parking utilization and customer behavior.
Staff will continue monitoring parking occupancy, turnover, and operational performance following implementation of any approved changes.
CONCLUSION
It is recommended that the Parking Place Commission adopt a resolution establishing revised parking meter and parking permit rates for Fiscal Year 2026-27 as shown in Attachment 1 to the proposed resolution. Adopting the resolution will support improved parking management, parking turnover, and parking availability within the downtown parking district while ensuring the approved rates and permit fees are incorporated into the Fiscal Year 2026-27 Master Fee Schedule. The proposed adjustments represent the first parking rate and permit fee modifications since 2020 and support both effective parking management and the long-term financial sustainability of the City's downtown parking system. If the Commission approves changes to the rates, staff will subsequently seek Council approval for the amendments.
ASSOCIATED DOCUMENTS:
1. FY 2026-27 Parking Rates
2. Resolution
3. PowerPoint Presentation