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PB Minutes - 6/17/15, Approved
PARKING BOARD
MINUTES
JUNE 17, 2015


A special meeting of the Salem Parking Board was held on Wednesday, June 17, 2015 at 5:00 pm. at 120 Washington Street, Salem, MA.  Present were Michael Caggiano, Elysia Allemann, J.P. Story and Rinus Oosthoek.  Also present was Assistant Parking Director Alan Sullaway and Finance Director Sarah Stanton.

Tim Doggett arrived later in the meeting.

  • APPROVAL OF MINUTES
Mr. Oosthoek made a motion to approve the minutes of June 1, 2015.   Mr. Story seconded the motion; all were in favor and the motion so carried.   

  • DISCUSSION AND VOTE REGARDING PROPOSAL FOR 25 RESERVED SPACES EACH AT MUSEUM PLACE AND SOUTH HARBOR GARAGES FOR $1500 ANNUAL FEE PER PERMITTED SPACE
Mr. Caggiano stated that this is a special meeting regarding a letter from Mayor Driscoll, dated June 3, 2015, which was read into the record.

Dear Board Members:
As part of our FY2016 City budget package, with your support, we would like to recommend some changes in the Museum Place and South Harbor garages. Specifically, we have developed a proposed program to set aside 25 spaces in each garage as reserved parking at a higher rate. The 25 spaces in each garage will be specially striped and will be located on the level of each garage immediately below the roof level. The proposal is to set the fee for a reserved spot at $1,500 per year, with the reserved spot permits being given out by lottery, should the number of applicants for either garage exceed 25. Applicants will be required to specify which garage they are seeking to reserve a space in.
The Parking Department is prepared to manage this new effort and we are working out the logistics of the applications, lottery or distribution process, and striping between that department and the Collector's Office, pending approval by the City Council and the Board.
A similar proposal was discussed, but never acted upon, several years ago as a means to offer a limited number of reserved parking spaces at a premium rate. We often hear from residents who want reserved parking, but it would not be affordable or practical to offer a reserved space without increasing the cost for the ability to have a year round, 24 hour reserved parking space in one of our downtown garages. We have limited the number of spaces to 50 out of a total of 1,139 combined available spaces in each garage (about 4%), with the idea of not wanting to take too many public spaces off line. Further, we fully expect that anyone reserving a space would most likely be a regular user who already parks in one of these facilities on a regular basis.
Lastly, current parking revenue for FY2015 YTD (excluding fines) is down 7.7% or $162,329, over the same period for FY2014. We believe this relates directly to implementation of the parking management plan, which sought to reduce the cost of garage parking to encourage long term parking in these facilities. That plan has worked well, but generally there is still capacity in our garages - with the exception of busy October weekends, some busy summer weekends and of course, during snow emergencies. I respectfully request your approval of these proposed changes at a special meeting so that the City Council may act on them as part of the FY2016 City budget package.
I would greatly appreciate your consideration of this request,
Sincerely,
Kimberley Driscoll,
Mayor

Mr. Doggett arrived at this time.

Ms. Stanton stated that this is a follow up to some concerns that came up over the winter.  There were a lot of residents who called complaining that they pay for a pass but don’t have a parking spot, which is where this conversation started.  She noted that the City is not committed to 25 spaces in each garage, and that, as it came up a the City Council meeting, it could be proportional such as 40 in Museum Place and 10 in South Harbor.  She noted that this is a pilot, a non-permanent test to see if people in the community are willing to pay.  She stated that at the Council meeting there was a question as to how busy are the garages.  Mr. Sullaway is logging down whenever the sign is put up saying that garages are full.  She noted that the log may be distorted because the City is currently doing waterproofing in Museum Place, for which there are blocked off spaces.  She stated that the dedicated spaces will not be new people, but will be those who park there anyway.  She stated that it will be a pilot for one full year and then will be revisited.

Mr. Caggiano asked if someone is already required to buy a pass, such as the Essex or Derby Lofts, can they forgo their requirement and buy the dedicated space.

Ms. Stanton stated that she thought it would come up depending on the lottery and would need to be taken up with their condo association.

Mr. Oosthoek stated that the pass would fulfill the commitment in their lease agreement and their deed.

Ms. Stanton stated that this is not a deeded space; it is a dedicated space for one year.  They will not own it.  When the year is over, it would be put back into the lottery if the City continues the program. She stated her understanding would be that the purchase may substantiate the commitment of the condo association, but it would not be discounted; it would be $1500.

Katherine Robinson, new on the Board of Directors of Derby Lofts, stated that they have to pay for 74 passes paid annually.  She asked if people want to join this program, can they make up the difference to the $1500.

Ms. Stanton replied in the negative.  She stated that one of the conversations at the City Council meeting was that people who purchased property in Derby Lofts or the Essex chose to purchase property that did not have guaranteed parking, but that there were a lot of locations in downtown Salem that also do not have guaranteed parking, such as the condos across form the YMCA, most of Williams Street and others.  She stated that many of those would likely also be interested in being in the lottery for dedicated spaces.  The cost would be full $1500.

Ms. Robinson asked the genesis of this and why the City is considering something that would kind of alienate them even further, speaking for her condo association.  She stated that she needed to understand why the program is necessity besides raising $75,000 per year.

Mr. Caggiano stated that one of the things they hear from residents of Derby Lofts and other condominiums that while they are required to purchase a pass, it doesn’t guarantee them a spot.  The question is if they are willing to pay a higher rate to guarantee a spot.

Mayor Kimberley Driscoll joined the meeting at this time.

Ms. Robinson stated that it looks to those who pay for a pass is that the City is putting a favor up for a price.

Ms. Stanton stated that the program is not being reviewed as a revenue stream.  The idea behind it is that constituents have consistently said that if they are paying a premium (often close to $1000) for a parking pass, they feel the space should be dedicated, such as during a snow emergency or during October when the garage is full.  She stated that they are responding to a need requested by constituents.  

Ms. Robinson questioned that shouldn’t the lottery be taken from that group.

Ms. Stanton replied that there are a lot of residents in the downtown that don’t have parking.

Mayor Driscoll thanked the Board for talking about the issue and stated that parking can be challenging at times.  She stated that certainly the program will produce a revenue stream, but they are trying to deliver a premium service for a little more than a premium price.  They do hear from lots of people during those frustrating times during a snow emergency or during October where they wish they had a reserved space.  She stated that they don’t want to transform the character of the garages.  They are public facilities that they want to maintain as public facilities.  She stated that it will be a pilot program for one year.  People who purchase a premium space at a premium price would probably be part of the group that is probably circling for a space and who use the garages on a regular basis; it will not be bringing in new people.  She noted that as much as it may be removing potential spaces, it is also removing people who are circling.  For the City, it is an opportunity to try to meet demand and it could be a revenue stream that could be useful to make improvements and upgrades to the garages.  They are doing waterproofing now at Museum Place Garage which is expensive.  She noted that they have made changes in shifts in the parking structure, which has been very successful, resulting in more use in the South Harbor garage for instance.  They are looking forward to collecting more data.  They have talked about bringing on a traffic and parking manager to bring both skill sets to what we do, including the dealing with and assessing the new parking regulations, as well as looking at the traffic issues which can be related.  She stated that she is very interested in seeing this proceed and built the revenue stream into the budget and felt it important to at least try it this year.  She added that it is not very often that both garages are filled, except busy nights in summer and weekends in October.

Ms. Robinson stated that she understood there has always been a kind of animosity concerning this.  She stated that she was told there couldn’t be designated spaces for those who are charged at Derby Lofts, because the garage is a public facility.  She questioned how she can explain that part of it is going to a lottery situation.  

Mr. Caggiano stated that 85-90% of the time the garages are not full and for those few times it is full, it gives those who are required to buy passes an opportunity to have a guaranteed space.

Mayor Driscoll stated that there was a movement at one point, especially when Derby Lofts first opened and even a little before that, where we had a policy written into zoning for permitting projects for facilities that did not have enough parking to support the new development they were producing, but yet we had public garages that weren’t at capacity, that we have allowed developers to build those units with the condition on the development that they purchase public garage parking spaces, with the idea that if people purchase those passes they would not take up on-street spaces.  The idea of the developer getting a permit to build units that had density without the required parking and with the requirement that anyone who lived there purchase a pass, but then having that pass be a reserved space, would result in a garage full of reserved spaces.  If we did that, there would be no more public garage space, but instead a lot of downtown residents who bought places that didn’t have a set-aside parking space would now have that.  She stated that what we are offering here is a pilot program that will not take away the character of the garages and will overwhelming be public spaces available to anyone and if more demand than spaces available, there will be some sort of lottery, which would have a public component.  To allow everyone who has a pass to have a reserved space would no longer make that garage public.  She stated that it is a sharing of spaces, noting that some people in Derby Lofts work during day and have their cars, so it interchangeable.  The spaces proposed will not be on the first row but will be the ones that may be not as desirable for people parking during the day.  They are trying to find a balance for those who want to reserve space at a premium cost and not take aware the character and necessity to have public space available for everyone else that might have a garage pass, might be paying by the hour, might be here for a wedding, might be here to go out to eat, might live downtown, etc.

Thomas Costagliola, who lives at Derby Lofts, stated that he was the senior project manager that developed Derby Lofts.  He stated that part of the animosity stems from all of the efforts he made to develop parking that were thwarted.  Originally, they wanted to put parking on the first floor, but they were required to put retail.  He stated that they bought 90 Lafayette Street to develop parking, but the City thwarted the efforts on that, as well.  The City was then willing to go along with elevators, but it could not get through the State; he still thinks this is a viable way.  He stated that ramp requirements with new handicapped code make garages almost impossible to build.  He stated that his goal is still to try to develop parking at Derby Lofts; it would entail using elevators, if the state would approve it.  He stated that the idea that the spaces be proportional to the garages is essential.  He asked if Derby Lofts could put in for any of Derby Lofts’ residents, rather than one space per license plate, because that parking space could be vacant a lot of the time and suggested a first come, first serve for Derby Lofts.

Mayor Driscoll stated that the concept would be that the City would lease a space for a year for $1500, and what you choose to do with that is up to you.  

Mr. Costagliola asked if his building could sign up for one or two spaces.

Mayor Driscoll replied in the affirmative.  She noted that there are people in the garages who never move their car, which is also eating up a space.

Mr. Costagliola stated that what exacerbates the situation is that there is no parking on the roof during snow emergencies, thereby reducing parking by one fourth.

Mayor Driscoll stated that, when there is as much snow as we had this winter, when people park there, the City cannot remove the snow.  She noted the City is always looking for ways to improve.

Mr. Costagliola agreed that except for Saturday nights and Halloween, the roof at South Harbor is mostly vacant.

Ms. Stanton stated that because of all the work they are doing in the garage, they have been talking about potentially some sort of solar canopy or roof to capture water and to help stop having to pay for waterproofing.  Feasibility will need to be determined.

Mr. Caggiano stated that this was before the Parking Board in the past.  He has comments as recent as 2011 from the Parking Board.  He stated since the Derby Lofts construction project is when he got involved in parking in Salem.  He noted that what the Parking Board has done along with the Planning Department with some of the changes that have been implemented, not everything is going to be smooth and we are never going to solve all of our problems.  He stated that it is not a perfect world of parking in Salem, but that he feels that the changes that we have  put forward have worked.  He stated that he feels there is more availability on the streets.

Mr. Doggett suggested it would be better to revisit and increase the rate and separate that issue from the parking issue.  He stated that then everyone is affected by the rate, not just a select group.  He was also concerned about reacting to a special interest group and providing them with a special interest, as opposed to the rest of the population.  He stated that, right now when the garage is near capacity, someone comes in and searches for place to park.  He questioned how they are they going to perceive going past spaces that are roped off and then not being able to find a space, due to an elite group that could afford the $1500.  He stated that he was not sure how to rationalize it.

Mayor Driscoll stated that the City is always trying to balance the needs of many and the needs of few.  She did not feel it is just be an elite group of downtown residential owners.  She felt it was also people who work here and that there are lots of different reasons why a person may want to invest a little bit more money to have a reserved space.  It is a premium service for a premium price.  She stated that the vast majority of spaces are still available for everyday folk to park.  She noted that there is a newly added MBTA garage, so there is a hope that there are less people circling around for a space.  She noted that some downtown condos pay a reduced rate and sometimes those cars never leave or leave infrequently – so they are getting a different type of bargain.  She noted that it is a pilot for a year so there is not an automatic right that they keep forever.  It is an increased value that you get that when it is busy, because you pay a little more.  She noted that the Essex owners pay $200 and some don’t leave that frequently, so for 90% of the time, the space is theirs.  She questioned if that is a fairness factor and if there should be an operating protocol that says you can’t keep your car in the garage over a certain amount of time.  She stated that there are lots of different needs - short term, long term, visitors and downtown residents - and there is lots of push and pull.  The City has identified data, used it to our benefit and have been successful with the garages being more full by reducing the prices.  She stated that the proposal is a revenue source pilot program that could be useful.  She stated that she feels that the City has already been down the path with looking at an option that people wanted (i.e. senior passes at $200) and that this is an option that people have asked for.  With respect to rates, she stated that she would want all the data including data collected from Nelson Nygaard regarding the on-street and garage occupancy and use that to inform any decisions.  She noted that it is working, and would not want to mess it up without having the data.

Mr. Oosthoek stated discussion at the City Council meeting last week included question on  lost revenue because there are a number of spaces that get quite a lot of revenue in October.  He would like to know more about the current daily occupancy over the last couple years.  He stated that feeling is that the pressure on the garages and street is increasing, and with new projects such as the new harbor hotel and the PEM expansion there will be more pressure.  He stated that there were still questions about the current parking plan and how to evaluate that.  He also had questions about spaces in the garage already not available, such as Zip Car and electric cars.  He asked how many passes are sold due to agreements with the Essex, Derby Lofts and other resident buildings.  He stated that his major thing is that he asked for feedback from the Chamber of Commerce members and that there was not one person who thought it was a good idea to limit parking in the public garage.  He stated that he had to support them in this decision.

Mr. Caggiano stated that he knows the Parking Board is still trying to get data.  He added that it is funny that he sees the same people that work paying .75 an hour in a lot, when they could walk 4 minutes down street and pay .25 hour.  He thought it curious why some employees still are reluctant to utilize lower rates.

Ms. Stanton stated that one of the capital investment improvements for FY16 is the automation of both garages, which will provide significant amount of data on occupancy.  They are trying to get a handle on the times when they are putting up the sign saying that the garage is full.  She believed the City must have a record on how many required passes are from Derby Lofts, the Essex, etc.  She noted the City’s system is currently archaic and the automation will help.  She reiterated that this is a pilot and an opportunity to get a better understanding of demand related to parking downtown and the current utilization.  After a year, if it works we may keep it – if was not a good idea, then the City could try something different.

Mr. Caggiano stated that when someone drives through and sees reserved spaces, he did not feel it was any different than any other city where you go to any public or private parking facility where there are reserved spaces or deeded spaces.

Ms. Stanton stated that she did not view this as reducing spaces.  It will be the same people that are in there now, just that they are willing to pay $1500.

Mr. Oosthoek stated that there is a different perception on that, noting that there are people who work in Boston and that their space is used by the person working in Salem during the day.

Mayor Driscoll felt that there may be people who wind up splitting the reserved space.

Mr. Caggiano stated that there are also spaces currently reserved for zip car and electric stations.  He stated that there has never been time that he has gone into the garage and it has been full.

Ms. Stanton stated that it will also be interesting to see the impact of the MBTA garage this year.

Mayor Driscoll stated that the City Council took this up, but wanted to hear from the Parking Board.  

Mr. Story asked if the City is looking for an endorsement.

Mr. Doggett asked on what the Board is voting.

Mr. Caggiano stated that it is for the approval of the changes to set aside 25 spaces in each garage as reserved parking at a higher rate.

Ms. Stanton suggested it be for 50 total spaces and then it will be evaluated what the proportion will be in each garage, which she thinks will be 10 in South Harbor and 40 in Museum Place.

Mr. Story made a motion to endorse the pilot program as presented.

Ms. Allemann seconded the motion.

Mr. Caggiano, Mr. Story and Ms. Allemann voted in favor.  Mr. Doggett and Mr. Oosthoek voted in opposition.  The motion so carried.

  • OTHER BUSINESS
There was no other business.

  • NEXT MEETING
Ms. Guy stated that the next meeting is tentatively scheduled for August 3rd.


There being no further business, Mr. Oosthoek made a motion to adjourn.  Mr. Story seconded the motion; all were in favor and the motion so carried.   

Respectfully submitted,



Jane A. Guy