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Banks charge the merchant 3 to 5 percent of the total transaction for credit card processing fees. To account <br />for this in the model, CDM Smith assumed 4 percent of the total per transaction, and reduced the price per <br />hour for credit card users by 4 percent. Because transaction fees for mobile payments are charged to the <br />user rather than the City, the City would net the full price per hour; therefore, mobile payments would net <br />more revenue for the City than credit card payments. If the City elects to use a mobile payment vendor for <br />multiple services it will be possible to consolidate/reduce fees. <br />Employee Permits <br />There are currently two kinds of monthly parking permits at the Estudillo garage, reserve permits and general <br />permits. There are currently an estimated 113 monthly permits (combined reserve and general) at the <br />Estudillo garage. The number of permits is assumed to increase linearly to 600 permits per month by Year 10 <br />of the program. Although 600 permits per month exceeds the garage's capacity, it is typical to oversell <br />permits because most permit holders do not use the garage at the same time, particularly in a situation like <br />this with part-time/shift workers. CDM Smith is also recommending free permits for part-time/low-income <br />(PTLI) employees. Over the 10 -year period, CDM Smith anticipates that the number of reserve permits will <br />increase from 94 to 200 total permits, the number of general permits will decrease from 19 to zero permits, <br />and free permits will increase from zero to 400 permits to fill the balance. The City should have a policy of <br />overselling the (PTLI) permits since it is anticipated that these users will have a variety of shifts and will be <br />unlikely to fill the garage. Sales, occupancy and enforcement reports will be monitored to determine when <br />and if adjustments to permit sales are merited. <br />Reserve permits are sold for $55 per month, and general permits are sold for $35 per month. Each permit <br />purchased costs the City $1 per month for processing. <br />CDM Smith evaluated two scenarios for permit rates: constant reserve permit rates and escalated reserve <br />permit rates, which were assumed to escalate at approximately the CPI. At Year 10, escalated reserve permit <br />rates would result in 37% more net revenue for the City, approximately $62,000 per year. <br />Residential Preferred Parking Permits <br />CDM Smith developed a revenue estimate for a residential preferred parking program with the following <br />assumptions: <br />• Approximately 10% of residential households in the City of San Leandro are located in the Downtown <br />San Leandro study area and are eligible for inclusion in a potential RPP zone. <br />■ Of the eligible households, 20 percent (650 households) will participate by Year 10, resulting in 650 <br />permits per year by Year 10. <br />■ The program will initially charge $25/year and the cost will escalate annually with the CPI. <br />■ An enforcement aide will be needed half-time at Year 3 and full time by Year 7 to support the RPP <br />program. <br />Citation Revenue <br />Based on the citation revenue provided by the City, CDM Smith assumed that with the increase in the <br />number of parking aides, citation revenue would increase approximately logarithmically. The current 5 -year <br />average for citations is $135,000. With an approximately logarithmic increase, the citation revenue in Year 10 <br />would be $1,168,000. <br />