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Downtown Parking Management Plan <br />31 <br /> <br />City Labor Costs <br />Based on information provided by the City, CDM Smith assumed 3.38 FTEs currently support the parking <br />program with a total annual budget of $535,000. CDM Smith proposes to increase the number of FTEs <br />supporting the parking program to 5.13 with a total annual budget of $692,000. The increased FTEs would <br />include two full-time parking aides and one half-time parking aide, 10% of the Public Works Manager’s time, <br />increasing the two public works employees to be full time, and 20% of the Information Services Specialist’s <br />time. Given that the total on-street and off-street parking space inventory in Downtown San Leandro is 3,200 <br />spaces, the total labor cost per space per year is currently $167, which would increase to $216 under the <br />proposed scenario. Labor costs are assumed to escalate with the Consumer Pricing Index (CPI). <br />Although this long-term proposal would result in increased labor costs, it would also result in increased <br />revenue through use of the long-term parking options at the Garage and increased citation revenue from <br />more rigorous enforcement of the time-restricted parking areas. <br />Third-Party Parking Manager <br />CDM Smith also recommends the City work with a third-party parking manager, which would offset some of <br />the labor costs that the City currently has and would also improve efficiency of the system. The third-party <br />parking manager would run solicitation and manage vendor services, run analytics on technologies, and <br />would manage daily operations and potentially enforcement services. The third-party parking manager would <br />cost the City a fixed monthly cost between $7,500 and $9,500, based on the agreed roadmap of services and <br />level of staffing support from the City. It should be noted that the third-party parking manager would require <br />an annual contract. In the Proforma model, the third-party parking manager’s cost is assumed to escalate <br />with the CPI. <br />3.3 Program Revenues <br />Meter Rates & Price Escalation <br />CDM Smith assumed that revenues at the Estudillo garage would escalate annually with the CPI with a rate in <br />Year 1 of $0.50. The revenue estimate accounts for only potential revenue hours because the Estudillo garage <br />has 2 hours free. <br />As noted in Section 3.3, price escalation is required to keep the parking program net positive. Without <br />escalation to cover labor costs, the program will begin to go negative in Year 3. <br />Mobile Payments versus Credit Card Payments <br />CDM Smith assumed that mobile payments are currently at 10% and will increase linearly to 50% in Year 10 <br />as users sign up for accounts and become more accustomed to the mobile payment system and come to <br />prefer the security and convenience of mobile payment over credit cards. The mobile payment company <br />receives $0.25 per transaction paid by the user at no additional cost to the City. <br />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 />629