TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Masa Alkire, Community Development Director
Libby Bretthauer, Finance Director
Erik Zandvliet, T.E., City Traffic Engineer
Emy-Rose Hanna, Finance Services Manager
Adam Finestone, Planning Manager
Jaehee Yoon, Senior Planner
SUBJECT:Title
Conduct Public Hearing and Consideration of a Resolution Approving a Coastal Development Permit to approve the City Parking Management Study Report, and Discussion of Metered Parking and Merchant Permit Parking Rates (Unbudgeted) (Community Development Director Alkire)
(Estimated Time: 1 Hour)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 26-0030
C) DISCUSS AND PROVIDE DIRECTION
Body
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RECOMMENDATION:
Staff recommends that the City Council (1) conduct a public hearing; (2) adopt Resolution No. 26-0030, approving a Coastal Development Permit for the City Parking Management Study Report and; (3) direct staff to pursue implementation of the approved parking strategies included in the Report; and (4) receive an informational update and provide preliminary direction to staff related to future changes in on-street and off-street parking meter rates and merchant parking permit rates.
FISCAL IMPACT:
The City Parking Management Study (Study) was approved as part of the current Fiscal Year (FY) 2023-2024 Budget in an amount of $250,000. The Study is funded through the City, County and State parking fund programs. If additional funding or budget appropriation is needed to implement certain parking management strategies, it will be requested in conjunction with approval of those particular strategies by the City Council pursuant to the Implementation Plan in the Study Report.
BACKGROUND:
Citywide, the City operates 14 public off-street parking facilities totaling over 1,500 spaces with a variety of metered, reserved, EV charging and permitted spaces, as well as over 500 street parking meters. The two commercial areas studied include the Downtown Manhattan Beach and North Manhattan Beach business districts. There are four separate parking permit programs for the public parking facilities in these districts, primarily serving employees of the adjacent commercial businesses.
The City previously conducted parking management studies in the Downtown area in 1984, 1990, 1998 and 2008. These studies were used as reference in the development of the Study. This current Study is intended to be a guideline to assist the City in implementing a comprehensive parking solution for customers, visitors, employees and residents, while improving the overall quality of life and preserving the City’s small beach town character.
On June 6, 2023, the City Council approved the Study funding as part of the Fiscal Year (FY) 2023-2024 Budget. On May 21, 2024, the City Council approved an agreement with Walker Consultants Inc. to conduct a parking study and analysis of current and future parking demand in the Downtown and North Manhattan Beach business districts; evaluate potential parking and curbside management strategies to efficiently manage multi-modal transportation needs; and develop a comprehensive toolkit of parking and curbside management strategies to equitably manage customer, employee, visitor and resident parking needs. City staff managed the consultant's efforts, public outreach and meetings related to the Study.
The Study tasks included records review, parking data collection, stakeholder outreach, existing conditions analysis, future parking demand analysis and project management. As part of the Study scope, Walker Consultants prepared a Draft Existing Conditions Report, Draft Future Conditions Report and Draft City Parking Management Strategies and Toolkit.
On September 25, 2025, the Parking and Public Improvements Commission (Commission) reviewed and recommended that the City Council approve the staff recommendations of the Parking Management Strategies and Toolkit portion of the draft plan, with a few revisions. On November 3, 2025, the City Council reviewed the Commission’s recommendations and provided further direction to staff on specific strategies. On February 26, 2026, the Commission reviewed and recommended that the City Council approve the complete Draft City Parking Management Study Report, which includes the revised ‘Strategies and Toolkit’ section, together with the ‘Existing Conditions’, ‘Future Conditions’, and ‘Implementation Plan’ sections, and is attached to this staff report.
DISCUSSION:
The overall goals of the City Parking Management Study are the following:
• Improve the efficiency of existing parking resources;
• Provide sufficient parking capacity for existing and planned parking needs of all transportation modes, including vehicles, EV’s, shuttles, accessible parking, rideshare, delivery vehicles, bicycles, and personal motorized devices;
• Assess the need for future public parking based on current and proposed developments;
• Implement parking technology to improve the public parking experience, including app-based location and payment services;
• Develop transportation demand management strategies to reduce parking demand;
• Determine opportunities for new parking facilities, shared parking and public/private partnerships to meet short and long-term parking demand;
• Develop strategies to leverage existing parking facilities and programs to maximize parking utilization which will involve evaluating current and future pricing, permitting, incentives and restrictions related to the City’s parking programs;
• Develop an Implementation Plan for all recommendations, including prioritization, timelines and potential funding sources; and,
• Consider the City’s unique character, stakeholders (residents, businesses and visitors), coastal access, and the future of mobility and parking.
The Study incorporates other recent and ongoing land use plans and studies into the overall effort, including the General Plan Mobility Element, Parking Technology Roadmap prepared by Dixon Resources Unlimited (see attachment), and the Manhattan Beach Outdoor Dining Program Parking Analysis by Fehr & Peers, as well as the Long-Term Outdoor Dining Program Task Force recommendations. The Study also evaluated the evolving parking conditions due to the closure of Parking Lot 3 and the acquisition of the US Bank property at 400 Manhattan Beach Boulevard. The Study also complies with the City’s currently certified Local Coastal Program, as specified in Section A.64.230.
Recommended Parking Strategies and Toolbox
The City Parking Management Strategies and Toolkit portion of the Draft Report contains a curated series of best practices to help the City manage parking demand, streamline parking enforcement and permit management systems, advance parking technology, improve public awareness of parking options, expand bicycle parking facilities, and provide new transportation options (on-demand micro-transit and bike share) to improve overall mobility and access for those who live, shop, work, or play in Manhattan Beach. The recommended strategies were chosen based on an analysis of existing parking conditions, expected future conditions, field observations, parking and transportation industry best practices, and input from City staff. The strategies also reflect the latest in evolving technology and future trends in parking systems, enforcement, management strategies, and service delivery. The PPIC and City Council previously reviewed and discussed a list of 38 potential strategies selected by Walker Consultants and directed staff to include 33 of the strategies in the Draft Report.
Strategies have been grouped and organized into the broad categories of Short-term Parking, Long-Term Parking, Parking Technology and Enforcement, Smart Parking Management, Passenger and Commercial Loading, Future Parking Supply, Funding Parking Operations and Development, Bicycle Parking and Micromobility, and Transportation Demand Management. Detailed strategy explanations, rationale, implementation, and other details are provided in the Strategy Toolkit chapter.
The following is a summary of the 33 parking strategies and toolbox measures previously recommended by both the Commission and City Council to be implemented in the Downtown and North Manhattan Beach areas of the City, including related notes:
1. Parking Rate Structures and Time Limits
1.1. Increase on-street parking rates relative to off-street rates and align them with market conditions.
a. This strategy was partially implemented when City Council approved a parking rate increase to $2.50 per hour for all street and City parking lot meters and $3.50 in State and County-owned parking lots on April 15, 2025.
b. This strategy may consider a seasonal meter rate structure with higher summer rates and lower off-season rates in consultation with the business community.
2. Off-Street Parking Time Limits
2.1. Modify off-street parking time limits.
a. This strategy recommends a reduction in the time limit in Beach and Pier lots from 5-hours to 4-hours, and an increase in the time limits in most or all off- street parking facilities from 2-hour to 3-hours or more.
3. Payment Methods
3.1. Implement a mobile application payment platform for short-term parking.
a. This strategy was previously approved by the City Council on April 15, 2025, and is currently being implemented.
3.2. Remove and replace individual parking meters with multi-space parking kiosks.
a. This strategy was previously approved by the City Council on April 15, 2025, and is currently being implemented.
4. Valet and Attendant Parking
4.1. Implement public on-street valet parking services at strategic locations.
a. This strategy recommends working with businesses to operate a public on-street valet service to park in private or underutilized public parking lots during peak parking periods.
5. Shared Parking
5.1. Identify potential public and private properties that could meet current and future parking needs through shared parking agreements.
a. This strategy recommends expanded outreach efforts and modifications to the parking code to encourage private shared parking in private lots.
6. Technology and Wayfinding to Improve Customer Service
6.1. Update the City’s parking webpage and marketing materials.
a. This strategy recommends centralizing the City’s parking website/webpages with comprehensive information about the parking facilities, parking rates, payment methods and real-time digital maps.
6.2. Evaluate and recommend ways to provide parking information, including parking signage, and implement the City’s existing wayfinding program.
a. This strategy recommends full implementation of the Citywide Wayfinding Program including digital occupancy signs.
6.3. Implement an App-Based Automated Parking Guidance System (APGS).
a. This strategy recommends an APGS and parking occupancy information to be integrated with its mobile parking payment app.
7. Long-Term Merchant Parking
7.1. Implement a flexible employee parking pass or bundled daily passes to accommodate business employees who do not park every day of the week.
a. This strategy would be implemented through the formation of a stakeholder task force to recommend comprehensive revisions to the City’s merchant permit parking program. It would not include time-based or daily permits until such time as parking enforcement in parking lots is fully automated.
7.2. Increase Merchant Permit parking rates.
a. This strategy would be implemented in consultation with a stakeholder task force to develop comprehensive revisions to the City’s merchant permit parking program for City Council’s consideration. This strategy incorporates a future City Council item requested on May 20, 2025, to evaluate the Merchant Permit Parking pricing method and structure.
8. Residential Parking Permit System
8.1. Improve (and potentially expand) the Residential Parking Permit Program (RPPP).
a. This strategy would develop an RPPP on specific residentially oriented streets and lots within the study area with public time-limit parking after consultation with the affected stakeholders.
9. Enforcement Hours
9.1. Shift parking enforcement hours one hour later during peak season.
a. This strategy would shift metered and enforcement hours later by one hour in the summer season to align with higher parking demand.
10. Enforcement Technology
10.1. Adopt License Plate Reader (LPR) technology for enforcement.
a. This strategy has been previously approved by the City Council on April 15, 2025, as part of the Parking Technology Roadmap, and is currently being implemented.
10.2. Transition to virtual commercial, merchant, and residential permits and an online application process.
a. This strategy has been already initiated through the EnerGov permit system for residential and oversize vehicle permits. It would be expanded to an online application process for all parking permits, with virtual permits for license plate-based permits, and physical hangtags for merchant permits and resident guest permits.
10.3. Implement smart parking software and real-time data.
a. This strategy has been previously approved by the City Council on April 15, 2025, as part of the Parking Technology Roadmap and is currently being implemented.
11. Commercial Loading
11.1. Create a zone in Downtown and North Manhattan Beach to prohibit the loading and unloading of commercial delivery trucks during certain hours.
a. This strategy was recommended by the Long-Term Outdoor Dining Task Force and would be implemented on certain streets in the Downtown and North Manhattan Beach business districts after gathering additional data on existing loading needs and challenges.
11.2. Limit commercial deliveries and loading activity to early mornings and Sundays.
a. This strategy would be implemented throughout the entire Downtown and North Manhattan Beach business districts in consultation with a stakeholder task force comprised of local businesses and residents.
11.3. Create Additional Flexible Loading Zones (FLZ’s).
a. This strategy would implement additional flexible loading zones during certain hours in on-street spaces where appropriate.
12. Parking Requirements
12.1. Deleted per City Council direction. Revise parking minimum requirements and establish maximum parking requirements in the Commercial Districts.
12.2. Evaluate the parking In-lieu fee program.
a. This strategy would evaluate potential changes to the parking in-lieu fee program in both the Downtown and North Manhattan Beach business districts.
13. Increase Parking Supply
13.1. Review of on-street parking supply.
a. This strategy was already largely completed in Downtown in conjunction with the removal of the parking structure in Lot 3, and would be conducted in North Manhattan Beach.
13.2. Increase supply in parking garages and lots.
a. This strategy would pursue opportunities for additional parking by reconstructing existing parking garages and parking lots.
13.3. Construct new parking facilities.
a. The City has already initiated this strategy by purchasing the former bank property at 400 Manhattan Beach Boulevard. This strategy would also pursue opportunities for additional parking facilities in both study areas.
13.4. Pursue public-private partnerships to construct new parking supply for peak demand periods.
a. This strategy would encourage public-private partnerships for additional parking supply on private property.
14. Parking Benefits District
14.1. Establish a Parking Benefits District.
a. This strategy has been initiated through the City Council Work Plan for Project Pulse in Downtown and would also be considered for North Manhattan Beach (aka Parking Assessment District).
15. Transportation Impact Fees
15.1. Implement Transportation Impact Fees.
a. This strategy has already been initiated pursuant to the Development Impact Fee study that includes potential transportation impact fees. Additional transportation impact fees could be considered as a funding source for new parking or bicycle facilities.
16. Bicycle Parking and Valet Parking
16.1. Expand short-term and long-term secure bicycle parking.
a. This strategy was already initiated through the Long-Term Outdoor Dining Task force recommendations for potential bicycle parking facilities in Downtown and North Manhattan Beach.
16.2. Explore a bike valet service to provide secure bicycle parking for event attendees, residents, and visitors during seasonal peaks.
a. This strategy would implement a city-sponsored program to provide bike valet services for special events and seasonal peaks.
17. Micromobility
17.1. Explore a docked electric bicycle-share program to reduce vehicle parking demand.
a. This strategy would evaluate the feasibility of a citywide docked electric bicycle-share program.
18. Marketing and Awareness
18.1. Recommend social media strategies and other marketing efforts to reduce parking demand.
a. This strategy would promote alternate transportation modes on social media and through marketing efforts.
19. On-Demand Microtransit
19.1. Evaluate feasibility of an on-demand microtransit to allow more local, short trips without a car.
a. This strategy is already being pursued with a local microtransit provider and will be presented to the City Council in a separate staff report.
b. This strategy incorporates a future City Council item requested on April 1, 2025 to discuss the use of a shuttle service in the City.
20. Remote Parking and Shuttle Transportation
20.1. Identify remote parking options and shuttle transportation services.
a. This strategy would study the feasibility of remote parking and shuttle services to serve employees and customers of the Downtown and North Manhattan Beach business districts.
21. Employee TDM Strategies
21.1. Consider offering discounted employee rideshare services to reduce parking demand.
a. This strategy would explore the feasibility of discounted employee rideshare and other incentives for alternative transportation modes.
Coastal Development Permit
A majority of the Study analyzes the immediate vicinity in and around the Downtown and North Manhattan Beach commercial zoning districts (CD and CNE, respectively), which are located within the Coastal Zone and regulated by the provisions of the City’s certified Local Coastal Program (LCP). Per LCP Sections A.64.230 and A.96.040, a CDP is required because changes are proposed to the City’s Parking Management Program. Findings required for approval of the CDP have been included in attached draft Resolution. Notice of the City Council’s action on the CDP will be provided to the California Coastal Commission. It should be noted that the City Council’s action is appealable to the California Coastal Commission because the Study covers portions of the appealable area of the Coastal Zone.
Related Parking Updates
Based on prior City Council direction to staff to work on different approaches to the City’s metered parking rates and Merchant Permit parking program, staff is providing an update on these topics and seeks City Council direction on further work on these topics:
On-Street and Off-street Parking Rate Update
On April 15, 2025, the City Council approved an increase in the on-street and off-street parking meter rates citywide. On-street parking rates went from $2.00 per hour to $2.50 per hour. City lot parking rates went from $2.00 to $2.50 per hour. Rates in beach lots went from $2.50 to $3.50 per hour. Strategy 1.1 in the City Parking Management Study Report recommends a further increase in on-street parking rates of up to $4.00 per hour in Downtown and off-street parking rates of up to $3.00 per hour for City lots and up to $4.00 per hour in beach lots. A rate comparison table is attached to the staff report. The strategy also suggests a seasonal rate structure, which will be discussed further at a future date after a comprehensive revenue analysis is conducted.
Staff is requesting direction from the City Council on whether to pursue an incremental annual adjustment with a maximum cap when setting future metered parking rates. This policy would help parking revenue keep up with inflation rates and maintenance costs without the need to return to the City Council to increase rates each year. If directed, staff will return to the City Council with a resolution to establish an incremental parking rate increase and maximum parking rate for all metered street and parking lot spaces.
Merchant Parking Rate Update
On April 15, 2026, the City Council approved an increase in the Merchant Permit Parking rates.
Monthly permits went from $27.00 per month to $45.00 per month. Six-month permits went from $160.00 to $250.00 per permit. The City also ended the prior bulk rate of $100 per permit when five or more are purchased at the same time. The rates that went into effect in April 2025 reflect an approximate 90% discount for a full-time employee paying full price meter rates (40-hours per week). Strategy 7.2 in the City Parking Management Study Report recommends increasing monthly permits up to $100 per month and six-month permits up to $600 per month, which is equivalent to two hours of full-price metered parking per workday for a full-time employee, or a 75% discount. A Merchant Permit parking rate comparison table is attached to the staff report.
Since the latest rate increase, Merchant Permit revenue has increased by about 109% percent. Staff has received complaints that the new Merchant Permit parking rate is too expensive for part-time employees and for those businesses that purchase a large number of permits for their employees. Additionally, some businesses are required to purchase a large number of permits as a condition of their Use Permit due to insufficient private parking supply.
Following the rate increase and removal of the bulk rate discount, Finance staff found the number of six-month permits issued decreased from the maximum of 760 permits to 713, which resulted in a surplus of permits that are available for purchase in the Metlox parking structure. There is still a waiting list for Lot 4 in North Manhattan Beach. The number of monthly permits issued has also decreased, and there is now a surplus available for purchase in the non-summer months.
On May 20, 2025, City Council directed staff to “provide a comprehensive report on implementing a phased approach for the previously approved commercial parking permit rates, associated fiscal impacts, and the formula used to determine the oversubscription of the permits”. Strategy 7.2 of the Study Report recommends establishing a stakeholder task force to review the Merchant Permit Parking program. It also suggests implementing a flexible or daily employee parking pass for part-time or hybrid work employees that may not park as long or as many days as full-time employees.
Staff is requesting direction from the City Council regarding the development of potential changes to the merchant permit parking rate structure, and the method by which the number of permits are determined. City Council can also direct staff to establish a stakeholder task force to review Merchant Permit pricing and the program methodology. Staff will return at a future meeting with a full analysis and recommendations for the Council’s consideration.
CONCLUSION:
The City Council should review the Draft Report compiled in its entirety, hear public testimony, adopt a Resolution approving a Coastal Development Permit to approve Study Report and direct staff to pursue implementation of the strategies. Once approved, the strategies will be implemented over the next several years with high priority strategies implemented first. Some of the strategies may require additional Commission and City Council actions to approve specific aspects of each strategy, including any necessary funding requests, additional CDPs and/or LCP amendments. Additionally, City Council should provide staff with direction related to future changes in on-street and off-street parking meter rates and the Merchant Permit parking program.
PUBLIC OUTREACH:
The Downtown Business and Professionals Association (DBPA) Board, North Manhattan Beach Business and professionals Association (NMBBPA) representatives and the Long-Term Outdoor Dining Task Force members have been involved throughout the process and been given a preview of the Draft Study Report. All groups have been invited to this meeting and encouraged to reach out to their members. The public has been informed of this agenda item as part of the City’s standard meeting notice practices via public bulletin boards, website calendar, and social media. In addition, notice of the public hearing was published in the Beach Reporter on March 26, 2026, per the City’s LCP requirements.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the project falls under the statutory exemption for a “Feasibility and Planning Study” as defined under Section 15262 of the State CEQA Guidelines. Thus, no environmental review is necessary.
ATTACHMENTS:
1. Resolution No. 26-0030
2. Draft City Parking Management Study Report
3. Appendix A - Manhattan Beach Existing Conditions
4. Appendix B - Stakeholder Outreach Materials
5. City Council Minutes - November 3, 2025
6. PPIC Minutes - September 25, 2025
7. Parking Meter and Merchant Permit Rate Comparison Tables
8. PowerPoint Presentation