TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Acting Finance Director
Michael Codron, Interim Community Development Director
Erik Zandvliet, Traffic Engineer
Tari Kuvhenguhwa, Associate Planner
Emy-Rose Hanna, Budget & Financial Analyst
SUBJECT:Title
Conduct a Public Hearing for Consideration of:
a) Coastal Development Permits to Approve an Increase to Parking Meter Rates at On-Street Meters, City Parking Lots and Beach Parking Lots and an Increase to Commercial Parking Permit Rates in the Coastal Zone;
b) A Resolution to Approve an Increase to On-Street Parking Meter Rates Outside of the Coastal Zone; and
c) A Resolution to Approve an Increase to Citywide Parking Citation Penalties (Unbudgeted) (Acting Finance Director Bretthauer and Interim Community Development Director Codron).
(Estimated Time: 30 Min.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NOS. 25-0039, 25-0040, 25-0041, AND 25-0042
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Recommended Action
RECOMMENDATION:
After conducting the public hearing, Staff recommends the City Council adopt:
1) Resolution No. 25-0039, approving a Coastal Development Permit to increase parking meter rates at On-Street Meters and Beach Parking Lots within the appealable portion of the Coastal Zone;
2) Resolution No. 25-0040, approving a Coastal Development Permit to increase Commercial Parking Permit rates and parking meter rates at On-Street Meters and City Parking Lots within the non-appealable portion of the Coastal Zone;
3) Resolution No. 25-0041, approving an increase to on-street parking meter rates outside of the Coastal Zone; and
4) Resolution No. 25-0042, approving an increase to Citywide parking citation penalties. (NOTE: Staff seeks direction as to two options: Option One. Increase the penalty fee to equal 100% of the fine; or Option Two. Increase the late penalty by 22% (or $7) for a total of $38.
FISCAL IMPLICATIONS:
The recommended action of increasing the parking meter rates for the City Lots, On-Street Meters, and Beach Lots (County and State) will result in an annual net increase of approximately $1,995,942 in the Parking Fund, $225,853 in the County Parking Lots Fund, and $168,344 in the State Pier and Parking Lot Fund.
The recommended increase to the commercial parking permit fees will result in an annual net increase of approximately $283,320 in the Parking Fund.
Additionally, the proposed parking citation penalty increase is estimated to generate approximately $540,000 annually in the General Fund based on an average volume of 45,000 - 60,000 parking citations issued per year.
Together, these three parking-related program changes will result in a total of $3,213,459 in additional annual revenue across all funds referenced above, which are necessary in supporting ongoing parking infrastructure needs and related activity.
BACKGROUND:
Parking Meter Rates
The Citywide parking meter rates were last updated in 2020 and 2021 (4-5 years ago). On September 15, 2020, the City Council approved increases for parking meter rates to $2.00 per hour for on-street meters and City-owned parking lots. Six months later on March 16, 2021, City Council approved increases for parking meter rates to $2.50 per hour for beach parking lots (Pier, 26th Street and El Porto). These increases were a direct response to the impact of the COVID-19 pandemic and the need to offset parking revenue losses due to outdoor dining area utilizing parking spaces.
Parking Permit Fees
The commercial parking permit fees were last updated in 2010 in conjunction with the last Parking Management Study (15 years ago). Through that study, the monthly Metlox parking permit was set at $27.00 and the six-month commercial parking permit was set at $160.00 (or available at a discounted rate of $100.00 each if buying in bulk of five permits or more). At the time, these commercial parking permits were set low to incentivize employee use of the newly constructed Metlox parking structure instead of other public lots.
Parking Citation Penalties
The City’s parking citation penalties were last updated in 2015 (10 years ago). On July 21, 2015, City Council approved $5.00 increases for all parking fines which resulted in a majority of the parking citations increasing to $53. At the time, the increases were adopted to help offset the revenue loss due to the exit of a significant sales tax producer (DeWitt Petroleum).
Based on the history described above, approximately 5 - 15 years have passed since these parking programs have been re-evaluated. Staff recently began re-evaluating these parking programs with the sudden closure of Lot 3 and the urgent need for solutions to address aging infrastructure in Downtown and North Manhattan Beach as well as the increased demand for parking.
DISCUSSION:
The abrupt and unanticipated closure of Parking Lot 3 in July 2024 caused a ripple effect that resulted in less parking availability, increased parking demand and urgency for solutions to mitigate the parking impacts from the loss of 145 parking spaces that were previously in Lot 3. In addition to the Lot 3 Replacement Project costs, the City is assessing other critical needs such as aging parking infrastructure throughout Downtown and North Manhattan Beach, outdated parking meter technology, conversion to advanced kiosk pay stations, water proofing parking structures and other parking improvement projects as aging infrastructure reaches its maximum useful life.
Due to these critical parking infrastructure needs, the City has determined that additional funding should be recovered through the parking meter rates, parking permit fees and parking citation penalties.
Parking Meter Rates
Staff recommends increasing Citywide parking meter rates for On-Street Meters and City Parking Lots from $2.00 to $3.00 per hour and increasing parking meter rates for Beach Parking Lots (State and County Lots) from $2.50 to $3.00 per hour. If approved, these changes would set all parking meter rates throughout the City at $3.00 per hour.
In determining the market rate for hourly parking, staff conducted a survey of local southern California cities to evaluate comparable rates and found that the City’s existing parking meter rates of $2.00 - $2.50 were low in comparison to the other cities.
A total of eight cities were surveyed including the cities of Newport Beach, Huntington Beach, Santa Monica, Beverly Hills, Hermosa Beach, Laguna Beach, Long Beach, and Redondo Beach. The survey results range widely as most cities have parking meter rates that vary by lot/location, by season and/or by time of day. For this reason, the survey identifies a range between the lowest hourly rate to the highest hourly rate. For example, rates in Newport Beach range from $3.75 - $8.55, Huntington Beach ranges from $3.00 - $4.00, Santa Monica ranges from $2.50 - $3.75, Laguna Beach ranges from $2.50 - $4.00, Long Beach ranges from $2.00 - $6.00, Beverly Hills ranges from $0.00 - $6.00 (parking is free for the first hour), Hermosa Beach ranges from $2.00 to $2.50, and Redondo Beach ranges from $1.50 to $2.00. This survey indicates that the price points for parking in prime areas among these municipalities is mostly between $2.00 per hour and up to $8.55 per hour in beach lots in peak hours. The proposed increase to $3.00 per hour will make the price to park in Manhattan Beach comparable with other local cities and would better align with the market rate for parking. These survey results are illustrated on Slide 5 of the attached PowerPoint.
Additionally, the proposed increase in parking meter rates support some of the parking strategies being considered as part of the ongoing Parking Management Study. These strategies will likely include variable seasonal and/or weekend parking rates of $3.00 or greater to maximize use of available parking supply and to incentivize alternative transportation modes. Staff will be presenting a full menu of parking strategies at a future City Council meeting in conjunction with the Draft City Parking Management Plan, which will include additional parking meter rate recommendations, if appropriate.
Commercial Parking Permit Fees
Another component of the public hearing is to consider an increase to the commercial parking permit fees, which would adjust the monthly Metlox parking permit from $27 to $65 and adjust the six-month commercial parking permit from $160 ($100 bulk rate) to $250 (and eliminate the bulk rate discount due to high demand). It is important to note that these parking permit fees have not been adjusted since 2010 and have remained unchanged over the last 15 years despite parking meter rate increases occurring in 2021, 2020 and 2018.
The ongoing City Parking Management Study is also evaluating parking strategies related to commercial parking permits, which may include significant increases in permit fees in tandem with less expensive commercial parking options.
In determining the market rate for commercial parking permit fees, staff conducted a survey of like-cities that have similar parking permits, including Newport Beach, Huntington Beach, Santa Monica, Beverly Hills, Hermosa Beach, Laguna Beach, and Redondo Beach. Similarly, the survey results range widely as some cities have parking permit fees that vary by lot/location, by season and/or by time of day. For this reason, the survey identifies a range between the lowest permit rate to the highest permit rate. For example, Newport Beach parking permit fees range from $156.75 for a three-month permit to $627.25 for a nine-month permit, Huntington Beach has a monthly permit for $25.00, Santa Monica ranges from $80.00 - $220.00 for a one-month permit, Laguna Beach ranges from $240.00 - $480.00 for a six-month permit, Beverly Hills ranges from $40.00 - $300.00 for a one-month permit, Hermosa Beach ranges from $38.00 - $250.00 for a one-month permit, and Redondo Beach ranges from $70.00 - $175.00 for a one-year permit. Although the City’s commercial parking permits do not compare apples to apples, it is evident through the survey that the City of Manhattan Beach parking permit rates of $27.00 for a one-month permit and $100.00 - $160.00 for a six-month permit are significantly low compared to the other cities. The proposed increase to $65.00 for a one-month permit and $250.00 for a six-month permit will make Manhattan Beach more comparable with other local cities and would better align with the market rate for parking permits. These survey results are illustrated on Slide 6 of the attached PowerPoint.
Coastal Development Permits
On April 8, 2025, the Community Development Department received an application from the Finance Department (“Applicant”) for Coastal Development Permits to modify parking permit rates for commercial parking permits, and parking meter rates for on-street public parking spaces and public parking spaces within City, County, and State-owned public parking lots (“Project”).
The proposed parking meter rate and commercial parking permit rate increases are proposed Citywide, which includes the Coastal Zone. For that reason, the proposed modifications to the parking meter rates and commercial parking permit rates are subject to the Manhattan Beach Local Coastal Program (LCP). Coastal Development Permits are governed by Chapter A.96 of the LCP. Sections A.96.040 and A.96.230 specify that, “A coastal development permit is required for any development, including gates, parking controls, new locations for parking meter areas, changes in fee structure, expansion of times and hours in which monthly permits may be offered, or other devices in the coastal zone that change the availability of long and short term public parking, including, but not limited to, changes in the operation of the City parking management program established in §A.64.230.” The subject request includes an increase in parking rates for the Commercial Permit Parking Program, on-street meters, City-owned lot meters, and State Pier and County lot meters. Therefore, Coastal Development Permits are required for these parking locations that are within the appealable and non-appealable portions of the Coastal Zone (included as Attachments 1 and 2 to this staff report).
Furthermore, pursuant to Sections A.96.030(D) and A.96.080(B) of the LCP, the Community Development Director, Planning Commission, and the City Council each possess decision-making authority on Coastal Development Permits. The City Council shall consider the project request at a public hearing, prior to rendering a decision on the application.
Parking Citation Penalties
California Vehicle Code Section 40203.5 authorizes the City to establish penalties for parking violations. The City’s existing parking penalties have not been changed since 2015.
The proposed Resolution No. 25-0042 would increase all parking citation penalties by $12. This will result in the majority of parking citations increasing from $53 to $65. Certain more serious infractions currently carry higher penalties, such as unauthorized use of a disabled parking space, which is currently set at $338. Those violations will also increase by $12.
In determining the market rate of parking citation penalties, staff conducted a survey of local cities that issue parking citations and found that the City’s existing fine of $53 for a typical parking citation was low compared to other cities.
Through the survey, staff compared the two most common citations, which are expired meter fines and street sweeping fines. Included in the survey are the cities of Newport Beach ($76/$70), Redondo Beach ($75/$53), Santa Monica ($63/$73), Los Angeles ($63/$73), Huntington Beach ($58/$46), Culver City ($55/$60), Beverly Hills ($55/$68), and Hermosa Beach ($53/$38). Similarly, the proposed parking citation penalty of $65 will make Manhattan Beach more comparable with other local cities and would better align with the market rate for parking fines. These survey results are illustrated on Slide 8 of the attached PowerPoint.
Additionally, the late penalty fee for unpaid fines is currently set at $31. Given the rising costs of processing and mailing additional late notices, an increase to this penalty is also justified. Staff seeks direction as to two options:
• Option One: Increase the penalty fee to equal 100% of the fine (as seen with other cities), or
• Option Two: Increase the late penalty by 22% (or $7) for a total of $38.
The Council’s direction on late penalties will be added to Resolution No. 25-0042 and incorporated into the attached schedule of parking citation penalties.
Conclusion:
Following the public hearing, staff recommends adopting Resolution Nos. 25-0039, 25-0040, 25-0041, and 25-0042. If adopted, the new parking meter rates, parking permit fees and parking citation penalties will go into effect May 1, 2025. The fifteen day waiting period meets the requirements of the Coastal Development Permits. Additionally, the two-week delay will provide the necessary time to update the City’s parking citation software and hardware to reflect the new penalties.
PUBLIC OUTREACH:
A public notice for the April 15, 2025, public hearing was published in The Beach Reporter on April 3, 2025. As of the writing of this report, staff has not received public comments. Additionally, the City provided advance courtesy notice to the Downtown Business and Professional Association, Chamber of Commerce and North Manhattan Beach Business Improvement District.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that it is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0039 (Appealable Area)
2. Resolution No. 25-0040 (Non-Appealable Area)
3. Coastal Development Permit Application (Appealable Area)
4. Coastal Development Permit Application (Non-Appealable Area)
5. Resolution No. 25-0041(Parking Meter Rates Outside the Coastal Zone)
6. Parking Meter Zones Map
7. Resolution No. 25-0042 (Parking Citation Penalties)
8. Exhibit A - Schedule of Parking Citation Penalties
9. PowerPoint Presentation