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; i � 10/12/2015 6.3.B. - Page 20 TJKM ' Transportacion Consultancs ___.____�._ � ' request from the City if a building permit is not required.To accommodate financial needs of the �� ; developers, some cities have offered a four-payment plan or other means of deferring partial I payments in the future. Santa Monica, Beverly Hills and Huntington Beach allow payments over a I four-year period. A one-payment option may have higher financial burden on the developer during the first year '. compared to a four-payment plan, under which the developer pays only 25 percent of the fees in � the first year. While a multi-year payment plan is advantageous to the developer, it adds uncertainty and unnecessary administrative burden on the City staff, making it less appealing to the cities. In addition, a one-payment plan allows the cities to secure necessary funds upfront and ' initiate any feasibility studies,designs and implementation that will address the parking deficiencies in a timely manner. Since in-lieu fees are set below the cost of building new parking spaces,a developer is already benefitting by a single payment plan.Therefore, it is not necessary to offer a . deferred payment plan that will provide additional incentives to the developers with no apparent ' benefit and very real negatives to the City. `, As a balanced approach,the City may split the in-lieu payment fees into four equal installments and offer a discount if paid in one payment before the issuance of a building permit.This will require that the revised in-lieu fee per parking space is set higher than the current rate. For example, a city may set the in-lieu fee at$28,000 per space, and offer a 10 percent reduction if paid in one ', installment. A developer can choose to pay$28,000 in four equal installments of$7,000 each or ' pay$25,200($28,000 minus 10 percent) in one installment. ` Recommendation ! The administrative burden of offering a multiple payment plan outweighs any potential benefits. No change to the current practice of single payment is recommended. � ,: 4. Use of Fees Issue '• Other than building new parking facilities,what are the alternative uses of in-lieu fee payments that ' will benefit transportation access and safety? Analvsis �� " The current Redwood City ordinance clearly states that the fees shall be used exclusively for 1-•-` ; providing additional public parking spaces.The original intent behind this exclusive use � requirement was to assure that the fee payments are not diverted into other uses and thereby creating a perennial shortage of parking spaces in the downtown. Cumulative fees collected over ; the last 10 years are not enough to fund a new parking facility. Moreover,adding new parking ' spaces may not be the most creative solution considering the increased emphasis on use of cleaner i modes of transportation,TDM strategies and new and emerging options such as car-sharing, bike- � ' sharing and Transportation Network Companies (TNC)that support reduced auto ownership and reduce parking demand. ' Many cities have embraced the approach of utilizing in-lieu fees for broader solutions and ! strategies that help them achieve their goal of creating a safe and robust transportation system !, that offers multiple options to driving and thereby reduce auto trips and cut down GHGs.The City � should consider expanding the toolkit for effective and timely use of in-lieu fee payments, including � the following alternatives. Redwood City In-Lieu Parking Fee Study Page � 13 15 RESO.#15448 MUFF#703