After Hours Parking Program FY

Transcription

1 After Hours Parking Program FY A Report to the Texas Legislature and Legislative Budget Board December 2012 Texas Facilities Commission Physical address: 1711 San Jacinto Blvd, Austin, Texas Planning and administering facilities in service to the State of Texas

2 This report is submitted by the Texas Facilities Commission (TFC) in accordance with Texas Government Code, Subchapter E, Section (e) describing the effectiveness of the after-hours parking program administered by the agency. For additional information, please contact Terri Rodgers, Director of Property Management Services, at (512)

3 Table of Contents I. AFTER-HOURS PARKING PROGRAM REVENUE AND STATISTICS 4 II. PROGRAM INITIATIVES AND ISSUES 7 3

4 I. After-Hours Parking Program Revenue and Statistics After-Hours Parking Administration Texas Government Code, Section , directs the Texas Facilities Commission (TFC) to develop private, commercial use for state-owned parking lots and garages located in the City of Austin at locations TFC determines are appropriate for commercial use outside of regular business hours. TFC is permitted to contract with a private vendor to manage the commercial use of stateowned parking lots and garages. Revenues received under this program are deposited to the credit of the General Revenue (GR) Fund. During the fiscal year (FY) reporting period, TFC continued its agreement for afterhours parking management services with HBA Parking, Inc. (HBA). On April 1, 2012, TFC exercised its second two-year renewal option, extending the agreement into FY2014. As part of the agreement between TFC and HBA, 8.25% sales tax on the gross revenue is deposited directly into GR. TFC collects and deposits 65% of the remaining balance into GR and HBA retains 35% as compensation for parking management services. The revenue collected by this program for the biennium is broken down by each fiscal year of the reporting period and is listed below. Revenue by Fiscal Year FY 2011 Total parking fee revenue (sales tax included) $ 886,168 Total sales tax paid (transferred to GR) $ 67,537 Parking fee revenue transferred directly to GR $ 532,110 Parking fee revenue retained by HBA Parking, Inc. $ 286,521 FY 2011 Month Gross GR Sales Tax HBA September $ 142,742 $ 85,711 $ 10,879 $ 46,152 October $ 84,930 $ 50,997 $ 6,473 $ 27,460 November $ 81,197 $ 48,756 $ 6,188 $ 26,253 December $ 43,489 $ 26,113 $ 3,314 $ 14,061 January $ 94,063 $ 56,481 $ 7,169 $ 30,413 February $ 72,591 $ 43,588 $ 5,532 $ 23,471 March $ 97,941 $ 58,810 $ 7,464 $ 31,667 April $ 69,870 $ 41,954 $ 5,325 $ 22,591 May $ 35,880 $ 21,545 $ 2,735 $ 11,601 June $ 38,381 $ 23,046 $ 2,925 $ 12,410 July $ 69,820 $ 41,924 $ 5,321 $ 22,575 August $ 55,264 $ 33,184 $ 4,212 $ 17,868 FY Total: $ 886,168 $ 532,110 $ 67,537 $ 286,521 4

5 In Fiscal Year 2011, HBA sold 120,050 parking spaces at various state-owned parking facilities in the Austin metropolitan area. The after-hours standard parking rate is $7.00. However, Texas Government Code allows nonprofit, charitable and other community organizations to request the use of state-owned parking facilities for free or at a reduced rate. Such organizations requested and received the use of 57,287 parking spaces free of charge in FY Additionally, at times, the market dictates for parking rates to increase or decrease depending on a particular event. In FY 2011, the after-hours parking rates varied from $2.00 per space for non-profit organizations up to $25.00 per space for reserved tailgating. FY 2011 Spaces Rate Total Reduced Rate ($2) 516 $2.00 $ 1, Reduced Rate ($3) 1,648 $3.00 $ 4, Reduced Rate ($5) 14,345 $5.00 $ 71, Regular Rate ($7) 84,805 $7.00 $ 593, Special Rate ($10) 12,726 $10.00 $ 127, Special Rate ($25) 312 $25.00 $ 7, Pre-Paid Tailgate (Tailgate ERS) 5,698 $14.00 $ 79, Year Totals 120,050 $ 886,168 Revenue by Fiscal Year - FY 2012 Total parking fee revenue (sales tax included) $ 1,149,327 Total sales tax paid (transferred to GR) $ 71,733 Parking fee revenue transferred directly to GR $ 773,272 Parking fee revenue retained by HBA Parking, Inc. $ 304,323 FY 2012 Month Gross GR Sales Tax HBA September $175,160 $105,177 $13,349 $56,634 October $97,721 $58,678 $7,448 $31,596 November $72,616 $43,603 $5,534 $23,479 December $62,091 $37,283 $4,732 $20,076 January $70,287 $42,205 $5,357 $22,726 February $80,522 $48,350 $6,137 $26,035 March $164,088 $98,529 $12,506 $53,054 April $45,092 $27,076 $3,437 $14,579 May $56,271 $33,789 $4,289 $18,194 June $43,080 $25,868 $3,283 $13,929 July $31,864 $19,133 $2,428 $10,302 August $42,435 $25,481 $3,234 $13,720 UT Parking Lease $208,100 $208,100 $0 $0 FY Total: $1,149,327 $773,272 $71,733 $304,323 5

6 In FY 2012, HBA sold 133,333 parking spaces at various state-owned parking facilities in the Austin metropolitan area. The after-hours standard parking rate remained at $7.00. However, Texas Government Code allows nonprofit, charitable and other community organizations to request the use of state-owned parking facilities for free or at a reduced rate. In FY 2012, eligible organizations have requested and received the use of 95,010 parking spaces free of charge. Additionally, at times, the market dictates for parking rates to increase or decrease depending on a particular event. For FY 2012, the after-hours parking rates varied from $3.00 per space for nonprofit organizations up to $15.00 per space for South by Southwest and other large community events. FY 2012 Spaces Rate Total Reduced Rate ($3) 7,050 $3.00 $21, Reduced Rate ($5) 26,518 $5.00 $132, Regular Rate ($7) 84,291 $7.00 $590, Special Rate ($10) 5,915 $10.00 $59, Special Rate ($15) 4,474 $15.00 $67, Pre-Paid Tailgate 5,085 $14.00 $71, UT Parking Lease 41,620 $5.00 $208, Year Totals 174,953 $1,149, After-Hours Parking by State Employees - FY During the 79 th Regular Legislative Session, Senate Bill 1533 was passed allowing state employees to utilize one parking space at no charge during events occurring after normal state business hours. In compliance with SB 1533, TFC has provided one (1) parking space free of charge for all state employees who present their official State of Texas State photo identification cards at a TFCmanaged parking facility during a paid parking event. TFC s compliance with this statute has resulted in the loss of potential parking revenue that would otherwise be collected by the State. Currently, the standard after-hours parking fee set by TFC is $7.00 per space. Following is summary information from the FY reporting period showing the total number of spaces utilized by state employees at no charge and the potential revenue to the State if the current standard fee was charged for the use of these spaces. During FY 2011, the total number of spaces utilized by state employees at no charge: 17,286 SB FY 2011 Potential Spaces Utilized Standard Rate Revenue Uncollected 17,286 $7.00 $ 121,

7 During FY 2012, the total number of spaces utilized by state employees at no charge: 17,798 SB FY 2012 Potential Spaces Utilized Standard Rate Revenue Uncollected 17,798 $7.00 $ 124, FY Total number of spaces utilized by state employees at no charge during FY reporting period: 35,084 spaces at $7.00 per space = $245,588 potential gross revenue for the biennium that was not collected. Spaces Utilized Standard Rate Total FY ,286 $7.00 $ 121, FY ,798 $7.00 $ 124, Biennium Totals $ 245, As illustrated by the chart above, if these fees had been assessed and collected, it would have increased gross revenue by $245, or 13.8% over the biennium. II. Program Initiatives and Issues Numerous facility deficiencies hinder the Commissions ability to develop private, commercial uses for state-owned parking lots and garages outside of regular business hours. For example, the lack of access controls at the 165 points of ingress and egress in the thirty parking facilities included in the program inhibits TFC s ability to prevent conflicts between state employee parking and collection of parking fees from unauthorized users. TFC is evaluating solutions, listed below, to correct and mitigate this and other deficiencies and will continue to pursue initiatives to increase efficiencies and revenues generated from parking leases. Access Controls: Installation of gated devices or control arms to secure parking facility access points and prevent unauthorized use of state parking spaces and non-payment of parking fees; Enterprise Parking Management System (EPMS): Implementation of an EPMS will increase revenues by accepting multiple forms of payments (cash, coin, credit), reduce dependence on third party contract parking operations and improve the rate of collections for violations through integration with DPS s T2 Parking Management software. The EPMS will eliminate time consuming manual operations by the configuration and control of digital pay stations that adjust rates in real time according to established schedules or special 7

8 events. In addition, the system will monitor availability and utilization of parking spaces, prevent the State from being forced to share revenues with private management companies; Lost Revenues: Mitigating lost after-hours revenue due to free state employee after-hour parking during paid parking events as provided for in Texas Government Code, Title 10, Chapter 2165, Subchapter E, Section (g) and as discussed in Section I of this report. 8

9 Commercial Parking and Events 1711 San Jacinto, Suite 100 Tel Fax