TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Kristin Retherford, Department Director, Community Planning & Development
SUBJECT:
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Ordinance Bill No. 8-25 amending Salem Revised Code Chapter 102 related to time limits in the Downtown Parking District for metered on-street parking and proof of payment.
Ward(s): Ward 1, 2
Councilor(s): Councilors Tigan, Nishioka
Neighborhood(s): Neighborhoods - CANDO
Result Area(s): Result Areas - Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy
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SUMMARY:
summary
Starting in July 2025, the on-street parking system in the Downtown Parking District will be modified with new pay stations. The new pay stations allow for payment of up to 12 hours of continuous parking, and the existing 3-hour free parking will be eliminated for all on-street parking. To pay for their parking vehicle operators will be required to provide their vehicle license plate number at the pay station to generate an electronic record of their parked vehicle in the new system; and enforcement officers will enter the license plate number to verify paid time for the vehicle has not expired.
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ISSUE:
Shall the City Council Advance Ordinance Bill No. 08-25 to second reading for enactment?
RECOMMENDATION:
recommendation
Advance Ordinance Bill No. 08-25 amending Salem Revised Code Chapter 102 related to time limits for metered on-street parking and proof of payment to second reading for enactment.
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FACTS AND FINDINGS:
Ten years of downtown parking utilization studies have recommended replacement of the current Downtown Parking District model with a performance based on-street paid parking management system. The Downtown Parking District system taxes downtown businesses an annual parking tax that partially funds the operating costs of the district along with parking permit fees.
Implementation of an on-street performance-based system of parking and elimination and/or phasing out the parking tax would move the system toward revenue sources that spread cost recovery to a larger parking base. A large portion of the parking district system is in 1,106 on-street stalls that are provided free of charge to customers. The district has 1,225 off-street spaces in non-permit stalls. The burden of cost recovery for delivering a high-quality parking system is placed on the parking tax, and the permit program which only represents 31% of the stalls in the system.
The revenue generated from the Downtown Parking Tax and permit fees is not sufficient to cover the increased costs of operating the Downtown Parking District. Revenue reductions are a result of large retail closures (Nordstrom, JC Penney, TJ Maxx), and changes in permit parking demand due to remote work. Since 2013 the downtown parking tax has been capped at 2% annual growth or the CPI, whichever is less. The parking tax has not kept pace with the inflationary impacts to the costs of operating the downtown parking system.
The Parking Services Division of the Community Planning and Development Department administers parking fees for a variety of uses including residential, carpool, employee permits in all City Parking Districts. It maintains all City parking meters and monitors parking within City-owned parking surface lots and Parkades as well as on-street spots. According to Salem Revised Code 102.010(b), the City Council establishes all fees for parking.
New parking meters will be installed for on-street paid parking in the Downtown Parking District, activated for up 12 hours a day in accordance with the specific time limited parking zone they serve, Monday through Saturday, starting July 10, 2025. Revenue from metered parking in the Downtown Parking District will be assessed in six months and again at the end of FY26. Revenue information will inform when the tax, per Salem Revised Code 7.110, can sunset.
Staff developed and implemented an outreach plan for to introduce the new meters and time-limited parking to target a wide range of parking patrons, using multiple outreach methods and messaging throughout the launch phase of the project. The outreach methods include a public survey, a project website, informational brochures and media and meetings with downtown business and neighborhood associations.
BACKGROUND:
At the February 27, 2023, City Council Meeting, City Council directed staff to return to City Council with a plan to implement paid on-street parking in the downtown parking district and phase out the parking district tax.
Mitch Nickolds
Compliance Services Manager
Attachments:
1. Ordinance Bill No. 08-25
2. Ordinance Bill No. 08-25 Exhibit A