1

Fall 2008 and Fall 2009

Parking Permit Fee Proposal

February 2008

2

Current Financial Requirements

• Reserve requirements– TAMU Rule 23.02.02.M1, dated April

24,2006, requires that all university auxiliary departments maintain a three month operating reserve

– In addition, the rule requires the auxiliary to maintain 115% of the succeeding year’s annual debt service payment as funds not allocated or budgeted for any other purpose

3

Current Financial Requirements

• Deferred maintenance/capital renewal– Estimates suggest that $2M/year is needed

to address deferred maintenance– In addition, $1M/year is needed going

forward for capital renewal

• New budget assessments began in FY07– Auxiliary assessments in the amount of

$387K– Group Insurance Premium assessment in the

amount of $74K

4

Current Financial Requirements

• Increased utility costs– Utility costs for parking are expected to

increase from $394K in FY05 to $662k in 2006 to $972K in FY07. They are expected to remain in the $1M range for the next few years.

• The savings from the reduction in force and reorganization have been offset by the new assessments and increased utility costs

5

Financial Impact of the Increase

Parking Reserve Projection

0.0

5.0

10.0

15.0

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

$ M

illi

on

s

Reserve Balance Required Reserves

6

Proposed FY08-FY11 Rates Compared to FY06-FY07

RatesPermit Type FY06 FY07 FY08 FY09 FY10 FY11Garage:

Priority Bay 504$ 504$ 600$ 660$ 720$ 720$ Reserved Num. 459 459 516 576 612 612 Faculty/Staff Unres. 374 374 420 432 444 444 Student Unres. 374 374 420 432 444 444 West Campus Garage 374 374 240 264 280 280 Surface Lot:

Student 210 210 240 264 280 280 Faculty/Staff 175 175 240 264 280 280 Reserved Num. 351 351 420 504 612 612 Motorcycle 63 63 80 85 88 88 Night Parking 63 63 80 85 88 88 Gated 247 247 312 336 360 360 University Apartments 159 159 192 216 240 240 Other:

Business Permits - - 25 ? ? ?

Proposed

7

Proposed Strategy

• The recommended strategy was to increase parking permit fees in FY08, FY09 and FY10– Eliminate free parking and services (e.g. retirees,

university vehicles, traffic control services) • special events incl. football ($2 per space increase FY08)• business permits ($25 FY08)

– Begin to address the deferred maintenance/capital renewal needs

• Completed a detailed assessment of every parking lot and garage on campus and ranked them according to condition

– Lots in the worst condition: 1, 23, 30, 32, 36, 37, 38, 47, 51, 50, 55, 61, 64, 72 and 100j

– Begun replacement of expansion joints in Southside Garage– Planning phase for rebuilding Lot 1 at the Connally Building– Researching means of reducing construction costs

8

Proposed Strategy

– The proposed strategy will meet reserve requirements as required by TAMU rules within 5 years

– Maintain current service levels– More closely align fee structure with service

levels• $25 Business Permit fee had 10% reduction in the

number of Business Permits• TSAC continues to discuss the Business Permit

program

– Achieve long term financial sustainability

9

Rationale for Specific Increases

• Reserved numbered spaces– Higher level of service– Higher cost of enforcement– Lower utilization of spaces

• Reduced WCG rate – Replaces overnight parking in Lot 100, which is

a problem for special events– Increased usage of WCG (5400 permits)– Moves students from Reed Arena (Lot 100)– Gives access on football game days (abuse)

10

Rationale for Specific Increases

• Faculty/Staff surface lot – Adjusts the price differential between

student and faculty/staff parking which maintains

• University business overlays– Currently offered at $25, a small reduction in

the cost born by other permit holders– Reduces utilization of visitor and permit

parking areas

11

Proposed Project Costs FY08 - FY11

FY 2008 Improvements Est. Cost FY2009 Improve. Est. Cost FY 2010 Improve. Est. Cost FY 2011 Improve. Est. Cost

Repave Lots 1 & 30A-

C; 355,829 sq ft of

asphalt 1,450,000$

Repave Lots 36A-C;

263,614 sq ft of

asphalt 1,375,000$

Repave Lots 23, 32,

37, 38, 47, 51, 55 &

64; 671,008 sq ft of

asphalt 3,201,436$

Repave Lots 100 J

& 72; 255,130 sq

ft of asphalt 1,184,183$

Seal coat existing

lots 100,000

Seal coat existing

lots 50,000

Seal coat existing

lots 350,000

Seal coat existing

lots 125,000

SSG Repairs 100,000 CCG Repairs 50,000 NSG Repairs 150,000 UCG Repairs 75,000

Other Repairs and

Improvements as

Needed 350,000

Other Repairs and

Improvements as

Needed 25,000

Other

Renovations as

needed 200,000

Other

Renovations as

needed 25,000

Additional Debt

Service Projects -

Additional Debt

Service Projects -

Additional Debt

Service Projects -

2000 space

garage - 30m 2,401,436

2,000,000$ 1,500,000$ 3,901,436$ 3,810,619$

Notes:

The Garage Estimate is just that. Many things could change the amount paid after completion including that date, final size determined

and interest rates obtained on final debt principal.

12

Visitor Parking Demand

• Increased daytime demand in garages• Desire for consistent pricing on campus• Lot 72 overcrowding after 7pm• Desire for increased access to Evans

Library• Desire for increased access to UCG for

student activities at night

13

Visitor Parking Strategies• Daytime rate increase• Nighttime rate decrease• Add visitor spaces on the north side of

campus• Move business and campus permits above

the gates in University Center and Northside Garages

• Allow departmental reservations above the gates in University Center and Northside Garages

14

Visitor Parking Rates

LocationDaytime: HoursUCG, CCG, NSG, Lot 72 1/2 1 1 1/2 2 2 1/2 3 3 1/2 4 4 1/2 5 5 1/2 6 6 1/2 7 7 1/2 8

(Present Rates) $ 2.00 $ 2.00 $ 3.00 $ 4.00 $ 4.50 $ 5.00 $ 5.50 $ 6.00 $ 6.50 $ 7.00 $ 7.50 $ 8.00 $ 8.50 $ 9.00 $ 9.50 $ 10.00 (Proposed Rates) $ 2.00 $ 2.00 $ 4.00 $ 4.00 $ 5.00 $ 6.00 $ 6.50 $ 7.00 $ 7.50 $ 8.00 $ 8.50 $ 9.00 $ 9.50 $ 10.00 $ 10.50 $ 11.00

7.34% 17.01% 24.87% 15.60% 9.34% 6.16% 4.82% 3.25% 2.30% 1.91% 1.33% 1.03% 0.88% 0.69% 0.53% 0.46%Transient Duration Percentage of Total

(Taken from UCG over 2 month period)

WCG (Present Rates) $ 1.00 $ 1.00 $ 1.50 $ 2.00 $ 2.25 $ 2.50 $ 2.75 $ 3.00 $ 3.25 $ 3.50 $ 3.75 $ 4.00 $ 4.25 $ 4.50 $ 4.75 $ 5.00 (Proposed Rates) $ 2.00 $ 2.00 $ 4.00 $ 4.00 $ 5.00 $ 6.00 $ 6.50 $ 7.00 $ 7.50 $ 8.00 $ 8.50 $ 9.00 $ 9.50 $ 10.00 $ 10.50 $ 11.00

Nighttime: HoursUCG, CCG, NSG 1/2 1 1 1/2 2 2 1/2 3 3 1/2 4 4 1/2 5 5 1/2 6 6 1/2 7 7 1/2 8

(Present Rates) $ 1.00 $ 1.00 $ 1.50 $ 2.00 $ 2.25 $ 2.50 $ 2.75 $ 3.00 $ 3.25 $ 3.50 $ 3.75 $ 4.00 $ 4.25 $ 4.50 $ 4.75 $ 5.00 (Prposed Rates) $ 0.50 $ 0.50 $ 1.00 $ 1.00 $ 1.50 $ 1.50 $ 2.00 $ 2.00 $ 2.50 $ 2.50 $ 3.00 $ 3.00 $ 3.50 $ 3.50 $ 4.00 $ 4.00

WCG (Present Rates) $ 0.50 $ 0.50 $ 0.75 $ 1.00 $ 1.25 $ 1.50 $ 1.75 $ 2.00 $ 2.25 $ 2.50 $ 2.75 $ 3.00 $ 3.25 $ 3.50 $ 3.75 $ 4.00 (Proposed Rates) $ 0.50 $ 0.50 $ 1.00 $ 1.00 $ 1.50 $ 1.50 $ 2.00 $ 2.00 $ 2.50 $ 2.50 $ 3.00 $ 3.00 $ 3.50 $ 3.50 $ 4.00 $ 4.00

Lot 72 (Present Rates) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - (Proposed Rates) $ 0.50 $ 0.50 $ 1.00 $ 1.00 $ 1.50 $ 1.50 $ 2.00 $ 2.00 $ 2.50 $ 2.50 $ 3.00 $ 3.00 $ 3.50 $ 3.50 $ 4.00 $ 4.00

15

Appendix

• Parking Permit Pricing History• How Do We Compare to Other Universities?• How Do We Compare to Other Big 12

Schools?• Debt Service Challenges• Cost Savings/Reductions• Proposed Strategies• Financial Impact of the Increase• Pre-tax Parking Fee

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Parking Permit Pricing History

• Over the last 17 years, there have been 8 price increases: FY91, FY96, FY00, FY03, FY04, FY05, FY06, and FY08

• Over that same period, demand for services and new parking facilities increased

• Historically, there has been no real strategy to guide parking fees

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Parking Permit Pricing HistoryPermit Type FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99

Commuter (9 Month) $55 " " " " $75 " " "Resident Hall (9 Month) 75 " " " " " " " "Summer Student 20 " " " " 55 " " "Night 15 " " " " 35 " " "Motorcycle 35 " " " " " " " "Faculty/Staff Lot 100 " " " " " " " "Gated Faculty/Staff Lot 100 " " " " " " " "Reserved Space 135 " " " " 200 " " "Zachry 225 " " " " 270 " " "Garage Priority 225 " " " " 270 " " "Garage Inside 200 " " " " 240 " " "Garage Roof 150 " " " " 180 " " "Garage (Not Reserved) N/A N/A N/A N/A N/A N/A N/A N/A N/A

Permit Type FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07Commuter (9 Month) $125 " " $133 $141 $210 $210 $240Resident Hall (9 Month) 125 " " 133 141Summer Student 65 " " 69 73Night 48 " " 54 57 60 63 80Motorcycle 48 " " 54 57 60 63 80Faculty/Staff Lot 132 " " 141 150 159 175 240Gated Faculty/Staff Lot 198 " " 210 222 235 247 312Reserved Space 264 " " 282 300 318 351 420Zachry 396 " " 420 450 477 504 600Garage Priority 396 " " 420 450 477 504 600Garage Inside 348 " " 366 390 413 459 420Garage Roof 348 " " 366Garage (Not Reserved) 300 " " 318 336 356 374 420

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How Do We Compare to Other Universities?

Total % Total Surveyed 2006 2006 Survey 2007-08 Not Offering

Permit or Service Hi Lo Average TAMU Service

Commuter Student 1,019$ 54$ 349$ 240$ 11%

Resident Student 1,405$ 44$ 400$ 240$ 8%

Faculty/Staff Surface Unreserved 1,476$ 54$ 493$ 240$ 0%

Faculty/Staff Surface RNS 2,268$ 240$ 984$ 420$ 52%

Faculty/Staff Garage Unreserved 1,476$ 200$ 647$ 420$ 48%

Faculty/Staff Garage RNS 2,268$ 336$ 1,152$ 516$ 71%

Game day Visitor Surface 25$ 5$ 12$ $5 to $20 N/A

Texas A&M Transportation Services Zoomerang Survey of Parking and Gameday PricingSurvey Conducted September 2006 (Big XII & Top 20)

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How Do We Compare to Other Big 12 Schools?

Big XII % Big XII 2006 2006 Survey 2007-08 Not Offering

Permit or Service Hi Lo Average TAMU Service

Commuter Student 396$ 54$ 168$ 240$ 0%

Resident Student 418$ 44$ 190$ 240$ 8%

Faculty/Staff Surface Unreserved 489$ 54$ 247$ 240$ 0%

Faculty/Staff Surface RNS 1,200$ 300$ 705$ 420$ 33%

Faculty/Staff Garage Unreserved 889$ 216$ 433$ 420$ 33%

Faculty/Staff Garage RNS 898$ 336$ 598$ 516$ 67%

Game day Visitor Surface 20$ 5$ 10$ $5 to $20 N/A

Texas A&M Transportation Services Zoomerang Survey of Parking and Gameday PricingSurvey Conducted September 2006 (Big XII Results)

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How Do We Compare to Other Big 12 Schools?

(details)

Washington Penn State Florida Maryland Rutgers Georgia Iowa Baylor Iowa State Kansas State Ok State Texas Tech Colorado Kansas Missouri Nebraska Oklahoma Minnesota Purdue

851$ 408$ 198$ 314$ 25$ 360$ 192$ 238$ 104$ 100$ 54$ 185$ 419$ 180$ 336$ 420$ 205$ 684$ 200$ to $470. to >$600.

1,703$ You can't get 702$ You can't get You can't get 600$ 456$ You can't get 665$ 1,000$ You can't get 401$ You can't get 600$ 336$ 1,032$ 740$ 1,140$ 750$ one. one. one. Less than one. one. one.

50 avail.

851$ 100$ 94$ 166$ 120$ 360$ 192$ 238$ 87$ 75$ 54$ 161$ 402$ 180$ 336$ 349$ 179$ 228$ 80$ 851$ 590$ 94$ 339$ 120$ 360$ 192$ 238$ 87$ 75$ 44$ 185$ 407$ 180$ 336$ 805$ 179$ 228$ 80$

Fall and Spring

Only.

851$ 408$ You can't get 470$ 600$ 360$ 684$ 238$ 345$ You can't get 360$ 268$ 488$ 220$ 216$ 140$ You can't get 1,332$ 200$ one. one. one.

1,703$ You can't get You can't get You can't get You can't get 600$ 1,140$ You can't get 665$ You can't get You can't get 428$ You can't get 600$ 336$ 444$ 740$ 1,452$ 750$ one. one. one. one. one. one. one. one.

If I buy an unreserved permit for a garage I will pay….

If I buy a reserved space permit in a garage I will pay…

If I buy staff permit for a surface lot space, non gated near my building I will pay…..

If I buy a staff permit for a reserved numbered surface lot space I will pay…..

If I buy a student commuter permit in a surface lot I will pay…

If I buy a resident student permit in a surface lot I will pay…

University UC Berkley Michigan Virginia UCLA UNC Mary Wisconsin UC San Diego Illinois Georgia Tech UC Davis UC Irvine UC Santa Barbara

159$ 1,800$ 640$ 432$ 1,200$ 861$ 205$ 425$ 996$ 370$ 500$ 552$ 396$ 420$ 120$ to $1,015 "License to

Hunt"

318$ 2,070$ 1,162$ You can't get You can't get 1,152$ You can't get 1,015$ 1,848$ You can't get 1,025$ You can't get 600$ 840$ 645$ one. one. one. one. one.

210$ 864$ 60$ 288$ 684$ 548$ 170$ 425$ 636$ 312$ 500$ 444$ 396$ 420$ 100$ 210$ 864$ 60$ 216$ 684$ 548$ 170$ 425$ 636$ 312$ 500$ 444$ 396$ 420$ 100$

Perimeter "License to

Only Hunt"

356$ 1,800$ 640$ 432$ 1,200$ 861$ You can't get You can't get You can't get 370$ 500$ 552$ 600$ 420$ 873$ Rone. one. one. 671$ C

408$ S

413$ 2,070$ 1,162$ You can't get You can't get 861$ You can't get You can't get You can't get You can't get 1,025$ You can't get 600$ 840$ You can't get

one. one. one. one. one. one. one. one.

If I buy an unreserved permit for a garage I will pay….

If I buy a reserved space permit in a garage I will pay…

Texas

If I buy staff permit for a surface lot space, non gated near my building I will pay…..

If I buy a staff permit for a reserved numbered surface lot space I will pay…..

If I buy a student commuter permit in a surface lot I will pay…

If I buy a resident student permit in a surface lot I will pay…

21

Debt Service Challenges

• Addition of West Campus Garage (WCG) and Pedestrian Passageway in FY05 added significant debt service and negatively impacted reserve balances:– Approximately $3MM annual debt

service for these two projects

22

Debt Service Challenges

– Planned gradual rate increases were proposed that would cover the additional debt service costs• Instead a 6% across the board increase was

approved for three years (FY03 – FY05)

• These increases did not generate enough revenue to cover the additional debt service

– Additional surface lots were built and expanded during WCG construction, which added the capacity to compete with WCG

23

Cost Savings/Reductions• In August 2005, the department

experienced a reduction in force and reorganization:– 33 positions were eliminated– Cost savings were approximately $1M

• Despite this reduction, the same level of service has been maintained by introducing technology (e.g., paying and appealing on line and pay by space machines in pay lots rather than cashiers) and consolidation of duties and functions

24

Proposed Strategy

• The alternatives left to address the current financial requirements are to:

a) increase revenues,b) decrease services, orc) a combination of the two

25

Financial Impact of the Increase

FY08 Required Reserves: Operating Reserve $2.1M Debt Service $7.3M

Total Reserve

Requirement $9.4M

FY 2009 FY 2009Budget Proposedwithout Increase FY 2009

fee increase (Decrease) Budget3,851,871$

Estimated - 3,568,533$ -$ 3,568,533$

Fees 10,621,948 10,621,948 998,835 11,620,783 Interest 290,059 295,860 - 295,860

5,966,343$ 5,989,910$ -$ 5,989,910$ 16,878,350$ 16,907,718$ 998,835$ 17,906,553$

3,283,652 3,168,071 - 3,168,071 737,741 759,874 - 759,874

1,877,294 1,900,270 - 1,900,270 812,520 825,645 - 825,645 274,538 277,284 - 277,284

1,001,430 1,031,473 - 1,031,473 2,000,000 1,500,000 - 1,500,000

118,889 121,267 - 121,267 72,736 74,918 74,918

558,661 569,834 569,834 75,041 76,542 76,542

6,349,185 6,350,000 - 6,350,000 17,161,688 16,655,178 - 16,655,178

(283,338) 252,540 998,835 1,251,375

3,568,533 3,821,073 4,819,908

Revenues

Salaries & Wages

Debt Service

HR Assessment

Fines/Visitor Pking/Other

ExpensesTotal Revenues

Fringe Benefits

VPFN AssessmentGIP Assessment

Total Expenses

Maintenance & RepairEquipmentUtilitiesCapital Purchases / Deferred Maint.IT Assessment

ENDING BALANCE

Revenues less ExpensesIncrease/Decrease in Balance

Departmental Operations

BEGINNING BALANCE - Actual

FY 2008 Modified Budget

26

Pre-tax Parking Fee

• Pre-tax option implemented FY08• 5% increase from FY07 to FY08 in

total number of participants• Approximate $140K benefit savings

per year to TAMU• 99.8% of Payroll Deduction is done

pre-tax

27

For Additional Information

http://transport.tamu.edu/parking/announce/08ParkingForums.aspx