A communication transmitted from Yi-An Huang, City Manager, relative to Awaiting Report Item Number 24-15, regarding recommendations for adjusting parking permit fees to better align with associated costs

Page1 of 2 TRAFFIC, PARKING, + TRANSPORTATION BROOKE MCKENNA, COMMISSIONER 344 Broadway, Cambridge, MA 02139 MEMORANDUM To: Yi-An Huang, City Manager From: Brooke McKenna Transportation Commissioner, Traffic, Parking, + Transportation Department Date: May 16, 2024 Subject: Awaiting Report No. 24-15: Recommendations for adjusting parking permit fees to better align with associated costs. ___________________________________________________________________________ In response to Awaiting Report No. 24-15 of 3/18/24 requesting recommendations for adjusting parking permit fees to better align with associated costs while incorporating a tiered structure that takes into account low-income users and larger vehicles, with the report submitted in time that any recommended fee adjustments may be made for next year’s cycle of resident permit applications, we report the following: Based on an analysis of the costs associated with the administration of the Resident Permit Parking Program, we recommend that the fee for a Resident Parking Permit be increased from $25 to $75. In addition to raising the standard cost for a Resident Parking Permit, we will implement a system for income-eligible Resident Parking Permits where the cost will remain at $25. Both standard and income-eligible Resident Parking Permit costs will continue to include a Visitor Parking Permit. The cost for a Visitor Parking Permit without a Resident Parking Permit will remain at $25. As previously outlined in Acting City Solicitor Megan Bayer’s Response to Awaiting Report No. 24-4 of 1/22/24 Re: Report on recommendations and legal opinions for adjusting transportation related fees and other considered changes based on the conversations in committee on December 6, 2023: Applying the Emerson College test to the City’s residential parking permit fees, the courts would likely find the current fees charged for the residential parking permits valid. The fees are charged in exchange for a particular governmental service, residential parking registration and stickers, for the use of City property (its public ways) for parking, which only benefits the party paying for the service and is not shared by others.

The fee is paid by choice; residents have the option of not utilizing the service if they so desire. Finally, the fee currently charged is not collected to generally raise revenue but to compensate the City for providing the service and managing the expenses related to it. The recommended fee increase presented above is in keeping with our current fee structure and reflects an updated accounting of the costs of administering the Resident Parking Permit Program. The issue of raising fees for Resident Parking Permits based on the size of the vehicle is more complex and would need significant further exploration from both a legal and a practical perspective. As Acting City Solicitor Megan Bayer previously reported in her above-mentioned opinion: If the fee amount is changed in a manner unproportional to the use of the City’s public ways for residential parking and the cost of operating the residential parking program because some vehicles are charged more based on type, the fee may be subject to challenge as an impermissible tax. Additionally, the fee may be subject to challenge if the purpose of the fee change is to meet the City’s climate goals because then the purpose of the fee would be to benefit all members of society and not just the party paying the fee. Given these concerns, we do not recommend pursuing changes based on vehicle size at this point. No changes to the price of the Resident Parking Permit will occur until we are able to implement the income-eligible Resident Permit Program. We will need to make significant adjustments to our Parking Management Information System (PMIS). The contract for this system is in the process of being re-bid, and a new contract will be in place this fall. Once the new contract is in place, we will be able to work with the vendor to develop a timeline for the implementation of the income-eligible program. This will not occur in time for the next Resident Parking Permit renewal season. We will report back to the Council in the late Fall on our timeline for implementation.