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Planning and Development proposes taking downtown parking operations in-house, predicts savings after automation
Summary
Director Jennifer Clark told council the Planning & Development proposal would bring parking garage management back under city control when ACE's contract ends in January 2026, after planned automation work; staff expect net-neutral first-year operations and ongoing annual savings thereafter.
Planning and Development Director Jennifer Clark told council the department’s FY26 budget includes a major operational change—bringing downtown parking operations in-house when the private ACE contract ends in January 2026.
Clark said the department evaluated the cost of private management versus internal operations and is proposing an in‑house model that depends on a planned automation project for downtown garages and lots. The department’s analysis projects a net‑neutral first year for parking operations and an ongoing operational savings of about $500,000 annually beginning in FY27, after automation completes and the city reduces booth staffing.
Clark described how automation will allow “gateless” parking in downtown garages—ParkMobile, pay‑on‑foot stations and license-plate recognition would be used instead of staffed entry booths. Staff said parking revenue has increased in recent years to more than $6 million annually and that the department anticipates additional revenues from leases and event activity, though the city still subsidizes parking operations from the general fund (department figures show parking operations budgeted at about $10.7 million and revenues of roughly $6.4 million, leaving a general‑fund subsidy of about $4 million in the current year).
Councilmembers pressed staff about details: how event‑rate arrangements are managed (the convention center and stadium have event agreements affecting surrounding meter rates), revenue splits for events, deferred‑maintenance planning for structurally complex garages, and the need to set aside funds for future garage repairs. Clark said a pavement/structural assessment is planned and that capital and bond financing proposals for a larger resurfacing program will be discussed at the budget workshop.
Ending: The department framed the move to internal parking management as enabled by automation and aimed at long‑term savings. Council members asked staff to provide contract and revenue details for event agreements, and to identify deferred‑maintenance funding options for aging garage structures.
