SFMTA moves parking optimization package forward to help close budget gap; contractors raise concerns over permit fee hike

The SFMTA board on March 20 directed staff to move forward with a parking optimization package that staff estimated could yield as much as $18 million in annual net revenue or savings if implemented.

Streets Director Victoria Wise presented the package, describing three revenue legs: off'street garages, on'street meters, and parking enforcement. She said staff have modernized garage operations over the last several years and recently completed a parking operations automation program that helped reduce costs and maintain net income despite a 20% drop in gross garage revenue since the pandemic. Staff stressed they continue to seek new uses for underutilized garage space.

The proposed on'street measures include: - Raise the meter floor from $0.50 to $1.00 per hour (estimated ~$1.2M annually). - A one'time across'the'board $0.25 hourly increase (estimated ~$3M annually). - Pass through the mobile app convenience fee (currently absorbed by the agency). - Increase contractor parking permit charges (proposal to move from ~$2,412 to roughly $3,074 per year) by recalculating permit costs to reflect meter replacement value and usage patterns. - Extend common meter time limits from 2 to 4 hours in commercial corridors (staff estimated a modest revenue effect and expected this change to help local businesses by allowing longer visits while preserving turnover).

Parking enforcement proposals include expanding weekend enforcement, better use of license plate recognition (LPR) tools to increase efficiency, and internal staffing realignments to reduce supervisor-to'staff ratios. Staff also noted hiring progress: a 26'person parking control officer class is mid'training with expected graduation in May.

Board response and public comment: Contractor groups and trade associations objected to the contractor permit fee increase, calling a 27% jump steep and urging additional outreach and justification. Several public commenters supported the package overall but asked that contractor fees be structured equitably (some suggested income'based scaling; staff and counsel said basing the fee on gross revenues could amount to a tax and raise legal/implementation issues). Transit advocates and neighborhood groups urged the board to also implement previously approved expansions of paid meter hours (evenings and Sundays) that staff said could generate substantially more revenue; staff said those measures will be brought forward consistent with board guidance and legal requirements.

Board action and next steps: The board voted unanimously to direct staff to advance the parking optimization package and return near'term items for ordinance or consent calendar votes. Staff will continue outreach on the contractor permit methodology and will bring back specific ordinance language and financial projections for board approval.

Why it matters: Staff estimated combined parking measures could yield meaningful revenue toward the agency'wide shortfall; the package ties directly to the earlier budget item where parking optimization was cited as part of the mix to avoid deeper service cuts.

Quotable: Victoria Wise said recent rate steps are "expected to generate $2,500,000 for the agency" and described the package as a mixture of short'term rate adjustments and longer term operational changes to the city's parking portfolio.

What to watch next: Staff will return with draft ordinance language for any items requiring board approval, detailed revenue estimates and equity analysis for the contractor permit change, and an implementation schedule for weekend enforcement and LPR deployment.