Council shown Bayfront revenue data as staff proposes convenience fee to cover transaction costs

At the work session Derek Tokos reviewed fiscal-year transaction and revenue figures from the Bayfront operation to explain why the city is considering a convenience fee on electronic payments. He said mobile (text-to-park) transactions totaled roughly 50,000 last year with gross mobile revenue just under $120,000; vendor and card fees reduced that figure by about $25,000 while subscription/service charges totaled about $12,000, producing net mobile revenue around $80,000.

Tokos also described pay-station results and electronic-permit economics: pay stations produced roughly $88,000 gross with net revenue near $60,000, while e-permits and parking tickets are subject to a $3-per-transaction or 4% fee depending on the payment amount. Tokos said the advisory committee recommended the council consider a convenience fee to make vendor charges more transparent and help the city net closer to the intended revenue target.

"Out of 303,000 in revenue, you know, gross, I mean, we're netting around 225,000," Tokos said, summarizing the combined effects of fees and service expenses. Staff told council members it can present several convenience-fee structures — a single fixed charge per transaction or a percentage — and that a flat per-transaction fee might keep the user experience simpler.

Councilors discussed transparency to customers and the trade-offs of cash versus card payments; one councilor noted cash users avoid card convenience fees but mobile and card payments are far more common. Staff committed to including concrete fee options in the next resolution for council consideration.