Paso Robles gets it right, eventually, on downtown parking
September 23, 2024
In early May, the Paso Robles City Council voted 5-0 to repeal its five-year-old parking ordinance and restore free parking to downtown. This decision came after several false starts, legal challenges, and a petition drive opposing the parking plan that eventually gathered an estimated 2,400 signatures. And it came over the opposition of the town's Mayor, who commented to the San Luis Obispo Tribune, “It appears this is how a small group of Roblans with little business sense wants to manage downtown public parking for their own gain or in reality, loss” and “I am absolutely done with parking.”
How did we get to this bruising debate? And why did it take so long to come to a conclusion that was overwhelmingly supported by both residents and visitors? The good news is that, in the end, I think they came to the right decision. As for why it became such a saga and why it took so long to come back to where things were at the beginning, that's for me a fascinating story that boils down to the intersection of local politics and market economics. The effort to understand what happened gave me a good chance to dust off my old economics degree, as it pitted two different core theories of economic behavior against each other.
Back in 2019, in response to the frustrations of some downtown merchants, the city of Paso Robles implemented a kiosk parking system for the eight square blocks immediately around our downtown park. These business owners were worried that their customers were being displaced by employees parking all day in prime downtown spots. So, between 10th Street and 14th Street, and between Spring Street and Pine Street, the city installed 35 kiosks where you could register your license plate for two hours of free parking, or you could pay by the hour for more. The goal was to incentivize employees to park a little further away from the most in-demand parking spots, leaving those spots open for customers. The kiosks were active weekdays during business hours (9am - 6pm). This is a classic implementation of the economic Theory of Price. One of that theory's core postulates is that the optimal market price is the point at which the total number of items available can be reasonably consumed by potential customers. In this case, the marketable good is parking. And the potential customers are parkers. When the price of that parking is zero, it encourages overconsumption, in the form of the employees of downtown business choosing to take up prime spots all day and displacing those stores' potential customers. In theory, raising the price should reduce the demand for those parking spots, meaning that enough of the spots should be open when a customer is looking that they don't have to circle endlessly or park several blocks away. The city quoted a goal of having 85% of the spots filled at peak times.
From the beginning there was unhappiness with the plan. The kiosks and the downloadable app that paired with them were clunky; the WayToPark app has a 3.2/5 star rating on the App Store, and the fact that there are only 17 reviews is an indicator of how few places used it. It became routine to see worried-looking visitors hurrying from their cars to the kiosks to make sure they figured out what they needed to do before they got ticketed. Older residents filled comment sections of local newspapers saying they just wouldn't go downtown. And the kiosks weren't making enough money to pay for their enforcement, let alone repay the cost of putting them in. In 2021, the City Council expanded the active hours to include weekends and weeknights until 8pm after reporting that the kiosks generated only $45,000 in parking fees during the first 18 months the parking ordinance was in effect, and that the loan balance for the program's research, purchase, and installation was nearly $600,000. To help enforce the parking, it also authorized three part-time enforcement officers (estimated annual cost: around $60,000) to supplement the parking supervisor (annual salary: around $80,000).
Fast forward another two years. By late 2023, significant resistance to the parking plan had grown among residents. And I get it! I'm tech-savvy, and I understand the town of Paso Robles and could usually find a free place to park. I don't think I ever paid for parking, and never got a ticket (though I did have to argue my way out of one when I parked in a loading zone, hazards on, to pick up some take-out). But I still thought it was a mistake. In September of 2023 I sent a note to some community leaders pointing out that we were in a competitive market for tourist visitors, and any friction created by the parking system put us at a disadvantage. I had noted in trips in the fall of 2023 that other attractive California tourist destinations had a simple 2-hour parking limit. The relevant piece of my note was:
I think that the parking app/regulation we have in Paso is a mistake, and puts us at a disadvantage compared to other wine destinations. As I've been traveling around California, I've noticed that towns like Healdsburg, and Sonoma, and Carmel all have a simple 2-hour parking limit in their downtowns. No app to download. No need to text. No payment required. Just move your car after two hours. I don't know the finances of what we have, but I'm guessing it doesn't bring in enough money to pay for itself. And if it leaves a slightly frustrated feeling in visitors' minds as they try to navigate it, that's going to color their experience of visiting Paso overall and make it (by I'm sure a very small margin) less likely for them to want to come back. In this environment where every guest is valuable and we know everyone is worried about traffic, I think we need to be advocating for town policies that benefit us. If I've noticed recently how much easier it is in other places, I'm sure I'm not the only one.
I evidently wasn't the only one expressing my opinion. The City Council had already responded to constituent feedback by creating an ad hoc committee to investigate parking options, which held several sessions soliciting community input. They presented their recommendations to the City Council at a meeting on November 21st. Perhaps not surprisingly, the recommendations that they said had universal support all carved exceptions out from the parking requirements, including free parking on Tuesdays and Wednesdays, more free parking permits for local seniors, free parking in the city lot behind City Hall and the Paso Robles Library, and better signage. After the head of the committee presented the committee's recommendations, the City Council opened the floor to public comment. One commenter after another gave impassioned pleas to urged the city to do away with paid parking in favor of something simpler and friendlier to visitors and locals alike. Against at least 20 comments opposed to the parking plan, there was just one in support of it.
After the commenters were done, the City Council members weighed in. Everyone agreed that the current system was nearly universally unpopular. And yet the decision that emerged was somehow even more onerous. New City Councilmember Sharon Roden asserted that the parking plan didn't satisfy anyone because it was too easily manipulated, that there was a convoluted system in place that people had to navigate which still didn't bring in enough money to cover its costs. She proposed a $2/hour parking charge from minute one. Her plan, she said, would actually achieve the goal of forcing people to think hard about how much they valued downtown parking spots, and would have the additional benefit of raising over $1.1 million dollars to fund the program and pay for another project, adding better lights downtown. Although some council members expressed doubts -- I was impressed, particularly, by Councilmember Fred Strong's reconsideration of his support for paid parking after listening to his constituents -- the Council decided to implement her plan, though at only $1 per hour rather than $2. You could hear audible gasps from the audience.
From an economic standpoint, she wasn't wrong. Putting a value on a scarce commodity encourages its responsible use. But she (and the majority of the Paso Robles City Council) had fallen victim to another classic economic theory: the sunk cost trap. People, businesses, and governments have psychological biases toward evaluating the future value of a project in part through the past costs that have been invested in it. It doesn't matter if those costs can't be recovered. The fact that they were spent means that there is extra incentive to continue forward to justify the past expenditures. In this case, the more than half a million dollars that the city was carrying on its balance sheet that was earmarked as due from the downtown parking program encouraged the city councilors to try to take actions that would repay those costs, even if those actions did not help their constituents.
To me, it was clear that this latest change would result in more harm to their constituents. If even the relatively cost-free system that was in place tended to discourage people from going downtown, adding costs while requiring the use of the same clunky app and kiosks couldn't improve people's experience. We (the city of Paso Robles) are in a competitive market for out-of-town tourists, and compared to the ease of parking in a comparable destination like Sonoma, or Carmel, or Healdsburg, the hassle of dealing with the kiosks, and the potential for a ticket, would act in a small way to color visitors' impressions of their experiences. If even 1% of visitors left with a less-happy memory of their visit here, we had lost their future business. The community had lost their referrals. And the town had lost their future tax revenue.
If City Council members were in doubt of the community's viewpoint, that doubt was dispelled with the outpouring of glee from residents and businesses that greeted the town's announcement in February that all parking fees would be suspended due to the receipt of a cease and desist letter from a community member that pointed out that the proposal to overhaul the parking system wasn't on the published agenda of the November meeting, and therefore the decision violated the Brown Act. The parking free-for-all was originally supposed to be temporary, but after hearing from business owners at the May meeting that their traffic improved during the free parking period, and receiving the petition signed by 2,400 residents asking them to restore free parking, the city council voted to end it permanently. And now the 35 kiosks are for sale. If you want to track the former footprint of these kiosks, their locations are individually numbered around the downtown square:
Even though I agree with the City Council's decision to restore free parking, it's hard to be happy about the process it took to get here. The city of Paso Robles paid a consultant hundreds of thousands of dollars to decide on a system that cost hundreds of thousands of dollars more. It hired multiple people to enforce a system that never covered its expenses, let alone recouped its initial investment. The debate that resulted pitted business owners against each other and many locals against the out-of-town customers who drive so much of our local economy. The system's clunkiness likely resulted in some degree of guests feeling like a visit to downtown Paso Robles was cumbersome, while a small number of guests likely have an acutely unpleasant memory of a parking ticket. And all because some business owners complained that employees were taking up too many prime parking spots -- and yet couldn't make the case to those employees that they needed to park elsewhere.
As much as I've enjoyed just pulling into a downtown parking spot over the last six months -- and I feel compelled to point out that I haven't once had to park more than a block away from my destination -- it's worth wondering if we're just going to find ourselves back in the same situation the original parking system was designed to address. It seems possible. Maybe businesses will do a better job of instructing their employees where to park. But I'm hopeful that the experience of sourcing, implementing, staffing, and ultimately decommissioning this kiosk-based system would encourage the city to take a different approach should they revisit the issue. If they do, I hope they look to the neighboring communities that I've mentioned a few times in this post, and look to a simple two-hour parking limit. If you overstay your limit, you are subject to a ticket. It doesn't seem like a system like this would require a lot of enforcement, or much in the way of implementation cost.
While it may not be an economic theory, there is a final principle that I think could shed some light on where things went wrong. That principle is Occam's Razor, which states that when presented with multiple solutions to (or explanations for) a problem, the simplest tends to be the best. In this case, a simpler solution seems like it should have been tried before the plan that was adopted. Meanwhile, take a visit to downtown Paso Robles. Spend that minute you saved not having to enter your parking info enjoying the beautiful downtown park. And if anyone you know is in the market for a used parking kiosk, I know where they can find one.