Santa Monica City Council unanimously approved significant parking rate increases that are projected to generate an additional $8.2 to $8.9 million annually, while striking a compromise to retain 30 minutes of free parking in downtown structures instead of eliminating the grace period entirely.
The 7-0 vote came after extensive public input and debate over proposals that would raise rates across the city's 42 parking facilities for the first time since 2018, despite 25% inflation over the past seven years.
"We're dependent upon this parking revenue," said Zach Pollard, the city's parking manager. "6.6% of the total revenue the city makes comes from parking and 7.7% of the general fund revenue comes from parking."
The approved plan reduces the current 90-minute free parking period in downtown structures to 30 minutes, then implements a simplified flat-rate structure designed to encourage longer stays. Under the new system, parking will cost $2 for the first three hours on weekdays and $3 on weekends, compared to the current escalating rates that reach $5-6 for three hours after the free period expires.
Council members chose the compromise after hearing concerns from businesses and parents who use downtown parking for quick trips. "We have at least two preschools where families are going to be picking up their kids," said Council Member Hall, explaining his support for retaining some free time.
Beach parking will see the steepest increases, with popular central beach lots rising from $15 to $20 on weekdays and maintaining $20 rates on weekends during peak season. Northern and southern beach zones will increase from $10-12 to $12-15 depending on the season and day of the week.
Street meter rates will rise modestly from $2.50 to $3 per hour downtown and from $1.25 to $1.50 citywide.
The rate restructuring drew mixed reactions from the business community. Tim Oakes, COO of Hot Eight Yoga, expressed concern about losing the longstanding free parking benefit. "We've enjoyed 90-minute complimentary parking for our students for the past 15 years," he told the council.
However, Connor Webb voiced support, saying "I strongly support the right pricing of parking. We need to at least be raising prices with the consumer price index."
City staff argued the changes will ultimately benefit businesses by encouraging longer visits downtown. Currently, 47% of users leave before the 90-minute free period expires, meaning longer-staying customers who are more likely to spend money subsidize shorter visits.
"The free period upfront and the rapidly escalating fees encourage shorter stays," staff reported. The new flat-rate structure is designed to create a "sunk cost" that incentivizes visitors to remain downtown longer.
The changes reflect the city's strategy to revitalize downtown and the Third Street Promenade as an entertainment destination. Downtown parking structures currently operate at about half capacity, providing room to adjust pricing strategies.
Monthly employee parking permits will decrease 20% from $220 to $176, addressing affordability concerns for retail and hospitality workers. The city will also maintain employee validation programs at $6 for six hours and $9 for 12 hours.
Anuj Gupta, Director of Transportation, noted that "many of the businesses voiced through DTSM are very excited about the idea of these flat rates and simplified structure."
The council directed staff to work on discounted validation programs for fitness studios, personal services and small retailers, and to return in one year to assess the program's effectiveness.
Implementation faces a lengthy approval process. The city must obtain a Coastal Development Permit from the California Coastal Commission, which could take up to a year. About 85% of Santa Monica's parking facilities lie within the coastal zone, requiring state approval for rate changes.
If approved by the Coastal Commission, new rates would take effect in October 2026. The revenue increase will help fund maintenance of aging parking structures, many built in the 1960s, and support other city services including public safety and infrastructure improvements.
The city conducted extensive community outreach before the vote, including surveys of 1,200 people and virtual input from 160 participants through QR codes at parking facilities.