Description
Offering parking at a daily rather than monthly rate reduces the financial incentive to drive daily by making parking costs more variable.
Implementation Details
- Encourage local jurisdictions to adopt parking pricing ordinances that prohibit discounted monthly permits in civic centers and downtowns, especially in areas with significant event-based parking demand.
- Implement mobile payment systems and dynamic pricing strategies in public lots, using demand-based rates to discourage long-term car storage in non-residential garages.
- Partner with employers to offer commuter benefits and cash-out options that incentivize giving up monthly parking passes.
Mitigation Potential
Providing parking at a monthly rate means there is no additional cost of driving each day, encouraging commuters to drive when not required. Implementing parking at a daily rate increases the daily cost of driving and incentivizes alternative modes, reducing VMT. Similar linked strategies related to parking pricing may be used to quantify this strategy when appropriate, however care must be used in using these methods as land use can also heavily influence the viability of strategies such as these and market based parking pricing may be more effective than a daily strategy depending on the context of implementation.
Linked Strategies
Equity Considerations
Shifting to daily pricing improves fairness by ensuring that occasional drivers, including low-income residents, do not subsidize the costs of parking for wealthier monthly permit holders. It supports transit use among workers with variable schedules and reduces economic barriers for those without the ability to prepay. Programs should also support cash-based payment options for unbanked individuals.
Funding Sources
Unlikely to require additional funding, but will require staff time. Planning for alternative parking strategies can be funded through RCTC’s Measure A program, Caltrans Sustainable Transportation Planning Grants, and CMAQ. Proximity to transit and active transportation networks may impact eligibility to a broader range of funding programs.
Examples/Case Studies
State of California Employment: The State of California’s DGS-OFAM Parking Policy
The State of California’s Department of General Services (DGS) Office of Fleet and Asset Management (OFAM) oversees comprehensive parking policies for state employees, agencies, and departments. OFAM provides both monthly and daily parking options through DGS-managed facilities located near key landmarks such as the California State Capital, Golden 1 Center, Capitol Mall, and various museums in Sacramento.
UCLA Parking Cash-Out Program
UCLA’s program provides cash incentives for employees who decline monthly parking permits. Daily pricing discourages long-term vehicle storage and supports occasional transit use. This model helped reduce Single Occupancy Vehicle commute rates significantly on campus
(Source: UCLA Parking Pricing Toolkit).