Parking at Central Washington University
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1 Parking at Central Washington University James Gaudino President Central Washington University Submitted by Student 1, Student 2, Student 3 June 7, 2016
2 Contents Table of Figures... 3 Executive Summary... 4 Problem Statement... 5 Purpose Statement... 5 Research Questions... 5 Methodology... 5 Discussion of Findings... 6 Student Opinion... 6 Central Washington University s Parking... 7 Parking Garage Specifications... 7 Parking Garage Cost... 9 Parking Garage Funding... 9 SWOT Analysis Conclusion Recommendation References Appendix A
3 Table of Figures Figure 1: Satisfaction with Parking... 6 Figure 2: Student Willingness to Pay More for Parking... 7 Figure 3: Parking Garage Location... 8 Figure 4: Parking Garage Design... 8 Figure 5: Parking Garage Pro Forma
4 Executive Summary In this business report, Group Nine will discuss the feasibility of Central Washington University building a parking garage on campus. This report will begin by describing the problem and purpose statements, followed by the research questions formulated to direct this report. This report will then discuss the findings of those research questions, and give the reader the final conclusion and recommendations of this proposal. Students often complain that there is insufficient parking on campus at Central Washington University. The purpose of this report is to determine if a parking garage is a feasible solution for this problem. For this report, Group Nine interviewed Parking Services to determine the parking situation on campus. Students were also surveyed to determine student body opinion on parking. Through these two sources, it was apparent that there is indeed a problem with the parking on campus. Students are dissatisfied, and with reason; 5,150 parking passes are sold when there is a total of 1,685 permit parking spots. This report also researched the details of building a parking garage; what it should look like, how large it should be, how much it would cost to build. Expert secondary sources detailed the costs associated with building a parking garage, adding up to $15 million. This report explores how to fund the building of a parking garage. Creating an additional pass that is priced at $300 as well as raising the price of the current parking pass by $10 would fund this garage. This report concludes with the recommendation of building a parking garage as a solution to the parking issues on campus. The parking garage would cost $15 million to build, but with the increase on parking passes it could be paid off in 16.5 years. Building a parking garage would improve student opinion as well as increase the capacity for new applicants; making this a wise investment for Central Washington University. 4
5 Students often complain that there is insufficient parking at Central Washington University. This business report will analyze both the parking and the opinions of students to determine if there is indeed a need for additional parking. Problem Statement Students at Central Washington University complain that there is not enough parking. What would be the best way to improve parking? Purpose Statement The purpose of this report is to determine if a parking garage is a feasible solution for creating more parking at Central Washington University. Research Questions For this proposal, Group Nine has focused on researching five questions to determine the need for parking and the feasibility of building a parking garage. The first two questions seek to discover the need for parking at Central Washington University. The first question asks what the student opinion is on parking. The second question asks the specifics of the current parking situation on campus (e.g., how much a parking pass is, how many parking spots on campus, how many parking passes are sold each year). The third, fourth, and fifth questions have to do with the parking garage. The third question is: what should the parking garage look like, where should it be placed? The fourth and fifth question ask how much a parking garage would cost and how the university could fund it. Methodology For this report, Group Nine used a combination of primary and secondary sources to determine the feasibility of building a parking garage at Central Washington University. Central Washington University s website was used to determine the current parking situation on campus (e.g., how much is a parking pass, how much parking is available, where parking lots are located, how many parking passes are sold). Student opinion on parking was assessed through a survey (Appendix A). The purpose of this was to assess the need for parking on campus. Once it was clear that additional parking was necessary, costs were researched. The costs associated with building a parking garage was researched from companies that specialize in building them. This provided a detailed cost estimate to build a parking garage in this region. Websites of other universities were researched to find out how Central s competition provides parking for its students. Focus was placed on finding other universities that have implemented parking garages, and if it helped improve parking at their campus. This will provide evidence either for or against the use of parking garages as a remedy for the parking shortage. 5
6 Discussion of Findings The following pages will discuss the findings from the research questions of this report. The results of the student survey will be explained, as well as the information derived from an interview with parking services. This discussion will also explain the costs associated with building a parking garage, and how Central Washington University can fund it. Student Opinion Twenty students were surveyed regarding their attitude towards parking. They were asked questions on whether they live on campus, how often they park on campus, where they park, if they are satisfied with parking at Central Washington University, and if they would accept an increase in the price of a parking pass (Petersen, 2016). Questions regarding where they lived and how often they parked on campus were asked with the intention of drawing a correlation to the individual s level of satisfaction with parking. Satisfaction was rated on a scale of one to five (with one being dissatisfied and five being satisfied). No students reported being satisfied. Students who parked on campus over three times a week reported dissatisfaction with parking the most; although, even the students who never park on campus reported dissatisfaction (Figure 1). Although this could be attributed to public opinion, it is also possible that they do not park because they cannot find parking (and this is the reason for their dissatisfaction). Satisfaction with Parking Number of Votes Never 1-3 times a month 1-2 times a week 3+ times a week Rate of Satisfaction (1=lowest, 5=highest) Figure 1: Satisfaction with Parking Students who live on campus reported a slightly higher level of satisfaction than students who live off campus. Even so, all but one of these students stated that they would accept an increase in the price of a parking pass if it meant more available parking. Altogether, 15 students stated that they would accept an increasing in price; four said they would not, and one was unsure (Figure 2). 6
7 Student Willingness to Pay More for Parking yes no unsure 5% 20% 75% Figure 2: Student Willingness to Pay More for Parking This survey provides evidence that students feel there is a need for additional parking. It also suggests that the majority of students at Central Washington University would be willing to pay a higher cost for a parking pass. This is a significant finding for this business proposal, because it suggests a possible way to fund the building of a parking garage. With so many students disappointed, it is possible that the insufficient parking could keep Central from increasing its amount of applicants. In order to grow in size, increasing parking might be necessary. Central Washington University s Parking To determine the current parking on Central Washington University s campus, parking services was interviewed. The representative expressed a few numbers in regards to the current parking situation. There are currently 43 parking lots on CWU s campus. These lots add to a total of 2,423 parking spaces on campus. This number is made up of 356 staff parking spaces, 382 free parking spaces, and 1,685 permit parking spaces (Parking Services, 2016). A parking permit for the academic year (September to June), is $193 (Central Washington University, n.d). This interview also revealed that the university sold 5,150 parking permits in the previous year (Parking Services, 2016). This number includes both staff and student permits. Parking Garage Specifications A parking garage on campus would need to be built to accommodate the student body of CWU. Nearly 11,000 students are enrolled in CWU, and one-third of those students live on campus (U.S News, n.d). Students that live close to campus, such as two blocks or less, represent onethird of the student body. These students are not likely to use the parking garage. 7
8 The average level size of a parking garage is 48,000 square feet, which can hold up to 150 vehicles (McClain, 2009). By building 8 floors, we can get 1,200 spots. Having 1,200 spots can cover the parking shortage, because students have different class schedules during the daytime. In other words, when some students are leaving their spots, they are making room for other students. The best place to put a parking garage will be somewhere that connects the major campus gateways (Figure 3) (Central Washington University, n.d). An ideal place may be next to the Student Union and Recreation Center (SURC). Parking lot H-15 would be a logical location to build a parking garage because it is easily accessed and is near to many buildings. Placing the parking garage in a central location offers the best chance of servicing the greatest number of employees and students. Figure 3: Parking Garage Location The parking garage for this proposal is designed to correspond with the look of other buildings on campus. The garage will be brick-front and designed to be aesthetically pleasing (Figure 4) (Desman, n.d). Figure 4: Parking Garage Design 8
9 Parking Garage Cost In our findings it became obvious that there was a fairly standard cost per square foot for a parking garage in Washington. Standard costs for labor and construction combined were $59.00 per square foot (FIXr, n.d.). This price is made up of many areas of expertise. For example, the building of this parking garage will require a knowledgeable contractor, an engineer or architect, a team of subcontractors, a list of materials, and preparation time for the potential location. It is important to spend the proper amount of money now, rather than to be cheap. The parking garage must be stable and safe for a long period of time. The total cost of building this garage is $15 million. This number is made up of $11 million materials, $70/hour for masons and excavators, $39/hour for contractors, and $40/hour for architectural work (FIXr, n.d). Parking Garage Funding The idea of creating more space to park on Central s campus is great; however, it takes money to make this happen. In order to keep enrollment numbers up, it is necessary to keep the simple things, such as parking, convenient. Researching other colleges, it became obvious CWU is not the only school with this parking problem. Central Piedmont Community College (CPCC) decided to add a parking garage to their campus (Central Piedmont Community College. n.d.). This college thought through the process of deciding on an effective way of funding this new project. Adding a small, additional fee to campus parkers is an effective way of to collect necessary funds for a parking garage. Yes, while students are already paying for parking on campus, it could be much more convenient with a small additional fee. CPCC found this solution to be successful in acquiring funds. This community college incorporated a Campus Access, Parking, and Security (CAPS) fee. This fee helps distribute the rising cost of parking on campus. They chose to charge $73 for curriculum registered 8 semester hours or less, $97 for curriculum students registered in 9 hours or more, and $12 per class for students enrolled in corporate and continuing education courses. No student was charged more than $97 each semester with CPCC s fee (Central Piedmont Community College, n.d.). The reason team nine chose to use this system is due to the fact that it worked well in funding CPCC s new parking garage. On CWU s campus this fee could be added to the current $193 parking pass making it $203 for the general pass. This pass would allow for parking anywhere, except in the new parking garage. If Central sold 3000 of these general passes at $203/pass it would generate $30,000 a year. The second option offered is an All Access Pass, this pass will allow for parking anywhere on campus. The price of this pass would be $300, and if Central sells 3000 of these it will generate $900,000 a year. This is a modest projection of the increase in purchased parking passes; it is possible that revenues could increase beyond $930,000 a year. These two options together will bring in around $930,000/year. The expected return on investment (ROI) with these prices will be around 16.5 years (Figure 5). 9
10 Figure 5: Parking Garage Pro Forma Projected Revenues Year 1 Year 2 Year 3 General Parking Pass $30,000 $30,000 $30,000 All Access Parking Pass $900,000 $900,000 $900,000 TOTAL REVENUE $930,000 $930,000 $930,000 Projected Expenses Materials Raw Materials $11 million $11 million $11 million Labor Excavators $70/hour $70/hour $70/hour Engineer $40/hour $40/hour $40/hour Contractor $39/hour $39/hour $39/hour TOTAL EXPENSES $909,091 $909,091 $909,091 Revenue/Expenses $20,909 $20,909 $20,909 Figure 5: Parking Garage Pro Forma SWOT Analysis The current low cost of parking at CWU as compared to all competitors is a major strength to this project. The increase in student s time, due to convenient parking, is valuable. This business proposal faces a few weaknesses. The campus is surrounded by housing and businesses, which limited room for expansion in terms of parking. The current lack of parking is a weakness for Central. Funding a garage of this size is extremely difficult. The students could have a negative reaction to the increase in price of parking on campus. While this project faces some weaknesses, it also creates new opportunities. Central has many lots that have potential to expand up on, offering a major opportunity. With more parking spaces comes more room for increasing enrollment. The more enrollment and parking on campus, the more revenue produced for the college. The greatest threat to this project is the possibility that students may oppose this idea and the subsequent increase in parking prices. The parking lot that the new garage will be placed on will be unusable while the construction occurs, which is a pain for parkers. Conclusion In conclusion, there is a need for additional parking at Central Washington University. Students are dissatisfied with the current parking situation. This opinion is held even by students who 10
11 report that they do not park on campus. Building a parking garage that is eight levels in height would create an additional 1200 parking spots on campus. This parking garage would cost around $15 million to construct. With the creation of an additional permit, and a $10 increase on the already existing parking permit, the garage could be paid off within 16.5 years. Recommendation For CWU to grow as a university, it is very likely that additional parking will be required. There is currently a large difference between the amount of permit parking spots and the amount of permit passes sold; 5,150 passes are sold when there is an availability of 1,685 permit parking spots. This isn t adding value to the university for students. Many students are disgruntled and dissatisfied with the state of available parking. Building a parking garage on campus would be an excellent solution to this problem, because the school would nearly double the amount of parking on campus. With this extra space, the university could accommodate the increasing amount of applicants. Additional parking would also appeal to potential students from nearby cities who would commute to campus, as well as improve student opinion overall. The plan for this parking garage comes with a reasonable return on investment. Once the parking garage has been paid off in 16.5 years, the All Access Pass would become pure profit for the university. Central Washington University could, if the parking garage proves to be a good investment, use the profit from the All Access Pass to build more parking garages to suit the needs of the university. Group Nine would like to recommend that Central Washington University create a parking garage to solve the parking problem on campus. This investment would prove to be a feasible solution for the university. 11
12 References Central Piedmont Community College. (n.d). CAPS Fee. Retrieved from Central Washington University. (n.d). Permit prices. Retrieved from Central Washington University. (n.d). Campus map. Retrieved from Desman. (n.d). Penn Street Parking Garage. Retrieved from FIXr. (n.d). Build a Parking Garage. Retrieved from McClain, R. (2009, January 29). Task 5: Parking Structure Cost Estimate. Retrieved from Petersen, A., parking survey, May 17, 2016 Parking Services, Personal communication, May 18, 2016 U.S News. (n.d). Central Washington University. Retrieved from: 12
13 Appendix A Parking Survey Do you live on campus or off campus? Off campus: On campus (specify): I prefer not to say: How often do you park on campus? Never: One to three times a month: Once or twice a week: 3+ times a week: If you park on campus, where do you most often park? In a free lot that does not require a parking pass: In a parking lot that requires a parking pass (please name or describe): On a scale of one to five (with one being dissatisfied and five being satisfied) how satisfied are you with the amount of parking available at CWU? The price for a parking pass for the academic calendar (Sept.-June) costs $193. Would you be willing to pay $10 more for a parking pass if it meant that there was an increase in available parking? 13
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