Capitola City Council · Thursday, September 24, 2026, 6:00 PM · Item B · General Government / Public Hearings

MajorTransportation & traffic, Taxes, fees & budget

Parking meter rate increases proposed for City Hall lots, Village and Cliff Drive areas

In plain English

Capitola would raise its parking meter rates: from $2.00 to $2.50 per hour in Capitola Village and the Cliff Drive area, and from $1.00 to $1.25 per hour in the Upper and Lower City Hall Parking Lots at 426 Capitola Avenue. A yes vote would approve a Coastal Development Permit for the change and give first reading to an ordinance amending Municipal Code Section 10.38.010, with the new rates taking effect January 1, 2027. The three-hour Village limit and the 8:00 a.m. to 8:00 p.m. enforcement hours in the City lots would stay the same. The ordinance would also correct the name of the Zone B lots from 'Upper and Lower Pacific Cove Parking Lots' to 'Upper and Lower City Hall Parking Lots.'

Anyone who drives to Capitola Village, Cliff Drive, or the City Hall lots would pay more starting January 1, 2027 — a three-hour Village visit would cost $7.50 instead of $6.00 — and the City estimates about $270,000 more per year to spend on parking operations, maintenance, enforcement, equipment, capital improvements, and coastal access costs.

Key facts

  • Village and Cliff Drive meters: $2.00/hour now, $2.50/hour proposed (a $0.50 increase); Upper and Lower City Hall Lots: $1.00/hour now, $1.25/hour proposed (a $0.25 increase).
  • Current rates have been in effect since July 2023; staff recommends the new rates start January 1, 2027.
  • Estimated additional revenue: approximately $270,000 per year.
  • A three-hour Village stay would cost $7.50 instead of $6.00; three hours in the City lots would cost $3.75 instead of $3.00.
  • The Coastal Development Permit decision can be appealed to the California Coastal Commission after City appeals are exhausted; the rate change is treated as exempt from environmental review under CEQA Categorical Exemption 15301 (Existing Facilities).

Reasons to support

  • Costs to operate, maintain, enforce, and improve the parking system have risen since rates were last set in July 2023, and the increase would add roughly $270,000 a year toward those costs plus coastal facilities like restrooms, parks, lifeguards, Junior Guards, and the Wharf.
  • The proposed rates stay within the range charged nearby: Santa Cruz beach-area parking starts at $2.25 per hour and rises to $9.00 per hour for additional hours, and Monterey meters run $1.50 to $2.00 per hour.
  • The Capitola Village and Wharf Business Improvement Area executive board and the Finance Advisory Committee (which met September 1st) both concurred with the increase, and keeping the City lots at half the Village rate responds to Coastal Commission comments about lower-cost parking alternatives outside the Village.

Reasons to oppose or change it

  • Visitors and residents who drive to the coast would pay more for the same parking — up to $1.50 extra for a three-hour Village visit — with no added time allowed, since the three-hour Village limit stays in place.
  • Some nearby coastal cities reviewed by staff — Carmel, Pacific Grove, Marina, Seaside, and Half Moon Bay — do not charge for public parking at all, and unlike Santa Cruz and Monterey, Capitola's proposal includes no resident or local discount pass.
  • Raising the cost of the cheapest option (the City Hall lots, up 25 percent per hour) is the kind of change the Coastal Act findings must justify as keeping beach access low-cost, and the permit decision can be appealed to the California Coastal Commission.

Official wording

Parking Rates Increase and Coastal Development Permit Recommended Action:Approve a Coastal Development Permit for parking meter rate increases for the Upper and Lower City Hall Parking Lots, Village Area, and Cliff Drive Area and introduce, by title only, waiving further reading of the text, an ordinance of the City of Capitola amending Municipal Code Section 10.38.010.

Summary written by claude-opus-5 from the agenda and the Staff report (agenda packet, pages 94-105). It can contain mistakes. The official documents govern.