The City Council will consider a proposal to allow a Waikiki nonprofit group to set parking fees, oversee freight and passenger deliveries, and make other transportation rules in the state’s No. 1 tourist destination.

Councilman Trevor Ozawa is slated to introduce two bills June 7 that would allow the city to create a nonprofit transportation management association. If approved, the measures are not likely to be advanced in time to prevent the city from increasing Waikiki parking rates under Bill 12, which goes to a final vote June 7.

However, if Bill 12 is passed, a “transportation management association would give us better ability to manage it and provide some relief from its impacts on residents,” said Rick Egged, president of the Waikiki Improvement Association, which supports the concept.

Egged said a transportation stakeholders group was created in 2015 to respond to a city-commissioned traffic and parking study that recommended making all 1,017 street parking spaces in Waikiki paid, as well as metering commercial loading zones. A Waikiki transportation management association could adjust parking prices to demand, he said. A paid permit system also could be created to give residents cost breaks and schedule loading and unloading for commercial users, Egged said.

“We could even consider offering lower rates during surfing hours,” he said.

Waikiki Neighborhood Board Chairman Bob Finley said Egged will provide a briefing about the proposed transportation district during the board’s June 13 meeting, which starts at 7 p.m. at the Waikiki Community Center. Finley, who is a member of the transportation stakeholders group, supports the measure.

“Hopefully, we’ll get something done and rapidly implemented. I think it will be a win-win for Waikiki and the city,” he said.

Waikiki Neighborhood Board Vice Chairman Lou Erteschik said he is undecided but that his initial reaction is skeptical.

“I’m not sure why you need this transportation management association. Doesn’t the city already have the authority to differentiate?”

Jon Nouchi, deputy director of the city Department of Transportation Services, said the city administration is evaluating the proposals.

Ozawa said the concept would “allow the epicenter of our state’s tourism industry to operate more efficiently and effectively in managing the various transportation-related issues that are present in Waikiki.”

If approved, it would take at least four to six months to become active, he said. Meanwhile, Ozawa said that he is open to continued dialogue on Bill 12, which has garnered mixed reviews from constituents.

“Bill 12 is a starting point, and like many bills it’s intended to encourage debate and highlight issues, concerns and ways to improve the current system,” he said.