19-0507_HOWELITE PARKING SOLUTIONS, LLC_F2a_Agenda ReportCity of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM : Jefenjamin Siegel , City Manager
SUBMITTED BY : Steve May, Public Works & Utilities Direc tor ,,LfU1___
PREPARED BY : Tom Toman , Assistant Public Works D ire ~
DATE : May 7 , 2019
SUBJECT: Summer 2019 Valet Parking Pilot Program
RECOMMENDATION :
5/7/2019
F2a
1. Authorize the City Manager to negotiate and execute a contract with HowElite Parking
Solutions to operate a downtown valet parking progra m during summer 2019 , from
June 7 , 2019 , through September 2 , 2019 ; and ,
2 . Dire ct the City Manager to report back to the City Council in fall 2019 with an analysis
of the summer 20 19 valet parking pilot program; and ,
3 . Provide feedback regarding options to improve parking management i n the
Fran ciscan Plaza parking structure.
EXECUTIVE SUMMARY:
Staff is recommending that the City Council approve a valet park ing program , on a trial
basis , to increase parking supply and enhance the parking experience for downtown
visitors during the busy summer season. The proposed program would involve a drop-off
and pick-up location at Verdugo Street and the Multi-modal parking lot. Staff is also
seeking Council direction regarding options to improve management of ex isting parki ng
spaces in the Franciscan Plaza structure , in an effo rt to address concerns expressed by
downtown business owners. A lo ca tion map of the proposed valet parking operation and
the Franciscan Plaza parking structure is inc luded as Attachment 1.
DISCUSSION /ANALYSIS :
Like many destination communities , the City's downtown expe riences periods of traffic
co ngestion and li mited parking ava il abi li ty, especially during summer weekends. To help
redu ce congestion associated with motorists circling th e downtown in sea rch of parking,
City Council Agenda Report
May 7, 2019
Page 2of4
staff is proposing a summer valet parking program with a drop-off and pick-up location at
the entrance to the Multi-modal parking lot off Verdugo Street. The proposed hours of
operation would be Fridays from 4:00 p.m. -10:00 p.m., Saturdays from 12:00 p.m. -
10:00 p.m., and Sundays from 11 :00 a.m. -6:00 p.m. The pilot program would begin on
Friday, June 7, and continue through Monday, September 2. Some valet-parked vehicles
would be stacked and queued in the northernmost portion of the Multi-modal parking lot
to allow for efficient and convenient valet parking operations, while the majority of valet-
parked vehicles would be stored at the City parcel located at the southwest corner of Del
Obispo Street and Ortega Highway, which was formerly the Jack in the Box property. This
remnant Caltrans parcel is currently being renovated and will accommodate 23 additional
parking spaces for the public on Mondays through Thursdays when not used for the
proposed summer valet parking operation. The valet is expected to be able to park
approximately 40 vehicles at this lot.
Additionally, the Los Rios Phase II 26-space gravel parking lot, located at the southeast
corner of Paseo Adelanto and Ramos Street, would serve as an overflow parking lot for
the valet operator should full capacity be reached at the above mentioned lots. Through
managed valet parking, approximately 80 new parking spaces would be created as part
of the proposed program. Additionally, engineering staff is currently developing a scope
of work and cost estimate to improve the Los Rios Phase II gravel parking lot to
accommodate approximately 100 parking spaces as a future capital improvement project.
The proposed Los Rios Phase II capital project -which staff expects to present to the
City Council for consideration in June 2019 -would also add security lighting and
decomposed granite walkways to Los Rios Park and the Los Rios Historic District area.
On March 26, 2019, staff solicited proposals from three professional parking firms to
operate the proposed valet parking service. The City received three proposals on April 3,
2019. A review committee consisting of staff from the Development Services Department
and the Public Works & Utilities Department evaluated and ranked the proposals based
on the following criteria: firm qualifications, experience, an understanding of the proposed
valet parking program, parking design approach, implementation schedule, and familiarity
with the proposed valet parking areas. The scope of work included days and hours of
operation, set-up and breakdown services, liability insurance requirements,
compensation structure, and valet parking implementation methodology. The review
committee selected HowElite Parking Solutions as the top ranked firm based on the
quality of their proposal, familiarity with the proposed valet parking sites, and experience
in San Juan Capistrano.
HowElite is a local parking management firm that was established in 2009. The company
currently provides valet parking services to The Villa in San Juan Capistrano, Hendrix
restaurant in Dana Point, and the Pacific Edge Hotel and The Deck restaurant in Laguna
Beach. Additionally, since 2015 HowElite has provided weekend valet parking services
for the City of Laguna Beach in coordination with the various seasonal art festivals.
HowElite's proposal includes a "turn-key" operation with no cost to the City, extensive
liability insurance coverage and indemnification, and a proposed valet parking fee of $7 -
$9 per vehicle. Staff anticipates that the proposed valet service will add capacity in the
downtown and offer convenience for visitors. For these reasons, staff is recommending
City Council Agenda Report
May 7, 2019
Page 3 of 4
that the Council authorize the City Manager to negotiate and execute a contract with
HowElite Parking Solutions to operate the downtown valet parking program. The program
is proposed to occur on a trial basis during the summer only, and staff would monitor
operations and feedback from residents, visitors and the business community. The staff
recommendation includes a report back to the City Council in September 2019.
Franciscan Plaza Parking Structure
The Franciscan Plaza parking structure is a privately-owned facility with 352 parking
spaces. There is an existing agreement between the City and property owner that
governs the structure's use and maintenance. The parking easement section of that
.agreement provides that the City "may promulgate and use their best efforts to enforce,
rules and regulations pertaining to parking."
Over the years, staff has met with the property owner and adjacent business owners to
discuss concerns regarding parking management in the structure, including, but not
limited to, the unintended consequences associated with free public parking and low cost
commuter parking. Currently, the majority of parking in the structure (spaces 109-352)
are designated as free, three-hour parking, with spaces 1-108 reserved for commuters at
a nominal fee ($2 -$6 per day). The property owner and downtown business owners have
expressed that the current rate structure has resulted in severely limited parking
availability for customers of adjacent restaurants and businesses. Instead, these highly
desirable parking spaces are regularly occupied by downtown employees and even
residents for storing their personal vehicles. Moreover, since parking enforcement
resources are limited and the hours of enforcement end at 6:00 p.m., it is not uncommon
for employees and other motorists to move their vehicles every few hours within the
structure, or simply to leave their vehicles in place for the evening after 3:00 p.m.
Based on our preliminary analysis and conversations with downtown property and
business owners, staff believes that modifications to the current rates and parking space
allocation in the structure could help address these issues and have the effect of
improving parking availability for patrons. With this in mind, pending City Council
direction, staff could develop a recommended rate structure that could be adopted at an
upcoming Council meeting and implemented in summer 2019 as part of a pilot program,
in conjunction with the proposed valet program. The staff presentation at this evening's
meeting will provide more information on options to address these issues, and seek
feedback from the City Council on whether to proceed with specific recommendations.
FISCAL IMPACT:
There is no cost to the City for the proposed valet parking operation. The valet operator
would charge $7 -$9 per vehicle, and would provide all required insurance and
indemnification. Any additional signage or marketing costs related to the pilot program
are expected to be minimal and would be absorbed in the Fiscal Year 2018-2019 Public
Works Operating Budget.
City Council Agenda Report
May 7, 2019
Page 4 of 4
ENVIRONMENTAL IMPACT:
In accordance with the California Environmental Quality Act (CEQA), the recommended
action is exempt from CEQA per Section 15061 (b )(3), which is the general rule that CEQA
applies only to projects that would have the potential for causing a significant effect on
the environment. Where it can be seen with certainty that there is no possibility that the
activity in question could have a significant effect on the environment, the activity is not
subject to CEQA. Operation of a valet service on a trial basis for a three month period
during the summer would not be an activity with potential to have a significant effect on
the environment, and therefore is exempt from CEQA.
PRIOR CITY COUNCIL REVIEW:
Not applicable.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
This action does not require commission, committee, or board review.
NOTIFICATIONS:
Carla Sedano, Sunrise Property Management
Alberto Mobrici, Alfa Plaza
Serena Benson, Southern California Real Estate Services
George ·Peppas, Chamber of Commerce
Ruby's
Antiques of Laguna
Monica Mukai
Paul Hennessey
Mission Grill
Trevor's At the Tracks
Bob Larsen, Provincial Building
Teri Chambers, Zia Jewelry
Dan Almquist, Frontier Investment
Tina Prater, Frontier Investment
3: 16 Bakery Shop
Conservatory & Curiosity
Guy Edwards, Capistrano Depot
Eric Altman, 26755 Verdugo LLC
. Mechelle Lawrence Adams, Mission SJC
Rancho Capistrano Winery
John Collins, Collins and Assoc.
ATTACHMENT:
Attachment 1 : Location Map
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