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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 0.. <t ~ z 0 5 0 -J ~ <t a: I.!) 0 a: 0.. I.!) z s;:: a: ~ 1- LU -J ;; b -J 0.. a: LU ~ ~ ::> V) O'l .-t 0 N c LU V) 0 0.. 0 a: 0..