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HomeMy WebLinkAbout1997-07-07 City Council (35)City of Palo Alto C ty Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: POLICE AGENDA DATE: July 7, 1997 CMR:309:97 SUBJECT:EVALUATION OF ATI’ENDANT PARKING LOT AND REQUEST TO CONTINUE OPERATION; AND RESOLUTION APPROVING ASSIGNMENT OF THE CONTRACT FROM NATIONAL PARKING CORPORATION TO PACIFIC PARKING AND VALET In March 1997, Council approved the continued operation of the attendant lot through the end of the current fiscal year. At that time, staff agreed to provide Council with an updated evaluation of the lot and return with a recommendation. Staff requests Council approval to continue the operation of the lot. ’Additionally, Council approved a three-year agreement with National Parking Corporation for the operation of the attendant lot. National Parking Corporation has sold its contract interest to Pacific Parking and Valet, and under the City’s contract, the City must consent to such a change. Staff is, therefore, requesting Council approval of the resolution indicating this approval. Staff recommends that Council approve the continued operation of the attendant lot and the attached resolution approving the assignment of the contract l$om National Parking Corporation to Pacific Parking and Valet. There are no policy implications associated with the continued operation of the lot. In December 1995, operation of the attendant parking lot at Lot S was initiated. The attendant parking lot was one of many recommendations by the Chamber of Commerce’s Parking Committee to improve parking in the downtown area. CMR:309:97 Page 1 of 3 During the first year of operation, the lot was under-utilized, and staff expressed concerns about the lack of cost-effectiveness. Since then, additional outreach to downtown merchants has been conducted by members of the Parking Committee. Marketing efforts included advertisements in local newspapers, the distribution of informational flyers and a newly revised downtown parking brochure. As a result, use of the lot, especially by longer term parkers, continues to increase. Attachment One provides detailed information on the number of users. On an average, there are now 20 cars parked for the maximum allowable time on a daily basis. There has also been a significant increase (an average of 5 per month for the first year of operation " compared to 14 a month during the second year) in the number of prepaid all-day tickets that have been purchased. Due to the increased use and the improvement in the expenditure/revenue ratio, staff believes that the lot should continue to operate. In September 1995, Council approved a one year agreement with National Parking Corporation for the operation of the attendant lot with a provision for successive operation in one year increments, not to exceed two additional terms. Section 14 of the agreement requires the City’ s written consent to any change in ownership. In May, staff was notified that Pacific Parking and Valet had purchased National Parking Corporation, effective June 1, 1997. Pacific Parking and Valet is a new company with limited experience. In discussions with representatives from Pacific Parking and Valet, staff has learned that Pacific Parking and Valet will maintain the same on-site management personnel and other employees from National Parking Corporation, will provide the same level of services, and will charge the same fees. Staff will closely monitor their services. While for the six months since December 1996, expenditures exceeded revenue by $2,409 for the months of April and May, revenues exceeded expenditures for the first time since the lot was opened. Attachment Two details the revenue/expenditure information for the last six months. ENVIRONMENTAL ASSESSMENT This project is categorically exempt from environmental review as it involves the use of existing facilities. CM1~:309:97 Page 2 of 3 Attachment A - User information Attachment B - Expenditure/Revenue Information Resolution PREPARED BY:Lynne Johnson, Assistant Police Chief Dave Dudley, Parking DEPARTMENT HEAD REVIEW: CHRIS DURKIN, Police Chief CITY MANAGER APPROVAL: EMILY Assistant City Manager CC:Susan Frank, Palo Alto Chamber of Commerce Kathleen Haney, Downtown Palo Alto Marketing Committee CMR:309:97 Page 3 of 3 ATTACH1V~NT TWO REVENUE / EXPENDITURES ATTENDANT PARKING LOT DECEMBER 1996 JANUARY 1997 FEBRUARY 1997 MARCH 1997 APRIL 1997 MAY 1997 TOTAL TOTAL DEPOSIT $4,740 $3,868 $4,216 $5,042 $5,688 $5,768 $29,322 VENDOR INVOICE $5,160 $5,160 $5,160 $5,417 $5,417 $5,417 $31,730 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF ~ CITY OF PALO ALTO APPROVING ASSIGNMENT TO PACIFIC PARKING & VALET OF THE RIGHTS AND OBLIGATIONS OF NATIONAL PARKING CORPORATION IN THAT CONTRACT WITH THE CITY OF PALO ALTO FOR PARKING LOT MANAGEMENT SERVICES WHEREAS, the City of Palo Alto entered into Contract No. C6078086 with National Parking Corporation on September Ii, 1996, effective on December 7, 1995, for the provision by National Parkin~ Corporation of parking lot management services in City’s Bryant/Florence off-street parking lot facility (Lot "S"); .and, WHEREAS, on March 3, 1997, said contract was amended (Amendment No. One) to revise the terms of compensation throughoutthe duration of the agreement and to revzse certain other provisions; and, WHEREAS, National Parking Corporation has assigned its rights and obligations in said contract, as amended, to Pacific Parking & Valet, a California LLC; and, W~EREAS, the Council desires to approve this assignment as required and provided for under the terms of the contract; NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: Section I~ The City of Palo Alto hereby approve~ the assignment by. Nat~gnal Parking Corporation to Pacific Parklng &Valet, a Cal~forn~a LLC, of the entirety of its rights and obligations under Contract No. C6078086, as heretofore and hereafter amended. ~..ection 2.. The Council of the City of Palo Alto finds and ~determines that this approval invglves ~ project categor~cally ex..e~.t from environmental review as it conslsts of the operation of publ~c facilities involving negligible or no expansion of use beyond that previously existing. INTRODUCED AND PASSED: AYES: NOES: ABSENT ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Police Chief Acting Director o~ Administrative Services 970625 ~,n 0043066