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HomeMy WebLinkAbout1999-09-14 City Council (4)City of Palo Alto City Manager’s Report 6 TO: ATTN: HONORABLE CITY COUNCIL POLICY AND SERVICES COMMITTEE FROM:CITY MANAGER DEPARTMENT: PLANNING DATE:SEPTEMBER 14, 1999 CMR:353:99 SUBJECT:RECOMMENDATION TO ADD CHAPTER 10.45 TO THE PALO ALTO MUNICIPAL CODE REGULATING VALET PARKING REPORT IN BRIEF Valet parking has been provided for several years by some downtown businesses. However, the service was being conducted so that the vehicle drop-off/pick-up and storage areas were on private property. With the opening of Stars Palo Alto (now Spago) on Lytton Avenue, the owners instituted valet parking with the vehicle drop-off/pick-up area on a the public street and used public parking facilities for vehicle storage. At that time, staff used an existing mechanism (the encroachment permit) to address the issue of valet parking on an interim basis, and anticipated developing an ordinance if interest in valet parking continued. Since then, four other restaurants have started to provide valet parking under City-issued encroachment permits. Based on experience, staff has drafted an ordinance to regulate valet parking. The ordinance was developed in cooperation with the Chamber of Commerce Parking Committee, which includes downtown businesses and residents in the areas north and south of downtown. The current procedures have been incorporated into the ordinance so that, with few exceptions, there are minimum changes made to the existing requirements. The purposed ordinance includes requirements regarding a permit and its terms and conditions, valet driver screening, insurance and revocation process. The purpose of this staff report is to recommend that the policy and Services Committee recommend City Council approval of the attached ordinance (Attachment A) adding Chapter 10.45 to the Palo Alto Municipal Code regulating valet parking, and direct staff to include the fees and penalties associated with valet parking in the Municipal Fee Schedule which was adopted by Council on June 28, 1999. CMR:353:99 Page l of 7 RECOMMENDATION Staff recommends that the Policy and Services Committee recommend that the City Council: Approve the attached ordinance adding Chapter 10.45 to the Palo Alto Municipal Code to regulate valet parking o Direct staff to include the following fees and penalties in the Municipal Fee Schedule that was adopted by the Council on June 28, 1999: (a) $450 permit application, (b) $75 annual permit renewal, (c) $220 short-term permit, (d) $35.00 per space per week for on-street parking spaces, (e) $150 per valet parking sign fee, and (f) $30 penalty for unauthorized parking in on-street valet parking spaces. BACKGROUND The issue of valet parking surfaced about four years-ago with the opening of Stars Palo Alto (now Spago) on Lytton Avenue. While valet parking had already been provided for several years by some downtown businesses (e.g. MacArthur Park Restaurant and Garden Court Hotel), it generally was being done when the vehicle drop-off/pick-up area and the vehicle storage area were on private property. In conjunction with the opening of Stars, the owners instituted valet parking with the vehicle drop-off/pick-up area on a public street, and the use of some public parking facilities for the vehicle storage area. In addition to the issue of private exclusive use of the public street and parking facilities, concerns arose about safety, fairness and legality. At that time, staff used an existing mechanism (encroachment permit) to address the issue of valet parking on an interim basis. It was expected that an ordinance would be developed if interest in valet parking continued and once staff gained additional experience with valet parking. Presently, there are five valet operations functioning under City-issued encroachment permits. Stars was the first such operation in Summer 1995, followed by Maddalena’s in June 1996, Chantilly II in September 1996, Evvia in August 1997, and Zibibbo in September 1997. Each permittee has exclusive use of a designated number of on-street parking spaces for passenger drop-off and pick-up between specified hours. Permittees pay $30 per week (Construction and Maintenance parking permit fee) for each designated on-street parking space, the cost for installing two signs ($300), and an encroachment permit application fee ($450). No fee is charged for City-authorized use of underutilized parking lots and garages in the evenings. The permittees are not allowed to park vehicles in any public off-street parking facilities or on-street during the daytime. They are permitted to use only designated public parking facilities in the evening. CMR:353:99 Page 2 of 7 DISCUSSION Ordinance Valet parking in downtown Palo Alto is likely to continue and possibly expand. Based on nearly four years of experience, staff has drafted an ordinance to regulate valet parking. The ordinance was developed in cooperation with the Chamber of Commerce Parking Committee, which includes downtown businesses and residents living in the areas north and south of Downtown. Additionally, the current procedures have been incorporated into the ordinance so that, with few exceptions, there will be minimal change made to existing requirements. The proposed ordinance includes the following provisions: A revocable permit to conduct valet parking, with application review and approval procedures. The permit is generally operative for one year from the date of issuance and is renewable annually upon submission of the required application and fees unless suspended or revoked. The terms and conditions of the permit would include the following: a.The permit may be revoked at any time, with or without cause, by giving the permittee ten (10) days prior written notice. b.The permittee is required to use a specified route of travel between the vehicle drop-off and pick-up area and the parking location. Co Patron vehicles are not to be left parked or standing in loading/unloading zones more than the minimal time necessary to accomplish passenger loading/unloading. d.The permittee and its employees shall at all times obey all traffic rules and regulations. e.The permittee is required to provide adequate staffing to avoid the queuing of cars in travel lanes. No double parking or blockage of travel lanes is allowed. f.The permittee is required to keep a minimum of six feet of sidewalk clearance at all times, and may not interfere with pedestrian traffic. g.The number and location of on-street parking spaces for passenger pick-up and drop-off are specified. h.The days of the week and hours of the day when the valet parking services are permitted are specified. CMR:353:99 Page 3 of 7 The permittee may not park vehicles on any public street or alley at any time during the day or evening (except for the approved spaces for drop-off and pick-up), within the surrounding commercial or residential areas. The permittee is required to park vehicles in a private parking facility during the daytime and evening hours. Evidence of an agreement, assuring that parking on private property is, and will remain, available for valet parking, will be provided to the City. Valet driver screening. The permittee is required to submit a monthly list of drivers to the City certifying that its drivers are at least eighteen years of age and possess a valid California drivers license. 3.Indemnification, Insurance and Workers Compensation. No valet parking permit shall be issued or remain in effect unless there is in full force and effect a policy of comprehensive general liability insurance containing coverage provisions and limits prescribed by the City’s Risk Manager. In addition, the permittee shall indemnify, defend, and hold the City harmless from any claims arising from the willful or negligent acts of the permittee. The permittee shall maintain Workers’ Compensation insurance for each person engaged by the valet parking service to either drive a vehicle of a customer or handle keys of a vehicles of a customer. Revocation process. A permit may be suspended for a period of up to one year or revoked if: a. The permit conditions are violated, b.The permittee willfully makes a materially false or misleading statement, or omission of fact on any application, or c.The permittee is operating the valet parking service in a manner that poses a danger to the health and safety of employees, customers, and/or the public. Whenever the City has reasonable cause to suspend or revoke a permit, written notice shall be given to the permittee with information on the appeal process. After a permittee submits a request for an appeal hearing, staff will notify the permittee in writing of the date, time, and place of the hearing with the City Manager, or his/her designee. Staff proposes that the City’s Hearing Officer (formerly the Parking Adjudicator) handle these hearings. At the hearing, the permittee has the right to appear and be represented by counsel and to present evidence and arguments that are relevant to the grounds for the CMR:353:99 Page 4 of 7 appeal. Within ten business days after the hearing, the Hearing Officer will issue a written decision which states whether the permit shall be suspended or revoked, the length of any suspension and the effective date of the suspension or revocation. The decision is final and not subject to appeal. o Short-Term Valet Parking Permit. The ordinance includes a provision for issuance of valet parking permits for special events such as open houses, holiday parties, and receptions. Typically, such events require valet parking for only one day. Therefore, short-term permits may be issued for up to seven days with the same terms and conditions as long-term valet parking operations. Monitoring and Enforcement Staff will continue to monitor the valet parking operations, as outlined in the Interim Monitoring Program (CMR:404:97, included as Attachment B). Staff will hire a half time, temporary Community Service Officer (CSO), with funding approved in the 1999- 01 Adopted Budget, to monitor and document the compliance of valet company operations. The CSO will monitor valet service activities an average of twenty hours per week while working a flexible schedule. The majority of the monitoring will occur during evening hours, primarily between 6:00 p.m. and 10:00 p.m. Monitoring will occasionally occur during the lunchtime hours for those restaurants that provide valet service for lunch customers. The CSO will observe operations at the valet site, nearby streets and alleys, and the routes of travel used by the valets, and will document all violations. If a violation is observed, a warning letter, including a list of the violations, will be sent to the valet parking operator and management of the restaurant. The valet parking operator and the restaurant(s) involved will be given a two-week period to respond in writing to any alleged deficiencies and violations and to convey the steps they intend to take to correct them. Two or more violations may result in a permit suspension or revocation. Fees The proposed ordinance includes an amendment to the Municipal Fee Schedule to reflect various fees (shown in Exhibit A of the ordinance), which include use of on-street parking spaces, staff time to review permit applications, installation of valet parking signs, and penalty for parking in on-street valet parking spaces. The proposed fees are as follows: Application fee--S450. This fee is the same amount as the City currently charges for an encroachment permit. 2.Annual permit renewal fee--S75. CMR.a5a:99 Page 5 of 7 Designated on-street parking space fee--S35 per space per week. Currently, this fee is $30 per space, per week (Construction/Maintenance parking permit). The proposed fee is $5.00 more to make the program cover 100 percent of its cost. 5.Installation of valet parking signs--$150 each sign. 6.Penalty for parking in the on-street valet parking space(s)--S30. ALTERNATIVES TO STAFF RECOMMENDATION As an alternative to @proving the ordinance to regulate valet parking, Council could consider the following: Continue the existing encroachment permit procedures for the five existing operations and potential future applicants. The encroachment permit process has provided a reasonable mechanism in the absence of more formal procedures. However, staff believes an ordinance is appropriate to formalize the City’s process and regulate valet parking in a safe and orderly manner. Continue the five existing valet parking operations under the existing encroachment permit procedures, but do not allow any additional operations. Staff does not recommend this option because other businesses potentially interested in providing valet parking services may view this as a disadvantage to their operation and an unfair practice. Terminate existing valet parking operations and do not approve any new valet parking operations that use public facilities. Staff does not recommend this option because businesses (particularly restaurants) and their patrons have demonstrated a growing need for valet parking. In addition, valet parking provides a substantial public benefit in removing a significant volume of vehicles from public parking spaces and redirecting them to private and, secondarily, underutilized public parking facilities. RESOURCE IMPACT The City currently receives $19,000 per year from the five current valet parking operations. The cost of monitoring and enforcement for the program is estimated to be $21,570. The intent is for the program to cover 100 percent of its costs, which will be achieved with the increase in the parking space rental fee. Funding for the temporary CSO was approved in the 1999-01 Adopted Budget. POLICY IMPLICATIONS Valet parking raises a policy issue concerning the use of on-street public parking spaces and off-street public parking facilities by private businesses. Staff believes that removing a substantial number of vehicles that would otherwise be competing for heavily used CMR:353:99 Page 6 of 7 public spaces is a significant benefit to all merchants, employers, and customers in the Downtown area. Therefore, staff believes it is worthwhile to allow the exclusive use of a limited number of on-street spaces, as well as possible use of currently under-utilized public parking facilities. For the five restaurants with valet operations authorized by the City, there are a total of 12 on-street parking spaces that have been designated for their exclusive use. In return, in the evenings when the availability of public parking is problematic, 100 to 120 cars are being removed from competition for the most highly utilized parking spaces, and are instead parked in spaces that are regularly under-utilized. ENVIRONMENTAL REVIEW This project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to sections 15301 (Existing Facilities) and 15321 (Enforcement Actions) of the CEQA guidelines. ATTACHMENTS A. Ordinance Adding Chapter 10.45 to the Palo Alto Municipal Code to Regulate Valet Parking B. CMR:404:97, Approval of Valet Parking Interim Monitoring Program C. CMR:315:97, Valet Parking in Downtown Palo Alto PREPARED BY:Ashok Aggarwal, City Traffic Engineer Lynne Johnson, Assistant Police Chief DEPARTMENT HEAD: Director of Planning and Community Environment DEPARTMENT HEAD: PATRICK DWYER Chief of Police CITY MANAGER APPROVAL: EMIl HARRISON Assistant City Manager Chamber of Commerce Patrick Burt, University South Group Dan Lorimer, Downtown North Neigh Assn. Mark Nanevicz, Downtown North Neigh Assn. Maddalena’s Chantilly I! European Restaurant Spago Zibibbo Evvia Estiatorio Lucas Parking Service Valet by the Bay Garden Court Hotel MacArthur Park I1 Fornaio CMR:353:99 Page 7 of 7 ATTACHMENT A ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADDING CHAPTER 10.45 TO THE PALO ALTO MUNICIPAL CODE TO REGULATE VALET PARKING AND AMENDING THE 1999-00 MUNICIPAL FEE SCHEDULE TO INCLUDE FEES FOR VALET PARKING The Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The Council hereby finds as follows: I. A compelling and growing need for valet parking has been demonstrated by businesses (particularly restaurants) and their patrons. Special events also may concentrate crowds in congested locations, requiring valet parking services. These short term parking needs tend to coincide with lunch and dinner hours when the overall demand for parking space is intense. 2. Valet parking can provide substantial public benefits in removing a significant volume of vehicles from public parking spaces and redirecting them to private parking facilities and secondarily to currently underutilized public parking facilities. Regulated valet parking can also minimize parking congestion around restaurants and special events and can deter parking in residential neighborhoods. 3. If allowed to grow unregulated, valet parking can adversely dominate parking in the immediate vicinity of restaurants and special events, unnecessarily using public on-street parking spaces and public parking lot spaces as well as intruding into adjacent residential neighborhoods. Increased traffic congestion and conflicts will occur if passenger loading and unloading in vehicle travel lanes are allowed with inadequately staffed valet parking. Traffic safety can be compromised by unsupervised valet parking staff violating traffic laws. Patrons and the general public can be jeopardized in their safety and seourity if valet parking staff are not routinely scrutinized for traffic safety and criminal violations inconsistent with entrustment of patron vehicles. These concerns demand that valet parking be closely regulated in the public interest. S~..~TION 2. Chapter 10.45 is hereby added to Title i0 (Vehicles and Traffic) of the Palo Alto Municipal Code to read as follows: CHAPTER 10.45 VALET PARKING 10.45.010 Valet parking defined. "Valet parking" means providing the service of parking vehicles for persons attending any business, activity, or 990804 syn 0043618 event where that service uses any city street or alley or city parking facility. 10.45.020 Valet parking permit required~ (a) No person (including any natural person, partnership, firm, association or corporation) shall engage in, conduct, or carry on the activity of valet parking without having obtained a valet parking permit. A valet parking permit shall be required for providing the service of parking vehicles for persons attending any business, activity, or event (whether located within or without the city) if that service uses any city street or alley or city parking facility as the location for either (i) transferring operation of the vehicle from its driver to the provider of the valet parking service,. (ii) parking the vehicle, or (iii) transferring the vehicle to or from the parking location. For purposes of this chapter, a city street is considered to be used for valet parking if any portion of the traffic lanes, curbside parking, or driveways within a city sidewalk is the location where the vehicle is parked or where operation of the vehicle is transferred from its driver to the valet parking service provider. (b) The city manager or designee of the city manager may grant a revocable permit for valet parking upon written application therefor, and upon certain findings, as set forth in Section 10.45.050. 10.45.030 Permit Application. (a) Application for a valet parking permit shall be made by an authorized representative of the valet parking service for which the application is made. (b) Application shall be made on a form or forms supplied by the city and shall, at a minimum, include: (i) The name and location of the business, activity or event proposed to be served, along with a statement signed by an authorized representative for that business, activity or event confirming that there is a need for the proposed parking service and consenting to the service. A separate application shall be made for each location where the valet parking service provider will provide valet parking services to a business, activity or event. (2) Information as to the amount of seating or other measure of the capacity of the business, activity or event to be served. (3) The duration of operation, the hours of operation and the number of employees of the applicant who will be assigned to provide the parking services for which the application is being sought. 990804 syn 0043618 2 (4) The name, location and telephone number where an authorized representative of the applicant will be available at all times during the hours of proposed operation under the permit. (5) The location or locations where vehicles are proposed to be parked or stored during parking operations, and the number of parking spaces in each location that the applicant has the right to use for parking or storing vehicles. (6) The location of any proposed signs and any proposed attendant stands, and the routes proposed to be used between any proposed passenger loading location and the proposed parking or storage location. (7) A signed statement from the owner or person in control of any parking facility designated in the application as a location where vehicles are proposed to be parked or stored, stating the parking facility’s availability to accommodate the vehicles proposed by applicant to be parked or stored; the number of spaces in such parking facility; and an estimate of the amount (percentage) of use of the parking facility with and without the applicant’s proposed use. Where the parking facility is part of a building or premises devoted to other uses that require off-street parking, the statement shall also include information as to the number of parking spaces that are required by law to be provided in the parking facility to serve such other uses. (8) A copy of a written contract or covenant giving the applicant the right to use each facility for parking or storage proposed by the application, which contains a provision precluding cancellation of the applicant’s right except by giving at least ten (i0) days prior written notice of such cancellation to the applicant and the city. 10.45.040 Application Fee. The application shall be accompanied by a nonrefundable application fee, as set forth in the municipal fee schedule. 10.45.050 Approval of Permit; Findings. The city manager or designee may approve the issuance of a revocable permit to an applicant upon the determination that the proposed valet parking service activity would not unduly restrict the reasonable flow of traffic; would not unduly restrict public parking activities; would not create a hazard to public safety; and would not otherwise be detrimental to the public interest. Such determinations shall include a specific finding that the applicant has presented satisfactory proof that it has the right to use a sufficient number of private off-street parking spaces to provide 990804 syn 0043618 for the reasonably expected number of vehicles that it will be parking or storing pursuant to the permit. For any business or activity which is proposed to provide valet parking service in excess of one year, the permit shall be operative for one year from its issuance and shall be renewable annually upon submission of the required application and fees unless sooner suspended or revoked. For any business, activity or event which is proposed to provide valet parking service for a duration less than one year, the permit shall be operative for the duration provided in the permit unless sooner suspended or revoked and the permit shall be non-renewable. 10.45.060 Liability Insurance; Indemnity. (a) No valet parking permit shall be issued or remain in effect unless there is in full force and effect a policy of comprehensive general liability insurance containing coverage provisions and limits prescribed by the risk manager, executed by an insurance company approved by the risk manager, whereby all persons who carry out the activities described in the permit are insured against claims, loss, or liability for damage to property and for injury to or death of any person as a result of the permittee’s operations in the City of Palo Alto. (b) Such policy of insurance shall contain an endorsement providing that the policy will not be canceled until notice in writing has been given to the city, addressed in care of the City Clerk, at least thirty days immediately prior to the time such cancellation becomes effective. (c) Such policy of insurance shall name the city, its officers, agents and employees as additiona! insureds. (d) The permittee, its officers, agents and employees shall indemnify, defend and hold harmless the city, its officers, agents and employees from any loss, liability, claim, injury or damage arising or alleged to arise from the willful or negligent acts or omissions of permittee, its officers, agents or employees in connection with the activities described in the permit. (e) The permittee shall maintain workers’ compensation insurance for each person engaged in the valet parking service to either drive a vehicle of a customer or handle keys of a vehicle of a customer. 10.45.070 Permit Provisions and Restrictions. (a) Any permit issued pursuant to this chapter may be revoked at any time with or without cause, by giving the permittee ten(10)days prior written notice. (b) The permit shall require that the permittee use a specified route of travel between the vehicle drop-off and pick-up area and the parking location. The permit shall also require that 990804 syn 0043618 4 patron vehicles are not left parked or standing in loading/unloading zones more than the minimal time necessary to accomplish passenger loading/unloading. The permit shall prohibit the parking of patron’s vehicles in public on-street parking spaces. If the permit allows overflow valet parking in designated public parking facilities, such overflow parking shall be permitted only after five p.m. on normal business workdays (Monday through Friday, excepting holidays), but such overflow parking shall be permitted on weekends (Saturday/Sunday) and holidays without restriction as to time of day. Overflow parking shal! not be permitted in public parking facilities on any occasion when the private parking spaces required by permit are not fully utilized. Overflow parking shall be authorized only for designated public parking facilities which are underutilized by the general public. (c) The permit may allow the permittee to use a specified number of on-street parking spaces for pick-up and drop- off of vehicles. The permittee shall be required to pay to the city a fee as set forth in the municipal fee schedule for the use of such parking spaces. (d) The permit shall specify the location, size and content of any signage or attendant stands permitted at the vehicle pick-up and drop-off location. (e) The permit shall specify the days of the week and hours of the day when the parking services are permitted. The permit shall provide for temporary suspension of the right to conduct valet parking activities using any street or alley or city parking facility which is temporarily closed or restricted for vehicular traffic because of construction or because of special events. (f) The permit may permit the use of designated public parking facilities for overflow valet parking when private parking facility spaces are fully utilized and certain public parking facilities are underutilized, and’no fee shall be charged for the use of those public parking facilities. (g) Any permit issued pursuant to this section may be subject to such additional terms and conditions as the city manager or designee considers reasonably necessary to protect the public health, safety and welfare. 10.45.080 General Provisions for Permittees. (a) The permittee and its employees shall at all times obey all traffic rules and regulations. (b) The permittee shall provide adequate staffing to avoid the queuing of cars in travel lanes.No double parking or blockage of travel lanes shall be allowed. 990804 syn 0043618 5 (c) The permittee shall keep a minimum of six (6) feet of sidewalk clearance at all times, and shall not interfere with pedestrian traffic. (d) The permittee shall maintain the valet parking permit at the site of its operations, or at such other site as may be specified in the permit, and shall produce it for inspection by any public officer or member of the public upon request. (e) The permittee shall not park any patron’s vehicle in public on-street parking spaces. The permittee shall not park any patron’s vehicle in public parking facilities unless al! private parking spaces required to be utilized by its permit are fully utilized. The permittee shall not park any patron’s vehicle in public parking facilities other than those designated for overflow parking in its permit or at times other than those in which overflow parking is authorized by the permit. (f) The permittee shall not allow any person engaged in the valet parking service to either drive a vehicle of a customer or handle keys of a vehicle of a customer unless the permittee has certified that the person has a valid California driver’s license and has not been convicted of reckless driving or driving while under the influence of alcohol or narcotics within seven years preceding that date of certification. The permittee shall submit to the City a monthly list of such employees, certifying by name of employee and dates of employment that these conditions have been met. Each employee while engaged in the valet parking service to either drive a vehicle of a customer or handle keys of a vehicle of a customer shall display on that employee’s person plainly visible identification provided by the valet parking service permittee. 10.45.090 Suspension and revocation of permits. The city manager or designee may suspend for a period of up to one year, or may revoke, a valet parking permit if there is reasonable cause to believe that: (a) The permittee has operated or managed the valet parking service in a manner which violates any provision of this chapter or any restriction or prohibition imposed in the permit; (b) Any employees of the permittee engaged in providing valet parking services under the permit have violated any provision of this chapter or any restriction or prohibition imposed in the permit and the permittee has permitted them to do so, or failed to prevent them from doing so. The employer shall be responsible for those acts of its employees which are done in the course and scope of their employment; (c) The permittee willfully made a materially false or misleading statement, or omission of fact on any application, or in any supplementary materials submitted or in any interview conducted in the processing of the application for the permit; 990804 syn 0043618 6 (d) The permittee is operating or managing the valet parking service in a manner which poses a danger to the health and safety of employees, customers, and/or the public. Whenever the city manager has reasonable cause to believe that grounds for the suspension or revocation of a permit exists, the city manager or designee shall give the permittee written notice stating the alleged grounds for the suspension or revocation and the effective date of the suspension or revocation. This notice will be by certified mail or personal delivery to the permittee, and shall provide the permittee with information on the appeal process. Upon receipt of a request for an appeal hearing, the city manager or designee shall notify the permit holder in writing by personal delivery or certified mail of the date, time, and place of the hearing, which shall not be less than ten business days after the service of the notice. At the hearing, the permittee shall have the right to appear and be represented by counsel and to present evidence and arguments which are relevant to the grounds for the appeal, as stated in the written request for an appeal hearing. If the permittee requires the services of an interpreter for the hearing, the applicant shall arrange for the services of a court-certified interpreter at the permittee’s expense. Within ten business days after the hearing, the city manager or designee shall issue a written decision which states whether the permit shall be suspended or revoked, the length of any suspension and the effective date of the suspension or revocation. The decision of the city manager or designee shall be served on the permittee by personal service or by certified mail. The decision of the city manager or designee shal! be final and not subject to appeal. Upon a written decision of the city manager or designee which suspends or revokes a permit, the permittee shall surrender the permit to the city manager immediately after service of the notice of the written decision. No application for any valet parking permit issued under this chapter shall be accepted by the city manager from the same applicant within one year following revocation of a permit issued under this chapter or while the applicant has a suspended permit. 10.45.100 Violations. Any person who violates any provision of this chapter or of any permit restriction issued pursuant to this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punishable as provided in chapter 1.08 of this code. The permittee(s) named in any permit issued pursuant to this chapter shall be also be punishable as a misdemeanant for the conduct of any person employed in the provision of the valet parking service which violates any restriction of the permit if the permittee(s) aid or abet or conspire for the commission of those permit violations. 990804 syn 0043618 7 10.45.110 Citation and removal of unauthorized vehicles. When signs are posted restricting the parking or standing of vehicles in designated on-street parking spaces for valet parking only during designated time periods, no person shall stop, stand or park any vehicle in violation of those restrictions except for the purposes of immediate loading or unloading of passengers either for valet parking or for patronizing the business, activity or event for which valet parking is provided. Violation of this section shall be citable as a parking violation punishable by a parking penalty as provided in Chapter 10.60. Any vehicle stopped, standing, or parked in violation of this section shal! be subject to removal under the authority of California Vehicle Code section 22651 subdivision (m). SECTION 3. The Municipal Fee Schedule is hereby amended to reflect the additional fees indicated on Exhibit A, which is attached hereto and incorporated herein by reference. SECTION 4. This ordinance does not constitute a project having potential effects upon the environment and therefore does not require environmental review under the California Environmental Quality Act. SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Police Chief Director of Planning and Community Environment 990804 syn 0043618 EXHIBIT A oo TO: ATTACHMENT B City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL i 6 FROM:CITY MANAGER DEPARTMENT: POLICE AGENDA DATE: October 6, 1997 CMR:404:97 SUBJECT:APPROVAL OF VALET PARKING INTERIM MONITORING PROGRAM RECOMMENDATION Staff recommends that the Council approve the Valet Parking Interim Monitoring Program. BACKGROUND On July 7, 19~7, Council approved three recommendations concerning valet parking in downtown Palo Alto (CMR:315:97). One of the recommendations was for staffto develop an effective monitoring enforcement and revocation process which would be added to the existing encroachment permit process to use until a formal program and ordinance is adopted. This report provides the proposed program details and costs. DISCUSSION The proposed interim monitoring and enforcement program entails three components: observation/documentation; enforcement; and revocation. For the first component, staff proposes to use current Parldng Enforcement Officers (PEOs) and Community Service Officers (CSOs) on an overtime basis to monitor and document the compli .ante of valet company operations at the five restaurant sites that are currently in operation and any other restaurants that may apply and receive encroachment permits during the next six months. Consideration Was given to hiring temporary employees during the interim time, but staff b~li eves that the use of existing personnel will reduce the amount of time needed for recruitment, hiring and training and thus allow for implementation immediately after Council approval is received. Current personnel are already authorized to use City radios and unmarked vehicles, and as a result, the time and funds required for training and background investigations would not be needed. Police Department valet monitors would also be available as time permitted to conduct some nighttime parking enforcement in the downtown area for such violations as illegal use of disabled parking spaces, red zone and alley parking. CMR:404:97 Pag~ 1 of 4 Police Department personnel will monitor the activities of the various valet services an average of twenty hours per week while working a flexible schedule. Monitoring will occur five evenings a week, some weeks with coverage Monday through Friday and other weeks changing the work schedule to include Saturdays. While the majority of the monitoring will occur during evening hours, primarily between 6:00 p.m. and 10:00 p.m., some monitoring will occasionally occur during the midday time frame for those restaurants that provide valet service for lunch customers. The valet monitors will observe operations at the restaurants, nearby streets and alleys, and the routes of travel used by the valets. They will document any of the following violations: 2. 3. 4. 5. 6. 7. 8. Unauthorized use of non-valet parking spaces at or near the restaurant site. Double-parked vehicles and/or blockage of the street. Unauthorized residential parking. Unauthorized use of City parking lots. Violations of the vehicle code by the valet parking staff. Violations of authorized hours and days of operation. Number.of valet personnel on-duty and adequacy of staiTmg. Any other additional relevant concerns or violations of the conditions included in the encroachment permit authorizing valet parking services. The second component concerns actual enforcement efforts. Because the current process entails the issuance of an encroachment permit by the Public Works Department, representatives of that Department must be involved. Police Department staff will forward the documentation of violations to the Transportation Division and the Public Works Department. The Transportation Division will send a warning letter to valet parking operators and the management of the restaurant. The letter will include a list of the violations. The valet parking operator and the involved restaurant will be given a two-week period to respond in writing to any alleged deficiencies and violations and the steps they intend to take to correct them, including California Vehicle Code violations committed by valets that police officers actually observe. Officers will also follow standard procedures in issuing traffic citations to those offenders at the time of the vehicle code violation. A copy of the citation will be forwarded to Transportation and Public Works staff. The third component of the program pertains to the revocation of an encroachment permit. Two or more violations, especially for parking in unauthorized and residential areas and vehicle code violations, will result in the permit revocation by Public Works Department. To allow the permit holders the opportunity to discuss and explain the violations, in addition to the warning CMR:404:97 Page 2 of 4 letters, staff will also meet with the valet operators and restaurant management prior to any revocation. The data gathered during this interim period will be used in the development of the recommendations for the formal program and ordinance that will be presented to the Council for consideration during the third quarter of FY 1997-98. FISCAL IMPACT The cost of the interim program is approximately $2,500 per month depending upon the number of hours worked in a particular month. Staff anticipates that for a six month interim period, the costs associated with the overtime for Police Department PEOs and CSOs will not exceed $15,000. Associated adjustments to the Police Department’s overtime budget would be presented as part of the City Manager’s mid-year budget report. POLICY IMPLICATIONS This program i~ consistent with existing City policy. ENVIRONMENTAL REVIEW .This is not a project under CEQA. ATTACHMENTS CMR:315:9.7 PREPARED BY:Lynne Johnson, Assistant Police Chief Don Hartnett, Traffic Division Manager DEPARTMENT HEAD REVIEW: CHRIS DURKIN, Police Chief EMILY HARRISON, Assistant City Manager CMR:404:97 Page 3 of 4 Chamber of Commerce Patrick Burr, University South Neighborhood Association Dan Lorimer, Downtown North Neighborhood. Association Mark Nanevicx, Downtown North Neighborhood. Association Susan Frank, Chamber of Commerce Maddalena’s Continental Restaurant Chantilly II European Restaurant Stars Palo Alto II Fomaio Zibibbo Restaurant Evvia Estiatorio Lucas Parking Service Flying Dutchman Parking Company MacArthur Park Garden Court Hotel Palermo Rotisserie CMR:404:97 Page 4 of 4 ATTACHMENT C City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AGENDA DATE: July 7, 1997 CMR:315:97 SUBJECT:VALET PARKING IN DOWNTOWN PALO ALTO The issue of valet parking in downtown Palo Alto surfaced approximately two years ago. At that time, staffused an existing mechanism (Encroachment Permit) to address the issue of valet parking on an interim basis, with the expectation that if the interest in valet parking continued and once staff gained some actual experience with valet parking, a more formal arrangement (i.e. City ordinance) would be developed. With two years of experience, continuing interest in valet parking on the part of downtown restaurants, and ongoing concerns about valet parking, staff believes it is time to develop a formal valet parking program and ordinance for the City, and requests Council direction to do so. RE’COMMENDATIONS Staff recommends that the Council direct staff to do the following: 1.Work with the Chamber of Commerce Parking Committee and other downtown and residential interests to develop a formal valet parking program and ordinance for downtown Palo Alto, and refer it to the Policy and Services Committee for review and recommendation to Council; 2.Develop an effective monitoring, enforcement and revocation process, which can be added to the existing procedures, and return to Council with it by September, with the goal of being able to continue the use of the existing procedures on an interim basis, until such time that a formal program and ordinance can be developed, reviewed and adopted; 3.Utilize the following strategy for the interim period of time until a formal valet program and ordinance is established: Permit continuation of the existing three valet parking operations, subject to all existing and future appropriate conditions and regulations, CMR:315:97 Page 1 of 10 Co Consider for approval applications that Evvia Estiatorio and Zibibbo have already submitted for valet, parking, subject to all existing and future conditions and regulations, including a limitation of two on-street spaces for drop-off/pick-up, unless there is a clearly demonstrated need for more spaces, and Consider for approval any additional applications submitted by businesses that want to use any on-street or off-street public parking spaces (parking lots and garages) for valet parking operations, only after staff has returned to Council in September with an effective monitoring and enforcement plan that can be added to the existing procedures. POLICY IMPLICATIONS One of the basic policy issues regarding valet parking concerns the exclusive use of on- street public parking spaces and off-street public parking facilities (surface lots, garages) for private businesses. BACKGROUND The issue of valet parking surfaced about two years ago with the opening of Stars Palo Alto (Stars) on Lytton Avenue. While valet parking had already been provided for several years by some downtown businesses (e.g. MacArthur Park Restaurant, Garden Court Hotel, and I1 Fornaio Restaurant), it generally was being done in a manner whereby the vehicle drop-off/pick-up area and the vehicle storage area were on private property. In conjunction with the opening of Stars, the owners instituted valet parking with the vehicle drop-off/pick-up area on a public street, and used some public parking facilities for the vehicle storage area. Associated with the private exclusive use of the public street and parking facilities, concerns arose about safety, fairness and legality. During the initial months of Stars’ valet operation, Police Department and Transportation Division staff worked with representatives of the restaurant, regarding the dual objectives of making the valet operation safe and legal. During that time, some changes and adjustments were made in the operation of the valet service, to address initial safety concerns. In addition, Stars was issued an Encroachment Permit by the City, whereby, subject to specified conditions, it received approval to use a designated portion of the public street and public parking lots for the provision of valet parking. In all of these discussions, staff took the position that any arrangement must be safe, fair, reasonable, and equally applicable to other businesses who may choose to offer a similar service in the future. Since that time, two long-established restaurants in the downtown area, Maddalena’s Continental Restaurant (Maddalena’s) and Chantilly 17 European Restaurant (Chantilly CMR:315:97 Page 2 of 10 H), have received permission, through the Encroachment Permit process, to conduct valet parking. Both of these valet parking operations have been in effect for approximately one year. Two additional restaurants, Evvia Estiatorio (Evvia) and Zibibbo, have made initial inquiries and have submitted information to apply for a permit to institute valet parking. A few additional restaurants have made initial inquiries, but have not followed through with an application. The terms and conditions of the Encroachment Permits that have been issued for valet parking include the following: Permit"tee has exclusive use of a designated number of on-street parking spaces directly in front of its business, between specified hours, seven days a week. The City postg signs to this effect. Permittee agrees not to park vehicles on any public street or alley, at any time during the day or evening (except for the approved spaces for drop-off and pick- up), within the surrounding commercial or residential areas. Permittee pays the following costs: the existing fee of $30 per week (Commercial/Construction Parking Permit) for each designated on-street parking space; the cost to the City for installing two signs ($300); and the Encroachment Permit application fee ($400). No fee is charged for City- authorized use ofunderutilized parking lots and garages in the evenings. Stars does pay the applicable published fee when it uses Lot S during the lunch-time period. Permittee agrees to park vehicles in a private parking facility during the daytime and evening hours. Evidence of an agreement, assuring that parking on private property is, and will remain, available for valet parking, must be provided to the City. I.fa private parking facility isnot feasible, the City, subject to availability, will allow selective public parking facilities that are currently underufilized, to be used for valet parking only in the evenings. Permittee agrees not to park vehicles in any off-street public parking facilities during the daytime, and to use only public parking facilities designated by the City in the evening. Permittee agrees to use a specified route for travel between vehicle drop- off/pick-up area and vehicle parking areas, and to obey all traffic rules and regulations in transit. Permittee agrees to provide adequate staffing to avoid the queuing of cars in travel lanes. No double parking or blockage of bicycle or travel lanes is allowed. CMR:315:97 Page 3 of 10 Permittee agrees to keep a five foot sidewalk space in front of the entrance to their restaurant open at all times. Some cities, most notably Beverly Hills, California, have extensive amounts of valet parking and have established a city ordinance to regulate it. Staff initially did not pursue that approach, but rather used the Encroachment Permit to address the issue of valet parking for the following reasons: (1) to develop and receive approval of an ordinance would have taken much longer; (2) to gain some actual experience with valet parking prior to the development of an ordinance; (3) to determine if the interest in valet parking would continue, disappear, or expand; and (4) because the Encroachment Permit provided a reasonable mechanism. DISCUSSION Current Status At the present time, there are three valet operations that are functioning under City authorized and approved procedures. Stars was the first such operation, and it began in the summer of 1995. Maddalena’s was the second, and it began in June 1996. Chantilly II was the third, and it began in September 1996. This past April, staff met with representatives of each of the three restaurants, as well as representatives of the valet services they contract with, to review their present operations. Following is a summary of staff’s understanding of their operations, as of late April: Stats Palo Alto Valet Operation Stars provides valet parking service for both the lunch-time period and in the evening, seven days a week. Stars uses Lucas Parking Service (2135 Pullman Avenue, Belmont, CA) to provide the service. There are four designated and signed spaces that are reserved for its valet operation in front of the restaurant, on the north side of Lytton Avenue. Stars charges the customer nothing at lunch time, and $3.00 per car in the evening. At the present time, Stars valet parks between 20 to 30 cars at lunch and about 45 cars in the evening. These numbers are lower than they were initially, and are expected to increase with the change in restaurant planned during the summer. Stars says it has about 6 attendants on a regular basis, and sometimes 7 to 8, who are parking and retrieving cars. At lunch time, the cars are initially parked in a private lot (22 spaces, serving about 35 cars with turnover) adjacent to its property, which can be accessed from Bryant. Any excess volume is parked in the City-owned attendant lot (Lot S). When Stars uses Lot S, it pays the appropriate fee. CMR:315:97 Page 4 of 10 In the evening, the cars are initially parked in the same private lot Stars owns. As part of its Encroachment Permit, Stars is allowed to use Lot K, which is underutilized in the evening. In addition, Stars says it also uses the private lots at 325 and 390 Lytton. Stars pays for the four designated spaces on Lytton at the rate of $30/space/week, or $6,240/year. It also pays the published hourly appropriate charge for the daytime use of Lot S (City-owned pay parking), but does not pay for the use of Lot K in the evening. Maddalelaa’s Continental Restaurant Valet Operation Maddalena’s provides valet parking service only in the evening (beginning at 6:00 p.m.), seven days a week. It uses Flying Dutchman Parking Company (Pier 27, Administrative Bt~ding, San Francisco, CA ) to provide the service. There are two designated, signed spaces reserved for its"valet operation in front of the restaurant, on the west side of Emerson. Maddalena’s charges the customer $4.00 per car in the evening. At the present time, Maddalena’s valet parksabout 15 cars a night, Monday through Wednesday and 20 to 25 cars, Thursday through Sunday. The restaurant says it normally has two attendants on a regular basis, and sometimes fills in with other people. Initially it was using a private lot, but, several months ago, lost that option and now has permission (as part of its Encroachment Permit) to use Level C of the Civic Center Garage and Lots E and G off Gilman, if Level C of the Civic Center Garage is full. Ma¢l. dalena’s pays for the two designated spaces on Lytton at the rate of $30/space/week, or $3,120/year. It does not pay for the use of Level C of the Civic Center Garage or Lots E and G. Chantilly It European Restaurant’s Valet Operation Chantilly II provides valet parking service only in the evening (beginning at 6:00 p.m.) seven days week. It also uses Flying Dutchman Parldng Company to provide the service. There are two designated, signed spaces reserved for its valet operation in front of the restaurant, on the west side of Ramona. Chantilly II charges the customer $4.00 per car in the evening. At the present time, it valet parks about 15 cars a night, Monday through Wednesday, and 20 to 30 cars, Thursday through Sunday. Chantilly II says it normally has two attendants on a regular basis and sometimes fills in with other people. The restaurant has permission (as part of its Encroachment Permit) to use Level C of the Civic Center Garage and also Lots E and G off Gilman, if Level C of the Civic Center Garage is full. CMR:315:97 Page 5 of 10 Chantilly II pays for the two designated spaces on Lytton at the rate of $30/space/week, or $3,120/year. They do not pay for the use of Level C of the Civic Center Garage, or Lots E and G. Future DireetiQlrl Given the nearly two years of experience and understanding of valet parking in downtown Palo Alto, coupled with the sense that valet parking, while limited in scale, is likely to continue and possibly expand, it is an appropriate time to develop a more formal and structured valet parking program and ordinance. Valet parking raises a basic policy issue concerning use of on-street public parking spaces and off-street public parking facilities by private businesses. Staff believes that the concept of removing a substantial number of vehicles that would otherwise be competing for heavily used public spaces is a significant benefit to all merchants, employers and customers in the downtown area, and is worthy of allowing exclusive use of a limited number of on-street spaces, as well as possible use of currently under-utilized public parking facilities. For example, for the three restaurants discussed previously (Stars, Maddalena’s and Chantilly 1I) there are a total of eight on-street parking spaces that have been designated for their exclusive use. In return, on weekends, when the availability of public parking is perceived as problematic, there are upwards of 85 to 100 cars being removed from the competition for the most highly utilized parking spaces, which are instead parked in spaces that are regularly under-utilized. Hqwever, in spite of the evident benefits associated with valet parking, the operational aspects of valet parking continue to raise concerns. Development of a formal valet parking program and ordinance for the downtown area would be an opportunity to establish policies and procedures that specifically address and resolve the issues and concerns Surrounding valet parking (e.g., permitting, fees, use of public facilities, monitoring, enforcement, conditions, etc.). The development of such an ordinance could appropriately be a joint effort of the Chamber of Commerce Parking Committee and City staff, and could incorporate the interests and concerns of residents, businesses and customers. While the specifics of such a program and ordinance need to be developed, they should consider and address, to the extent appropriate, the following issues: A requirement for a permit to do valet parking, with application review and approval procedures. Permit to specify: ¯location of on-street drop-off/pick-up area ¯hours/days of operation CMR:315:97 Page 6 of I0 o o 5. 6. 7. ¯location of vehicle storage area ¯ prohibition of storage in residential areas or non-approved public facilities ¯ route of travel to and from vehicle storage area ° related signing and attendant stands A mechanism to monitor and enforce the terms and conditions of the permit. A fee that reflects use of the public right-of-way (on-street and off-street parking), as well as costs related to monitoring and enforcement. Valet driver screening. Provision for indemnification and insui’ance requirements. Provision for short term, non-recurring events. Revocation process, if procedures are not followed. Alternatives As an alternative to pursuing the development of a formal valet parking program and ordinance, Council could consider the following alternatives: Continue with the existing Encroachment Permit procedures for the three existing operations and potential future applicants. Continue the three existing valet parking operations under the existing Encroachment Permit procedures, but do not allow any additional operations to use public facilities. Terminate existing valet parking operations and do not approve any new valet parking operations that use public facilities. Conclusions The staff recommendation is to proceed with the development of a formal valet parking program and ordinance for downtown Palo Alto, based upon the following considerations: (a) (b) (c) (d) the substantial benefit of removing a sizable number of cars from the competition for heavily used parking spaces, the opportunity to try and keep valet parked cars out of the residential neighborhoods adjacent to downtown, the continuing interest of downtown restaurants and patrons in having valet parking, and the operational improvements that can be achieved with effective monitoring and enforcement, as part of a formal program and ordinance. As a means to address both the ongoing interest in valet parking and the concerns with existing operations, staff also recommends that Council direct staff to develop an effective monitoring, enforcement, and revocation process, which can be added to the existing CMR:315:97 Page 7 of 10 procedures, with the goal of being able to continue the use of the existing procedures on an interim basis, until such time that a formal program and ordinance can be developed, reviewed and adopted. This is intended to take an expeditious look at what it would cost to establish a reasonable level of monitoring as well as appropriate legal mechanism(s) needed to enforce and revoke permission for valet p.arking operations, so that there is an improved level of control and performance maintained during the interim period of time needed to develop a formal program and ordinance. Initial thoughts on what this might involve include the possibility of hiring a part-time Parking Enforcement Officer (PEO), who would monitor valet parking operations to ensure compliance with conditions and regulations established in the Enchroachment Permit. The PEO could also provide enforcement of other parking related regulations (i.e. red zones, handicapped spaces, no parking zones in alleys, etc.). This would be an interim arrangement only until such time that a formal program and ordinance is approved. Staff believes that such an interim improvement could be instituted by September, where as a formal program and ordinance for valet parking will likely take at least six months. Until such time that a formal valet parking program and ordinance is established, staff recommends that the Council approve the following strategy: (a)Permit continuation of the existing three valet parking operations, subject to all existing and future appropriate conditions and regulations. This would allow Star’s (Spago), Maddalena’s and Chantilly II to continue the existing valet parking operations, and would make them subject to additional measures when approved in September. (b)Consider for approval applications that Evvia-and Zibibbo have already Submitted for valet parking, subject to all existing and future conditions and regulations. Evvia is an existing restaurant, that has submitted all the required application materials, and has been proceeding in good faith with City staff. Zibibbo’s is a large new restaurant, currently under construction, that is scheduled to open August 1, and is anticipated to have a substantial parking impact. Zibibbo’s has also submitted all required application materials and has been proceeding in good faith with City staff. Given the advanced nature of these applications, as well as timing issues, staff does not believe it would be appropriate to delay approval of valet parking until September. CMR:315:97 Page 8 of 10 Consider for approval any additional businesses that want to use any on-street or off-street public parking spaces (parking lots and garages) for valet parking operations, only after staff has returned to Council in September with an effective monitoring and enforcement plan that can be added to the existing procedures. Representatives of Palermo’s on University Avenue have only recently verbally expressed an interest in valet parking. At that time, staff discouraged submission of formal application materials, pending this current Council review. Under this proposed strategy, Palermo’s or other restaurants that may be interested in valet parking, would only be considered in conjunction with staff recommendations set to return to Council in September. FISCAL IMPACT The City receives $12,480 per year from the three current valet parking operations. As part of the development of a formal valet parking program and ordinance, consideration will need to be given to appropriate fee(s) to cover all program costs, including monitoring and enforcement. The intent should be to make the program 100 percent recovery. ENVIRONMENTAL ASSESSMENT Required environmental analysis will be completed in conjunction with the development of the program and ordinance. CMR:315:97 Page 9 of I0 Prepared By: Department Head Review: Lynne Johnson, Assistant Police Chief Marvin L. Overway, Chief Transportation Official CHRIS DURKIN Police Chief City Manager Approval: KENNETH R. SCHRJEIBER Director of Planning and Community Chamber of Commerce Patrick Burt, University South Group Dan Lorimer, Downtown North Neig. Assn. Mark Nanevicz, Downtown North Neig. Assn. Maddalena’s Continental Restaurant Chanti!l. y II European Restaurant Stars Palo Alto I1 Fomaio Zibibbo (Restaurant LuLu, Inc.) Evvia Estiatorio Lucas Parking Service Flying Dutchman Parking Company MacArthur Park Garden Court Hotel Palermo Rotisserie CMR:315:97 Page 10 of 10 !" ATTACHMENT D City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING DATE:October 5, 1995 CMR:432:95 SUBJECT:Valet Parking in Downtown Palo Alto REQUEST The purpose of this report is to inform the Council of measures that staff has taken to permit businesses in the downtown area to utilize public property in the provision of valet parking services. RECOMMENDATIONS No Council action is required at this trine. POLICY IMPLICATIONS Valet parking raises a basic policy issue concerning the private business use of on-street po.blic parking spaces and off-street public park_hag facilities. Staff believes that the concept of removing a number of vehicles, that would otherwise be competing for heavily used public spaces, is a significant benefit to merchants, employers and customers in the downtown area, and is worthy of allowing exclusive use of a limited number of on-street spaces, and possible use of under utilized public parking facilities. In the case of Stars Restaurant, at lunch time when all on-street and off-street public parking is normally fully utilized, they are removing 50 to 60 vehicles or more from the competition for public spaces by parking them on a private lot outside the core downtown business area. A similar benefit exists in the evening, by using underutilized public parking lots (Lot K in this case) and not competing for public on-street and off-street spaces that are normally more fully utilized. EXECUTIVE SUMMARY The issue of valet parking surfaced recently with the opening of Stars Restaurant on Lytton Avenue. While valet parking has been provided for some time by some downtown businesses (e.g. MacArthur Park Restaurant and the Garden Court Hotel), it generally has been done in a manner whereby the vehicle drop-off/pick-up area and the vehicle parking CMR:432:95 Page 1 of 4 area have been on private property. In conjunction with the opening of Stars, the owners instituted valet parking with the vehicle drop-off/pick-up area on a public street, and the possible use of public parking facilities for the vehicle parking area. Associated with the use of the public street and parking lots, concerns arose about safety, fairness, and legality. Over the past months, Police Department and Transportation Division staff have been in dialogue with representatives of Stars Restaurant, regarding the dual objectives of making the valet operation safe and legal. During that time, several changes and adjustments have been made in the operation of the valet service, to address initial safety concerns. In addition, representatives of Stars applied for, and have been issued, an Encroachment Permit by the City, whereby, subject to specified conditions, they have approval to use the public street and public parking lots for the provision of valet parking. In all of these discussions, staff has taken the position that may arrangement must be safe, fair, reasonable, and equally applicable to other businesses who may choose to offer a similar service in the furore (to date, there has been one other inquiry). ¯Specifically, the terms and conditions of the Encroachment Permit that has been issued for valet parking, include the following: Permittee has exclusive use of four on-street parking spaces along Lytton Avenue directly in front of Stars, between 9:00 a.m. and midnight, seven days a week. The City will post signs to this effect. Permittee agrees not to park vehicles on any public street or alley, at any time during the day or evening (except for theapproved four spaces), within the surrounding commercial or residential areas. Permit-tee pays the following costs: an existing fee of $30.00 per week for each of the four on-street parking spaces ($6,240 for one year); the cost to the City for installing two signs ($300); mad the Encroacbanent Permit application fee ($400). Pennittee agrees to park vehicles in a private parking facility during the daytime and evening hours. Evidence of an agreement, assuring that parking on private property is, and will remain, available for valet parking, is required to be provided to the City. The City, subject to availability, will allow selective public parking lots that are currently underutilized, to be used for valet parking in the evenings. CMR:432:95 .. Page 2 of 4 Permittee agrees not to park vehicles in any off-street public parking lots during the daytime and to use only public parking lots designated by the City in the evening. Permittee agrees to use a specified route for travel between vehicle drop- off/pick-up area and vehicle parking areas, and to obey all traffic rules and regulations in transit. Permittee agrees to provide adequate statfng to avoid the queuing of cars in the travel lanes. No double parking or blockage of bicycle or travel lanes will be allowed. Staffbelieves that these conditions provide a reasonable basis for allowing valet parking for the time being, and is prepared to work with other businesses that may be interested in providing the same service, but cannot do it all within private property. Some cities, most notably Beverly Hills, California, have extensive amounts of valet parking, and have established city ordinances to regulate it. While a valet parking ordinance may be warranted in the furore, staff decided not to pursue that direction at this time, but rather to use an existing mechanism (Encroachment Permit) to address the issue of valet parking foi- the following reasons: (1) development and approval of an ordinance would probably take much longer; (2) gaflaing some actual experience with valet parking would be helpful, prior to the development of an ordinance; (3) it is not certain whether the issue of valet parking will continue, disappear, or expand; and (4) the Encroachment Permit provided a reasonable mechanism. Depending upon the experience with Stars’ valet operation, and others that may materialize in the coming year, staff Will evaluate the need to alter the provisions of the encroachment permit, develop an ordinance, or establish some other mechanism to address valet parking. FISCAL IMPACT The City will receive an existing fee of $30.00 per parking space per week for each of the on-street parking spaces that are approved for use of valet parking. CMR:432:95 Page 3 of 4 ENVIRONMENTAL ASSESSMENT The purpose of this project is to lessen environmental impacts relative to traffic. It is categorically exempt pursuant to section 15301 of the CEQA guidelines which includes the operation of existing public facilities involving negligible or no expansion beyond existing use. Prepared By: Marvin L. Overway, Chief Transportation Official Department Head Review: KENNETH R. SCHREIBER Director of Planning and Community Environment City Manager Approval: Premier Properties Chamber of Commerce CMR:432:95 Page 4 of 4