Loading...
sr-072710-1p~ City Council and ~,~Yof Redevelopment Agency San[a Monie:i Report City Council and Redevelopment Agency Meeting: July 27, 2010 Revised July 26, 2010 Agenda Item: f To: Mayor and City Council Chairperson and Redevelopment Agency From: Carol Swindell, Finance Director Subject: Proposed Macerich Public Valet Program Recommended Action Staff recommends that the Council and Redevelopment Agency (Agency): 1) Authorize the City Manager and Executive Director to negotiate and execute a short term interim agreement with Macerich for use of 143 parking spaces in the North Civic Center Lot, across from City Hall, for car storage for a public valet program for a term of three months with three one-month renewal options at the rate of $6,101.50 per month; and 2) Authorize the City Manager and Executive Director to negotiate and execute a two year agreement with three one year options to extend with Macerich authorizing storage of 143 public valet parked vehicles in Parking Structure 8 and the Civic Auditorium Lot and for the installation of a parking guidance system in Parking Structures 7 and 8 and direct staff to return to Council with any necessary regulatory approvals or code changes needed, if any, to implement the operation of the valet program. Executive Summary Parking ,Structures 7 and 8 at Santa Monica Place, owned by the Redevelopment Agency, were built in 1979, providing 1,968 spaces for the Downtown. Since receiving seismic upgrades in 2002 and 2003, no additional capital improvements were made to these two parking facilities until the improvements made in 2010 as part of the Macerich property's remodel. Public valet parking was envisioned to be integrated into the remodeled structures. After detailed discussions with Macerich regarding the operations of parking Structures 7 and 8, staff and Macerich identified an alternative plan for public valet operations which includes dedicated spaces in Parking Structure 8 and the Civic Auditorium Lot and the installation of a parking guidance system, paid for and maintained by Macerich. In review of the proposed deal points, staff has identified several possible regulatory issues, including the need for California Coastal Commission approval and potential municipal code changes. With the outstanding issues associated with the proposed longer-term agreement, staff recommends authorization to enter into an interim agreement first which would generate revenue of 1 $6,101.50 per month while diligently pursuing the longer term agreement which would generate approximately $42,000 in additional revenue per year. Background On March 11, 2008, Council and the Agency considered a variety of issues related to Parking Structures 7 and 8, including public valet operations. At that meeting, Council and the Agency considered Macerich's proposal to operate a public valet parking program upon the re-opening of Santa Monica Place. Macerich proposed to operate a valet program for any member of the general public (public valet) by parking vehicles in Structures 7 and 8, Monday through Friday, from 8 a.m. to 6 p.m. During other hours (evenings and weekends when retail parking demand is highest), public valet vehicles would be parked in private parking facilities. Currently, the City allows public valet parking as one element of a coordinated parking system, and regulates public valet parking operations citywide. Similar to the other public valet services in the downtown, Macerich's proposed program would be subject to the City's public valet parking permit requirements and applicable fees. Macerich's public valet program, which would be implemented upon the re-opening of Santa Monica Place, was distinguished by its proposal to use Structures 7 and 8 to park patrons' vehicles. Council directed staff to ensure that the valet operation was in compliance with the Santa Monica Municipal Code -Public Valet Parking Ordinance Chapter 6.120, to allow public valet parking to take place in a publicly owned parking structure with the following requirements: 1) Access to the parking spaces at Parking Structure 7 and 8 remain open to the public and not limited to the exclusive use of Macerich. 2) Ensure the public valet program will not adversely affect downtown circulation. 3) Ensure the public valet program will not significantly compromise revenue collection or circulation within the parking structures. 4) Ensure the daytime public valet program complies with the requirements of the City's existing public valet parking ordinance. 2 5) Require patrons of Macerich's proposed public valet program to pay the same standard fees that apply to self parkers, including two hours free, with whatever surcharge Macerich determines is necessary to defray the costs of providing the public valet service. Current Agreement Following Council's direction of March 2008, the Agency and Macerich currently have a parking agreement that provides for the following: 278 non-dedicated general parking spaces in Structures 7 and 8, Monday through Friday, and in the Civic Structure on Saturdays and Sundays. • Parking revenue from structure 7 and 8 is split 50/50 between Macerich and the City after expenses. • Valet operations are allowed to park inside Structures 7 and 8 from 8:00 am to 6:00 pm in any available space. • At 6:00 p.m., all valet parked vehicles must be removed from the structure and moved to a nearby private lot. Discussion Similar Los Angeles-area shopping and dining destinations offer valet parking for shoppers and diners; valet parking has become a standard amenity. Over the past month, Macerich staff has met with City staff to discuss details of how to best implement the public valet system, provide a pleasant experience to visitors, and minimize its impact on parking and traffic. In the course of discussions, Macerich presented a proposal to lease spaces within Parking Structure 8 and the Civic Auditorium Lot for valet car storage at all hours. This approach would help traffic by eliminating the need to move all valet-parked vehicles in Structure 8 to an offsite location at 6:00 p.m. In addition, Macerich proposed installing and maintaining, at its cost, a parking guidance system to allow customers to locate available spaces and to inform customers of available spaces by level. Parking guidance systems are becoming commonplace tools to provide better customer service. 3 Staff and Macerich agree that providing all-day dedicated public valet parking spaces in Structure 8 and in the Civic Auditorium Lot would assist in the operations of a public valet, as well as keep a number of key day-time spots in downtown structures available to the public, and prevent public valets from adding to congestion within the structures. At this point, staff recommends the following: 1) Use of 43 of Macerich's existing 278 dedicated spaces in Parking Structure 8 beginning at $60.50 per month which is equivalent to one-half of the standard monthly rate for a public valet program. As revenue from parking spaces ih Structures 7 and 8 is split equally between Macerich and the City, Macerich's use of 43 dedicated spaces in Structure 8 would not result in reduced revenue for the City. 2) Use of 100 new spaces in the Civic Auditorium Lot at $35 per space per month for the length of the agreement for a public valet program. The amount per space is reduced from the current monthly rate of $163 per space per month currently charged. in the Civic Auditorium-Lot due to Macerich's investment in the parking guidance system below. 3) Macerich will pay 100% of the cost for the installation of Park Assist Parking Guidance System valued at $1.4 million in Structures 7 and 8. This camera- based system would alert customers to available spaces by level, reducing congestion. The system would be installed as part of the final agreement, if executed, with no reimbursement from the City to Macerich. 4) Term would be 2 years with 3 one year options. Parking Guidance System The proposed parking guidance system requires an initial investment of $1.4 million plus ongoing maintenance, both of which will be paid for by Macerich, with no cost to or reimbursement from the City. The system will inform customers of available parking spaces by level and within each level; customers will be directed to available parking via a red and green light indicator above each space. Additionally, the system has the capability for a parking customer to go to the security personnel for assistance in locating their vehicle. Staff is currently exploring various parking guidance systems to install in the remainder of the downtown structures, the costs of which are anticipated to be requested during the Fiscal Year 2011(12 budget process. Installation of this system in Parking Structures 4 7 and 8 does not predetermine which system will be installed in the remaining structures. Next Steps Following review of the recommended approach by the City Attorney's office, some regulatory questions were raised, which may require additional time to resolve. Coastal Commission Due to the location of Parking Structure 8 and the Civic Auditorium Lot in the Coastal Zone, Coastal Commission approval is necessary before dedicated public valet spaces can be approved. Staff will work with Macerich to seek its approval of the dedicated public valet spaces. CEQA The proposed parking management public valet program is exempt from the provision of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that the proposal will. not result in significant adverse environmental impacts since the public valet program only represents an operational change to the use of the existing parking spaces and will not result in the creation of any new parking demand. Interim Agreement In order to ensure staff and Macerich have sufficient time to address the Coastal Commission process and to bring forward any necessary ordinances that may be needed, staff recommends that Council authorize an interim agreement for the use of 143 spaces in the North Civic Center Lot, across from City Hall, for use by the public valet at Santa Monica Place for three months with three one month options to extend. During periods where it is necessary to complete pre-development work in the lot in preparation for the design of the park, staff will relocate the valet to a designated facility in or near the Civic Center. This will allow staff to maximize the use of existing City parking resources during the peak. summer period and the mall's reopening. Macerich 5 will be required to comply with standard valet requirements, including an approved traffic control plan. Following execution of the Interim Agreement, staff will work with Macerich to finalize an agreement within the parameters discussed above and will return to Council for authorization to enter into any necessary agreements, and align with any necessary code modifications. Financial Impacts & Budget Actions The Interim Agreement would generate approximately $6,101.50 per month for a total of $36,609, if all options are executed. If executed, the longer term agreement would generate approximately $42,000 in additional revenue, including $38,000 for the Civic Auditorium Fund and $4,000 for the General Fund via the Parking Tax. The City also will receive a Park Assist Parking Guidance System valued at $1.4 million. Prepared by: Donald Patterson, Business & Revenue Operations Manager Approved: Carol Swindell Finance Director Forwarded to Council: Rod Gould City Manager 6 Reference Contract Nos. 9248 (CCS/RAS) & 9249 (CCS/RAS).