SR-07-14-2015-3Ltma City Council Report
ID
City of
Santa Monica'
City Council Regular Meeting: July 14, 2015
Agenda Item: ,-'�®�_
To: Mayor and City Council
From: David Martin, Director, Transportation Engineering & Management (PCD)
Subject: License Agreement with Macerich SMP LP, to Use Reserved Spaces in
Parking Structure 8
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a new license agreement with Macerich SMP LP ( Macerich), a Delaware
limited partnership, for up to 6 years to use reserved spaces in Parking Structure 8 for
valet parking. This will result in a three year agreement, with one three year option to
renew.
Executive Summary
In 2010, the City entered into a five year agreement with Macerich to use 43 spaces on
the ground floor of Parking Structure 8 for valet parking. The agreement expires on
August 1, 2015. Staff recommends that Council authorize a license agreement for up to
six years to continue this service. There is no immediate financial impact or budget
action necessary as a result of the recommended action.
Background
On September 17, 2010, the City entered into a five year agreement with Macerich to
authorize the use of 43 of the 278 monthly parking keycards as designated spaces on
the ground floor of Parking Structure 8 for valet parking. The agreement expires August
1, 2015. The 43 spaces in Parking Structure 8 allow Macerich to more efficiently
conduct the valet operation, which is available to visitors of Santa Monica Place and
greater Downtown Santa Monica. As part of the license agreement authorizing the valet
spaces, Macerich installed parking equipment to direct visitors to available spaces using
dynamic available space count signage and overhead red and green lights. Macerich
also installed self - service kiosks to help visitors locate their vehicles within each parking
structure.
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Discussion
The use of Parking Structure 8 is subject to the terms and conditions in the Master
Lease Agreement (MLA) between the City and Macerich. Among other things, Macerich
has the right to purchase 278 monthly parking keycards for Santa Monica Place
employee use, 43 of which are used for valet parking. This license agreement is
supplemental to the MLA to provide for valet parking spaces, a service which is not
addressed in the MLA.
Macerich currently offers valet service from the valet stand on the 2nd Street side of the
mall. The service is offered from 10 am to 9 pm on weekdays and 11 am to 9 pm on
weekends. The first hour is $10, every thirty minutes thereafter is $2, with a daily
maximum of $20.
Parking Structure 8 provides 1,002 spaces and is rarely above 80% occupancy
including spaces occupied by Macerich employees and valet parking. In June 2014, the
peak average occupancy in this structure was 93% during the 3 pm hour on Saturdays,
leaving 70 spaces available. More recently, the peak average occupancy in March 2015
was 84% during the 3 pm hour on Saturdays, leaving 158 spaces available.
Per the Master Lease Agreement, Macerich pays for each valet space at a reduced rate
of 50% of the cost of monthly parking keycards. Monthly keycards currently cost $160;
therefore Macerich pays $80, for a monthly total of $3,440. Annual revenue is
anticipated at $41,280 and funds are deposited into account 01417.400318.
The license agreement with Macerich would not to exceed three years, with one three
year option to renew.
Coastal Commission
Parking Structure 8 is located within the California Coastal Zone. On July 30, 2010, the
California Coastal Commission granted an exemption to provide public valet parking
within Parking Structure 8.
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CEQA
The public valet program is exempt from the provision of CEQA pursuant to CEQA
Guidelines Section 15061(b)(3) as it can be seen with certainty that the proposal will not
result in significant adverse environmental impacts. The public valet program represents
an operational aspect of the existing parking structure and will not result in the creation
of any new parking demand.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of this
recommended action. Revenue projections are included in the FY 2015 -16 budget.
Prepared by: Jason Kligier, AICP, Parking Administrator
Prepared By: Jason Kligier, Parking Administrator
Approved Forwarded to Council
David Martin, Director 7/212015 Elaine M Polachek, Asst. City Manager 7/6/2015
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Reference:
Agreement No. 10097
(CCS)