SR - AGR-6474 - VALET PARKING SERVICE IN OLD TOWNE1. SUBJECT
Valet Parking Service for Old Towne.
2. SUMMARY
City staff is proposing a three month pilot program for valet parking service to help address the
parking challenges in the Old Towne area. The valet service would be sponsored and managed by
the City through a contract with a professional valet company. The drop off and pick -up area is
recommended to be located directly in front of the Community Services building located at 230 E.
Chapman Avenue.
3. RECOMMENDATION
1. Direct the City Manager to enter into a contract with AmeriPark LLC (AmeriPark) to
provide a City sponsored valet parking service for a three month period with one three
month extension; and
2. Authorize the use of public parking lots as illustrated in Exhibit A for the valet parking
service as needed.
4. FISCAL IMPACT
The monthly cost of the contract is approximately $19,440. It is anticipated that the contract cost
will be offset with revenue received by patrons utilizing the service. As such, it is hoped that the
program will have a neutral fiscal impact. Should the program not be revenue neutral after three
months, the pilot program may be discontinued.
5. STRATEGIC PLAN
3e. Develop and strengthen collaborative partnerships to enhance and promote quality of life
programs, projects, and services; and 4b. Provide facilities and services to meet customer
expectations.
6. DISCUSSION and BACKGROUND
Background
Approximately 15 years ago, the City began an ambitious redevelopment effort for the downtown
area of Old Towne with the goal to create a vibrant business climate. One of the strategies was to
proactively work with the property owners and brokers to attract additional quality tenants as a
means to increase the amount of patrons to the area. The results have been impressive. The
downtown area of Old Towne is extremely successful with over 50 restaurants and as many retail
establishments in the downtown core. Our downtown is consistently rated as one of the top
downtowns in Southern California, and for good reason. Downtown has some of the best and most
unique restaurants in Orange County; the beautifully restored buildings and Plaza area provide
excellent ambiance; and the location is very family friendly. During peak lunch -time and evening
hours, the downtown area is thriving with thousands of visitors.
Unfortunately, the success of downtown has resulted in parking challenges. While the City has
approximately 1,490 parking spaces in numerous public lots and on- street throughout Old Towne,
many are at capacity during peak times of the day. Recent studies have concluded that there is a
significant parking deficiency and as a result, our restaurants and retail establishments are missing
out on customers.
In early 2017, staff organized a group of merchants, property owners, and Old Towne stakeholders
to initiate a conversation regarding parking. The goal of the focus group was to define the parking
challenges and develop potential short and long -term solutions. The group has met several times
and has established a short list of preferred options to improve the parking conditions in Old
Towne. Among the preferred options include building an additional parking structure on the east
side of Plaza (in addition to the Metrolink structure planned for the west side), provide additional
parking options for employees of the downtown businesses, increase enforcement of parking
limits, and consider paid /metered parking for the core parking lots and on- street spaces. In
addition, the group is recommending that the City establish a valet parking service.
Valet service is not a new concept for Old Towne. In recent years, some businesses have expressed
an interest in providing valet service for their establishment, however they did not have a place to
park cars nor the appropriate right -of -way to coordinate the pick -up and drop off activity.
Therefore, up until now valet service has not been permitted by the City. That said, one business
(Citrus City Grill) does have a valet service that is entirely contained on their property.
After talking the concept through with the parking focus group as well as with the internal city
organization, it has been determined that a City- sponsored and managed valet program is feasible.
The members of the focus group strongly believe a valet program will be embraced by their
customers, will partially alleviate some of the parking difficulties, and serve as an excellent short -
term option that can be implemented quickly.
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Discussion
As a result of the discussions with the focus group, staff began to formulate a valet parking plan.
Among the considerations to be reviewed included: valet drop off and pick up location, where to
park the cars, circulation of valet operations, hours of operation, selection of a valet contractor,
and cost. As this is a new concept for the City, it is recommended that a three -month pilot program
be initiated to serve as a trial run to determine if the program can be successful. Provided below
are many of the program details:
• Drop -off and pick -up location: While the preferred location would be directly adjacent to
the Plaza, it would also be the most problematic due to traffic concerns as well as the
perception that the use would only benefit a nearby particular establishment. In
researching, staff determined that the most ideal location would be on Chapman Avenue
directly in front of the Community Services building located at 230 E. Chapman Avenue
(Exhibit A). This location does not inhibit nearby businesses, is within walking distance
to the Plaza, and is in a neutral area adjacent to City Hall. To utilize this location, it is
recommended that the City establish a loading zone for the five parking spaces directly
west of Grand Street on Chapman Avenue to accommodate the valet service as well as
mitigate any potential traffic impacts.
• Hours of Operations: Based on the discussions with the merchants, it has been determined
that for the initial pilot program the proposed valet service would be as follows: Sunday
through Saturday 11:00 a.m. to 2:30 p.m. and 5:30 p.m. to 11:00 p.m. The focus group
indicated that the weekday lunch peak is the most challenging time for their customers.
This is due to the concentrated "lunch rush" as well as the area office employees utilizing
the public parking lots. As such, it is possible that the weekend lunch peak may not warrant
the valet parking program as the office employees are not present. The group also indicated
that the evening hours are extremely busy for them as the increased number of customers
more than offset the departing office employees in the parking lots.
• Staging of the vehicles: The City lots (Exhibit A) that are currently underutilized and
available to be used to park the valeted cars are: 1) Almond Avenue, 2) Grand Street, and
3) West Civic Center (employee parking lot at the corner of Grand Street and Almond
Avenue behind the Finance Building). Staff proposes using the Almond Avenue lot during
the day and the Grand Street and West Civic Center lots for evening hours. As the Almond
lot is directly adjacent to residential properties, the lot will not be used for evening use.
Staff reached out to St. John's Lutheran Church and the Women's Club to discuss the
proposed locations and was advised that both primarily use the East Civic Center parking
lot while only using the Almond and West Civic Center lots on a limited basis, and likely
not during the times that the valet service is being proposed. As such, the East Civic Center
public lot is not being considered for the valet program at this time. It is estimated that the
Almond lot can accommodate approximately 45 cars, the West Civic Center lot can park
approximately 50 cars and the Grand St. lot park 45 cars. Among the advantages of these
three lots are they are minimally used during peak hours (Almond at lunch and West Civic
Center and Grand St. in the evening) and the traffic circulation of the valet operation is
least impactful to nearby residents and businesses.
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• Valet Operator: Staff requested and received proposals from four companies who are well
known in the area and are experienced in providing valet service. The proposals were fairly
consistent and the cost ranged between $506 and $770 per day for three attendants, nine
hours per day. Based on the proposals received, Staff is recommending to use AmeriPark
for the pilot program. While AmeriPark did not submit the lowest proposal, they have the
best qualifications. They currently provide valet service to local businesses including The
Outlets at Orange and the Brea Mall and come highly recommended by these
establishments. In addition, AmeriPark has the capability to provide ticket -less valet
service which provides more convenience to the customers as well as the service provider.
AmeriPark utilizes a smartphone based valet parking technology which allows for text -
ahead vehicle retrieval, repeat customer recognition, real -time vehicle inventory tracking,
and various reporting options. The vendor will provide all necessary insurance, uniforms,
signs, and supplies required for the service. At the end of each month, AmeriPark will
either reimburse the City with the excess revenue or bill for the cost.
• Cost: The proposed contract with AmeriPark includes an approximately daily cost of $648.
At a rate of $5.00 or $6.00 per customer, the break -even point for the valet program is 130
or 108 cars per day respectively. It is important to note that during the meetings with the
focus group, the $5.00 rate has been the fee discussed. However, in further discussions
with AmeriPark, they believe $6.00 would be very accepted by the valet customers.
Obviously, by using the $6.00 rate, the breakeven threshold is lower. It is anticipated that
demand for the valet program will be strong and therefore incoming revenue will
completely offset the monthly cost of $19,440, particularly if the rate is set at $6.00. Should
the valet program not attract sufficient patrons to offset the costs of the program, staff will
likely recommend discontinuing the program after the conclusion of the pilot program.
Conclusion
Based on the increasing parking demands in the downtown area, a multi- faceted parking solution
is necessary. As a result, a number of options are being considered. One option preferred by the
merchants, property owners, and other stakeholders in Old Towne, is a City- sponsored valet
parking program. It is recommended the City establish a three to six month pilot program for a
valet parking service. Because valet service for the Old Towne area is a novelty, staff is uncertain
what impacts, if any, may arise. Therefore, during the pilot program, staff will carefully monitor
the operations of the service and make adjustments including, but not limited to, altering the hours
of operation, changing the location of the pick -up /drop off area, and adjusting the cost per car as
necessary. Within the first three months, staff will determine whether the program is successful
and return to City Council with sufficient time before the end of the contract with an update and a
recommendation to either extend or conclude the service.
7. ATTACHMENTS
• Exhibit A — Aerial Map
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