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File #: RES 15-0045    Version: 1
Type: Public Hearing - SR w/Resolution Status: Agenda Ready
In control: City Council Regular Meeting
On agenda: 7/7/2015 Final action:
Title: Conduct Public Hearing and Adoption of Resolution No. 15-0045 for a Coastal Development Permit to Allow a Modification to the Existing Downtown Valet Parking Program (Community Development Director Lundstedt). ADOPT RESOLUTION NO. 15-0045
Attachments: 1. Resolution No. 15-0045, 2. PPIC-Downtown Valet June 11, 2015, 3. Crimson Parking Agreement and OP Plan 2015
TO:
Honorable Mayor and Members of the City Council

THROUGH:
Mark Danaj, City Manager

FROM:
Marisa Lundstedt, Community Development Director
Erik Zandvliet, Traffic Engineer
Eric Haaland, Associate Planner

SUBJECT:Title
Conduct Public Hearing and Adoption of Resolution No. 15-0045 for a Coastal Development Permit to Allow a Modification to the Existing Downtown Valet Parking Program (Community Development Director Lundstedt).
ADOPT RESOLUTION NO. 15-0045
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Recommended Action
RECOMMENDATION:
The Parking and Public Improvements Commission recommends that the City Council adopt Resolution No. 15-0045 for a Coastal Development Permit to allow a modification to the existing Downtown Valet Parking Program.
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FISCAL IMPLICATIONS:
None. The valet operator will reimburse the City for meter charges during those times in which the street parking spaces are occupied by the valet service.

BACKGROUND:
The Downtown Valet Parking Program was initiated in 1999 in collaboration with the Downtown Business Improvement District. Various modifications have been made to the Program over 15 years through a series of Coastal Development Permits and agreement terms.

The 2008 Downtown Parking Management Plan supported the continued use of a valet to maximize the use of private parking spaces. The Plan recommended all-day valet service for restaurants, subject to private parking availability.

In Spring 2015, the Urban Land Institute's (ULI) Advisory Services assembled a professional panel to conduct an comprehensive assessment of Downtown to help the City formulate a strategic vision for the next 20 years. One of the ULI Report's recommendations is to expand the valet hours and days, as well as to add valet drop-off locations, particularly near restaurants of a certain size, to benefit all residents, visitors and customers.

On June 1, 2015, the DBPA requested approval of two additional valet drop-off locations and expansion of the valet operating hours. On June 11, 2015, the Parking and Public Improvements Commission (PPIC) discussed the DBPA's request, heard testimony from several businesses, and voted to recommend that the proposed expansion plan be approved by City Council (Attachment 1). The PPIC also recommended that local short-term parking be accommodated for retailers at the valet location on the west side of Manhattan Avenue between 9th Street and 9th Place during their business hours. These changes require the approval of a Coastal Development Permit per the attached application (Attachment 2)

DISCUSSION:

The Downtown Valet Parking Program has been in operation for approximately 15 years. There is a joint agreement between the City, DBPA and the valet operator which establishes the terms, conditions and responsibilities to operate a valet operation on City streets (Attachment 1, Exhibit 1). The DBPA contracts with Crimson Parking, Inc., separately to provide the valet parking services. The valet company, in turn, contracts with the private parking lot owner, for the use of the parking lots. The Downtown Valet Parking Program operates in compliance with Local Coastal Plan pursuant to Coastal Development Permits (# CA99-17, CA99-41, CA99-41A, and CA01-48) for up to 4 locations in the City.

Over the years, the number of valet drop-off locations has ranged from two to three locations, with a maximum of 16 metered street spaces displaced during valet operations (Attachment 1, Exhibit 2). The DBPA and valet operator currently use only two of the approved locations:

1. East side of Manhattan Avenue between Center Place and 12th Street (5 spaces), and
2. West side of Manhattan Avenue between 10th Place and 11th Street (5 spaces)

The valet charge has ranged from $2.50 for the first hour/$1.00 per hour thereafter/$12.50 maximum in 1999 to the current flat rate of $9.00. The hours of operation have generally remained unchanged, with the exception that Sunday valet operation is not allowed in the current agreement. The current valet operator is Crimson Parking, Inc.

Various off-street valet parking sites have been used during the last 15 years, including Union Bank (400 Manhattan Beach Boulevard), Chase Bank (201 Manhattan Beach Boulevard), Sketchers Office Building (228 Manhattan Beach Boulevard, and Level 3 of Parking Lot #3 (12th Street/Morningside), providing up to 250 parking spaces. The current valet operation uses the Sketchers Office Building (approximately 110 spaces) and the Chase Bank lot (20 spaces), for a total of approximately 130 parking spaces.

It should be noted that a second valet service operates in the Metlox Parking Structure under contract with the Shade Hotel. The valet parking area is on the lower level and is primarily used by hotel patrons.

Proposed Changes

On June 1, 2015 the DBPA submitted a request to expand the Downtown Valet Parking Program (Attachment 1, Exhibit 3). It is requesting the addition of two new valet drop-off locations:

1. North side of Manhattan Beach Boulevard between Ocean Drive and Manhattan Avenue (4 spaces)
2. West side of Manhattan Avenue between 9th Street and 9th Place (4 spaces

Both locations are within the appealable area of the Coastal Zone. If recommended, the City Council would need to pass a resolution approving a Coastal Development Permit for the additional valet drop-off locations.

The DPBA is also requesting additional changes to general valet operation, as detailed in the Draft Valet Parking Agreement (Attachment 3). The changes include daytime hours on Saturday and Sundays, valet service on all days at three locations and an increase in valet rates to $11 per vehicle. They are also requesting clarification in the agreement to waive the required parking meter reimbursement fee for those holidays and special events during which the valet does NOT operate.

The City Traffic Engineer is generally supportive of the proposed changes, since the valet service leverages underutilized private parking spaces for use by the general public. It will provide some relief for the public parking lots and street spaces by increasing the overall parking supply available to the public. The private parking lots are typically not used during the proposed valet hours, so parking would not be displaced. The current policy to prohibit preferential use of the valet by certain businesses or patrons should be maintained in order to provide equal access by the public in the Coastal Zone.

The valet service currently occupies 10 metered street spaces at the drop-off locations that are not usable by the public during valet times. If both proposed drop-off locations are approved, the number of unusable metered spaces would increase from 10 to 18 spaces. Based on 130 private parking spaces currently available to the valet service, the existing 13 to 1 parking ratio benefit would fall to 7.2 to 1 when 18 public spaces are used to fill the same 130 private spaces. This also means that the valet service may have to close down sooner when all private spaces become fully occupied. Therefore, the City Traffic Engineer suggested the valet operator find additional private parking locations as demand increases, such as the Union Bank and Bank of America, so the valet does not have to turn away customers.

In preparation for the PPIC public meeting, Staff has invited participation from a variety of stakeholders through various methods, including:
* Hand-delivered notices to adjacent property owners, businesses and residents;
* Notices sent to Downtown Business and Professional Association (DBPA);
* Special Meeting Notices posted in approved locations; and
* City Website Announcement.

Coastal Development Permit

Pursuant to Code Section A.96.040 of the certified Local Coastal Program (LCP) a Coastal Development Permit is required for:

....any development, including gates, parking controls, new locations for parking meter areas, changes in fee structure, expansion of times and hours in which monthly permits may be offered, or other devices in the coastal zone that change the availability of long and short term public parking, including but not limited to, changes in the operation of the parking management program established by Section A.64.230.

The existing valet parking operation was issued a Coastal Development Permit and the proposed locations and expansion of operating hours also requires such approval. The permit is appealable to the Coastal Commission since both new locations are within the appealable area of the coastal zone.

Since the relocated valet station requires approval by the City Council, Section A.96.090 (A.1) of the LCP requires that action on the Coastal Development Permit be held concurrently. Public notification, consistent with Section A.96.110 (B) of the LCP, has been made in preparation for the City Council consideration.

Coastal Development Permit Findings

The findings required for issuance of the Coastal Development Permit are contained in Section A.96.150 (A & B) of the LCP. These findings are:
1. That the project, as described in the application and accompanying materials, as modified by any conditions of approval, conforms with the certified Manhattan Beach Local Coastal Program; and,
2. If the project is located within the first public road and the sea, that the project is in conformity with the public access and recreation policies of Chapter 3 of the Coastal Act of 1976.

Staff recommends approval of the Coastal Development Permit based upon project consistency with the following LCP policies:

* Policy I.A.2: The City shall encourage, maintain, and implement safe and efficient traffic flow patterns to permit sufficient beach and parking access.
* Policy I.C.1: The City shall maintain and encourage the expansion of commercial district parking facilities necessary to meet demand requirements.
* Policy I.C.3: The City shall encourage additional off-street parking to be concentrated for efficiency relative to the parking and traffic system.
* Policy I.C.10: Concentrate new parking in the Downtown Commercial District to facilitate joint use opportunities (office and weekend beach parking uses).

Based upon the project's consistency with these LCP policies, and the fact that the project will not negatively impact public access and recreation, staff recommends adoption of a resolution (Attachment 3) to approve a Coastal Development Permit for the proposed valet operation.

Environmental Review

Based upon staff's analysis the proposed program is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). Specifically, the project is exempt per Section 15061 (b)(3) which states that, "CEQA only applies to projects which have the potential for causing a significant effect on the environment". The project, as presented, simply continues to provide a program to increase the convenience of downtown parking and does not have any potential for significant environmental impact.

PUBLIC OUTREACH/INTEREST:

Public notification, consistent with Section A.96.110 (B) of the LCP, has been made in preparation for the City Council consideration, as well as public notice of the City Council Public Hearing in the standard public locations. Staff also invited participation from a variety of stakeholders through various methods, including:

* Hand-delivered notices to adjacent property owners, businesses and residents;
* Email notification sent by DBPA;
* Special Meeting Notices posted in approved locations; and
* City Website Announcement.


CONCLUSION:
Based on the overall benefit of utilizing unused private parking for the general public and net increase in public parking availability, it is recommended that the City Council adopt a resolution approving a Coastal Development Permit for the proposed expansion of the Valet Parking Program as described in the Draft Valet Parking Agreement between the City, DBPA and the valet operator (Attachment 4).

Attachments
1. Resolution No. 15-0045
2. PPIC-Downtown Valet June 11, 2015
3. Crimson Parking Agreement and OP Plan 2015