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Staff ReportDATE: TO: FROM: MEETING DATE: 11/03/15 ITEM NO: 13 COUNCIL AGENDA REPORT OCTOBER 27, 2015 MAYOR AND TOWN COUNCIL LAUREL PREVETTI, TOWN MANAGER J�O�f SUBJECT: ADOPT AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING THE CODE OF THE TOWN OF LOS GATOS SECTION 29.10.145 OF CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE ALLOWING BUSINESSES TO CHARGE FOR VALET PARKING SERVICES WITHIN PRIVATE PARKING LOTS RECOMMENDATION: Staff recommends that the Town Council accept public comment and adopt the Planning Commission's recommendation and refer the proposed ordinance amendment to the Town's Transportation and Parking Commission for review and recommendation to the Planning Commission. BACKGROUND: For many years, the Town has been working on ways to increase parking space inventory throughout Downtown to allow customers to park more easily when shopping, dining, and enjoying the many services offered in Los Gatos. Adding spaces through increased parking areas such as new parking lots and structures is a costly and lengthy process. While this option is currently being explored through a Request for Interest process, the Town continues to seek more immediate and cost effective solutions to provide parking opportunities for custom Valet parking provides the opportunity to do this. ers. While offering valet parking services to customers is currently allowed in the Town Code, restrictions exist that prohibit charging for these services. Valet services typically cost between $18 and $25 per parking attendant, per hour. Businesses have stated that they cannot absorb this overhead and need to have the ability to recoup the cost from their customers. To date, there is only one private parking lot in the Parking Assessment District that offers valet service to their customers. This is the lot behind Willow Street Pizza in Lyndon Plaza. At the request of downtown business owners, the Town Council directed staff to draft ordinance amendments to Town Code Section 29.10.14 to allow businesses with private lots to offer paid PREPARED BY: 4 MONICA RENN ! I,V u Economic Vitality Manager Reviewed by: Town Manager Attorney N:WGR',Adminwoikfiles'�,2015 Council Report,'•.November 3411 iI?Valet TC Repor[.Doc PAGE MAYOR AND TOWN COUNCIL SUBJECT: VALET PARKING ORDINANCE AMENDMENTS OCTOBER 27, 2015 valet service to customers. Currently, the provisions of the Town Code only allow private valet services to exist without charge, and with a proper parking lot permit obtained through the Town's Development Review Committee (DRC) approval process. DISCUSSION The recommendation of amending the Town Code to allow for paid valet services was brought before the Planning Commission on October 14, 2015 (Exhibit 1 to Attachment 2). The Planning Commission discussed the recommendation at length and identified several concerns. Generally, the Commission was concerned that there was not enough information provided to make the decision and that the ordinance amendments had not been reviewed by the Transportation and Parking Commission. The Planning Commission also requested a map of the properties that could potentially have valet service. It would be extremely difficult and staff intensive to survey and evaluate each lot with private parking to identify the availability to provide valet services. A large number of parcels in the Parking Assessment District (PAD) have at least some onsite parking. The amount can range from one space to more than twenty spaces. There may be two lots with an identical number of spaces, but only one could logistically support valet services. Staff has included a map of the PAD (Attachment 4) to show the boundaries of district, and if it is the will of the Council, staff could complete the work of identifying private lots with valet service potential. Another option could be to survey the businesses in the PAD to understand the number and location of those that may be interested in operating paid valet services and evaluate their sites. Another concern shared by Planning Commissioners was that allowing businesses to charge for parking may give the appearance that the Town itself is charging, ultimately discouraging patrons from visiting Downtown. Many of the specific concerns included how the service is operated, rate maximums, conditions for revocation, review periods, hours of operation, and traffic patterns for parking cars off site. These issues could be addressed as each application is vetted by the Development Review Committee (DRC) through the parking lot permit process. As a result of these questions and concerns, the Commission voted 5 -0 to recommend to the Council to refer this matter to the Transportation and Parking Commission for further review and recommendation to the Planning Commission, before returning to the Council. The verbatim minutes are attached to this staff report (Attachment 1), along with the staff report to the Planning Commission for their October 14, 2015 meeting (Attachment 2) to provide the framework and details of the Planning Commission's discussion. Currently, Los Gatos Municipal Code Section 29.10.145 (g)(3) allows a private parking lot, located within the Town's PAD, to provide valet parking only if it is offered free of charge to the user. Section 29.10.145 (g)(3) currently reads as follows: PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: VALET PARKING ORDINANCE AMENDMENTS OCTOBER 27, 2015 (9) Commercial operation ofparking spaces. (3) Notwithstanding subsection (1) above, a private parking lot, or sections of a private parking lot located within a Town parking assessment district may be operated as a valet parking lot under the following circumstances: a. The valet parking is provided without charge to the public; and b. The valet parking lot service adheres to and maintains all fire codes and emergency access standards; and C. The valet parking lot service shall not impair the safe and efficient use of existing adjacent non -valet parking; and d. The private valet parking lot is approved by the Development Review Committee pursuant to a parking lot permit. The Development Review Committee shall have the ability to revoke the parking lot permit for valet parking with a minimum of ten (10) days' notice. As a result of benchmarking research done among other jurisdictions, staff added language to the proposed draft ordinance previously recommended to the Planning Commission to address issues proactively that may arise with paid valet parking. While the Town Code does currently allow valet parking without charge, Town staff anticipates that if a change in the ordinance were to be adopted to allow for charging guests, there would be an increase in valet parking permits for staff to review and process through the DRC. In addition, if changes were to be adopted, staff made the recommendation in the Planning Commission staff report to retain the permit process through the DRC so that each application could be properly reviewed and conditions could be applied individually to address concerns that are unique to the location and circumstances of the application. The proposed amendments to Section 29.10.145 (g)(3) (Exhibit 1 of Attachment 2), which were recommended to the Planning Commission at their October 14, 2015 meeting are shown below in red, underlined font. There are no proposed deletions. a. The valet parking may be provided with or without charge to the public; and PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: VALET PARKING ORDINANCE AMENDMENTS OCTOBER 27, 2015 b. The valet parking lot service adheres to and maintains all fire codes and emergency and ADA access standards; and c. The valet parking lot service shall not impair the safe and efficient use of existing adjacent non -valet parking; and d. Applicants for permits for valet parking services may be the property owner, if consent has been obtained from all tenants with the right to use the private parking lot, or a business owner with the right to use the private parking lot, if consent has been obtained from the property owner and all other tenants with the right to use the private parking lot. e. Providers of valet parking services shall be commercially licensed and insured vendors holding a valid occupational license. f. Permits shall be issued only to applicants that provide documentation that they have procured sufficient accessible private off - street parking spaces for their valet parking services. g. On- street parking spaces and parking spaces owned or maintained by the Town shall not be used by the permittee to park vehicles. h. The valet parking service area shall not be located on a public right -of -way. i. The location of the valet parking queue is restricted to existing designated off - street Parkin area. j. Permits will not be issued where the drop -off and pick- up of vehicles will interfere with the safe operation of driveways, street intersections, crosswalks or other prohibited areas. k. Permits will not be issued where the stacking of drop - off and/or pick up of vehicles will interfere with the safe traffic operation on adjacent streets or unduly delay or interfere with normal traffic operations. PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: VALET PARKING ORDINANCE AMENDMENTS OCTOBER 27, 2015 1. The permittee shall conduct valet narking services only during the hours of operation of the Permittee's business. m. The Permit issued shall be Personal to the permittee only and shall not be transferable in any manner. Prior to the issuance of a 12ermit, the applicant shall furnish the Town with a liability and property damage insurance for the benefit of the Town and a signed statement that the Permittee shall hold - harmless indemnify and defend the Town for any claims for damages. o. The private valet parking lot is approved by the Development Review Committee pursuant to a parking lot permit. The Development Review Committee shall have the discretion to deny the permit application if any criteria cannot be met and shall have the ability to revoke the parking lot permit for valet parking with a minimum of ten (10) days' notice. CONCLUSION: During the Planning Commission's discussion, several issues were raised around the idea of allowing businesses to charge for valet parking services as detailed in Attachment 1. Given the extensive discussion around these issues and the lack of engagement of the Transportation and Parking Commission, the Planning Commission arrived at their recommendation. Staff recommends that the Town Council adopt the Planning Commission's recommendation and refer the proposed ordinance amendment to the Town's Transportation and Parking Commission for review and recommendation to the Planning Commission. ALTERNATIVES: Alternatively, the Council may: 1. Move for introduction and first reading of the Ordinance, by title only, amending Section 29.10.145 of the Los Gatos Town Code; or, 2. Not introduce the ordinance and not pursue a modification to the Town Code with respect to valet parking. PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: VALET PARKING ORDINANCE AMENDMENTS OCTOBER 27, 2015 COORDINATION: This report was coordinated with the Town Manager's Office, Town Attorney's Office, and Community Development Department. ENVIRONMENTAL ASSESSMENT: The action is not a project defined under CEQA and no further action is required. Attachments: 1. Verbatim minutes from the October 14, 2015 Planning Commission Meeting for Item 4, Valet Parking 2. Planning Commission Staff Report prepared for the October 14, 2015 meeting, including Exhibit 1 3. Planning Commission Desk Item prepared for the October 14, 2015 meeting, including Exhibit 2 4. Map of Parking Assessment District boundaries