SUPREME PARKING SERVICE (DOWNTOWN VALET PARKING SERVICES-PILOT PROGRAM) - 2014

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iu I Did Lei J1,10 BIN _L i To: City Manager From: Economic Development Specialist III Date: April 9, 2014 Subject: VALET PARKING VENDOR RECOMMENDATION This memo is to provide a recommendation for selecting a vendor for valet services at the Third and Bush parking lot in Downtown Santa Ana. In response to the Request for Quotations (RFQ) issued on March 19th, 2014, the City received 2 qualified proposals for valet service. Summary of Proposals Proposal Proposer Fee Central $500 /month payment to City Would request set -up at 6pm. If City does Services not allow for set -up prior to Spm, Central Parking will not be able to offer any payment to the City. Central states it is very difficult to operate a sustainable operation under this condition. Supreme 2 options: None Parking Service a) Flat monthly payment to City of $1000 /month. Would pay $6,000 in advance. b) Profit Share Agreement — City would receive 70% of profit after costs. Supreme's projections estimate an average of $1,111 per month. Recommendation: Enter into a 6 -month trial period license agreement with Supreme Parking Service at $1,000 /month flat monthly payment to the City. Both respondents have the desired qualifications in administering a valet parking program. But in comparison, Suprene's proposal in providing $500 more to the City in monthly revenue for the program and Central Parking's non - flexibility in set -up for the program were the deciding factors. After the 6 months, if the program is successful, the City can negotiate a Profit Share if deemed desirable and mutually beneficial. We should also request that Supreme work directly with the Farmer's Market to address their desire to stay open later and remain in the parking lot without severely impacting the Valet Parking Program.