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Valet Parking Services December 16, 2014 Page 2 Pilot Evaluation Staff recommends continuing the program for one year, with an option to extend the contract an additional two years, for a total of three years, at the Third and Bush surface lot and maintaining the hours of operation as Thursday through Saturday from 8:00 p.m. to 2:00 a.m. This evaluation is based on a) achieving the objectives set forth at the inception of the pilot program, b) evaluation of valet reports submitted by the parking operator, and c) receipt of positive feedback from area stakeholders. Over the last several months, staff has met with adjacent property owners and businesses, including the Yost Theatre, which initially made the request for downtown valet services to evaluate the success of the valet parking pilot program. All feedback has been positive. Based on this evaluation, the City has extended the agreement with the pilot operator Supreme Parking through December 31, 2014 in order to provide consistent services through the holiday season. The new agreement with the selected vendor will commence on January 1, 2015 (Exhibit 3). Selected Vendor A Request for Quotations (Exhibit 3) was released on November 14, 2014 to eight parking companies (Exhibit 4). The proposals were evaluated based on the following criteria: 1. Experience and Qualifications (50 %) 2. Cost to the customer (35 %) 3. Fee proposal to the City (15 %) The City received three responses from qualified vendors. There was one complete proposal from Supreme Parking, the company that has been operating the pilot valet program and two letters declining to bid. In the absence of competitive proposals in this round, staff evaluated Supreme Parking based on their exemplary performance executing the pilot valet program and the fact that they maintained their previous rate to customers despite reporting a monthly loss in revenue during the pilot program. It is recommended that the City enter into an agreement with Supreme Parking based on their experience, qualifications, customer cost ($8), and their proposed fee of $6,000 per year to the City ($500 per month). STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal 43 - Economic Development, Objective 4, Continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining, and entertainment destination, Strategy B, Create a comprehensive program to 25B -2