DEPARTMENT: Center City Development & Operations Department
DEPARTMENT HEAD: John Jacks, Interim Director
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Valet Service Concessionaire
SUMMARY:
This ordinance approves an agreement to provide a valet service concessionaire for downtown. The valet service provider will provide multiple drop off points and a return service at the customer’s specified location through innovative technology that allows for electronic payment and vehicle monitoring from drop off to pick up.
BACKGROUND INFORMATION:
In an effort to expand parking options for visitors to our downtown, the City advertised a Request for Proposals (RFP) to seek interested parties in providing a parking valet service in downtown San Antonio.
The RFP was issued on July 8, 2016 and closed on August 24, 2016. The City received two respondents. Interviews were conducted with both companies. The evaluation team consisted of representatives from the Center City Development & Operations Department. The team recommends entering into an agreement with Sovereign Services of Houston.
Under this agreement, Sovereign Services of Houston will provide multiple drop off points and a return service at the customer’s specified location. By utilizing innovative technology, the valet service provider will accept electronic payment and monitor the process from vehicle drop-off to pick-up, ensuring security and transparency for the customer. Valet service providers currently offer similar services in other cities such as Austin, San Francisco, Seattle and Boston.
To help make the valet service successful, the City will provide public right of way that can serve as drop-off and staging areas for vehicles. Sovereign Services is not limited to these opportunities and may make other contractual arrangements to use private property to serve as drop-off and staging areas. The City has identified multiple areas that can be made available to the vendor for vehicle drop-off. Additionally, the City will allow the provider to park customer vehicles within City-managed parking facilities.
All expenses for the valet service will be covered by the selected provider. Sovereign Services of Houston will charge parking fees to the general public for use of the valet services, and allocate a portion of the revenues to the City of San Antonio in exchange for the license to provide this service in the downtown area. Additionally, the valet provider may charge for additional services such as car washing and refueling.
ISSUE:
This ordinance authorizes the execution of a concession agreement with Sovereign Services of Houston to provide valet services in the downtown area.
ALTERNATIVES:
City Council could choose not to enter into a concession agreement with the selected vendor, and the City could re-issue the RFP and solicit proposals from additional vendors. This action would delay offering a valet service to downtown visitors.
FISCAL IMPACT:
Sovereign Services of Houston will pay the City 20% of gross revenues collected from this agreement, on a monthly basis. The estimated fiscal impact is $12,000.00 annually, and all revenue will be deposited in the Parking Fund.
RECOMMENDATION:
Staff recommends the execution of a concession agreement with Sovereign Services of Houston to provide valet services in the downtown area.