REPORT TO THE CITY COUNCIL
May 21, 2015
FROM: JENNIFER K. CLARK, Director
Development and Resource Management Department
BY: DEL ESTABROOKE, Parking Manager
Development and Resource Management Department
SUBJECT
Title
Actions Pertaining to the Parking Agreement between the City of Fresno and Club One Casino, Inc.
1. Adopt a finding of Categorical Exemption per staff determination pursuant to Article 19, Section 15301 Class 1 (existing facility) of the California Environmental Quality Act Guidelines
2. Authorize the Sixth Amendment to the Parking Agreement between the City of Fresno and Club One Casino, Inc. for fixed rate patron parking in the amount of $72,000 per year (Council District No.3)
Body
RECOMMENDATIONS
Adopt findings of Categorical Exemption per staff determination, pursuant to Article 19, Section 15301/Class 1 (Existing Facility) of the California Environmental Quality Act (CEQA) Guidelines for the extension of the parking agreement with Club One Casino (Club One).
Approve the Sixth Amendment to the Fixed Rate Patron Parking Agreement - Club One Casino between the City of Fresno and Club One for a one-year extension to provide parking in the Underground Parking Garage #8, at a fixed rate of $6,000 per month for 100 parking spaces for one year.
EXECUTIVE SUMMARY
Parking Garage No. 8 is located under Van Ness Avenue between Tulare and Fresno Streets and provides parking to various downtown businesses and public agencies. Club One contracted parking privileges with the City of Fresno for its patrons at a fixed monthly rate of $6,000 since June 2010. The City of Fresno has previously extended the terms of the agreement with Club One on an annual basis review arrangement in context of the changing downtown landscape. The most recent analysis concludes that Garage #8 still has the capacity to house Club One visitors, Holiday Inn guests, and the usual volume of monthly permit holders. This extension continues the prior conditions of the agreement for a one year period to end on June 30, 2016. The 100 stalls will be reserved for Club One guests at a flat rate of $6,000 per month with each additional Club One patron's vehicle beyond the 100 allotted stalls charged at a rate of $1.00 per day during the hours of 6am to 6 pm.
BACKGROUND
Club One is a downtown institution that contributes to the General Fund resources for the City of Fresno. Parking arrangements with Club One have helped secure the business located in the downtown core, as well as providing a steady revenue stream for Parking Services to maintain facility operations at one of the division's most heavily utilized garages. Since 2010 Parking Services has contracted with Club One for 100 designated spaces at the $6,000 rate plus $1.00 each additional car during the 6am-6pm time period. The most recent analysis concludes that Garage #8 still has the capacity to house Club One visitors, Holiday Inn guests, and the usual volume of monthly permit holders.
The cost to operate and maintain Parking Garage # 8 at the existing level is approximately $73 a month per stall. Club One pays the City an annual card room table tax of approximately $1 million which enables the City to offset some of Club One's parking costs; thus allowing the price of parking to be discounted to approximately $60 per stall as noted above.
ENVIRONMENTAL FINDINGS
Staff has determined that the proposed Sixth Amendment is exempt under CEQA Guideline 15301 Class 1, which provides exemption for the operation, repair, maintenance, permitting, leasing, licensing, or other minor alteration of existing public structures and facilities, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The proposed Sixth Amendment is within the Class 1 exemption because it involves existing City parking structures and facilities involving negligible or no expansion of use.
The above exemption is not precluded by Guideline 15300.2, which prevents the use of categorical exemptions for projects where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances, or where a project may cause a substantial adverse change in the significance of a historical resource. The proposed Sixth Amendment does not have a significant effect on the environment due to unusual circumstances, nor does it cause a substantial adverse change in the significance of a historical resource. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
LOCAL PREFERENCE
Local preference was not implemented because the item does not include a competitive bid.
FISCAL IMPACT
The parking agreement generates $72,000 of revenue annually. Additionally, Club One pays Card Room taxes to the City of approximately $1,000,000 per year. Terms of the agreement are reviewed at the end of each fiscal year to assess if adjustments are needed.
Attachment: Club One Parking Agmt SIXTH amendment 2015.pdf