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Item 4I (2)City of Southlake, Texas M E M O R A N D U M February 28, 2007 TO: Shana Yelverton, City Manager FROM: Ken Baker, Planning and Development Director Ordinance No. 904, 2nd Reading, an Ordinance Amending Chapter 5, SUBJECT: Businesses, of the Southlake City Code by adding Article VIII, valet parking on public streets and rights-of-way. Action Requested : Consider Ordinance No. 904, 2nd Reading, an ordinance amending chapter 5, Businesses, of the Southlake City Code by adding Article VIII, valet parking on public streets and rights-of-way. (If approved at first reading, the public hearing will be held March 6, 2007.) Background Information : The city staff has been approached by Copper & Stebbins about allowing valet parking to operate in the Grand Avenue phase of Town Square. Currently, staff is aware of two (2) such services operating at local restaurants; however, both these services operate on private property which is permitted as an accessory use. Section 316.021 of the Texas Transportation Code (“Code”) prohibits municipalities from allowing the use of a public street for a private purpose unless the city first determines that such use will not interfere with the public's use of the street and will not create a dangerous condition on the street. Adoption of a proposed valet parking ordinance is the city attorney’s recommended method for compliance with this statutory prohibition because it sets forth rules and regulations which insure the safety of the public as a result of the private party's use of the public streets for valet parking purposes. A summary of the important points is as follows:  The ordinance contemplates that the business that benefits from the valet parking services is the proper applicant for the valet parking permit. Thus, the term “licensee” includes the person who actually obtains the permit and any employee, agent or independent contractor of such person.  In order to obtain a valet parking permit, a person must apply in writing to the public works director and pay the applicable fee.  The application must include specific information described in section 5-258, including proof that the applicant has sent written notice to all property owners within 100 feet of the proposed valet parking service location.  Once an application is received, the public works director forwards it to the Dept. of Pub. Safety and any other department that might be affected by the proposed valet parking service for their review and comment.  After such a review, the Director of Public Works issues a Valet Parking Permit. The parking permit is good for 1 year and must be renewed annually.  An annual fee of $500 and $50 for each parking space over 2 spaces shall be required for each approved permit application.  There are 2 separate offenses under this ordinance: (1) operating a valet parking service without a license or with an expired license; and (2) exceeding the scope of the permit or violating the duties of a licensee as set forth in section 5-263. Each offense is a Class C misdemeanor punishable by a fine not to exceed $500.00.  Section 5-263 contains the standards/requirements for operating a valet parking service. For example, all employees must have valid Texas DLs, be insured by the operator and wear retroreflective safety vests. A copy of the permit must be kept on hand at all times.  Section 5-263 governs the permitted uses and locations of valet parking stands.  Section 5-264 discusses the permissible locations of the valet parking service.  Section 5-265 sets forth the insurance requirements. The limits contained therein were derived from the Fort Worth ordinance.  Section 5-266 requires the licensee to enter into a separate written indemnification and hold harmless agreement with the city. Financial Considerations : There are no financial considerations relating to this agenda item. Financial Impact : There is no financial impact relating to this agenda item. Citizen Input / Board Review : None Legal Review : The ordinance was drafted by the City Attorney’s office. Alternatives : Deny the ordinance and prohibit valet parking in Town Square. Supporting Documents : Copy of Ordinance No. 904 ORDINANCE NO. 904 AN ORDINANCE AMENDING CHAPTER 5, BUSINESSES, OF THE CODE OF ORDINANCES OF THE CITY OF SOUTHLAKE, TEXAS BY ADDING ARTICLE VIII, VALET PARKING, TO PROVIDE FOR THE LICENSING OF VALET PARKING SERVICES ON PUBLIC STREETS AND RIGHT-OF-WAYS; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY FOR VIOLATIONS; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS , the City of Southlake is a home rule city acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS , the City Council possesses, pursuant to section 311.011 of the Texas Transportation Code, as amended, the exclusive control and power over public streets; and WHEREAS , the City Council has determined that businesses that desire to use public streets and right-of-ways for the purposes of providing valet parking services to their customers pose a significant risk of danger to the public and will likely increase traffic congestion within the City; and WHEREAS, the City Council has determined that in order protect the public from harm and to minimize the traffic congestion associated with such activity, it is necessary to require businesses to obtain a license from the City to utilize public streets and right-of-ways for the purposes of providing valet parking services to their customers and to meet certain other requirements as specified herein. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF SOUTHLAKE, TEXAS: SECTION 1. That Chapter 5 of the Code of Ordinances of the City of Southlake, Texas, is hereby amended by adding Article VIII to read as follows: ARTICLE VIII. VALET PARKING Sec. 5-256. Definitions. For the purposes of this article: Director means the director of the city’s public works department or the director's designated representative. Licensee means a person licensed under this article to operate a valet parking service. The term includes any employee, agent, or independent contractor of the person in whose name the valet parking permit is issued. Valet parking permit means a permit issued by the director authorizing a valet parking service to use the city’s streets or right-of-ways. Valet parking service means a service provided by a business located within the city limits in which a person operates a vehicle to and from a parking location so that the driver and any passengers in the vehicle may unload and load at their immediate destination. Sec. 5-257. Purpose. This article applies only to a valet parking service provided in connection with a commercial establishment or commercial activity and does not apply to occasional valet parking services provided at a private residences or in connection with a social or fund raising activity. Sec. 5-258. Valet parking permit required; application; issuance. (a) A business that desires to operate a valet parking service on a public street or right-of- way within the city limits, or on private property which would require the use of a public street or right-of-way, shall apply in writing to the director for a valet parking permit and pay the applicable fee prescribed in section 5-260 for the permit. One application per site must be made to the director. The application must be made by the owner or lessee of the premises benefitting from the proposed valet parking service or the valet parking service and must contain the following information: (1) The names, addresses, and telephone numbers of: a. The applicant; b. If the applicant is a lessee, the property owner; and c. The independent contractor, if any, the applicant will use to provide the valet parking service; (2) The proposed location of the valet parking service and any valet parking service stands; (3) The number of spaces requested to be reserved for the valet parking service, each space being 25 feet long, if parallel to the curb, or 9 feet wide, if head in to the curb; a minimum number of 2 spaces must be reserved unless the director determines that because of special traffic conditions, a greater number of spaces is needed to efficiently operate the valet parking service; (4) The proposed hours and days of operation of the valet parking service; (5) The location of off-street parking, if off-street parking is to be used, and a signed agreement or other documentation showing that the applicant has a legal right to park vehicles at such off-street location; (6) Proof of insurance as required by section 5-265; and (7) Copies of written notification to all property owners, or their representatives, located within 100 feet of, on the same side of the street as, and within the same block as the valet parking service location. The applicant is not required to notify property owners that are on the opposite side of the street or across the same block as the valet parking service location, even if such property owners are within 100 feet of such location. (8) A site map showing location of valet parking, placement of valet stand, and off-site valet parking. This map shall also include the placement of any traffic cones to be used. (b) The director shall forward a copy of any completed application to any person required to be listed under subsection (a)(7) of this section and to the Department of Public Safety and any other department that might be affected by the operation of the proposed valet parking service. Each office or department, and any other notified persons, shall review the application and return it to the director with any comments within 30 days of receipt. (c) After reviewing the application and comments of the departments and of any person notified in accordance with subsection (a)(7) of this section, and upon receiving payment of all fees required by this division, the director shall issue a valet parking permit if the applicant meets the requirements of this article. (d) A licensee desiring to change the location or hours of operation of a valet parking service must submit a new application to the director in accordance with this section. (e) A valet parking permit expires 1 year from the date of issuance unless sooner terminated by the director or renewed as provided by this subsection. A valet parking permit must be renewed at least 30 calendar days before expiration through a renewal application in which the licensee must disclose any changes related to the valet parking service and payment of all necessary fees. If renewal is denied by the director, then the licensee may appeal in accordance with section 5-262. Failure to apply for renewal of valet parking permit shall necessitate initiation of a new application. Sec. 5-259. Violations. (a) It shall be an offense to operate a valet parking service within the city on a public street or right-of-way without an unexpired valet parking permit issued by the director. (b) It shall be an offense to operate a valet parking service within the city on a public street or right-of-way in a manner that is outside the scope of the valet parking permit or to commit any act or omission that violates the requirements section 5-263 of this article. (c) An offense under this section is a Class C misdemeanor, punishable by a fine not to exceed $500.00. (d) Citations may issue for the offenses described in subsections (a) and (b) of this section no more than once per day. Only one citation may issue per offense. Sec. 5-260. Fees. (a) The licensee must pay an annual fee of $500 for each approved application. (b) If the director determines that more than 2 spaces are necessary, the fee shall be $50 per additional space per year. (c) Nonprofit organizations shall be exempt from these fees. Documentation acceptable to the director showing the nonprofit status shall be submitted with the application. Sec. 5-261. Denial or revocation of valet parking permit; temporary suspension. (a) The director shall deny a valet parking permit if: (1) The applicant fails to comply with the requirements of this article or other applicable law; (2) The applicant makes a false statement of material fact or omission on an application for a valet parking permit; or (3) The director determines that the operation of the valet parking service would: a. Endanger the safety of persons or property or otherwise not be in the public interest; b. Unreasonably interfere with pedestrian or vehicular traffic; c. Unreasonably interfere with the use of a pole, traffic sign, traffic signal, hydrant, mailbox or other object permitted at or near the proposed location of the valet parking service; or d. Unreasonably interfere with an existing use or other license permitted at or near the proposed location of the valet parking service. (b) The director shall revoke a valet parking permit if: (1) The licensee fails to comply with the requirements of this article or other applicable law; (2) The licensee made a false statement or omission of material fact on an application for a valet parking permit; or (3) The director determines that the operation of the valet parking service: a. Endangers the safety of persons or property or is otherwise not in the public interest; b. Unreasonably interferes with pedestrian or vehicular traffic; c. Unreasonably interferes with the use of a pole, traffic sign, traffic signal, hydrant, mailbox, or other object permitted at or near the location of the valet parking service; or d. Unreasonably interferes with an existing use or other license permitted at or near the location of the valet parking service. (c) After receipt of notice of revocation, the permit holder shall immediately discontinue providing valet parking service using the public street or right-of-way. (d) The director may temporarily suspend the operations of a valet parking service if the public street or right-of-way reserved by the valet parking service or the utilities running thereon or thereunder are scheduled for construction, maintenance, or repair. (e) The police or fire chief, or their designated representatives, may temporarily suspend the operations of a valet parking service if the public street or right-of-way reserved by the valet parking service is needed for an emergency or temporary use. (f) If the director revokes, denies or suspends a permit, licensee shall receive written notice of his action, the reason for the revocation, denial or suspension and that the licensee has the right to appeal directors decision in accordance with section 5-626. The decision of the director is final unless a timely appeal is made. Sec. 5-262. Appeal of denial or revocation of a valet parking permit. (a) A person may appeal a denial, suspension or revocation of valet parking permit if he or she requests an appeal, in writing, and such request is received by the city manager not more than 10 days after notice of the action of the director is received by the applicant. (b) The city manager or his/her designated representative shall act as the appeals hearing officer in an appeal under this section. The hearing officer shall give the appealing party an opportunity to present evidence and make argument in his or her behalf. The formal rules of evidence shall not apply to an appeal hearing under this section, and the hearing officer shall make a ruling on the basis of a preponderance of the evidence presented at the hearing. (c) The hearing officer may affirm, modify or reverse all or part of the director’s action being appealed. The decision of the hearing officer is final. (d) All notices required under this article shall be in writing and sent via certified or registered mail, return receipt requested, through the United States Postal Service. Sec. 5-263. Standards for operation of a valet parking service. (a) A licensee shall: (1) Allow only employees and independent contractors who hold a valid Texas driver’s license, and who are covered by the insurance required by section 5-265 of this article, to operate any vehicle in connection with the valet parking service; (2) Require all persons engaged in the valet parking of vehicles to wear retroreflective safety vests or other retroreflective material while working during the nighttime hours; (3) Keep a copy of the valet parking permit readily available at the location where the valet parking service is being provided, and produce a copy of such permit upon the request of the director or any law enforcement officer. (4) Be responsible for the security of keys left with the operator by a customer and keep such keys in a secure location; (5) Place a valet parking tag inside each customer’s vehicle which shall include the following information which must be clearly legible from the outside of the vehicle: a. the name of the business or independent contractor providing the valet parking service; b. a telephone number that will allow the customer to contact the business or independent contractor providing the valet parking service during normal business hours with questions related to the valet parking service; (6) Place no more than 1 valet parking service stand on the public street or right-of-way; (7) Use only an off-street parking location to park a vehicle accepted for valet parking service; (8) Notify the director within 10 days of a change in the location of off-street parking and provide the director with a signed agreement or other documentation showing that the licensee has a legal right to park vehicles at the new location; and (9) Immediately inform a customer of a parking citation issued to the customer’s vehicle during the time the vehicle was parked by the business or independent contractor providing the valet parking service. (b) A licensee shall not: (1) Operate the valet parking service in a manner as to: a. Use or occupy more of the public right-of-way than is permitted by the valet parking permit; b. Obstruct a pedestrian’s use of a sidewalk; c. Obstruct a vehicle operator’s ability to see any part of an intersecting road; or d. Injure, damage, or create a hazard to persons or property; (2) Place or allow the placement of a sign advertising the valet parking service in the public street or right-of-way; except as provided for under section 5-263. (3) Park or allow the parking or standing of a vehicle in a valet parking service space; said space shall only be used for loading and unloading passengers. In no event shall a vehicle be allowed to remain in a valet parking service space for more than 5 minutes; (4) Double park a vehicle or park a vehicle on a public street or right-of-way except where authorized by the valet parking permit or park a vehicle on private property unless written authorization has been obtained from the owner or lessee of such property; and (5) Violate a law related to the operation or parking of motor vehicles. (c) Except for the authorized hours of operation of a valet parking service, spaces reserved by the valet parking service shall be available for use by the general public on a first- come, first served basis in accordance with posted signs and other traffic control devices, except where parking is restricted or prohibited. (d) A licensee may allow attended vehicles of the licensee’s customers to temporarily queue in the traffic lane adjacent to the designated drop-off area if the queuing does not: (1) cause traffic behind the queue to obstruct an intersection; (2) block public access to a business or residence; or (3) create a safety hazard. Sec. 5-263. Valet parking service stands. (a) A licensee may place 1 valet parking service stand on the public street or right-of-way at a location approved by the director. The valet parking service stand must be necessary to the general conduct of the valet parking service and shall be used for such purposes, including, but not limited to, the dispatch of valets and the storage of keys, umbrellas and other necessary items. (b) A valet parking service stand shall: (1) Not occupy an area of the public street or right-of-way exceeding 4 feet in width and 4 feet in depth; (2) Not be affixed to the public street or right-of-way in any manner; (3) Be removed from the public street or right-of-way when the valet parking service is not being operated; and (4) Not unreasonably interfere with pedestrian or vehicular traffic. (c) A name and/or logo may be placed on a valet parking service stand for the sole purpose of identifying the valet parking service. The identification of the valet parking service shall not have dimensions greater than 4 feet high and 4 feet wide. Sec. 5-264. Location of a valet parking service. (a) Spaces and stands for a valet parking service may not: (1) Be within 10 feet of a crosswalk; (2) Be within 10 feet of a fire hydrant, fire call box, police or other emergency facility; (3) Be within 5 feet of a driveway; (4) Be within 3 feet in front of or 15 feet behind a sign marking a designated bus stop; (5) Be within 5 feet of a bus bench; or (6) Reduce the unobstructed space for the passage of pedestrians to less than 4 feet. (b) The director may require greater distances than those prescribed in subsection (a) of this section when warranted by special vehicular or pedestrian traffic conditions. Sec. 5-265. Insurance. (a) A licensee shall procure, or cause to be procured, and keep in full force and effect, and shall keep on file with the director, a policy of garage liability and garage keepers liability insurance, as evidenced by a certificate of insurance issued by a casualty insurance company authorized to do business in this state and accepted by the risk management division of the finance department. The insured provisions of the policy must name the City of Southlake, and its employees and representatives, as additional insureds and the coverage provisions must insure the public from loss or damage that may arise to any person or property by reason of the operation of a valet parking service by the licensee. (b) The garage liability insurance shall provide liability for bodily injury and property damage resulting from the garage operations or operations of any auto whether or not owned by the insured and shall be in the minimum limit of $1,000,000.00; other than garage operations which shall be $1,000,000.00 per occurrence and an aggregate of $2,000,000.00. (c) In addition, the garage keepers insurance must provide a limit of liability for property damage of not less than $1,000,000.00 for vehicles in the care custody and control of the licensee. Maximum deductibles shall not exceed $1,000.00 per unit, $5,000.00 per loss comprehensive, and $1,000.00 for collision. (d) The insurance policy required by subsection (a) of this section shall contain an endorsement which provides for 10 days notice to the director in the event of any material change or cancellation of the policy. (e) Upon the director’s approval, an exception to the following requirements may be made if the exclusion of garage liability is waived and endorsed by the commercial general liability insurance policy to include garage operations. (f) This section does not preclude additional or more stringent requirements for valet parking services operated under a contract with the City. Sec. 5-266. Indemnification and hold harmless. A licensee, and any independent contractor used by the licensee, must execute a written agreement to indemnify and hold harmless the City of Southlake and its employees and representatives against all claims for injury or damage to persons or property arising out of the operation of the valet parking service by the licensee. Sec. 5-267. Signs and markings. The director, or his designated representative, is authorized to place city signs or curb markings at a location licensed for a valet parking service pursuant to this article. The signs and markings shall: (1) Indicate that the location is restricted for use by a valet parking service; and (2) State the days and hours of operation of the valet parking service; and (3) Include a tow away sign. Sec. 5-268. Transfer of Valet Parking Permit. A licensee may not transfer a valet parking permit to any other person or business without the written authorization of the director. The director may not approve a licensee’s request for authorization of a transfer of a valet parking permit unless the licensee can demonstrate that the transferee is willing and able to comply with all the requirements of this article. If the licensee fails to meet such burden, the director shall provide the licensee with a written notice of denial, stating the reason or reasons therefor. A director’s denial of a licensee’s request under this section is subject to appeal in accordance with section 5-262. The decision of the director is final unless a timely appeal is made. SECTION 2. CUMULATIVE This ordinance shall be cumulative of all provisions of ordinances of the City of Southlake, Texas except where the provisions of this ordinance are in direct conflict with the provisions of such ordinance, in which event the conflicting provisions of such ordinances are hereby repealed. SECTION 3. SEVERABILITY It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and section of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4. PENALTY Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than $500.00 for each offense. Each day that a violation is permitted to exist shall constitute a separate offense. SECTION 5. SAVINGS All rights and remedies of the City of Southlake are expressly saved as to any and all violations of the provision of any other ordinances regulating solicitation or canvassing activities that have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. SECTION 6. PUBLICATION The City Secretary of the City of Southlake is hereby directed to publish the proposed ordinance or its caption and penalty together with a notice sitting out the time and place for a public hearing thereon at least 10 days before the second reading of this ordinance, and if this ordinance provides for the imposition of any penalty, fine or forfeiture for any violation of any of its provisions, then the City Secretary shall additionally publish this ordinance or its caption and penalty in the official City newspaper one time within ten days after passage of this ordinance, as required by Section 3.13 of the Charter of the City of Southlake. SECTION 7. EFFECTIVE DATE This ordinance shall be in full force and effect from and after its passage and publication as required by law, and it is so ordained. PASSED AND APPROVED ON FIRST READING ON THIS ______ DAY OF __________________, 2007 . ___________________________________ MAYOR ATTEST: ___________________________________ CITY SECRETARY PASSED AND APPROVED ON SECOND READING ON THIS ______ DAY OF ____________________, 2007. ___________________________________ MAYOR ATTEST: ___________________________________ CITY SECRETARY EFFECTIVE: ____________________ APPROVED AS TO FORM AND LEGALITY: ________________________________________ City Attorney