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Council narrows valet fee proposal after heated testimony from hotels and valets
Summary
After extensive public comment about safety and cost, the City Council approved revised valet-zone fee levels that allow operators to buy additional spaces and set expanded-space fees at $7,500 (standard) and $10,000 (special-event zone) per space. Staff will report utilization data within 6–12 months.
The City Council on Nov. 4 amended and approved changes to valet zone policy that will allow new operators to purchase more curb spaces and impose a revised loss‑of‑revenue fee to compensate for metered parking removed from the public inventory.
Transportation staff proposed limits: a discounted rate for the first two valet spaces and a substantial fee for each added space to reflect lost meter revenue. Initial staff recommendations had set expanded-space fees at $10,000 outside special-event zones and $15,000 inside them. After a lengthy public hearing during which hotel general managers, valet operators and workers warned that the rules as initially proposed would create unsafe double‑parking and threaten jobs, Councilmember Whitburn moved to reduce those expanded-space fees to $7,500 and $10,000 respectively.
"When private for-profit businesses use [the curb], it’s fair they contribute to upkeep," Councilmember Ila Rivera said in debate; other council members stressed striking a balance between recovering public revenue and preserving safe operations for downtown hotels.
Industry speakers argued that reducing valet lane capacity to two spaces would force unsafe unloading into travel lanes and undermine guest safety. Jaden Moldown, a valet captain at the Marriott Gaslamp Quarter, told council that staging capacity dropping from eight cars to two would cause double-parking and back-ups near event times, endangering pedestrians and staff.
Transportation staff said the fee calculations assume full meter utilization because the permitted valet operator would control the curb space, preventing it from being used as paid parking. Staff and the Independent Budget Analyst projected revenue increases from the change, while acknowledging that utilization tracking would be needed to refine projections.
Council approved the amendment 7–1; Councilmember Elo Rivera cast the lone no vote and one member was absent. The amended rates allow existing operators to retain current spaces if they pay the renewal fee; new operators can demonstrate need to request up to six spaces. The council directed staff to report valet revenue and meter utilization data to the Transportation Department and IBA within six to twelve months to assess policy outcomes.
