Item No.
1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: JUDDY MONTENEGRO, INTERIM ASSISTANT TO THE CITY
MANAGER
DATE: SEPTEMBER 9, 2025
SUBJECT: APPROVAL OF A LICENSE AGREEMENT FOR A PILOT VALET
PARKING SERVICES PROGRAM IN DOWNTOWN DOWNEY
EXECUTIVE SUMMARY
The City Council will consider approving a License Agreement between the City of Downey and Herittage Holdings Inc., dba Supreme Parking Service, for a six-month pilot program for valet parking services in Downtown Downey. If approved, Supreme Parking Service will provide valet service on Fridays and Saturdays from 5:00 p.m. to 3:00 a.m., in the Downtown area. The purpose of this pilot program is to introduce and evaluate valet parking services in the Downtown, and determine whether it will be successful in serving customers and businesses in the area. The proposed service would utilize the top floor of the City’s downtown parking structure to store the parked vehicles.
RECOMMENDATION
That the City Council:
Approve the License Agreement between the City of Downey and Herittage Holdings Inc., dba Supreme Parking Service, for valet parking services in Downtown Downey for a period of six (6) months.
BACKGROUND
The City’s Downtown area continues to be a thriving destination, offering a diverse selection of dining and entertainment, community events, arts and culture, and family- friendly spaces that attracts not only locals, but many other visitors from throughout the region. Given the amount of people that visit Downtown Downey, particularly on the weekends, the Downtown Downey Improvement District (DDIA) had initiated a conversation regarding incorporating valet parking services in the Downtown due to the many potential benefits to both customers and businesses, including:
APPROVAL OF A LICENSE AGREEMENT FOR A PILOT PROGRAM FOR VALET PARKING
SERVICES IN DOWNTOWN DOWNEY
SEPTEMBER 9, 2025
PAGE 2
• Providing greater convenience and accessibility for customers who visit Downtown;
• Improving customer experience and retention that can lead to repeat business; • Alleviating parking congestion in the area;
• Attracting more visitors to the Downtown, leading to increased economic activity; and
• Providing a greater sense of safety and security for vehicle parking.
The DDIA had early discussions with Supreme Parking Service (SPS) to perform valet parking services in the Downtown. However, in order to provide valet parking services SPS would need to utilize City parking facilities. As such, City staff began researching the possibility of a valet parking program and the associated community benefits and risks.
After completing its analysis and working with the City Attorney, City Traffic Engineer, and Downey Police Department, City staff determined a limited pilot valet parking services program is needed to help assess public interest and other associated factors. As such, City staff began working with SPS on developing a proposed pilot program in the Downtown utilizing the 4th floor of the City’s parking structure located at the corner of 2nd Street and New Avenue. The goal of this short-term pilot program is to evaluate whether this a valuable and effective service for Downtown businesses and its customers. The program will also allow for any adjustments and improvements to be made during its temporary phase. In the event that the program does draw interest and help alleviate parking and traffic concerns in the area, staff will prepare a Request for Proposals (RFP) to solicit proposals.
ANALYSIS
Supreme Parking Service (SPS), a valet operating company, submitted a proposal to the City to provide valet parking services for the Downtown area following initial conversations with the DDIA. SPS has over 20 years of experience in providing valet parking services to agencies such as hotels, restaurants, and shopping centers. Most recently, it provided service in the City of Whittier’s Uptown area, and is currently in the process of obtaining a valet permit with the City of Los Angeles.
Vehicle Drop-off and Pick-up Area – Downey Avenue
SPS is proposing to provide valet service on Fridays and Saturdays from 5:00 p.m. to 3:00 a.m. For its staging area, SPS will be using the first five (5) parking stalls located directly in-front of 11045 Downey Avenue and 11039 Downey Avenue closest to 2nd Street. These parking stalls will serve as a temporary holding lane for valet vehicle processing and be the central vehicle drop-off and pick -up area for customers using valet service. SPS will be responsible for placing (and removing) “No Parking” signs 72 hours before for the five (5) parking stalls. SPS will also ensure this area is properly blocked off during valet service hours and will have designated valet staff directing traffic in and out of the drop-off/pick-up area.
APPROVAL OF A LICENSE AGREEMENT FOR A PILOT PROGRAM FOR VALET PARKING
SERVICES IN DOWNTOWN DOWNEY
SEPTEMBER 9, 2025
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The use of the five (5) parking spots was approved by the property owner as they felt a valet parking program is needed for the area and is supportive of the City’s pilot program to assess viability.
Vehicle Parking – Downtown Downey Parking Structure
SPS will be using the top level of the Downtown Downey Parking structure (4th level), located at the corner of 2nd Street and New Avenue, to park vehicles that utilize valet service. During service hours, SPS will have a parking attendant stationed at the top level for security purposes and will have staff responsible for closing off that area after hours to ensure there are no trespassers. SPS will also store their equipment (valet podium, key box and cones)) on the top-level at all times in between service days in its own secured storage bin, which will have its own security camera attached to it. The City will not be responsible or liable for this equipment. SPS will provide a storage camera that will run 24/7 and face the entrance to the top level to help deter and discourage trespassers.
Valet Parking Fee
SPS is proposing to charge $20 per vehicle, with an early bird discount of $10 between the hours of 5:00 p.m. – 8:00 p.m. on both Friday and Saturday.
License Fee
SPS will pay the City a monthly license fee of $1,000 for its use of the Downtown Parking Structure.
Downtown Business Outreach
City staff has been in communication with Downtown businesses, specifically those directly impacted on Downey Avenue, to inform them of the proposed valet services.
Letters were mailed out to all property owners located in the Downtown and no opposition has been received.
As stated in the attached license agreement, there is a 45-day review period in which the City and SPS will evaluate any safety and traffic concerns that may arise. If any concerns identified before or within the 45-day period, SPS agrees to work with the City to immediately make any modifications to its operations.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Economic Vibrancy
Efficiency & Adaptability
Quality of Life, Safety & Infrastructure
APPROVAL OF A LICENSE AGREEMENT FOR A PILOT PROGRAM FOR VALET PARKING
SERVICES IN DOWNTOWN DOWNEY
SEPTEMBER 9, 2025
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Public Engagement
FISCAL IMPACT
Approval of the recommended action will result in a revenue increase in the amount of $6,000 within the General Fund, Revenue Account No. 10-3-2217.
ATTACHMENT
Attachment A: License Agreement between the City of Downey and Herittage Holdings, Inc., dba Supreme Parking Service
Attachment B: Proposal from Herittage Holdings, Inc., dba Supreme Parking Service
LICENSE AGREEMENT BY AND BETWEEN THE CITY OF DOWNEY
AND HERITTAGE HOLDINGS, INC., dba SUPREME PARKING
SERVICE FOR PILOT DOWNTOWN VALET PARKING PROGRAM
This LICENSE AGREEMENT (“Agreement”) by and between the City of Downey, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”), and Herittage Holdings, Inc., a California corporation doing business as Supreme Parking Service (“Licensee”), is made and entered into on September 9, 2025 (“Effective Date”). Licensee and City are sometimes individually referred to as “Party” and collectively as “Parties.”
RECITALS
A. The City is the owner of that certain real property located in the City of Downey, County of Los Angeles, California, more specifically identified as Downtown Public Parking Structure (AIN 6254-008-901), and certain nearby public right -of-way, all as described on Exhibit A (“Property”).
B. Licensee desires the use of and access to a portion of the Property for the purpose of providing a pilot valet parking service for the Downtown Downey area, as depicted on Exhibit B (“License Area”). City desires to allow Licensee the use of and access to the Property at prescribed times for this purpose alone, as further described in Exhibit C (“Permitted Uses”).
C. Licensee is a professional valet parking company with over forty years of cumulative management experience in parking service.
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter contained and for good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:
1. GRANT OF EXCLUSIVE LICENSE
1.1 Grant of Exclusive License. The City hereby grants to Licensee an exclusive license for the right to enter and use the License Area beginning on the Effective Date, for the Permitted Uses described in Exhibit C, upon the terms and conditions set forth herein (“License”), subject to Licensee’s performance of all of its obligations under this Agreement.
1.2 License Agreement Only. This Agreement is intended and shall be construed only as a revocable license to use the License Area and not as a lease or grant of any possessory or other interest.
1.3 Restrictions on Use of Property. Licensee shall not use, and shall prohibit its Agents or Invitees from using, the License Area other than for the Permitted Uses. The term
ATTACHMENT A
“Agents” shall mean Licensee’s officers, directors, members, agents, employees, invitees, contractors, subcontractors, and any employees of such parties. The term “Invitees” shall mean Licensee’s invitees, guests, customers, or business visitors.
2. LICENSE FEE AND TERM
2.1 License Fee. As consideration for its use of the Property, Licensee agrees to pay to City $1,000.00 per month for the term of this Agreement. License fees for any partial month shall be pro-rated. Payment shall be made payable to the City of Downey, in advance for each month, no later than the 10th of the prior month, at the following address: 11111 Brookshire Ave, Downey, CA 90241. A late charge of ten percent (10%) shall be applied to any payment hereunder due but unpaid after the 10th of the month.
2.2 Term and Revocation of License. The term of this Agreement shall commence on the Effective Date and continue through March 9, 2026. City may revoke this License at any time by providing thirty days’ written notice to Licensee. Subject to City’s sole consent, Licensee shall have the option to extend this License upon the same covenants and conditions for an additional six (6) months upon serving written notice to City not less than sixty (60) days prior to the date of expiration of this License provided that Licensee is not in default of any provision of this License.
City reserves the right to increase the license fee and/or impose any additional terms to this License as a condition of any extension periods exercised by the Licensee under this section.
3. WARRANTIES AND ASSIGNMENT
3.1 AS-IS Condition. City makes no representation or warranty of any kind as to the condition of the License Area or any other matter relating to Licensee’s use of the License Area.
Licensee hereby disclaims and waives any and all objections to the physical and other characteristics and conditions of the License Area. Licensee acknowledges and agrees that the use of the License Area will be on the basis of Licensee’s own investigation of the condition of the License Area. The license to use the License Area is granted on an “AS-IS,” “WITH ALL FAULTS” basis, without representation or warranty expressed or implied by City, or by operation of law. City expressly disclaims, which Licensee hereby acknowledges and accepts, any implied warranty of condition or fitness for a particular purpose or use. Licensee’s use of the License Area shall be subject to the License Area being in a usable and safe condition at the time of Licensee’s use, and Licensee shall be solely responsible for determining whether the License Area is in such condition. In connection therewith, in the event that the License Area or access thereto is damaged or obstructed, or the use by Licensee is otherwise impaired, prevented or limited, City shall have no obligation or duty to repair the damage or rectify the condition to make the License Area usable or safe.
3.2 No Assignment or Sublicense. The permission, rights and privileges granted under this Agreement are nonexclusive and nontransferable. Licensee shall not, either voluntarily or by operation of law, assign, transfer, mortgage or encumber this License or any obligation, right, title or interest assumed by Licensee herein, without the prior written consent of the City, which may be withheld at the sole discretion of the City. Licensee shall not sublicense, or permit, or suffer the License Area or any part thereof to be used or occupied by others. If Licensee attempts an
assignment or transfer of this License or any obligation, right, title or interest herein, City may at its option, immediately terminate the License and shall thereupon be relieved from any and all obligations to Licensee or to its attempted assignee or transferee.
4. INDEMNITY AND INSURANCE
4.1 Indemnification. Licensee shall indemnify, defend, and hold harmless City, and its respective agents, officers, representatives, employees, subsidiaries and affiliates (“Covered Parties”) from and against any and all actions, suits, claims, demands, judgments, losses, expenses, or liabilities, injuries and damages to persons and property, including death, arising out of or related to Licensee’s use of the License Area, the entry by any Licensee Party on any portion of the License Area or surrounding property or Facilities, or Licensee’s breach or default in the performance of any of its obligations under this Agreement. If any action or proceeding is brought against any Covered Party by reason of any such claim, Licensee, upon receipt of written notice from Covered Party, shall defend the same at Licensee’s sole expense with legal counsel acceptable to Covered Party. Payment shall not be a condition precedent to recovery under any indemnification in this Agreement, and a finding of liability or an obligation to indemnify shall not be a condition precedent to the duty to defend. The provisions of this Section 4.1 shall survive the termination or expiration of this Agreement.
4.2 Insurance Requirements.
4.2.1 Licensee shall maintain commercial general liability insurance which shall include, but not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Licensee’s use of the Property, including, without limitation, acts involving vehicles.
The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $2,000,000 per occurrence and $5,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions.
4.2.2 Licensee shall maintain business automobile liability insurance, or equivalent form, with a combined single limit of not less than $5,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.
4.2.3 Pursuant to state law, Licensee is required to be insured against liability for worker’s compensation or to undertake self-insurance. Prior to commencing the performance of services under this Agreement, Licensee agrees to obtain and maintain any employer ’s liability insurance with limits not less than $1,000,000 per accident.
4.2.4 The Licensee shall procure and maintain throughout the term of this Agreement and any extensions thereof, Garagekeepers Legal Liability Insurance covering Licensee’s liability for damage to customer's vehicles while in Licensee's care, custody, or control. Such insurance shall include coverage for perils such as fire, explosion, theft, riot,
civil commotion, vandalism, malicious mischief, and collision. The Garagekeepers Legal Liability Insurance shall be maintained with limits not less than $1,000,000.00 per occurrence, covering the replacement value of vehicles in Licensee’s care, custody, or control. The Licensee shall provide evidence of such insurance, including the limits of liability, by furnishing a Certificate of Insurance to City prior to commencing any work under this Agreement. Customer shall be named as an additional insured on the Garagekeepers Legal Liability Insurance policy, and the policy shall include a waiver of subrogation in favor of City.
4.3. Certificates of Insurance; Additional Insured Endorsements. Prior to execution of this Agreement, Licensee shall furnish to City certificates of insurance and, if applicable, additional insured endorsements to each of Licensee’s insurance policies, evidencing the foregoing insurance coverages as required by this Agreement. These certificates shall:
a. provide the name and policy number of each carrier and policy; b. shall state that the policy is currently in force; and c. shall promise to provide that such policies will not be canceled, suspended, voided, reduced in coverage or in limits, or modified without thirty (30) days p rior written notice of City.
Licensee shall maintain the foregoing insurance coverages in force throughout the term of this Agreement. City or its representatives shall at all times have the right to demand the original or a copy of all these policies of insurance, which Licensee shall provide within five (5) days of City’s request.
5. OBLIGATIONS OF LICENSEE
5.1 Agreement to Protect and Maintain Property. Licensee, on behalf of its Agents and Invitees, agrees to take all prudent action to protect the License Area from any damage or injury caused by the exercise of this License. Licensee shall immediately notify City of any damage or injury to the License Area caused by its use of the License Area.
5.2 City’s Right of Suspension, Termination for Noncompliance. City reserves the right to suspend all activities or terminate this Agreement upon Licensee’ non-compliance with any of the terms or conditions of this Agreement. Such suspension or termination shall be effective immediately.
5.3 Compliance with Laws; Regulatory Approvals. Licensee shall, at its sole expense, conduct and cause to be conducted all activities on the License Area in compliance with all laws, regulations, codes, ordinances and orders of any governmental or other regulatory entity, and whether or not in the contemplation of the parties.
5.4 Approvals and Permits. Licensee shall be responsible for obtaining all approvals, licenses, permits and permissions of Federal, State and local authorities, which may be necessary
to implement Licensee’s activities on the License Area. Licensee agrees and acknowledges that nothing herein is intended, nor shall it be interpreted, to bind the City to issue or grant any permits or entitlements needed to perform any work or improvements specified in this Agreement.
5.5 Environmental Compliance. Licensee shall not permit any dangerous condition or waste to be created on the Property. Licensee shall at all times be in compliance with all federal, state and local statutory and regulatory requirements, including but not limited to the US EPA, Cal EPA, State Water Resources Control Board, Department of Toxic Substances Control and South Coast Air Quality Management District, as applicable.
5.6 Improvements. Licensee shall not install or make any improvements to the Property or License Area, except as provided herein, without the written approval of the City. The Licensee agrees that prior to commencing any approved improvements, it will obtain plan approval from the City’s Planning and Building Agency, and that it will obtain all required permits and inspections. Licensee shall be solely responsible for all costs of the installation, operation, maintenance, repair and removal of any approved improvements on the License Area.
5.7 Maintenance. Licensee shall maintain the License Area in a neat, clean, sanitary and safe condition, to the satisfaction of the City, at the sole cost and expense of the Licensee. The License Area shall be maintained in a manner consistent with this Agreement, the Downey Municipal Code, and all other applicable local, state and federal rules, regulations and standards.
5.8 No Liens. Licensee shall not permit any mechanics’, materialmen’s or other liens of any kind or nature (“Liens”) to be filed or enforced against the License Area in connection with this Agreement. Licensee shall indemnify, defend and hold harmless City from all liability for any and all liens, claims and demands, together with costs of defense and reasonable attorneys’ fees, arising from any Liens. City reserves the right, at its sole cost and expense, at any time and from time to time, to post and maintain on the License Area, or any portion thereof, or on the improvements on the License Area, any notices of non-responsibility or other notice as may be desirable to protect City against liability. In addition to, and not as a limitation of City’s other rights and remedies under this Agreement, should Licensee fail, within ten (10) days of written request from City, either to discharge any Lien or to bond for any Lien, or to defend, indemnify and hold harmless City from and against any loss, damage, injury, liability or claim arising out of a Lien, then City, at its option, may elect to pay such Lien, or settle or discharge such Lien and any action or judgment related thereto and all costs, expenses and attorneys’ fees incurred in doing so shall be paid to City, as applicable, by Licensee upon written demand.
5.9 No Reimbursement or Repayment. Licensee shall not have any interest in the License Area other than those granted herein or be entitled to any reimbursement or repayment for any work performed upon the License Area pursuant to this Agreement. City shall not be held responsible for loss of or damage to, any personal property left on the License Area, or improvements made by Licensee on the License Area.
5.10 No Recording. Licensee shall not record or attempt to record this Agreement. Any attempt by Licensee to record this Agreement shall automatically terminate this License Agreement and render this License void and invalid for all purposes.
5.11 Restoration and Clean Up. At its sole cost, Licensee shall, at the expiration or earlier termination of this Agreement, restore the License Area to its original condition in which it existed immediately prior to the Agreement, leave the License Area in a neat and clean condition to the sole satisfaction of City, free of trash and debris, and remove all property and materials of Licensee.
5.12 Possessory Interest. Licensee hereby recognizes and understands that this License Agreement may create a possessory interest subject to property taxation and that Licensee may be subject to the payment of property taxes levied on such interest. Any such imposition of a possessory interest tax shall be a tax liability of Licensee solely, and shal l be paid for by the Licensee; and any such tax payment shall not reduce any payments due City hereunder. In addition, Licensee shall pay any personal property taxes that may become due for equipment fixtures, inventory, or other personal property installed, maintained or present on the License Area.
5.13 Review Period. Licensees’s activities under this License shall be subject to review by the City within 45 days of the effective date of this License, including without limitation traffic impacts or any other safety concerns. If Licensee’s operations are found in the City’s sole discretion to require modification as a result, Licensee agrees to make such modifications at its sole expense. City reserves the right to conduct this type of review at periodic intervals or whenever reasonably necessary, and Licensee agrees to make any necessary changes to its operations as a result during the term of this License. Notwithstanding the foregoing, if any safety concerns are identified by the City in its sole discretion within 45 days of the effective date of this License, Licensee agrees to immediately modify its operations at its sole expense and in a sufficient manner.
5.14 Background Checks for Employees. Licensee represents and warrants that it has conducted, or engaged an independent entity to conduct, a background check of all employees, agents, independent contractors, volunteers, or other individuals who are performing services under this Agreement. The background check shall include at a minimum a state and county criminal history investigation where such individual resides and a search of the national and California state sex offender registries. Proof of the background check required under this section shall be provided to City upon request. To the extent permitted by applicable state and federal law, Licensee shall not permit individuals with a criminal history to perform services under this Agreement.
6. MISCELLANEOUS TERMS
6.1 Notices, Demands and Communications between the Parties.
6.1.1 Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons:
TO LICENSEE: TO CITY:
Herittage Holding, Inc. dba
Supreme Parking Service
3680 Wilshire Blvd Suite T11
Los Angeles, CA 90001
Attn: Itzel Soria
City of Downey
11111 Brookshire Avenue
Downey, CA 90241
Attention: City Manager
AND
City of Downey
City Clerk
[Same address as above]
6.1.2 A party may change its address by giving notice in writing to the other party.
Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded.
6.2 Amendment. This Agreement may be amended only by the mutual consent of the Parties by an instrument in writing signed by both Parties.
6.3 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement.
6.4 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
6.5 Time of the Essence. For each provision of this Agreement which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed of the essence.
6.6 Governing Law and Venue. This Agreement shall be governed by the laws of the State of California without regard to conflicts of laws principles. Any litigatio n or other legal proceedings which arise under or in connection with this Agreement shall be conducted in a federal or state court located within Los Angeles County, California. The Parties consent to the personal jurisdiction and venue in federal or state court located within the County of Los Angeles and
hereby waive any defenses or objections thereto, including defenses based on the doctrine of forum non conveniens.
6.7 Litigation Expenses. If either party to this Agreement commences an action against the other party to this Agreement arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees, expert witness fees, costs of investigation, and costs of suit from the losing party.
6.8 References; Captions. Any term referencing time, days or period for performance shall be deemed calendar days and not work days, except as otherwise specified in this Agreement.
All references to City include all officials, officers, employees, personnel, and agents of City, except as otherwise specified in this Agreement. All references to Licensee include its officials, officers, employees, personnel, agents, volunteers, contractors and subcontractors, except as otherwise specified in this Agreement. The captions of the various articles and paragraphs in this Agreement are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
6.9 Waiver. No delay or omission in the exercise of any right or remedy of a non- defaulting Party on any default shall impair such right or remedy or be construed as a waiver.
Either Parties’ consent or approval of any act by the other Party requiring its consent or approval shall not be deemed to waive or render unnecessary its consent to or approval of any subsequent act of the other Party. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
6.10 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. All warranties and promises to indemnify shall survive the termination, abandonment, or completion of this Agreement.
6.11 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder.
6.12 Authorized Representatives. The person or persons executing this Agreement on behalf Licensee and City warrants and represents that he/she has the authority to execute this Agreement on behalf of that Party and that he/she has the authority to bind that Party to the performance of its obligations hereunder.
6.13 Entire Agreement. This Agreement constitutes the entire and integrated agreement of Licensee and City with respect to the subject matter hereof and supersedes any and all prior and contemporaneous oral or written negotiations, representations or agreements.
EXHIBIT A
PROPERTY DESCRIPTION
Valet Vehicle Parking:
Downtown Downey Public Parking Structure (Top Level only) Address: 8201 Second Street, Downey, CA 90241
Located at the corner of New Street and Second Street, in Downtown Downey AIN: 6254-008-901
Vehicle Drop-off and Pick-up Area – Downey Avenue
First five (5) parking stalls located directly in-front of the former Bastards Canteen (11045 Downey Avenue) and Peking China restaurants (11039 Downey Avenue), on Downey Avenue, closest to Second Street.
EXHIBIT B
LICENSE AREA
EXHIBIT C
PERMITTED USES
Vehicle Drop-off and Pick-up Area – Downey Avenue
Herittage Holdings, Inc., dba Supreme Parking Service (SPS), will provide valet service on Fridays and Saturdays from 5:00 p.m. to 3:00 a.m. For its staging area, SPS will use the first five (5) parking stalls located directly in-front of the former Bastards Canteen and Peking China restaurants (on Downey Avenue, closest to 2nd Street). These parking stalls will serve as a temporary holding lane for valet vehicle processing and be the central vehicle drop-off and pick - up area for customers using valet service. SPS will be responsible for placing (and removing) “No Parking” signs 72 hours before for the five (5) parking stalls. SPS will also ensure this area is properly blocked off during valet service hours and will have designated valet staff directing traffic in and out of the drop-off/pick-up area.
Vehicle Parking – Downtown Downey Parking Structure
Additionally, SPS will use the top level of the Downtown Downey Parking structure, located at the corner of 2nd Street and New Avenue, to park vehicles that utilize valet service. During service hours, SPS will have a parking attendant stationed at the top level for security purposes and will have staff responsible for closing off that area after hours to ensure there are no trespassers. SPS shall be permitted to store its equipment (valet podium, key box, cones, or similar equipment) on the top-level at all times in between service days in its own secured storage bin, which will have its own security camera attached to it. The City shall not be responsible or liable for this equipment under any circumstances. SPS shall have its storage camera run 24/7 and face the entrance to the top level to help deter and discourage trespassers.
SPS shall charge $20 per vehicle, with an early bird discount of $10 between the hours of 5:00 p.m. – 8:00 p.m. on both Friday and Saturday.
Downtown Downey
Dear Downey City Council Members,
Supreme Parking Service is pleased to present a comprehensive valet parking solution for Downtown Downey, designed to support the vibrant corridor of businesses along Downey Avenue. This proposal outlines our plan to streamline parking access, alleviate traffic congestion, and enhance the overall customer experience through a full-service valet operation.
Our company has been providing similar and more advanced Valet services for over 24 years for private agencies such as Hotels, Office Buildings, Restaurants and Shopping Centers.
We bring to the table over 40 years of cumulative management experience in the Parking service, a strong corporate leadership and an innovative style of management that makes us a force in the Parking Service Industry.
We understand the operation, the importance of safety, professionalism, and overall customer satisfaction for this operation.
Our company focuses on our expertise, experience, and our commitment to qualified attendants, proficient scheduling, premier training programs, innovations, creativity and vision to offer the most effective and efficient system possible to fit your needs. We strongly believe that the resources, programs, plans and strategies listed in our proposal demonstrate our understanding of the contractual undertaking and what it takes to operate this service successfully.
We look forward to your positive response and the opportunity to present our proposal and address any questions you may have.
If you have any questions, do not hesitate to contact me at (562)745-7531.
Sincerely,
Itzel Soria, LLB
1 ATTACHMENT B
Downtown Downey
Table of Contents
Supreme Parking Experience and Management …………….……. 3
Location & Scope of Service …………………..……..…….……… 4
Traffic & Vehicle Flow.……………….……………………………… 5
Financial Summary…..……………….……………………………… 7
Operational Standards.……………….……………………………… 12
Exhibit A……………....……………….……………………………… 21
Exhibit B……………….……………….…………………………...… 22
2 Downtown Downey
SUPREME PARKING EXPERIENCE AND MANAGEMENT
EXECUTIVE SUMMARY
Supreme Parking Service secured these contracts because of the expertise and leadership provided by employees. This staff possesses the appropriate expertise, establishes policy, systematizes procedures, and implements Quality Control guidelines to ensure the most efficient continuity of operations in the parking and transportation industries. The firm provides expertise in every component of the parking service business. The parking operations encompass:
➢ Surface, attendant, valet, and private special event parking. ➢ Metered, controlled, and permit parking
➢ Recreational, sporting, concert, state/county event parking ➢ Institutional parking (e.g., court, hospital, education, bank) In 2000 Supreme Parking Service established a Valet Parking Services subdivision within their Parking Management Division. Operating primarily in Los Angeles and Orange County, the valet services of Supreme Parking appear at large-scale special events, upscale restaurants, nightclubs, shopping malls, and private residential parties. The subdivision prides itself on providing first-class professional service, focusing on customer satisfaction through the prompt and safe handling of every vehicle entrusted to it.
Supreme Parking maintains the ability and the resources to fulfill and exceed all requirements for parking and transportation services.
Supreme Parking adopts a simple management philosophy: to become an extension of the organizations we serve by constant communication with our customers. The management of Supreme Parking understands implicitly the importance of knowing your customers' needs, of working hard to resolve problems properly, and of improving service as time goes on.
3 Downtown Downey
LOCATION & SCOPE OF SERVICE
Service Area:
The valet operation will service all businesses located along the Downtown Downey strip Friday-Saturday from 5:00pm-3:00am, primarily those along Downey Avenue between 2nd Street and 3rd Street.
● Valet Podium Location:
Positioned at the corner of Downey Ave and 2nd Street, directly in front of Bastards Canteen inside of parking stall #1, this location will serve as the central vehicle drop-off and pick-up point.
● Street Parking Use:
We will utilize five (5) angled street parking spaces (Exhibit B) along the southwest side of Downey Ave, directly in front of Bastards Canteen and LKSD, as a temporary holding lane for valet vehicle processing.
Staffing Plan:
● Personnel Required:
○ 7 Valet Attendants total per shift.
■ 1 stationed at the podium for customer intake and key logging. ■ 1 traffic controller at the street-parking zone.
■ 1 traffic controller at the parking structure.
■ 4 runners rotating between drop-off/pick-up.
○ ALL staff will be uniformed, trained in hospitality and traffic safety, and fully insured.
Fixed Equipment:
● Valet Podium
○ Black podium with built-in LED sign
○ Dimensions: 23″ x 36″ x 44″ – 160Lbs
○ Attached Solar Powered Security Camera
● Key Box
● 10 White-refelective delineator posts
○ 10 Traffic directing arrows (attached to delineator posts) ● 5 “No Parking from 5:00pm-2:00am Friday-Sunday” signs. ● 4 “DO NOT ENTER” flat cones.
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TRAFFIC & VEHICLE FLOW
Downey Public Parking Structure Top-Floor Drop-off
Point (Exhibit A)
Supreme Parking will reserve the whole top-level of the Downey Parking structure located on New Street, from 5:00pm - 2:00am Friday-Saturday. This route has an approximate travel time of 5 minutes each way, and will require an additional parking attendant to direct traffic within the parking structure.
Arrival:
1. Guests approach the valet stand from Downey Ave., facing Firestone Boulevard.
2. Vehicles are off-loaded within the 5 designated angled parking spaces (off the main flow of traffic). (Exhibit B)
3. A valet attendant drives the vehicle westbound on Downey Ave, then makes a right on 2nd Street to reach and make a right on New Street, then turning left into the Parking Structure.
Departure:
1. When the guest requests their vehicle, a runner retrieves it from the Parking structure on New St.
2. The return route upon exiting the Parking structure is through New Street, traveling eastbound and then making a right on 3rd Street and then a right on Downey Avenue.
3. The vehicle is returned to the customer at the same valet stand at 2nd Street & Downey Avenue.
This return route was intentionally selected to ensure that guests exit Downtown Downey via a main commercial corridor rather than cutting through residential neighborhoods. This approach reduces traffic disturbances 5 Downtown Downey
in surrounding communities, supports continued patronage of local businesses, and maintains the integrity and peace of nearby residential streets.
Benefits to the Community
● Maintains safety and integrity of the parking structure’s top-levels. Keep trespassers and vandalizers out of the upper floors.
● Eases congestion and improves parking turnover
● Boosts local business foot traffic
● Presents a polished, organized downtown visitor experience
● Increases accessibility to all restaurants, boutiques, and shops in the area
● Flexible routing minimizes disruption to public parking inventory
Additional Notes
● Parking Structure Security: During our service hours, there will always be a parking attendant stationed at the top-level of the parking structure. After hours we will be chaining off the upper level of the parking structure securing it from trespassers. Additionally, because our equipment will be stored on the top-level, there will be the added benefit of a security camera which is part of our valet podium set-up.
● Insurance & Permits: Fully insured for valet operations. Will secure all applicable city permits for right-of-way use and parking access.
● Technology Options: We count with digital valet systems allowing remote retrieval requests.
● Security: Keys will be secured in lockboxes, and all lots will be monitored by staff.
6 Downtown Downey
FINANCIAL SUMMARY
Supreme Parking Service proposes a competitive and community-conscious pricing structure designed to encourage valet usage during peak hours while offering accessible rates to early guests and key community groups.
Standard Pricing Schedule:
Time Period Rate per Vehicle Notes
5:00 PM – 7:59 PM $10.00 Early Bird Special
8:00 PM – 3:00 AM $20.00 Standard Evening Rate
Estimated Capacity & Revenue (Sample Projections):
Assumed Volume Early Rate
($10)
Standard Rate
($20) Total Revenue
30 cars (early) + 70 cars
(late) $300.00 $1,400.00 $1,700.00/night
Note: Actual revenue will depend on day of the week, and community engagement. Prices are inclusive of staffing, liability insurance, directional signage, key security, and traffic management.
Monthly Revenue Projections
Time Period Vehicles/Month Monthly Revenue
Early Bird 240 $2,400
Standard Evening 560 $11,200
Total 800 $13,600
7 Downtown Downey
Monthly Fixed Costs
Expense Category Monthly Cost
Insurance $800
Permit/Encroachment (annual $288 ÷ 12) $24
Misc. Supplies $150
Total Fixed Costs $974
Monthly Variable Costs
Expense Category Basis of Estimate Monthly
Cost
Labor – Valet Attendants 7 attendants × $18/hr × 9 hrs × 8 nights
$9,072
Payroll Taxes & Benefits
(12%)
12% of $9,072 $1,089
Total Variable Costs — $10,161
Total Monthly Costs: $11,135
8 Downtown Downey
Break-even Analysis
● Average Ticket Price: $17
● Service Nights per month: 8
How many
vehicles/month to break
even?
$11,135/$17= ~655 cars/month
How many vehicles/night
to break even? 655/8= ~82 cars/night
Seasonal Projections
Season Revenue Net Profit (Revenue –
$11,135$)
Low (15% ↓) $11,560 $425
Base $13,600 $2,465
High (20% ↑) $16,320 $5,185
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Parking Structure Lease Fee
Based on the above projections we have come up with a few options, to justly compensate the City of Downey for the use of the top-level parking structure.
Option 1 – Shared Profit Agreement (60/40 Split)
● Structure: After covering all operational costs, net profit is split:
○ 60% to Supreme Parking
○ 40% to City
● Base Month Estimate:
○ Profit: $2,465 → City share: $986 / Your share: $1,479 ● High Season Estimate:
○ Profit: $5,185 → City share: $2,074 / Your share: $3,111 ● Low Season Estimate:
○ Profit: $425 → City share: $170 / Your share: $255
● Pros: Scales with actual performance; City benefits from high-season volume.
● Cons: Lower guaranteed income for the City in slower months.
Option 2 – Fixed Lease ($1,000/Month)
● Structure: City receives a flat $1,000 monthly lease fee regardless of revenue.
● Base Month Estimate:
○ Profit after lease: $2,465 – $1,000 = $1,465
● High Season Estimate:
○ Profit after lease: $5,185 – $1,000 = $4,185
● Low Season Estimate:
○ Profit after lease: $425 – $1,000 = - $575 (loss in slowest months)
● Pros: Predictable revenue for the City; simple to administer. ● Cons: Increases risk for operator during low season.
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Option 3 – Percentage Lease with Base Rent ($300 Base + 30% of Profit)
● Structure: City receives a guaranteed $300/month base rent plus 25% of monthly net profit.
● Base Month Estimate:
○ Profit: $2,465 → City share: $300 + ($2,465 × 0.25) = $916.25 ● High Season Estimate:
○ Profit: $5,185 → City share: $300 + ($5,185 × 0.25) = $1,596.25 ● Low Season Estimate:
○ Profit: $425 → City share: $300 + ($425 × 0.25) = $406.25
● Pros: Provides City with a minimum guaranteed income and the potential for higher returns in busy months.
● Cons: Less predictable than a fixed lease, but more stable than pure profit-sharing.
11 Downtown Downey
OPERATIONAL STANDARDS
Equipment- Valet Parking Controls
Supreme Parking will record all Entry tickets at entry as well as at exit, in addition to all reporting, Supreme Parking will recommend any additional parking equipment necessary to ensure safety and revenue collection. ● Supreme Parking will use a digital assistant to check-in vehicles for arriving and departing patrons.
● At arrival, a guest will direct and greet a customer, they will instruct the customer with directions and parking fee. Upon approval, the customer ’s ticket will be logged into our system, and they will be handed a claim ticket with a QR code, for remote vehicle retrieval.
Program automation allows for cloud based, real time, provider and customer access to all program data. We analyze program data to ensure compliance and audit revenue. At an additional cost we could implement this system in your operation as well.
The Technology
We will provide a valet digital assistant for digital retrieval requests. We work with CorePark AI to offer the most up to date technology available in the industry to improve service delivery, efficiency and transparency. CorePark is an application based on a valet parking software system that captures data on mobile devices utilized by our front-end valet leaders. CorePark includes but is not limited to:
● Point of sale revenue collection
● Real-time program activity and revenue reports
● Accounting Audit Reports
● Mobile vehicle retrieval
● Automated service survey
12 Downtown Downey
Valet Attendant Staff
Supreme Parking proposes Valet Parking attendants assist all arriving patrons and direct accordingly. Staff will practice all customer service behaviors while on property. Valet attendant will check in/out with the property manager and will inspect the garage for any vehicles left in the garage at closing. Any irregular activities will be recorded and reported to management as instructed. ● All staff are trained to lift bags up to 55 lbs.
● Staff will assist customers with instructions and directions.
Revenue Collected
Supreme Parking will collect revenue and create a report per station and shift. All information collected will be used as a reference for future analysis.
Communication
We Understand that communication is fundamental to reach guest satisfaction goals.
We will suggest the latest technology for guests to request their vehicle in advance in order to expedite their departure and enhance the overall experience. ● Every station will use a two-way form of communication. ● If necessary and approved by management, radio communication will be on the same frequency with its dedicated channel.
CUSTOMER SERVICES AND PROFESSIONAL CONDUCT
Parking is a service business. SPS insists on courtesy and professionalism from all employees who provide parking service. We behave courteously and professionally with everyone we encounter during business operations.
Each customer who interacts with the Company is left with a feeling about our company. Their feelings and impressions will relate directly to their experience with each employee. Our employees are the Company to our customers. This is what makes the work employees do both challenging and rewarding.
Employees provide a service that meets our customer's expectations and satisfies their needs so that they will have a positive experience and will continue to use this facility and the many others we operate. The next several pages explore the key factors in providing superior customer service.
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PROVIDING EXCELLENT SERVICE
Customers are demanding. They often expect you to know what they want without telling you, and many will be disappointed when you don't. As service professionals, we already know many of the customers' expectations. However, one may want to ask: ”What do my customers want from me?" Courtesy, good manners, civility, and prompt service are obvious answers. Other important aspects of the service given are the way Attendants dress, the way they move, the way they speak, the way they make eye contact, listen and respond. Even the way employees act when they are not taking care of customers, but are still within their view, creates part of the image customers have of employees and Supreme Parking Services All Actions must project to customers -- as if they were told directly -- "I know what you need, and I will take care of you."
➢ Responsiveness
➢ Courtesy
➢ Understanding
➢ Presentation
Our goals are to provide what is promised, to be dependable and accurate, and to assist customers in a timely manner. Attendants and Managers offer help routinely when a customer looks puzzled or has questions. They remain polite, confident, and knowledgeable. If they do not have answers to a customer's question, someone who does is contacted as soon as possible. Attendants and managers are sensitive and caring when solving a problem or answering questions. They make their work area presentable in every detail. Cleanliness and neatness communicate capability and quality.
The following summarizes the extensive range of service this company offers:
● Outstanding customer relations and service
● Professional and courteous demeanor at all times.
● Effective communication with management, guests, colleagues, and the general public.
● Customer assistance with loading and unloading baggage ● Assisting handicapped individuals to enter and exit vehicles providing directions to any destination.
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CUSTOMER EXPECTATIONS
The Parking Supervisor is responsible for ensuring the safety of customers and personnel and the safekeeping of customer vehicles and their contents. Parking supervisors implement the operational plan for total parking management efficiency, monitor the activities of Attendants and Cashiers, maintain the facility's cleanliness, and enforce customer service standards. They perform all Revenue Control procedures, carry out the duties of Attendants if they are absent, schedule the staff, and perform a variety of administrative functions (e.g., completing daily log reports, maintaining files, submitting ticket receipts to Supreme parking Services accounting, etc.). They also perform other duties at the request of the Parking Manager or the contracting authority's representative. Supervisors remain available at all times during and after hours by pager.
PARKING SUPERVISOR
The performance goals of a Parking Supervisor are to achieve the highest level of Attendant and Cashier efficiency, to enforce parking efficiency at all times, and to ensure the accuracy of financial reporting.
VALET ATTENDANT
Every SPS Valet Parking Attendant is a courteous, professional, capable of driving virtually all types of vehicles in a designated area of service promptly and safely.
They assist with opening all passenger doors as needed for guests arriving and departing at all times.
KEY CONTROLLER
SPS assigns one person per shift to be the Key Controller. Key Controller keeps keys secured at all times by not permitting any unauthorized personnel to enter the key control area and respond quickly to requests for keys so the valet may exit promptly. At the end of their shift Key Controller inventories all keys and turns in a report to the valet operations manager. The keys left over after hours of the operation will be reported to the security office. At the same time we let customers know about it by placing a note on their vehicles.
DISCIPLINARY PROCEDURES
Supreme Parking makes all employees aware of its policy on discipline and provides a copy of these procedures upon employment. The Company documents all disciplinary actions in writing and provides a copy to the employee. If necessary, employees receive additional counseling and job training. Supreme 15 Downtown Downey
Parking terminates an employee when it can be proven with no uncertainty that they committed a serious offense against a Company policy in safety, honesty, or courtesy.
INSURANCE:
Supreme Parking shall include Management/ Owners on a commercial General Liability, Workers Compensation and Garage Keepers Legal Liability insurance policy of no more than $3,000,000.00 per occurrence, subject to customary deductions and conditions.
UNIFORMS
Supreme Parking provides uniforms to all its parking personnel. They consist of a red jacket with black labels, a blue or black company polo shirt, black slacks, and black running shoes. Supreme Parking requires employees to keep their uniforms clean and neatly pressed at all times. The Company can provide other color schemes if requested by a contracting authority.
SIGNAGE
Supreme Parking will provide signs specifying hourly, and daily rates, hours of operation, validations, lot full, and directions to pedestrians for entering and exiting the facility. For the convenience of parking customers, Supreme Parking can provide signs that list businesses that validate parking at the facility and that display additional information of interest to customers in a specific locale.
OPERATIONAL GOALS AND PROCEDURES
Supreme Parking’s primary management goals in operating this parking facility are as follows:
1. To establish, maintain, and enhance the most effective parking control procedures possible,
2. To maximize the occupancy of the parking space,
3. To implement a complaint abatement process and to ensure that it will resolve problems experienced by customers expeditiously and satisfactorily,
4. To respond in the timeliest manner possible to the requirements of the contracting authority.
16 Downtown Downey
FACILITY MAINTENANCE
Supreme Parking insists that the appearance of every parking facility we operate is excellent. Well-maintained parking areas reflect the quality of our operations.
Clean, well-maintained areas enhance the safety of our customers, clients and employees.
All parts of the facility for which Supreme Parking Services is responsible are to be swept on an as-needed basis no less often than weekly. Booths, ramps, and all parking surfaces and driveways are to be swept. All approaches, exits, and access ways for pedestrians and cars surrounding the facility must be inspected and swept.
RECORD MANAGEMENT
Supreme Parking Services maintains accurate records of daily, weekly, and monthly inventory volume or other cumulative data regarding parking operations as required. Such records include:
➢ Daily sheets
➢ Monthly sales logs
➢ Tickets
➢ Computer printouts
➢ Monthly reports and all supporting documentation
➢ Non-financial documents including, but not limited to, communications, incident reports, and employee evaluations.
Generally, Supreme Parking Services retains this documentation for up to two years or as required by GAAP.
ENFORCEMENT
Lot checks should be conducted and documented by someone not involved in daily operations in the garage.
● Lot checks will be done regularly, but in an unpredictable manner. ● The frequency will be adjusted depending on the results.
HELPFUL RESPONSES AND PROBLEM-SOLVING TIPS
The ability to solve problems is a key to providing great service. It makes the job easier. It makes the company run smoother. It also can mend relationships with customers. No matter what happens, or why, it is better to handle the occasional 17 Downtown Downey
mishaps directly and effectively than to ignore them and hope that they will disappear. The goal is to give a positive, helpful response. With practice, attendants learn that this technique is very useful and effective.
COMPLAINT ABATEMENT
Supreme Parking knows that when providing a public service, customer complaints are inevitable regardless of how diligent we are providing the best parking management services possible. Supreme Parking Services responds to complaints forthrightly because it is important that the company maintain its high standards by correcting situations as necessary and those customers recognize it as such. If an incident occurs, the Parking Manager or Supervisor is contacted immediately and corrective action occurs as needed in accordance with Supreme Parking Services policies and procedures. If circumstances warrant, Supreme Parking Services understands the authorized designated representative of the contracting agency is the final arbiter in any disagreement between a Contractor and a customer, and Supreme Parking will abide by any decision made.
Supreme Parking teaches employees during training how to respond appropriately to customers who complain about parking services. They are taught to remain polite and respectful with customers at all times to prevent a confrontation.
Employees mollify angry customers by listening to their concerns attentively and by making a sincere effort to resolve
Reasonably. If the differences cannot be reconciled, employees inform customers that they are unable to do what the customer desires. The attendant gives the customer the name, address, and telephone number of the Parking Supervisor (or other point of contact) at Supreme Parking Headquarters and encourages the customer to call the appropriate individual to resolve the complaint.
Parking Managers or Supervisors are authorized to resolve most complaints as received while on duty. Supreme Parking issues pagers with attended message paging services to the Operations Manager and to Parking Supervisors. Also, the Cashier/Attendant responds to
Customer complaints or suggestions and report any complaints directly to their supervisor immediately.
Regarding fee disputes, the Parking Supervisor (or Manager) handles such situations first. If necessary, the Operations Manager attempts to resolve any 18 Downtown Downey
difficulty. Also, the Company maintains a trained staff of customer service specialists and appoints a representative to assist local management in resolving all matters that cannot be resolved quickly.
Knowledge and extensive experience in the parking industry has given the Company keen insight to every component of excellent parking service. Our customer service program meets the public demand for top service along with the needs of our various parking facilities.
We will work with a client's staff to anticipate problems before they arise. Every precaution will be taken to ensure that all traffic flow continues at the highest level of efficiency
Thank you for the opportunity to discuss our services and we, at Supreme Parking Service, look forward to providing you with the highest caliber of service.
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Exhibit A
https://www.google.com/maps/d/u/0/edit?mid=1MR-irr4Xf2dh4ADha7xqM27fO0LfN4A&usp=sharing 20 Downtown Downey
Exhibit B
21