City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 6, 2026 FROM: PUBLIC WORKS DEPARTMENT WARD: 1 SUBJECT: FIRST AMENDMENT TO SERVICE AGREEMENT WITH ACE PARKING III, A CALIFORNIA, LLC OF SAN DIEGO, CA FOR THE PARK RIVERSIDE DOWNTOWN VALET PROGRAM TO EXTEND THE TERM COMMENCING JULY 1, 2026 TO JUNE 30, 2027, EXERCISING THE FIRST OF TWO APPROVED ONE-YEAR OPTIONS; AND INCREASE COMPENSATION IN THE AMOUNT OF $309,430.86 FOR A NEW TOTAL CONTRACT NOT-TO-EXCEED AMOUNT OF $644,026.71 ISSUE:
Consider approving the First Amendment to Service Agreement with Ace Parking III, a California LLC, of San Diego, CA for the Park Riverside Downtown Valet Program to extend the term commencing July 1, 2026 to June 30, 2027, exercising the first of two approved one-year extension options; and increase compensation in the amount of $309,430.86 for a new total contract not-to-exceed amount of $644,026.71.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to Service Agreement with Ace Parking III, a California LLC of San Diego, CA for the Park Riverside Downtown Valet Program to extend the term commencing July 1, 2026 to June 30, 2027, exercising the first of two approved one-year extension options; and increase compensation in the amount of $309,430.86 for a new total contract not-to-exceed amount of $644,026.71; and Authorize the City Manager, or designee, to execute the First Amendment with ACE Parking III, California LLC, including making minor and non-substantive changes, including term extensions, subject to the availability of budgeted funds.
BACKGROUND:
On July 14th 2026 the City Council received an update on the Valet Program Pilot detailing the program’s successes and challenges along with future plans for the program.
DISCUSSION:
The Park Riverside Downtown Valet Program was developed as an additional component of the City's ongoing efforts to improve access, convenience, and the overall parking experience within Downtown Riverside. The service provides customers with a centralized curbside parking option and supports access to downtown restaurants, businesses, entertainment venues, and special events without requiring customers to independently locate available parking.
The original agreement with ACE Parking III was established as a six-month pilot program and included two additional one-year extension options. The proposed First Amendment exercises the first of those previously contemplated one-year extension options and will allow the City to continue the program from July 1, 2026 through June 30, 2027 without interruption.
Extending the program for an additional year will provide Parking Services with an opportunity to continue evaluating the long-term viability of the service over a more representative operating period. The additional term will allow staff to further assess program utilization, operating costs, customer demand, service levels, impacts associated with downtown events and seasonal activity, and the overall benefit of the valet service to the downtown parking system.
ACE Parking III was selected through RFP No. 2452 following a competitive procurement process. A new competitive solicitation is not required for the proposed extension because the original solicitation and resulting agreement included two one-year extension options. The proposed action utilizes the first of those extension options and does not represent a new procurement of valet services.
The First Amendment will increase compensation by $309,430.86 for the July 1, 2026 through June 30, 2027 extension period, resulting in a new total contract amount of $644,026.71. Funding will support continued operation of the Park Riverside Downtown Valet Program during the extension term.
During the extension period, Parking Services will continue to monitor program performance and evaluate opportunities to improve operational efficiency, customer service, utilization, and the financial sustainability of the program. Information collected during the additional year will assist staff in determining appropriate recommendations regarding the future of the Park Riverside Downtown Valet Program and whether to exercise the remaining extension option.
Purchasing Overview
The original agreement was approved by City Council in accordance with Purchasing Resolution 24101, Section 508 which states, …(c) Contracts procured through Formal Procurement for Services or Professional Services, where a Request for Proposals or Request for Qualifications was used to solicit Bids, shall be awarded by the Awarding Entity in accordance with the evaluation criteria set forth in the Request for Proposals or Request for Qualifications…” This first amendment is pursuant to Purchasing Resolution 24421, Section 1104 “Change Orders”, which states: “(b) Permitted Uses. Subject to the availability of funds, Change Orders may be utilized for purposes of (5) modifying contract completion time or the term of a Contract. (g) Contracts and Purchase Orders Previously Approved by the City Council or Board of Public Utilities. The Manager, or designee, may approve cumulative Change Orders when: (1) The cumulative Change Orders do not exceed ten percent (10%) of the original Contract or Purchase Order amount; and (2) The cumulative Change Orders approved under this delegated authority do not exceed $150,000. (3) If either limit is exceeded, approval by the applicable Awarding Entity is required before any additional Change Order may be executed, unless the Awarding Entity previously authorized additional Change Order authority; (h) Term and Completion Date Extensions. Approval by the applicable Awarding Entity is required when: (1) A Contract amendment extends the term of the Contract more than one year beyond the original expiration date.” The Purchasing Manager concurs that the recommended action is compliant with Purchasing Resolution 24421.
FISCAL IMPACT:
The total fiscal impact of the actions of this report is a total of $309,430.86 over a 1-year term. Sufficient funds for Fiscal Year 2026/27 are budgeted and available in the Public Parking Fund, Professional Services Account No. 4150000-421002.
Prepared by: Jacqueline Rodriguez, Senior Administrative Analyst Approved by: Nathan Mustafa, Public Works Director Certified as to
availability of funds: Julie Nemes, Finance Director Approved by: Thomas Hatch, Interim City Manager Approved as to form: James Johnson, City Attorney
Attachments: Amendment to Service Agreement with ACE Parking III, LLC Park Riverside Downtown Valet Programh Page 5