REPORT TO THE CITY COUNCIL June 19, 2014 FROM: JENNIFER K. CLARK, Director Development and Resource Management Department BY: DEL ESTABROOKE, Parking Manager Parking Services Division SUBJECT ..Title Actions pertaining to the Parking Agreement between the City of Fresno and Club One Casino, Inc. Adopt a finding of Categorical Exemption per staff determination pursuant to Article 19, Section 15301 Class 1 (existing facility) of the California Environmental Quality Act Guidelines Authorize the Fifth Amendment to the Parking Agreement between the City of Fresno and Club One Casino, Inc. for fixed rate patron parking in the amount of $72,000 per year (Council District No. 3) ..Body RECOMMENDATIONS Adopt findings of Categorical Exemption per staff determination, pursuant to Article 19, Section 15301 /Class 1 (Existing Facility) of the California Environmental Quality Act (CEQA) Guidelines for the extension of the parking agreement with the Club One Casino (Club One). Approve the fifth amendment to extend the existing parking agreement between the City of Fresno and Club One to provide parking in the Underground Parking Garage #8, at a fixed rate of $6,000 per month for 100 parking spaces for one year. EXECUTIVE SUMMARY Parking Garage No. 8 is located under Van Ness Avenue between Tulare and Fresno Streets and provides parking to various downtown businesses and public agencies. One of the businesses, Club One, has procured parking privileges for its patrons at a fixed monthly rate of $6,000 since June 2010. The City of Fresno has previously extended the terms of the parking agreement with Club One on an annual basis so the contract can be reviewed each year in context of the changing downtown landscape. Analysis over the past year has determined that Garage #8 still has the capacity to house Club One visitors, Holiday Inn guests, and the usual volume of monthly permit holders. This contract continues the prior conditions of the agreement for a one year period. The 100 stalls will be reserved for Club One guests at a flat rate of $6,000 per month, with each additional Club One patron's vehicle beyond the 100 allotted stalls charged at a rate of $1.00 per day during the hours of 6am to 6pm. BACKGROUND Club One Casino is a downtown institution that contributes to the general fund resources for the City of Fresno. Parking arrangements with Club One have helped keep the business located in the downtown core, and provided a steady revenue stream for Parking Services to maintain facility operations at one of the division's most heavily utilized garages. Since 2006 Parking Services has contracted with Club One for 100 designated spaces at the $6,000 rate plus $1.00 each additional car during the 6am-6pm time period. The stall count and rate is feasible for the extension term recommended in this amendment. ENVIRONMENTAL FINDINGS Staff has determined that the proposed Fifth Amendment is exempt under CEQA Guideline 15301 Class 1, which provides exemption for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures and facilities, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The proposed Third Amendment is within the Class 1 exemption because it involves existing City parking structures and facilities involving negligible or no expansion of use. The above exemption is not precluded by Guideline 15300.2, which prevents the use of categorical exemptions for projects where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances, or where a project may cause a substantial adverse change in the significance of a historical resource. The proposed Third Amendment does not have a significant effect on the environment due to unusual circumstances, nor does it cause a substantial adverse change in the significance of a historical resource. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, 15300.2 apply to this project. LOCAL PREFERENCE N/A FISCAL IMPACT The parking agreement generates $72,000 revenue annually. It should be noted that Club One pays to the City approximately $1,200,000 annually in the form of table tax. No other business entity pays this type of tax. Terms of the agreement are reviewed annually so changes can be made as needed. Attachment: Fifth Amendment to Fixed Rate Patron Parking Agreement - Club One Casino