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HomeMy WebLinkAboutTony Romas (PA2002-237) Bennigans (PA2002-238)CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item No. 6 February 20, 2003 TO: PLANNING COMMISSION FROM: Chandra Slaven, Assistant Planner (949) 644 -3231 cslaven @city.newport - beach.ca.us SUBJECT: Tony Roma's (PA2002 -237) and Bennigan's (PA2002 -238) 2901 W. Coast Highway, Suites 170 and 180 Request for two Use Permits to allow two Eating and Drinking Establishments and to authorize the sale of alcoholic beverages for on -site consumption pursuant to the Alcoholic Beverage Outlet Ordinance (ABO). The applications also include a request to modify required parking. APPLICANT: West Coast Highway #1 C/o Primrose 3741 Merced Dr. Suite E Riverside, CA 92503 ISSUE: Should the Planning Commission approve two Use Permits to allow two Full- Service, Eating and Drinking Establishments, the sale of alcoholic beverages (Type 47 On -Sale General) for on -site consumption pursuant to the Alcoholic Beverage Outlet Ordinance (ABO), and a request to modify the required parking? RECOMMENDATION: Hold a public hearing and approve the requested Use Permit Nos. 2002 -048 (PA2002- 237) and 2002 -048 (PA2002 -238) subject to the findings and conditions of approval within the draft resolution for project approval. DISCUSSION: Site /Proiect Overview: The two proposed restaurants will be housed on the second floor of the three -story building located at 2901 W. Coast Highway (The site is commonly referred to as the John Dominis Building). Tony Roma's Ribs and Burgers referred to as "restaurant 1" will have a total area of approximately 6,000 square feet (approximately 190 seats) including an outdoor dining area of approximately 1,267 square feet. Bennigan's Steak and Seafood referred to as "restaurant 2" will have a total area of approximately 5,590 square feet (approximately 196 seats) including an outdoor dining area of approximately 932 square feet. The project site provides parking with a combination of on -site and off -site parking. The off -site parking lot is located on the southwesterly corner of Riverside Avenue and Avon behind the Wells Fargo Bank building. Additionally, the applicant is proposing a valet parking plan for both of the restaurants, which will utilize both on and off -site parking. The proposed hours of operation for restaurant 1 are from 11:00 am to 10:00 pm Sunday through Thursday and 11:00 am to midnight Friday, Saturday and holidays. The proposed hours of operation for restaurant 2 are from 6:00 am to midnight Sunday through Thursday and 11:00 am to 1:00 am Friday, Saturday and holidays. These hours are generally consistent with the operating hours of a full service lunch and dinner restaurant; however, restaurant 2 will be open for breakfast. The application indicates that no live entertainment or dancing will occur at the restaurants. The project applicant proposes to create a separate outdoor patio area for each restaurant by moving the existing exterior wall into the building. The floor plan proposes the installation of a glass wall /railing and dividers to aid in the control of noise and to provide protection from the weather. Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 2 of 14 Use Permit Nos. 2002 -048 (PA2002 -237) 2002 -049 (PA2oo2 -238) 2901 W. Coast Highway Current Development: Waterfront retail/office complex. To the north: Automobile /motor - scooter sales and restaurant across West Coast Highway. To the east: Restaurant and offices. To the south: Lido Channel. To the west: Yacht sales and offices. Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 3 of 14 Background: In 1984, the Planning Commission reviewed and approved Use Permit No. 3086 and related Traffic Study, which permitted the existing development of the subject property to exceed the 0.5 floor area ratio and to allow the building to exceed 26 feet. Said action also included off -site parking for a portion of the required off - street parking, including a modification of standards to allow the use of compact and tandem parking spaces for a portion of the required off - street parking spaces. This permit also authorized two restaurants and a private club to occupy the building. In 1988, the City approved an amendment to Permit No. 3086. The amended use permit expanded the two restaurants and discontinued the private club use. The previous Use Permit No. 3086 (Amended) allowed a total of 9,506 square feet of interior net public area for restaurant use without providing parking for the 1,678 patio on the third floor. In July of 1998, the Planning Director determined that a modified operation was in substantial conformance with the previous amended Use Permit. The owners then opened a single restaurant (Aysia 101) within the same site and similar parking demand as the two previous restaurants in September 1998. This restaurant is now closed and the site has remained vacant for more than 180 consecutive days. The approvals from the original Use Permit (1984) remain in effect for the building itself, but have become null and void for the restaurant use, thereby requiring the application for a new Use Permit for each restaurant. Analysis: The proposed restaurants are classified as Eating Drinking Establishments - Full Service, High Turnover, and require approval of a use permit per the Zoning Code. In addition, the applicant is requesting two premise -to- premise transfers of Type 47 (On- Sale General) licenses to permit the on -site consumption of alcoholic beverages in conjunction with the restaurants. In accordance with Section 20.89.030A of the ABO, a new use permit is required for any new alcoholic beverage outlet. Additionally, the proposed restaurants are located within a mixed -use marine, retail and office building that was not developed with sufficient parking to satisfy the sum total parking requirements for all collective uses of the site. The restaurants, combined with the other uses, will require more parking than is currently provided, thereby requiring a parking modification. General Plan The City's General Plan designates the site as Recreational and Marine Commercial. The Recreational and Marine Commercial category is applied to waterfront commercial areas where the City wishes to preserve and encourage uses, which facilitate a marine commercial and visitor serving orientation. Operations, within this broad use, include visitor - serving commercial (social clubs, hotels, restaurants, etc.). Therefore, the applicant's request for restaurants is consistent with the RMC General Plan designation. Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 4 of 14 Parking The parking rate for a full service, high - tumover restaurant is within a range of one space for every 30 to 50 square feet of public area. Given the mixture of high turnover in the morning /afternoon meals with the low turnover during the dinner and later evening, a middle ground of 1/40 sq. ft. is a sound measurement for predicting parking demand. Operational character related to occupancy points to a ratio of square footage per parking space and not to hours of operation. The small bar area of 535 square feet for restaurant 1 (as compared to the entire restaurant) is limited to 26 seats; similarly, the small bar area of 620 square feet for restaurant 2 (as compared to the entire restaurant) is limited to 38 seats. The original (family -style) restaurant was approved with a 1/40 ratio and similarly the proposed restaurants are family -style in operational character, therefore the parking should be calculated at a 1/40 ratio. In summary, the parking standard for the restaurants has been utilized since the original development was approved at 1140 and appeared to have met the demand. The only time the City was aware of parking problems was when the operation became more like a nightclub. The parking requirement for the restaurant use in this case is computed at a rate of one space for each 40 square feet of floor area. The applicant desires that the outdoor seating area be considered an "accessory outdoor dining area;' whereby a portion of the patio dining area would not be required to provide parking. This portion of the outdoor dining area would equal no more than 25 percent of the interior net public area. The approval of an application to add or expand outdoor accessory dining is established upon certain required conditions found in 20.82.050; Part C. Condition 4 stating that "Roof coverings shall not have the effect of creating a permanent enclosure." The restaurants are proposed for the second floor only of the building and the third floor fully covers the patios, thereby a "permanent enclosure" is created in staff's opinion. Hence, the proposed patio area does not meet the required condition of an accessory outdoor dining area and therefore parking for the entire outdoor seating area is required. The parking requirements for the entire site are summarized in the following table: Tony Roman's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 5 of 14 3,237 sq. ft. 40 sq. ft. 803 Restaurant 1 m (Tony Roa's) =. Restaurant 2 3,852 sq. ft. 40 sq. ft. (Bennigan's) Total Re uired Parking for Both Restaurants J. Office 33,932 sq. ft. 250 sq. ft. 135.73 Fitness Center 2,775 sq. ft. 250 sq. ft. 11.1 Retail Wine 1,075 sq. ft. 250 sq. ft. 4.3 Marina 8 slips x .75 6 Total Required 335 Parking Provided * See discussion below 257 Deficiency 78 Tony Roman's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 5 of 14 If the outdoor dining areas were eligible for the reduced parking allowance, the parking requirement for the entire site would be as follows: Restaurant 1 Tony Roma's 2,741 sq. ft. 40 sq. ft. Restaurant 2 Bennigan's (See Note B) 3,119 sq. ft. 40 sq. ft. Total Required Parking for Both Restaurants: Office 33,932 sq. ft. 250 sq. ft. 135.73 Fitness Center 2,775 sq. ft. 250 sq. ft. 11.1 Retail Wine 1,075 sq. ft. 250 sq. ft. 4.3 Marina 8 slips x .75 6 Total Required 304 Deficiency 47 Note A: Net Public Area (interior only) = 1,985 sq. ft. (3,237 sq. ft. - 1,252 sq. ft. patio area) Accessory Outdoor Dining Waiver = 496 sq. ft. (1,985 sq. ft. x .25) Patio Area Responsible for Parking Demand = 756 sq. ft. (1,252 sq. ft. - 496 sq. ft.) Total NPA (interior and patio) = 2,741 sq. ft. (1,985 sq, ft. + 756 sq. ft.) Required Parking Spaces Per Code = 69 spaces (2,741 sq. ft. / 40) ** Note B: Net Public Area (interior only) = 2,932 sq. ft. (3,852 sq. ft. - 920 sq. ft. patio area) Accessory Outdoor Dining Waiver = 733 sq. ft. (2,932 sq. ft. x .25) Patio Area Responsible for Parking Demand = 187 sq. ft. (920 sq. ft. - 733 sq. ft.) Total NPA (interior and patio) = 3,119 sq. ft. (2,932 sq, ft. + 187 sq. ft.) Reauired Parkina Spaces Per Code = 78 spaces _(3,119 sq. ft. / 40) ** As shown, both tabulations result in a parking deficiency. Parking Plan with Valet Parking Services: To support the applications, the applicant has submitted a dimensioned parking plan as part of his submittal package. The City Traffic Engineer has reviewed the proposed parking lot layouts on both, the on -site and off -site lots. The proposed parking for the property consists of 257 spaces (157 standard spaces, 7 handicapped spaces, 44 compact car spaces, and 49 valet spaces) located in the basement and first floor parking lots of the building and the off -site lot located on Riverside. The proposed parking plans are adequate, with the understanding that both the "compact" and "tandem" parking spaces will be allowed, due to their original approval in 1988 (See Exhibit No. 8). The parking plan submitted to the Commission for this hearing is the most current version of the proposed parking layout. However, there will be a reduction of one space in the off -site lot, four in the first floor level, and two in the rear of the lot. The available parking totals presented in this report reflect those approved by the City Traffic Engineer. Additionally, the applicant is Tony Roman's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 6 of 14 responsible for making dimension corrections to a few of the spaces, before final approval from the City Traffic Engineer is given. It is the recommendation of staff that the use of valet attendants shall be only for the restaurants, and shall be required for all hours of operation (See Exhibit No. 6). Furthermore, there will be a permanent valet provided for the off -site parking lot, consequently preventing the attendant from crossing the Coast Highway. Parking Waiver: In reviewing the requested modification of parking, staff considered the following factors in their decision: • Background of the project site (as outlined above); • Reduction in net public area of 2,417 square feet and associated parking demand from the previous restaurant use (previous permitted use of 9,506 sq. ft and the current proposal of 7,089 sq. ft.); • Hours of operation of the restaurants are different from the other uses in the building; • Peak parking demands for the various "mixed uses" are non coincidental, therefore allowing shared parking to occur; • Walk -in restaurant patrons from adjacent commercial areas • Letters of support for the valet parking service within the building from both the owner and other tenants (See Exhibit No. 9). In order to grant a parking modification, Code Section 20.66.100 requires that one or more of the following conditions be met: "A municipal parking facility is so located as to be useful in connection with the proposed use or uses on the site or sites." A municipal parking lot is not located within proximity of the site and, as noted above, on- street parking is severely limited in that there is limited on- street parking along West Coast Highway. The municipal lot is located along the Avon Street extension, east of Tustin Avenue. However, the lot's distance from the project site prevents it from being conveniently utilized. 2. "The site is subject to two or more uses and the maximum parking requirements for such uses do not occur simultaneously." The project site would have a number of retail, restaurant and office uses with various peak demands and hours of operation. During the morning hours, there will be surplus of parking; and during the lunchtime hours, there will be a deficiency of parking, and finally during the evening, parking availability will return to a surplus. The noontime peak is caused as all users, including both restaurants will be in operation. The morning surplus is created as only one of the two restaurants is open and the evening surplus is created as other uses (office /retail) will be typically closed. The retail/commercial uses will be generally closed in the evening hours during which time the restaurants will have an evening peak use of 5:00 pm to 9:00 pm. Staff does not consider the midday parking deficiency problematic, as the lunch trade is typically less than 100 percent occupied. Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 7 of 14 Additionally, when multiple users demand a parking facility, typical parking demand falls short of the full sum of total requirements. The required parking for the entire project site was tabulated considering these factors (see Exhibit No. 6). With the implementation of a shared parking concept, the restaurants will be able to meet the parking demand. 3. "A parking management plan for the site has been approved by the Planning Commission..." A parking management plan has been prepared for the site and offsite location (See Exhibit No. 5). 4. "The Planning Commission makes the following findings: a) The parking demand will be less than the requirement in Section 20.66.030. b) The probable long -term occupancy of the building or structure, based on its design, will not generate additional parking demand. The restaurant demand will most likely be less than required in Section 20.66.0301 due to walk -in traffic during the peak noontime hours, which will mitigate the overlap of uses; however, the long -term occupancy of these two restaurants could potentially generate additional parking demand based upon their success as restaurants. In summary, in staff's opinion two of the four conditions can be met by the project as requested by the applicant. However, it will be the applicant's responsibility to comply with the draft conditions of approval in ensuring that with the combination of compact car spaces and full valet parking service will accommodate the anticipated parking demand during the noontime overlap. Alcoholic Beverage Outlet Ordinance (ABO) On June 8, 1998, the City Council adopted the Alcoholic Beverage Outlets (ABO) Ordinance (Chapter 20.89 of the Municipal Code). The purpose of the ABO Ordinance is to preserve a healthy environment for residents and businesses by establishing a set of consistent standards for the safe operation of alcoholic beverage outlets, while preventing alcohol - related problems. The ABO requires the Planning Commission to consider the following: 1. Whether the use serves public convenience or necessity. 2. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. 3. The number of alcohol licenses per capita in the reporting district and in adjacent reporting districts as compared to the countywide average. 4. The numbers of alcohol - related calls for service, crimes or arrests in the reporting district and in adjacent reporting districts. Tony Roman's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 8 of 14 5. The proximity of the alcoholic beverage outlet to residential districts, day care centers, park and recreation facilities, places of religious assembly, and schools. In accordance with the foregoing, and in order to provide the Planning Commission with the necessary data and analysis to make the required findings, each of the foregoing is discussed as follows: Public Convenience or Necessity. The proposed restaurants will provide a full service dinner, although lunch and breakfast will also be served. The sale of alcoholic beverages is a typical accessory use to a large full - service restaurants and the public expects and demands this service. Approval of the sale of alcohol will sere the public's convenience as opposed to the public necessity. Crime Rate. Citywide, there were 6,979 crimes reported during calendar year 2002, of which 3,092 were Part One Crimes (serious offenses). The remaining 3,887 were Part Two Crimes that include alcohol related arrests. The project site is located within Police Reporting District No. 25. During 2002, the number of Part One Crimes in RD No. 25 was 118 and the number of Part Two Crimes was 206. Adjacent Reporting Districts are Nos. 24 and 26. RD No. 24 had 196 Part One and 235 Part Two Crimes; and RD No. 26 had 130 Part One and 174 Part Two Crimes. A map of the reporting districts is attached to the Police Report (Exhibit No. 3). The number of total crimes reporting within the RD of the subject project site is slightly higher than RD No. 26, and is considerably lower than RD No. 24. The Police Department notes that the actual amount of crimes in the area is not considered significant due to the high concentration of commercial uses within RD No. 25, and they have no objection to the business at the proposed location. Over Concentration. Due to this request, there would be a net increase of two licenses within RD No. 25. There are 25 active ABC licenses within RD No. 25. The census tract within which the restaurants are located has a higher ratio of liquor licenses when compared with the average ratio for Orange County since there is very limited population within the census tract. However, as noted above, the Mariner's Mile area within which the business is located, has a high number of eating and drinking establishments. The area is typified by full - service, sit -down restaurants that are complementary to the office, retail commercial and entertainment uses that predominate the Mariner's Mile area. The concentration of alcoholic beverage licenses within the area is not considered by the Police Department as detrimental to the community. Alcohol - Related Crimes. The Police Department has provided statistics for driving under the influence and plain drunk arrests. There were 57 driving under the influence arrests and 41 plain drunk arrests in this area (totaling 98 DUI /Drunk arrests) during this same period as compared to 1,608 for the entire City. This RD amounts to 5.57% of the DUI /Drunk arrests made in the City. RD No. 24 had 112 DUI /Drunk arrests and RD No. 26 had 82 DUI /Drunk arrests. The rate within RD No. 25, within which the project is Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 9 of 14 located, is higher than the citywide average and the adjacent RD No. 26; but less than the adjacent RD No. 24. The high number of alcohol- related arrests in RD No. 25 can partially be explained by the fact that Coast Highway runs through the Reporting District. Many stops/arrests made are associated with alcohol consumption at bars and nightclubs located outside of the reporting district. The Police Department does not believe that the proposed use will generate a significant number of alcohol - related incidents. Adjacent Uses. The site is located within Mariner's Mile and is not adjacent to sensitive land uses. This site is bounded by commercial uses. There are no day care centers, schools, or park and recreation facilities in the vicinity of the project site. The nearest residential use is The Towers condominiums located on the south side of West Coast Highway approximately 275 feet to the west, Lido Isle is located approximately 11,000 feet southeast of the project site. The Police Department recommends that the hours of operation for the outdoor dining areas be restricted to close at 10:00 pm due to the proximity of the residences. However, planning staff has fewer concerns due to the distance to nearby residences and suggests a closing time of 11:00 pm for the outdoor dining area as stated in condition (No. 4). Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 10 of 14 Conclusion: The Police Department has reviewed the Use Permit application and has determined that no additional conditions related to design and security are necessary. However, the Police Department is concerned with the following three issues: the possibility of traffic queuing on PCH, additional traffic generated from the existing harbor cruise operations, and potential outdoor dining area noise (See Exhibit No. 2). Outside of these issues, the Police Department has no objections to the basic restaurants' operations as described by the applicant. Upon Use Permit approval, the Police Department will condition the ABC license as necessary to maintain the health, safety and welfare of the community. Tour buses for harbor cruises have blocked West Coast Highway in the past, but the proposed use permits are for the two restaurants. Staff can meet with the Harbor Resources Department and the cruise operators to ensure that passenger drop -off is managed in a different fashion to avoid this issue. Live Entertainment and Dancing The application indicates that no live entertainment or dancing will occur at the restaurants. Staff is not opposed to these activities; however, an acoustical study would have been required in conjunction with such a request. In the furtherance of the developing policy to regulate these activities through licensing permits rather than land use permits, staff recommends that live entertainment and dancing be permitted subject to obtaining Live Entertainment and Cafe Dance permits, provided that the live entertainment and or dancing remain clearly subordinate at all times to the restaurant. By limiting it to a minor aspect of the restaurants, the validity of the parking assumptions discussed previously would be ensured. The City Manager will require the preparation of an acoustical study in conjunction with a potential future request for live entertainment. Staff has drafted Condition No. 6 allowing the live entertainment and dancing subject to an acoustical study and Live Entertainment and Cafe Dance permits. Should the Commission be concerned about allowing live entertainment and dancing pursuant to this strategy, the Commission can prohibit these activities. The following condition would replace Condition No. 6. "Live entertainment and dancing shall be prohibited at all times." If these activities were sought, an amendment to the use permit would be required. Restaurant Design and Development Standards Chapter 20.82.040 of the Municipal Code contains development standards for restaurants, as outlined below, to ensure that any proposed development will be compatible with adjoining properties and streets. The development standards include specific requirements for site requirements, building setbacks, parking and traffic circulation, walls surrounding the restaurant site, landscaping, exterior illumination, underground utilities, and supply and refuse storage. Section 20.82.040 D of the Municipal Code states that any of the above mentioned development standards for restaurants may be modified or waived if strict compliance is not necessary to achieve the purpose or intent of the standard. Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 11 of 14 Development Standards Environmental Review: This project has been reviewed, and it has been determined that it is categorically exempt from the requirements of the California Environmental Quality Act under Class 1 (Minor Alteration of Existing Structures). This categorical exemption allows for the repair, maintenance and minor alteration of an existing building, such as this one. This exemption includes interior and exterior alterations. Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 12 of 14 W. Site shall be of sufficient size and configuration to .; Partially Complies The site is 49,460 square feet total Site. satisfy all requirements for off -street parking, gross floor area and Is developed With an approximately setbacks, curb cuts, walls, landscaping and refuse 11,690 gross square feet for restaurant use. The site and storage as prodded by Section 20.82.040 of the parking provided could accommodate a restaurant use Municipal Code. for evening use in that the restaurant is sharing parking due to the staggered hours of the various uses within the buildng complex; however, there may be a shortage of parking during the noontime hours. Setbacks: The City may establish more restrictive setbacks if it is Complies. The approval of the existing restaurant. In determined that it is necessary or desirable for the conjunction with Use Permit No. 3086, was determined protection of the public health, safety or welfare or to to be in substantial compliance with this development insure the compatibility of uses on contiguous standard. properties. ON- Street Off- street parking in accordance with the provisions of Modification Sought The site provides 257 parking Parking: Chapter 20.66 of the Municipal Code spaces for all uses. A parking plan was prepared for the project and the City Traffic Engineer's evaluation of the study indicates that adequate parking will exist during the evening peaks, but that adequate parking may not be available during the noontime peak hours, hence the need for a parking modification of the required parking requirements. Circulation: Parking areas and driveways to facilitate traffic and Partially Complies. The parking garage and off -site lot circulation of vehicles on and around the facility and to have been reviewed and approved by the City Traffic provide adequate sight clearances. Engineer and he notes potential circulation problems during peak activity times, traffic ingress to the parking facility at the location could result in cars queuirg along Coast Highway while walling for valet parking services. This can create a traffic hazard and negatively impact traffic movement along the highway. The valet plan, whereby the valet attendant Is required to waive vehicles when queuing is problematic, should address this issue. Walls: A solid masonry wall 6 feet high shall be erected on all Complies. The approval of the existing restaurant, in interior properly lines of the subject property. Walls 3 conjunction with Use Permit No. 3086, was determined feet in height shall be erected between the on -site to be In substantial compliance with the above parking areas and the public right-of-way. referenced development standards for both the on-site and off -site lots. Landscaping: 10 %of entire site, 3-foot wide landscape area shall be Complies. The approval of the existing restaurant, in provided to screen the parking area from the public conjunction with Use Permit No. 3086, was determined right-of -way. A 3 -foot vide landscape area adjacent to be in substantial compliance with this development to the interior property lines shall be provided. standard. Lighting., Parking lot and site illumination height and intensity; to Complies. The property is developed and the lighting minimize the reflection of lights to the streets and appears adequate as currently exists and does not pose neighboring properties. problems With glare onto surrounding properties. No additional lighting is proposed in conjunction with the proposed restaurant uses. Improved lighting of the oft- site parking garage has been implemented. Utilities All utilities required to be under grounded. _L Complies. The project she is existing and is served by underground utilities. Supply Storage Supply storage to be contained within a building. Complies. No outdoor storage of s ias is 'tied Refuse Storage Refuse storage outside of a building shall be hidden Complies. Trash storage areas vnll be located within from view by a solid masonry wall 6 feet in height with the allocated area on the first floor parking level. soft-locking ates. Environmental Review: This project has been reviewed, and it has been determined that it is categorically exempt from the requirements of the California Environmental Quality Act under Class 1 (Minor Alteration of Existing Structures). This categorical exemption allows for the repair, maintenance and minor alteration of an existing building, such as this one. This exemption includes interior and exterior alterations. Tony Romas's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 12 of 14 Public Notice: Notice of this hearing was published in the Daily Pilot with the agenda, mailed to property owners within 300 feet of the property and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. Alternatives: The Commission may conclude that the two restaurants in conjunction with the other uses is detrimental and could create parking and circulation problems. In that case, a reduced intensity alternative should be considered. Staff would recommend approval of only one use permit or, to alleviate concerns about the parking deficiency during lunch; one restaurant could be required to be closed for lunch. 2. The Commission may determine that either requested use permits would potentially adversely impact the area, in which case, it would be necessary to deny the applications. CONCLUSION: In staffs opinion, the requirements and findings of the ABO can be met and that the two proposed restaurants would not prove detrimental to the area. Given the potential of shared parking due to extended hours of operation, walk -in traffic and a valet parking service, staff is recommending that the restaurants be granted a parking modification of the required parking requirement. If the Planning Commission concurs with staffs evaluation, it would be appropriate to adopt the attached draft resolution of approval included as Exhibit No.1. Submitted by: PATRICIA L. TEMPLE Planning Director Exhibits Prepared by: CHANDRA SLAVEN Assistant Planner fi Resolution No. 2002 -_; findings of approval and conditions 2. Police Department report 3. Reporting District map 4. Project plans for Use Permit Nos. 2002 -048 and 2002 -049 Tony Roman's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 13 of 14 Parking plans for Use Permit Nos. 2002 -048 and 2002 -049 6. Valet Parking Plan Calculation and Valet Plan 7. Use Permit No. 3086 (Amended) Site Plan 8. Use Permit No 3086 (Amended) Parking Plans 9. Applicant's letters of support from other tenant Tony Roman's (PA2002 -237) and Bennigan's (PA2002 -238) February 20, 2003 Page 14 of 14 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH APPROVING USE PERMIT NOS. 2002 -048 (PA2002 -237) AND 2002 -049 (PA2002 -038) FOR PROPERTY LOCATED AT 2901 WEST COAST HIGHWAY, SUITES 170 AND 180. THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS: Section 1. An application was filed by Ferdinand Fam, with respect to property located at 2901 West Coast Highway, Suites 170 and 180, and legally described as Parcel 1 of PM 84 -700 (Resubdivision No. 779), requesting approval of Use Permit Nos. 2002 -048 and 2002 -049 to allow two Full- Service, High Turnover Eating and Drinking Establishments, the sale of alcoholic beverages (Type 47 license On -Sale General- Restaurant) for on -site consumption pursuant to the Alcoholic Beverage Outlet Ordinance (ABO) and approval of a modification to the parking requirements. The site is designated Recreational and Marine Commercial by the General Plan Land Use Element and Recreational Marine Commercial District - Mariner's Mile Overlay (RMC - MM) by the Zoning Code. Section 2. A public hearing was held on February 20, 2003 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the aforesaid meeting was given. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting. Section 3. The Planning Commission finds as follows: 1. The City's General Plan designates the site as Recreational and Marine Commercial. The Recreational and Marine Commercial category is applied to waterfront commercial areas where the City wishes to preserve and encourage uses, which facilitate a marine commercial and visitor serving uses. Operations, within these broad categories, include visitor - serving commercial (social clubs, hotels, restaurants, etc.). Therefore, the applicant's request for restaurants is consistent with the RMC General Plan designation. The Zoning Code designates the site as Retail Marine Commercial (RMC -MM) District - Mariner's Mile Overlay. This designation preserves and encourages uses with a marine commercial and visitor serving orientation in waterfront areas. Eating and Drinking Establishments are allowed within this designation with a use permit. The Mariner's Mile Strategic Vision Design Framework encourages diverse economic development within the area along with serving visitors to the City. The proposed restaurants are consistent with the Mariner's Mile Strategic Design Framework and Zoning Designation for this site. 2. The proposed Eating and Drinking Establishment with alcohol service (Type 47 license), and the proposed conditions under which it would be operated or maintained, is consistent with the General Plan and the purpose of the district in which the site is located; will not be detrimental to the public health, safety, peace, morals, comfort, or welfare of persons residing or working in or adjacent to the neighborhood of such use; i1 City of Newport Beach Planning Commission Resolution No. Paae 2 of 8 and will not be detrimental to the properties or improvements in the vicinity or to the general welfare of the City for the following reasons: a. here will be walk -in traffic from surrounding uses to the north and south of the project site, thereby reducing vehicular traffic and parking demand to the restaurants; b. The convenience of the public can be served by the sale of desired beverages in conjunction with a full-service, sit -down restaurant that is complementary to surrounding uses within Mariner's Mile. Alcohol service is typical and expected by the public in a full - service restaurant setting; c. The crime rate in the police reporting district and adjacent reporting districts is not likely to increase because of the proposed use; d. The number of alcohol licenses within the report district and adjacent reporting districts is not significantly high given the nature of the land uses in the district and when compared with County -wide data. The percentage of alcohol - related arrests in the police - reporting district in which the project is proposed is higher than the percentage citywide. Minor on -site consumption is not expected to increase alcoholic related crime; e. There are no sensitive uses such as residences, day care centers, schools, or park and recreation facilities in the vicinity of the project site; The Use Permit pertains to the sale of alcoholic beverages for on -site consumption to be operated in a building that is designated and zoned for commercial activity. The use has been conditioned in such a manner to minimize the impacts associated with the sale of alcoholic beverages. The plans, as conditioned, meet the design and development standards for alcoholic sales. 3. The required findings for granting a parking modification for parking standards can be made for the following reasons: a. The hours of operation of the proposed restaurant, office and retail uses are such as to allow shared use of the on -site and off -site parking lots when shared usage occurs between a mixture of uses, parking demand is typically lower than is required. The site and the proposed use will operate in a manner to afford a sharing of parking with other uses (with different hours) located on the site; b. A parking management plan using valet parking and an off -site parking lot has been prepared or approved; c. The existing number of compact car and tandem spaces has been approved by the City Traffic Engineer by virtue of being approved in a previous parking plan in 1988. I City of Newport Beach Planning Commission Resolution No. Paqe 3 of 8 d. The use of (compact car spaces and a valet parking service) will not under the circumstances of this particular case, be detrimental to the health, safety, peace, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City and further that the proposed modification is consistent with the legislative intent of Title 20 of this Code. e. The proposed restaurants will be less intense in terms of on -site, on- street, and off -site parking needs in comparison to past restaurants at the same development site. I. The hours of operation of the proposed restaurant, office and retail uses are such as to allow shared use of the on -site and off -site parking lots. 4. The project has been reviewed, and it qualifies for a categorical exemption pursuant to the California Environmental Quality Act under Class 1 (Minor Alteration of Existing Structures). This categorical exemption allows for the repair, maintenance and minor aftemation of an existing building, such as this one. This exemption includes interior and exterior alterations. Section 4. Based on the aforementioned findings, the Planning Commission hereby approves Use Permit Nos. 2002 -048 and 2002 -049, subject to the Conditions set forth in Exhibit "A Section 5. This action shall become final and effective fourteen days after the adoption of this Resolution unless within such time an appeal is filed with the City Clerk or this action is called for review by the City Council in accordance with the provisions of Title 20, Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED AND ADOPTED THIS 20th DAY OF FEBRUARY 2003. AYES: NOES: BY: Steven Kiser, Chairman BY: Shant Agajanian, Secretary II City of Newport Beach Planning Commission Resolution No. Page 4 of 8 EXHIBIT "A" CONDITIONS OF APPROVAL USE PERMIT NOS. 2002 -048 AND 2002 -049 1. The development shall be in substantial conformance with the approved floor plans dated October 31, 2002 and parking plans dated February 6, 2003. 2. Use Permit Nos. 2002 -048 and 2002 -049 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.91.050 of the Newport Beach Municipal Code, unless an extension is otherwise granted. 3. The applicant is required to obtain all applicable permits from the City Building and Fire Departments. The construction plans must comply with the most recent, City- adopted version of the California Building Code. The construction plans must meet all applicable State Disabilities Access requirements. Adequate access and exiting must be provided in accordance with the Building Code. Specifically, approval from the Orange County Health Department is required prior to permit issuance. A grease interceptor of adequate size may be required in association with food preparation activities pursuant to the Building Code. The number of plumbing fixtures in the two public restrooms shall comply with the Uniform Building Code (Appendix 29A). 4. Hours of operation for "restaurant 1" (Tony Roma's) shall be 11:00 am to 10:00 pm Sunday through Thursday and 11:00 am to midnight Friday, Saturday and holidays. Hours of operation for "restaurant 2" (Bennigan's) shall be from 6:00 am to midnight Sunday through Thursday and 11:00 am to 1:00 am Friday, Saturday and holidays. The hours of operation for the outdoor dining area shall have a closing time of 11:00 pm for both restaurants. 5. All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages. The certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying/licensing body, which the State may designate. The establishment shall comply with the requirements of this section within 180 days of the issuance of the certificate of occupancy. Records of each owner's, manager's and employee's successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 6. Live entertainment and dancing by patrons may be allowed subject to obtaining a Live Entertainment and/or Cafe Dance permit. Any recorded background music or music from possible live entertainment activities shall be limited to indoor areas only. The City Manager shall require the preparation of an acoustical study and shall require implementation of any necessary sound attenuation or control measures. Live entertainment and/or dancing shall remain subordinate to the primary use, which is an Eating and Drinking Establishment or restaurant. �b City of Newport Beach Planning Commission Resolution No. Pape 5 of 8 7. The Use Permit is for an Eating and Drinking Establishment or restaurant and does not authorize the use or operation of a bar, tavern, cocktail lounge, nightclub or commercial recreational entertainment venue. 8. Full meal service shall be provided during all hours of operation. 9. Any change in operational characteristics, hours of operation, expansion in area, or operation characteristics, or other modification to the floor plan, shall require an amendment to this Use Permit or the processing of a new Use Permit. 10. Should this business or either alcohol license be sold or otherwise come under different ownership or control, any future owners, operators or assignees shall be notified of the conditions of this approval by either the current owner /operator. Future owners, operators or assignees shall submit, within 30 days of transfer or sale of the business or alcohol license, a letter to the Planning Department acknowledging their receipt and acceptance of the limitations, restrictions and conditions of approval of this Use Permit. 11. The Planning Commission may add to or modify conditions of approval to this Use Permit or recommend to the City Council the revocation of this Use Permit upon a determination that the operation, which is the subject of this Use Permit, causes injury, or is detrimental to the health, safety, peace, morals, comfort, or general welfare of the community. 12. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. The refuse storage facilities should be maintained within the interior parking structure (first floor level) and shall be screened from public view at all times and shall not be located in any required parking spaces. 13. The alcoholic beverage outlet operator shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks and areas surrounding the alcoholic beverage outlet and adjacent properties during business hours, if directly related to the patrons of the subject alcoholic beverage outlet. If the operator fails to discourage or correct nuisances, the Planning Commission may review, modify or revoke this Use Permit in accordance with Chapter 20.96 of the Zoning Code. 14. The type of alcoholic beverage license issued by the California Board of Alcoholic Beverage Control shall be a Type 47 for full alcohol service for on -site consumption only, and only in conjunction with the service of food as the principal use of the facility. The consumption of alcoholic beverages shall be limited to the interior of the restaurants and the outdoor dining areas only. The sale for off -site consumption of alcoholic beverages is prohibited. Any upgrade in the alcoholic beverage license shall be subject to the approval of an amendment to this application and may require the approval of the Planning Commission. 0111 City of Newport Beach Planning Commission Resolution No. Paae 6 of 8 15. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use will be cause for revocation of this Permit. 16. This Use Permit may be modified or revoked by the City Council or Planning Commission should they determine that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 17. A Special Events Permit is required for any event or promotional activity outside the normal operational characteristics of this restaurant business that would attract large crowds, involve the sale of alcoholic beverages, include any form of on -site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 18. Any event or activity staged by an outside promoter or entity, where the restaurant owner or his employees or representatives share in any profits, or pay any percentage or commission to a promoter or any other person based upon money collected as a door charge, cover charge or any other form of admission charge, including minimum drink orders or sale of drinks is prohibited. 19. The operator of the facility shall be responsible for the control of noise generated by the subject facility. The noise generated by the proposed use shall comply with the provisions of Chapter 10.26 of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: KII No "happy hour" type of reduced price alcoholic beverage promotion shall be allowed except when served in conjunction with food ordered from the full service menu. 21. There shall be no exterior advertising or signs of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages or signs that are clearly visible to the exterior shall constitute a violation of this condition. al Between the hours of Between the hours of 7:OOAM and 10:00PM and 10:OOPM TOOAM Location Interior I Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial 45dBA 60dBA 45dBA 50dBA property Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA No "happy hour" type of reduced price alcoholic beverage promotion shall be allowed except when served in conjunction with food ordered from the full service menu. 21. There shall be no exterior advertising or signs of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages or signs that are clearly visible to the exterior shall constitute a violation of this condition. al City of Newport Beach Planning Commission Resolution No. Paoe 7 of 8 22. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food during the same period. The licensee shall maintain records that reflect separately the gross sale of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept no less frequently than on a quarterly basis and shall be made available to the Department on demand. 24. Prior to issuance of a Building Permit, plans for the outdoor patio dining area for each restaurant shall be reviewed and approved by the Planning staff. A maximum number of 25 tables shall be permitted for the "restaurant 1" outdoor dining area. A maximum number of 18 tables shall be permitted for the "restaurant 2" outdoor dining area. The outdoor dining areas shall be required to drain into the adjacent landscaping and shall not drain into the storm drain system. The perimeter of the patio outdoor dining areas shall be secured by a railing; final material, height, and location of the fence shall be subject to approval by the Building/Planning staff. The material and color of any awning or umbrella situated within the outdoor patio dining areas shall be subject to review and approval by Planning staff. No form of advertisement shall be placed on an awning, umbrella or elsewhere in the outdoor patio dining areas. The outdoor patio dining areas, including any awning or umbrella, shall be maintained in a neat and clean condition at all times. 25. Prior to issuance of a Building Permit, the proposed use shall comply with all federal, state, and local laws regulating accessibility requirements for handicapped persons, including handicapped parking spaces, to the satisfaction of the City's Traffic Engineer and Building Department. These stalls shall be properly labeled and dimensioned on the site plan. The number of handicapped parking spaces shall equal those required under California State handicapped provisions or other applicable laws or regulations. 26. Prior to issuance of a Building Permit, the applicant shall prepare a final parking management plan subject to review and approval by the City Traffic Engineer. The plan shall reflect the City Traffic Engineer's comments concerning correct dimensions and the loss of particular parking spaces due to City Code. The parking management plan shall include parking roles for all tenants. The parking management plan shall also include a statement that no recreational vehicles, boats, or similar vehicles shall be stored any time at the subject site. The applicant shall comply with all of the City's property maintenance laws and ordinances. The parking management plan shall be implemented at all times. 27. All parking in conjunction with this use shall be confined to the parking lots over which the applicant has rights to park. If, in the opinion of the Planning Director, the proposed use creates parking congestion at the site, or valet parking is ineffective, the applicant shall immediately resolve the congestion problem by reducing attendance until the parking congestion is eliminated and parking is properly managed on the site. 28. A minimum of one parking space /40 sq. ft. of "net public area" shall be provided for the restaurants. The total parking requirement for the site, including off -site parking, shall be 257 spaces. City of Newport Beach Planning Commission Resolution No. Page 8 of 8 29. The Valet Plan shall be approved by the City Traffic Engineer prior to occupancy and the valet parking service shall be provided at all times during the restaurants' hours of operation. Valet attendants must remain on the premises until all patron vehicles have exited the parking lot. 30. The valet parking service shall be conducted in a manner which shall not block traffic on West Coast Highway and further, should access to the site be temporarily blocked due to vehicles entering the valet staging area, valets shall be required to motion vehicles past the driveway entrance so as not to block traffic within Coast Highway. The valet spaces allowed in the circular driveway are "temporary' and shall serve only for a valet staging. 31. A permanent valet attendant shall be stationed on the off -site lot during all times of operation for monitoring of both the compact car and valet spaces. Under no circumstance, shall an attendant be crossing Coast Highway to provide valet services between the two sites. 32. All spaces, both on -site and off -site, must be accurately striped on the pavement denoting whether the space is for handicap, valet, or compact car parking. Each valet space shall be labeled appropriately. 33. All restaurant employees shall park their cars in the designated spaces in the off -site lot. 34. All proposed signs shall be in conformance with the provision of Chapter 20.42 and Chapter 20.67 of the Newport Beach Municipal Code and shall be approved by the City Traffic Engineer if located adjacent to the vehicular ingress and egress. �q City of Newport Beach Police Department Memorandum February 4, 2003 TO: Chandra Slaven, Staff Planner FROM: CSO Susan Seviane SUBJECT: Tony Roma's and Bennigan's (2901 W. Coast Hwy, Newport Beach) At your request, our office has examined the commission review plan for a combined application for two restaurant operations within the same building. "Restaurant 1" (Tony Roma's) and "restaurant 2" (Bennigan's) are located at 2901 W. Coast Hwy., Suites 270 and 280, Newport Beach. The proposed "restaurant 1" (Tony Roma's Ribs and Burgers) will have a total restaurant area of approximately 6,000 square feet including a patio area of approximately. 1,267 square feet. "Restaurant 2" (Bennigan's Steak and Seafood) will have a total restaurant area of approximately 5,590 square feet including a patio area of approximately 932 square feet. Both restaurants will be housed on the second floor only of the three -floor building (formerly the John Dominis location). According to Mr. Ferdinand Fam, managing partner, they would like increase the outdoor patio area by moving the exterior wall into the building. They are proposing the installation of a low glass wall/railing and clear plastic pull down dividers to control noise and provide protection from the weather. The patio will have a barrier to separate the two restaurant operations. Additionally, the applicant is proposing a valet parking plan for both of the restaurants. They would like to have pre- recorded background music inside and outside the restaurants. There are also plans to eventually provide catering services for the nearby businesses. According to Mr. Robert Lounsbury, Project Manager, once the Planning Commission has approved the Use Permit, the applicant will apply for two premise -to- premise transfers of Type 47 (On -Sale General- Eating) Place licenses with the Department of Alcoholic Beverage Control. For police services information refer to the attached report by Crime Analyst Paul Salenko. Applicant History: The operator of the proposed Tony Roma's is a local Newport Beach resident and currently operates 23 other Bennigan's, Tony Roma's and Carrows in California, Arizona, New Mexico and Texas. Siens and Displays: Mr. Ferdinand Fam was advised that any signs and displays would need to conform. to city requirements. Hours of Operation: According to Mr. Fam, `restaurant 1" (Tony Roma's) the intended hours of operation are from 11:00 AM to 10:00 PM Sunday through Thursday and 11:00 AM to midnight Friday, Saturday and holidays. "Restaurant 2" (Bennigan's) the intended hours of operation are from 11:00 AM to midnight Sunday aI Through Thursday and 11:00 AM to 1:00 AM Friday, Saturday and holidays. The Police Department recommends a 10:00 PM closing time for the patio in order to minimize potential noise - related impacts for the adjacent residential area (see our comments under Preventive Design below). Security: Mr. Fam stated there would be an alarm system. Employee Trainin¢: Require all owners, managers and employees serving and/or selling alcoholic beverages to undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcohol beverages. Additional Comments: Traffic Queuing on PCH- It has been our experience at this location that during peak activity times, traffic ingress to the parking facility at the location can result in cars queuing along PCH while waiting for valet parking services. This can create a traffic hazard and negatively impact traffic movement along the highway. Any valet parking plan should address this issue. Harbor Cruise Operations- It is our understanding that several harbor cruise operators birth in front of arcing they will continue to operate from this location. The capacity of these harbor cruise vessels is significant and can have an impact on parking, pedestrian ingress and regress, and noise generate from the area. Additionally, since these cruises are chartered, their operating hours may not be predictable for planning and assessment purposes as it relates to this project. Such impacts need to be factored into the traffic and parking analysis and plans. Patio Noise- As we has been our experience with other waterfront restaurant business operations, noise generated from the outside patios by patrons, recorded music, paging systems, etc. can travel across the by and disturb area residents. Such events can result in calls for police services to address the disturbance. We recommend appropriate mitigation measures to control patio noise. If the patio noise can be contained to prevent such disturbances, the 10:00 PM patio closing time would not be considered an important factor. c� a Outside of these issues, the Police Department has no objections to the basic restaurant operations as described by the applicant. Upon Use Permit approval, we will condition the ABC license as necessary to maintain the health, safety and welfare of the community. In addition the Police Department believes the following conditions would be appropriate for the Conditional Use Permit for the business: 1. Approval does not permit the premises to operate as a bar tavern, cocktail lounge or nightclub as defined by the Municipal Code, unless the Planning Commission first approves a Use Permit. 2. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the license. 3. The delivery of alcoholic beverages for consumptions off premises is prohibited. This recommendation is not intended to prohibit any authorized off -site catering services. 4. No "happy hour" type of reduced price alcoholic beverage promotion shall be allowed except when served in conjunction with food ordered from the full service menu. 5. There shall be no exterior advertising or signs of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages or signs that are clearly visible to the exterior shall constitute a violation of this condition. 6. Petitioner shall not share any profits, or pay any percentage or commission to a promoter or any other person, based upon moneys collected as a door charge, cover charge, or any other form of admission charge, including minimum drink orders or the sale of drinks. 7. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food during the same period. The licensee shall at all time maintain records that reflect separately the gross sale of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept no less frequently than on a quarterly basis and shall be made available to the Department on demand. 8. There shall be no on -site radio, television, video, film or other electronic media broadcasts, including recordings for the broadcast at a later time, which include the service of alcoholic beverages, without first obtaining an approved Special Event Permit as issued by the City of Newport Beach. 9. At all times when the premises is open for business, the premises shall be maintained as a bona fide restaurant and shall provide a menu containing an assortment of foods normally offered in such restaurants. 10. There shall be no dancing allowed on the premises. 11. For the purposes of this application, staff may also want to consider establishing a conditions that would require a Special Event Permit. A Special Event Permit may be required for any event or promotional activity outside the normal operational characteristics of the proposed operation. For example, events likely to attract large crowds, or events for which an admission fee is charged, those that include any form of on -site media broadcast (live or taped for future broadcast), any a event produced by third -party or contract promoters, or any other activities as specified in the Newport Beach Municipal Code to require such permits. It may also be appropriate to establish conditions that would address possible fixture uses in the event this business evolves towards a traditional bar -type establishment. 12. There shall be no live entertainment of any type on the premises at any time. 13. The licensee shall not permit "Taxi Dancing" to occur on the licensed premises wherein partners are provided for dancing or social purposes. Social purposes include but are not limited to the soliciting or accepting of any alcoholic beverages from any customers while in the premises. 14. Because of public access that may impact loitering, the applicant(s) shall post and maintain a professional quality sign facing the premises parking lot(s) that reads as follows: NO LOITERING, NO LITTERING NO DRINKING OF ALCOHOLIC BEVERAGES VIOLATORS ARE SUBJECT TO ARREST The sign shall be at least two feet square with two inch block lettering. If you may have any questions, please do not hesitate to contact me at (949) 644 -3705. CSO Susan Seviane Vice and Intelligence Unit �ib EXHIBIT 3 REPORTING DISTRICT MAP 3' EXHIBIT 4 PROJECT PLANS FOR USE PERMIT NOS. 2002 -048 AND 2002 -049 55 N irv' 4 49444P ' IF +�aF. ate —� rr-FFllrF,rr FF Fr' rw r Ei•� ! F 7 r[ itrr�r r�i# il. r rrrrr.rr rrr ; A rrrrrrrr rr a � rrrrrrr rr I 1 �`i i • nwtr � 9' dill, �a i! E a 661 S j" RIVERSIDE i. -• -+ AVENUE t + i i i99atl� Hl1� � i �Na i of IN [!l e nlxp p L L1'.a�:+.,.+la:qu•usrax.fli5 Q _ I _ oil III ......mN,� e �E - '- -• -- ..PLOT PL.- Ari-!�r,+:.... .�. NEWMT BEACH, CNfEflNIA C11NU B(:. _ �NVft' fERDIxAND fAM. ••+iN EXHIBIT 5 PARKING PLANS FOR USE PERMIT NOS. 2002 -048 AND 2002 -049 ffil ilk zg w4� g lno -AVi 131vn �p b� N�tl391LOdM3N ooN a �RWR'9YwnWelol NEm ri'aaixan 'AMN 15Vtt1'JIdIJrd M 106Z /M`)NINNtld JNIISIX3 9 I isrews'ou'isi 3"r suuvd me O'T11tlOdIININONltl31YM ;1 = F gI X i�uxomsmnodovr3namdramurm I i 3 W f 3s, i �i U z ¢'e a! o� a� d :P —1 ®l f-1 LJy _5 5 S L L L b _ R T121 S fit y�g� uo t2 a a� @ pp F �!u_* aT4 IL�ff:tll d 1jL --ei11 14 ue �-§ �� L J. zg w4� g �p ooN 3 f-1 LJy _5 5 S L L L b _ R T121 S fit y�g� uo t2 a a� @ pp F �!u_* aT4 IL�ff:tll d 1jL --ei11 14 ue �-§ �� L J. ?'e — TAT —Tn�'1 YI ®Y g — TAT —Tn�'1 YI EXHIBIT 6 VALET PARKING PLAN CALCULATION AND VALET PLAN ��3 Waterfront Newport Beach 2901 West Coast Highway, Newport Beach, Calffomia 92663 Valet Parking Plan Calculation Building Parkins Reauirernerds: Building Office space (37,762 at 1250sf per space) 151 spaces Two restaurants in about 11,690 at. requiring 178 spaces (see architect's pans for public area calculaCOrm) Marina Slip Requirements 6 spaces Total requirement for above spaces is spaces Buildina Parking Provided: (Sea P -1 and exhibits Al. A2. A3, A41 Standard Handicap Compact Valet Tote) Spaces Spaces Spaces Spaces Spaces At building: tat Floor 28 7 11 6 52 Basement 64 - 20 33 137 Total Provided at building 112 7 31 39 189 At Riverside Surface parking 45 - 13 10 88 Total Provided: 157:1- ::24 -0:P.. 49 ::e21{T Number Parkinn Plan: of Valet :: Re aired: Offices only 151 Attendants (morning) Restaurant (Bennigan's only) 96 Marina 6 Total Required Provided Valet at building antl!Rlvenitlelot .' -- 4 excese.spaces ? 2to Reautred: ORkes 151 (day) Restaurants 178 Marine 6 Total required a� Provided Total available Valertat building antl.RNarsitle lot 5Wil arking Modfncatlon Nestled Here Required: Offices, eat mm 32% of 151 48 (evening) Restaurants 178 Marina 6 Total required Provided: Total provided Valat at buildin and Rivetsitlelat7 26 excess spaces Note: On Friday, valet till tAM Sat Sii- Su:!6A511Ai Required: Offices est. max 32% of 151 48 Marina 6 Total Required Provided: No Valet.Neceasa - :.: 1611 excess sp tces Be: 11A-1A - Required: Offices est. max 32% of 151 48 Restaurants 178 Marina 6 Total required Provided: Total provided Valet at buildinct and Rlverafdelot _:.. 25 excess spaces r7 4t6-6 PROPOSAL For The Management And Operation Of The Parking Facility At: Waterfront Newport Beach Newport Beach, California Presented To: Mr. Ferdinand Fam Valet Parking Service 10555 Jefferson Boulevard Culver City, California 90232 (310) 836 -3388 a!D 1 November 7, 2002 i Mr. Ferdinand Fam Waterfront Newport Beach, LLC 2895 Royston Place Beverly Hills, CA 90210 IRe: Proposal to Manage and Operate the Waterfront Newport Beach Parking Facility Dear Mr. Fam: As per our recent discussion, Valet Parking Service is pleased to submit herein our proposal for the management and operation of the Waterfront Newport Beach parking facility. Our company is celebrating its fifty -sixth year in the parking management business. Founded in the city of Beverly Hills in 1946, we are pleased to state that we have grown to over one hundred seventy locations and seventeen hundred plus employees and still have our very first account. We are very proud of the many long standing accounts included in our portfolio because, in this very competitive environment, it is a clear indication of our continued ability to perform. We believe that Valet Parking Service is uniquely qualified to enhance the management productivity and profitability of the Waterfront Newport Beach parking facility. Our ktrowledge. experience and expertise in customer service is augmented by the high level of revenue control continuously emphasized by our company. Currently, we employ sir (6) full-time field auditors whose sole responsibilities are to continuously audit our commercial facilities. As you know, once you stop auditing, revenue control problems tend to develop. Additionally, we contract with an outside service audit company, W.F. Orilio & Associates, to continuously spend time at our facilities and report back to us and yourselves, their findings. We very much look forward to showing you, your tenants and visitors the difference when Valet Parking Service manages your parking program. Our style and presentation, coupled with our 56 years of experience, will make the Waterfront Newport Beach one of the best parking experiences in southern California. As you can see from the reference section of this proposal, we currently operate some of the finest office buildings in southern California. In addition to these, we provide the valet parking for the Academy Awards, the Emmy Awards, the Golden Globe Awards and all of the events at the Pasadena Civic Auditorium. 10555 Jefferson Boulevard • Culver City, Californa 90232 • (310) 856 -3388 • (800) 794 -P.AaK • FAX (310) 815 -1460 # We currently manage the following office building parking facilities, to name but a few: • 9465 Wilshire Boulevard (Bank of America Building) • 265 N. Beverly Drive • Beverly Mercedes Place (Playboy Headquarters) • 9350 Wilshire Boulevard • 9300 Wilshire Boulevard • 9320 Wilshire Boulevard • Two Rodeo • 221 N. Canon Drive • 249 N. Canon Drive • 3250 Wilshire Boulevard • Beverly Mercedes Place • 1800 N. Vine • 6330 San Vicente Boulevard • 6310 San Vicente Boulevard The three significant factors in operating a well run parking facility are: service to the customer, management of systems and personnel and accountability to property management/ownership. A common fallacy is that in order to provide first class service you must, at times, sacrifice accountability. Not true. Valet Parking Service places considerable emphasis on revenue control accountability and has one of the finest audit departments in the industry. All parking facilities must be routinely. audited to ensure that the proper amount of revenue is collected and deposited. If Valet Parking Services manages the Waterfront Newport Beach parking facility, we will design a comprehensive audit program specific to your needs. Thank you for the opportunity to present our proposal to you. Please feel free to contact meat any time should you have any questions or comments. Sincerely, Steve Picard Regional Manager I i Table of Contents 5� A. HISTORY AND PHILOSOPHY ............................... i Organization .......... ............................... 1 Personnel ............ ............................... 2 Staffing, Supervision and Supplies ............................ 2 B. REFERENCES /CLIENT LISTING ............................... 3 C. ORGANIZATION AND SUPPORT CAPABILITIES ................... 9 D. EXPERIENCE ........... ............................... 11. Experience with On -line Revenue Control Systems ................ 12 Consulting Capability .... ............................... 13 E. QUALITY CONTROL AND TRAINING ........................ 14 First Class Operation .... ............................... 14 Customer Service ...... ............................... 14 F. INSURANCE AND CLAIMS . ............................... Coverage ............ ............................... 16 16 Claims............. ............................... 17 G. REPORTS AND AUDIT PROCEDURES ........................ 18 Daily Lot Income Controls ............................... 18 Bank Deposits of Daily Location Income ....................... 18 Monthly Parking and Validation Book Sales ..................... 18 Audit Procedures ....... ............................... 18 Landowner Statements ... ............................... 22 Revenue Control ....... ..........:.................... 22 Financial Reports ...... ............................... 23 H. SAMPLE MANAGEMENT AGREEMENT ....................... 24 I. STAFFING PLAN ........ ............................... 31 J. PLAN OF OPERATION ..... ............................... 32 K. MANAGEMENT PROPOSAL ............................... 33 5� A. HISTORY AND PHILOSOPHY ' Founded on May 1, 1946, our very first account was the world renowned Lawry's, The Prime Rib on La Cienega Boulevard (Restaurant Row) in Los Angeles. We are very proud to state that fifty -six years later we still manage this account, parking hundreds of cars per day in their new subterranean garage. There is only one reason for that unbroken record: consistent high quality service. Throughout the years our name has become synonymous with first class service throughout the greater Los Angeles area and beyond (Seattle, Las Vegas and Northern California). Today, Valet Parking Service is one of the oldest full service parking companies in the nation with over 170 locations and over seventeen hundred employees. We operate every style of parking, i.e. valet, attendant - assist, self - park in all types of facilities, i.e., surface lots, subterranean parking garages, above grade parking structures. Contained within our portfolio are many well known restaurants and hotels, as well as, commercial office buildings, medical centers & hospitals, airports, country clubs, shopping centers and condominiums. IAll of our experience and resources enure to your benefit when contracting with our 1 51 If there is one overriding philosophy in our company it is that "We Are People Serving People. " Our corporate and operating staff know that to maintain a client you must serve that client's needs. You must handle his business, customers and money as if they were your own. All of our training, personnel and systems are directed toward that goal. Organization The company's executive, management and supervisory staff have many years experience in the parking business. The Chairman, President and Vice President of Operations have over one hundred combined years in the parking business. Many of our District Managers and Location Managers have between twenty and twenty five years experience, the majority of the time having been spent with Valet Parking Service. As a full service parking company, we are comprised of the following departments: Management and Operations Accounting and Auditing Human Resources and Personnel Quality Control and Training Customer Service and Claims Sales and Marketing Special Events Consulting Services IAll of our experience and resources enure to your benefit when contracting with our 1 51 company. You will receive the ongoing and continuous benefit of having contracted with a company that has tremendous knowledge and resources and is up -to -date on all issues that affect the parking industry. Personnel As stated earlier our motto is "We Are People Serving People;" we believe it and we practice it every day. Our company has devoted considerable time, effort and money developing a training, customer service, audit and safety program that is unrivaled in the parking business. All personnel meet the legal requirements mandated by the state of California and must pass our training program prior to being hired. The training program includes three hours of classroom time and two hours in the company's parking lot. Personnel are taught and evaluated on their driving skills, safety habits and communications ability. The classes are held every Friday at our corporate office and you are most welcome to visit and see first hand the intensity and quality of our training program. Additionally, a tri -county criminal background check is performed on all new employees. Staffine. Suvervision and Sullies j As part of your contract with Valet Parking Service a complete schedule with job ■ descriptions is provided. You are guaranteed the number of personnel necessary to ensure first class and efficient service. Because of the size of our company and the large roster of personnel we maintain, additional personnel are always available to cover any special needs, i.e. special events, emergencies, absenteeism, etc. All personnel are fully uniformed at all times and are trained to courteously greet the patrons upon arrival and departure. Additionally, a District Manager is assigned to the location and part of his duties are to visit the location often and to see you or your designee regularly. The District Manager and /or the Evening and Weekend Supervisor are available at all times to respond to any needs the location or you may have. All field supervisory personnel have vehicle phones, pagers, and there is a 24 -hour phone service to handle any emergency. Valet Parking Service is an equal opportunity employer, and abides by all the rules and regulations imposed by Federal and State agencies. Our "Employee Handbook ", clearly defines all the rules and regulations imposed by law and references all the current legislation, such as Immigration Reform, SB 198, and the Americans with Disability Act. I 5d--, I �J I I I I I I I I & REFERENCES Experience is a very important factor to consider when searching for a parking company to manage and operate your parking facility. Parking service is generally divided into three major specialties: self - parking, attendant - assisted parking and, of course, valet. Although we are renowned for our superior valet service, we are proud to assert that Valet Parking Service has offered, over the past 56 years, all three major services. A successful parking facility is reliant on a combination of extensive experience and proper employee training reinforced with adequate and coordinated supervision. Below we have listed some selected accounts, by category and vehicle capacity. Please feel free to contact any of the representatives of these companies for references. Building. Number ', Client, J Contact Client Telephone Name of -Name - Address. Number (if any) Parking . Stalts One 850 Realtech Leasing Judy Chung 3250 Wilshire Blvd. (213) Park and Property Manager Los Angeles 487 -4444 Plaza Management California Maple 1100 Realtech Leasing Jeff Butikoffer 345 N. Maple Dr. (310) Plaza and Controller Beverly Hills 271 -7362 Management California Grand 100 Personalized Peggy Kahn 451 N. Canon Dr. (310) Passage Property Senior Associate Beverly Hills 273 -78.8 Management California Century 700 Realtech Leasing Jeff Butikot %r 2080 Century Park East (310) City and Controller Los Angeles 553 -5116 Medical Management California Forum 150 Forum Shops at Richard Sperber 3500 S. Las Vegas Bl. (702) Shops at Caesars Palace Director of Operations Las Vegas 893 -4800 Caesars Hotel and Casino Nevada Two 700 Madison Wendy Bemkoski 9480 Dayton Way (310) Rodeo Marquette Property Manager Beverly Hills 247.7040 California Weybur 28 Madison Sandra Sigman 1100 Glendon Avenue (310) n Marquette Property Manager Los Angeles 443 -7500 Lot I . California 3 1 53 ii I Building Number Client Contact Client Telephone Name of Name. Address Number (if any) Parking Stalls 21-1/249 125 I Crescent Ron Davidovits 9350 Wilshire Blvd. (310) North Wilshire Assoc. Property Manager Beverly Hills 273 -1308 Canon California Macy's 900 Madison Sandra Sigman 1100 Glendon Avenue (310) Lot Marquette Property Manager Los Angeles 443 -7500 California Santa 450 Timber Rock Jay Yeyna 1437 Seventh Street (310) Monica Property Manager Santa ,Monica 829 -1830 Medical California Sony 1500 Sony Lynn Peters 10000 Washington Bl.. (310) Pictures Entertainment Security Culver City 2446574 Plaza Administrator California Culver 1100 Sony Lynn Peters 10000 Washington Bl. (310) Studios Entertainment Security Culver City 244 -6574 Office Administrator California Bank 1000 Beverly Wilshire Georges Marciano 9465 Wilshire Bl. (310) of Properties Owner Beverly Hills 274 -4446 America California Charter 400 Beverly Wilshire Georges Marciano 9465 Wilshire Bl. (310) Bank Properties Owner Beverlv Hills 274 :.4:6 �aliforttia 300 Ventura Linda Wallace 157:0 Ventura Blvd. (818) NIA I Investments Property Manager Encino 789.3785 Corn anv California 421.429 500 I Hillcrest David Maffit 9777 Wilshire Blvd. (310) N. Beverly International Property Manager Beveriv Hills 888 -1882 Ente rises California Mlramax 75 Investment Patrick Spillane 2040 Ave. Of the Stars (310) Bldg. Development Vice President Los Angeles 556- 1096 Services California Wells 275 Crescent Ron Davidovits 9350 Wilshire Blvd. (310) Fargo Wilshire Assoc. Property Manager Beverly Hills 273 -1308 Bank California Beverly 400 P9I Realty Group Dionne Mulcahy 9242 Beverlv Blvd. (949) Mercedes Property Manager Beverly Hills 794 -1714 Place California E I Building .Number Client Contact Client Telephone Name of Name Address Number (if any) .Parking . Stalls City 335 City Marie Castellanos 400 North Roxbury (310) National National Beverly Hills 888 -6450 Bank Bank California New 200 Santee Young Kim 8383 Wilshire Blvd. (213) Alley Place Property Manager Beverly Hills 743 -1335 Plaza California North 275 North Ran Davidovits 9350 Wilshire Blvd. (310) Vine Vine Assoc. Property Manager Beverly Hills 273 -1308 Tower California Burbank 500 Burbank Randy Berg 2627 Hollywood way (818) Airport Airport Deputy Director Burbank 840 -8847 Authority California ABC 400 Tooley Patti Maude 2040 Ave of the Stars (310) Enter- and Property Manager Cenurry City 556 -3096 tainment Companv California Gateway 800 Topa Brad Geinger 1800 Ave. of the Stars (310) East Management Vice President Ccnmry City 203 -9199 California Museum too Museum Rebecca Faez 465 N. Beverly Dr. (310) of T.V. of T.V. Property Manager Beverly Hills 786 -1099 & Radio & Radio California Wash. 400 Washington Dennis Smith 310 Norrh Fairfax (2i3) Mutual Mutual General Manager Los Angeles 852 -3317 California La 330 B.H. Golden Hortnoz Faryab 9460 Wilshire Blvd. (3t0) Colonade Triangle Manager Beverly Hills 788 -5858 Bide. California Beverly 225 Beverly Bonnie Fuller 8737 Beverly Blvd. (213) Medical Medical Center General Manager Los Angeles 930 -2445 Center Associates California Calif. 100 Overland Frank Rahban 10680 West Pico (310) Federal investment General Manager Los Angeles 559 -0850 S &L Company California 3110 300 Coreland Tracey Thomas 960 E. Green Street (626) Main Carlson Property Manager Pasadena 793.6362 Street California Polo 400 Topa Brad Geinger ISOO Ave. of the Stars (310) Building Management Vice President Los Angeles, 203 -9199 California 0 ✓ ✓ F I H I I r I I F I C e Hotel Laguna Santa Barbara Inn Hotel Santa Barbara Park Hyatt Century City Radisson Beverly Pavilion Hotel Sofitel Holiday Inn City Center Holiday Inn Santa Monica Shutters on the Beach Courtyard by Marriott Double Tree Guest Suites Hyatt Regency Long Beach Beverly Plaza Hotel Fess Parker's Double Tree Resort Radisson Beverly Pavilion Hotel Embassy Suites at Mandalay Beach The Argyle Holiday Inn Downtown Holiday Inn/Hollywood CLIENT LISTIN G HOTELS Holiday Inn Brentwood Bel -Air Peninsula Beverly Hills Holiday Inn Express W Los Angeles - Westwood Ramada Hotel Regent Beverly Wilshire Hotel Renaissance Beverly Hills Radisson Valley Center Hotel Casa Del Mar Hollywood Roosevelt Mondrian Avalon Hotel Hilton Glendale Holiday Inn Select Doubletree Hotel - Burlingame The Beach House The Grafton Crowne Plaza San Jose REGIONAL NULLS & RETAIL CENTERS Westside Pavilion Topanga Plaza Madison Marquette ABC Entertainment Center Brentwood Plaza Borders Pepi Inc. Plaza Towers Sierra Towers Doheny Plaza CONDONE iIUMS 7 Forum Shops at Caesars Palace Bamevs New York Grand Passage Brentwood Gardens Ygnacio Plaza Two Rodeo The Churchill Country Club Manor Hollywood Versailles Tower r I I RI I L E I I I I F-1 OFFICE BUILDINGS Culver Studios Polo Building Ya Ya Company 9465 Wilshire Boulevard 1300 N. Vine 265 N. Beverly Drive City National Bank Sony Pictures Plaza La Colonnade Building 9350 Wilshire Boulevard Maple Plaza Museum of Television and Radio Consolidated Film, Ind. Gateway East Beverly Mercedes Place Great Western Bank One Park Plaza Santa Monica Medical Building 6300 Wilshire Boulevard Century City Medical Plaza Miramax Miramax Building California Plaza Huntmont Medical Building 15720 Ventura Boulevard 1990 California Building Plaza Towers Piazza Del Sol Park Plaza Peri Executive Center 3110 S. Main Street Beverly Medical Center California Federal 6330 San Vicente Boulevard 144 S. Beverly Boulevard 6310 San Vicente Boulevard Fox Plaza 9300 Wilshire Boulevard 9320 Wilshire Boulevard Watergate Office Towers 10345 Olympic Boulevard 11965 Venice Boulevard 9000 Sunset Boulevard Watergate Tower IV 6344 Wilshire Boulevard 421 -429 N. Beverly Drive Woodland Park Development Burbank Airport Sea -Tac Airport PRIVATE CLUBS Wilshire Country Club Hillcrest Country Club The Sports Club/Irvine Friars Club Mid Valley Athletic Club Bel Air Bay Club Beverly Hills Country Club E I I Lawry's the Prime Rib Beckham Grill & Crown Bar _..:.:. Weyburn Lot 1500 Newell 221 N. Canon Drive 2044 Broadway I I 0 Academy Awards Golden Globes Women In Film I SURFACE LOTS RESTAURANTS SPECIAL EVENTS 0 Santee Collection Sunset Millennium Project 249 N. Canon Drive Trader Vic's Sushi Roku Tam O'Shanter Inn E1 Cholo Santa Monica Five Crowns Restaurant Granita Restaurant Junior's Restaurant 5' Jerry's Deli - West Hollywood Manx & Basix Chevy's Restaurant Spiedini Restaurant Chaya Brasserie 555 East Ocean Bandera Moonshadows Arnie Morton's of Chicago Balboa Restaurant y Katana Emmy Awards Over 1000 Private Parties Annually Playboy Mansion Lawry's the Prime Rib Beckham Grill & Crown Bar Knoll's Black Forest El Cholo Spago Palo Alto Kate Mantilini's Ivy at the Shore Izzy's Deli Jerry's Deli - Los Angeles 1 Tengu Pancho's Restaurant Sonora Cafe Sisley I. Cugini Spago Beverly Hills Maple Drive Restaurant Wolfgang Puck Cafe El Cholo Pasadena Mastro's Steak House I 0 Academy Awards Golden Globes Women In Film I SURFACE LOTS RESTAURANTS SPECIAL EVENTS 0 Santee Collection Sunset Millennium Project 249 N. Canon Drive Trader Vic's Sushi Roku Tam O'Shanter Inn E1 Cholo Santa Monica Five Crowns Restaurant Granita Restaurant Junior's Restaurant 5' Jerry's Deli - West Hollywood Manx & Basix Chevy's Restaurant Spiedini Restaurant Chaya Brasserie 555 East Ocean Bandera Moonshadows Arnie Morton's of Chicago Balboa Restaurant y Katana Emmy Awards Over 1000 Private Parties Annually Playboy Mansion C. ORGANIZATION AND SUPPORT CAPABILITIES Herb Citrin: Founder and Chairman of the Board. 1 Herb founded the company shortly after being discharged from the United States Navy submarine service. That began a fifty -six year history with one of the most famous restaurants in the country. Herb soon gained a reputation as a "class operator" and the rest as they say, is history. Herb is known and respected across the country by his colleagues in the parking industry. Under his leadership the company has expanded from one location with two employees to where we are today: over 170 locations, 1,000 + special events per year, over seventeen hundred employees and operations in Seattle, Nevada, and California. He continues to be actively involved in the daily operation of the company and still finds time to serve on a number of charitable organizations and committees, as well as being a member of the Board of Directors of the National Parking Association and the Parking Association of California. Anthonv J. Policella: President and Chief Operating Officer. The president of our company, Tony Policella, began his career in the parking industry in 1972 after graduating from college and a stint in the United States Army. He has held just about every position found in a parking company since his original days as a parking attendant in New York City. Since then, he has personally experienced every facet of parking spanning from everyday field level activities to the challenging duties of operations, administration and marketing. Tony joined Valet Parking Service on January 15, 1992 and has served as its president since that time. Victor Morad: Vice President, Operations: Victor has been in the parking industry for over thirty years with twenty five of those years here at Valet Parking Service He is knowledgeable in every aspect of the parking business and in particular with the variety of parking operations and venues found here in Southern California. Victor has spent his entire parking career in the Los Angeles area and it is a challenge to mention a location that he is not aware of - even if it is not operated by Valet Parking Service 10 Victor oversees all of the operational and consulting activities for the company to ensure that each client receives the highest level of service and revenue through the most cost effective means. His expertise in parking operations encompasses commercial office buildings, medical centers, shopping malls, hotels, casinos, restaurants, theaters and airports. He is known throughout the parking industry for his knowledge and expertise in revenue control, traffic flow and staffing requirements. Victor has provided testimony as an expert witness at zoning hearings, for municipalities and private developers. Gary Sabedra: Controller: Gary is responsible for all of the accounting and auditing activities within the company. Additionally, he oversees the MIS Division which is responsible for customizing reports for ourselves and our clients. These reports provide us with an immediate reference as to income and expenses for each facility. Prior to joining our company, Gary was the Controller and Assistant General Manager of the Loewen Group International, Palm Springs Division. Gary has a B.A. degree from University of California Los Angeles. 11 WO D. EXPERIENCE Experience is a very important factor to consider when considering a parking company to manage and operate your parking facility. Parking service is generally divided into three major specialties: self - parking, attendant - assisted parking and, of course, valet. Although we are renowned for our superior valet service, we are proud to assert that Valet Parking Service has offered, over the past fifty-six years, all three major services. A successful parking facility is reliant on a combination of extensive experience and proper employee training reinforced with adequate and coordinated supervision. In the belief that we are the first and last impression that people will have of your building, Valet Parking Service prides itself in providing the highest level of service to your visitors and tenants. Our entire staff of employees, from parking attendants to executive staff, share the same objective -- a total commitment to the success of your company's operation. During the fifty -five continuous years our company has been in business, we have encountered every type of parking situation, project and problem. Not only have we gained an enormous amount of knowledge through the years (much of it from our own mistakes and/or the mistakes of others) but we are responsible for a number of innovations utilized industry-wide today. The wide variety of accounts found in our portfolio has given us experience in every parking venue throughout our years in the business. As you review our client list you will note the many types of parking operations we manage and also the quality of our accounts. Our company could be much larger (there are a number of companies right here in Southern California that have 300, 400, 500 or more parking operations) but our goal has always been quality not quantity. We are very proud of the fact that if one went to the 1946 Los Angeles area Yellow Pages they would have found our name and when one goes to the current Yellow Pages they will still find our name. There aren't many companies, especially in the service business, that can make that claim. 12 �O I Experience with On -line Revenue Control Systems Facility Name Type Capacity Revenue Control System Hyatt Regency Long Beach selUvalet park 1100 Amano /Park "0" Mate Santa Monica Medical self- park 525 Falcoa/Amano 3250 Wilshire Blvd. self -park 850 Secom Century City Medical Plaza self /valet park 700 Secom Maple Plaza self -park 1100 Secom Hilton Glendale self /valet park 525 Secom Regent Beverly Wilshire valet park 700 Amano Beverly Mercedes Plaza self -park 400 Federal APD 9465 Wilshire Blvd. self -park 1000 Park "O" Mate 265 N. Beverly Dr. self -park 400 Park "0" Mate 6300 Wilshire Blvd. self -park 800 Amano Piazza Del Sol self -park 400 Amano 9000 Sunset Blvd. self -park 350 Secom Two Rodeo valet park 475 Park "0" Mace Park Hyatt valet park 350 Ar=o Radisson Valley Center self -park 300. Secom Doubletree Guest Suites self /valet park 300 Amano Ramada West Hollywood self /valet park 400 Secom Peninsula Beverly Hills valet park 350 Micros Crowne Plaza San lose valet park 300 Federal APD Hotel Casa Del Mar valet park 400 Micros 6330 San Vicente Blvd. self -park 250 Amano *Oakland International Airport self -park 6000 McGann Ericsson *Serviced this location for six years Consultine Capability 13 ME A F7t t, I F 14 �3 A Our corporate staff has performed consulting services for many of the forest firms and prestigious developments in the country. To name but a few: Prudential Insurance Company Metropolitan Life Insurance Company Rockefeller Center Development Cushman & Wakefield The Watergate Complex ALCOA Melvin Simon Management Company Embarcadero Center Lockheed Air Terminal Services Hyatt Hotel Corporation Four Seasons Hotel Our staff has the capability to perform: Economic feasibility studies ` Operation audits Sales and marketing programs Revenue control specifications Financial audits Layout and functional design Facility planning Signage and graphics programs A F7t t, I F 14 �3 U E. QUALITY CONTROL AND TR IINIi TG The company maintains an in- house, full time Quality Control and Training Department whose sole responsibility is to ensure that our high standards are constantly met. Every applicant must attend an orientation and every new hire must complete and pass our five hour classroom and field training program. In situations where re- education and re- training is required, it is given. We also have merit award and safety programs and an "Employee of the Month" program. Our Quality Control personnel visit each location and observe all aspects of the operation. Primary concerns are courtesy, appearance and safety. The findings and subsequent reports issued by Q.C. are reviewed by management and operations personnel and where short comings are found, they are quickly corrected. Valet Parking Service also retains System Check and Customer Service Associates whose personnel visit our locations and report back to our company the quality of service received, problem areas, etc. These reports provide us with the customers perspective on our quality and level of service. As our client you will receive these reports on a continuous basis. First Class Operation We believe there is a distinct difference in the way our company approaches parking management that goes beyond the quality of the uniforms. There is a reason that Valet Parking Service is the company that handles the Academy Awards, The Emmy Awards, the Peninsula Hotel, the Playboy Mansion, Hotel Casa Del Mar, Shutters on the Beach the list goes on and on. If we are fortunate to operate your facility, we are confident that you, your tenants and visitors will experience very quickly that it is not just another parking company and business as usual. There is a difference. Customer Service Valet Parking Service has implemented a Customer Service Program that is designed to provide "customer service opportunities" in our self -park facilities, as well as our valet facilities. For over 56 years, VPS has been the leader in customer service in our valet facilities. Typically, in valet facilities there are more "customer service opportunities' than there are in self -park facilities: e.g. opening doors, assisting with coats, saying good morning, etc.. This Customer Service Program is designed to create "customer service opportunities" in our self -park facilities. Some of the items in this program are: Window Washing: Our attendants wash as many windows as they can throughout the day and leave a pre - printed note on the windshield that says: "Dear Customer, We have taken a 15 �. ;j- i Candy at Exit Booth: IE I F1 I I I I moment to clean your windshield in the hope that you will have a safe journey. Thank You ". A bowl of candy is placed in each cashier booth so our cashiers can offer a piece of candy as a positive gesture. Location Mans: We have pads of maps of Los Angeles and the vicinity in each cashier booth and parking office to assist customers needing directions. Comment Cards: Comment Cards are given to our parkers providing us with feedback on how we are doing? Gate Arm Placards: We have installed placards that read "Welcome to ........and Thank you for visiting........, on our gate arms at the entrances and exits. Assistin¢ Customers at Entrance Lanes: Our cashiers are trained to stand on the entrance lanes during morning rush hour to greet and assist entering parkers. Our goal for the past 56 years has been providing first class service to all of our customers. We will always live up to this challenge. ' 16 I F. INSURANCE AND CLAL iS Our company has one of the most comprehensive insurance programs in the parking ■ industry with liability coverage in the amount of $10,000,000.00. Coverage includes: Worker's Compensation Insurance Fidelity Bond Public Liability and Property Damage Garagekeepers Legal Liability Insurance The company is very actively involved with its broker and carrier in administering its ■ insurance program. Our claims submission ratio is extremely low and our Workers ■ Compensation modification, we believe, is amongst the lowest for a parking company in the state of California. We credit our pro- active approach, coupled with training, safety, reward and quality control programs, for our outstanding record in this critical area of our business. Insurance is a major concern for all involved. Without adequate coverage and without knowledgeable handling of individual claims, costs can escalate and usurp a large portion of the monthly expenses. As part of our full- service program, we provide a comprehensive insurance program designed to provide all appropriate protection to the facility. Additionally, our experience and expertise enables us to handle each claim expeditiously and thoroughly, with relevant follow - through. Coverage 1) Worker's compensation insurance as required by the laws of the State of California.. 2) Comprehensive General Liability Insurance providing coverage for bodily injury or property damage as a result of negligence or legal liability of the contractor's operation providing combined single limits for bodily injury and property damage of $1,000,000.00, subject to a deductible of 51,500.00. Such insurance shall cover claims in the United States and Canada and shall include coverage but not limited to the following: a) Premises Operation b) Personal Injury Liability 17 V� I C) Broad Form Property Damage d) Owners and Contractors Protective 3) Excess Liability coverage in the amount of $9,000,000.00. 4) Fidelity Insurance covering any dishonest or fraudulent act of Valet Parking Service and /or its employees whether acting alone or in collusion with others, including robbery within the premises, with a limit of not less than $50,000.00 per employee, subject to a deductible of $2,500.00. 5) All such insurance shall be in such form with such companies as shall be reasonably satisfactory to building manager. Building management and its respective partners, parents, subsidiaries, affiliates, director, officers, agents and employees shall be named as an additional insured on the respective insurance contract(s) to defend and indemnify losses resulting in bodily injury and/or property damage as a result of the contractors negligence or legal liability. A certificate or certificates evidencing the issuance of each such policy shall be delivered to building management within five days of the inception of the Term. Claims The Company maintains an in -house Claims Department which quickly and personally responds to all Incident Reports. Anytime a customer requests to submit a claim the request is granted, and a "Claim Form" is immediately provided. All claims are thoroughly investigated by Location Managers, District Managers, and if we are found to be responsible, payment is made in an expeditious manner. The head of our Claims Department speaks with and deals directly with all claimants. A claimant never receives the "run around" because so doing is a reflection on both of our companies. Your customer is our customer and we never lose sight of how important they are to both of us. Claims for auto damage can be kept to an absolute minimum only if the valet attendants are trained properly and supervised continuously. As with any job once an employee feels comfortable, bad habits, short cuts, etc. can and will creep into his /her performance. Because preventing accidents is so vital to our business, we have developed safety programs that really work. The result has been relatively low insurance premiums considering the millions of vehicles our personnel handle every year. is 1 �� ' G. REPORTS AND AUDIT PROCEDURES Daily Lot Income Controls Location income is generated in cash by daily transient parking. However, some Iocations receive income from scrip /validation book sales and from monthly parking keycard and/or hang tag sales. Daily transient parking is controlled by the company's use of ticket batch sequence controls. Supervisors issue a sequentially - numbered batch of parking tickets to the locations. Each location manager is then responsible for collecting cash or validation for each ticket or for returning unused tickets. A "Daily Lot Income Report " is completed by each location manager for each shift reporting the number of tickets sold at such rate, with extended total cash receipts by revenue category. Total cash receipts are summed and "paid- outs" subtracted, footing to the net cash receipts for deposit. Strong location income controls are established by Accounting Department audits of the "Daily Lot Income Reports" with emphasis on accuracy of reported amounts and exact correspondence of reported cash receipts with actual bank deposits. Bank Deposits of Dailv Location Income For most locations, daily cash receipts are placed into a plastic bag and deposited by "Night Drop" into a Wells Fargo Bank tight depository by the location manager or supervisor. The numerically coded plastic tab receipt is then attached to the "Daily Lot Income Report" and sent to the Accounting Department along with all tickets, script book receipts, and other supporting documents. 14lonthly Parking _and Validation Book Sales Monthly parking and validation book sales are controlled by our in -house Auditing Department. All books and hang tags are numerically sequenced and issued by our auditing department to the District Managers who in turn, distribute them in controlled batch sequences to the Location Managers. All such sales are accounted for on a cash basis, and are reported in the "Daily Lot Income Reports," with supporting receipts attached thereto. Audit Procedures The Ticket Auditor is responsible for verifying that all "Daily Lot Income Reports" are in fact submitted daily. The Ticket Auditor maintains a calendar check list of all locations and immediately notifies the appropriate supervisor if a report or bank deposit receipt is missing. In addition, the following steps are performed to process each individual bag: Count the number of tickets enclosed. 1 19 Agree the number of tickets sold per the daily lot income report to the actual quantity of r . tickets received, after taking into consideration number of cars left as reported on the Daily Lot Report. Verify the computations by multiplying the number of tickets sold times the applicable rates. Verify other cash amounts such as scrip books, monthlies, gate and key card fees, by reference to supporting receipts, and corresponding entries on the Daily Lot Income Report. Verify the reported total cash receipts by adding all applicable items tested above and making certain that the footings are accurate. Agree total cash receipts per Daily Lot Income Report with total amount of deposit per the deposit slip. If the amount calculated by the Revenue Control Clerk does not agree with the amount per deposit slip, then the appropriate location Supervisor must be contacted. Shortages must be deposited with the nest day's Lot Income Report. If for any reason a Daily Lot Income Report is not enclosed in the bag, a duplicate can be obtained from either the Director of Parking Operations or the Location Manager. After verifying amounts listed on location income report, and agreeing amount to deposit slip, place the Daily Lot Income Report in the folder for that location in chronological order. Make a notation of any discrepancies identified while verifying daily location income directly on the deposit slip so than the bank reconciliation will tie -out. 20 Place the deposit slips in their separate folders. Agree amounts per the deposit slip to the amounts per the bank statement at the time of bank reconciliation. Follow up on any cash shortages with the appropriate location supervisor and verify the shortage is deposited with the nest day's shift report. Record the daily cash receipts on the "monthly summary sheet" in each location folder. Provide the bank deposit slips and cash receipts data to the Assistant Controller for input at the end of the month. 20 Additionally, Valet Parking Service will make available to the building management, upon (. request, any information pertinent to the overall revenue collection program, including, but not limited to, daily and monthly reports and cashier's individual shift reports as required. Independent audits by our internal auditing staff ensure adherence to all policies and programs as well as alerting off -site management to any potential problems concerning contract performance, Audits are performed on site, by field auditors (checkers) and at our corporate office by the Audit Department. Operational audits are also performed by our outside service auditors: System Check and Customer Service Associates. The following is a list of audits performed by our in -house field auditors: Standard Operating Procedure Audit Valet Parking Service publishes the Standard Operating Manual, which are implemented at and adopted by all facilities: Staff from the Auditing Department are required to visit each facility during the course of the year. The Standard Operating Procedure Audit, or portions of, is administered during the visit. In actuality, this audit represents an accumulation of numerous mini- audits combine to comprise one operational /financial audit. This audit reviews each segment of the Standard Operating Manual to ensure compliance of all company procedures. This is an extremely detailed audit. All reports created and maintained by the Facility Manager are reviewed at this time. During the visit, the audit staff will correct and instruct the location manager on any procedure deficiencies. A follow -up visit is made approximately one month later. Failures to comply with company policies will results in attendance of a second training session and /or termination. Ticket Shopping The ticket shopping is one of the most effective as well as simplistic method of auditing. An Auditor visits the facility under the guise of a regular parker. The ticket is photocopied to document the transaction, the auditor then pay's the cashier for the prevailing rate and exits the facility. The next day, the audit staff reviews the tickets, cashier /shift report, and Daily Recap Report to verify that the control ticket was processed according to procedure. This is the beginning step of the Standard Operating Procedure Audit. Cashier Spot Audit The cashier spot audit is conducted to ensure that cashiers are processing transactions in their shifts according to standard operating procedures. An auditor visits the facility. He identifies himself to the cashier on duty. The auditor requests 21 F' U • the revenue collected during the cashier shift, including the bank money. He counts this money, then has the cashier verify money counted by auditor, then returns the money to the cashier. The auditor then reconciles all paid tickets against the revenue collected. Tickets are then placed in ticket sequential order and compared against the "in time" to ensure that the "in time" is also in sequence. Ticket Compliance >' A ticket compliance audit is conducted to ensure that all vehicles parked at the location are properly processed. The auditor retrieves the starting and ending numbers of the tickets for the current shift. The auditor records all the ticket numbers from the ticket board. A physical walk through of the location is conducted to verify that all vehicles were issued a ticket. All vehicles parked at the location are to have a ticket stub displayed on the windshield indicating, the time the vehicle came in and the last three number of the vehicle's license plate. Booth/Cashier Audits A booth/cashier audit entails having a member of the audit staff work side by side with the cashier at the facility. The revenue for the shift is then compared to previous shifts, days, months, etc. to verify consistency and trends. General Audit Survevs The General Audit Survey entails a thorough review of the daily reports and the corresponding documentation attached to these reports. Specifically, the General Audit Survey evaluates the completion of the Daily Reports and corresponding documentation. The areas that are reviewed while performing the General Audit Survey are the cash flow, timeliness of deposits, presence and composition of deposit slips, validation sales, monthly sales, ticket sequences, availability of reports, and cashier /shift reports. Keycard Reconciliations 1 Keycard reconciliations are conducted to ensure that monthly packers' keycards are properly programmed and to ensure that no keycard remains active in the system when compared against our paid parker list. Ticket Audits Ticket audits are performed as part of the Standard Operating Procedure Audit. 22 I VAA Of course, all tickets are audited on a daily basis by the facility manager and randomly by the ticket auditors. The purpose of the ticket audit is to ensure tickets are processed correctly and represent the level of revenue disclosed on the Daily Reports. Payroll Pay -Off Audit Pay -Off Audits are routinely performed to ensure compliance of payroll controls and company policies, at each location. In addition, the auditor verifies that the employees on the current shift match the time cards punched in. Landowner Statements The Assistant Controller prepares special statements to bill commercial management clients. These statements are called "Landowner Statements" and are prepared before the 15th of the month for the preceding month as follows: Using the "Location Perpetual Record" reference is made to the rent or management fee schedule, hourly rate schedule, and permitted expense pass- through. Using the "Location Folders" reference is made to the daily, monthly and validation income earned during the period per the tot income summary. Using the attendants' time cards and location by location payroll allocations, reference is made to the labor charges incurred by the lot for the month. Using the "Lot Income Statement," reference is made to direct operating costs. Total revenues from the "Location Folders" are reconciled to total revenues per the "Location Income Statement. " The "Landowner Statement" consists of a computer generated operating statement itemizing sources of revenue, recoverable labor and operating expenses, and management fees earned by the company. If the location expenses exceed the location revenue, then the management client owes the Company the amount of shortfall, and the special statement is mailed with an invoice by the 15th day of the following month. Revenue Control The company maintains a comprehensive revenue control and accountability program that encompasses all of the tenets of parking management revenue control. 23 �5 b I Financial Reports Monthly Reports Valet Parking Service will provide complete Financial reports within the first fifteen days after the end of every month. These reports include: a. Monthly profit and loss statement. b. Monthly spreadsheet of daily activity. C. Semi - monthly ADP itemized payroll report. d. Photocopies of all invoices for expenses and expense related items. Annual Reports The following reports are provided on an annual basis: a. The annual budget projection. b. The annual profit and loss statement of operation. C. The variance analysis statement. d. Various charts and graphs as requested. 24 14 H. SAMPLE MANAGEMENT AGREEMENT PARKING FACILITY MANAGEMENT AGREEMENT AGREEMENT made this _ day of 2002 between (herein "Owner ") and VALET PARKING SERVICE, a California Limited Partnership (herein "Manager "). The parties agrees as follows: Section 1. Subiect This Agreement is made with respect to the parking facility located at iCalifornia (the "Facility "). Section 2. Term This Agreement will commence on and continue month to month until such time as it is cancelled as outlined in Section 15 of this Agreement. Section 3. Duties of Manager Manager's duties hereunder shall consist of the following: A. Operate the Facility in a first class manner. B. Make recommendations to the Owner as to the kinds of equipment necessary, if any, for the efficient and economical operation of the Facility. C. Employ, with Owner's approval at the Facility, well trained persons, including managers, attendants, cashiers and any other necessary personnel in sufficient numbers to ensure the efficient operation of the garage facility. Manager shall instruct attendants as to their duties, oversee their work, and ensure that they are properly uniformed and are rendering courteous service. Manager will remove any employee automatically for dishonesty, improper conduct, or at the request of the Owner, for other justified reasons. D. Periodically perform audits to ensure the proper handling of cash receipts are being observed. E. Maintain, in accordance with recognized accounting procedures, such books of account and records as will properly reflect all income and disbursements received and made in connection with the operation and maintenance of the Facility, which books and records shall be kept at the Manager's place of business. 25 I �n -: 0 I F1 L I I F. Provide, subject to the approval of the Owner, all materials, equipment, supplies, N`1 calculators, papers, forms, and other items (unless otherwise herein provided) for the operation of the Facility. Section 4. A. Coverage. insurance: Insurance Manager shall provide and maintain at all times during the "Term" the following Workers' Compensation Insurance as required by law. 2. Comprehensive General Liability Insurance and Garagekeeper's Legal Liability Insurance providing coverage for bodily injury or property damage as a result of negligence or legal liability of the contractor's operation providing combined single limits for bodily injury and property damage of 51,000,000, subject to a self insured retention as provided by the insurance contract at the time of the loss. Such insurance shall cover claims in the United States and Canada and shall include coverage for but not limited to the following: a. Premises Operations; b. Personal Injury Liability; C. Broad Form Property Damage; and d. Owners and Contractors Protective An Excess Liability Policy in the amount of $9,000,000. 4. Fidelity Insurance covering any dishonest or fraudulent act of the Manager and /or its employees whether acting alone or collusion with others, including robbery within the premises, with a limit of not less than $50,000 per employee, subject to a deductible of $2,500. 5. All such insurance shall be in such form with such companies as shall be reasonably satisfactory to Owner. Owner and its respective partners, parents, subsidiaries, affiliates, directors, officers, agents and employees shall be named as an additional insured on the respective insurance contract(s) to defend and indemnify losses resulting in bodily injury and /or property damage as a result of the contractors negligence or legal liability. A certificate or certificates evidencing the issuance of each such policy shall be delivered to Owner within five days of the inception of the Term. Manager and their respective Affiliates shall provide that no such policy of insurance may be canceled or otherwise terminated or modified, for any reason, except upon 30 days prior written notice to Owner. B. Risk of Liabilitv. W1 The parties agree that the service to be rendered by Manager for Owner are as an independent contractor and not as an employee or agency basis. Section 6. Ntanager's Staff Manager shall employ for its own staff such personnel as may be necessary to operate the Facility as aforesaid, but not limited to, management personnel, parking attendants, cashiers and valet attendants, if necessary and shall oversee the performance of their respective services. Parking 27 �I I . Manager shall protect, defend, indemnify and hold harmless Owner, it's officers, directors, employees, agents, representatives, contractors, affiliates, divisions, subsidiaries, successors and assigns from and against all claims, demands, (including, without being limited to, third party claims or damages for personal injury or real or personal property damage), losses, liabilities, causes of action, suits, actions, costs, and expenses (including but not limited to attorney's fees) from any negligence and legal liability arising out of or relating to the performance or nonperformance by Manager of this agreement, or caused by, arising from or in connection with the acts, omissions or negligence of Manager or its employees, provided that Manager shall not be responsible or liable for any injury or damage incurred by any patron, visitor or employee of Owner which is unrelated to Manager's performance or nonperformance hereunder, or which was not caused by the negligence of Manager or its employees. Owner hereby agrees to defend, indemnify, and hold harmless Manager from liability for any such injury or damage not specifically assumed herein by Manager. 2. Owner expressly acknowledges that Manager's obligations in connection with the management, operation and promotion of the Facilities and employment of persons in connection therewith, do not include the rendition of advice, supervision or furnishing of personnel in connection with the personal safety and security of tenants, customers, employees or other persons within or about the Facilities. Manager does not have knowledge or expertise as a guard of security service and does not employ personnel for that purpose. Further, Manager does not have employees undertake the obligations to guard or protect customers against the intentional acts of third parties. Owner shall determine at Owner's discretion whether, or to what extent, any cautionary warnings, security devices, or security services may be required to protect patrons or others in and about the Facilities. Owner further agrees to defend and indemnify and hold harmless Manager from and against any claims, demands, suits, liabilities, or judgments arising from Manager's alleged failure to warn, guard, or to protect persons in or about the Facilities from and against any intentional wrongful acts resulting in any harm or injury therefrom. 3. All claims for property loss or damage shall be adjusted and paid by Manager's Claim Supervisor subject to the requirements of any applicable insurance policy and the provisions of this Agreement, subject to a deductible of One Thousand Five Hundred Dollars ($1,500.00) per incident, which will be paid by Owner. Section 5. Status of Manager The parties agree that the service to be rendered by Manager for Owner are as an independent contractor and not as an employee or agency basis. Section 6. Ntanager's Staff Manager shall employ for its own staff such personnel as may be necessary to operate the Facility as aforesaid, but not limited to, management personnel, parking attendants, cashiers and valet attendants, if necessary and shall oversee the performance of their respective services. Parking 27 �I r personnel shall at all times conduct themselves in a courteous manner, and be neat, clean and properly uniformed. Section 7. Licenses and Permits All licenses and permits necessary for the operation of the Facility shall be obtained by Manager i and shall be held in Manager's name, at Owners expense. ■ Section 8. Operating Hours The Facility shall be open and staffed by Manager according to the schedule required to provide efficient and first class service during the times and hours stipulated by OWNER. Section 9. Rates Owner shall establish parking rates, validation policies, and prices to be charged, after consultation with Manager. Owner's decision shall be final. Section 10. EE uinment The Manager will maintain, repair, and purchase supplies on a routine basis for the Facility and the Manager shall not expend without Owner's prior written consent, for any one item in connection with maintenance, repair of supplies, more than FIVE HUNDRED DOLLARS ($500.00). Section 11. Manager's Report and Compensation (A) On the Fifteenth (15th) day of each month, Manager shall submit to Owner in writing, a report showing for the preceding calendar month, all parking receipts consisting of daily transient parking, validation sales, monthly parking, and any other parking revenue. (B) On or prior to the Fifteenth (15th) day of each month, Manager shall submit to Owner in writing, a report showing for the preceding calendar month, an itemized statement of all revenues and expenses supported by bills, statements, invoices, and receipts. All revenues generated will be deposited to the account of Manager. In any given month when revenues exceed expenses, a check will be enclosed with the statement payable to the Owner. However, if there is a shortfall of revenues to meet the expenses, an invoice will be enclosed with the statement which is payable within fifteen (15) days of receipt. (C) The expenses to be incurred by Manager, for which he will deduct from gross receipts, include, but are not limited to, attendants' wages (including fringe and payroll expenses), payroll taxes, workers' compensation insurance, management fee, operational supplies (such as tickets, monthly stickers, uniforms, maintenance supplies, maintenance of automated gates if any, 28 1, a I a I I I I and ticket dispenser, validation stamps, bottled water, light bulbs, and the like), floor cleaning service, all insurance premiums related to the operation of the Facility, auto damage expenses (including amounts to be paid within the deductible provision of Manager's auto damage or liability policies, which is presently $1,500.00), miscellaneous matters such as repairs to time clock, key cabinets, and the like. (D) Owner shall have the right at all reasonable business hours and upon reasonable notice, to inspect, copy, and audit the books and accounts of Manager pertaining to the operation of the Facility. (E) As compensation for Manager's performance of its duties and obligations hereunder, in addition to reimbursement of all direct expenses, Manager will receive a Management Fee of per month. Section 12. Duties of Owner Owner shall have sole responsibility for the supervision, upkeep, maintenance, and repair of the physical premises. In addition, Owner shall pay or provide for all other expenses, including utilities, repairs to the structure, and all supplies and equipment necessary for the parking operation, provided that these items first be approved, in advance, by Owner. Section 13. Securitv Owner expressly acknowledges that Manager's obligations in connection with the management operation and promotion of the station and employment of persons in connection therewith, do not include the rendition of advice, supervision or furnishing of personnel in connection with the personal safety and security of tenants, customers, employees or other persons within or about the facility. Manager does not have knowledge or expertise as a guard or security service and does not employ personnel for that purpose. Further, Manager does not have employees undertake the obligations to guard or protect customers against the intentional acts of third parties. Owner shall determine at Owner's discretion whether, or to what extent, any cautionary warnings, security devices, or security services may be required to protect patrons or others in and about the facility. Owner further agrees to defend and indemnify and hold harmless Manager from and against any claims, demands, suits, liabilities, or judgments arising from Manager's alleged failure to warn, guard, or to protect persons in or about the Facility from and against any intentional wrongful acts resulting in any harm or injury therefrom. Section 14. Owner's Control (A) Owner reserves to itself all uses of any portion of the Facility for purposes other than parking, including, without limitation, vending machine operation storage. (B) Manager shall not have the right to affix or display any sign, placard or similar 29 A device on the exterior of any building in which any parking facility is located or, on any entrance way leading into any parking facility, without the prior written consent of the Owner. Section 15. Termination This Agreement may be terminated, without cause, by either party providing thirty (30) day written notice to the other parry. Section 16. Notices All notices required or permitted under this Agreement shall be in writing, those being given to Owner to be addressed to: IThose to be given to Manager shall be served upon: VALET PARKING SERVICE 10555 JEFFERSON BOULEVARD CULVER CITY, CALIFORNIA 90232 Notices may be delivered in person, by facsimile, or by deposit in the United States mail properly addressed, postage prepaid, registered or certified with request for return receipt. Delivery by United States mail shall be deemed to have been effected upon the expiration of the United States Post Office. The addresses above set forth may be changed from time to time by any of the parties upon notice in writing to the others. Section 17. Severability If to any extent or for any period of time any provision of this Agreement is determined to be invalid, such invalidity shall not effect the enforceability of such provision for any other period of time, nor the validity or enforceability of any other provision of this Agreement. Section 13. Contract Amendments This Agreement may not be altered, amended, or modified other than by an agreement in writing signed by the parties hereto. Section 19. Arbitration of Disputes In the event of any dispute between the parties or their assigns or subcontractors relating to the terms of this Agreement or an alleged breach of any provisions hereof, it is agreed that same shall be submitted for arbitration to the American Arbitration Association at Los Angeles, California. Any judgment upon an award rendered by the arbitration may be entered in any court having jurisdiction thereof. The prevailing party in such arbitration shall be entitled to reasonable W •e attorney's fees. Section 20. Contract Interpretation This Agreement shall not be construed in favor of or against any party hereto, but shall be construed as if any parties prepared this Agreement. This Agreement shall inure to the benefit of, and be binding upon, each and every one of the parties hereto, and their heirs, personal representatives, assigns, and other successors in interest of each parry hereto. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of the Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. Section 21. Miscellaneous (A) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors or assigns. (B) This Agreement incorporates the complete agreement of the parties and supersedes any previous Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above set forth by their duly authorized representative. Dated: By: Dated: By: VALET PARKING SERVICE A California Limited Partnership By: VPS MANAGEMENT, INC. A California Corporation General Partner Anthony Policella, President By: OWNER 31 �5 A I 4 .�A Ll 4 -11 I. STAFFING PLAN A staffing schedule will be provided and agreed upon between owner and manager before the valet operation commences. Valet Parking Service will also forward a copy to the City of Newport Beach for their review. 32 I Is 0 J. PLAN OF OPERATION All tenants and monthly parkers will be assigned a space. A gate arm and card reader will be installed to allow access to those parkers only. * VPS will install call boxes on each level for tenant parkers that become blocked in by valet vehicles. * VPS will number each stall for easy identification. * VPS will allocate certain spaces for our valet operation. Only when we are at full capacity will we block other vehicles. All valet customers will drop off and pickup their vehicles in the porte cochere only, There will be no exceptions. 33 K. MANAGEMENT PROPOSAL Valet Parking Service offers to provide all of the services mentioned herein, on a month to month management agreement, cancelable by either party providing thirty (30) days notice, for a management fee of $1500.00 per month. 34 �v EXHIBIT 7 USE PERMIT NO. 3086 (AMENDED) SITE PLAN �l F a a_aI :e ..--a S2j�a� �• iF;;jppE� p� R YI a 9 gge$ae- Mill OVX .� 8. e FilI �e pA $ $d& •$ F a a_aI :e ..--a S2j�a� �• iF;;jppE� p� F a a_aI :e ..--a S2j�a� �• iF;;jppE� EXHIBIT 8 USE PERMIT NO. 3086 (AMENDED) PARKING PLANS iZ eS � I jj n a }yI1 .,. - k s / a c 9-- II. 1 G)----- aNa W. D - --L7 - {l - -G _,: , :ING'ALLOCATIONS 'PWFG INZ .I�{'i�. Gy—: I� I%'�'�-sH+vrvrsnprs +mss r, s. 4)AY -7111 r--- 9 + ?ApyINfa �TA1 -tH ': vF?"* i� +� Pa7ATYPF-O .VALET ft V--Py -b. k?F"TwNa) AVFlthnt .bl°1•F�c'v. <°3F:ea'v.) —121 !; fr1�NT 141 l a 6 e+ �r 48 _ Iii °I — l! /L5q I o 0. 1';;� 177o v 4 , ,1 fJl�?H7TIF1�? `:�PiAk�N� :..- . rorf"— FiTf� Pava,>+Jry I.�r�+� b%WTYAFD VALET wEIP- ►1�•� .A;J,pas.'fVN4). fSVAII�W �!o'1°.i7 Ca$'h� K ?{�iPK 258 2o) p Q5 j lYM' F7 40 - =i u'V }T5'Le s Q5 EXHIBIT 9 APPLICANT'S LETTERS OF SUPPORT FROM OTHER TENETS ai WATERFRONT NEWPORT BEACH, LLC 2895 Royston Place Beverly Hills, California 90210 Tel(310)275-2574 Fax(310)275-1939 February 10, 2003 City of Newport Beach 3300 Newport Boulevard Newport Beach, California Fax: (949) -644 -3250 Re: 2901 West Coast Highway Newport Beach, CA 92663 Dear Sir or Madam, I am the owner of the above - referenced building. I have reviewed the parking plans submitted to me by the restaurant and building architects. The proposed plans appear to be feasible (number of stalls and accessibility), reasonable (costs and implementation) and fair to all the tenants (minimal inconvenience, if any). We have informed the tenants and have their support even with the possible inconvenience of having to inform the valet to remove cars that may be blocking some cars about once a day. We will mitigate this effect by asking the tenants to give the valets a schedule of when they are leaving, so that the valets can plan not block them when they need to leave. All stalls, including valet stalls will be identified on the floor and tenants can also call minutes in advance to have their access cleared before they come down to their stalls. For the tenants who missed the above procedures, there will be call boxes so that tenants can call the valet down to clear their access way. Separately, I have informed the restaurants that the building should be cognizant of the present character and future aspirations of the city of Newport Beach, particularly in the Mariner's Mile area and surroundings. The designs therefore should be mindful of the neighbors (including those across the water and up the hill), and pedestrian and vehicular traffic (especially the speed, volume and building access at West Coast Hwy). I am in support of the restaurant and parking plans. Sincerely, Q G, Ferdinand Fam, Owner Waterfront Newport Beach, LLC 0 February 10, 2003 City of Newport Beach 3300 Newport Boulevard Newport Beach, California Re: Newport Office Center 2901 West Coast Highway, Ste. 200 Newport Beach, CA,92663 Dear Sir or Madam, I am a tenant at the above building (approx 11,270 usf). Mr. Robert Lounsbury showed me the proposed parking plan incorporating valet services at certain times. I think it is great that a plan is being put in place for the building. I have been shown the parking stalls allocated to my suite. I realize that the plan involves the possible inconvenience of having valet cars blocking our access. I have been informed of the mitigating measures that will be implemented (identifying stalls, early notification of exit schedule, call boxes, etc.) and I think the plan is feasible. I am in support of this parking plan. Sincerel D C.O.O. Newport Office Center 468 North Camden Drive, Beverly Hills, California 90210 I p� 888.528.8882 (tel) 310.271.4264 (fax) globaloffices@aol.com (e.mail) www.GlobalBusmessCenters.com C�Sooleby Tag, you're it! February 10, 2003 City of Newport Beach 3300 Newport Boulevard Newport Beach, California Re: eSociety 2901 West Coast Highway, Ste. 350 Newport Beach, CA 92663 Dear Sir or Madam, W WW. es0Ciety. Com I am a tenant at the above building (approx 3,800 usf). Mr. Robert Lounsbury showed me the proposed parking plan incorporating valet services at certain times. I think it is great that a plan is being put in place for the building. I have been shown the parking stalls allocated to my suite. I realize that the plan involves the possible inconvenience of having valet cars blocking our access. I have been informed of the mitigating measures that will be implemented (identifying stalls, early notification of exit schedule, call boxes, etc.) and I think the plan is feasible. I am in support of this parking plan. Sincerely, Steve'Shearer President eSociety S 61 2901 W. Pacific Coast Highway, Suite 350, Newport Beach, CA 92663 • Ph. 949.515.9100 • Fx. 949.515.9101 GIL YURLY Independent Distributor 714- 997 -9473 Fax 714- 289 -9473 e -mail www.bodywise.com/gilyLirly INTERNATIONAL, INC. February 10, 2003 City of Newport Beach 3300 Newport Boulevard Newport Beach, California Re: BodyWise Fitness 2901 West Coast Highway, Ste. 110 Newport Beach, CA 92663 Dear Sir or Madam, I am a tenant at the above building (approx 2,755 usf). Mr. Robert Lounsbury showed me the proposed parking plan incorporating valet services at certain times. I think it is great that a plan is being put in place for the building. I have been shown the parking stalls allocated to my suite. I realize that the plan involves the possible inconvenience of having valet cars blocking our access. I have been informed of the mitigating measures that will be implemented (identifying stalls,. early notification of exit schedule, call boxes, etc.) and I think the plan is feasible. I am in support of this parking plan. Sincerely, CTil Yurly Owner Body Wise Fitness 9 Sage Contracting Company Inc February 10, 2003 City of Newport Beach 3300 Newport Boulevard Newport Beach, California Re: Sage Contracting 2901 West Coast Highway, Ste. 160 Newport Beach, CA 92663 Dear Sir or Madam, I am a tenant at the above building (approx 1,400 usf). Mr. Robert Lounsbury showed me the .proposed parking plan incorporating valet services at certain times. I think it is great that a plan is being put in place for the building. I have been shown the parking stalls allocated to my suite. I realize that the plan involves the possible inconvenience of having valet cars blocking our access. I have been informed of the mitigating measures that will be implemented. (identifying stalls, early notification of exit schedule, call boxes, etc.) and I think the plan is feasible. I am in support of this parking plan. Sincerely, Jr. Sage Contracting �63 2901 W. Coast Highway, Suite 160 Newport Beach, Ca 92663 949 - 574 -4710 ext. 225 Fax 949 - 574 -4792 JOHN S. ROTH ATTORNEY AT LAW 2901 WEST PACIFIC COAST HIGHWAY SUITE 300 NEWPORT BEACH, CALIFORNIA 92663 TELEPHONE (949) 646 -1818 FAX (949) 646 -2323 February 10, 2003 City of Newport Beach 3300 Newport Boulevard Newport Beach, California Re: John S. Roth 2901 West Coast Highway, Ste. 300 Newport Beach, CA 92663 Dear Sir or Madam, I am a tenant at the above building (approx 800 usf). Mr. Robert Lounsbury showed me the proposed parking plan incorporating valet services at certain times. I think it is great that a plan is being put in place for the building. I have been shown the parking stalls allocated to my suite. I realize that the plan involves the possible inconvenience of having valet cars blocking our access. I have been informed of the mitigating measures that will be implemented (identifying stalls, early notification of exit schedule, call boxes, etc.) and I think the plan is feasible. I am in support of this parking plan. Sincerely, 0 ,64