OFFICE OF THE CITY ATTORNEY CITY OF SOUTH LAKE TAHOE CITY ATTORNEY STAFF REPORT CITY COUNCIL AND STJPPA MEETING OF JUNE 6, 2017

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1 STJPPFA 1 OFFICE OF THE CITY ATTORNEY CITY OF SOUTH LAKE TAHOE CITY ATTORNEY STAFF REPORT CITY COUNCIL AND STJPPA MEETING OF JUNE 6, 2017 TO: FROM: RE: Honorable Mayor and Council Members Thomas Watson, City Attorney Amendment to Agreement with Tahoe Crescent Partnership regarding Parking Enforcement. RECOMMENDATION: Approve and Authorize Mayor to Execute the Amendment to the Parking Management Agreement between the City, South Tahoe Joint Powers Parking Authority and The Tahoe Crescent Partnership, Ltd. ("TCP"). DISCUSSION: The City and TCP entered into the Park Avenue Development Project Parking Management Agreement dated August 15, 2000, which was amended in an agreement, dated August 6, 2002 (hereafter "Parking Agreements"). The Parking Agreements provided that the City would be responsible to enforce parking on the 474-space surface lot in front of the Village Center, (the "Surface Lot"}, as part of parking control arising out of the Heavenly Village redevelopment. South Tahoe Joint Powers Parking Authority ("ST JPPA") has responsibility for the parking in the garage and, by extension, other parking responsibilities of the City in the Heavenly Village area. The Surface Lot has been impacted by the increase in restaurant, entertainment, shopping and sports activities in the Heavenly Village and nearby development. As a result, additional enforcement of two hour parking is required. TCP has agreed to provide enforcement, with the ST JPPA providing financial assistance to that effort.

2 CITY COUNCIL WORKPLAN RELEVANCE: The positive economic impact of commercial activity in the Heavenly Village and surrounding areas reflects the National Treasure in which we live and is a high priority to the City Council. FINANCIAL IMPLICATIONS: The annual cost of the assistance for parking enforcement by the ST JPPA is $50, The City will retain all revenue generated by enforcement activities. Exhibit A - Agreement. Amended and Restated Side Letter to Parking Management

3 AMENDED AND RESTATED SIDE LETTER TO PARKING MANAGEMENT AGREEMENT THIS AMENDED AND RESTATED SIDE LETTER ("Agreement") amends that certain Park Avenue Development Project Parking Management Agreement dated August 15, 2000, the Amended and Restated Park Avenue Development Project Parking Management Agreement dated August 6, 2002, and the Side Letter to Parking Management Agreement dated August 11, 2011 ("Side Letter"), by and between the CITY OF SOUTH LAKE TAHOE, a municipal corporation ("City"), the SOUTH TAHOE JOINT POWERS PARKING AUTHORITY ("STJPPA"), and TAHOE CRESCENT LLC, a California limited liability company, successorin-interest to The Tahoe Crescent Partnership, Ltd., a California limited partnership ("TC"). The parties desire to further amend the Restated Park Avenue Development Project Parking Management Agreement as follows: RECITALS A. The CitylSTJPP A is obligated to manage the parking supply within the Redevelopment Area No. 2 (Heavenly Village and the Village Center, collectively, the "Village"); B. Use of the Village Center parking supply by non-village Center patrons has escalated due to increasing visitation to the Village; C. Pursuant to the Side Letter, TC has been managing the parking supply at the Village Center (the 474-space surface lot in front of the Village Center, (the "Surface Lot")), and due to insufficient staffing levels, enforcement and penalties, Village Center tenants have complained of exhaustion of the Village Center parking supply by non-village Center patrons. D. Village Center tenants maintain they have lost business due to the exhaustion of the surface lot parking supply by individuals parking at Village Center and leaving Village Center while their vehicles remain parked at Village Center. E. On February 2, 2017, TC gave notice to the City the Side Letter was terminated, effective May 1, This Agreement replaces and supersedes the Side Letter in its entirety and amends the Restated Parking Avenue Development Project Parking Management Agreement dated August 6, 2002, as follows: Ill Ill Amended and Restated Side Letter to Parking Management Agreement

4 1. Section 1. General Conditions shall be amended as follows: General Conditions. A. This Agreement specifically applies to the Surface Lot in front of the Village Center, and does not apply to management and operation of the 420-space day-use garage (the "Parking Facilities") or underground parking at the Marriott Grand Residence Club and the Marriott Timber Lodge, or parking in neighborhood streets adjacent to the Project in California. TC shall maintain control of the "Back Lot" behind Raley' s. B. Day use surface parking for the 474 surface spaces in front of the Village Center shall be restricted to two (2) hours free parking at the Village Center while drivers of vehicles parked at the Village Center are physically present at the Village Center. This restriction shall be enforced during peak summer (100 days), mid-december to mid-january (30 days), Wednesday-Sunday for the balance of the ski season (50 days), approximately 180 to 200 days per year. Vehicle tires may be marked and vehicles occupying parking spaces for longer than two (2) hours may be cited and fined and/or towed. However, in any case and without a time limitation, vehicles parked at Village Center while the occupants of the vehicle are observed to leave the Village Center premises and leave their vehicle parked at Village Center may be cited, fined, and/or towed. The amount of the fine shall be determined by the City in the exercise of its reasonable discretion. The cost of towing shall be a TC expense. C. The City/STJPP A shall retain all revenue collected from enforcement of the two (2) hour parking restriction and/or the prohibition of parking a vehicle at the Village center and leaving the Village Center while the vehicle remains at the Village Center Surface Lot. TC shall be responsible for the cost of enforcement at the surface lot, including the cost of towing. The City/STJPP A shall contribute the sum of Fifty Thousand Dollars ($50,000.00) per year to help offset TC's parking enforcement costs. The payment of this amount shall only be made by the STJPPA and shall not be the responsibility of the City. D. TC's enforcement vendor shall limit interaction with members of the public observed parking at the Village Center and walking offsite that parking is permitted only while visiting the Village Center. D. TC shall, at its expense, update parking signage of the foregoing restrictions, including notice that violators are subject to being ticketed and towed. E. The terms of this Agreement shall be the basis for evaluation of the future operation of the Surface Lot, in accordance with Section 2.03 of that certain Disposition and Development Agreement dated October 28, These provisions shall be reviewed annually. Provided neither party requests revisions to this Agreement, this Agreement shall continue for successive one-year terms. Either party may terminate this Agreement upon 180 days written notice, in which case the terms and conditions of the Amended and Restated Parking Management Agreement shall govern. Amended and Restated Side Letter to Parking Management Agreement

5 2. Income and Expense All parking violation revenue collected by the City/STJPP A shall be retained by the City/STJPP A. All costs of the operation, maintenance and enforcement for the Village Center Surface Lot shall be borne by TC. The City shall enforce, pursuant to City Code, any parking citation issued by an enforcement vendor hired by TC and approved by the City. During the term of this Agreement, the parties agree that the City/STJPP A shall have no obligation to provide enforcement of the parking regulations at the Village Center. All other provisions of the Amended and Restated Park A venue Development Project Parking Management Agreement shall remain in full force and effect. [SIGNATURE PAGE TO FOLLOW] Amended and Restated Side Letter to Parking Management Agreement

6 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF SOUTH LAKE TAHOE, a municipal corporation SOUTH TAHOE JOINT POWERS PARKING AUTHORITY TAHOE CRESCENT, LLC, a California limited liability company ATTEST: Susan Alessi, City Clerk APPROVED AS TO FORM: Date Thomas Watson, City Attorney City of South Lake Tahoe Amended and Restated Side Letter to Parking Management Agreement... 4