At its June 2025 meeting, the City Council received a report from the Mayor outlining a number of strategies to address downtown parking and traffic congestion as part of an “all-in” solution. Due to the speed at which it could be implemented and ended, Council expressed particular interest in immediately exploring the valet concept as a potentially innovative step toward intercepting visitor vehicles before they enter the central commercial district. Also at its June 2025 meeting, the Mayor discussed the impacts of AB 413 (Daylighting Law) on the number of downtown parking spaces.
1. Valet Parking
The valet parking program would be designed to reduce circulation and congestion by allowing visitors to drop off their cars at a designated valet stand near the top of Ocean Avenue, close to Carmel Plaza. From there, vehicles would be parked in offsite lots outside the downtown core.
Council did raise several key questions about the feasibility of such a program, requesting staff to return with further information on liability exposure, zoning compatibility, and revenue collection procedures. This report responds to those concerns and presents a framework for a pilot program, including recommended next steps.
Additionally, the valet concept has been developed in coordination with a potential complementary employee parking and shuttle program, being spearheaded by the Carmel Chamber of Commerce. That initiative could free up even more parking downtown by incentivizing employees to park outside of the commercial core and use a shuttle or golf cart to reach their workplaces. This employee shuttle program has the potential to be operated by the same company managing the professional valet service. Both efforts are part of a broader, coordinated strategy to manage downtown parking more effectively while preserving Carmel’s character.
2. AB 413
Assembly Bill 413, which went into effect January 1, 2025, was enacted by the State with the goal of reducing pedestrian injuries at intersections by limiting parking at corners. In an effort to comply with State law, this resulted in the City converting many of the parking spaces in the downtown core to loading only zones, and a smaller number to strict no-parking zones. Below, are a few options discussed by the Mayor at the June 2025 meeting which could be explored if the Council wishes to consider a different approach to complying with AB 413. Council is being asked to provide direction on whether to process with exploring options.
DISCUSSION/ANALYSIS:
1. Valet Parking Pilot Program
Valet Parking Pilot Structure
The proposed pilot program would:
- Operate from a staging area at the top of Ocean Avenue on the east side of Carmel Plaza.
- Offer professional valet service to visitors to intercept traffic before it enters the downtown core.
- Utilize portions of offsite parking lots on City-owned properties (e.g., Vista Lobos, Sunset Center), as well as privately held lots made available through partnership agreements.
Several of the City owned properties could play a key role in this pilot program when considered somewhat “outside of the box”. For example, use of the Public Works lot after hours has promising potential. Another interesting option is the potential expansion of the Forest Theater parking lot which could not only serve to provide additional off-street parking during shows, but could add to the inventory of valet spots. Of course, each option must also be analyzed for potential impacts to surrounding uses, including residences.
In addition to City properties, the Mayor has engaged with various property owners on the periphery of the commercial district—including churches and other institutions—who have expressed interest in making portions of their lots available for valet use, particularly during off-peak hours such as weekdays when their parking demand is minimal.
Revenue Collection & Vendor Compensation
Based on research conducted by the City’s Finance Manager, the most secure and transparent approach is for the City to collect all parking revenue directly and pay the selected vendor an agreed upon fee. This avoids issues with third-party collections and ensures compliance with municipal financial standards. The City currently has the technology in place to collect parking fees electronically.
Insurance & Risk
Per the City's broker (Alliant), and supported by legal review from the City Attorney:
- The City’s existing $50 million coverage (combined) liability policies can fully cover operations related to valet parking if the proper contracts and insurance requirements are put in place.
- The recommended vendor requirements include (would be part of an RFP):
- $2 million Commercial General Liability / $4 million aggregate
- $1 million Garagekeepers Legal Liability
- $1 million Workers’ Compensation and Employer’s Liability
- Optional Crime Insurance (if vendor collects funds)
- Conclusion: There are limited insurance or legal risk barriers to proceeding with a pilot program if the proper vendor requirements are put in place.
Zoning Considerations
Following a Zoning analysis by Planning Staff to review the Municipal Code and Circulation Element of the General Plan, it was confirmed that no zoning or land use conflicts would prevent the proposed valet staging and offsite parking operations. The Municipal Code has no specific sections on valet parking and none of the parking restrictions would disallow municipal valet parking. In fact, some sections of the General Plan Circulation Element could be interpreted to promote creative solutions to parking issues. Bike, Pedestrian, Shuttle, and Public Transportation programs are encouraged, but valet parking is not mentioned specifically. However, the Circulation Element specifically calls out the potential for employee parking shuttles and remote parking as creative ways to free up potential parking spots. Based on staff analysis, a valet parking program could be supported based on the objectives and policies of the General Plan Circulation Element.
Chamber Partnership and Employee Parking
Parallel to the valet program, the Chamber is exploring an Employee Parking and Shuttle Program, with the following goals:
- Reduce downtown congestion by relocating employee parking
- Incentivize participation through monthly raffles, recognition programs, and transportation subsidies
- Utilize shuttle loops or golf carts during peak business hours
- Collect usage data to inform long-term planning
This two-pronged strategy—intercepting visitor vehicles through valet service and relocating employee vehicles via Chamber-coordinated efforts—has the potential to significantly reduce vehicular circulation downtown. The employee parking and shuttle program may be able to be woven into an RFP for a professional valet and parking management company.
Valet Parking Next Steps:
If Council provides direction to proceed, staff will:
- Finalize and issue an RFP for valet vendors, potentially to include a downtown employee shuttle program.
- Work with legal counsel to incorporate all risk management provisions in vendor contracts.
- Collaborate with the Chamber on business outreach and communication.
- Continue discussions with private property owners to secure supplemental parking locations.
- Return to Council monthly with progress updates, performance metrics, and operational feedback.
2. AB 413 Alternate Approach
As discussed at the June 2025 Council meeting, AB 413 does allow for alternate approaches. However the first step in exploring these approaches requires engaging a professional Traffic Engineer and conducting an assessment of the downtown area. Considerations include traffic speeds, stopping distances, sight lines, and other site specific characteristics that paly a role in pedestrian safety. If an analysis from a professional traffic engineer yielded options to take an alternate approach to compliance with AB 413, there may be the potential to reclaim “regular” parking spaces downtown (not loading zone). The number of spaces that could be reclaimed is unknown without the analysis of a professional traffic engineer.
Council is being asked to provide direction to staff on whether or not to engage a professional Traffic Engineer to analyze the downtown core, and determine if there are alternate approached to comply with AB 413 that could yield additional parking spaces. Based on preliminary research conducted by the Mayor, some of the approaches that could allow for reclaimed parking spaces might include:
- Reducing the downtown core speed limit to 15 mph (justified in part by more stop signs)
- Reconfiguring loading zones to accommodate smaller vehicles
- Moving timed parking to mid-block for better business access
- Adjusting oversized spaces to increase capacity
If Council provides direction to proceed with engaging a professional Traffic Engineer, staff will:
- Proceed with securing a Traffic Engineer to work with City staff
- Begin analysis of the downtown core are
- Return to Council for monthly updates on progress