The San Diego City Council on Tuesday approved a sharp increase in fees for valet parking zones, in an effort to make up for lost revenue that would otherwise be collected by parking meters in the same space.
The proposal from the city's Transportation Department only applies to valet parking on streets with parking meters, most of which are downtown. Prior to the change, businesses had to pay only $600 when applying for a new valet parking permit and $317 when renewing an existing permit. City staff said those fees were so low, they amounted to a subsidy.
City staff initially proposed a $5,000 fee for 44 feet of valet parking curb space — the equivalent of two metered parking spaces — and $10,000 for each additional 22 feet. On streets near Petco Park, where meter rates surge during special events, the city proposed $5,000 for the first two spaces and $15,000 for each additional space.
But downtown hotel owners and valet parking attendants told the council the fee hikes were excessive and would result in smaller valet zones that would lead drivers to double park while they wait for the curb space to clear.
"It's a safety issue," said Jeffrey Burg, general manager of the San Diego Marriott Gaslamp Quarter. "It takes more than just a moment or two to get out of the car, to be greeted properly by the valet, unload your bags, especially if you have kids."
Ultimately Councilmember Stephen Whitburn, whose district includes downtown, proposed a scaled back fee increase — $5,000 for the first two parking spaces, $7,500 for additional parking spaces in standard meter zones and $10,000 for additional spaces near Petco Park.
"Downtown parking is the most competitive in San Diego," Whitburn said. "Every space matters to businesses, to residents and to visitors. This policy ensures that valet services remain possible while also enabling the city to recover the cost of lost parking revenue."
Whitburn's compromise proposal passed 7-1, with Councilmember Marni von Wilpert absent. Councilmember Sean Elo-Rivera voted "no," saying he preferred the higher fee increase proposed by city staff.
"At the end of the day, curbs, streets and sidewalks are public spaces," Elo-Rivera said. "Those are assets that belong to San Diegans. And when private, for-profit businesses use those spaces to generate revenue, I think it's fair that they contribute to the cost of maintaining and improving it."
