To: Board of Supervisors
Department or Agency Name(s): Transportation and Public Works
Staff Name and Phone Number: Johannes J. Hoevertsz 707-565-2231
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Charles M. Schulz - Sonoma County Airport Agreement for Parking Management Services
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Recommended Action:
Recommended action
A) Authorize the Chair to execute the agreement between the County and SP Plus Corporation for parking management at the Charles M. Schulz - Sonoma County Airport, for a term of five (5) years with a management fee of $249,264 for the first year of service to increase annually by 3% to be paid out of gross parking revenue.
B) Authorize the Airport Manager or Director of Transportation and Public Works to make changes associated with the management of the parking lots at the Airport during the five-year term of the agreement that will increase revenue (e.g., modifying operating hours, add valet services for passengers, etc.).
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Executive Summary:
All paid public parking lots located at the Charles M. Schulz - Sonoma County Airport (Airport) have been managed by Republic Parking for the past nineteen years. The Airport conducted a Request for Proposal in May 2019 and selected SP Plus Corporation (SP+) to manage Airport parking services. The Department of Transportation and Public Works (TPW) requests the Board of Supervisors execute the agreement with SP+ for parking management services for a term of five (5) years, and provide authorization for the Airport Manager or Director of TPW to amend and/or add services to the Agreement during the term of the Agreement. These additional services will also add supplementary revenues to the Airport. Services under consideration include valet parking, dry cleaning drop off/pick up services, grocery delivery, car cleaning services and other current or future services offered at other airports. These types of amenities will add value to our traveling public and revenue to the Airport. SP+ will be paid a flat fee in the amount of $20,772 per month for management of the Airport parking facilities upon commencement of this agreement ($249,264 for the first year), that will deducted from the revenue generated by the fees collected from the parking lots. Additional charges, such as credit card processing fees and services added during the term of the agreement will be in addition to the aforementioned flat fee. The monthly management fee will escalate at an annual rate of 3%. Per the terms of the Agreement, SP+ may not charge any rates other than those authorized and posted without written authorization of the Airport.
Parking management services include:
- Collection of public parking fees and charges
- Maintenance and operation of day-to-day actives of parking facilities in accordance with all federal, state, and local requirements
- Provision of a full-time facility manager, personnel for parking and traffic control when the Airport’s contracted security is not on duty, on-site staff during Airport Hours of Operation (7:00 a.m. to 12:00 a.m. daily), and 24-hour emergency response service
- Delivery of reports using the Airport’s Parking Access and Revenue Control System (PARCS) and provision of routine maintenance of PARCS
- Removal and return of luggage carts from parking lots
Discussion:
There are three public parking lots at the Airport containing 1,089 spaces. The first parking lot is located closest to terminal and is the Short-Term Parking Lot consisting of 126 stalls; sixty-five (65) stalls are for parking and sixty-one (61) stalls are used as a rental car pickup area. The current parking rate per ½ hour is $1.00 with a $15.00 daily maximum charge. The second parking lot (Long Term - A Lot) is located northwest the terminal building on Airport Boulevard and has 513 stalls (441 for customer parking and 72 for rental car return). The third parking lot (Long Term - B) is located southwest from the terminal building and has 450 parking stalls. The rate for Long Term - Lots A and B is currently $11.00 per 24-hour period and is generally used by passengers for extended trips.
All Airport parking lots have complimentary two hour parking to accommodate visitors. The parking rates are listed in the Airport’s Master Fee Schedule of Airport Rates and Charges that are approved annually by the Board of Supervisors. The Master Fee Schedule is posted on the Airport’s website and hard copies are available at the Airport management office at 2290 Airport Boulevard, Santa Rosa, CA 95403.
The parking lot management has been performed by Republic Parking for the last nineteen years. The contract was originally awarded by the Board of Supervisors in May, 2000. A second contract was awarded to Republic in 2005 which was amended in 2006 and 2012. The Airport maintains an open and fair competition in all of its concession opportunities and conducted a Request for Proposal in May 2019. After extensive evaluation of written proposals and panel interviews with the three finalists, SP+ was selected based on a combination of price, value added services, and experience managing parking lot concessions.
SP+ operates more than 3,400 parking facilities, encompassing over 2 million spaces. They have local parking lot locations that include 17 parking lots for the City of Oakland, 10 parking lots at the Port of San Francisco; and several California airport locations that include Oakland International, Hollywood Burbank and Fresno Yosemite International.
The requested Agreement term will be five years. In addition to onsite management of Airport parking lots, SP+ will also provide marketing through their website and develop an online reservation and payment program.
Optional services that may be incorporated into the Agreement through an amendment include valet services, dry-cleaning pickup and delivery, customer car washes and repair; luggage handling and pet services. SP+ has successfully incorporated these services into their parking management programs at other airports. In addition to the proposed Agreement, TPW is requesting authority to amend the Agreement to include the above outlined services during the term of the contract.
To safely and efficiently manage the parking lots at the Airport, a vehicle is required by SP+. The Airport has requested (in accordance with the County’s Resolution #18-0166 to Reduce Greenhouse Gas Emissions), that SP+ utilize an electric vehicle. In response to our request, SP+ will procure an electric vehicle and amortize the expense to the Airport through the parking facility monthly charges. Ownership of the electric vehicle will revert to the Airport at the end of the term of this Agreement.
A flat fee in the amount of $20,772 per month will be paid to SP+ for management of the Airport parking facilities upon commencement of this agreement. The fee will escalate at an annual rate of 3%, and will be deducted from the revenue generated by the fees collected from the parking lots. The following table outlines the net revenue (after deduction of all management fees by Republic Parking) generated by the parking lots in the last five years:
|
|
2014 |
2015 |
2016 |
2017 |
2018 |
|
January |
$55,735.56 |
$55,546.14 |
$69,150.87 |
$83,733.02 |
$104,633.58 |
|
February |
58,134.04 |
56,134.75 |
75,526.21 |
84,745.59 |
95,338.64 |
|
March |
60,263.08 |
66,101.60 |
84,140.10 |
107,658.88 |
115,315.97 |
|
April |
59,233.81 |
63,583.98 |
94,042.74 |
107,857.55 |
129,692.64 |
|
May |
71,454.63 |
72,657.96 |
112,907.30 |
111,020.18 |
137,895.61 |
|
June |
68,439.88 |
85,497.25 |
108,614.93 |
130,022.90 |
132,891.70 |
|
July |
72,119.59 |
92,526.37 |
119,406.91 |
132,209.09 |
164,595.65 |
|
August |
68,776.71 |
93,271.96 |
110,593.40 |
142,369.86 |
156,062.76 |
|
September |
77,703.12 |
86,458.47 |
105,542.50 |
125,913.45 |
161,523.65 |
|
October |
79,734.45 |
92,263.03 |
95,439.42 |
98,955.18 |
142,318.88 |
|
November |
64,307.15 |
86,026.08 |
104,737.80 |
123,388.08 |
141,565.23 |
|
December |
63,612.05 |
81,160.49 |
85,566.41 |
115,869.54 |
123,755.86 |
|
Yearly Total |
$799,514.07 |
$931,228.08 |
$1,165,668.59 |
$1,363,743.32 |
$1,605,590.17 |
Net revenue from Airport parking activities provides general operating income for the Airport Enterprise Fund (41301). The income is not tied to any specific activity or department within the Fund (such as maintenance or capital projects) but is a key profit center supporting employee salary and benefits, as well as Airport services and supplies.
Prior Board Actions:
08/07/2012 - Republic Parking System Agreement Second Amendment
04/04/2006 - Airport Parking Management Agreement (First Amendment)
09/27/2005 - Paid Parking Facility at Charles M. Schulz - Sonoma County Airport
05/02/2000 - Paid Parking Facility at Charles M. Schulz - Sonoma County Airport.
Fiscal Summary
|
Expenditures |
FY 19-20 Adopted |
FY20-21 Projected |
FY 21-22 Projected |
|
Budgeted Expenses |
$1,791,000 |
$1,880,550 |
$1,975,577 |
|
Additional Appropriation Requested |
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Total Expenditures |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
$1,791,000 |
$1,880,550 |
$1,975,577 |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
$1,791,000 |
$1,880,550 |
$1,975,577 |
Narrative Explanation of Fiscal Impacts:
Consistent with the structure of the existing Agreement with Republic Parking, management fees will be deducted from gross revenue, with the balance remitted to the Airport on a monthly basis. Because of this contract structure, the Airport budget only incorporates net revenue calculations in budget projections. While parking lot management fees are not shown as a line item expense in the budget, parking lot revenue is used at the fund level (41301) to support general Airport Operations including salary and benefits, and services and supplies.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Agreement
Related Items “On File” with the Clerk of the Board:
None