To: Board of Supervisors
Department or Agency Name(s): Transportation and Public Works - Airport Division
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2231
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Charles M. Schulz - Sonoma County Airport First Amendment to Agreement for Parking Management Services
End
Recommended Action:
Recommended action
A) Authorize the Director of Transportation and Public Works to execute the First Amendment to the Agreement between the County and SP Plus Corporation (SP+) for additional parking management services at the Charles M. Schulz - Sonoma County Airport.
B) Adopt a Resolution authorizing a budgetary adjustment to the FY 2021-22 Transportation and Public Works Final Budget in the amount of $141,777 from available Airport Enterprise Fund Balance.
(4/5th Vote Required)
end
Executive Summary:
The Department of Transportation and Public Works (TPW), Airport Division (Airport) requests that the Board authorize the Director of TPW to execute the First Amendment with SP Plus Corporation (SP+) in accordance with the original agreement (Agreement) dated December 10, 2019 for parking management services to add valet services, observation and safety monitoring services, and staffing of an Airport Operations Center. The term of this Agreement shall be five (5) years commencing January 15, 2020 and ending January 31, 2025.
TPW-Airport also requests that the Board adopt the attached budgetary adjustment for the approved Fiscal Year 2021-2021 budget in the amount of $141,776 from available Airport Enterprise Fund Balance.
Discussion:
The Airport is requesting the temporary addition of Observation and Safety Monitoring Services, Valet Services and staffing of the AOC through an amendment of the Agreement with SP+, for a term of 12 months. The existing parking management services will remain for the full term of the agreement. Temporarily adding these services will allow for coverage during a Request for Proposal process.
Background
The original Agreement with SP+ was signed on December 10, 2019 for a five year term from January 15, 2020 to January 31, 2025. Terms included management and monitoring of all ground transportation and parking related functions and maintenance of all related equipment. These services included collection of all Board Approved fees and the acceptance of credit cards for that purpose. An onsite vehicle was also provided by SP+ which assists passengers with escorts to their vehicles, provides air for tires and jumpstarts for low batteries as well as other related services. SP+ is paid a management fee which was initially $20,772 per month with a 3% annual adjustment for each subsequent year. SP+ has exceeded expectations in these responsibilities. The original Agreement provided for additional optional services that could be incorporated into the Agreement through an amendment.
The current Observation and Safety Monitoring provider has fallen short in their responsibilities creating concerns about their performance. Consequently, the Airport would like to work with SP+ for additional related services, including:
- Valet Services
- Observation and Safety Monitoring Services
- Airport Operations Center (AOC)
Under the proposed Amendment, these services will be consolidated with the management and monitoring of ground transportation. The Airport will issue a Request for Proposals (RFP) within the next year for observation and safety monitoring services and Airport Operations Center staffing however, there is a need for a solution for the near-term. SP+ has the necessary expertise to provide safety monitoring services consistent with TSA requirements. As such, the Airport would like to add observation and safety monitoring services and Airport Operations Center staffing to the existing Agreement with SP+ for a twelve (12) month period.
The proposed Amendment outlines additional services to be offered by SP+ as part of a parking management program, including those defined below.
Valet Parking
During the construction activities related to the installation of the solar canopies, significant portions of long term parking were closed resulting in parking shortages. In an effort to resolve those, a temporary valet option was implemented. Based on that experience, the Airport desires to continue a longer pilot program regarding valet services.
Valet parking services provide a higher level of customer service and greater transportation convenience for passengers with limited time, who are travelling through the Airport. This service was contemplated as part of the original Agreement, but ultimately not included at the time. Recently, valet parking was added as a trial due to intermittent parking lot closures related to the solar installation project. Valet parking will continue with a trial period through March 31, 2022 and will be evaluated by Airport management and related staff as well as SP+ to include a cost/benefit analysis at that time for possible continuance of this service. Either party may cancel the Valet Services portion of this Agreement by giving thirty (30) days’ written notice. The rate for valet parking will be $25.00 per twenty-four (24) hours per stay. The schedule may be adjusted to meet operational demands, but initially staffed sixteen (16) hours per day Monday - Friday and ten (10) hours per day on Saturday and Sunday as follows:
Monday - Friday One (1) attendant from 7:00 am - 3:30 pm
One (1) attendant from 11:00 am - 7:30 pm
Saturday - Sunday One (1) attendant from 10:00 am - 6:00 pm
Observation and Safety Monitoring Services
The Airport currently uses another contractor for observation and monitoring services that was procured through a Security Services Procurement through County Purchasing. The Airport has been experiencing various operational and TSA issues with the current contractor and needs to find a replacement. The Airport is requesting approval to add these services to the Agreement with SP+ as they have previous experience at other airports. Additionally, since the Airport already contracts with SP+ for parking management services, they are a provider that could be quickly on boarded for this function. Under the proposed Amendment, SP+ would provide these services for the next twelve (12) months starting on the first day of the following month after execution of the First Amendment, which will allow staff time to issue a Request for Proposals. The primary responsibility of SP+ will be to monitor operational facilities, passenger activities, and complete perimeter inspections of the Airport including the terminal and all other buildings and facilities. They will provide staffing for monitoring services seven (7) days per week, 365 days a year, as per the schedule listed below (this schedule will vary based on airline flight schedules as they change from time to time):
|
Type |
Hours of Operation |
Hours |
Number of Personnel |
Days of the Week |
Total Hours per Day |
Total Hours per Year |
|
Safety |
6:00 am - 6:00 pm |
12 |
1 |
7 |
12 |
4,368 |
|
Safety |
10:00 pm - 6:00 am |
8 |
1 |
7 |
8 |
2,912 |
|
|
Total |
20 |
|
|
20 |
7,280 |
SP+ contract includes a vehicle for current services. The addition of these activities will require an additional on-site vehicle. The County has requested that this vehicle be electric to comply with the Airport's environmental sustainability goals and costs will be passed along under the contract.
Airport Operations Center (AOC)
The Airport is working to establish an Airport Operations Center (AOC) to meet TSA requirements and will need staffing to operate it. The AOC, which is expected to be operational within the next four to six months, will provide real-time oversight of cameras and alarms, act as a liaison between tenants and Airport operations staff, and serve as a communication link to police, fire, and other emergency services. This service will also be the subject of the Request for Proposal. SP+ would provide these services for up to twelve (12) months starting within 30 days after notice that the Airport is ready to begin these services, which will allow staff time to issue a Request for Proposals. The AOC will be staffed by SP+ seven (7) days per week, 365 days a year, as per the schedule listed below (staffed according to airline flight schedules):
|
Type |
Hours of Operation |
Hours |
Number of Personnel |
Days of the Week |
Total Hours per Day |
Total Hours per Year |
|
Monitor |
5:00 am - 11:00 pm |
18 |
1 |
7 |
18 |
6,570 |
Fiscal impacts for FY 2021-22 under the proposed Amendment are estimated at $299,432 and includes the following: $65,347 for Valet services; $83,526 for Observation and Safety Monitoring services; $86,028 for AOC monitoring services; $20,000 for a start-up advance; and $44,531 in vehicle expenses and increases in observation and safety monitoring (should total enplanements exceed 250,000). The start-up advance will be repaid to the Airport in the four months following the execution of the agreement, at the rate of $5,000 per month. The current security services budget for Fiscal Year 2021-22 is $291,408 of which $157,655 is estimated to be remaining at the beginning of this amended agreement. A total of $141,777 from Airport Enterprise Fund Balance will be required to fund these changes, and the Airport is requesting this adjustment occur through a Budgetary Resolution.
Fiscal impacts for FY 2022-23 under the proposed Amendment are estimated at $349,280, and represents the remaining 8 months of Observation and Monitoring Services and Airport Operations Center staffing.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Resilient Infrastructure
Goal: Goal 2: Invest in capital systems to ensure continuity of operations and disaster response.
Objective: Objective 1: Strengthen critical communications infrastructure, interoperability, and information technology tools relied upon during disasters.
Prior Board Actions:
December 10, 2019 - Charles M. Schulz - Sonoma County Airport Agreement for Parking Management Services
Fiscal Summary
|
Expenditures |
FY 21-22 Adopted |
FY22-23 Projected |
FY 23-24 Projected |
|
Budgeted Expenses |
|
$349,280 |
$ |
|
Additional Appropriation Requested |
$141,777 |
|
|
|
Total Expenditures |
$141,777 |
$349,280 |
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
$141,777 |
$349,280 |
$ |
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$141,777 |
$349,280 |
$ |
Narrative Explanation of Fiscal Impacts:
The estimated Fiscal Year 2021-22 remaining budget for security services is $157,655, of the original $291,408 adopted budget. This amended agreement will require $141,777 in additional funding for Fiscal Year 2021-22 for a total of $299,431. The projected Fiscal Year 2021-22 expenses include $65,347 for valet services, $83,526 for observation and safety monitoring, $86,028 for AOC staffing, $20,000 in startup assistance provided to SP+ and a budget of $44,531 for vehicle lease costs and potential requirements for increased observation and safety monitoring services due to increased passenger counts. The $20,000 in startup assistance provided by the Airport to assist SP+ to be able to on board quickly will be paid back by SP+ paying $5,000 per month for four months following the execution of the amended agreement. It should be noted that the AOC services and Valet service are new, previously unbudgeted services and represent $151,375 of these total costs.
Fiscal Year 2022-23 expenses of $349,280 represent the remaining up to 8 months of Observation and Monitoring Services and Airport Operations Center staffing providing coverage up to the conclusion of the Request for Proposal. These costs will be included in the Fiscal Year 2022-23 recommended Airport budget. Should valet services be extended an additional $198,000 will be required.
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 fees, already part of the SP+ agreement and Valet service fees will be paid for from parking fee revenues directly. Parking revenues have already exceeded budget projections for Fiscal Year 2021-22 due to the steady return to air travel and are currently at $742,547 (net after SP+ management fees) and are on track to return to near pre-COVID-19 levels ($1,711,673). Observation and safety monitoring services and AOC services will be budgeted together under security services and paid for through normal Airport revenues. The Airport revenues are on track to exceed budgeted expectations by $2.4M in the Airport Enterprise Fund. These costs are also reimbursable through the remaining Coronavirus Aid, Relief and Economic Security Act (CARES Act) funding although a specific budget assignment to that source is not being made as these are on-going expenses.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
Amendment to Airport Parking Management Agreement
Budgetary Resolution for Fiscal Year 2021-2022
Related Items “On File” with the Clerk of the Board:
Original Agreement for Parking Management Services with SP Plus.