REPORT TO THE CITY COUNCIL
FROM: HENRY THOMPSON, Director of Aviation
Airports Department
THROUGH: MELISSA GARZA-PERRY, Airports Properties Manager
Airports Department
BY: MARCOS AYALA, Airports Property Specialist II
Airports Department
SUBJECT
Title
Approve the Third Amendment to the Parking Lot Management Agreement (Agreement) between the City of Fresno and SP Plus Corporation (SP Plus). The Third Amendment reimburses SP Plus $487,275.00 for the installation of a License Plate Recognition (LPR) system at Fresno Yosemite International Airport parking lots. (Council District 4)
Body
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager to execute the Third Amendment to the Agreement in the amount of $487,275.00.
EXECUTIVE SUMMARY
The Airports Department (Airports) entered into a contract to purchase and install an LPR system in December 2022. As installation of the system approached, it was determined that work to parking lot entrances and exits had to be completed prior to installation, taking the project above the approved cost. Additionally, Airports was informed that a more accurate LPR system was available than the one that was approved. Airports terminated the contract and engaged SP Plus to install a new LPR system. SP Plus will oversee all aspects of installing the system; Airports will reimburse SP Plus similar to prior parking equipment purchases and installations.
BACKGROUND
On December 15, 2022, Airports received City Council approval of a product purchase and installation contract. As the Airport and the contractor of that agreement began preparing for the installation of the LPR system, the contractor determined that work at parking lot entrances and exits that was not in the original scope had to be completed prior to installation. This work took the project above the approved cost, from $350,340 to $916,772. The original scope also included an LPR system that Airports learned was not as accurate as others on the market. Airports cancelled the contract and engaged SP Plus to install a new LPR system.
SP Plus provides management for parking, transportation, and hospitality industries, as well as technology and operations solutions. It has been managing the parking lots at Fresno Yosemite International Airport (FAT) since 2014. SP Plus has experience implementing parking technologies at airports across the country and knowledge of FAT’s parking operations. The Third Amendment to the Agreement allows SP Plus to install an LPR system that connects to the airport’s Parking Access and Revenue Control System (PARCS). Some of the benefits from having an LPR in parking lots include having access to instant occupancy information, removing the need for manual overnight inventory counts, and making it possible to launch frequent parker or reservation programs in the future. The LPR system will also reduce idling time by making exits faster as it will recognize the vehicle and parking fee due faster than exchanging a paper ticket with parking lot staff and processing the transaction. SP Plus’s staff are providing innovative solutions that will require fewer modifications to parking lot entrances and exits, producing savings that will permit the installation of a more accurate LPR system.
Funding for this project comes from the Measure C New Technology Reserve Grant awarded to Airports. This same grant allowed for the installation of the automated parking guidance system inside the parking garage. The remaining funds from the grant will be used for the LPR installation at all airport public parking lots. Airports will reimburse SP Plus in four (4) payments. A similar amendment was signed between Airports and SP Plus in 2015 when the current PARCS was brought into operation.
The City Attorney’s Office has reviewed and approved the Third Amendment to the Agreement as to form.
ENVIRONMENTAL FINDINGS
This amendment is not a “project” for the purpose CEQA pursuant to CEQA Guidelines Section 15378.
LOCAL PREFERENCE
Local preference does not apply to this item because this is an amendment to an existing agreement.
FISCAL IMPACT
There is no impact to the General of the City of Fresno from this item. The cost of the LPR system and installation will be covered by using previously obtained technology grants.
Attachments:
Agreement and Amendments 1 - 2
Third Amendment