REPORT TO THE CITY COUNCIL
FROM: FRANCISCO PARTIDA, C.M., C.A.E., USAP, Interim Director of Aviation
Airports Department
BY: MARCOS AYALA, Airports Property Specialist II
Airports Department
SUBJECT
Title
Actions related to the Parking Lot Management Agreement at Fresno Yosemite International Airport:
1. Adopt a finding of Categorical Exemption pursuant to Class 1/Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines;
2. Approve the Fourth Amendment to the Parking Lot Management Agreement between the City of Fresno and SP Plus LLC, authorizing the installation of new equipment and software at the Fresno Yosemite International Airport public parking lots. The estimated annual cost is $191,850 per year, with 3% annual increases, for the duration of SP Plus’s term. The total cost for eight (8) digital exit displays to be installed at parking lot exits is $80,000, which will be broken down into 36 equal monthly installment payments. (Council District 4)
Body
RECOMMENDATION
Staff recommends that City Council approve the Fourth Amendment to the Parking Lot Management Agreement with SP Plus LLC.
EXECUTIVE SUMMARY
SP Plus LLC (SP Plus) has been managing the public parking lots at Fresno Yosemite International Airport (FAT) since 2014. During this time the Airports Department (Airports) has used the same Parking Access and Revenue Control System (PARCS) and the PARCS is approaching its end of life. In 2024, SP Plus was acquired by Metropolis Technologies, Inc. (Metropolis). Metropolis has developed and launched its own PARCS. The Fourth Amendment (Amendment) to the Parking Lot Management Agreement (Agreement) will authorize SP Plus to install the Metropolis PARCS at FAT’s public parking lots.
BACKGROUND
SP Plus manages FAT’s public parking lots operations. This includes customer service, revenue collection, and minor troubleshooting of the PARCS. In 2016, upon a full Request for Proposals, Airports installed SKIDATA’s PARCS and later added the system to FAT’s remote lots in 2019. Airports attempted twice to install SKIDATA’s License Plate Recognition (LPR) system to maintain a consistent PARCS throughout the parking lots, but due to project delays and unforeseen costs, Airports did not proceed with the LPR project. Airports currently has a preventative maintenance agreement and Software as a Service (SaaS) agreement with SKIDATA. As the current SKIDATA PARCS reaches the ten-year mark of being installed, Airports is experiencing increased costs and calls for service for the equipment and system in use. The SKIDATA equipment is now at the point that parts are no longer available causing equipment to remain non-operational and impacting the customer experience.
SP Plus was acquired in 2024 by Metropolis. Metropolis developed and has launched its own artificial intelligence powered PARCS at other airport parking facilities. The Metropolis system provides customers a frictionless parking experience. When a vehicle enters the parking lot, Metropolis cameras will recognize the vehicle and start a timer. First-time users simply sign up once by adding their phone number, license plate, and payment method using the web or iOS app; returning customers will automatically receive a text message with a link to view their visit details. Metropolis will charge drivers upon exit for the total amount due. A receipt is automatically sent via text message once payment is completed. This system is ticketless and will continue accepting cash as a payment option in the main parking lot. Metropolis’s system will make it easier for Airports to offer online parking reservations. After reserving online, customers will simply drive upon arrival, the system recognizes the reserved parking customer from their license plate and lets them into the parking lot. When a vehicle exits, the amount paid online related to the reservation is applied to the vehicle’s stay allowing seamless exit within the configured grace period. Overstays are charged automatically to members or at exit for non-members.
Airports will pay SP Plus a Platform Fee of $191,850 annually for the use of this PARCS. The Metropolis system implementation shifts the maintenance, replacement, and servicing of parking lot equipment from Airports to SP Plus. The implementation of the Metropolis PARCS will generate savings for Airports as a result from not having to pay for equipment and maintenance; the cancellation of SKIDATA’s maintenance and SaaS agreements in the amount of $101,185 and $67,965 annually, respectively, and not including calls for service and parts (approximately $30,000 in the past twelve months); and $13,000 annually in ticket printing expenses. The Platform Fee will replace the Management Fee which is mentioned in the original agreement. The Metropolis system will provide Airports tools to better manage its parking facilities including but not limited to visit counts, zip codes, revenues, inventory, and capacity, for internal Airport operational and reporting purposes. Customers staying more than one hour will pay a transaction fee ranging from $1.80 to $2.80 depending on the length of stay. Reservations will have an additional fee of $3.80. Additionally, Airports will be purchasing eight (8) digital displays that will be installed at parking lot exits to convey payment information to the public exiting those lots. The total cost for the digital displays is $80,000, which will be broken down into 36 equal monthly installment payments, with an annual financing rate of 6.75%.
This Amendment will exercise the second and final option to extend the term of SP Plus’s agreement to March 31, 2034. The Amendment will also update SP Plus’s insurance requirements.
The City Attorney’s Office has reviewed and approved the proposed Amendments.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental review of this project and has determined that this Amendment falls within the Class 1 Categorical Exemption for Existing Facilities set forth in CEQA Guidelines, Section 15301 for existing facilities, as it involves minor alteration of existing facilities to install the new Metropolis version of the PARCS system, with no expansion of use, and will not result in any significant negative effects relating to traffic, noise, air quality or water quality.
FISCAL IMPACT
The annual Platform Fee and Digital Exit Displays will be paid from the Airport’s operating budget and has no impact on the City’s General Fund.
Attachments:
Fourth Amendment to Agreement
Notice of Exemption Fourth Amendment
Agreement and Amendments 1-3