Title
Request to Issue Parking Management Services Request for Proposal and Extend Parking Management Services Contract
Description
This report requests that the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval to issue a Parking Management Services Request for Proposal (RFP), and extend the current Parking Management Services contract with ACE Parking Management Inc. on a month-to-month basis, terminating no later than December 31, 2021. The Aviation Department (AVN) further requests payment authorization for the Parking Management Services Contract extended term.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Phoenix Sky Harbor International Airport (PHX) provides parking services for the traveling public and employees of airport businesses. PHX Parking is comprised of 26,215 spaces, operates 24 hours per day, 365 days per year, and is budgeted to generate an approximate annual gross revenue of $91 million (pre-pandemic) in fiscal year ending June 2020. PHX’s official on-airport parking convenience, reliability and value make it the preferred choice when traveling from America’s Friendliest Airport.
The Parking Management Services RFP will be issued to ensure a fair and competitive process, the goal of which is to select a contractor with extensive experience operating a large airport-owned parking portfolio that will deliver innovative strategies to improve customer service, increase market penetration, and grow parking revenue. The selected contractor will manage the Public and Employee Parking Programs including the following services and programs:
- Manage revenue generating services including online pre-book parking reservations, loyalty point, premium parking, ancillary services, corporate parking, valet operation, advertising and electric vehicle charging programs
- Coordinate Marketing and Revenue (Yield) Management and Pricing Programs
- Procure, operate and maintain Parking Access Revenue Control System
- Collect, deposit and report all revenue earned from parking and related services
- Provide operations and services improving the customer experience
- Procure, operate and maintain way finding systems for select facilities/areas
- Staff and operate public and employee parking facilities efficiently
- Provide circulator vehicle services in employee and public parking lots
The successful contractor must retain the current parking management services contractor’s employees in similar job classifications for at least 120 days and prioritize hiring from that employee pool. Candidates outside the current employee pool may be interviewed when there are no longer any employees available in similar job classifications.
Parking Management Services Contract Extension:
The Parking Management Services Contract with ACE Parking will expire Dec. 31, 2020. This contract extension will allow continuous parking services to be provided to PHX customers during the Parking Management Services RFP process.
Procurement Information
Respondents must meet Minimum Qualifications including: company and general manager experience managing large airport parking facilities encompassing marketing, revenue management and pre-book parking reservation programs, and capability to procure or lease, and operate and maintain a Parking Access Revenue Control System. The respondents will also provide financial qualifications substantiating their ability to perform.
Responsive and Responsible Respondents will be evaluated on the following criteria: Qualifications and Experience, Financial Impact including Parking Revenue and Earnings, Operations, Marketing, Revenue (Yield) Management, and Customer Experience.
The Parking Management Services Contract structure will be on a reimbursable expense plus management fee and will include revenue growth incentives. Aviation intends to issue the Parking Management Services RFP in Summer 2020 with an estimated contract award in the Winter 2020 or early 2021.
Contract Term
The term for the contract awarded through the RFP process will be for a seven-year term with one, three-year renewal option to be exercised at the sole discretion of the Director of Aviation Services. The term for the current contract extension will be month-to-month, terminating no later than Dec. 31, 2021.
Financial Impact
Parking Revenue is the Aviation Department’s largest non-aeronautical source of revenue. Prior to the pandemic, the department was on track to generate $91 million in revenue for its fiscal year ending June 2020. The Parking Management Contract structure with revenue incentives will encourage revenue growth. Total aggregate payment for the twelve-month extension period from Jan. 1, 2021 to Dec. 31, 2021 will not exceed $9,284,580.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board (PAAB) on May 21,2020, by a vote of 7-0.
Public Outreach
This process will include all standard and required outreach efforts to attract interest for this contract opportunity including outreach to small businesses that desire to subcontract with potential parking management service respondents.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.