THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
The Office of Economic and Small Business Development ("OESBD") established a 20% Airport Concession Disadvantaged Business Enterprise ("ACDBE") participation goal and SP PLUS committed to a 20% ACDBE goal for the Agreement. To date, SP PLUS has been paid $34,626,449 and has paid its subcontractors $8,256,619, for a 23.84% participation rate.
On November 12, 2013 (Item No. 49), the Board approved the initial Agreement with SP Plus, then known as Standard Parking Corporation, to provide for management of FLL's public and employee parking facilities for the period of December 15, 2013 through December 14, 2018. SP Plus provides management services for FLL's public and employee parking including, but not limited to, valet parking services.
On December 8, 2015 (Item No. 57), the Board approved the First Amendment, which removed the Airport Economy Parking Lot from the scope of services of the Agreement pending a change to a proposed bumper-to-bumper service.
On October 26, 2017, the Director of Purchasing approved the Second Amendment to revise a purchasing pay line item to allow SP Plus to invoice and be compensated, as well as their employees, for valet tips and gratuities paid to the County by passengers using credit or debit cards.
Motion A
At the inception of the initial Agreement in 2013, the parking operation had recorded several consecutive years of decline in revenue. Staffing levels and associated expenses were established in accordance with that decline. During the early years of the Agreement, extensive market research was conducted, along with customer focus groups, to determine what could be done to reverse the slide in revenue. As a result, the Broward County Aviation Department implemented state-of-the-art programs through both technology and service level upgrades for the parking operation.
One often requested service level upgrade was the relocation of the valet parking service from a garage drop-off program to a terminal curbside program. This relocation, which occurred in 2015 and had not been contemplated in the original Agreement, was well received and resulted in a 15% increase in revenue (Fiscal Year 2017 versus Fiscal Year 2015).
This action increases the original estimated Agreement amount by $16,000,000 to a not to exceed estimated amount of $46,069,985, through the termination date of December 14, 2018. The increase will fund the additional expenses incurred by SP Plus for increased staffing levels to provide curbside valet parking service. For reference purposes, the overall parking operation now contributes, after taxes and operating expenses, approximately $35,000,000 annually in revenue. Over a five-year period, the contribution totals approximately $175,000,000.
Motion B
The proposed Third Amendment clarifies the Agreement regarding parking facility maintenance functions, such as minor repairs, painting, and striping. Article 7.9 is amended to clarify the type of maintenance work to be performed by SP Plus in the airport's parking facilities. This provision is retroactive to September 1, 2016, and will cover work that has already been performed by SP Plus for parking facility maintenance.
The proposed Third Amendment has been reviewed and approved as to form by the Office of the County Attorney and the Risk Management Division.
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