THE AVIATION DEPARTMENT AND PURCHASING DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
Motions A through C
These actions will approve CTR Parking Solutions LLC (CTR Parking) as the most reasonable source for upgrades to the PARCS System at FLL, allow staff to negotiate a Second Amendment to the existing contract and authorize the Director of Purchasing to execute the Second Amendment.
The Board approved the current Agreement on August 23, 2005 (Item No. 2) as a sole source, sole brand standardization of CTR’s system, maintenance, warranty service, repairs and future upgrades of PARCS. Subsequently, the Board approved the First Amendment on January 08, 2008 (Item No. 2) under the same standardization specifications, to increase the contract amount from $5,740,544 to $8,142,492 for system upgrades that included Integrated Dynamic Parking Display System and other system components.
Since early 2009, FLL’s Parking has been struggling to keep up with offsite competition and changes in the parking dynamics, with an increasing number of customers choosing alternatives other than parking at the Airport. Ever since the parking revenue peaked in Fiscal Year 2008 at $48 million, the Broward County Aviation Department (BCAD) has experienced despairing trends of declining annual transactions (2.7 to 1.7 million) and revenue ($38 million in Fiscal Year 2010), while the offsite competitors have flourished and improved their market share from 5% to 12%. Following a modest revenue increase to $40 million in Fiscal Year 2012, the number of transactions has continued to decline every year despite a 13% increase in passenger enplanements since Fiscal Year 2009. BCAD staff has identified critical areas where technological upgrades would enhance customer experience and augment the quality of parking products, such as a camera based parking guidance system, on-line reservations software and a curbside valet parking system.
In Motion A, BCAD is requesting Board approval to designate CTR Parking as the most reasonable source to provide system modules for the upgrade of hardware, software, services, and ongoing maintenance for the PARCS System at FLL. The Purchasing Division Director has reviewed the request and is in support of same from BCAD (Exhibit 2).
The proposed system upgrades will be integrated with PARCS and provide customers a seamless parking experience in reserving a parking space before they leave their house, finding open spaces in the parking facilities, or enjoying the convenience of curbside valet. Furthermore, an integrated system would provide BCAD with intelligent marketing analytics through the process of monitoring and analyzing customer behaviors such as travel frequency, parking duration and parking locations. The result of the analysis would give BCAD the insight and ability to influence customer behavior with variable pricing, parking duration incentives, customer loyalty program and direct marketing and promotion campaigns.
The estimated amount for the proposed system upgrades as part of a Second Amendment is $4,790,000 for the acquisition of hardware, software, implementation and training services to include a camera-based parking guidance model, a curbside valet parking module, an on-line parking reservation module and hardware/software upgrades.
In Motions B and C, BCAD is requesting for staff to be allowed to negotiate a Second Amendment to the existing contract and authorize the Director of Purchasing to execute the Second Amendment during the summer recess. The approval of these actions will allow for staff to negotiate these proposed upgrades and pricing with CTR Parking and will enable BCAD to start the implementation of the upgrades immediately in advance of the busy holiday and cruise seasons. BCAD estimates a six month implementation schedule once the Second Amendment is finalized, and projects an additional $3.5 million in revenue per year.
BCAD staff does not recommend the total replacement of the existing PARCS System due to the significant cost, extensive project schedule and operational challenges for its implementation at FLL. The cost estimate to replace the entire PARCS System would be between $15-16 million with an implementation schedule of 2 to 4 years. BCAD staff estimates that a conservative 2.5 year time frame for the implementation of a new system would result in approximately $8.8 million in potential lost revenue for the Airport.
Motions D and E
These actions will approve budget resolutions to transfer funds within BCAD in order to provide funding in Fiscal Year 2014 in the amount of $1,290,000 for the implementation of the upgrade to the PARCS System. |