REPORT TO THE CITY COUNCIL October 11, 2018 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Approve Amendment No. 2 to the Parking Lot Management Agreement with SP Plus Corporation at Fresno Yosemite International Airport to extend the term of the agreement, update management fees for the extended term and expense provisions. (Council District 4) ..Body RECOMMENDATIONS Staff recommends that the City Council authorize the Director of Aviation to execute Amendment No. 2 to the Parking Lot Management Agreement with SP Plus Corporation (SP+) related to the extension of agreement term and updated management fees for extended term and expense provisions at Fresno Yosemite International Airport (FAT). EXECUTIVE SUMMARY The current agreement, executed in 2014, is scheduled to expire on March 31, 2019. SP+ has managed the Airport parking facilities in an exemplary manner during the term of their current agreement. Amendment No. 2 will extend the term for five years and include two five-year options, for up to 15 years should both options be exercised. The updated management fees and expense provisions will provide for the additional services associated with FATs new surface parking lots, scheduled for completion in May 2019. BACKGROUND SP+ specializes in the management of airport parking facilities throughout the nation. Revenue from parking facilities is typically the largest revenue stream for an airport, which is the case for FAT. Effective airport parking facility management is critical to optimizing revenue and SP+ has been proactive and responsive to the dynamic nature of airport parking operations. Amendment No. 1 directed SP+ to purchase and installed a new Parking and Revenue Control System (PARCS). SP+ also coordinated the installation of new PARCS equipment in the relocated employee parking lot. Both of these efforts were executed successfully, which contribute to improved management of the parking facilities and enhanced customer service. The City Attorney has reviewed and approved Amendment No. 2 as to form. ENVIRONMENTAL FINDINGS This is not a project pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE Local preference is not applicable because this is an amendment to an existing agreement. FISCAL IMPACT The estimated annual management fee is $82,198. Funding for Amendment No. 2 is included in the Airports Adopted FY19 Budget and will be included in future budgets. There is no impact to the General Fund from this action. Attachment: - Second Amendment to Parking Lot Management Agreement