To: Board of Supervisors
From: Aviation
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Professional Services Agreement with LAZ Parking California, LLC Regarding the Provision of Airport Parking Facilities Management Services at the California Redwood Coast-Humboldt County Airport
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Receive and file the proposals submitted in response to Request for Proposals No. AV2023-001 to regarding the provision of Airport parking facilities management services at the California Redwood Coast-Humboldt County Airport; and
2. Approve the selection of the LAZ Parking California, LLC as the vendor to provide airport parking facilities management services at the California Redwood Coast-Humboldt County Airport for the period of February 1, 2025 through January 31, 2030; and
3. Authorize the Acting Director of Aviation, or a designee thereof, to execute a professional services agreement with LAZ Parking California, LLC regarding the provision of airport parking facilities management services at the California Redwood Coast-Humboldt County Airport that is substantially similar to the attached sample professional services agreement, and any subsequent amendments thereto, after review and approval by County Counsel, Risk Management and the County Administrative Office; and
4. Direct the Clerk of the Board to provide the Department of Aviation with one (1) fully executed certified copy of the Board order related to this item.
Body
STRATEGIC PLAN:
The recommended actions support the following areas of the Board of Supervisors’ Strategic Plan:
Area of Focus: A Diverse, Equitable & Robust Economy
Strategic Plan Category: 2001 - Promote strong economic resiliency and growth
DISCUSSION:
On October 18, 2024, the Department of Aviation issued Request for Proposals (“RFP”) No. AV2023-001, which solicited proposals from experienced professionals to provide certain airport parking facilities management services at the California Redwood Coast-Humboldt County Airport. RFP No. AV2023-001, included, without limitation, specifications for the provision of required equipment, software, management, customer service support and staffing to manage and operate the parking management program on a twenty-four (24) hour per day, seven (7) day per week basis. A key focus of RFP No. AV2023-001 was to evaluate alternative parking management methods that reduce reliance on traditional labor and rely on technology to provide convenient and reliable service to customers while reducing operating expenses.
The Department of Aviation received three (3) proposals in response to RFP No. AV2023-001. After reviewing and evaluating the proposals in accordance with the applicable evaluation and selection criteria, the Department of Aviation decided to select LAZ Parking California, LLC as the vendor to provide the needed airport parking facilities management services at the California Redwood Coast-Humboldt County Airport. If approved, the selection of LAZ Parking California, LLC as the vendor to provide airport parking facilities management services at the California Redwood Coast-Humboldt County Airport is anticipated to generate an estimated One Million One Hundred Thousand Dollars ($1,100,000.00) per year, which is an approximate one hundred thirty percent (130%) increase in parking revenue over what is currently being captured.
As part of the proposal, LAZ Parking California, LLC indicated that an e-commerce solution could be implemented as soon as March 1, 2025, enabling immediate revenue enhancements while installation progresses. The proposal includes an efficient eight-week implementation schedule, a ticketless, cloud-based technology system, and flexible equipment financing options, all aligned with ACV’s current and future needs.
The County of Humboldt will be responsible for the purchase of equipment for the airport parking facilities management program. Should the County of Humboldt opt for financing the purchase price and amortization schedule for the purchase will be set forth in the purchase agreement.
SOURCE OF FUNDING:
Aviation Enterprise Fund (3530)
FINANCIAL IMPACT:
Should the Board approve the selection of LAZ Parking California, LLC as the vendor to provide airport parking facilities management services at the California Redwood Coast-Humboldt County Airport, the Department of Aviation estimates revenues will increase to One Million One Hundred Thousand Dollars ($1,100,000.00) for parking and anticipates an increase in parking revenues in two ways:
1. The Department of Aviation would receive parking revenues as follows:
• 65% of annual gross revenues between $0.00 and $200,000.00
• 75% of annual gross revenues between $200,001.00 and $400,000.00
• 80% of annual gross revenues between $400,001.00 and $600,000.00
• 90% of annual gross revenues above $600,000.00
2. The new parking fee structure will eliminate the thirty (30) minute free parking and short-term/long-term designations. All parking will be priced at one level and daily rates will be front-end loaded rather than incentivized by longevity. The Department of Aviation will advertise new rates upon approval of this item.
LAZ Parking California, LLC will remit to the county the percentage revenues due, less sales tax, credit card fees and equipment amortization.
The anticipated cost of the required parking equipment is Five Hundred Thousand Dollars ($500,000.00) and may be financed through LAZ Parking California, LLC through a monthly bill back to the Department of Aviation during the term of the original agreement as a reduction in concessionary revenue. The amortization of equipment would cost the Department of Aviation an estimated Ninety-Nine Thousand One Hundred Ninety-One Dollars ($99,191.00) annually if amortized over five (5) years or Fifty-Four Thousand Four Hundred Four Dollars ($54,404.00) if amortized over ten (10) years. If amortized over ten (10) years, the Department of Aviation would be responsible to repay LAZ Parking California, LLC for any unamortized portion of the investment should the contract be terminated or not extended past the original term.
STAFFING IMPACT:
The recommended actions will not impact current staffing levels.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to select LAZ Parking California, LLC as the vendor to provide airport parking facilities management services at the California Redwood Coast-Humboldt County Airport. However, this is not recommended as it would delay the implementation of new equipment and software for the newly constructed public parking lot at the California Redwood Coast-Humboldt County Airport and prevent the collection of increased parking revenues.
ATTACHMENTS:
1. Request for Proposal No. AV2023-001
2. Proposals submitted in response to Request for Proposals No. AV2023-001
3. Sample Professional Services Agreement with LAZ Parking California, LLC
PREVIOUS ACTION/REFERRAL:
Meeting of: None
File No.: None